text stringlengths 1 675k ⌀ |
|---|
OPEC, non-OPEC to meet next on July 1-2 - OPEC website
DUBAI (Reuters) - OPEC has agreed to move its next meeting to July 1, followed by a meeting with non-OPEC allies on July 2, according to new dates posted on the website of the Organization of the Petroleum Exporting Countries.
OPEC and allies were originally planning to meet on June 25-26, and have been debating for the past month on a new date for their upcoming meeting to discuss oil output policy.
(Reporting by Rania El Gamal, editing by Louise Heavens) |
Does Market Volatility Impact Diamond Power Infrastructure Limited's (NSE:DIAPOWER) Share Price?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Anyone researching Diamond Power Infrastructure Limited (NSE:DIAPOWER) might want to consider the historical volatility of the share price. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. The first type is company specific volatility. Investors use diversification across uncorrelated stocks to reduce this kind of price volatility across the portfolio. The second type is the broader market volatility, which you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks on the market.
Some stocks are more sensitive to general market forces than others. 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. Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.
View our latest analysis for Diamond Power Infrastructure
Zooming in on Diamond Power Infrastructure, we see it has a five year beta of 1.25. This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. If this beta value holds true in the future, Diamond Power Infrastructure shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. Share price volatility is well worth considering, but most long term investors consider the history of revenue and earnings growth to be more important. Take a look at how Diamond Power Infrastructure fares in that regard, below.
Diamond Power Infrastructure is a noticeably small company, with a market capitalisation of ₹256m. Most companies this size are not always actively traded. It takes less money to influence the share price of a very small company. This may explain the excess volatility implied by this beta value.
Since Diamond Power Infrastructure has a reasonably high beta, it's worth considering why it is so heavily influenced by broader market sentiment. For example, it might be a high growth stock or have a lot of operating leverage in its business model. In order to fully understand whether DIAPOWER is a good investment for you, we also need to consider important company-specific fundamentals such as Diamond Power Infrastructure’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Financial Health: Are DIAPOWER’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. 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. |
South Africa under pressure to beat NZ at Cricket World Cup
LONDON (AP) South Africa is under pressure to beat New Zealand as the teams continue their combined 88-year quest for a Cricket World Cup title when they meet at Edgbaston on Wednesday. The South Africans must win to keep alive any realistic hope of a semifinal spot, following defeats to England, Bangladesh and India. Unbeaten New Zealand will leapfrog England and Australia to go top of the 10-team standings with a win. Since the first edition of the tournament in 1975, South Africa has been a four-time semifinalist but never made the final. New Zealand lost the 2015 final to archrival Australia after beating South Africa in a classic semifinal in Auckland. South Africa quick Lungi Ngidi is set to return after recovering from a hamstring injury, while opener Hashim Amla is 24 runs away from becoming the fourth Proteas player to reach 8,000 ODI runs. Rain is possible in the morning before the weather is expected to improve in Birmingham. ___ More AP cricket: www.apnews.com/cricket and https://twitter.com/AP_Sports |
Bancor Seeks to Exclude US Users From Trading Over Regulatory Uncertainty
Decentralized exchange platform Bancor plans to restrict United States residents from trading tokens on July 8, the company confirmed in a blog post on June 18. Citing a lack of clarity from regulators, executives said they took the decision to ban all users with a U.S. IP address from exchanging cryptocurrency . “This decision has been made in light of increased regulatory uncertainty; at this time, we believe this is the most judicious decision for all the members of our ecosystem,” the blog post reads. It continues: “This will enable the Bancor community and ecosystem to innovate faster and with greater clarity.” Bancor runs as a decentralized protocol using a P2P setup. While it is unclear what specific factor motivated the move, the regulatory situation involving another decentralized exchange ( DEX ), Etherdelta, in 2018 serves to illustrate the difficulties of operating such a service in the U.S. As Cointelegraph reported in November of last year, the country’s Securities and Exchange Commission charged the creator of Etherdelta, Zachary Coburn, with operating an unregistered securities trading platform, as well as an over $300,000 fine. Bancor adds that all its users will still be able to hold and transfer tokens, while conceding that the decentralized portions of its network were beyond its control and would thus remain open to U.S. traders. “We would like to clarify that this functionality will be blocked to users accessing the website bancor.network, which offers an interface to blockchain activity,” the blog post continues. It notes: “As the Bancor Liquidity Network is a collection of smart contracts on the blockchain, and a non-custodial system, we cannot restrict users from accessing the blockchain itself. This cannot be blocked.” New international recommendations from the Financial Action Task Force, set for publication this week, will place stringent new ID requirements on any entity facilitating cryptocurrency trading, both in the U.S. and elsewhere. Related Articles: Binance to Stop Serving US Traders Following Announcement of US-Dedicated Platform Traditional Exchanges Pull Back From Reg A+ IPOs Due to Fraud Concerns Binance DEX: Navigating Country-Specific Cryptocurrency Trading Restrictions Santander Loses Appeal Against Brazilian Crypto Exchange, Fine Upheld |
A sea of Green Across Asian Markets as US-China Trade Optimism Reawakens
Open your FXTM account today
The Chinese Offshore Yuan was one of the biggest beneficiaries from this development, having gained about 0.6 percent since Trump’s tweet to return below the psychological 6.90 level against the US Dollar. The South Korean Won climbed 0.7 percent, while the Singapore Dollar and Malaysian Ringgit strengthened by 0.2 percent versus the Greenback, as the currencies of trade-dependent economies enjoy the rise in optimism.
Markets have been desperate for some glimmer of hope on the trade front, and Trump’s latest tweet once again underscores the fluidity surrounding US-China relations while proving that market sentiment can still turn on a dime. Optimism over the resumption in US-China trade talks has given risk appetite a shot in the arm and is expected to support market sentiment leading up to the eagerly-anticipated Trump-Xi meeting in Japan next week.
With investors reenergized by Trump’s comments, markets will hope that a US-China deal is still on the table. A significant resolution to the US-China standoff could potentially help global economic growth regain some momentum while boosting investor sentiment further.
Markets however must be mindful that sentiment does not overtake the reality of trade negotiations, as “extended talks” does not necessarily translate into the removal of US-China trade tariffs that have weighed on global growth. There remain fundamental differences between the world’s two largest economies. It remains to be seen whether this impasse can be resolved in a meaningful and lasting way. Should markets get ahead of themselves and overamplify the prospects of a US-China trade deal, an outcome that fails to meet elevated expectations could unravel recent gains in Asian assets.
Trade optimism threatens to undermine Dollar’s resilience and ease the Fed away from the dovish stance
The flare up in risk appetite puts the Greenback’s recent gains on shaky ground, as the Dollar index (DXY) currently steadies above the 97.6 marks at the time of writing, leading up to the Federal Reserve’s policy announcement. While the Federal Reserve is not expected to lower interest rates this week, despite the mixed US economic indicators so far in Q2 and the ongoing US-China trade conflict, Fed chair Jerome Powell’s policy statement and economic outlook could still have an outsized impact on the markets.
Dollar bears may have the wind knocked out of their sails should the Fed adopt a tone that’s less-dovish-than-expected, even as the market clamour for a US interest rate cut still rings loud and clear. A US-China trade deal that ultimately lifts tit-for-tat tariffs could also prompt the Fed to back away from its projected easing bias, which in turn may discourage Dollar bears.
Disclaimer:The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.
Thisarticlewas originally posted on FX Empire
• Oil Price Fundamental Daily Forecast – Series of Bullish Events Shifts Momentum to Upside
• Asian Currencies and Gold Pounce on Fed’s Easing Bias
• AUD/USD Forex Technical Analysis – June 20, 2019 Forecast
• Natural Gas Price Fundamental Daily Forecast – EIA Report Expected to Hit Triple-Digits for 7th Consecutive Week
• EUR/USD Daily Forecast – Euro Surges on Dovish Fed Rhetoric
• European Equities: FED Reaction and Geopolitics to Provide Direction |
Adidas loses EU bid to extend three-stripe trademark
LUXEMBOURG (Reuters) - Adidas has failed in an attempt to broaden trademark protection for its three-stripes symbol in the European Union as rivals seek to muscle into the market for striped shoes and clothing.
Adidas had tried to establish a wider trademark for "three parallel equidistant stripes of equal width applied to the product in whichever direction".
The German sporting goods company has trademark protection for its slanted three-stripe logo.
"The verdict does not affect our ability to use and protect the three stripes," a spokeswoman said.
The sporting goods industry has seen a rise in trademark and patent disputes as the biggest players try to differentiate their products and justify premium pricing.
High-profile cases have included Adidas clashing with Skechers USA and Nike taking on Puma.
Wednesday's ruling could erode the value of the Adidas brand, currently worth $14.3 billion, according to David Haigh, chief executive of consultancy Brand Finance.
"The name is more important but the recognizable three stripes are also a major contributor to recognition," he said.
Adidas shares were down 1.8% at 1210 GMT.
TRUE STRIPES
The General Court of the European Union said it had upheld a 2016 decision of the European Intellectual Property Office (EUIPO) to annul a previous acceptance of the trademark, which Adidas registered in 2014 for clothing, footwear and headgear.
That trademark was challenged by Belgium's Shoe Branding Europe after a decade-long dispute with Adidas.
The same EU court had rendered Shoe Branding's own two-stripe trademark invalid last year, saying the stripes were too similar to those of Adidas.
Shoe Branding bought Patrick, which was founded in 1892 and says it is the oldest sports brand in Europe, in 2008. Patrick features two stripes on its shoes and clothing, although they slope in the opposite direction to those on Adidas shoes.
Adidas needed to show that three parallel stripes, regardless of direction on the product, had acquired a "distinctive character" throughout the EU based on its use so that consumers inherently knew a product was from Adidas and could distinguish it from products of another company.
The court said the mark was not a pattern but an "ordinary figurative mark" and it was not relevant to take into account specific uses involving colors.
Adidas, which can still appeal to the European Court of Justice, said in a statement the ruling did not impact other protected uses of the trademark in Europe.
"Whilst we are disappointed with the decision, we are further evaluating it and are welcoming the useful guidance that the court will give us for protecting our 3-stripe mark applied to our products in whichever direction in the future," it said.
The court said Adidas had provided evidence related to the mark's use in five EU countries, but not throughout the bloc.
Geert Glas, an intellectual property lawyer at Allen & Overy in Brussels, said the decision seemed to be more based on procedure and that Adidas should be able to produce evidence showing that the three stripes had distinctiveness in Europe.
"It's a setback for Adidas, but it shouldn’t be the end of their three stripes trademark," Glas said.
In other cases involving the big sporting goods players, Nike last year filed a lawsuit accusing German rival Puma of using patented athletic shoe technology without authorization.
And a U.S. appeals court said Adidas can protect its Stan Smith tennis shoe against an alleged Skechers knockoff, but that Skechers could sell another mimicking Adidas' three-stripes.
In 2017 a U.S. judge rejected Adidas' effort to block Skechers from selling athletic sneakers that it said copied its "Springblade" concept.
(Reporting by Philip Blenkinsop; additional reporting by Alexander Huebner and Emma Thomasson; Editing by Alexander Smith and Louise Heavens) |
Air New Zealand boss Luxon resigns, could pursue politics
WELLINGTON, New Zealand (AP) — Air New Zealand Chief Executive Christopher Luxon said Wednesday he's resigning after seven years in the top job at the national carrier. Many people have speculated that Luxon has political ambitions, and that he would be a natural fit with the conservative National Party that was ousted from power in 2017 by a liberal coalition led by Prime Minister Jacinda Ardern. Luxon said he will take some time to reflect on what he will do next, and that his future work options include corporate life, nonprofits and politics. "I know I am going to get a lot of questions about where to next for me," Luxon, 48, said in a statement. He said that with both his children finishing high school, he and wife Amanda would have "a new degree of freedom, including career choices." With an election looming next year, the National Party is worried about the performance of its leader Simon Bridges, who has struggled to gain traction since taking the reins after the last election. Recent polls indicate he has only a fraction of the support that Ardern enjoys, although his party as a whole remains popular and competitive with Ardern's. Still, should Luxon decide to pursue politics, it would be unusual for any new candidate to rise immediately to a leadership role before first serving for several years in the Parliament. Before joining the airline to manage its international arm in 2011, Luxon served as president and chief executive of Unilever's Canadian business. He said he will step down as CEO in September but will keep an advisory role at the airline. Chairman Tony Carter said the airline was searching for his replacement and expected to be able to make an announcement "in the near future." Air New Zealand is 52% owned by the New Zealand government. The airline serves about 17 million passengers each year with a fleet of 115 planes. In its most recent annual results, the company reported a before-tax profit of 540 million New Zealand dollars ($353 million), it's second-highest profit ever. As a result, it awarded 8,500 staff bonuses of up to NZ$1,800 each. |
Do Insiders Own Shares In Havila Shipping ASA (OB:HAVI)?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
The big shareholder groups in Havila Shipping ASA (OB:HAVI) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.'
With a market capitalization of øre97m, Havila Shipping is a small cap stock, so it might not be well known by many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about HAVI.
Check out our latest analysis for Havila Shipping
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.
Havila Shipping already has institutions on the share registry. Indeed, they own 22% of the company. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Havila Shipping, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Havila Shipping. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
Shareholders would probably be interested to learn that insiders own shares in Havila Shipping ASA. In their own names, insiders own øre5.0m worth of stock in the øre97m company. Some would say this shows alignment of interests between shareholders and the board, though I generally prefer to see bigger insider holdings. But it might be worth checkingif those insiders have been selling.
The general public holds a 17% stake in HAVI. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
We can see that Private Companies own 56%, of the shares on issue. 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. |
Introducing Sri Havisha Hospitality and Infrastructure (NSE:HAVISHA), The Stock That Dropped 20% In The Last Year
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
The simplest way to benefit from a rising market is to buy an index fund. When you buy individual stocks, you can make higher profits, but you also face the risk of under-performance. That downside risk was realized bySri Havisha Hospitality and Infrastructure Limited(NSE:HAVISHA) shareholders over the last year, as the share price declined 20%. That contrasts poorly with the market return of 0.2%. Sri Havisha Hospitality and Infrastructure may have better days ahead, of course; we've only looked at a one year period. It's down 50% in about a quarter. 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.
See our latest analysis for Sri Havisha Hospitality and Infrastructure
With zero revenue generated over twelve months, we don't think that Sri Havisha Hospitality and Infrastructure has proved its business plan yet. You have to wonder why venture capitalists aren't funding it. 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. For example, they may be hoping that Sri Havisha Hospitality and Infrastructure finds fossil fuels with an exploration program, before it runs out of money.
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 do very well over the long term, others become hyped up by promoters before eventually falling back down to earth, and going bankrupt (or being recapitalized).
Our data indicates that Sri Havisha Hospitality and Infrastructure had ₹90,716,000 more in total liabilities than it had cash, when it last reported in March 2019. That puts it in the highest risk category, according to our analysis. But since the share price has dived -20% in the last year, it looks like some investors think it's time to abandon ship, so to speak. The image below shows how Sri Havisha Hospitality and Infrastructure's balance sheet has changed over time; if you want to see the precise values, simply click on the image.
It can be extremely risky to invest in a company that doesn't even have revenue. There's no way to know its value easily. Would it bother you if insiders were selling the stock? I would feel more nervous about the company if that were so. It only takes a moment for you tocheck whether we have identified any insider sales recently.
While Sri Havisha Hospitality and Infrastructure shareholders are down 20% for the year, the market itself is up 0.2%. 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 worth noting that the last three months did the real damage, with a 50% decline. So it seems like some holders have been dumping the stock of late - and that's not bullish. 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. |
Activists urge Google to break up before regulators force it to
By Paresh Dave
SAN FRANCISCO (Reuters) - Shareholder activists on Wednesday urged Google parent Alphabet Inc to break itself up before regulators force the world's biggest internet ad seller to split into different pieces.
SumOfUs, a U.S.-based group that aims to curb the growing power of corporations, presented the proposal at Alphabet's annual shareholder meeting at an auditorium at the company's offices in Sunnyvale, California.
Sonamtso, a campaigns director for Students for a Free Tibet who goes by one name, said at the meeting on behalf of SumOfUs that Alphabet is too big to manage.
It should sell off some assets now "rather than waiting for antitrust regulators to set a path" and potentially deriving less shareholder value, Sonamtso said.
But the proposal and 13 other shareholder measures opposed by the company were voted down on Wednesday, according to its preliminary tally. Alphabet's top two executives, Larry Page and Sergey Brin, hold 51.3 percent of shareholder votes.
Nevertheless, it shows a growing focus on the prospect of antitrust action against Alphabet and other big technology firms such as Facebook Inc and Amazon.com Inc as they face a political and public backlash over privacy issues and the power they now wield over the world's information.
U.S. President Donald Trump has been a frequent critic of Google, claiming without evidence that its search engine unfairly produces results unfavorable to him. He has suggested that U.S. regulators should follow Europe's lead and look closely at tech companies' monopolies, but has not suggested any specific remedy.
The U.S. Department of Justice and Federal Trade Commission are gearing up to investigate whether Google, Amazon, Apple and Facebook misuse their massive market power, sources told Reuters earlier this month.
The 14 proposals on Alphabet's ballot were the most on any U.S. public company's ballot in a decade, according to research firm ISS Analytics, reflecting the breadth of issues facing the tech giant.
Four Alphabet employees at the meeting separately urged company leaders to address other issues, including offering equitable pay and benefits to all employees and contractors, increasing workforce diversity and doing more to tackle climate change.
Alphabet said in shareholder materials its existing policies address the proposed measures and declined to comment further.
Activists said they were optimistic that sustained pressure could prompt change.
"We started as a voice in the wilderness on some of these issues, but conversations have come more to the fore," SumOfUs campaign manager Sondhya Gupta said.
Alphabet shares were down 0.4 percent at $1100.65.
(Reporting by Paresh Dave; Editing by Bill Rigby and Nick Zieminski) |
Interested In Hunter Douglas N.V. (AMS:HDG)? Here's What Its Recent Performance Looks Like
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Measuring Hunter Douglas N.V.'s (AMS:HDG) track record of past performance is a useful exercise for investors. It enables us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess HDG's recent performance announced on 31 March 2019 and weigh these figures against its long-term trend and industry movements.
Check out our latest analysis for Hunter Douglas
HDG's trailing twelve-month earnings (from 31 March 2019) of US$270m has jumped 24% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 19%, indicating the rate at which HDG is growing has accelerated. What's enabled this growth? Let's take a look at if it is merely attributable to an industry uplift, or if Hunter Douglas has experienced some company-specific growth.
In terms of returns from investment, Hunter Douglas has fallen short of achieving a 20% return on equity (ROE), recording 17% instead. However, its return on assets (ROA) of 8.6% exceeds the NL Consumer Durables industry of 6.0%, indicating Hunter Douglas has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Hunter Douglas’s debt level, has declined over the past 3 years from 15% to 14%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 39% to 55% over the past 5 years.
Hunter Douglas's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. While Hunter Douglas has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. You should continue to research Hunter Douglas to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for HDG’s future growth? Take a look at ourfree research report of analyst consensusfor HDG’s outlook.
2. Financial Health: Are HDG’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.
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.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. 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. |
‘Phase Zero’ of a New Ethereum Blockchain Could Go Live Next January
The next major iteration of the ethereum blockchain – dubbed ethereum 2.0 – may see a partial launch as early as January 2020.
Proposed by Ethereum Foundation researcher Justin Drake in a bi-weekly coordination call between ethereum 2.0 developers, the date suggestion was raised after affirming that a code freeze of the first iteration of ethereum 2.0, called Phase Zero, was “on track” forJune 30.
“We still have quite a bit of time before the end of 2019, so I think looking at a target genesis date towards end of 2019 could be realistic. One thing that could work well is the 3rd of January 2020,” said Drakeduring the call.
Related:Beacon Chain Contracts: A New Way to Deploy Dapps on Ethereum 2.0
But that January 3rd date isn’t a done deal, in spite of reports to the contrary.
Fellow Ethereum Foundation researcher Danny Ryan stressed in email to CoinDesk that the proposed date hasn’t been finalized and additional work on testing ethereum 2.0 will factor into such a decision.
Ryan emphasized:
“Although it is feasible, the client teams are not yet ready to commit to a date, especially considering we haven’t entered into multi-client testnets yet. With each phase of development there are plenty of unknowns so we will just keep … tackling them as they come.”
Related:Vitalik Proposes Mixer to Anonymize ‘One-Off’ Ethereum Transactions
Speaking more deeply to the requirements needed for a stable Phase Zero launch, Drake highlighted that researchers are presently targeting a minimum amount of 2 million ETH staked on the ethereum 2.0 network. By today’s estimates, this would mean the re-vamped ethereum blockchain would be launching with over $500 million in ETH locked by prospective ethereum 2.0 validators, who are envisioned to take on the same role as miners on the current ethereum blockchain.
Since the network’s inception, developers have been looking ahead to an eventual transition to a proof-of-stake consensus model, dubbedSerenity.
Both block creation and transaction validation inproof-of-stakegenerates rewards for users who attest to the validity of the blockchain by locking a portion of their tokens holdings on the network. Unlike proof-of-work, which is the model ethereum currently leverages, amount of tokens staked is primarily how users compete for network rewards as opposed to computational energy expended.
To encourage a safe on-boarding experience for current ethereum miners looking at transitioning to the ethereum 2.0 proof-of-stake blockchain as validators, Drake mentioned that opening up the deposit contract for staked ETH this October during Devcon, an annual gathering held by the Ethereum Foundation, could be wise.
“The idea here is to try and launch the deposit contract ahead of the targeted genesis [date] so that we allow time for validators to make their deposits,” explained Drake. “One idea is to do a deposit contract ceremony at Devcon. One of the reason of having this very public ceremony is so that we can all agree on the exact address of the deposit contract and avoid scam deposit contracts.”
While the timeline for Phase Zero of ethereum 2.0 has yet to be finalized, past experience suggests a mainnet launch next January is within reach for ethereum developers and researchers.
“From my experience with [ethereum 1.0], I’d definitely say [end-of-year] 2019 / Jan 2020 is a feasible target. For comparison, the pre-audit spec freeze of ethereum 1.0 was Jan 2015 and the launch was July 2015,” ethereum founder Vitalik Buterin told CoinDesk in email.
Ethereumimage via Shutterstock
• Blockchain Project Thundercore Releases Code for ‘Pala’ Consensus Protocol
• Vitalik Buterin, Joe Lubin Back $700K Donation to Ethereum Project MolochDAO |
Huawei’s Troubles Are a Big Opportunity for Ericsson and Nokia
(Bloomberg) -- Over the past two decades, China’s Huawei Technologies Co. has come to dominate the global telecom equipment market, winning contracts with a mix of sophisticated technology and attractive prices. Its rise squeezed Europe’s Nokia Oyj and Ericsson AB, which responded by cutting jobs and making acquisitions. Now, with Huawei at the center of a U.S.-China trade war, the tide is turning.
Nokia and Ericsson—fierce rivals themselves—have recently wrested notable long-term deals from Huawei to build 5G wireless networks, to enable everything from autonomous cars to robot surgery. Analysts say more could come their way as Huawei grapples with a U.S. export ban and restrictions from other governments concerned that its equipment could enable Chinese espionage.
“Huawei will, for the foreseeable future, face a broader cloud of suspicion,” said John Butler, an analyst at Bloomberg Intelligence in New York. “Nokia and Ericsson are well positioned to benefit.”
In May, the European companies both won 5G contracts from SoftBank Group Corp.’s Japanese telecom unit, replacing Huawei and Chinese peer ZTE Corp. Ericsson signed a similar pact in March with Denmark’s biggest phone company, TDC A/S, which had worked with Huawei since 2013 to modernize and manage its network.
Other carriers, expecting government curbs on Huawei, have started removing its equipment from sensitive parts of their systems. BT Group Plc is taking Huawei out of its network core, and Vodafone Group Plc has suspended core equipment purchases from Huawei for its European networks. Deutsche Telekom AG, which has Huawei throughout its 4G system, is re-evaluating its purchasing strategy.
Nokia and Ericsson are Europe’s final survivors of a merciless winnowing of more than a half-dozen telecom equipment providers
As dozens of phone companies—including those in Canada, Germany and France—plan to choose 5G suppliers in the coming months, Cisco Systems Inc. and Samsung Electronics Co. are also vying for deals. But the key beneficiaries of Huawei’s difficulties are likely to be the two Europeans, which compete directly with the Chinese company in supplying radio-access network equipment.
Since last year, the Trump administration has pushed allies to bar Huawei from 5G, citing risks about state spying—allegations the company has denied. The move in May to block Huawei’s access to U.S. suppliers escalated the campaign. The company’s founder, Ren Zhengfei, now predicts the U.S. sanctions will cut its revenue by $30 billion over the coming two years.
Outside the U.S., security concerns have led Australia, Japan and Taiwan to bar Huawei from 5G systems. The Chinese company also risks losing meaningful work in Europe and emerging markets where countries could follow with their own limits, according to Bloomberg Intelligence.
Publicly, executives from Nokia and Ericsson have been careful not to come off as critical of Huawei. Both manufacture in China and sell gear to Chinese phone carriers, and Nokia has a big research and development presence there. Nokia says it has already been forced to shift some of its supply chain away from China to reduce the impact of tariffs imposed by the Trump administration.
QuicktakeHow Huawei Became a Target for Governments
Instead of piling on Huawei, the European carriers have trumpeted their 5G successes, each using slightly different metrics. Ericsson claims it has the most publicly announced 5G contracts—21—while Nokia says it has raked in more commercial 5G deals than any other vendor (42). Huawei says it has signed 46 5G contracts. A spokesman for Huawei declined to comment further about its position relative to rivals.
Ericsson is “first with 5G,” after building high-speed networks for companies such as AT&T Inc., Swisscom AG in Switzerland and Australia’s Telstra Corp., said Chief Technology Officer Erik Ekudden. “You see that in some markets that we are attracting more customers.”
Nokia is winning 5G deals “quite handsomely,” Chief Executive Officer Rajeev Suri told Bloomberg TV on June 10.
While Suri said more carriers are likely to swap out Huawei gear in countries that have announced restrictions, the situation is less clear in Europe. “We don’t know yet the impact of specific operator plans,” he said in an interview. “We also don’t know where this geopolitical thing will end up.”
Nokia and Ericsson are Europe’s final survivors of a merciless winnowing of more than a half-dozen telecom equipment providers. Bloated costs, a cyclical marketplace, cash-strapped customers, and the relentless rise of Huawei—aided by access to generous Chinese state financing—helped push the likes of Canada’s Nortel Networks Corp. and Germany’s Siemens AG out of the industry.
Nokia paid some $2 billion in 2013 to buy Siemens out of a joint venture established to compete against Ericsson and Huawei. Then in 2015, it spent another almost $18 billion acquiring Alcatel-Lucent to broaden its product offering after pushing through more than 25,000 job cuts in the preceding three years. Still, Huawei’s share of the $33 billion of sales in the global mobile infrastructure market surged to 31% in 2018 from 13% in 2010, IHS Markit data show.
Huawei, despite its troubles, remains a potent rival. Many phone companies in Europe deem its base stations, switches and routers technologically superior. Fully excluding Huawei and ZTE from 5G would raise radio-access network costs for European phone companies by 40%, or 55 billion euros ($62 billion), the GSMA industry group predicts in an unpublished report seen by Bloomberg. Nokia and Ericsson would have to almost double production to absorb Huawei and ZTE’s business in Europe and could struggle to meet demand, the GSMA report says.
Quicktake5G and Espionage
Bengt Nordstrom, CEO of telecom consultancy Northstream AB, says the situation is perilous for everyone in the industry, as vendors’ budgets could be hit if Huawei faces greater restrictions. “Many component suppliers are already in a tough situation,” Nordstrom said. “They need to spend a lot of money on research, and that means they need access to the entire global market.”
For carriers, swapping vendors isn’t as simple as flipping a switch. It takes about two years to plan and implement such a technology shift and install the new equipment, Nordstrom said.
Both Nokia and Ericsson are working to make it easier for carriers to switch. Nokia has developed what it calls a “thin layer” of its 4G technology to connect to a new 5G system, allowing a carrier to avoid a wholesale swap of another supplier’s equipment. Ericsson also has a solution to allow a carrier to swap out only a portion of existing infrastructure, and says it can make some areas work side-by-side with Ericsson’s 5G gear.
Nokia and Ericsson can agree on one thing: Claims of Huawei’s technological superiority are overblown. They note that they’re involved in the latest networks in the U.S., where carriers are rolling out 5G faster than the Europeans.
“We compete quite favorably with Huawei,” Suri said, “with or without the current security concerns.”
(Updates to add Nokia and Ericsson production estimate in sixth-last paragraph. An earlier version of the story corrected the ninth paragraph to reflect that Telstra Corp. is an Australian company.)
--With assistance from Caroline Hyde, Kati Pohjanpalo and Angelina Rascouet.
To contact the authors of this story: Stefan Nicola in Berlin at snicola2@bloomberg.netNiclas Rolander in Stockholm at nrolander@bloomberg.net
To contact the editor responsible for this story: Rebecca Penty at rpenty@bloomberg.net, David Rocks
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
Is Public Joint Stock Company Gazprom (MCX:GAZP) A Financially Strong Company?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Public Joint Stock Company Gazprom (MCX:GAZP), a large-cap worth RUруб5.1t, comes to mind for investors seeking a strong and reliable stock investment. Most investors favour these big stocks due to their strong balance sheet and high market liquidity, meaning there are an abundance of stock in the public market available for trading. In times of low liquidity in the market, these firms won’t be left high and dry. They are also relatively unaffected by increases in interest rates. Using the most recent data for GAZP, I will determine its financial status based on its solvency and liquidity, and assess whether the stock is a safe investment.
Check out our latest analysis for Gazprom
GAZP's debt levels surged from RUруб3.4t to RUруб4.1t over the last 12 months , which accounts for long term debt. With this rise in debt, GAZP currently has RUруб1.9t remaining in cash and short-term investments , ready to be used for running the business. Additionally, GAZP has generated RUруб1.8t in operating cash flow in the last twelve months, leading to an operating cash to total debt ratio of 45%, indicating that GAZP’s current level of operating cash is high enough to cover debt.
Looking at GAZP’s RUруб2.4t in current liabilities, it seems that the business has been able to meet these obligations given the level of current assets of RUруб4.2t, with a current ratio of 1.76x. The current ratio is the number you get when you divide current assets by current liabilities. For Oil and Gas companies, this ratio is within a sensible range as there's enough of a cash buffer without holding too much capital in low return investments.
With a debt-to-equity ratio of 28%, GAZP's debt level may be seen as prudent. GAZP is not taking on too much debt commitment, which may be constraining for future growth.
GAZP has demonstrated its ability to generate sufficient levels of cash flow, while its debt hovers at an appropriate level. Furthermore, the company exhibits an ability to meet its near-term obligations, which isn't a big surprise for a large-cap. Keep in mind I haven't considered other factors such as how GAZP has been performing in the past. I suggest you continue to research Gazprom to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for GAZP’s future growth? Take a look at ourfree research report of analyst consensusfor GAZP’s outlook.
2. Valuation: What is GAZP 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 GAZP 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. |
When Should You Buy Haldex AB (publ) (STO:HLDX)?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Haldex AB (publ) (STO:HLDX), which is in the machinery business, and is based in Sweden, received a lot of attention from a substantial price movement on the OM over the last few months, increasing to SEK73 at one point, and dropping to the lows of SEK58.9. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Haldex's current trading price of SEK61.5 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Haldex’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
View our latest analysis for Haldex
Haldex appears to be overvalued by 32.03% at the moment, based on my discounted cash flow valuation. The stock is currently priced at kr61.50 on the market compared to my intrinsic value of SEK46.58. Not the best news for investors looking to buy! Furthermore, Haldex’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by a double-digit 19% over the next couple of years, the outlook is positive for Haldex. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
Are you a shareholder?HLDX’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe HLDX should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor?If you’ve been keeping tabs on HLDX for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the optimistic prospect is encouraging for HLDX, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Haldex. You can find everything you need to know about Haldex inthe latest infographic research report. If you are no longer interested in Haldex, you can use our free platform to see my list of over50 other stocks with a high growth potential.
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 Investors Should Know About freenet AG's (FRA:FNTN) Financial Strength
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Investors are always looking for growth in small-cap stocks like freenet AG (FRA:FNTN), with a market cap of €2.2b. However, an important fact which most ignore is: how financially healthy is the business? Understanding the company's financial health becomes essential, as mismanagement of capital can lead to bankruptcies, which occur at a higher rate for small-caps. We'll look at some basic checks that can form a snapshot the company’s financial strength. However, potential investors would need to take a closer look, and I recommend youdig deeper yourself into FNTN here.
Over the past year, FNTN has ramped up its debt from €2.0b to €2.3b – this includes long-term debt. With this rise in debt, the current cash and short-term investment levels stands at €227m , ready to be used for running the business. On top of this, FNTN has produced €387m in operating cash flow over the same time period, resulting in an operating cash to total debt ratio of 17%, meaning that FNTN’s operating cash is less than its debt.
With current liabilities at €1.1b, it appears that the company may not have an easy time meeting these commitments with a current assets level of €707m, leading to a current ratio of 0.67x. The current ratio is calculated by dividing current assets by current liabilities.
Since total debt levels exceed equity, FNTN is a highly leveraged company. This is somewhat unusual for small-caps companies, since lenders are often hesitant to provide attractive interest rates to less-established businesses. No matter how high the company’s debt, if it can easily cover the interest payments, it’s considered to be efficient with its use of excess leverage. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In FNTN's case, the ratio of 5.24x suggests that interest is appropriately covered, which means that lenders may be inclined to lend more money to the company, as it is seen as safe in terms of payback.
FNTN’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow. But, its low liquidity raises concerns over whether current asset management practices are properly implemented for the small-cap. I admit this is a fairly basic analysis for FNTN's financial health. Other important fundamentals need to be considered alongside. I suggest you continue to research freenet to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for FNTN’s future growth? Take a look at ourfree research report of analyst consensusfor FNTN’s outlook.
2. Valuation: What is FNTN 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 FNTN 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. |
Japan: Securitize, Local Advocacy Group Partner to Promote Digital Securities Adoption
Securitize — a compliance platform and protocol for token issuers backed byUnited Statescrypto exchangeCoinbase— is partnering with the Japan Security Token Association (JSTA) to promote the creation of a security token ecosystem inJapan. The news wasreportedbyCointelegraph Japanon June 19.
The JSTA is an advocacy organization focused on the digital securities industry. As Cointelegraph Japan reports, the new partners intend to closely collaborate with Japanese banks as well as local and international regulators in a bid to foster further development of the nascent industry.
Their joint initiative will ostensibly aim to foster security token adoption in financial markets by promoting their practical use cases and clarifying regulatory and legal frameworks.
As Cointelegraph Japan notes, securities token issuance falls under the purview of the country’s Financial Instruments and Exchange Act.
This spring, the Japanese House of Representatives officiallyapproveda new bill to amend both the country’s Financial Instruments and Exchange Act and the Act on Settlement of Funds.
Expected to come into force in April 2020, the new amendments will ostensibly tighten cryptocurrency regulation in order to promote user protection, more robustly regulate crypto derivatives trading, mitigate industry risks, and broadly establish a more transparent regulatory framework for the new asset class.
Earlier this year, Securitizelaunchedits security token compliance program with participation from industry players such as Coinbase Custody, OpenFinance, Rialto Trading, CBlock Capital and others.
Aftersealinga $12.75 million Series A funding round led byBlockchain Capitalin late 2018, SecuritizejoinedtheIBMBlockchain Accelerator program this January.
• Japan Data Initiative Brings Blockchain Security to 100 Major Businesses
• Digital Asset Security Startup Fireblocks Leaves Stealth Mode With $16 Million in Funding
• Cypherpunk Adam Back Speaks of Blockchain Benefits at G20 Meeting of Finance Ministers
• Mt. Gox’s Karpeles: Press Rumors About My Blockchain Plans Are False |
What Should Investors Know About Ringmetall AG's (FRA:HP3) Future?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Looking at Ringmetall AG's (FRA:HP3) earnings update in December 2018, it seems that analyst forecasts are fairly optimistic, as a 35% increase in profits is expected in the upcoming year, though this is noticeably lower than the historical 5-year average earnings growth of 53%. Presently, with latest-twelve-month earnings at €4.8m, we should see this growing to €6.5m by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Ringmetall in the longer term. Readers that are interested in understanding the company beyond these figures shouldresearch its fundamentals here.
Check out our latest analysis for Ringmetall
The view from 2 analysts over the next three years is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
By 2022, HP3's earnings should reach €9.2m, from current levels of €4.8m, resulting in an annual growth rate of 20%. EPS reaches €0.32 in the final year of forecast compared to the current €0.17 EPS today. With a current profit margin of 4.4%, this movement will result in a margin of 6.8% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Ringmetall, I've put together three essential aspects you should look at:
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 Ringmetall 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 Ringmetall is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of Ringmetall? 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. |
Melania Trump kicks off 2020 campaign in bold yellow jumpsuit worth $2,790
On Tuesday night, President Donald Trump and first lady Melania Trump took the stage in Orlando's Amway Center arena. While the main focus was the announcement of the president's bid for re-election , social media users couldn't peel their eyes away from FLOTUS's bright yellow jumpsuit. After Vice President Mike Pence told the crowd "America's back," the Trumps took the stage. "He truly loves this country and will continue to work on your behalf as long as he can," the first lady told supporters. "All of us will." While the president took the opportunity to unveil his 2020 campaign slogan, “Keep America Great,” people on Twitter couldn’t help but fixate on his wife’s wide-legged, canary yellow Ralph Lauren Caitrin jumpsuit (priced at $2,790) with coupled with a gold belt and matching yellow heels. Many approved of the ensemble on social media, stating that the color suited the 49-year-old. . @FLOTUS stuns in a vibrant yellow JUMPSUIT at President Trump's re-election campaign Kickoff rally in Florida. Mainstream media will never give the First Lady the credit she deserves for ANYTHING. She's Incredible! 🔥🔥🔥🔥🔥🔥🔥🔥😍😍😍😍😍😍😍 pic.twitter.com/4at5TUYNzP — Stephanie Hamill (@STEPHMHAMILL) June 19, 2019 @FLOTUS You were a beautiful ray of sunshine tonight in that gorgeous yellow dress; reminding America of our bright future ahead. We are proud and honored to have you as our First Lady. ❤️🇺🇸❤️ #KAG2020 @POTUS @realDonaldTrump — Belynda 🇺🇸💙🇮🇱 (@belynda13) June 19, 2019 @foxheadlines watching @realDonaldTrump I will say @FLOTUS looks very beautiful in that color "yellow" stunning! She always has the best outfits, so sharp; just like a true model!😍😋 — Trevor Dylan (@trevordylan43) June 19, 2019 @FLOTUS You looked absolutely breathtaking tonight, yellow certainly agrees with you. Perfect example of class and traditional beauty in a First Lady.🌹💯 — EVAN🗽🇺🇸 (@Autumnbaby_NYC) June 19, 2019 However, others were less than impressed. Story continues Canary Yellow to match his orangness 🤮 — S M (@Shoogie5) June 19, 2019 Michelle Obama wore this color yellow a few months ago. @FLOTUS knows liberals will insult her so she wears the same shade so the media can print a new story or Twitter will react about how Melania is a victim and abused by crazy Democrats. — Chang'e (@SydNeCoh) June 19, 2019 Why is she wearing a banana costume? — Eric Slater (@ericsslater) June 19, 2019 Despite the first lady’s wardrobe choice, or what social media users thought of it, her message was clear. “It has been my honor to serve as first lady of this incredible country for the past two years,” she said. “And I’m excited to do it for six more!” Read more from Yahoo Lifestyle: Stepdad brought to tears after daughter frames all the inspiring messages he left on her door: 'I kept them all' 'Jeopardy' champion James Holzhauer donates to pancreatic cancer walk in Alex Trebek's name Emotional video shows moment color blind high school graduate sees color for the first time: 'It's so pretty' Follow us on Instagram , Facebook and Twitter for nonstop inspiration delivered fresh to your feed, every day. |
U.S. fines firms transhipping via Cambodia to dodge Trump's China tariffs
By Prak Chan Thul
PHNOM PENH (Reuters) - The United States has fined several companies for exporting goods via a Chinese-owned special economic zone in Cambodia in a bid to dodge President Donald Trump's tariffs on Chinese imports, a U.S. Embassy official told Reuters on Wednesday.
Earlier this month, Vietnam's customs department said it had also found scores of cases of exporters illegally relabelling Chinese goods as "Made in Vietnam" in order to avoid tariffs imposed as a result of the ongoing U.S.-China trade war.
"The Department of Homeland Security has inspected and fined a number of companies for evading tariffs in the United States by routing goods through Cambodia," U.S. Embassy spokesman Arend Zwartjes told Reuters in an emailed statement.
"These companies are located in Cambodia's Sihanoukville Special Economic Zone," said Zwartjes, who did not name or say how many companies had been fined for avoiding the tariffs, how large the fines were, or what goods the companies had been exporting.
Zwartjes referred further questions to the U.S. Department of Homeland Security, which did not immediately respond to a request for comment sent outside of office hours.
Cambodia's customs department and foreign ministry did not immediately respond to a request from Reuters for comment.
China is Cambodia's biggest aid donor and investor, pouring in billions of dollars in development assistance and loans through the Belt and Road initiative, which aims to bolster land and sea links with Southeast Asia, Central Asia, the Middle East, Europe and Africa.
The Sihanoukville Special Economic Zone (SSEZ), 210 kilometres (130 miles) west of the capital, Phnom Penh, is a Chinese and Cambodian joint venture in the Belt and Road initiative which produces textiles, garments, bags and leather products, according to its website.
The zone did not immediately respond to an emailed request for comment.
Under a trade agreement that was expanded in 2016, the Generalized System of Preferences (GSP) allows Cambodia to export travel goods such as bags, luggage and accessories, to the United States duty free.
Kaing Monika, Deputy Secretary General of the Garment Manufacturers Association of Cambodia (GMAC), which represents 600 garment factories in Cambodia, said he was unaware of the transhipments.
The $7-billion apparel industry is the largest formal employer in the Southeast Asian country. Cambodia's economy grew 7.5 percent last year, a four-year high, compared with 7 percent in 2017, helped by rising exports to the United States, the World Bank said in April.
(Reporting by Prak Chan Thul; Editing by James Pearson & Simon Cameron-Moore) |
A Look At The Intrinsic Value Of Haynes Publishing Group P.L.C. (LON:HYNS)
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Does the June share price for Haynes Publishing Group P.L.C. (LON:HYNS) 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. This is done using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model.
View our latest analysis for Haynes Publishing Group
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate:
[{"": "Levered FCF (\u00a3, Millions)", "2019": "\u00a31.20", "2020": "\u00a31.70", "2021": "\u00a32.00", "2022": "\u00a32.23", "2023": "\u00a32.43", "2024": "\u00a32.58", "2025": "\u00a32.71", "2026": "\u00a32.81", "2027": "\u00a32.89", "2028": "\u00a32.96"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x1", "2020": "Analyst x1", "2021": "Analyst x1", "2022": "Est @ 11.73%", "2023": "Est @ 8.58%", "2024": "Est @ 6.37%", "2025": "Est @ 4.83%", "2026": "Est @ 3.75%", "2027": "Est @ 2.99%", "2028": "Est @ 2.46%"}, {"": "Present Value (\u00a3, Millions) Discounted @ 7.1%", "2019": "\u00a31.12", "2020": "\u00a31.48", "2021": "\u00a31.63", "2022": "\u00a31.70", "2023": "\u00a31.72", "2024": "\u00a31.71", "2025": "\u00a31.67", "2026": "\u00a31.62", "2027": "\u00a31.56", "2028": "\u00a31.49"}]
Present Value of 10-year Cash Flow (PVCF)= £15.71m
"Est" = FCF growth rate estimated by Simply Wall St
After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. 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 (1.2%) 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 7.1%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = UK£3.0m × (1 + 1.2%) ÷ (7.1% – 1.2%) = UK£51m
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= £UK£51m ÷ ( 1 + 7.1%)10= £25.70m
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is £41.40m. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of £2.74. Relative to the current share price of £2.26, the company appears about fair value at a 17% 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. 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 Haynes Publishing Group as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.1%, which is based on a levered beta of 0.883. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Haynes Publishing Group, I've put together three important factors you should further examine:
1. Financial Health: Does HYNS 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 HYNS'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 HYNS? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. Simply Wall St updates its DCF calculation for every GB stock every day, so if you want to find the intrinsic value of any other stock justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
SoftBank-backed Tokopedia scores record $1.3 bln Ramadan sale
JAKARTA, June 19 (Reuters) - Tokopedia, an Indonesian e-commerce site backed by SoftBank and Alibaba , said on Wednesday it generated a record $1.3 billion in gross merchandise volume (GMV) during Ramadan sale, amid soaring demand for online retail.
The company said its biggest sales, recorded on May 17, resulted in a total transaction value that was higher than combined sales from the first six years.
"Those transactions are happening across 97% of sub-districts in Indonesia and involved 5.9 million sellers," said Tokopedia founder and CEO William Tanuwijaya.
The start-up secured $1.1 billion in a funding round in December, led by Japan's SoftBank Group Vision Fund and Chinese e-commerce giant Alibaba Group Holding Ltd. Sources say Tokopedia is valued at $7 billion.
Shopping for clothes and gifts during the holy month of Ramadan is a significant part of the culture for Indonesia - the world's largest Muslim-majority country.
The Southeast Asian nation of over 260 million people is seen among the most promising global e-commerce markets, buoyed by a younger generation shifting their preference to online shopping.
The Indonesian internet economy reached $27 billion last year and is poised to grow to $100 billion by 2025, according to Google-Temasek 2018 study.
However, its logistical challenges are massive. The country's 17,000 islands are sprinkled across an area bigger than the European Union, with logistical costs swallowing up around a quarter of Indonesia's gross domestic product.
Tokopedia's Ramadan sale success reflects that e-commerce retailers are trying to overcome difficulties faster than expected amid higher usage of smartphones.
Tanuwijaya told reporters that Tokopedia, which does not have its own inventory, was experimenting with artificial intelligence to predict demand and store stock in advance in partnership with warehouse operators.
Rivals Bukalapak and Shoppee have not made their Ramadan sales public. (Reporting by Fanny Potkin, Editing by Sherry Jacob-Phillips) |
What Percentage Of Ferroamp Elektronik AB (publ) (STO:FERRO) Shares Do Insiders Own?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
A look at the shareholders of Ferroamp Elektronik AB (publ) (STO:FERRO) 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 quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.'
Ferroamp Elektronik is a smaller company with a market capitalization of kr260m, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have not yet purchased shares. Let's take a closer look to see what the different types of shareholder can tell us about FERRO.
See our latest analysis for Ferroamp Elektronik
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 are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to fund under management, so the institition does not bother to look closely at the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Ferroamp Elektronik's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.
We note that hedge funds don't have a meaningful investment in Ferroamp Elektronik. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
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.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our information suggests that insiders maintain a significant holding in Ferroamp Elektronik AB (publ). Insiders own kr74m worth of shares in the kr260m company. It is great to see insiders so invested in the business. It might be worth checkingif those insiders have been buying recently.
With a 42% ownership, the general public have some degree of sway over FERRO. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
With a stake of 7.5%, private equity firms could influence the FERRO board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.
We can see that Private Companies own 22%, of the shares on issue. 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.
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 always like to check for ahistory of revenue growth. You can too, by accessing this free chart ofhistoric revenue and earnings in thisdetailed graph.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, backed by strong financial data.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
How IDFC First Bank Limited (NSE:IDFCFIRSTB) Can Impact Your Portfolio Volatility
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Anyone researching IDFC First Bank Limited (NSE:IDFCFIRSTB) might want to consider the historical volatility of the share price. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market.
Some stocks are more sensitive to general market forces than others. 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.
Check out our latest analysis for IDFC First Bank
Given that it has a beta of 0.81, we can surmise that the IDFC First Bank share price has not been strongly impacted by broader market volatility (over the last 5 years). If history is a good guide, owning the stock should help ensure that your portfolio is not overly sensitive to market volatility. Beta is worth considering, but it's also important to consider whether IDFC First Bank is growing earnings and revenue. You can take a look for yourself, below.
IDFC First Bank is a fairly large company. It has a market capitalisation of ₹198b, which means it is probably on the radar of most investors. When a large company like this trades with a low beta value, it is often because there is some other systemic factor influencing the share price. For example, commodity prices might influence a mining company strongly, while expectations around dividend payments (and capital expenditure requirements) might have a big impact on utilities.
The IDFC First Bank doesn't usually show much sensitivity to the broader market. This could be for a variety of reasons. Typically, smaller companies have a low beta if their share price tends to move a lot due to company specific developments. Alternatively, an strong dividend payer might move less than the market because investors are valuing it for its income stream. In order to fully understand whether IDFCFIRSTB is a good investment for you, we also need to consider important company-specific fundamentals such as IDFC First Bank’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Future Outlook: What are well-informed industry analysts predicting for IDFCFIRSTB’s future growth? Take a look at ourfree research report of analyst consensusfor IDFCFIRSTB’s outlook.
2. Financial Health: Are IDFCFIRSTB’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.
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. |
Brazilian crypto exchange faces lawsuits from clients over withdrawal issues
Brazilian cryptocurrency exchange NegocieCoins is facing several lawsuits from customers over withdrawal issues, according to a CoinTelegraphreport.
Customers are reportedly unable to access funds from NegocieCoins, which is operated by Bitcoin Bank Group. The group is said to be facing lawsuits from customers in at least ten states of Brazil.
Cryptocurrency data provider CoinMarketCap’s page for NegocieCoins alsostates: “We have received reports that user deposits and withdrawals are impeded. Please be careful with your funds.”
Some customers are even willing to cash out their frozen bitcoins at a discount of up to 90% on social media platforms, according to the report.
NegocieCoins is reportedly citing malicious activity as the reason for the delay in withdrawals. The Bitcoin Bank Group, on the other hand, has reportedly been investigating the activity and has subsequently blocked 2,568 accounts and shared related information to police.
NegocieCoins was among the 48 exchanges The Block included in last month's for fake trading volumes analysis. Theanalysisfocused on the exchanges' monthly traffic from November 2018 to April 2019 to get a picture of real volumes in the cryptocurrency market.
According to CoinMarketCap, NegocieCoins’s volume for bitcoin trading stood at $1.3 billion over the last 24-hours. |
UK inflation falls to Bank of England target, underlying pressure weak
By Andy Bruce and David Milliken
LONDON (Reuters) - Britain's inflation rate cooled in May and cost pressures in factories fell to a three-year low, according to data that might reassure the Bank of England there is no urgency to pursue its stated policy of gradually raising interest rates.
Unlike in the euro zone and United States, where waning inflation has spurred expectations for interest rate cuts, the British central bank has stuck to its view that rate hikes will be required at some point to prevent the economy overheating.
Still, Wednesday's data pointed to muted price pressures.
Britain's Office for National Statistics said consumer prices rose at an annual rate of 2.0% in May after a 2.1% rise in April, matching the BoE's target as well as the consensus in a Reuters poll of economists.
Sterling, which has fallen sharply in response to growing expectation that Prime Minister Theresa May's successor will take a more hardline approach to Brexit, showed little reaction to the data.
"With inflation relatively subdued, and against a backdrop of heightened political and economic uncertainty, the case for raising interest rates anytime soon remains weak, despite recent warnings by some Monetary Policy Committee members," the British Chambers of Commerce's head of economics, Suren Thiru, said.
Stable inflation, combined with the lowest unemployment rate in 44 years and rising wages, has taken the edge off the uncertainty about Brexit for many households whose spending drives Britain's economy.
Britain's modest rate of underlying inflation is also helping the BoE to hold off on fresh interest rate hikes while it waits for the outcome of the Brexit impasse, although some officials in recent weeks have said increases may be needed sooner rather than later.
Core inflation, excluding energy, food, alcohol and tobacco, dropped to 1.7% in June, the lowest annual rate since January 2017 and as expected in the Reuters poll.
"Inflation eased in May, as travel prices such as air fares fell back after their Easter highs in April," ONS statistician Mike Hardie said.
Britain's inflation rate surged in 2017, pressured by the slump in sterling after the Brexit referendum in June 2016.
It peaked at a five-year high of 3.1% in November 2017 but has now fallen back to the BoE's 2% target.
Britain's on-target inflation differs from the euro zone's where the European Central Bank has struggled to get inflation to match its target of just below 2%. ECB President Mario Draghi on Tuesday raised the prospect of further monetary stimulus to end the persistent undershoot.
Investors will also watch for signals that the U.S. Federal Reserve might plan to cut rates later this year -- as markets expect and U.S. President Donald Trump has demanded -- when it announces its policy statement at 1800 GMT.
By contrast, when the BoE announces its policy decision on Thursday the focus will be on policymakers' enthusiasm for higher, not lower, rates.
Still, the ONS figures suggested less short-term pressure in the pipeline for consumer prices.
Among manufacturers, the cost of raw materials -- many of them imported -- was 1.3% higher than in May 2018, slowing from 4.5% in April and marking the weakest increase since June 2016.
Economists polled by Reuters had expected input prices to rise by 0.8%.
Manufacturers increased the prices they charged by 1.8% last month compared with 2.1% in April, broadly in line with forecasts and the lowest rate since September 2016.
The ONS said house prices in April rose by an annual 1.4% across the United Kingdom as a whole compared with 1.6% in March. Prices in London alone fell 1.2%, the tenth consecutive fall.
(Editing by Toby Chopra) |
What Kind Of Shareholder Appears On The IL&FS Transportation Networks Limited's (NSE:IL&FSTRANS) Shareholder Register?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
If you want to know who really controls IL&FS Transportation Networks Limited (NSE:IL&FSTRANS), 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.
IL&FS Transportation Networks is not a large company by global standards. It has a market capitalization of ₹1.1b, which means it wouldn't have the attention of many institutional investors. In the chart below below, we can see that institutions own shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about IL&FSTRANS.
Check out our latest analysis for IL&FS Transportation Networks
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 6.7% of IL&FS Transportation Networks. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of IL&FS Transportation Networks, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in IL&FS Transportation Networks. 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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our most recent data indicates that insiders own some shares in IL&FS Transportation Networks Limited. As individuals, the insiders collectively own ₹19m worth of the ₹1.1b company. Some would say this shows alignment of interests between shareholders and the board, though I generally prefer to see bigger insider holdings. But it might be worth checkingif those insiders have been selling.
The general public holds a 18% stake in IL&FSTRANS. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
We can see that Private Companies own 73%, of the shares on issue. 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 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. |
Price of Gold Fundamental Daily Forecast – Bulls Looking for Fed to Signal Multiple Rate Cuts
Gold futures are edging lower on Wednesday well ahead of the U.S. Federal Reserve’s interest rate decision and release of its monetary policy statement at 18:00 GMT.
Prices are being pressured by firm U.S. Treasury yields and increased demand for risky assets on the hope that a planned meeting between U.S. President Trump and China President Xi Jinping at the G-20 meeting in Osaka, Japan later in the month will lead to the resumption of trade negotiations.
At 08:14 GMT,August Comex goldfutures are trading $1346.60, down $4.10 or -0.30%.
Dovish comments from European Central Bank President Mario Draghi on Tuesday also put a lid on gold prices. Draghi said the ECB could still lower interest rates. This drove the Euro sharply lower, pushing up the U.S. Dollar, leading to a drop in demand for dollar-denominated gold.
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 will start on June 28.
Trump’s tweet was enough to trigger a surge in U.S. equity markets and a rise in Treasury yields that helped make the U.S. Dollar a more attractive asset, while dampening demand for gold.
Draghi drove the Euro lower and the U.S. Dollar higher after he said the bank will need to ease policy again if inflation doesn’t head back to its target. Once again, the strong dollar weighed on demand for dollar-denominated gold.
The catalyst behind the price action today is likely to be the Fed’s interest rate decision, monetary policy statement and dot-plot projections. The Fed is expected to leave its benchmark interest rate unchanged at this meeting, but traders want to know what it is going to do in July, September and December.
If the Fed greenlights three rate cuts this year then look for the dollar to weaken. This should drive up gold prices, but gains could be limited if equity prices soar at the same time.
If the Fed comes across as hawkish, meaning it doesn’t indicate a rate cut in July or September then look for a steep drop in gold prices.
At this time, it’s all about the number of rate cuts by the Fed.
Thisarticlewas originally posted on FX Empire
• GOLD Strongly Bullish Trend Targeting 1413 if 1400 Breaks
• Price of Gold Fundamental Daily Forecast – To Chase or Not To Chase? That is the Question
• Emerging Markets and Global Currencies to Jump with Their Hands in Air, as Fed Dangles Keys to Possible US Rate Cut
• GBP/USD Daily Forecast – Sterling at One Week High Ahead of BoE
• EUR/USD Daily Forecast – Euro Surges on Dovish Fed Rhetoric
• USD/JPY Fundamental Daily Forecast – BOJ Holds Policy Steady; Worried About Global Risks |
Tumbling air fares and car prices see UK inflation hit 2% target
A shopper on London's Oxford Street. Photo: Jack Taylor/Getty Images Falling air fares and car prices contributed to a modest fall in the rate of inflation in May, with the consumer price index hitting the Bank of England’s 2% target. By and large, analysts had predicted that the rate of inflation had fallen in May from 2.1% in April, with the month seeing only a small rise in fuel prices. The timing of Easter, which fell in April this year, meant that fares for transport services fell in May, the Office for National Statistics (ONS) said. Air fares declined by 5.2% compared to a 10% increase in the same month in 2018. Car prices, which fell by 0.3%, and a moderate 4.2p per litre growth in the cost of petrol also contributed some downward pressure, the ONS noted. Meanwhile, house prices fell in London in April, according to separate data released on Wednesday. But the cost of renting climbed in the capital, with the ONS suggesting that demand for rental properties continues to outstrip supply. “Annual house price growth remained subdued but was strong in Wales, which showed a pronounced increase on the month,” said Mike Hardie of the ONS. “In London, house prices continued to fall over the year but rental price growth there strengthened.” The 2% inflation figure means that price growth is now exactly on the Bank of England’s target, and comes a day before the central bank will announce its latest interest rates decision. While analysts expect that the bank will leave rates unchanged , it may signal that interest rate hikes are around the corner. The bank’s chief economist, Andy Haldane, has noted that he thinks rates should be increased soon in order to keep inflation in check. READ MORE: What to expect from Bank of England's interest rate decision While its benchmark interest rate remains at a historic low, markets think that hikes are unlikely until a solution to the Brexit stalemate is found — and until the UK’s economy noticeably picks up. Inflation hitting the 2% target means that the case for rate hikes has weakened slightly, with the bank expecting it to fall below target in the coming months. Story continues “Although it would likely prefer to tighten monetary policy, which remains extraordinarily loose, with inflation around target, economic growth crawling along and no clarity on the future path on Brexit, its hands are tied,” said Mike Jakeman, a senior economist at financial services firm PwC. Some analysts had predicted that the rate of inflation had climbed to as much as 2.2% in May. In April, the cost of housing, water, electricity, gas, and other fuels jumped significantly, pushing the annual rate of inflation to its highest in four months. |
How Does Investing In Ess Dee Aluminium Limited (NSE:ESSDEE) Impact The Volatility Of Your Portfolio?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
If you own shares in Ess Dee Aluminium Limited (NSE:ESSDEE) 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. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. The second sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market.
Some stocks see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated price movements. Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). However, Warren Buffett said 'volatility is far from synonymous with risk' in his 2014 letter to investors. So, while useful, beta is not the only metric to consider. To use beta as an investor, you must first understand that the overall market has a beta of one. Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.
See our latest analysis for Ess Dee Aluminium
Given that it has a beta of 1.52, we can surmise that the Ess Dee Aluminium share price has been fairly sensitive to market volatility (over the last 5 years). If this beta value holds true in the future, Ess Dee Aluminium shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. 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 Ess Dee Aluminium's revenue and earnings in the image below.
Ess Dee Aluminium is a rather small company. It has a market capitalisation of ₹219m, which means it is probably under the radar of most investors. It has a relatively high beta, suggesting it is fairly actively traded for a company of its size. Because it takes less capital to move the share price of a small company like this, when a stock this size is actively traded it is quite often more sensitive to market volatility than similar large companies.
Since Ess Dee Aluminium has a reasonably high beta, it's worth considering why it is so heavily influenced by broader market sentiment. For example, it might be a high growth stock or have a lot of operating leverage in its business model. In order to fully understand whether ESSDEE is a good investment for you, we also need to consider important company-specific fundamentals such as Ess Dee Aluminium’s financial health and performance track record. I urge you to continue your research by taking a look at the following:
1. Financial Health: Are ESSDEE’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 ESSDEE 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 ESSDEE'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. |
US billionaire makes biggest donation to Oxford 'since the Renaissance'
Stephen Schwarzman alongside US president Donald Trump in 2017. Photo: Olivier Douliery/ PA Images The biggest single donation to a UK university has been made to Oxford, to fund research and tackle the social implications of artificial intelligence. The university unveiled a £150m gift from US private equity billionaire and Trump advisor Stephen Schwarzman on Wednesday. As the founder of Blackstone financial group (BX) – the largest alternative investment firm in the world – Schwarzman is one of America’s best known billionaires. READ MORE: Want to study at Oxford University? These are the kind of questions you'll need to answer The money will be used to create the Schwarzman Centre for the Humanities, which will include a new Institute for Ethics in AI, as well as performing spaces and a library. With universities facing uncertainty when it comes to funding due to ongoing Brexit negotiations, this is a major triumph for Oxford. Schwarzman told the BBC he gave the money to Oxford due to concerns about artificial intelligence. READ MORE: Cambridge v Oxford – which has the best homes? "At the moment, most governments are utterly unprepared to deal with this – and why would they be? It's a different type of technology," Schwarzman said. He added: "They're going to have to rely on great universities like Oxford, and others around the world, who specialise in helping them think this through." In particular, Schwarzman said universities need to construct an “ethical framework” and responsible implementation for rapidly-occurring changes regarding AI. READ MORE: ID checking tech startup founded by three Oxford graduates raises $50m Experts within and outside the field of AI have warned future developments could cause long-term risks, such as job automation, social manipulation, autonomous weapons, invasion of privacy and social grading, discrimination and the creation of a “super-intelligence.” Earlier this year, Schwartzman made a similar $350m (£279m) donation to the Massachusetts Institute of Technology (MIT), to establish a centre for AI and computing. Story continues Despite the donation being Oxford’s biggest “since the Renaissance,” unlike most major donors, Schwarzman is not a former student of the university. READ MORE: How to get into Oxford, according to Oxford It is "important for people to remember what being human is," Schwarzman told the BBC. "Why are we here? What are your values? How does technology deal and interact with that. "We should want it to be positive and productive for society, and technology can't be allowed to just do whatever it wants because it can." |
Estimating The Fair Value Of Ilkka-Yhtymä Oyj (HEL:ILK2S)
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Ilkka-Yhtymä Oyj (HEL:ILK2S) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. This is done using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.
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.
See our latest analysis for Ilkka-Yhtymä Oyj
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value:
[{"": "Levered FCF (\u20ac, Millions)", "2019": "\u20ac5.00", "2020": "\u20ac5.00", "2021": "\u20ac5.00", "2022": "\u20ac5.01", "2023": "\u20ac5.02", "2024": "\u20ac5.04", "2025": "\u20ac5.06", "2026": "\u20ac5.08", "2027": "\u20ac5.11", "2028": "\u20ac5.13"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x1", "2020": "Analyst x1", "2021": "Analyst x1", "2022": "Est @ 0.16%", "2023": "Est @ 0.28%", "2024": "Est @ 0.35%", "2025": "Est @ 0.41%", "2026": "Est @ 0.45%", "2027": "Est @ 0.48%", "2028": "Est @ 0.5%"}, {"": "Present Value (\u20ac, Millions) Discounted @ 6.18%", "2019": "\u20ac4.71", "2020": "\u20ac4.43", "2021": "\u20ac4.18", "2022": "\u20ac3.94", "2023": "\u20ac3.72", "2024": "\u20ac3.52", "2025": "\u20ac3.33", "2026": "\u20ac3.15", "2027": "\u20ac2.98", "2028": "\u20ac2.82"}]
Present Value of 10-year Cash Flow (PVCF)= €36.76m
"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 (0.5%) 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 6.2%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = €5.1m × (1 + 0.5%) ÷ (6.2% – 0.5%) = €91m
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €€91m ÷ ( 1 + 6.2%)10= €50.20m
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 €86.96m. 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 €3.42. Compared to the current share price of €3.59, the company appears around fair value at the time of writing. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.
We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own 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 Ilkka-Yhtymä Oyj 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 6.2%, which is based on a levered beta of 0.867. 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 Ilkka-Yhtymä Oyj, I've put together three essential factors you should look at:
1. Financial Health: Does ILK2S 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 ILK2S'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 ILK2S? 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 HEL 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. |
Katie Price sparks rumours she's pregnant with sixth child in cryptic post
Katie Price (Credit Ian West/PA Wire) Katie Price has sparked rumours that she is pregnant with her sixth child after sharing a cryptic post on Instagram. The 41-year-old former glamour model shared an image of herself cuddling boyfriend Kris Boyson with the caption: "If only people knew what we know." Read more: Katie Price pleads guilty to using threatening behaviour to ex's girlfriend View this post on Instagram A post shared by Katie Price (@officialkatieprice) on Jun 18, 2019 at 12:52pm PDT Many of her followers immediately jumped to the conclusion that shes pregnant again, bombarding her with excited responses. However, Prices spokesperson told Yahoo UK Price is not pregnant. Some of her followers have instead speculated that Price and Boyson could have got engaged or married in private. Price is currently the mother of five children, and if she were to get engaged it would be for her fourth marriage. Read more: Katie Price's ex-husband Alex Reid says he 'self-harmed' after appearing on 'The Jeremy Kyle Show' Katie Price with her first husband Peter Andre (PA Images) Peter Andre was her first husband and they were divorced in 2009. Just a few months after finalising their split, she then married Cage Fighter Alex Reid, but their marriage didnt last either, ending in 2011. In 2013, she became a wife for the third time when she married stripper Kieran Hayler. However, the couple separated after Price reportedly discovered that Hayler was having an affair with their nanny. According to The Sun, Price is desperate to be divorced by Christmas as she moves to finalise their split. Read more: Katie Price says she looked like a Space Invader after her recent cosmetic surgery. Katie Price and her third husband Kieran Hayler (Credit: Jonathan Short/Invision/AP) Price is now with personal trainer Boyson, who she has had an on-off relationship with since last year. Elsewhere, Hayler recently revealed that there are so many things wrong with Prices £2 million mansion. The condition of Prices house was scrutinised after it appeared on an episode of Through The Keyhole , where viewers spotted piles of rubbish, a scummy swimming pool and horse excrement across her drive. Story continues Speaking to New! magazine, Hayler said: I just think shes so busy that she hasnt had a chance to sort it out yet. "There are so many things wrong with it. We didnt know half the stuff that was wrong with it when we moved in. And the longer you leave something, the worse it gets. Watch the latest videos from Yahoo UK |
Sompo International to Leverage AIR's Innovative Casualty Analytics Solution for Multi-Line Risk Analysis
For Immediate Release:
Sompo International to Leverage AIR`s Innovative Casualty Analytics Solution forMulti-Line Risk Analysis
BOSTON, June 19, 2019 - Catastrophe modeling firm AIR Worldwide (AIR) today announced that Sompo International, a global specialty provider of property and casualty insurance and reinsurance, is leveraging AIR`s casualty analytics platform, Arium, to better understand and quantify its liability and loss potential across multiple commercial liability lines of business. AIR Worldwide is a Verisk (VRSK) business.
Paul McEwan, risk analytics director at Sompo International, said, "By leveraging Arium, we`re able to gain new insights into the nature of our liability exposures and the types of events and threats that can impact our portfolio. The Arium platform helps us to identify accumulations of exposures that may otherwise appear independent and to assess the quantum of risk associated with them. As a result, we can make informed decisions to increase the resilience of the portfolio in the face of an uncertain and unpredictable risk landscape and to more efficiently and robustly deploy our risk capital."
As part of this collaboration, Sompo International is using the Arium solution for multi-line liability risk analysis, and AIR is also offering portfolio data coding services to Sompo International that include unique corporate identifiers and geocodes. Additionally, AIR is providing dedicated training and support that will enable Sompo International to more effectively identify casualty scenarios to model and, by leveraging historical data and AIR`s expert judgment, parameterize and perturb those scenarios.
"Arium is a powerful exposure management application designed to help companies like Sompo International evaluate liability accumulations and run casualty risk scenarios," said Robin Wilkinson, senior vice president and managing director of casualty analytics at AIR Worldwide. "We`re pleased to be working alongside Sompo International over the past two years. Sompo International has a clear and innovative approach to calculating casualty exposures, and our Arium solution has supported the company to implement this approach, enrich its data, and provide more sophisticated risk analysis. By adopting liability risk analysis, Sompo is tackling critical issues in the industry with a reliable methodology, providing a competitive advantage."
Satyan Sawhney, deputy CRO and head of risk analytics at Sompo International, added, "The Arium solution is an important component of our overall risk management framework and, taken together with the support and insight that the Arium team provides, will substantially improve our ability to understand, manage, and mitigate liability risk."
About AIR WorldwideAIR Worldwide (AIR) provides risk modeling solutions that make individuals, businesses, and society more resilient to extreme events. In 1987, AIR Worldwide founded the catastrophe modeling industry and today models the risk from natural catastrophes, terrorism, pandemics, casualty catastrophes, and cyber incidents. Insurance, reinsurance, financial, corporate, and government clients rely on AIR`s advanced science, software, and consulting services for catastrophe risk management, insurance-linked securities, longevity modeling, site-specific engineering analyses, and agricultural risk management. AIR Worldwide, a Verisk (VRSK) business, is headquartered in Boston, with additional offices in North America, Europe, and Asia. For more information, please visitwww.air-worldwide.com.
About Sompo InternationalSompo International is a global specialty provider of property and casualty insurance and reinsurance, headquartered in Bermuda. Through its operating subsidiaries, Sompo International writes agriculture, professional lines, property, marine and energy, and casualty and other specialty lines of insurance and catastrophe, property, casualty, professional lines, weather risk and specialty lines of reinsurance. Sompo International companies are wholly owned subsidiaries of Sompo Holdings, Inc., whose core business encompasses one of the largest property and casualty insurance groups in the Japanese domestic market. We maintain excellent financial strength as evidenced by the ratings of A+ (Superior) from A.M. Best (XV size category) and A+ (Strong) from Standard and Poor`s on our principal operating subsidiaries. Sompo International`s headquarters are located at Waterloo House, 100 Pitts Bay Road, Pembroke HM 08, Bermuda; and its mailing address is Sompo International, Suite No. 784, No. 48 Par-la-Ville Road, Hamilton HM 11, Bermuda. For more information about Sompo International, please visitwww.sompo-intl.com.
###
Media inquiries, contact:Kevin LongAIR Worldwide+1-617-267-6645klong@air-worldwide.com
Ellen ErhardtSompo International+1 914 468 8072eerhardt@sompo-intl.com
This announcement is distributed by West Corporation on behalf of West Corporation clients.The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.Source: AIR Worldwide via GlobeNewswireHUG#2246102 |
Blockchain Hits Top 10 Future Skills in LinkedIn Asia Pacific Report
Blockchainis one of the top ten most important employee skills in the Asia Pacific region, anew reportfrom professional social networkLinkedInconfirmed in June.
A regular feature on the network, the 2019 APAC version of “The Future of Skills” lists blockchain among the most sought-after abilities workers will need in the coming years.
Specifically, “setting up and managing a distributed and decentralised public ledger” will be a useful skill, while other areas making the top ten include compliance and artificial intelligence (AI).
Both areas are closely tied to the blockchain sphere, with the disruptive technology producing a need to inform regulator attitudes.
“Rising skills can be used to forecast where industries are going,” LinkenIn commented about the findings. The report added:
“Examining what rising skills certain industries are hiring for shows what changes they are anticipating.”
As Cointelegraphreported, both blockchain and blockchain industry businesses frequently make other LinkedIn rundowns, such as desirable businesses to work for. In April,United Statescryptocurrency exchangeCoinbasewas the sole crypto company in the local “Top Companies 2019” shortlist.
Within APAC, blockchain appeared particularly high on the list in jurisdictions such asSingapore,Hong KongandSouth Korea. In all three, businesses have flocked to develop applications while governments also express a strong desire to implement the technology formally.
Singapore, for instance, isundertakinga state-wide initiative, Project Ubin, which should bring blockchain-facilitated services to the mainstream beginning in 2020.
• Over 100 Staff Now Reportedly Working On Facebook’s Crypto Project
• Brazil Authorities to Adapt Cross-Sector Regulations to React to Digital Transformation
• Report: Microsoft to Add Blockchain Tools to Its Power Platform
• EU to Increase Access to High-Quality Data for Blockchain, AI Projects |
China central bank to strengthen anti-money laundering cooperation overseas
BEIJING (Reuters) - China's central bank said on Wednesday it would strengthen cooperation with countries including European nations to curb cross-border money laundering activities.
The People's Bank of China (PBOC) said in a statement that cross-border cooperation would focus on anti-money laundering regulation, financial information exchange, and asset recovery among other areas.
The statement, sent to Reuters via email, was given in response to a Reuters story last week in which a senior official at the European police agency Europol warned that the Baltic states were at risk from "huge inflows of criminal money" from Russia and China.
A recent report by the Financial Action Task Force (FATF), a global standard-setter in fighting money laundering, said a "large amount of illicit proceeds flows out of China annually".
"The Chinese government has spared no effort to crack down on all kinds of criminal activities, including money laundering," the PBOC said.
It has recovered 8.6 billion yuan ($1.25 billion) in illegal funds from over 90 countries during 2014 to 2016.
"Of course, there is room for improvement in this area, and we are working to strengthen these aspects," it said.
China is due to take over the presidency of the 38-member FATF on July 1.
($1 = 6.9041 Chinese yuan renminbi)
(Reporting by Yawen Chen and Ryan Woo; Editing by Jacqueline Wong) |
Is Tech Too Intertwined For Huawei To Fall? — Data Sheet
Good morning. Eamon Barrett, filling in for Adam.
Fortune’s inauguralBrainstorm Financeconference kicks off in Montauk today, where big names from big banks will share the stage with crypto-crusaders and fintech innovators. Check in withFortunefor regular updates on the keynotes, beamed in from the Hamptons.
But first, let me take you to China, where Huawei founder and CEO Ren Zhengfei recently revealed troubling financial data from the Chinese manufacturer.
At an event with a cloying title –A Coffee with Ren– Ren told the audience that international shipments of Huawei smartphones will drop 60%, while the company’s revenue forecast has fallen by $20 billion.
Huawei hawks might cheer the news but the collapse of the world’s largest manufacturer of telecom equipment would have global repercussions. The U.S. semiconductor industry makes $11 billion a year off of Huawei. Internet providers in someareas of rural Americadepend on the Huawei tech. It’s then no surprise that Huawei’s U.S. suppliersare lobbyingthe White House to go easy on the firm.
For some, Huawei is a case in point on how the trade war between China and the U.S. has devolved into atech war, where rival blocs will only use technology from their allies. Others, like Singaporean hedge fund manager Kok-hoi Wong, believe we’re in an all out “economic war,” where all targets are fair game and the objective – from a U.S. standpoint – is to suppress China’s rise.
The rift has certainly spread into academia. The State Department increased visa restrictions for some Chinese students, andBloombergreports the FBI has evicted Chinese scientists from cancer research programs, to protect “intellectual property” that could save lives.
Founder of MIT’s Media Lab Nicholas Negroponte and investor George Gilder shared both coffee and stage with Ren, where they described Washington’s action against Huawei as a terrible mistake. Expanding the issue, Negroponte said, “There’s an importance to collaborate on knowledge, because if we start going in opposite directions, it’s going to be an enormous shame.”
Eamon Barrett@eamonbarrett49eamon.barrett@fortune.com
1. NEWSWORTHYGoogle Home.CEO Sundar Pichai announced in a blog post last night thatGooglewill invest$1 billion in Bay Area housing, to alleviate the property crisis spurred by companies like itself. The $1 billion investment is expected to create 20,000 houses. Three quarters of that investment, however, will come through Google rezoning $750 million worth of commercial property it already owns.Keeping it fake.If you didn’t know already, influencer lifestyles are fake. But at least, until recently, the people were real. Then along came Lil Miquela, a “virtual influencer” designed and generated by a computer lab in L.A. The inspirational avatar has 1.6 million Instagram followers and recently starred in a Calvin Klein commercial alongside the real Bella Hadid.More virtual influencers are coming, hired by marketeers to promote the latest trends. Looks like it’s time for influencers to unionize.Shuffle in. Alibabahas placedCFO Maggie Wu in chargeof its strategic acquisitions and investment units, seizing responsibility from Executive Vice-Chairman Joe Tsai. The reshuffle comes as revenue growth slows and the e-commerce giant seeks new cash cows. Tsai will retain his title as executive vice-chairman but Wu’s appointment is the most significant personnel change since founder Jack Ma resigned as chairman last year.Stalling down Electric Avenue.Data firm PitchBook saysChinese EVs have secured just $783 millionin funding as of mid-June, compared to $6 billion for the same period last year. The market is on a turn. Recently,Niochanged courseand formed a JV with a state-owned company;Xpengexpandedinto ride-hailing to boost unit sales; anda series of EV fires, including oneTesla, prompted Beijing to demand all EV makers carry out stringent safety checks.
2. FOOD FOR THOUGHTTheWall Street Journalponders how 13 became the “age of adulthood” for the internet. It’s the minimum age requirement most regular content providers – Google, Facebook, etc. – set for access to their services. That age limit was introduced in 1998 to protect the privacy of children but it was never intended to serve as a content warning. As the internet has developed into a warren of risky clicks, some legislators want to raise the bar to 16, but it might not take hold.undefined
3. IN CASE YOU MISSED ITFacebook Announces Project Libra, Its Wildly Ambitious Plan to Bring Cryptocurrency to the Massesby Jeff John RobertsFacebook Cryptocurrency: Calibra’s Privacy Implicationsby Robert HackettExclusive: Fintech Startup Tally Raises $50 Million to Automate People’s Financesby Robert HackettNintendo’s President on Streaming, 5G Wireless, and E-Sportsby Lisa Marie Segarra
4. BEFORE YOU GOWho knows how many important lunch dates were missed whenGoogle Calendarwent down for three hours yesterday,but the memeswere gold. Another silver lining: the outage, which came an hour after Google bragged of Calendar’s simplicity, might have saved youfrom new phishing scamstargeting your planner. Temporarily, at least.This edition of Data Sheet was curated by Eamon Barrett. Findpastissues, and sign up for other Fortunenewsletters. |
What Does Epsilon Net S.A.'s (ATH:EPSIL) Balance Sheet Tell Us About It?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
While small-cap stocks, such as Epsilon Net S.A. (ATH:EPSIL) with its market cap of €17m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. Evaluating financial health as part of your investment thesis is essential, since poor capital management may bring about bankruptcies, which occur at a higher rate for small-caps. We'll look at some basic checks that can form a snapshot the company’s financial strength. However, this is not a comprehensive overview, so I’d encourage you todig deeper yourself into EPSIL here.
Over the past year, EPSIL has ramped up its debt from €3.0m to €5.9m , which accounts for long term debt. With this increase in debt, EPSIL currently has €8.1m remaining in cash and short-term investments to keep the business going. Additionally, EPSIL has produced cash from operations of €1.3m during the same period of time, resulting in an operating cash to total debt ratio of 22%, indicating that EPSIL’s debt is appropriately covered by operating cash.
At the current liabilities level of €5.0m, it seems that the business has been able to meet these obligations given the level of current assets of €16m, with a current ratio of 3.29x. The current ratio is the number you get when you divide current assets by current liabilities. Having said that, a ratio above 3x may be considered excessive by some investors, yet this is not usually a major negative for a company.
EPSIL is a relatively highly levered company with a debt-to-equity of 49%. This is a bit unusual for a small-cap stock, since they generally have a harder time borrowing than large more established companies. No matter how high the company’s debt, if it can easily cover the interest payments, it’s considered to be efficient with its use of excess leverage. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In EPSIL's case, the ratio of 9.17x suggests that interest is appropriately covered, which means that lenders may be inclined to lend more money to the company, as it is seen as safe in terms of payback.
EPSIL’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow. Since there is also no concerns around EPSIL's liquidity needs, this may be its optimal capital structure for the time being. This is only a rough assessment of financial health, and I'm sure EPSIL has company-specific issues impacting its capital structure decisions. I recommend you continue to research Epsilon Net to get a better picture of the small-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for EPSIL’s future growth? Take a look at ourfree research report of analyst consensusfor EPSIL’s outlook.
2. Historical Performance: What has EPSIL'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 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. |
Such Is Life: How Indo Tech Transformers (NSE:INDOTECH) Shareholders Saw Their Shares Drop 61%
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
If you are building a properly diversified stock portfolio, the chances are some of your picks will perform badly. Long termIndo Tech Transformers Limited(NSE:INDOTECH) shareholders know that all too well, since the share price is down considerably over three years. So they might be feeling emotional about the 61% share price collapse, in that time. And more recent buyers are having a tough time too, with a drop of 35% in the last year.
See our latest analysis for Indo Tech Transformers
Indo Tech Transformers isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Over three years, Indo Tech Transformers grew revenue at 11% per year. That's a pretty good rate of top-line growth. That contrasts with the weak share price, which has fallen 27% compounded, over three years. To be frank we're surprised to see revenue growth and share price growth diverge so strongly. It would be well worth taking a closer look at the company, to determine growth trends (and balance sheet strength).
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.
Take a more thorough look at Indo Tech Transformers's financial health with thisfreereport on its balance sheet.
Indo Tech Transformers shareholders are down 35% for the year, but the market itself is up 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. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 6.2% 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. Shareholders might want to examinethis detailed historical graphof past 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 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. |
Bloomberg: Dish is close to a $6 billion deal with Sprint and T-Mobile
Over the last couple of weeks, we've heard that getting DoJ approval for T-Mobile's proposed $26 billion purchase of Sprint will require making moves to create a new national wireless carrier as a competitor. That could be achieved by selling off Boost Mobile and enough spectrum to make a service viable, however they needed to find a buyer. NowBloombergreports that Dish Network is in talks and couldannounce this weekthat it will be the company to do it, rather than possibles like Altice and Charter (Amazonwasn't mentioned).
The price? Apparently about $6 billion. The pairpromised the FCC they would sell Boost Mobile, and if talks don't fall through, then their hope is that this would help get approval andovercome a lawsuit filed by several state AGs. For its part,Dish has long harbored wireless ambitions, and acted to make them come true. It was evenproposed as a buyer for divested T-Mobile assetsduring merger talks with AT&T back in 2011. We'll see if it happens this time or if things fall apart on the 1-yard line all over again. |
Is There Now An Opportunity In ePRICE S.p.A. (BIT:EPR)?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
ePRICE S.p.A. (BIT:EPR), which is in the online retail business, and is based in Italy, received a lot of attention from a substantial price movement on the BIT over the last few months, increasing to €1.45 at one point, and dropping to the lows of €0.91. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether ePRICE's current trading price of €0.91 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at ePRICE’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for ePRICE
ePRICE appears to be overvalued by 48.77% at the moment, based on my discounted cash flow valuation. The stock is currently priced at €0.91 on the market compared to my intrinsic value of €0.61. This means that the buying opportunity has probably disappeared for now. If you like the stock, you may want to keep an eye out for a potential price decline in the future. Given that ePRICE’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 57% over the next couple of years, the future seems bright for ePRICE. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
Are you a shareholder?It seems like the market has well and truly priced in EPR’s positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe EPR should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor?If you’ve been keeping an eye on EPR for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the optimistic prospect is encouraging for EPR, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on ePRICE. You can find everything you need to know about ePRICE inthe latest infographic research report. If you are no longer interested in ePRICE, you can use our free platform to see my list of over50 other stocks with a high growth potential.
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. |
Boris Johnson's Brexit plan has a big hole
Former London mayor and Tory leadership candidate Boris Johnson. Photo: Frank Augstein/ BP Photo Boris Johnson spelled out his Brexit plan in a TV debate with his Tory leadership rivals on Tuesday nightbut it raised far more questions than it answered. Johnson said Britain should be able to enjoy free trade under an interim post-Brexit agreement with the EU for as long as it takes to negotiate a longer-term trade deal. He pulled out what some Leave supporters call a secret weapon to achieve the seemingly unachievablea little-known clause in World Trade Organisation (WTO) rules. The frontrunner in the contest to be the next UK prime minister said Britain could exploit Article 24 of the General Agreement on Tariffs and Trade , a set of global trade rules. What is the secret weapon of Article 24? WTO rules generally prevent countries agreeing to have no tariffs, as Britain and the EU would do under Johnsons plan, unless they scrap tariffs for every other country too. But Article 24 creates an exception for countries which have signed free trade agreements with each other, or have a detailed plan and timetable to create one. This is how the EU itself is allowed to keep frictionless trade and zero tariffs among members, while keeping certain barriers to other countries outside the bloc. READ MORE: What you need to know about the chaotic Tory TV debate And this is also the tool Johnson, Farage and other Brexiteers hope to use to keep free trade with the EU immediately after Brexit, without having to immediately open Britain up to competition from the whole world too. There will be no tariffs; there will be no quotas because what we want to do is get a standstill in our current arrangements under GATT 24or whatever it happens to beuntil such time as we have negotiated an FTA , Johnson said on the Our Next Prime Minister debate. Why are there major holes in the plan? So far so goodor so it seems. UK prime minister Theresa May is not the first to have pointed out the apparent magic bullet does not actually reflect accurately Britains situation. Story continues The first problem is that the EU itself would have to agree to form this kind of interim agreement to get it off the ground. It is far from clear the EU would be happy to grant Britain such relatively generous terms for up to 10 years after the UK leaves, particularly before any future relationship had been agreed. The second problem is that Britain and the EU are only allowed an interim agreement if they can prove they already have a plan and schedule towards a future free trade deal. If not, other WTO countries have a right to demand they scrap the plans. Johnson suggested he could keep short-term free trade while negotiating a long-term free trade deal - but he would actually have to negotiate the future deal before he could guarantee immediate free trade. Could Johnson pull off a deal before Brexit? That would give the government and Brussels until 31 October to successfully negotiate large chunks of their future relationship, which is a seemingly impossible deadline. Many free trade deals take years to negotiate, and the EU is unwilling to negotiate the future relationship until Britains divorce is settled. Johnsons recent threat to withhold Britains divorce bill could make negotiations even harder. READ MORE: Why a no-deal Brexit could mean twice the bureaucracy for manufacturers The EUs trade commissioner Cecilia Malmstrom called the Article 24 proposal completely wrong earlier this month, saying Britain would inevitably face new tariffs if it left without a deal. As Peter Ungphakorn, a trade expert and former WTO official, has noted: Thats a pretty blunt secret weapon. What happens if Johnsons plan fails? Children play by the Scunthorpe steelworks. Photo: Christopher Furlong/Getty Images If Johnson fails to make progress but still wants to leave the EU by 31 October, Britain would have to leave without a deal. This would mean a chaotic end to current frictionless trade, leading to immediate new border delays and checks on many types of trade in and out of Britain. Some areas could see trade stopped altogether, as they would be left unregulated. Countless businesses and experts have warned this could be catastrophic for the UK, potentially disrupting the flow of vital everyday goods and services from medical devices to car parts to groceries. The Bank of England has warned unemployment and food prices could soar, the pound could crash and house prices could plunge by as much as a third. The only way Britain would be allowed to maintain reasonably free trade in some sectors with the EU would be by lowering trade barriers to all countries, not just European ones. That could see Britain flooded with cheaper goods and services from across the world, which are currently locked out of the EU market. Under the governments current plans for this kind of scenario, many British producers including steel and bicycle makers could be devastated by the increased foreign competition. READ MORE: What is a no-deal Brexit? |
Gold Awaits the FOMC as Economic Data Send Mixed Signals
Friday brought us some good economic news. First of all,the U.S. retail sales rose 0.5 percent in May,according to the government. It means an acceleration from 0.3-percent increase in April. Moreover, the latter change was revised up from -0.2 percent, which means that reports of the death of the Americanretail saleswere greatly exaggerated. Moreover, the retail sales excluding the automotive sector rose also 0.5 percent, which indicates broad-based gains.
Second,industrial production rose 0.4 percent in Mayafter declining -0.4 percent in April,according to the Fed. It was the strongest monthly increase since November 2018, as one can see in the chart below. Although the growth primarily reflected higher output of automotive products, it was generally well distributed among the many industrial production components.
The gain inindustrial production, together with the rebound in retail sales,indicates an important economic improvement in May. It also shows that the worries about the health of the overall economy and the damage of thetrade warshave been, at least so far, overstated. Both the consumer sector and industrial production rebounded after the softness in the first quarter. These reports will probably not change the U.S. central bank’s overall assessment of the economy, butthey should ease the pressure to act. Hence, theFedis not likely to cutinterest ratesat the upcoming meeting. Instead, it should remain in a ‘wait-and-see’ mode.
However, on Monday we have seen some negative data coming in. We mean here mainly the fact thatthe Empire State Manufacturing Index plummeted 26.4 points from 17.8 in May to negative 8.6 in June,according to the New York Fed. It was the first negative reading for the index in more than two years andthe largest monthly decline on record. Importantly, the new-orders index sank 21.7 points to negative 12. The index for future business conditions also fell, declining five points to 25.7.
The sharp slide adds to the worries about the state of the US economy. However, the thinking is the decline might be just a temporary drop resulting from Trump’s threat to impose tariffs on Mexico. But with the deal on immigration reached and tariffs suspended, the index may rebound in the near future.
What does it all mean for the gold? While the Empire State Index plunged,the overall picture of the U.S. economy has improved, as both the retail sales and the industrial production rebounded. Investors better remember that regional indices are based on businesses’ surveys, and can be quite volatile.
Hence, it seems thatthe currentmarket oddsof the Fed’s interest rate cut have swung a little too far. It might be the case that the Wall Street takes the Fed as a hostage, but the financial market is probably ahead of cuts. In the future markets, two rate cuts by the end of this year are already priced in. Not one, but two! It sounds as if we would be already in the recession! When we checked last time, it was not the case. This is why we believe that traders overestimate the dovishness of the Fed.
The same applies to the gold market.The yellow metal rallied at the turn of May and June – partially ondovish expectationsabout the future Fed’s stance. But what will happen if the Fed fails to meet the market’s expectations? The price of the gold may decline. Just sayin’. We will see soon – stay tuned!
If you enjoyed the above analysis, we invite you to check out our other services. We provide detailed fundamental analyses of the gold market in our monthlyMarket Overviewreports and we provide dailyGold & Silver Trading Alertswith clear buy and sell signals. If you’re not ready to subscribe yet and are not on our gold mailing list yet, we urge you to sign up. It’s free and if you don’t like it, you can easily unsubscribe.Sign up today!
Thank you.
Arkadiusz Sieron
Sunshine Profits‘Gold News MonitorandMarket OverviewEditor
Disclaimer:Please note that the aim of the above analysis is to discuss the likely long-term impact of the featured phenomenon on the price of gold and this analysis does not indicate (nor does it aim to do so) whether gold is likely to move higher or lower in the short- or medium term. In order to determine the latter, many additional factors need to be considered (i.e. sentiment, chart patterns, cycles, indicators, ratios, self-similar patterns and more) and we are taking them into account (and discussing the short- and medium-term outlook) in our trading alerts.
All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski’s, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.
Thisarticlewas originally posted on FX Empire
• Emerging Markets and Global Currencies to Jump with Their Hands in Air, as Fed Dangles Keys to Possible US Rate Cut
• USD/CAD Daily Forecast – Gann Fans Revealing Sharp Pullbacks Near 3:1 Line
• Markets Rally In Wake Of Fed, Central Bankers Turn Dovish, Trade Hopes Rise In Asia
• USD/JPY Fundamental Daily Forecast – BOJ Holds Policy Steady; Worried About Global Risks
• EUR/USD Mid-Session Technical Analysis for June 20, 2019
• E-mini S&P 500 Index (ES) Futures Technical Analysis – June 20, 2019 Forecast |
Want To Have a Child? Save Up This Much Money First
Deciding when to have a baby is an intensely personal decision and one that couples should not enter into lightly. There are many factors to consider, not the least of which is how much it costs to raise a child. The U.S. Department of Agriculture estimates that the average cost of a kid who was born in 2015 through age 17 is $233,610.
Fortunately, you don’t have to have all that money saved by the time the child is born. There are some upfront costs, however. GOBankingRates looked at the average cost of a baby in their first year, including expenses related to childbirth, food, clothing and healthcare. This is how much new parents can expect to spend in their baby’s first 12 months.
The cost to actually give birth is significant and varies depending on what type of birth you have and where you live. A vaginal birth is less expensive than a C-section, averaging $6,602.38. If you have a C-section, you can expect to pay an average of $9,520.62.
Related:Best and Worst States for Single Parents To Raise a Family
The cost of delivery can vary quite a bit based on where you live. According to a survey from FAIR Health and Money.com, the average cost of a C-section in Alaska, for example, is $14,528. In Alabama, it’s $7,730. For a vaginal birth, you’ll pay $10,413 in Alaska, but just $5,017 in Alabama.
The Cost To Deliver a Child in the US
[{"State": "U.S. Average", "Average Price forVaginal Delivery": "$6,602.38", "Average Price forC-Section": "$9,520.62"}, {"State": "Alabama", "Average Price forVaginal Delivery": "$5,017.00", "Average Price forC-Section": "$7,730.00"}, {"State": "Alaska", "Average Price forVaginal Delivery": "$10,413.00", "Average Price forC-Section": "$14,528.00"}, {"State": "Arizona", "Average Price forVaginal Delivery": "$6,822.00", "Average Price forC-Section": "$9,616.00"}, {"State": "Arkansas", "Average Price forVaginal Delivery": "$5,600.00", "Average Price forC-Section": "$8,037.00"}, {"State": "California", "Average Price forVaginal Delivery": "$7,626.00", "Average Price forC-Section": "$10,675.00"}, {"State": "Colorado", "Average Price forVaginal Delivery": "$6,739.00", "Average Price forC-Section": "$9,647.00"}, {"State": "Connecticut", "Average Price forVaginal Delivery": "$8,102.00", "Average Price forC-Section": "$11,208.00"}, {"State": "Delaware", "Average Price forVaginal Delivery": "$6,388.00", "Average Price forC-Section": "$8,640.00"}, {"State": "Florida", "Average Price forVaginal Delivery": "$7,800.00", "Average Price forC-Section": "$10,926.00"}, {"State": "Georgia", "Average Price forVaginal Delivery": "$6,813.00", "Average Price forC-Section": "$9,598.00"}, {"State": "Hawaii", "Average Price forVaginal Delivery": "$5,743.00", "Average Price forC-Section": "$8,265.00"}, {"State": "Idaho", "Average Price forVaginal Delivery": "$5,695.00", "Average Price forC-Section": "$8,341.00"}, {"State": "Illinois", "Average Price forVaginal Delivery": "$7,526.00", "Average Price forC-Section": "$10,737.00"}, {"State": "Indiana", "Average Price forVaginal Delivery": "$6,379.00", "Average Price forC-Section": "$9,688.00"}, {"State": "Iowa", "Average Price forVaginal Delivery": "$5,848.00", "Average Price forC-Section": "$8,627.00"}, {"State": "Kansas", "Average Price forVaginal Delivery": "$5,541.00", "Average Price forC-Section": "$8,519.00"}, {"State": "Kentucky", "Average Price forVaginal Delivery": "$5,905.00", "Average Price forC-Section": "$8,773.00"}, {"State": "Louisiana", "Average Price forVaginal Delivery": "$5,590.00", "Average Price forC-Section": "$7,985.00"}, {"State": "Maine", "Average Price forVaginal Delivery": "$5,893.00", "Average Price forC-Section": "$8,182.00"}, {"State": "Maryland", "Average Price forVaginal Delivery": "$6,782.00", "Average Price forC-Section": "$9,354.00"}, {"State": "Massachusetts", "Average Price forVaginal Delivery": "$7,767.00", "Average Price forC-Section": "$10,534.00"}, {"State": "Michigan", "Average Price forVaginal Delivery": "$5,868.00", "Average Price forC-Section": "$8,533.00"}, {"State": "Minnesota", "Average Price forVaginal Delivery": "$6,299.00", "Average Price forC-Section": "$9,340.00"}, {"State": "Mississippi", "Average Price forVaginal Delivery": "$5,605.00", "Average Price forC-Section": "$8,534.00"}, {"State": "Missouri", "Average Price forVaginal Delivery": "$5,842.00", "Average Price forC-Section": "$8,830.00"}, {"State": "Montana", "Average Price forVaginal Delivery": "$6,042.00", "Average Price forC-Section": "$8,602.00"}, {"State": "Nebraska", "Average Price forVaginal Delivery": "$5,432.00", "Average Price forC-Section": "$8,373.00"}, {"State": "Nevada", "Average Price forVaginal Delivery": "$7,157.00", "Average Price forC-Section": "$10,199.00"}, {"State": "New Hampshire", "Average Price forVaginal Delivery": "$6,887.00", "Average Price forC-Section": "$10,034.00"}, {"State": "New Jersey", "Average Price forVaginal Delivery": "$9,302.00", "Average Price forC-Section": "$13,300.00"}, {"State": "New Mexico", "Average Price forVaginal Delivery": "$6,189.00", "Average Price forC-Section": "$9,028.00"}, {"State": "New York", "Average Price forVaginal Delivery": "$8,936.00", "Average Price forC-Section": "$11,887.00"}, {"State": "North Carolina", "Average Price forVaginal Delivery": "$6,375.00", "Average Price forC-Section": "$9,247.00"}, {"State": "North Dakota", "Average Price forVaginal Delivery": "$6,820.00", "Average Price forC-Section": "$9,221.00"}, {"State": "Ohio", "Average Price forVaginal Delivery": "$5,836.00", "Average Price forC-Section": "$8,371.00"}, {"State": "Oklahoma", "Average Price forVaginal Delivery": "$6,003.00", "Average Price forC-Section": "$8,688.00"}, {"State": "Oregon", "Average Price forVaginal Delivery": "$6,565.00", "Average Price forC-Section": "$9,624.00"}, {"State": "Pennsylvania", "Average Price forVaginal Delivery": "$6,850.00", "Average Price forC-Section": "$10,266.00"}, {"State": "Rhode Island", "Average Price forVaginal Delivery": "$5,401.00", "Average Price forC-Section": "$8,337.00"}, {"State": "South Carolina", "Average Price forVaginal Delivery": "$6,521.00", "Average Price forC-Section": "$8,898.00"}, {"State": "South Dakota", "Average Price forVaginal Delivery": "$6,102.00", "Average Price forC-Section": "$8,866.00"}, {"State": "Tennessee", "Average Price forVaginal Delivery": "$6,748.00", "Average Price forC-Section": "$9,400.00"}, {"State": "Texas", "Average Price forVaginal Delivery": "$7,349.00", "Average Price forC-Section": "$10,576.00"}, {"State": "Utah", "Average Price forVaginal Delivery": "$5,357.00", "Average Price forC-Section": "$8,226.00"}, {"State": "Vermont", "Average Price forVaginal Delivery": "$6,257.00", "Average Price forC-Section": "$10,067.00"}, {"State": "Virginia", "Average Price forVaginal Delivery": "$6,953.00", "Average Price forC-Section": "$10,288.00"}, {"State": "Washington", "Average Price forVaginal Delivery": "$6,482.00", "Average Price forC-Section": "$9,546.00"}, {"State": "West Virginia", "Average Price forVaginal Delivery": "$5,815.00", "Average Price forC-Section": "$8,639.00"}, {"State": "Wisconsin", "Average Price forVaginal Delivery": "$8,314.00", "Average Price forC-Section": "$11,640.00"}, {"State": "Wyoming", "Average Price forVaginal Delivery": "$6,823.00", "Average Price forC-Section": "$9,861.00"}, ["Source: FAIR Health"]]
Understanding your health insurance is the best way to prepare for the cost of pregnancy and childbirth. Know what is covered and what is not and have a plan to cover your out-of-pocket costs.
If you have a high-deductible health insurance policy and a health savings account (HSA), you can contribute pre-tax dollars to the HSA. When it comes time to head to the hospital, you can use the HSA funds to pay for the delivery. For 2019, a family can contribute $7,000 to an HSA as long as their health insurance plan has at least a $2,700 deductible.
According to the Bureau of Labor Statistics Consumer Expenditure Study, the average American family spends $629 per year on clothing, diapers and wipes for a child under two.
Groceries for a family of three average $5,493 per year. If you live in an expensive city, you can expect the cost to be higher. This doesn’t factor in costs for take-out, delivery, fast food or full-service restaurants that you’ll most likely indulge in at some point throughout the year.
These first-year baby expenses will typically come out of earned income, so you’ll pay as you go. But you should adjust your budget to account for the added cost of a child.
“I have found that a 50/20/30 budgeting method can be a straightforward budgeting guideline that sets young people up for a successful transition,” said Kateri Turner, a certified financial planner with Government Employee Benefits Association (GEBA) and a mother of two. “This method allows for 50% of take-home pay to be designated to needs, such as rent, food, transportation, utilities and debt repayment. Twenty percent is designated for savings, and 30% for wants, like cable, vacations, dining out, etc.”
Don’t Miss:The Most (and Least) Expensive States To Have a Child
The average family will pay $5,345 per year for family healthcare and health insurance. Babies require a lot of doctor visits during the first year, but most preventative care is fully covered by health insurance.
Understanding your health insurance is critical to keeping costs down. Know how much you have to pay out of pocket, which includes premiums, deductibles, and co-payments or coinsurance. Be sure to use physicians who are in your insurance network. And if you have a choice of plans from your employer, review them to make sure you are enrolled in the best one for your growing family.
The average cost for baby’s first year includes $2,642 for child care expenses, but putting your baby in day care will cost you far more than that. According to a 2018 Care.com survey, the average weekly cost for infant child care is $211 for a day care center, $195 for a family care center and $580 for a nanny. The survey also found that one in three families now spend 20% or more of their annual household income on child care.
Also See:How Much It Costs To Raise an Ivy League-Kid
To reduce your infant day care cost, or avoid it entirely, try to have one parent stay home with the child, even if it means you have to work part-time or telecommute. If the nature of your work won’t allow this, and leaving the workforce entirely isn’t an option, perhaps you and your spouse or partner could work opposite shifts, so someone is always at home.
You could also explore a nanny share option, where two or more families join together to hire one person to care for multiple children. Research your neighborhood or surrounding area online, too, for nanny referral services or nanny agencies that might be able to assist you in hiring a nanny.
To prepare for the cost of college, considerstarting a 529 plan. “These plans provide tax-free growth of your investment, and there are no income, age or contribution limits,” said Turner. “The funds are transferrable among family members, and grandparents and others can contribute as well.”
Up Next:The Best States To Raise a Family All Have These Things in Common
Having a baby involves many different types of sacrifices. You likely won’t have as much time to dedicate to hobbies or your favorite television shows, your social life could take a serious hit and you definitely won’t get as much sleep.
There are also financial implications. Because of the high expense of childbirth and other medical expenses, the first year of a child’s life is typically more expensive than subsequent years. In fact, on average, you can expect to spend over $20,000 during the first year alone. That’s something couples need to seriously consider before having a child.
By carefully prioritizing expenses that are most important to you, you will be better able to provide for your family and will teach your child an important lesson at the same time. Turner says, “While I have found that there is no ‘perfect’ time to have a child, it is important to consider and create a new financial plan that will ensure you start your life as a parent on the right foot.”
Keep reading to seemany families are flocking to this one state.
More on Saving Money and Family
• Taking Care of Your Kids and Parents? 8 Ways To Thrive When You’re in the ‘Sandwich’ Generation
• Buying a Dog vs. Having a Kid: A Cost Breakdown
• 96% of Americans Are Missing Out On Major Savings Using This Trick
Methodology: GOBankingRates found the cost for the first year of having a child by using the following factors: (1) average annual expenditure on apparel for “children under 2” for a family of three (defined as a “married couple with oldest child under 6”), sourced from the Bureau of Labor Statistics 2017 Consumer Expenditure survey; (2) the annual cost of “Food at Home” for a family of three as sourced from the Bureau of Labor Statistics 2017 Consumer Expenditure survey; (3) the annual “Healthcare” costs for a family of three as sourced from the Bureau of Labor Statistics 2017 Consumer Expenditure survey; (4) the annual cost of child care and education as sourced from the United States Department of Agriculture’s Cost of Raising a Child Calculator, assuming it will be a two-parent household, with no other children and an income of $59,200 or below (current U.S. median household income is $57,652, according to the Census Bureau); and the average cost of childbirth for both (5) vaginal deliveries and (6) C-section deliveries as sourced from FAIR Health’s and Money.com’s survey, “Find Out How Much it Costs to Give Birth in Every State.” These factors were combined to give a total cost for the first year of having a child in a two-parent household for both vaginal and C-section deliveries.
This article originally appeared onGOBankingRates.com:Want To Have a Child? Save Up This Much Money First |
Decentralized Video Platform Built on Ethereum Raises $8 Million
Livepeer, a decentralized video encoding platform built on theEthereumnetwork, announced it has received an $8 million Series A venture capital round lead byNorthzone.
Noticing the prodigious increase in video streaming across the web and the prohibitive costs involved in transcoding, serial entrepreneurs Doug Petkanics and Eric Tang built a platform that links encoding providers with anyone who needs processing power for video services.
The infrastructure functions as a “token coordinating network,” incentivizing those with computing power to join and match the needs of those looking to stream, by offering the ability to get paid for their idle processing power in ethereum.
Currently the company has more than 30 providers of compute power on the platform, and more than 100 events have streamed video through Liverpeer. Though Petkanics toldTechCrunch, those users may have been an “early-adopter, philosophically-aligned crowd.”
Livepeer is designed for developers who want to build applications that include live video, users who want to stream video, gaming, coding, entertainment, or educational courses, and broadcasters who currently have large audiences and high streaming bills or infrastructure costs.
By making use of idle processing power, Liverpeer drives down the price for encoding. Petkanics said the system is 10 times cheaper than incumbent streaming providers, equivalent to two streams for roughly 70 cents per day, compared to $3 per stream per hour of traditional streaming services.
Founders see an additional growth opportunity in bootstrapping the excess capacity of GPUs used by crypto miners, thereby further reducing costs. Though they also said the Series A funding will go towards implementing applications outside of the purview of crypto-fans to enter the larger marketplace.
The company is offering six months free for new participants as an inducement to try the platform.
Video infrastructure behemoth Brightcove’s former CEO David Mendels joined the upstart as an advisor to the company. And Houseparty founder Ben Rubin was part of the Series A round.Additionally, Digital Currency Group — which acquired CoinDesk in 2016 — Libertus, Collaborative Fund, Notation Capital, Compound, North Island and StakeZero also provided funding.
Photo bySam McGheeonUnsplash |
He Says He Invented Bitcoin and Is Suing Those Who Doubt Him
(Bloomberg) -- At a convention on digital currency, rarely does an audience Q&A session include a question as incendiary as, “Why is this fraud allowed to speak at this conference?” But that’s how a discussion about Bitcoin ended up last year in Seoul.
The supposed fraud is Craig Wright, an Australian-born technologist who gained notoriety three years ago when he declared himself the inventor of Bitcoin. The provocateur is Vitalik Buterin, a baby-faced Russian-Canadian programmer who helped create another popular digital currency called Ether. No one disputes Buterin’s role in Ether; many reject Wright’s claim to be Satoshi Nakamoto, the mysterious genius behind Bitcoin.
Wright is a comic-book supervillain for some in the world of cryptocurrency. Buterin’s rant was applauded by a handful of people at the conference, including one of the panelists and a man on the sidelines wearing a vest and metallic fiber shirt. It had the feel of an impromptu live performance of a Twitter flame war. The whole thing lasted 90 seconds. Footage recorded from the crowd provided an amusing YouTube video and sparked a fresh round of tweets mocking Wright.
That appeared to be that, until a year later when Buterin received a letter from Wright’s attorney. The legal notice, dated April 12, said Wright intends to sue Buterin in the U.K. for defamation. Less than a week later, Wright filed suit with similar claims against a podcaster named Peter McCormack, seeking 100,000 pounds ($129,000) in damages. And on May 2, Wright’s lawyers served Roger Ver, an early Bitcoin investor, at a cryptocurrency meet-up in London.
Ver says by email he intends to defend himself in court. Buterin and McCormack didn’t respond to requests for comment, but all three have recently posted messages online calling Wright a fraud. In a blog post, Buterin painted the legal dispute as being about censorship, free speech and truth.
Wright has spent much of the last year with lawyers. He’s currently defending against claims in a U.S. court that he defrauded the estate of Dave Kleiman, a former business partner who died in 2013. Wright is accused of stealing Bitcoins he and Kleiman mined together about a decade ago. A federal judge ordered Wright to submit documentation of his early Bitcoin holdings, which were sealed on Monday, and he attended mediation Tuesday in Florida.
At some point, Wright determined the courts could be a useful venue for achieving his own goals. Wright, who says he holds a master’s degree in law from Northumbria University in the U.K., hopes a series of lawsuits can establish himself as the father of Bitcoin. “This will give me the chance to prove my credentials in front of a judge, rather than being judged by Twitter,” Wright told Bloomberg in an email.
If he really is Satoshi Nakamoto, Wright will have no trouble funding a protracted legal war on his critics. The true creator of Bitcoin is estimated to hold about $9 billion of the coins. In most cases, the expensive prospect of getting sued tends to make rational people keep critical views to themselves. “There’s some really broad recognition that the threat of defamation lawsuits really substantially chills speech,” says David Greene, senior staff attorney at the Electronic Frontier Foundation, a civil liberties advocacy group.
For whatever reason, that didn’t occur here. Online discussion of Wright reached a peak shortly after his lawsuit against McCormack, and the content was overwhelmingly scathing. During the week following his suit, 65 percent of posts expressed a negative sentiment, compared with about half before, according to Brand24, which monitors conversations on social media. Crowdfunding efforts have popped up to assemble legal defense funds for some of Wright’s defendants. Data from Google suggests the litigation drew the most attention to Wright since his contentious claims in 2016, when he offered what he called definitive proof of his role in creating Bitcoin.
Although digital currencies have a market value of more than $280 billion today, the circus surrounding Wright shows that the industry still operates as a free-for-all. Experts aren’t entirely sure who conceived of the world’s most valuable form of digital money, but there’s enough of it to go around that the threat of costly lawsuits doesn’t seem to deter anyone from speaking their mind.
John McAfee is a prime example. The software pioneer turned digital coin advocate says he knows the real Satoshi Nakamoto, and it is not Wright. “I am going to tell the truth no matter what the consequences are,” McAfee says. “I’ve been sued over 200 times in my life. I am not afraid of getting sued.” In response, Wright called him “McScammer” and suggested they resolve their dispute in court.
The cryptocurrency business is full of colorful characters. Wright joined the starring cast in late 2015, when Wired magazine and Gizmodo reported that he and Kleiman may have invented Bitcoin. A few days later, Wired said Wright may instead be “a brilliant hoaxer.” Police raided Wright’s home in Australia as part of a tax investigation; he moved to Britain.
In May 2016, the BBC, the Economist and—most important in the eyes of Bitcoin zealots—several prominent leaders of the cryptocurrency movement said Wright furnished what appeared to be evidence of his claim to the throne. They said he gave a private demonstration of a special digital signature used by Satoshi Nakamoto. “The proof is conclusive, and I have no doubt that Craig Steven Wright is the person behind the Bitcoin technology,” Jon Matonis, founding director of the Bitcoin Foundation, wrote in a blog post at the time.
This did not quiet the doubters, either. “It would be like if I was trying to prove that I was George Washington and to do that, provided a photocopy of the Constitution and said, look, I have George Washington’s signature,” Peter Todd, a key Bitcoin developer, told Vice’s Motherboard.
Bitcoin holdings attributed to Satoshi Nakamoto haven’t moved in years, according to online ledgers. Critics have urged Wright to verify his identity by transferring some coins, a proposal he has refused.
As Wright spars with some cryptocurrency faithful, he’s hoping to get the community’s help with identifying his next legal target. He said he intends to sue an anonymous Twitter user known as Hodlonaut, whose profile picture is represented by a cartoon cat wearing a space helmet. Wright posted a $5,000 reward for information to locate the person behind the account and referred bounty hunters to photos the user had posted showing arm tattoos. Hodlonaut wrote in a tweet Monday that he had issued legal proceedings against Wright in Norway.
McCormack, the podcaster Wright sued in April, is piling on as he awaits his day in court. McCormack wrote a satirical response to Wright’s lawyers, saying, “I find it difficult to understand how I can affect the reputation of your client; this mistakenly states that he has any reputation left.”
In addition to widespread derision, Wright’s crusade has inflicted damage on his business interests. He’s now pushing a coin called Bitcoin SV, which he says is Bitcoin the way Satoshi Nakamoto truly intended. Wright’s lawsuits drew a harsh rebuke from Zhao Changpeng, the head of one of the world’s largest cryptocurrency exchanges, Binance. Zhao said he was “against fraud,” and then Binance delisted Bitcoin SV. The coin’s market value plummeted 50% over two days, though it recovered during the broader cryptocurrency rally in May.
Wright and his few vocal allies are undeterred. On May 21, Wright said he was granted a U.S. copyright for early Bitcoin code and for the original whitepaper authored by Satoshi Nakamoto. Three days later, someone named Wei Liu filed a competing copyright claim. A spokesman for the agency says it “does not investigate the truth of any statements made.”
Calvin Ayre, a dot-com-era gambling tycoon and the most persistent supporter of Wright, said he’d release evidence proving Wright’s claim by the end of May. He didn’t. “But now that we have somebody challenging the copyright, we can take that to a legal conclusion, which is what we are now trying to do,” Ed Pownall, a spokesman for Ayre, wrote in an email.
Wright sees the insults as something more sinister than routine internet trolling. He says his detractors are criminals, who profit from human trafficking, and that their true motive is to sabotage his attempts to eliminate illegal uses of Bitcoin. “I designed Bitcoin to stop all of this,” Wright says. “That is why they hate me.”
To contact the author of this story: Olga Kharif in Portland at okharif@bloomberg.net
To contact the editor responsible for this story: Mark Milian at mmilian@bloomberg.net, Emily Biuso
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
12 People Who Retired Young (and How They Did It)
After shooting 15 films in seven years, Macaulay Culkin decided to quit acting at age 14 and retire to normal life and attend high school in Manhattan. The “Home Alone” and “Ri¢hie Ri¢h” star began acting at 4 years old and he earned an estimated $17 million from his on-screen work — enough to retire, even as a teenager.
Retiring early isn’t just a dream reserved for the stars. Plenty of people manage to achieve financial independence without hitting stardom. In fact, the 12 people profiled here retired well before their 60s thanks to hard work, a high savings rate, frugal living, smart investing, or a combination of savvy retirement strategies. Several actually retired before they turned 40.
Each person took his or her own path, but there are similarities in the ways they all reached financial independence. Read their stories to find out what it takes to retire early.
Imagine being able to retire before age 30. Most people are just starting out in their careers at that point, but Pauline Paquinleft the 9-to-5 working lifewhen she was just 29.
“What helped me achieve financial independence early is I got an early start in life,” said Paquin, the founder of the blog Reach Financial Independence. She had several jobs as a teen, kept hustling through college and graduated with $25,000 in savings that helped her buy her first rental property with cash.
“I realized early on that money buys freedom, and every time I would save $50, I would tell myself that’s a day I don’t need to work in the future,” she said. Now, Paquin has three rental properties that provide enough income to support her low-cost early retirement lifestyle in Guatemala.
Jim Wang left the workforce at 30 after selling his successful blog, Bargaineering. While Wang was working as a software engineer in the defense industry, he started blogging on the side for fun. However, that hobby turned into a profitable business. See ifyou’re financially ready to quit your job, like Wang was.
“I quit my job once Bargaineering was bringing in enough,” Wang said. “It had been for over a year, but I was still scared to make the leap.”
He left his software engineering job in 2008, then sold Bargaineering in 2010, invested the proceeds and “retired.” Wang now has a new blog, Wallet Hacks. It’s something he does for fun rather than to support himself financially, so he still considers himself retired.
After working for 10 years in the nonprofit sector as a fundraiser and communications manager, Elizabeth Willard Thames retired at age 32. She and her husband, Nate, left their careers in Cambridge, Mass., and moved to 66 wooded acres in Vermont. Urban Bostonhas a lot higher living expensesthan rural Vermont.
“For my husband and me, the key thing that helped us reach financial independence was having a clear goal for why we wanted to pursue a different lifestyle,” said Thames, author of “Meet the Frugalwoods: Achieving Financial Independence through Simple Living” and founder of the Frugalwoods blog.
“Articulating that we wanted to move to a homestead in the woods of Vermont and have greater control over our time motivated us to save money at a very high rate and embrace a simpler approach to living,” she said. “Knowing that we were working toward this more fulfilling lifestyle allowed us to let go of the desire to spend money and freed us up to focus only on our highest and best priorities.”
Learn More:How to Set Career and Financial Goals You’ll Actually Achieve
Being incredibly frugal helped Jillian Johnsrud retire at age 32 from a sales job and her husband, Adam, take an early medical retirement at 35 from the Army. “We never earned a lot of income, so we had to be really freaking scrappy and focused to get here,” said Johnsrun, who blogs about her financial freedom and frugal living at Montana Money Adventures.
She and her husband managed to save $100,000 by age 24 by stashing all of her earnings and living on just his $1,800 monthly paycheck from the Army. They continued to save,their investments grew thanks to compound interest, and they used some of that money to buy a rental property. Then with the income from that rental property, they bought another, Johnsrud said.
Monthly rental income of $1,250 and her husband’s monthly military retirement benefit of $1,450 is enough to support them in their early retirement — along with their five children — because they keep costs low. “We rarely buy stuff or feel a need to spend money to be happy,” she said.
Learn More:9 People Share the Extreme Methods They Took to Retire Early
Todd Tresidder knew before he even started working that he wanted toachieve financial independence to retire early, which he did at age 35. “My entire process was very conscious, methodical and planned,” he said. “I realized in college that if I wanted financial freedom that I would have to become an expert investor. I researched where investment expertise was concentrated — the hedge fund industry — and targeted my career aspirations there.”
Tresidder had several job offers, but took the lowest-paying job because it had the greatest upside potential, he said. He quickly rose through the ranks and became a partner at his hedge fund firm in a few years. But as his pay increased, he continued to live as he did in college and save 70 percent of his income.
“I then took those savings and invested them according to the investment strategies I developed as a researcher and presto — financial freedom,” Tresidder said. To stay busy and engaged in his retirement, Tresidder blogs about reaching financial independence at Financial Mentor.
Don’t Miss:3 Things People Most People Get Wrong About the FIRE Movement
Akaisha and Billy Kaderli were 36 when they decided they wanted to retire early. Akaisha was running the restaurant the couple owned in Santa Cruz, Calif., and Billy was the vice president of investments with Dean Witter Reynolds. Their relationship was suffering because of their work schedules, so they set a savings goal of $500,000 and invested every penny they could over the next two years. By 1991, they reached their savings goal through investing and the sale of their restaurant and home and retired at the age of 38.
They were able toretire with less than $1 millionat such a young age because they’ve been living outside the U.S. in countries where the cost of living is low. They try to keep their annual spending below $30,000. Because they only withdraw a small percentage of their savings each year, their money has continued to grow and they actually have more now than when they retired. They share their adventures on their blog, Retire Early Lifestyle.
Investing in real estate allowed Dustin Heiner to retire at the age of 37. In 2007, he used his life’s savings to buy his first rental property for cash. “Six months after I bought my first property, I refinanced it and pulled out 80 percent of the value to purchase another rental property,” Heiner said. “Four months after buying that property, I refinanced it and pulled out 80 percent to buy two more properties. After a little over a year, I had four properties that rented for $500 to $550 a month.”
He saved every penny of profit from those properties to buy more. After six years, he had enough passive income from his properties to replace the income from his job. But it took another three years to get the courage to quit. Heiner now has 28 properties that bring in more than $12,000 in rent a month and blogs about real estate investing at Master Passive Income.
Related:How to Get Into Real Estate Investing Now
For years, J.D. Roth sold corrugated packaging — such as shipping boxes — and hated it. He had always wanted to be a writer, so he created a blog about sensible personal finance called Get Rich Slowly. It became so popular and generated enough revenue that Roth was able to quit his day job and write full time. Blogging isa tried-and-true way to boost your income.
Ironically, Roth actually got rich quickly when he sold Get Rich Slowly in 2009 at the age of 40.
“While it’s true that I achieved financial independence through a windfall, I was well on my way even without that event,” Roth said. “If I hadn’t sold the site, the income I had from it would have allowed me to reach the same point within a few years. But I wanted to quit work. I wanted to ‘retire.'”
He didn’t stop working on the site and retire until 2012. But Roth jumped back into the world of work in October 2017 when he bought back Get Rich Slowly, “not because I needed the money, but because I wanted to feel useful, and I wanted something to do that gave me fulfillment,” he said.
Doug Nordman retired from the U.S. Navy’s submarine force in 2002 at the age of 41. Although his military service entitled him to a pension, it was his own savings that allowed him to retire early. “The key factor to our financial independence was a high savings rate,” said Nordman, who is the author of “The Military Guide to Financial Independence and Retirement” and founder of The Military Guide. Seewhat jobs still come with a pension.
Nordman and his wife eliminated wasteful spending to invest at least 40 percent of their income annually in mutual funds between 1982 to 2001. In fact, many months they put more than 50 percent of the income in retirement savings. “We saved and invested for our own financial independence as if I wouldn’t earn a pension,” Nordman said. “The pension is great, but we have enough investments to be financially independent without it.”
When figuring out how to retire early from his job as a software developer, Carl used the 4 percent rule to calculate how much he would need to save to make his dream a reality. The strategy assumes that if you can live off 4 percent of your investments in the first year of retirement, your savings should last 30 years if you continue to withdraw your money at the same rate. He estimated that his expenses would be $40,000 his first year in retirement, so he would need to save $1 million.
Carl, who blogs at 1500days.com and uses only his first name to protect his family’s privacy, already had $586,000 because he had been saving in a 401k since he first started working. To reach $1 million, he and his wife cut their spending and downsized to a smaller house so he could save 60 percent to 70 percent of his income. He reached his savings goal in three years, but didn’t work up the courage to quit until nearly a year later when he was 43. “I wasn’t happy at my job and didn’t need more money, so leaving was the right decision and I’m satisfied with where my life is now,” he said.
Carl’s Story:What It’s Really Like to Retire Early
To retire early, Amy and Tim Rutherford changed their big-spending ways. “We used to be high spenders and cut $6,500 a month out of our budget,” Amy said. One of the biggest expenses they slashed was housing, by downsizing from a 6,000-square-foot home to a less-than-2,000-square-foot townhouse. See whydownsizing can make sense from a financial standpoint.
The couple also saved all of Amy’s income and a portion of Tim’s, which helped them build a big enough nest egg to retire early. Amy retired from a sales position at 46, and Tim left his job selling telecommunications equipment at age 48. Now, they spend a lot of their time traveling and sharing frugal travel tips on their blog, GoWithLess.
John was able to retire at 52 by following a philosophy of earning, saving and investing. “If you do those things well, you can retire,” said John, who only uses his first name to protect his family’s privacy because he shares details about his finances on his blog ESI Money.
John had a high income while he worked. Before he retired, he was earning six figures as the chief marketing officer for a marketing services company. He saved 36 percent of his income bymaximizing 401k contributionsand stashing cash in an individual retirement account and brokerage accounts. The money he saved grew because it was invested in index funds, and he retired with more than $3 million in savings.
John also owns 14 rental units, which provide enough income along with ESI Money and his other blog, Rockstar Finance, to cover his expenses. “We really don’t have to touch our savings at all,” he said.
Click through tolearn the surprising things about early retirement you need to know.
This article originally appeared onGOBankingRates.com:12 People Who Retired Young (and How They Did It) |
'Love Island' bosses deny Lucie Donlan has quit after Joe Garratt booted off show
Lucie Donlan and Joe Garratt have been separated as he left Love Island (Credit: ITV) Love Island producers have shut down rumours that Lucie Donlan has left the villa. Donlan, 21, was heartbroken when Joe Garratt, who she was coupled with, became one of the first contestants to be voted off the ITV2 show, along with Elma Pazar. As sandwich seller Garratt, 22, said goodbye he encouraged Donlan to stay and keep competing in the show. He said: “I’ll wait for her.” Donlan sobbed to Garratt: “ I just don’t know what to do. It’s not going to be the same, it’s just going to be horrible.” And later she wept in the diary room as she confided: “I’m just gutted cause you can clearly see that me and Joe had feelings for each other.” Read more: Joe's controlling 'Love Island' behaviour addressed by Women's Aid Rumours began to circulate on social media that Donlan had quit the show after Garratt left. Has Lucie actually left or is it BS #loveisland — Jake Quickenden (@JakeQuickenden) June 18, 2019 But a spokesperson for the show told Yahoo UK she has not left the villa. Garratt and Donlan’s relationship had sparked upset among viewers as some felt his behaviour was controlling. Garratt had told Donlan he did not like her being friends with Tommy Fury and the other male contestants, and asked her to try and befriend some of the girls. In a post on Garratt’s Instagram page his friends and family defended him, blaming the shows editing for portraying him in a bad light. They wrote: “Speaking on behalf of Joe’s best friends, we acknowledge Joe will come out to some warranted criticism. However, we deem the majority of it to be unfair and non representative of Joe’s true character. The producers have the ability to show someone in a particular light, choosing just 45 mins of footage from 24 hours to tell a certain narrative.” View this post on Instagram A post shared by Joe Garratt (@josephgarratt) on Jun 18, 2019 at 2:00pm PDT Ofcom said it had received 302 complaints about Donlan’s treatment in the villa and domestic abuse charity Women's Aid released a statement warning that possessive behaviour can be an early sign of an abusive relationship. Story continues Read more: Love Island receives almost 800 Ofcom complaints as viewers become concerned over Joe Garratt's treatment of Lucie Donlan Adina Claire, Co-Chief Executive of Women’s Aid, said: “Controlling behaviour is never acceptable, and with Love Island viewers complaining to Ofcom in record numbers about Joe’s possessive behaviour towards Lucie, more people are becoming aware of this and want to challenge it. “Abusive relationships often start off with subtle signs of control, so it’s important that it is recognised at an early stage. Love Island viewers are now very vocal in calling out unhealthy behaviour between couples on the show, and this is a positive development.” |
Quiz: How Well Do You Know Your Supermarket Prices?
When Microsoft co-founder and philanthropist Bill Gates stopped by “The Ellen DeGeneres Show,” the host surprised him with a quiz to see if he could guess the price of some basic grocery items.
And “guess” would be appropriate, because, apparently, being a multi-billionaire means not having to do your own shopping. That said, the results were actually not bad for Gates, who got within a dollar on three of the five items he was quizzed on (with a lot of help from the audience).
But how do you compare with Bill Gates when it comes to knowing the cost of basic items at the supermarket? Are you savvier about what it costs to get bananas, milk, eggs and the rest of a typical grocery cart? Click through to find out.
a)$4.68b)$9.32
There arefew American brands as iconic as Coca-Cola, which can be traced all the way back to Atlanta pharmacist John S. Pemberton in 1886. Today, nearly 2 billion servings are enjoyed worldwide each day. How much does it cost to buy a 12-pack, though?
This is one to keep an eye on, though, asthe recently announced tariff on aluminumcould drive up the cost of canned drinks like cola and beer.
a)$1.48b)$3.15
Kraft’s famous boxed macaroni and cheese burst onto the scene during the Great Depression in 1937. Back then, the fact that you could feed a family of four for just 19 cents made it an instant hit, and it sold 8 million boxes in its first year. Today,Kraft is part of a large multinational corporation. How much does a box cost 80 years later?
It might not be under a quarter anymore, but Kraft’s macaroni and cheese is still a bargain at under $1.50. In fact,the cost of a box has increased slower than the rate of inflation— 19 cents in 1937 is worth $3.36 today. Now the recipe features no artificial flavors, dyes or preservatives.
a)$12.37b)$19.97
Tide Pods are self-contained laundry detergent dispensers that have risen to notoriety status in recent months after a bizarre internet trend challenged people to try and eat them. Spoiler alert: They’re highly toxic and you definitely should not eat them.
In addition to being stupid and leading to a series of poisonings, the Tide Pod Challenge was also, apparently, not cheap. A single bucket of the pods will put you out nearly $20. You canfind the best prices for name-brand laundry detergentat Target and Walmart.
a)$0.25b)$0.49
Bananas were once an exotic import that most Americans couldn’t afford, but since being popularized in the early 20th century, they’ve quickly grown into the most popular fruit in America. So, how much does one banana cost you at the grocery store?
Easy, portable, healthy and best of all cheap, you can get a banana for under a dollar. Just be careful where you’re discarding those peels…
a)$3.99b)$2.69
The United States is the world’s largest producer of cows’ milk, to the tune of over 200 billion pounds a year. So how much does a gallon of vitamin D whole milk put you out in the dairy capital of the world?
Americans drink about 18 gallons of milk per person each year.
a)$2b)$1
The San Francisco Treat has been a staple of American dinners since its introduction in 1958, but how much are families shelling out for a single, 6.9-ounce box of the original chicken flavor?
A single box contains two and a half servings, making this a pretty inexpensive option for a dinner side. There areways to make this cheap food look more impressive, too.
a)$4.53b)$2.67
America’s poultry farmers have 320 million chickens laying 7.67 billion eggs a year. But plentiful as they are, what will it cost you to buy a dozen eggs?
Americans love eggs — a cheap, nutritious source of protein andan easy way to spice up a boring meal. Enough so that they eat an average of 275 of them a year.
a)$3.78b)$1.48
Dental floss might or might not actually do anything for your gum health, but it remains a regular part of many people’s days. But how much are you paying for 55 yards of floss?
This is one where even Ellen could be overpaying. While Ellen had the price at $3.78 a roll, you can get floss for under $1.50.
Learn More:35 Ways to Save Hundreds on Groceries
a)$3.64b)$1
Americans buy more than 2.5 billion boxes of cereal a year, nearly 90 million of which are Cheerios, the most popular cereal brand in the country. So how much does it cost for one 21-ounce box?
Cheerios were invented in 1941 by Lester Borchardt. Thank goodness they changed their name from the original choice: Cheerioats.
a)$3.48b)$2.14
Potato chips are the most popular entrant into the salty snacks category, clocking $7.35 billion in sales in America in 2017. They’rean inspiration to gourmet chefs, too. So what will you have to pay to get a 15.25-ounce bag of Lay’s classics?
PepsiCo subsidiary Lay’s is the most popular chip brand in the country with over $2 billion in sales and nearly 60 percent of the total market share.
a)$25.12b)$16.87
Americans love their beer, spending $37 billion on it last year, a little less than three times as much as they spend on water. But what does it cost to grab a 24-pack of Bud Light, the nation’s most popular brand, in bottles?
Bud Light has been the most popular brand of beer since knocking its sister brand, Budweiser, out of the top spot in 2001. If you want to branch out beyond Budweiser,check out the best craft breweries in every state.
a)$5.74b)$8.98
General Mills subsidiary Totino’s sells the pizza roll, originally invented by Jeno Paulucci as a way to use the egg roll shells he was familiar with from his Chun King egg rolls to make a bite-sized take on the calzone. But what will it cost you to get a bag of 120?
This versatile party snack can be made in the oven, toaster oven or microwave.
a)$1.50b)$2.78
Bread, in some form or another, has been around for at least 30,000 years, and Americans buy more than $30 billion worth of commercial bakery products a year. But how much “dough” do you have to shell out for a single loaf of Nature’s Own Sliced Honey Wheat Bread?
If you’ve ever heard the term “the greatest thing since sliced bread,” that’s a lot more recent. The first mechanized bread slicer was invented by Otto Rohwedder in 1917.
Learn More:20 Uses for Leftover Bread That’ll Save You Some Dough
a)$9.16b)$3.66
Founded in New York City in 1965, the TGI Fridays chain has since expanded to 931 locations across 60 countries, witha robust happy hour menu that changes every day of the week. The restaurant even offers frozen foods available in supermarkets — what will the 8-ounce package of its frozen spinach and artichoke dip run you?
Bill Gates was surprised to discover that the branding didn’t push the price of this higher, but at less than $4, it’s fairly affordable.
a)$4.27b)$8.62
Peanut butter was introduced to the world at the Chicago’s World’s Fair in 1893, and it wasn’t long after that the first references to peanut butter and jelly sandwiches start to appear in cookbooks. So, what will it cost you to get an 18-ounce jar of Smucker’s Strawberry Jelly and a 40-ounce jar of Jif Creamy Peanut Butter?
It’s the peanut butter that’s driving the cost of this classic combo, with the jar of jelly only accounting for $2.84 of the cost.
Click through tolearn more shopping tricks to get the most bang for your buck.
This article originally appeared onGOBankingRates.com:Quiz: How Well Do You Know Your Supermarket Prices? |
Facebook’s Crypto Libra Shouldn’t Become Sovereign Currency, Blasts French Finance Minister
ByCCN Markets: Facebook’sunveiling of Libra, its cryptocurrency project coming in 2020, has caught the attention of many, including the French Finance Minister. Bruno Le Maire,speakingon French Radio, has said that this new cryptocurrency cannot operate as a sovereign currency.
Facebook’s Libra project intends to introduce a digital currency for usage on its platforms. However, this is raising several economic issues. Concerns on its regulation, and the status of this currency, are up for debate with Le Maire giving some stern warnings.
With its reach of over 2.3 billion users, Facebook’s cryptocurrency could well call into question the banks’ control over commercial transactions as well as the role of the state in the banking system.
It is for these reasons that Le Maire has warned that currency remains the product of sovereign states and not private companies.
“That Facebook creates its own currency, a transaction instrument, why not,” Le Mariemused. “In contrast, it is out of the question that it becomes a sovereign currency,” he then warned. |
Does Christian Berner Tech Trade (STO:CBTT B) Deserve A Spot On Your Watchlist?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. But as Warren Buffett has mused, 'If you've been playing poker for half an hour and you still don't know who the patsy is, you're the patsy.' When they buy such story stocks, investors are all too often the patsy.
In contrast to all that, I prefer to spend time on companies likeChristian Berner Tech Trade(STO:CBTT B), which has not only revenues, but also profits. While profit is not necessarily a social good, it's easy to admire a business than can consistently produce it. While a well funded company may sustain losses for years, unless its owners have an endless appetite for subsidizing the customer, it will need to generate a profit eventually, or else breathe its last breath.
Check out our latest analysis for Christian Berner Tech Trade
The market is a voting machine in the short term, but a weighing machine in the long term, so share price follows earnings per share (EPS) eventually. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. As a tree reaches steadily for the sky, Christian Berner Tech Trade's EPS has grown 24% each year, compound, over three years. As a general rule, we'd say that if a company can keep upthatsort of growth, shareholders will be smiling.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. The good news is that Christian Berner Tech Trade is growing revenues, and EBIT margins improved by 3.3 percentage points to 8.7%, over the last year. Ticking those two boxes is a good sign of growth, in my book.
The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image.
Since Christian Berner Tech Trade is no giant, with a market capitalization of kr527m, so you shoulddefinitely check its cash and debtbeforegetting too excited about its prospects.
It makes me feel more secure owning shares in a company if insiders also own shares, thusly more closely aligning our interests. As a result, I'm encouraged by the fact that insiders own Christian Berner Tech Trade shares worth a considerable sum. Indeed, they hold kr151m worth of its stock. That shows significant buy-in, and may indicate conviction in the business strategy. Those holdings account for over 29% of the company; visible skin in the game.
You can't deny that Christian Berner Tech Trade has grown its earnings per share at a very impressive rate. That's attractive. Further, the high level of insider buying impresses me, and suggests that I'm not the only one who appreciates the EPS growth. So this is very likely the kind of business that I like to spend time researching, with a view to discerning its true value. Of course, identifying quality businesses is only half the battle; investors need to know whether the stock is undervalued. So you might want to consider thisfreediscounted cashflow valuationof Christian Berner Tech Trade.
You can invest in any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here isa list of companies with insider buying in the last three months.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Do Insiders Own Lots Of Shares In RAK Petroleum plc (OB:RAKP)?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
The big shareholder groups in RAK Petroleum plc (OB:RAKP) have power over the company. 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 øre4.0b, RAK Petroleum 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 institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about RAKP.
View our latest analysis for RAK Petroleum
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.
We can see that RAK Petroleum does have institutional investors; and they hold 13% of the stock. 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 RAK Petroleum's earnings history, below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in RAK Petroleum. 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. 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 most recent data indicates that insiders own a reasonable proportion of RAK Petroleum plc. Insiders have a øre1.0b stake in this øre4.0b business. This may suggest that the founders still own a lot of shares. You canclick here to see if they have been buying or selling.
The general public -- mostly retail investors -- own 51% of RAK Petroleum . This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.
It seems that Private Companies own 10%, of the RAKP 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.
It's always worth thinking about the different groups who own shares in a company. But to understand RAK Petroleum better, we need to consider many other factors.
I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, backed by strong financial data.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
EU high court rules against Adidas in trademark case
LUXEMBOURG (AP) — A European union high court has ruled against German sports apparel giant Adidas' claim that its famous three stripes, applied in any direction, deserve trade mark protection. The EU's General Court ruled on Wednesday that the company could not prove that the stripes had a distinctive enough character throughout the 28-nation bloc. Adidas said it is disappointed in the ruling and considering its next options. Three years ago, the EU's Intellectual Property Office had struck down the registration of the mark on the grounds it was not distinctive enough throughout the bloc. The court backed the assessment. Adidas insisted specific applications of the stripes were not affected by the ruling. |
Apple explores moving 15-30% of production capacity from China - Nikkei
June 19 (Reuters) - Apple Inc has asked its major suppliers to assess the cost implications of moving 15% to 30% of their production capacity from China to Southeast Asia as it prepares for a restructuring of its supply chain, according to a Nikkei Asian Review report on Wednesday.
Apple's request was a result of the extended Sino-U.S. trade dispute, but a trade resolution will not lead to a change in the company's decision, Nikkei said https://s.nikkei.com/31zCGhw, citing multiple sources.
The iPhone maker has decided that the risks of depending heavily on manufacturing in China are too great and even rising, it said.
Key iPhone assemblers Foxconn, Pegatron Corp , Wistron Corp, major MacBook maker Quanta Computer Inc, iPad maker Compal Electronics Inc , and AirPods makers Inventec Corp, Luxshare-ICT and Goertek have been asked to evaluate options outside of China, Nikkei reported.
The countries being considered include Mexico, India, Vietnam, Indonesia and Malaysia. India and Vietnam are among the favorites for smartphones, Nikkei said, citing sources who did not want to be identified as the discussions are private.
Apple did not immediately respond to a request for comment on the report. (Reporting by Sathvik N in Bengaluru; editing by Gopakumar Warrier) |
3 Mid-Cap Tech Stocks Primed for Gains
This week’s spotlight is Facebook (FB), as the company reveals its new cryptocurrency offering today (June 18, as I write this), and on the US Federal Reserve as the Board’s Federal Open Market Committee will conclude its regular policy meeting tomorrow with a much-anticipated position announcement on interest rates. Facebook’s news has been feeding grist to the rumor mills for nearly a year; the company’s white paper will separate facts from wishful thinking. The Fed has been holding rates steady since December last year; with week’s meeting, market watchers expect some guidance on future cuts.
So, the big news is crowding the spotlights, which can make it difficult to see what the smaller guys are up to. But those smaller companies offer plenty in the way of market action. For investors willing to shoulder a bit of extra risk, the rewards can be compelling. We’ll use theTipRanks Trending Stocks datato look at three companies that Wall Street’s top analysts think are positioned for strong gains.
Lumentum is leading provider of optical and photonic products for datacom, telecom, and commercial lasers. If you’re one of the 900 million iPhone users, then you’re familiar with Lumentum products – the company is a supplier of screen components for the popular smartphone.
It’s prominent place in the tech ecosystem – Lumentum is also part of Huawei’s supply chain – has left the company vulnerable to the ‘China Contagion,’ the fallout from ongoing trade tensions between China and the US. The tech industry is generally is vulnerable to the trade spat, as the US is the world’s largest tech consumer and China is a massive exporter of tech products. Lumentum, with its exposure to both Apple (AAPL) and Huawei, is more vulnerable than most. Between May 14 and May 20, LITE shares lost almost 13% when the trade war flared up again.
The company is not without hope, however. Writing from Goldman Sachs, analystRod Hallhas run the numbers on a series of scenarios for LITE’s future. He took careful note of a “a worst-case earnings scenario that assumes 100% of Huawei related revenues are lost and Apple’s iPhone volumes end up being 20% lower than his below consensus estimates.”
In that scenario, he described the downside as “…likely [to] deliver about $3.27 in FY (to June) EPS which implies a current forward trading PE of 13.2x vs. a recent historical median PE of 12.3x.”
Hall continues, summarizing the case thus: “While acknowledging that a range of outcomes may exist outside our analysis, we highlight that even in our most bearish scenario the implied PE multiple is ~13x at current trading levels. This compares to Lumentum’s median multiple of ~16x since it started trading in 2015… We also flag again that we see our most bearish scenario as unlikely, given iPhone unit weakness is already built into our model. In our note published on May 20 we estimated ~34% of Huawei revenue is replaceable in our central case.”
To put it plainly, Hall sees LITE’s vulnerabilities as known factors, which investors are already seeing and taking into account. His most bearish estimates, also, still show the company maintaining a profit. With that in mind, he gives LITE a ‘Buy’ rating and a $69 price target, suggesting a 39% upside.
Wall Street’s analysts are in general agreement with Hall’s thesis. With a unanimous 15 buy ratings, LITE has a ‘Strong Buy’ from the analyst consensus. Shares trade for $49, so the average price target of $67 gives a 36% upside.
Cloud computing has revolutionized communications and networking technology, along with the software industry. Unified Communications as a Service (UCaaS) brings all three together, routing telephone, video links, and data communications through one server. RingCentral is a leader in the industry, with a reputation for reliability and trustworthiness.
A strong position in a growing field have put RNG on firm footing. Last month, Oppenheimer analystBrian Schwartztook note of the company’s “strong Q1 results, anchored by a record deal size, solid business metrics and higher 2019 growth outlook.” Schwartz added that he is “increasingly confident in the company's ability to grow its subscriptions business at Tier 1 rates, while improving operating margins with scale.” In light of that, he raised his price target on RNG shares by 11%, to $130, indicating an 10% upside potential.
Writing earlier today, June 18, Needham’sRichard Valeragives RNG an even more bullish target of $140. He said that he “…sees the company deriving benefits from the continued shift from premises-based communications to the cloud as well as its strong product and superior execution.” With that foundation, Valera believes “RingCentral remains well positioned to grow its revenue and increase profitability.” His price target suggests an upside of 18%.
RingCentral is another ‘Strong Buy,’ based on an analyst consensus of 9 buys and 1 hold. The average price target is $135; with a share price of $117, that gives an upside of 14%.
Square has rapidly become a leader in online payment processing. The company’s products are a combination of software and small gadgets designed to conduct transactions from any mobile device. Small merchants can use Square’s reader to run charge cards from a smartphone, while businesses can use Square’s Stand to operate an iPad as a cash register. From a customer perspective it’s a clever idea, while for a small business owner it’s a money-saver.
That’s the company’s foundation. Square hasn’t rested on it however; it has been promoting its Cash App for P2P money transfer, and last summer Square’s Cash App surpassed PayPal’s (PYPL) Venmo, its chief competitor, in total downloads. A key factor in the rapid growth of Square Cash is its no-nonsense approach to transactions; where Venmo has been plagued by privacy concerns stemming from its social media newsfeed, Square Cash avoided that pitfall by simply offering quick access to basic financial services.
Nomura analystDan Dolevhas been tracking Square Cash’s performance compared to Venmo, in his coverage of Square, Inc. Dolev notes an increase in Square Cash downloads last month, growing from 2 million in April to 2.2 million in May. According to Dolev’s data, Cash regularly has a monthly download advantage of 400K to 500K over Venmo. He gives SQ shares a ‘Buy’ rating and a $90 price target, based on his read of May’s optimistic data. His price target suggests an upside of 25% to the stock.
Writing from Tigress Financial, five-star analyst Ivan Feinseth also sees strong growth potential in Square’s future. He gives the stock a ‘Buy’ rating, and explains: “The company is increasing its gross payment volumes and deepening its seller relationships to expand its customer service base… Square's ability to grow its ecosystem will continue to drive its growing return on capital and increasing economic profit.” Following his usual habit, Feinseth did not set a specific target price for SQ.
Shares in Square have a ‘Moderate Buy’ from the analyst consensus, based on 13 buys and 9 holds given in the last three months. The upside potential of 18% is derived from a share price of $71 and an average price target of $85.
Learn moreabout which stocks are hot withTipRanks' Trending Stocks tool. This market research tool shows the stocks which have attracted analyst attention in the last 3 days, making it easy to find that companies with the best growth potential. Visit theTrending Stockstool now. |
More on Facebook’s Libra: CEO Daily
Good morning.
There are so many more things to say aboutFacebook’s announcement of Libra, its planned cryptocurrency, yesterday. The company is clearly playing a multidimensional chess game, with business, political and public relations implications in mind.
•Facebook, in need of friends, appears to be trying to bring everyone under its new tent. Corporate members of the “Libra Foundation” contribute $10 million to participate, and 27 have already signed up—a who’s who of finance. David Marcus, the former PayPal executive who is leading the effort, says he hopes to have 100 partners by the time it launches.
• Libra marks an important step for Facebook into the e-commerce space. But it is touting Libra primarily as a move to serve the 1.7 billion people in the world who currently lack financial services—hardly the most profitable market. That didn’t stop Rep. Maxine Waters fromcalling for a “moratorium”on the project so regulators could study it.
• Will the Winkelvii get Zucked again? Libra could be seen as competition for Gemini, the cryptocurrency firm started by Cameron and Tyler Winklevoss, who claimed Zuckerberg stole the idea for Facebook from them in college. On TV Sunday,Cameron W. said: “There’s so much pie to grow, I mean, at this point, we need to be frenemies.”
For the five things you need to know about this landmark Facebook venture,click here. Other news below.
Alan Murray@alansmurrayalan.murray@fortune.com
1. Top NewsTrump vs. PowellPresident Trump asked White House lawyers to see whether he could sack Fed Chair Jerome Powell. The lawyers reportedly told him it would be highly questionable to get rid of Powell without cause, but maybe he could be replaced with a sitting Fed governor. Trump has long been frustrated with the Fed’s interest rate hikes.BloombergCBS and ViacomCBS may try to buy sister company Viacom—from which it split some 13 years ago—according to theWall Street Journal. The report suggests there is as yet no agreement on the price, nor the potential leadership team. This is the companies’ third stab at merger talks in the last few years.WSJTrade TalksThe U.S. and China will be holding more trade talks ahead of a G20 Summit meeting next week between Presidents Trump and Xi. That’s according to Trump, who tweeted that he’d had a “very good telephone conversation” with his counterpart. Talks had broken down last month—and if things don’t get sorted out now, a full-blown trade war is possible.ReutersRenault and NissanThe alliance between Renault and Nissan is falling apart, according to theFinancial Times, which reports that several joint business functions are idling or being shuttered. Now that lynchpin Carlos Ghosn is gone, “the ‘CEO office,’ which oversaw the day-to-day running of the alliance functions and had several senior executives, is being disbanded, while other areas such as light commercial vehicles, sales and marketing, and communications are dwindling and dismissing staff, according to several people.”FT
2. Around the Water CoolerClimate MigrationFormer commerce secretary Penny Pritzker writes forFortunethat commingling the issues of trade and migration alone risks forgetting one of the main causes of migration: climate change. She writes: “Virtually every CEO and business leader I speak with is either working on solutions or willing to do more. Now, our political leaders in both parties must do the same.”FortuneNew York’s New DealNew York’s own Green New Deal has been passed by the state’s senate, introducing the U.S.’s most aggressive clean-energy targets. Expect vast expansions of solar and wind power capacity, and likely incentives to move buildings’ heating systems away from oil and natural gas.BloombergUltra-RichEurope’s richest person has joined Jeff Bezos and Bill Gates in the tiny club of people with a fortune of over $100 billion. Bernard Arnault is chairman of luxury-brand owner LVMH, the company behind the likes of Louis Vuitton, Dom Perignon and Tag Heuer. His fortune equates to more than 3% of the French economy.FortuneJust StripesAdidas has almost certainly lost its European trademark for its three-stripe logo. The EU’s General Court said this morning that the logo simply wasn’t seen as distinct enough in most EU countries. “The mark is not a pattern mark composed of a series of regularly repetitive elements, but an ordinary figurative mark,” the court ruled. Adidas can still appeal to the EU’s highest court, the European Court of Justice.Deutsche WelleThis edition of CEO Daily was edited by David Meyer. Findprevious editions here, andsign up for other Fortune newsletters here. |
Apple explores moving 15-30% of production capacity from China: Nikkei
(Reuters) - Apple Inc has asked its major suppliers to assess the cost implications of moving 15%-30% of their production capacity from China to Southeast Asia as it prepares for a restructuring of its supply chain, according to a Nikkei Asian Review report on Wednesday.
Apple's request was a result of the extended Sino-U.S. trade dispute, but a trade resolution will not lead to a change in the company's decision, Nikkei said, citing multiple sources.
The iPhone maker has decided the risks of depending heavily on manufacturing in China are too great and even rising, it said.
Earlier this month, credit rating agency Fitch said it views Apple, Dell Technologies Inc and HP Inc as potential blacklist candidates if China blacklists U.S. companies in retaliation for restrictions on Huawei.
Key iPhone assemblers Foxconn, Pegatron Corp, Wistron Corp, major MacBook maker Quanta Computer Inc, iPad maker Compal Electronics Inc, and AirPods makers Inventec Corp, Luxshare-ICT and Goertek have been asked to evaluate options outside of China, Nikkei reported.
The countries being considered include Mexico, India, Vietnam, Indonesia and Malaysia. India and Vietnam are among the favorites for smartphones, Nikkei said, citing sources who did not want to be identified as the discussions are private.
Last week, Foxconn said it had enough capacity outside China to meet Apple's demand in the American market if the company needed to adjust its production lines, as U.S. President Donald Trump threatened to slap further $300 billion tariffs on Chinese goods.
Analysts at Wedbush Securities said in a best case scenario Apple would be able to move 5%-7% of its iPhone production likely to India in the next 12 to 18 months.
Given the complexity and logistics involved, brokerage said, it would take at least 2-3 years to move 15% of iPhone production from China to other regions.
"We believe this is all a poker game and Apple will not diversify production out of China overnight and certainly a long-term US/China trade deal is key for Cook & Co to sleep well at night," Wedbush analysts said.
China is a key market for Apple as well as a major production center for its devices. The company got nearly 18% of its total revenue from Greater China in the quarter ended March.
Earlier in June, Trump met with Apple Chief Executive Officer Tim Cook to discuss trade and other hot-button issues facing the tech company as Trump deliberates whether to make good on his threat to hike tariffs on imports from China.
A group of more than 30 people from Apple's capital expense studies team have been negotiating production plans with suppliers and governments over monetary incentives that could be offered to lure Apple manufacturing, the report said.
A deadline has not been set for the suppliers to finalize their business proposals, Nikkei said, adding that it would take at least 18 months to begin production after choosing a location.
Apple and Foxconn did not respond to requests for comment.
(Reporting by Sathvik N in Bengaluru; Additional reporting by Aishwarya Nair and Vibhuti Sharma; editing by Gopakumar Warrier, Rashmi Aich and Shailesh Kuber) |
Block.One Pays $30M for New Blockchain-Powered Social Media Platform’s Domain Name
Eos (EOS) developer Block.one has paid $30 million in cash to purchase a domain name for its newblockchain-basedsocial media, called “Voice.” The development was revealed in a filingpublishedby theUnited StatesSecurities and Exchange Commission (SEC) on June 18.
According to the SEC filing, submitted by enterprise analytics and mobility software provider MicroStrategy, Block.one’s domain name purchase of “voice.com” was enabled by web domain registrar GoDaddy and concluded on May 30, 2019.
In an official statement, Marge Breya — senior executive vice president and chief marketing officer at MicroStrategy — outlined what she believes to be the advantages of the purchase:
“The word ‘voice’ is simple and universally understood. It’s also ubiquitous — as a search term, it returns billions of results on the internet. An ultra-premium domain name like Voice.com can help a company achieve instant brand recognition, ignite a business, and massively accelerate value creation.”
Asreported, Block.one announced the creation of Voice at the beginning of June, claiming that its basis on the EOS blockchain will provide more transparency than traditional social media platforms.
In the wider social media and blockchain space,Facebookhas this weekpublishedthe white paper for its long-awaitedcryptocurrencyand blockchain-based financial infrastructure project, dubbed “libra.”
Soon after publication, the chairwoman of the U.S.Houseof Representatives’ Financial Services Committeerequestedthat Facebook halt development of the token until Congress and regulators have the opportunity to evaluate related issues.
• Time to Chain Up: Is Blockchain About to Change the Gaming Industry?
• KuCoin Lists Binance Coin, Supports Binance Chain Projects
• Italy’s Banks to Use Blockchain to Boost Settlements and Improve Transparency
• Global Banking Giant HSBC Launches Tokenization-Based Receivables System for India |
Did You Miss S.A.L. Steel's (NSE:SALSTEEL) 65% Share Price Gain?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
WhileS.A.L. Steel Limited(NSE:SALSTEEL) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 23% in the last quarter. But over three years, the returns would have left most investors smiling After all, the share price is up a market-beating 65% in that time.
View our latest analysis for S.A.L. Steel
Because S.A.L. Steel is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good 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 S.A.L. Steel saw its revenue grow at 24% per year. That's well above most pre-profit companies. The share price rise of 18% per year throughout that time is nice to see, and given the revenue growth, that gain seems somewhat justified. So now might be the perfect time to put S.A.L. Steel on your radar. If the company is trending towards profitability then it could be very interesting.
You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).
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 S.A.L. Steel had a tough year, with a total loss of 46%, 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. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 0.5% per year over five years. 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. Shareholders might want to examinethis detailed historical graphof past earnings, revenue and cash flow.
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. |
Four suspects expected to be named for downing of MH17 jet
Igor Girkin, Sergey Dubinskiy, Oleg Pulatov and Leonid Karchenko - who have been charged with murder over the downing of MH17. Four people will be prosecuted as a result of an international investigation into the downing of a Malaysian Airlines jet over eastern Ukraine in 2014. On Wednesday it was revealed Igor Gurkin, Sergei Dubinsky, Oleg Pulatov, all Russian nationals while Leonid Karchchenko, of the eastern Ukraine, will be charged with murder. International arrest warrants have been issued for the suspects for the murder of all 298 passengers on board flight MH17 when it was shot down over eastern Ukraine while flying from Amsterdam to Kuala Lumpur . Igor Gurkin, left, and Sergey Dubinskiy, who are both accused of murdering 298 passengers onboard MH17. Oleg Pulatov and Leonid Kharchenko who are both accused of murdering 298 passengers onboard MH17. All of them are believed to be members of Russian-backed separatist groups. Girkin was minister of defence in the Moscow-backed Donetsk people’s Republic (DNR). He was the commander of the DNR when the plane was shot down on 17th July 2014. Part of the fuselage of the downed MH17. Dubinsky served as Girkin’s deputy in the DNR, and Pulatov was Dubinsky’s deputy and Kharchenko was under their command. Dutch prosecutors will request Russia arrests and tries the nationals as it is against Russian law to extradite residents. A trial is set to take place in 2020 and the suspects have been urged to attend. Russian-backed separatists in Ukraine operating during the conflict in the country have been suspected of carrying out the attack, although Vladimir Putin's government has denied any involvement. The accused did not push the button themselves but were responsible for bringing the anti-aircraft system to eastern Ukraine. They could therefore be held criminally liable charged with murdering 298 people, investigators said. Diagram showing the location of the MH17 crash site. Wreckage of flight MH17 is seen at the Gilze-Rijen air base in the Netherlands (Xinhua/Sylvia Lederer via Getty Images) A spokeswoman for Ukraine's foreign ministry said on Tuesday that "the world will hear the names of the first four people suspected of involvement". Kateryna Zelenko said Dutch prosecutors will file the case in a Netherlands court. "The guilt of the four suspects must be proved first and foremost in court," the spokeswoman added. Internet investigation team Bellingcat has already identified individuals who it claims were involved in the attack, who include a military intelligence official who was leading Russian-backed forces in the conflict in the Ukraine. Story continues Members of a joint investigation team present the preliminary results of the criminal investigation into the downing of MH17 (EMMANUEL DUNAND/AFP/Getty Images) International arrest warrants have now been been sent out, with the individuals placed on lists internationally, chief Dutch prosecutor Fred Westerbeke said. All four had been involved in bringing the Buk missile system which shot down the plane from Russia to Ukraine. He said the investigation had found and interrogated witnesses, analysed satellite images, and sifted through phone calls and other data. The area of investigation in eastern Ukraine was still inaccessible to the team, Westerbeke said, making the process difficult. Read more from Yahoo News UK: Torrential rain and thunderstorms lash UK Fifth suspected murder in six days as London violence continues Jeremy Corbyn to back second referendum More than 50 detectives had been involved and several significant new witnesses had come forward, Westerbeke said. Silene Fredriksz, whose son Bryce perished in the tragedy, said some relatives had died without knowing the truth. "I hope the trial starts within one or two years. We all get older... I hope that I will know the truth before I close my eyes." Watch the latest videos from Yahoo UK |
All You Need To Know About Svenska Cellulosa Aktiebolaget SCA (publ)'s (STO:SCA B) Financial Health
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as Svenska Cellulosa Aktiebolaget SCA (publ) (STO:SCA B) with a market-capitalization of kr54b, rarely draw their attention. Despite this, commonly overlooked mid-caps have historically produced better risk-adjusted returns than their small and large-cap counterparts. SCA B’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. Don’t forget that this is a general and concentrated examination of Svenska Cellulosa Aktiebolaget's financial health, so you should conduct further analysisinto SCA B here.
See our latest analysis for Svenska Cellulosa Aktiebolaget
Over the past year, SCA B has ramped up its debt from kr8.3b to kr9.8b , which accounts for long term debt. With this growth in debt, SCA B currently has kr488m remaining in cash and short-term investments , ready to be used for running the business. On top of this, SCA B has produced kr3.6b in operating cash flow in the last twelve months, leading to an operating cash to total debt ratio of 37%, indicating that SCA B’s debt is appropriately covered by operating cash.
Looking at SCA B’s kr8.8b in current liabilities, the company has been able to meet these commitments with a current assets level of kr9.3b, leading to a 1.06x current account ratio. The current ratio is the number you get when you divide current assets by current liabilities. Generally, for Forestry companies, this is a reasonable 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 25%, SCA B's debt level may be seen as prudent. SCA B is not taking on too much debt commitment, which may be constraining for future growth. We can test if SCA B’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 SCA B, the ratio of 72.31x suggests that interest is comfortably covered, which means that debtors may be willing to loan the company more money, giving SCA B ample headroom to grow its debt facilities.
SCA B’s high cash coverage and appropriate debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow. In addition to this, the company exhibits proper management of current assets and upcoming liabilities. Keep in mind I haven't considered other factors such as how SCA B has been performing in the past. I recommend you continue to research Svenska Cellulosa Aktiebolaget to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for SCA B’s future growth? Take a look at ourfree research report of analyst consensusfor SCA B’s outlook.
2. Valuation: What is SCA B 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 SCA B 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. |
How Much is Sterling Tools Limited's (NSE:STERTOOLS) CEO Getting Paid?
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Anil Aggarwal is the CEO of Sterling Tools Limited ( NSE:STERTOOLS ). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels. View our latest analysis for Sterling Tools How Does Anil Aggarwal's Compensation Compare With Similar Sized Companies? According to our data, Sterling Tools Limited has a market capitalization of ₹7.4b, and pays its CEO total annual compensation worth ₹21m. (This figure is for the year to March 2018). While we always look at total compensation first, we note that the salary component is less, at ₹12m. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹1.3m. It would therefore appear that Sterling Tools Limited pays Anil Aggarwal more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous. You can see, below, how CEO compensation at Sterling Tools has changed over time. NSEI:STERTOOLS CEO Compensation, June 19th 2019 Is Sterling Tools Limited Growing? Sterling Tools Limited has increased its earnings per share (EPS) by an average of 14% a year, over the last three years (using a line of best fit). It achieved revenue growth of 12% over the last year. This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts. Story continues Has Sterling Tools Limited Been A Good Investment? Most shareholders would probably be pleased with Sterling Tools Limited for providing a total return of 124% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size. In Summary... We examined the amount Sterling Tools Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group. Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Whatever your view on compensation, you might want to check if insiders are buying or selling Sterling Tools shares (free trial). Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor 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. |
China snub, drought and debt shake finances of Canada's farmers
By Rod Nickel and Kelsey Johnson
WINNIPEG, Manitoba/OTTAWA (Reuters) - For years, the financial stability of Canadian farmers was the envy of their American counterparts, but rising costs, drought and a dispute with China have weakened their bottom lines.
Net incomes plunged last year, and that setback was followed in March by China's halting purchases of canola, Canada's biggest crop. Now farmers are turning to government aid to avert disaster, lenders are extending the term on loans and machinery dealers are seeing declining sales.
Prime Minister Justin Trudeau's Liberals hold only a handful of rural western seats to potentially lose in the October election, but they have also angered eastern dairy farmers for surrendering greater market access in recent trade deals.
Agriculture is not as directly important to Canada's economy as the service sector, for example, said Brett House, Scotiabank's deputy chief economist. But farm spending indirectly underpins other sectors, said Alberta Agriculture Minister Devin Dreeshen.
"Farmers reinvest every dollar they get. (The pullback) reverberates throughout the entire economy," he said.
Shaun Dyrland, who farms near Kyle, Saskatchewan, said conditions are the toughest in about 20 years, forcing the farm to make its first claim from AgriStability, a federal government program that helps farmers weather losses due to poor crops, rising costs or market disruptions.
"Things were running along pretty good and now we’ve had to make some changes just to make ends meet and make the numbers continue to work," he said.
Dyrland, 40, has eliminated two hired positions on his fourth-generation farm and cut chemical and fertilizer purchases.
"It’s definitely reminding me of the late '90s, early 2000s, where we had to really squeeze every penny and make sure every decision was the right one."
Canadian farmers' net income plummeted 21% last year to C$11.6 billion ($8.6 billion) due to soaring debt and labor costs, marking the lowest income level in seven years. Farmers owed a record-high C$106 billion.
Payments from AgriStability have jumped 37% year over year, a spokesman for the federal agriculture department said.
"(Farmers') stress level is extremely high," said Wendy McDonald, an agronomist at Manitoba farm consultancy 360 AG. "They need this crop to do well and it's not off to a great start."
Canadian farmers have fared relatively better under low commodity prices than U.S. growers in recent years due to a low dollar that helped exports and greater crop diversity, said Ryan Riese, national director of agriculture at Royal Bank of Canada. Now amid harder times, interest in buying farmland is tapering off, he said.
In Ottawa, there is still hope that farmers can withstand a short-term decline.
"They had a good number of years with significant increases (before the downturn). I'm still optimistic," said Canadian Agriculture Minister Marie-Claude Bibeau, whose government has increased limits on interest-free farm loans.
But farmers are already making adjustments.
"They're not buying new equipment. They're fixing what they have," said Steve McCabe, executive director of Agricultural Manufacturers of Canada, whose members include Ag Growth International and Buhler Industries.
"Buying is really down from last year."
Farm supplier Nutrien Ltd is "particularly concerned for the financial health of Canadian farmers" who are shut out of China, their best export market, said spokesman Will Tigley.
BANKERS 'HOPING FOR SOFT LANDING'
Lenders are anxiously penciling out farmers' growing risk.
"There is a significant amount of nervousness in both the cattle and cash crop sector at the moment," said Glen Snyder, agri business manager for Bank of Montreal in Saskatchewan, Canada's main canola-growing province.
"I'm hoping for a soft landing, and not a hard one that we experienced in the late 1980s early 90s."
The prospect of soft crop prices and potential for lower yields raises concerns about farmers’ debt service coverage ratio (DSCR) – a metric closely watched by lenders that indicates a farm’s profitability and ability to manage debt, Snyder said.
Even a well-managed farm could see its DSCR slip into a worrisome range this year if crop receipts decline by 10%, a realistic scenario given Saskatchewan's drought, Snyder said.
The drop in net income "is a big deal for sure," said Jean-Philippe Gervais, chief agriculture economist at government lender Farm Credit Canada. "Producers are going to have to be a little bit more careful."
Gervais said some farmers are spreading their debt over longer periods of time.
"I always felt the good times couldn’t roll forever," said Dyrland, the Saskatchewan farmer. "Nobody likes to see it come. But I think in agriculture, it’s bound to happen."
(Reporting by Rod Nickel in Winnipeg, Manitoba and Kelsey Johnson in Ottawa) |
Shell says staff in Iraq safe, operations are normal after rocket attack
DUBAI (Reuters) - Royal Dutch Shell said on Wednesday that all its staff in Iraq are accounted for and its operations in the country are normal, after a rocket struck the site of headquarters of several foreign oil firms near Iraq's southern city of Basra.
"We remain vigilant and continue to monitor the security situation and liaise with local authorities," said a Shell spokesman in a statement to Reuters.
The rocket hit the site of the residential and operations headquarters of several global major oil companies, including U.S. giant ExxonMobil, early on Wednesday, wounding three people, Iraq's military said.
(Reporting by Rania El Gamal; Editing by Toby Chopra) |
What You Should Know About Compagnie Financière de Neufcour S.A.'s (EBR:NEU) Financial Strength
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
While small-cap stocks, such as Compagnie Financière de Neufcour S.A. (EBR:NEU) with its market cap of €4.6m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. Since NEU is loss-making right now, it’s crucial to evaluate the current state of its operations and pathway to profitability. We'll look at some basic checks that can form a snapshot the company’s financial strength. Nevertheless, potential investors would need to take a closer look, and I recommend youdig deeper yourself into NEU here.
NEU has built up its total debt levels in the last twelve months, from €980k to €1.8m , which includes long-term debt. With this rise in debt, NEU's cash and short-term investments stands at €249k to keep the business going. We note it produced negative cash flow over the last twelve months. As the purpose of this article is a high-level overview, I won’t be looking at this today, but you can assess some of NEU’soperating efficiency ratios such as ROA here.
Looking at NEU’s €2.1m in current liabilities, it appears that the company has been able to meet these obligations given the level of current assets of €3.4m, with a current ratio of 1.58x. The current ratio is the number you get when you divide current assets by current liabilities. Usually, for Real Estate companies, this is a suitable ratio as there's enough of a cash buffer without holding too much capital in low return investments.
NEU is a relatively highly levered company with a debt-to-equity of 44%. This is somewhat unusual for small-caps companies, since lenders are often hesitant to provide attractive interest rates to less-established businesses. But since NEU is presently unprofitable, sustainability of its current state of operations becomes a concern. Maintaining a high level of debt, while revenues are still below costs, can be dangerous as liquidity tends to dry up in unexpected downturns.
Although NEU’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. Since there is also no concerns around NEU's liquidity needs, this may be its optimal capital structure for the time being. Keep in mind I haven't considered other factors such as how NEU has been performing in the past. You should continue to research Compagnie Financière de Neufcour to get a more holistic view of the small-cap by looking at:
1. Historical Performance: What has NEU'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.
2. 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. |
Joe Swash shares hilarious image of an exhausted Stacey Solomon
Stacey Solomon hasn't been getting much sleep since the birth of her third child Rex (Instagram/Stacey Solomon) Joe Swash has shared an amusing photo of girlfriend Stacey Solomon sleeping in a rather awkward position alongside their newborn son Rex. Solomon has recently opened up about how she has struggled to get enough sleep since the birth of their son, and Swash was keen to document one of the rare occasions in which she finally managed to nod off. In the photo, an exhausted Solomon, who also has two other children, is seen sleeping next to baby Rex in an awkward position on the sofa, with one leg sprawled over the armrest and a pillow balancing on her head. View this post on Instagram A post shared by Joe Swash (@realjoeswashy) on Jun 18, 2019 at 9:23am PDT Read more: Why Stacey Solomon and Joe Swash chose to name their baby after a dinosaur Swash captioned the image: I promise this photo is 100% NOT set up! This was exactly how I found @staceysolomon when I got back from the gym #welldeserved. Solomon reposted the image, explaining that shes crashed out after taking care of the baby and that the day had been a total write off. View this post on Instagram A post shared by Stacey Solomon (@staceysolomon) on Jun 18, 2019 at 11:03am PDT I needed to sleep so badly today but I get sad when I sleep through the day and I wake up and its nearly night time! she wrote. But its OK tomorrow is a new day and Ill be ready for it. Probably. Maybe. Might actually not be though haha! P.S if you think I believe for one second that that pillow just happened to be there - youre wrong! Ill get you back, right after I get my mind back! Read more: Stacey Solomon admits feeling guilty about having three children with different fathers This comes just a few days after Solomon shared a video on Instagram of her night from hell, as baby Rex needed feeding six times in the night. Last night was hell, she joked, looking blearily-eyed at the camera. How can one baby eat so much, so often? I didnt even have to time to express in between. Help me! Watch the latest videos from Yahoo UK |
HSBC's scrapping of minimum balance fee for Hong Kong clients may prompt rivals to follow as they brace for competition with virtual banks
HSBC is to scrap the minimum balance fee that applies to 3 million customers in Hong Kong in a move likely to be followed by other big lenders as they brace for fierce competition from a wave of virtual banks due to come online later in the year.
The monthly charge of HK$50 for small depositors with a passbook savings account and other basic accounts with a balance below HK$5,000 (US$640), has long been viewed as a penalty on some of the bank's most loyal customers. It was introduced 18 years ago.
HSBC said on Wednesday that from August 1, it will be the first bank in Hong Kong to go back to providing free basic banking services to roughly 3 million retail customers who hold its passbook accounts, statement accounts, personal and advance integrated accounts, and super ease accounts. It will also get rid of associated charges faced by small depositors, like counter transaction fees.
"More than 3 million retail banking customers will benefit from the removal of our below-balance fees, counter transaction fees and annual fees for most our personal savings accounts," said Greg Hingston, HSBC's head of retail banking and wealth management in Hong Kong. "This is a key step in reinforcing HSBC's commitment, as Hong Kong's leading bank, to promoting financial inclusion and making banking easy for customers from all backgrounds."
The fee abolition will also apply to the popular HSBC Advance accounts, which currently charge HK$120 a month if the total deposit and trading volume falls below HK$200,000 (US$25,550).
"HSBC's decision to cancel the minimum balance [fee] is related to the fact that there will be eight new virtual banks set up in Hong Kong in the fourth quarter of this year," said Ben Kwong Man-bun, a director of brokerage KGI Asia. "HSBC needs to act now to persuade its millions of customers to stay on or many of them may opt for joining the virtual banks which do not charge a fee for small depositors."
Hong Kong Monetary Authority (HKMA), the city's de facto central bank, has issued eight virtual bank licences since March. The lenders do not have a branch network, operating purely online.
The virtual banks are barred from charging a minimum balance fee to small depositors, and this is likely to be a selling point to lure customers.
"The competition will be keen when the eight virtual banks start operations. Other traditional banks are likely to follow [HSBC] and make similar moves too," Kwong said. "HSBC's young and tech-savvy customers who get used to getting everything free of charge online would not like to pay the minimum balance fee. Scrapping the minimum fee is a smart move for HSBC to keep its young customers."
Hang Seng Bank, a unit of HSBC, is also considering a plan to scrap its minimum-balance fee, according to a spokesperson.
The move was lauded by the HKMA, as it brings greater convenience and benefit to the broader public, said the monetary authority's spokesperson.
Hong Kong's retail banks had supported a service charter promoted by the HKMA to remove minimum service charges for disadvantaged customers, the spokesperson said.
"Banks should draw up their fees structures in accordance with their own corporate strategies, service models and costs," the spokesperson said. "However, the HKMA has constantly reminded banks to keep in mind the public's expectations and needs in basic banking even while they run their banks based on business principles."
HSBC said in a statement that the fee scrapping was aimed at providing "simpler and cheaper" banking services to meet with "customers' diversified banking needs" at different stages of their lives. An online survey indicates that Hong Kong bank customers use on average five different types of banking products.
The eight newly licensed virtual banks include two joint ventures separately led by the city's two note-issuing banks " Bank of China (Hong Kong) and Standard Chartered Bank.
They also include a joint venture led by China's first online insurer, ZhongAn Online P&C; a Xiaomi-AMTD Group venture called Insight fintech, and the Infinium consortium that includes Tencent Holdings, ICBC (Asia), and Hong Kong Exchanges and Clearing (HKEX).
The other three are home-grown unicorn WeLab; mainland China's second largest life insurer Ping An Insurance's subsidiary Ping An OneConnect, and Ant Financial Services' Ant SME Service.
This article originally appeared in theSouth China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore theSCMP appor visit the SCMP'sFacebookandTwitterpages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved.
Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved. |
Boeing signs $100 mln in services deals at order-light air show
By Eric M. Johnson
LE BOURGET, June 19 (Reuters) - Boeing Co seized on a lull in firm plane orders to sign more than $100 million in contracts for digital services for its newer but fast-growing global unit as the Paris Airshow enters a third day on Wednesday.
Boeing Global Services boss Stan Deal touted agreements from more than 10 global carriers ranging from flight crew planning for U.S. carrier United Airlines to an aircraft health monitoring deal with Slovak charter airline Go2Sky.
The deals reflect a two-year-old push by the world's largest planemaker into the higher-margin services business that includes aircraft parts and maintenance and analytics which Deal aims to grow to $50 billion in revenue in a decade from its 2018 revenue of around $17 billion.
The deal follows Monday's announcement that Boeing will manage and maintain a global exchange inventory of parts for Airbus' A320 and A320neo single-aisle aircraft for British Airways, the first such agreement by the U.S. planemaker to support rival Airbus aircraft.
British Airways also signed a deal for three landing gear exchanges for its Boeing 777 widebody fleet, while Boeing's subsidiary Jeppesen will provide United Airlines with analytics services to help the carrier optimize crew planning operations through its entire fleet.
Boeing has reorganised its sales operations as part of a push into services for civil and defence aircraft designed to increase the number of deals and boost profits as it will make it easier for Boeing to sell high-margin services at the same time as it sells planes.
Both Boeing and rival Airbus are muscling deeper into the higher-margin market for repairs, maintenance and analytics services in a push that has rattled the aerospace supply chain. The push comes as airlines try to keep a lid on costs by planning jet purchases and long-term operations together.
Airbus has set a goal of tripling services revenues from its commercial aircraft business to $10 billion within seven years and sharply reducing the number of times its jets are stranded on the ground for technical reasons, Reuters has reported.
Boeing's Deal told reporters on Wednesday that Boeing continued to search for acquisitions after buying parts distributor KLX Inc for $4.25 billion, including about $1 billion of net debt, its largest deal since merging with McDonnell Douglas in 1997.
Earlier on Wednesday Boeing signed a digital services agreement with Latvia's Air Baltic. (Reporting by Eric M. Johnson in Seattle; Editing by Mark Potter) |
Introducing Equatorial Palm Oil (LON:PAL), The Stock That Tanked 92%
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
We're definitely into long term investing, but some companies are simply bad investments over any time frame. We don't wish catastrophic capital loss on anyone. Spare a thought for those who heldEquatorial Palm Oil plc(LON:PAL) for five whole years - as the share price tanked 92%. And we doubt long term believers are the only worried holders, since the stock price has declined 61% over the last twelve months. Unfortunately the share price momentum is still quite negative, with prices down 35% in thirty days.
While a drop like that is definitely a body blow, money isn't as important as health and happiness.
View our latest analysis for Equatorial Palm Oil
We don't think Equatorial Palm Oil's revenue of US$171,000 is enough to establish significant demand. 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 Equatorial Palm Oil 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 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 Equatorial Palm Oil investors have already had a taste of the bitterness stocks like this can leave in the mouth.
Equatorial Palm Oil had cash in excess of all liabilities of US$635k when it last reported (March 2019). While that's nothing to panic about, there is some possibility the company will raise more capital, especially if profits are not imminent. We'd venture that shareholders are concerned about the need for more capital, because the share price has dropped 39% per year, over 5 years. You can click on the image below to see (in greater detail) how Equatorial Palm Oil's cash levels have changed over time.
It can be extremely risky to invest in a company that doesn't even have revenue. There's no way to know its value easily. What if insiders are ditching the stock hand over fist? I would feel more nervous about the company if that were so. It costs nothing but a moment of your time tosee if we are picking up on any insider selling.
While the broader market gained around 2.2% in the last year, Equatorial Palm Oil shareholders lost 61%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 39% per year over five years. 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. Shareholders might want to examinethis detailed historical graphof past earnings, revenue and cash flow.
Of courseEquatorial Palm Oil 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 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. |
'Safe' bonds must go together with fiscal integration- Italy debt chief
LONDON, June 19 (Reuters) - A common European sovereign bond would make sense if it goes hand in hand with fiscal integration across the euro bloc, Italy's debt management chief, Davide Iacovoni, said on Wednesday.
Disintegration forces across Europe should provide renewed impetus on the project of a common bond, Iacovoni said, referring to joint debt issuance via common euro zone bonds.
But he does not expect this to happen very soon.
"On the new asset we need to be very careful if we don't have a common fiscal capacity," he said. "I don't think we are very near in terms of the process but I am optimistic," he added.
By pooling the bloc's risks such common bonds would offer investors safer securities than those from most individual nations, analysts say. But richer countries have opposed the measure, fearing they will end up footing the bill.
Speaking of Italy's high debt levels, Iacovoni said it had stabilised and that the question now was about how to reduce it.
"We have achieved a stabilisation of debt to GDP after several years of increase, of course we are struggling to bring it down," he said, adding that the government is trying to put in place measurese to reduce it and to relaunch growth.
Iacovoni added that he was not very concerned about volatility of Italian government bonds because Italy has a very large set of investors and a primary dealership model that supports the secondary market. (Reporting by Virginia Furness and Abhinav Ramnarayan; editing by Sujata Rao) |
TABLE-Global LNG export terminals awaiting approval in 2019
LONDON, June 19 (Reuters) - U.S. energy company Anadarko has approved the construction of a $20 billion gas liquefaction and export terminal in Mozambique, reflecting a global boom in LNG trade. Its announcement late on Tuesday underscored the industry's conviction that global LNG demand, particularly in Asia, will rise sharply despite a slump in prices this year. But the race is on for LNG producers to approve their own projects before the market is deemed oversupplied. A total of 60 million tonnes a year (mtpa) in liquefaction capacity, including Anadarko's 12.88 mtpa, has now been given the go-ahead since October 2018, when Royal Dutch Shell signed off on its 14 mtpa LNG Canada project. That triggered a long-awaited wave of production project approvals. Projects approved since 2018 Country/Project Companies FID date Start-up Capacity date mtpa Mozambique LNG Anadarko June 2019 2024 12.88 Sabine Pass 6 (U.S.) Cheniere June 2019 2025 4.5 Calcasieu Pass (U.S.) Venture Global March 2019 2022 10.00 Golden Pass (U.S.) Exxon, QP Feb 2019 2024 16.00 Tortue (Senegal) BP, Kosmos Dec 2018 2022 2.5 LNG Canada Shell Oct 2018 2024 14.00 Corpus Christi 3 (U.S.) Cheniere May 2018 2021 5.0 Projects slated for approval Country/Project Companies FID Start-up Capacity date date mtpa RUSSIA Sakhalin 2 Train 3 Gazprom, Total 2019 2021 5.0 Arctic LNG-2 Novatek, Total Q2 2019 2023 19.8 Sakhalin 1 Rosneft, Exxon 2019 2025 6.0 UNITED STATES Jordan Cove Pembina 2019 2025 7.8 Freeport Train 4 Freeport Q2 2019 2023 5.1 Driftwood Tellurian H1 2019 2023 27.6 Magnolia LNG Ltd Q4 2019 2023 10.0 Lake Charles Shell 2019 2023 16.45 Port Arthur Sempra 2019 2023 11.0 Rio Grande NextDecade Q3 2019 2023 27.0 Plaquemines Venture Global H2 2019 2023 20.0 Brownsville Annova LNG Q4 2019 2024 7.0 Cameron Parish Commonwealth LNG 2024 9.0 CANADA Goldboro Pieridae Energy Q4 2019 2024 10.0 Woodfibre RGE Group Q2 2019 2023 2.1 MEXICO Costa Azul 1 Sempra 2019 2023 2.4 MIDDLE EAST & AFRICA Nigeria NLNG 2018 8.0 Mozambique Exxon 2019 2024 15.2 Qatar QP 2019 2024 32.0 (Reporting by Sabina Zawadzki; Editing by Jan Harvey) |
If You Had Bought Mercal Inmuebles Socimi (BME:YMEI) Stock Three Years Ago, You'd Be Sitting On A 15% Loss, Today
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market index fund. But the risk of stock picking is that you will likely buy under-performing companies. Unfortunately, that's been the case for longer termMercal Inmuebles Socimi, S.A.(BME:YMEI) shareholders, since the share price is down 15% in the last three years, falling well short of the market return of around 21%. Unhappily, the share price slid 2.5% in the last week.
Check out our latest analysis for Mercal Inmuebles Socimi
In his essayThe Superinvestors of Graham-and-DoddsvilleWarren Buffett described how share prices do not always rationally reflect the value of a business. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
During the three years that the share price fell, Mercal Inmuebles Socimi's earnings per share (EPS) dropped by 0.4% each year. This reduction in EPS is slower than the 5.3% annual reduction in the share price. So it seems the market was too confident about the business, in the past.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
Thisfreeinteractive report on Mercal Inmuebles Socimi'searnings, revenue and cash flowis a great place to start, if you want to investigate the stock further.
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). 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. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Mercal Inmuebles Socimi, it has a TSR of -2.2% for the last 3 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted thetotalshareholder return.
Mercal Inmuebles Socimi shareholders may not have made money over the last year, but their total loss of 0.5% ( including dividends) isn't as bad as the market loss of around 0.5%. Furthermore, the stock lost shareholders 0.7% per year over three years, so the one-year return was better in a relative sense. It is of course not much comfort to know that the losses have slowed. Shareholders will be hoping for a proper turnaround, no doubt. Keeping this in mind, a solid next step might be to take a look at Mercal Inmuebles Socimi's dividend track record. Thisfreeinteractive graphis a great place to start.
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 ES 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. |
Swedbank elects former Swedish PM Persson as chairman
STOCKHOLM, June 19 (Reuters) - Swedbank elected former Swedish Prime Minister Goran Persson as chairman on Wednesday as the bank scrambles to regain confidence from both markets and the public after a major money-laundering scandal.
Persson, a Social Democrat, served as prime minister for a decade until 2006. He has since then served as board member in several companies, including bank Alandsbanken. He was voted in at an extraordinary general meeting.
Swedbank, Sweden's oldest retail bank, parted ways with its chief executive and chairman earlier this year after being drawn into a money laundering scandal at Danske Bank, and is being investigated in the United States, Sweden and the Baltics.
The most recent allegations, reported by Swedish state TV in March, said that Swedbank processed gross transactions of up to 20 billion euros ($22.4 billion) a year from high-risk, mostly Russian non-resident clients, through Estonia from 2010 to 2016. (Reporting by Johan Ahlander; editing by Johannes Hellstrom) |
Do Institutions Own Inmobiliaria Park Rose Iberoamericana SOCIMI, S.A. (BME:YPARK) Shares?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
A look at the shareholders of Inmobiliaria Park Rose Iberoamericana SOCIMI, S.A. (BME:YPARK) 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.'
Inmobiliaria Park Rose Iberoamericana SOCIMI is not a large company by global standards. It has a market capitalization of €11m, 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 are not on the share registry. Let's delve deeper into each type of owner, to discover more about YPARK.
View our latest analysis for Inmobiliaria Park Rose Iberoamericana SOCIMI
Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.
There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to fund under management, so the institition does not bother to look closely at the company. Alternatively, there might be something about the company that has kept institutional investors away. Inmobiliaria Park Rose Iberoamericana SOCIMI's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.
Inmobiliaria Park Rose Iberoamericana SOCIMI is not owned by hedge funds. 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. 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 most recent data indicates that insiders own a reasonable proportion of Inmobiliaria Park Rose Iberoamericana SOCIMI, S.A.. Insiders own €1.5m worth of shares in the €11m company. This may suggest that the founders still own a lot of shares. You canclick here to see if they have been buying or selling.
With a 23% ownership, the general public have some degree of sway over YPARK. 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.
We can see that Private Companies own 63%, of the shares on issue. 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 findhistoric revenue and earnings in thisdetailed graph.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, backed by strong financial data.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
UK weather: Rain and thunderstorms batter UK
Parts of Britain have been battered by thunder and lightning overnight as unsettled weather continues to cause disruption . Homes were left without power and roads were flooded in parts of the South East, while Lenham in Kent saw 42mm of rain in the space of just one hour. The Met Office said the deluge in the village, which lies between Maidstone and Ashford, came between 11pm on Tuesday and midnight. Spectacular lightning was captured in the skies over the region, while Kent Police's Roads Policing Unit tweeted that the lightning was "very active”. Homes were left without power and roads were flooded in parts of the South East (SWNS) Brits suffered flooding and power cuts after thunder and lightning hit the country overnight (PA) Eastbourne in East Sussex is said to have seen about 1,000 lightning strikes in an hour. Sussex Roads Policing team described it as a "spectacular electrical storm" over East Sussex but warned about "significant flooding" on the A27 and A259 between Lewes and Hastings, adding: "Power cuts also knowing traffic lights out: please take care.” Ben Williams, 31, who filmed the storm in Ticehurst, East Sussex, said: "It was full-on, pretty much constant flashes of lightning and thunder at its peak. I've not seen a storm like last nights in the UK before.” Read more from Yahoo News UK: Four suspects expected to be named for downing of MH17 jet Jeremy Corbyn to change Brexit position Tory leadership candidates clash over Brexit Susan Pilcher said: "It was possibly the most amazing storm I have ever watched. I had seen lightning in the back garden and decided I had to go to Dungeness to watch it as it is so open there. "I stayed from about 11pm to 1.30am with sheet lightning and fork lightning chasing across the sky and heavy, heavy rain at times. Very exciting.” Wendy Howard, from Canterbury, said: "My husband and I were standing at my front porch listening as the rumbles got louder and the flashes got more frequent. Hi! Thunderstorms in the SE to clear. Further thunderstorms will be a daytime risk in central and eastern England. Occasionally heavy rain over other parts of England and Wales will move eastwards, easing later. Sunshine and showers elsewhere: https://t.co/cQSfu1VDbo ^Jennifer pic.twitter.com/S0hIexr9Cj — Met Office (@metoffice) June 19, 2019 A lightning storm over Dungeness, Kent, brought moody skies (PA/Susan Pilcher) "I don't know anyone affected by flooding, everything is great.” Story continues A yellow weather warning is in place for thunderstorms across much of the south-east of England, including East Anglia, until 9pm on Wednesday. Forecasters say further rain, hail and lightning could bring potential disruption to travel. "We've had some heavy, thundery showers overnight," said meteorologist Alex Burkill. "There has been some flooding near Eastbourne and some power cuts. Lightning seen from a house in Canterbury (PA/Wendy Howard) Images and video on social media captured spectacular lightning in the skies over the south east (PA/Susan Pilcher) "We are going to see some further heavy showers heading towards Kent, and south-east parts of the UK will see some heavy thunderstorms through the morning, while isolated ones could develop this afternoon.” The flood-hit community of Wainfleet in Lincolnshire is within the Met Office's warning area, but forecasters are optimistic the town will escape the worst of the storms on Wednesday. "A few showers are possible there, but it doesn't look like it's going to bear the brunt of the heavy downpours," Mr Burkill added. The town has already seen around 225 Olympic-sized swimming pools' worth of water pumped out to sea following severe flooding last week. Eastbourne in East Sussex is said to have seen about 1,000 lightning strikes in an hour (PA/Susan Pilcher) Thunder and lightning lashed parts of the country overnight, including in Southend-on-Sea, Essex (SWNS) Around 350 tonnes of sand and ballast were dropped in the area by RAF Chinook helicopters over the weekend. On Tuesday, Lincolnshire Police said almost 600 homes remained evacuated as the clean-up operation continued. Other parts of the country will see a much brighter day on Wednesday, with sunshine expected in Scotland and Northern Ireland. The rest of England and Wales could see a damp start, before things brighten up later in the day. The weekend is also set to bring some respite from the recent downpours, with temperatures rising as high as 23C (73F). |
Legislators Endorse Virtual Asset Summit Convened in Response to Coming FATF Crypto Rules
Global legislators have voiced their support for a forthcoming summit in Osaka, Japan, which will be devoted to virtual asset service providers’ (VASPs) response to a new set of recommendations set forward by the Financial Action Task Force (FATF).Cointelegraph Japanreported the news on June 19.
According to the report, the V20 summit will take place alongside the G20 Leaders Summit in Osaka on June 28 and 29, and will convene G20 representatives, national blockchain associations, VASPs and legislators from numerous jurisdictions.
Those in attendance will use the summit to explore the evolution of possible technical solutions and prospective impact of the FATF’sforthcoming proposalon how participant nations should exercise oversight for the digital assets sector.
As previously reported, the FATF is an intergovernmental organization established on the initiative of the G7 to promote the implementation of legal, regulatory and operational measures to fight money laundering.
The organization has developed a series of recommendations recognized as the international standard for combating money laundering and the financing of illicit activities, which — while not legally binding — are in use by around 200 countries globally.
As Cointelegraph Japan notes, responses to the forthcoming proposed standards have been divided. The report cites a statement from ex-FATF President, Roger Wilkins AO and former secretary Australian Department of the Attorney General, who has recognized that:
“What we are hearing from industry is that the new rules may have the opposite effect to which they were intended, effectively forcing crypto transactions off the controlled platforms, which are currently one of the best avenues we have in gaining visibility over financial crime.”
The V20’s host nation, Japan, is notable for having recognized the crypto industry’s move to self-regulate, as Cointelegraph haspreviouslyreported.
Japanese politician Naokazu Takemoto expressed his view that VASPs recognize “the importance of clear regulation in preventing financial crime,” adding that he welcomes the opportunity for the country to share its experience with the international community.
Asreported, Jesse Spiro, head of policy at major blockchain intelligence firm Chainalysis, has recently said he expects the FATF rules to broadly reflect thedraft guidancealready issued in March of this year.
• G20 Finance Leaders Ask Global Regulators to Consider Multilateral Response to Crypto
• Live Streaming Startup YouNow Files SEC Filing for Compliant Token Earning for App Users
• Russia Will Not Legalize Facebook’s Cryptocurrency, Official Says
• Russia to Adopt Crypto Legislation Within Two Weeks: Deputy Finance Minister |
RATIONAL Aktiengesellschaft (ETR:RAA) Is Yielding 1.6% - But Is It A Buy?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Could RATIONAL Aktiengesellschaft (ETR:RAA) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the 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.
With a 1.6% yield and a nine-year payment history, investors probably think RATIONAL looks like a reliable dividend stock. A 1.6% yield is not inspiring, but the longer payment history has some appeal. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below.
Click the interactive chart for our full dividend analysis
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. In the last year, RATIONAL paid out 66% of its profit as dividends. This is a fairly normal payout ratio among most businesses. It allows a higher dividend to be paid to shareholders, but does limit the capital retained in the business - which could be good or bad.
Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. The company paid out 77% of its free cash flow as dividends last year, which is adequate, but reduces the wriggle room in the event of a downturn. It's positive to see that RATIONAL'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.
Consider gettingour latest analysis on RATIONAL's financial position here.
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. Looking at the last decade of data, we can see that RATIONAL paid its first dividend at least nine years ago. The company has been paying a stable dividend for a while now, which is great. However we'd prefer to see consistency for a few more years before giving it our full seal of approval. During the past nine-year period, the first annual payment was €3.50 in 2010, compared to €9.50 last year. This works out to be a compound annual growth rate (CAGR) of approximately 12% a year over that time.
We're not overly excited about the relatively short history of dividend payments, however the dividend is growing at a nice rate and we might take a closer look.
Examining whether the dividend is affordable and stable is important. However, it's also important to assess if earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see RATIONAL has grown its earnings per share at 11% per annum over the past five years. Earnings per share have been growing rapidly, but given that it is paying out more than half of its earnings as dividends, we wonder how RATIONAL will keep funding its growth projects in the future.
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. RATIONAL's is paying out more than half its income as dividends, but at least the dividend is covered by both reported earnings and cashflow. Next, earnings growth has been good, but unfortunately the company has not been paying dividends as long as we'd like. In sum, we find it hard to get excited about RATIONAL 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.
Earnings growth generally bodes well for the future value of company dividend payments. See if the 8 RATIONAL analysts we track are forecasting continued growth with ourfreereport on analyst estimates for the company.
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. |
Bette Midler mocks Trumps in new poem
Bette Midler is once again taking on the Trumps. (Photo: ANGELA WEISS/AFP/Getty Images) While Donald Trump jetted off to Florida to officially kick off his 2020 re-election bid , one of his biggest celebrity critics was busy penning a little ditty. A couple of weeks after the president accused her of being a “washed-up psycho” on Twitter, Bette Midler is firing back with a poem that mocks both Trump and the first lady. In a tweet posted Tuesday night, the Grammy winner takes aim at the president’s mental health and cracks that the Slovenia-born Melania Trump tries to “flee” from her husband’s, ahem, romantic overtures. The Trumps kicked off the 2020 campaign in Orlando, Fla. on Tuesday night. (Photo: MANDEL NGAN/AFP/Getty Images) There once was a girl from Slovenia Who now lives right on Pennsylvinia To the East Room she’ll flee From her husband’s wee wee While he plays with his own schizophrenia — Bette Midler (@BetteMidler) June 18, 2019 Midler’s poem soon captured Twitter’s attention, with her fans cheering on her jabs at Trump. Damn, I love you lady! Surviving 45 because of you. — Jody Karow (@jodyk88) June 19, 2019 You have the prize for the poet laureate love this well done 👍🏻 this made me laugh so hard xxx you are the queen 👑 — Lisa (@sisabatter) June 18, 2019 Poetry. Pure poetry. — Elli 🍎 (@elibt) June 18, 2019 Beautiful and elegant. You have quite the poetic talent, Ms. Midler. Such genius should be spread before the world. Definitely retweeting this!😂😂😂🔥🔥🔥 — Noneofyourbusiness (@HaleQueen34) June 19, 2019 Trump supporters weren’t so pleased. You need help, ALOT of help. And some very strong drugs. — Loren (@LorenSethC) June 19, 2019 Great stuff! Can’t wait to see what you come up with over the next FIVE YEARS! 😂😂 — Dorian M. Starkey (@DorianMStarkey) June 19, 2019 Holy cow. Really? Someone get this woman a career so she'll stop tweeting. And it's "Pennsylvania." #BetteMidler https://t.co/hIev9DRYdx — Lori Johnston (@TheRealLoriJ) June 18, 2019 Midler has been a longtime foil to Trump , who unleashed his own attack on her in early June. Presidential candidate Joe Biden later called Trump’s tweets about Midler, sent while the president was commemorating the 75th anniversary of D-Day, “astounding.” Story continues Read more from Yahoo Entertainment: Michelle Obama hit by a horrified Benedict Cumberbatch during dodgeball game O.J. Simpson denies fathering Khloé Kardashian: 'She's not mine' Congressman has heated exchange with Chris Hayes over calls for Trump impeachment Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle's newsletter. |
UPDATE 1-Boeing signs $100 mln in services deals at order-light air show
(Adds comments from Deal)
By Eric M. Johnson
LE BOURGET, June 19 (Reuters) - Boeing Co seized on a lull in firm orders for passenger jets to sign more than $100 million in contracts for digital services for its newer but fast-growing global unit as the Paris Airshow enters a third day on Wednesday.
Boeing Global Services boss Stan Deal touted agreements with more than 10 global carriers ranging a multi-year deal with U.S-based Delta Air Lines for navigation services and a ten-year one with Hong Kong flag carrier Cathay Pacific Group for crew rostering.
The deals reflect a two-year-old push by the world's largest planemaker into the higher-margin services business that includes aircraft parts and maintenance and analytics which Deal aims to grow to $50 billion in revenue in a decade from its 2018 revenue of around $17 billion.
Future aircraft like the 777X twin-jet and a potential new mid-sized aircraft known at Boeing as NMA are central to advancing the "challenging goal that we aspire to," Deal said, referring to the $50 billion.
"The marquee part of it (777X) is to have the services better integrated in the airplane at the point of delivery," Deal said.
The deals follow Monday's announcement that Boeing will manage and maintain a global exchange inventory of parts for Airbus' A320 and A320neo single-aisle aircraft for British Airways, the first such agreement by the U.S. planemaker to support rival Airbus aircraft.
British Airways also signed a deal for three landing gear exchanges for its Boeing 777 widebody fleet, while Boeing's subsidiary Jeppesen will provide United Airlines with analytics services to help the carrier optimize crew planning operations through its entire fleet.
BIG SALES PUSH
Boeing has also reorganised its sales operations as part of a push into services for civil and defence aircraft designed to increase the number of deals and boost profits as it will make it easier for Boeing to sell high-margin services at the same time as it sells planes.
Both Boeing and rival Airbus are muscling deeper into the higher-margin market for repairs, maintenance and analytics services in a push that has rattled the aerospace supply chain. The push comes as airlines try to keep a lid on costs by planning jet purchases and long-term operations together.
Airbus has set a goal of tripling services revenues from its commercial aircraft business to $10 billion within seven years and sharply reducing the number of times its jets are stranded on the ground for technical reasons, Reuters has reported.
Deal said Boeing continued to search for acquisitions after buying parts distributor KLX Inc for $4.25 billion, including about $1 billion of net debt, its largest deal since merging with McDonnell Douglas in 1997.
Other deals Boeing announced Wednesday were for flight crew planning for U.S. carrier United Airlines, an aircraft health monitoring deal with Slovak charter airline Go2Sky, and a digital services agreement with Latvia's Air Baltic. (Reporting by Eric M. Johnson in Seattle; Editing by Mark Potter) |
Apple Wants Suppliers to Mull Major Shift From China: Nikkei
(Bloomberg) -- Terms of Trade is a coming daily newsletter that untangles a world embroiled in trade wars. Sign up here.
Apple Inc. has asked its largest suppliers to consider the costs of shifting 15% to 30% of its output from China to Southeast Asia in a dramatic shake-up of its production chain, the Nikkei reported.
The U.S. tech giant asked “major suppliers” to evaluate the feasibility of such a migration, the newspaper cited multiple sources as saying. Those included iPhone assemblers Foxconn Technology Group, Pegatron Corp. and Wistron Corp., MacBook maker Quanta Computer Inc., iPad maker Compal Electronics Inc. and AirPod makers Inventec Corp., Luxshare-ICT and GoerTek Inc., Nikkei cited them as saying.
China is a crucial cog in Apple’s business, the origin of most of its iPhones and iPads as well as its largest international market. But President Donald Trump has threatened Beijing with new tariffs on about $300 billion worth of Chinese goods, an act that would escalate tensions while levying a punitive tax on Apple’s most profitable product. Company spokeswoman Wei Gu didn’t respond to a request for comment.
Two major Apple suppliers pushed back against the Nikkei report. The U.S. company has not asked for cost estimates for shifting production out of the world’s No. 2 economy, although suppliers are running the numbers on their own given the trade dispute, said one person familiar with the matter, asking not to be identified discussing internal deliberations. Another supplier said it too had not gotten such a request from Apple and that the Cupertino, California-based company had resisted a proposed production shift to Southeast Asia.
Apple does have a backup plan if the U.S.-China trade war gets out of hand: Primary manufacturing partner Hon Hai Precision Industry Co. has said it has enough capacity to make all U.S.-bound iPhones outside of China if necessary, Bloomberg News reported last week.
The Taiwanese contract manufacturer now makes most of the smartphones in the Chinese mainland and is the country’s largest private employer. Hon Hai, known also as Foxconn, has said Apple has not given instructions to move production but it is capable of moving lines elsewhere according to customers’ needs.
Apple hasn’t set a deadline for the suppliers to finalize their business proposals, but is working together with them to consider alternative locations, the Nikkei said. Any move would be a long-term process, it cited its sources as saying.
Beyond Apple’s partners, the army of Taiwanese companies that make most of the world’s electronics are reconsidering a reliance on the world’s second-largest economy as Washington-Beijing tensions simmer and massive tariffs threaten to wipe out their margins. That in turn is threatening a well-oiled, decades-old supply chain.
Taiwan’s largest corporations form a crucial link in the global tech industry, assembling devices from sprawling Chinese production bases that the likes of HP Inc. and Dell then slap their labels on. That may start to change if tariffs escalate, an outcome now in the balance as Washington and Beijing spar over a trade deal.
Apple is an outsized figure in that negotiation. The high-end iPhone, which accounted for more than 60% of the company’s 2018 revenue, drives millions of jobs across China as well as a plethora of different industries from retail to electronics. The country is also a major consumer market in its own right, yielding nearly 20% of last year’s revenue -- weakness there pushed Apple to cut its sales forecast in January.
“Twenty-five percent of our production capacity is outside of China and we can help Apple respond to its needs in the U.S. market,” Hon Hai board nominee and semiconductor division chief Young Liu told an investor briefing in Taipei last week. “We have enough capacity to meet Apple’s demand.”
(Updates with a source’s comments from the second parapraph.)
To contact the reporter on this story: Debby Wu in Taipei at dwu278@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. |
Some Paramount Resources (TSE:POU) Shareholders Have Taken A Painful 90% Share Price Drop
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
We're definitely into long term investing, but some companies are simply bad investments over any time frame. We really hate to see fellow investors lose their hard-earned money. Anyone who heldParamount Resources Ltd.(TSE:POU) for five years would be nursing their metaphorical wounds since the share price dropped 90% in that time. And some of the more recent buyers are probably worried, too, with the stock falling 57% in the last year. Unfortunately the share price momentum is still quite negative, with prices down 29% in thirty days.
While a drop like that is definitely a body blow, money isn't as important as health and happiness.
View our latest analysis for Paramount Resources
Given that Paramount Resources didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Over five years, Paramount Resources grew its revenue at 26% per year. That's better than most loss-making companies. So it's not at all clear to us why the share price sunk 36% throughout that time. You'd have to assume the market is worried that profits won't come soon enough. While there might be an opportunity here, you'd want to take a close look at the 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.
We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. Thisfreereport showing analyst forecastsshould help you form a view on Paramount Resources
Investors in Paramount Resources had a tough year, with a total loss of 57%, against a market gain of about 1.4%. 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 36% 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. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought.You can find out about the insider purchases of Paramount Resources by clicking this link.
Paramount Resources is not the only stock that insiders are buying. For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Here's Why We Think Zoetis (NYSE:ZTS) Is Well Worth Watching
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. And in their study titledWho Falls Prey to the Wolf of Wall Street?'Leuz et. al. found that it is 'quite common' for investors to lose money by buying into 'pump and dump' schemes.
If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested inZoetis(NYSE:ZTS). While profit is not necessarily a social good, it's easy to admire a business than can consistently produce it. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed.
See our latest analysis for Zoetis
If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow. That means EPS growth is considered a real positive by most successful long-term investors. Who among us would not applaud Zoetis's stratospheric annual EPS growth of 56%, compound, over the last three years? While that sort of growth rate isn't sustainable for long, it certainly catches my attention; like a glint in the eye of my lover.
I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats). On the one hand, Zoetis's EBIT margins fell over the last year, but on the other hand, revenue grew. So it seems the future my hold further growth, especially if EBIT margins can stabilize.
You can take a look at the company's revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers.
In investing, as in life, the future matters more than the past. So why not check out thisfreeinteractive visualization of Zoetis'sforecastprofits?
We would not expect to see insiders owning a large percentage of a US$54b company like Zoetis. But we are reassured by the fact they have invested in the company. To be specific, they have US$47m worth of shares. That's a lot of money, and no small incentive to work hard. Despite being just 0.09% of the company, the value of that investment is enough to show insiders have plenty riding on the venture.
Zoetis's earnings have taken off like any random crypto-currency did, back in 2017. That sort of growth is nothing short of eye-catching, and the large investment held by insiders certainly brightens my view of the company. The hope is, of course, that the strong growth marks a fundamental improvement in the business economics. So to my mind Zoetis is worth putting on your watchlist; after all, shareholders do well when the market underestimates fast growing companies. Of course, just because Zoetis is growing does not mean it is undervalued. If you're wondering about the valuation, check outthis gauge of its price-to-earnings ratio, as compared to its industry.
Although Zoetis certainly looks good to me, I would like it more if insiders were buying up shares. If you like to see insider buying, too, then thisfreelist of growing companies that insiders are buying, could be exactly what you're looking for.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Money 2.0 Stuff: $LIT
I am suffering from Facebook Fatigue Syndrome, as, I assume, are you. But I am also conscious that Mark Zuckerburg, an avid reader of this column I hear, would be disappointed if I did not take the opportunity to share a few opinions on the Libra launch, and I really do not wish to disappoint Mark. The way things are looking, my future access to the global financial system may intimately depend on not disappointing Mark. This one’s for you, Mark.
Why didn’t they call it the Face Mark, F-Mark for short?
Ok.
Libra will be backed by a basket of assets composed of currencies and short-dated government bonds but managed by a consortium of corporates.
Join Genesis nowand continue reading,Money 2.0 Stuff: $LIT! |
Should I Pay Off My Credit Cards or Student Loans?
You might think the answer is obvious, but it'smore complicated than it seems.
Image source: Getty Images
Let's say you have $50,000 in student loan debt and $5,000 in credit card debt. If you get a big tax refund this year, which one should you put the extra money towards?
The short answer is that credit card debt should typically be your top priority, but as with most personal finance topics, there's no one-size-fits-all answer. If you find yourself in the fortunate position of having extra cash to use toward debt repayment, here's a rundown of what you should consider.
Many financial planners, myself included, divide debts into two main baskets: good debts and bad debts. I'd even go so far as to break it into three tiers: great, good, and bad.
Greatdebts refers to debts that are relatively cheap (low-interest) and are used to acquire things that are likely to increase in value over time. Think mortgages: Not only is mortgage debt generally low-interest compared with other types of debt, but it allows you to buy an appreciating asset -- a home. In fact, mortgages are such a useful form of debt that many financial planners advise clients to use a mortgage when buying a home even if they can afford to pay cash for the purchase. With their low interest rates and long repayment terms, mortgages give you the flexibility to put your available cash to productive uses such as investing for retirement.
Gooddebts have two main characteristics: They are relatively low-interest and allow you to acquire an asset that is useful but unlikely to gain value. An auto loan at a reasonable interest rate is an example of a potentially good debt, because it allows you to buy a car, which gets you to and from work. I'd also putstudent loandebt into this category. So long as you complete your degree, you'll have an asset that increases your earnings power for the rest of your life.
Baddebts have high interest rates, are not used to acquire a useful asset, or both. Credit card debt is the prime example. The average credit card APR in the U.S. is about 18% right now -- roughlyfour timesthe average mortgage rate.
The point is that when you have extra cash to pay down debt, it's typically a good idea to start with the "bad debt" category. That's why a credit card balance should typically be your first priority.
Perhaps the most obvious consideration in deciding which debt to pay off first is the interest rate you're paying on each.
In other words, if your student loans carry about 6% interest, and you have credit card debt at a 24% APR, deciding where to funnel your extra money should be a no-brainer. As a general rule, it's a smart idea to start with your highest-interest debts and work your way down.
For example, let's say you have a mortgage at 4% interest, an auto loan at 7.5%, student loans at 6%, and a small credit card balance at 18%. In this case, any money you have for additional debt repayment (after making each loan's minimum payment, of course) should first be used to extinguish your credit card debt. If that's done, and you still want to use your additional money to pay down debt, your auto loan could be the smart way to go, as that form of borrowing is more expensive to you than either of the others on a dollar-for-dollar basis.
Where it gets a bit less clear is when you have promotional APR deals with your credit cards. If you have $5,000 in credit card debt, but your account has apromotional 0% APRfor the next 18 months, it can be a little easier to justify paying more towards your student loans. These situations should be evaluated on a case-by-case basis, but the general rule is thatif and only ifyou will be able to pay the credit card debt off before the higher interest rate kicks in, it's fine to go ahead and use your extra cash for other forms of debt repayment like student loans.
Another important thing to mention is the effect of different types of debt on your credit score. There are two main types of debt you can have: revolving debt and installment debt.
Credit card debt is an example of revolving debt. Revolving debt, in plain English, is a credit line that you can choose to use or not use and that doesn't have a set repayment term. On the other hand, student loans are a form of installment debt -- that is, you make a certain monthly payment and your loan will be fully repaid in a certain number of months. (Note: With income-driven repayment and forgiveness programs, student loans are a bit more complex than most other types of installment loans, but they're still in the same general category.)
When it comes to your credit score, your debts are included in the "amounts you owe" category, which makes up 30% of yourFICO® Score. This includes information such as your credit card balances relative to your limits and your installment loan balances relative to your original principal.
All other things being equal, installment debts are typically looked at more favorably by the FICO formula than revolving debts. In other words, a $10,000 student loan that you still owe $9,900 on will look better for scoring purposes than a $10,000 credit card that's almost maxed out.
By prioritizing credit card repayment, not only could you end up saving yourself lots of money on interest, but you could potentially boost your credit score faster as well.
As a final thought, if you anticipate qualifying for student loan forgiveness in any form, it's generally not a good idea to pay your loans down any faster than you're required to. To name the most common examples of this:
• If you have Federal Direct Loans and work for 10 years in a public service occupation while making payments on your loans, you may qualify for Public Service Loan Forgiveness, or PSLF.
• If you teach for five consecutive school years in a low-income school, you can potentially get up to $17,500 of your student loans forgiven.
• If you are repaying your loans via an income-driven repayment plan like Pay As You Earn or Income-Based Repayment, any remaining balance is automatically forgiven after 20-25 years of payments, depending on your repayment plan and type of loan.
The bottom line is that inmostcases, paying off credit card debt is a better financial move thanpaying extra towards student loans. However, as with most financial questions, there's no perfect answer here. For example, maybe you have low or even no interest on your credit card debt and are on track to pay it off in full before the promotional period runs out.
That said, in most cases, it's difficult to justify paying down your student loans any faster than you have to if you have outstanding credit card debt.
The Motley Fool owns and recommends MasterCard and Visa, and recommends American Express. We’re firm believers in the Golden Rule. If we wouldn’t recommend an offer to a close family member, we wouldn’t recommend it on The Ascent either. Our number one goal is helping people find the best offers to improve their finances. That is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team. |
China's Geely selects Swedish software firm as driverless car supplier
By Esha Vaish
STOCKHOLM, June 19 (Reuters) - China's Geely has picked Zenuity, a joint venture between its Volvo car marque and Swedish technology group Veoneer , as its preferred supplier for assisted and self driving software.
Regulatory and technological challenges as well as soaring development costs mean carmakers have delayed forecasts for the mass adoption of self-driving cars and the Geely deal is a welcome boost for Zenuity.
It said on Wednesday that the deal would encompass Geely's range of car brands, which include Geely Auto, performance brand Polestar, subscription-based electric carmaker Lynk & Co and British sports car maker Lotus.
Sweden's Veoneer said earlier this year it was conducting a review and seeking new efficiency measures at Zenuity, as well as raising cash to shore up its working capital.
Zenuity, whose customers include Volvo and Geely Auto, employs more than 600 people and in January won an approval to begin hands-free testing of its software for self-driving Volvos on Swedish highways.
It is competing with larger rivals in self-driving technology, where U.S. companies are leading the way, with Google's Waymo last year winning the first approval to test cars without safety drivers on Californian roads.
Gothenburg-based Zenuity was formed in 2017 by Volvo, which Geely bought from Ford in 2010, and Autoliv, the former parent of Veoneer which then made a 1.1 billion Swedish crown ($115 million) capital injection in the venture. ($1 = 9.5422 Swedish crowns) (Reporting by Esha Vaish in Stockholm; Editing by Johannes Hellstrom and Alexander Smith) |
Look into Lockheed
What do tariffs, Mexico, Europe and the defense industry have in common? asksJohn Markman, a leading growth stock expert and editor ofStrategic Advantage.
Any agreement between the U.S. and Mexico to avert new tariffs bolsters the president’s case for weaponizing tariffs. And the strategy is likely headed to Europe, to the benefit of the Pentagon contractors.
Long before the 2016 presidential election, candidate Trump promised if elected, he would make the Europeans pay their fair share for North American Treaty Alliance defense spending.
More from Jon Markman:T-Mobile targets Millennials with BankMobile
He stepped up that rhetoric May 2017, when he met with NATO country members in Brussels. The president’s assertion, although rough around the edges, is basically true.
NATO defense ministers set a guideline in 2006 for member countries to spend 2% of their gross domestic product on defense each year. The nonbinding marker came at a time when the U.S. was spending heavily to fund the Iraq and Afghanistan wars.
When Russia annexed Crimea in 2014, NATO leaders gave the guideline more teeth. Heads of state were required to endorse an agreement to move toward the 2% goal by 2024.
Only 5 of the 28 member countries meet that goal today: the U.S., Greece, Britain, Estonia and Poland.
As with Mexico and border security, the President is likely to threaten the Europeans with new tariffs to get NATO countries to step up their defense spending.
It’s a move that was foreshadowed in August 2018 when the President told supporters at a West Virginia rally that he would slap a 25% tax on every car that comes into the U.S. from the European Union.
The President believes tariffs are an effective weapon to force countries to succumb to his demands. Managers in the aerospace and defense sector got the message long ago. They could see better times ahead and the obvious advantages of scale.
PriceWaterhouseCoopers, a leading global accounting and consulting firm, found mergers and acquisitions inside the sector reached $72 billion in 2017, besting the previous high set in 2015.
United Technologies(UTX) andRaytheon(RTN) are in merger talks. The $160 billion union would refocus the companies on aerospace.Teaming with Raytheon would be a boon for UTX shareholders.
Bringing its Pratt & Whitney jet engine business to Raytheon -- a partner in the F-35 combat jet project and a missile and avionics maker -- is a natural fit with plenty of synergies. It’s also the type of project that would ultimately benefit if the White House manages to get NATO countries to increase defense spending.
Lockheed Martin(LMT) is another way for investors to get ready. In addition to its lead position in F-35, the Maryland company is at the vanguard of 3D printing, big data, space engineering and other technologies important to NATO allies.
See also:AES: A Utility at an Unwarranted Discount
As the world marvels at tiny satellites and reusable, autonomous rockets, Lockheed engineers are busy focusing beyond boosters. They want to put a satellite factory in space. And it’s not as far-fetched as it seems.
Lockheed 3D printed parts in 2016 for Nasa’s Juno Jupiter orbiter. Two years later, another satellite commissioned by the U.S. Air Force was designed and built using a 3D printing technique called Laser Powder Bed Fusion.
A bed of aluminum powder is laid precisely into place by a robotic arm. A laser guided by a digital file then melts the powder to form the custom part. The process reduces production cycles, and costs. 3D printing satellites in space would negate the need for expensive rocket launches.
It’s the same ingenuity Lockheed engineers are using to tackle cybersecurity. For decades they have been collecting, analyzing and using data to catch state-sponsored hackers. In the new digital era, this skill is more in demand than ever.
Meanwhile, its defense business remains robust. The company was awarded a $1.8 billion contract by the U.S. Air Force June 7, for the development of the Lightning II, a variation of the F-35 fighter jet.
Sales shot 7.6% higher in 2018, to a record $53.7 billion. Profits ballooned 167% to $5 billion. The 5 year average for return on invested capital is a staggering 31%.
Lockheed shares have been on fire this year, rising 35.7%. The strength has moved the stock to 14.3x forward earnings, and 1.7x sales. The market capitalization is now $100 billion. While this is strong, the best is yet to come, especially if the administration continues to push NATO countries to increase defense spending.
Investors should use consider using any weakness in the months ahead to add new long-term Lockheed positions. Based on sales growth and internal momentum alone, shares could trade to $460 in two years, representing a return of 30% from current levels at $356.10.
More From MoneyShow.com:
• Perry's Picks for an Energy Portfolio
• A 6-Stock "What, Me Worry" Portfolio
• JM Smucker: Pet Food to Peanut Butter
• Iconic Brands Boost Kraft Heinz |
The 2020 Mustang Shelby GT500 Makes 760 HP and 625 Lb-Ft of Torque
Photo credit: DW Burnett/Puppyknuckles From Road & Track Remember when well-meaning gearheads were convinced that emissions, fuel economy, and OBD regulations were going to kill performance cars? Go wake up your favorite baby boomer and hit 'em with this: The 2020 Ford Mustang Shelby GT500 makes 760 horsepower and 625 lb-ft of torque. Put a tombstone on the '60s, the real horsepower wars are right freakin' now. Ford announced the stats for the new top-spec Mustang bright and early this morning. We've been hearing small news updates about the '20 GT500 for awhile now, but horsepower and torque are some of the last details to come out. Way back in January , Ford Performance manager Jim Owens told us, "our engineering men and women are actually working on the horsepower up until the time we have to finally certify it. We're going to say it's over 700. It's not 701. They're gonna push up until the absolute end to get the most horsepower that we can out of it." Clearly, they got well over 700. The GT500 out-horses the 755-hp Corvette ZR1, our 2019 Performance Car of the Year , though the Chevy's 715 lb-ft of torque way out-flex the Mustang's 625. That's likely down to displacement: The top-shelf 'Vette makes due with 6.2 liters and a blower, Ford's supercharged V-8 displaces a full liter less. We still don't have performance numbers, though Ford has hinted plenty about what the GT500 could be capable of. The automaker promises a mid-three-second 0-60 time, and Owens told us the new Shelby will be "the fastest Mustang we've produced, left and right," hinting at skidpad and road-course domination. Oh, and a sub-11-second quarter-mile, just for fun. And in case you're wondering, this will be the most powerful Ford ever produced -stomping the previous GT500's 662 horses as well as the Ford GT's 627. When 600-plus horses seems paltry, you know something wild is going on in the car industry. Story continues Want to hear what the GT500's four-mode exhaust sounds like ? Learn all the drivetrain and chassis tuning that went into this monster ? Figure out why on earth it's limited to a mere 180 mph top speed ? Click on those links to find the answers you seek. ('You Might Also Like',) 16 of the Most Interesting Engine Swaps We've Ever Seen See 70 Years of the Greatest Ferraris Ever Built These Are the 14 Best New Cars for Less Than $45,000 |
Slack IPO? Not Quite, But the Stock Market Is Rolling Out Its Welcome Mat Over Recent Tech Listings
After asluggish spring, technology companies braving stock offerings in the public market are finding a warmer reception this month. The biggest test will come later this week, when Slack Technologies is expected to start trading through a direct offering.
Slack’s chat and collaboration platform has become a workplace tool in 600,000 organizations, 95,000 of which are paying customers. The company will list its shares Thursday on the New York Stock Exchange under the ticker WORK. Late Wednesday, the NYSE setSlack’s stock reference price, which may help determine where it starts trading, at $26 a share, valuing the company around $15.6 billion.
Like Spotify, Slack will list its shares through the unusual route of a direct offering, bypassing the traditional IPO process, which involves hiring a team of investment banks as underwriters.
But Slack is likely to be helped by a trio of companies that staged their own IPOs last week, only to see their stocks surge in the subsequent days. CrowdStrike, a cloud-security company thatwent publicon June 12, is trading 123% above its $34 a share offering price. Freelance-marketplace Fiverr and pet-supplies e-tailer Chewy also debuted last week, with their stocks having risen 53% and 60%, respectively, from their offering prices.
That success comes in contrast to the reception of long-awaited IPOs of Uber, Lyft, and Pinterest, which held out from going public for years and then underwhelmed once they hit the open market, where demand from small investors is typically a key factor in whether a newly listed stock rises or stumbles out the gate.
“People have been talking about Uber and Lyft going public for years—and when they finally go public, it becomes a fairly anticlimactic outcome,” says Duncan Rolph, a managing partner at Miracle Mile Advisors. “A lot of these newer companies like Chewy and Slack have a narrower focus, a business model that can be summed up in a couple of sentences, and a fresh storyline.”
It’s not uncommon for the stocks of newly listed companies to surge in the first days of trading, before drifting down the the following weeks and months. Whether engineered by underwriters to draw in retail investors or underpriced by companies to ensure a smooth listing, IPO candidates are often willing toleave money on the table.Such pops, however, can also whet the appetite among institutional investors for later offerings, which may be good news for Slack.
Slack was valued at $7.1 billion when it last raised a private round of funding in August 2018. Its revenue in the most recent quarter grew by 67% year-over-year to $135 million, while its net loss grew to $32 million from $25 million. At around $17 billion, Slack would bevalued similarlyto to Zoom and PagerDuty, two enterprise-cloud companies that went public in April 2019, according to private-capital data firm PitchBook. Zoom is now trading 173% above its offering price, while PagerDuty is 130% higher.
One uncertainty around Slack’s debut is its end run around the traditional IPO process, which can involve underwriting fees of 6% or 7% but can help ensure a smoother listing. As Scott Kupor of Andreessen Horowitz (a Slack investor)toldFortunethis month, household-name tech companies like Spotify and Slack are the rare companies that can pull off a direct offering because many investors in the secondary markets are already familiar with their financials and valuation. Spotify went public in April 2018 and is currently trading at a modest 13% above its $132 a share offering price.
Should Slack’s direct offering go off without a major hitch, it could help pave the way for other tech IPOs before the traditional late-summer lull in the underwriting market. According to IPO Scoop, another12 tech companiesare in the listing pipeline, the fourth most active industry behind health care, financials, and consumer goods. None have the brand-name allure of Slack or Uber, but could benefit from the welcoming mood among investors right now.
Despite those good vibes, the IPO market in general has so far been quieter in 2019. So far,66 companiesin all industries have priced IPOs on U.S. exchanges this year, according to Renaissance Capital, a 20% decline from the same time a year ago. In total, 95 companies have filed for offerings this year, down 5% from a year ago. And yet overall their aftermarket performance has been strong. A stock index of newly public companies maintained by Renaissance is up 36%, more than double the rise in the S&P 500 Index.
Tech offerings may still see a banner year in 2019, simply because the companies going public areraising larger rounds. Once they hit the markets, though, investors remain more confident in companies that can convince investors they can keep growing while they push for profitability. Unlike Uber and Lyft, which have lost money as they struggle to draw in consumers, companies in the enterprise space are doing a better job of winning the confidence of investors in the long term.
That trend bodes well for Slack. “This market is hungry for good stories, and investors are paying up for growth that has a reasonable path to profitability,” Rolph says. “Slack is very popular and it’s growing pretty quickly, with a fairly targeted focus to replace email, which provides for a good story. Their execution so far suggests they may be able to close the gap in terms of losses.”
—Does the SEC’s ICO lawsuit against Kikgo too far?
—Howcord-cutting is driving big changesacross the media landscape
—Andreessen Horowitz’s Scott Kupordemystifies the VC funding process
—Tobreak up Facebook, here’s where the government might start
—Listen to our new audio briefing,Fortune500 Daily
FollowFortuneon Flipboardto stay up-to-date on the latest news and analysis. |
UK's shame: 8 million people in working households in relative poverty
The higher housing costs for low-earning households has contributed to higher relative poverty levels. Photo: Getty Eight million people in the UK who live in working households are in relative poverty, according to a new report from the Institute for Fiscal Studies (IFS). The proportion of Brits in working households living in relative poverty has jumped by 40% since 1994, the report says. Higher housing costs for low-earning households contributed significantly to the increase, the IFS said on Wednesday, noting higher private and social rents and lower rates of home ownership. The research, which was funded by the Joseph Rowntree Foundation, found that a growth in housing costs has forced an additional one million working people into poverty. Overall, some 18% of people living in working households do so in relative poverty. Relative poverty is defined as the proportion of people whose annual household income is lower than 60% of the median income in a given year. At the same time, the report has found that the average income of a pensioner has surged in the past 25 years, something that explains why average incomes have increased even as more working-age families live in relative poverty. As a result of lower income and increased housing costs, around eight million people living in low-income households were in relative poverty by 2017. An increase in the number of single parents at work has also contributed to the rise. Xiaowei Xu, an economist at the IFS, noted that the jump in the number of working single parents was nonetheless “a positive trend.” Even though they may be living in relative poverty, they are likely to be better off than if they were not working. Campbell Robb, the CEO of the Joseph Rowntree Foundation, said that the report made it clear that “increasing employment isn’t always a reliable route to better living standards.” “High housing costs, low pay and insecure hours are holding many people back despite more people moving into work,” he said. Tom Waters, another economist at the IFS, noted, however, that rates of material deprivation — which measures whether households feel unable to afford basic items such as keeping the home warm — “have clearly declined” across all areas of the income spectrum. A government spokesperson said that tackling poverty was a key focus area, and that it wanted to ensure “that work pays and there is a strong safety net for people who need it.” They pointed to the increase in the national living wage and its decision to raise the personal tax allowance, which it says will mean more than 1.7 million people of the lowest paid people will not have to pay income tax. |
UK inflation fall eases prospect of imminent rate hike
LONDON (AP) — Inflation in Britain dipped in May as transport costs returned to normal following an Easter-related boost, official figures showed Wednesday, likely easing the pressure on the Bank of England to raise interest rates this summer. The Office for National Statistics said Wednesday that consumer prices were up 2% in the year to May, compared with 2.1% the previous month. It highlighted a sharp decline in transport-related inflation. The fall means inflation is back at the Bank of England's target of 2% and cements market expectations that the Bank of England won't raise interest rates on Thursday. In recent weeks, policymakers have signaled that they are inclined to look past Brexit-related economic uncertainties and raise interest rates again — in contrast to the U.S. Federal Reserve and the European Central Bank, which have pointed to rat cuts. Bank of England rate-setters have voiced concerns that a lack of spare capacity in the economy — it's still growing, with unemployment at 45-year lows — and wage increases will stoke inflation. However, with oil prices falling sharply in recent weeks, economists think inflation will fall further in coming months. As a result, few in the markets expect the central bank to increase its main interest rate from the current 0.75% on Thursday or even at its subsequent meeting in August. The bank thinks wage pressures are likely to continue to build due to skills shortages and, as such, the Monetary Policy Committee's interest rate statement on Thursday is expected to warn about the risks of inflation. "Policymakers have been keen to highlight that they believe market expectations of interest rates are too low, and it's possible we see more explicit references to this in either tomorrow's statement or accompanying minutes," said James Smith, developed markets economist at ING. When rates move — up or down — will largely depend on what happens on the Brexit front. Britain is due to leave the European Union on Oct. 31 and some of the Conservative Party candidates running to replace Prime Minister Theresa May have said they are prepared to leave on that date with no deal with the EU. Others have indicated they are prepared to back a delay. Story continues As a result, there are big uncertainties surrounding the economic outlook and the path of interest rates. Even Brexit supporters say a 'no-deal' Brexit will lead to "economic disruption." Most economists think it would cause a deep recession as Britain's relationship with its most important partner is seriously impacted, through tariffs and other disruption to trade. Inflation is also widely tipped to rise sharply because of tariffs on EU imports and because the pound would likely fall, further pushing up the cost of imports. As such, Bank of England Governor Mark Carney has warned that interest rates could go either way in the event of a 'no-deal' Brexit. If Britain reaches a Brexit deal that smooths out its exit or Brexit is abandoned, then interest rates would be more likely to rise. But even then, the case may not be as clear-cut as it is now. "The other major central banks are already looking down — not up," said Stefan Koopman, senior market economist at Rabobank International. "The global economy hit a real soft patch, and whilst we may see a recovery, we're unlikely to see a return to the buoyant growth rates of 2017-early 2018." |
Lloyds CEO Antonio Horta-Osorio's pay defended: He's a 'winner'
Lloyds Banking Group chief executive, Antonio Horta-Osorio, listens to a speech during the Lord Mayor's Banquet at Guildhall, 2016. Photo: Carl Court/Getty Images A senior Lloyds ( LLOY.L ) executive has defended the pay package of the bank’s CEO by saying he is a “winner” who has “charisma.” Stuart Sinclair told MPs on the Work and Pensions Committee on Wednesday: “People like a winner. When I go out to see people who are on £22(000), £30,000, £40,000, they see Antonio as a winner.” Sinclair is an independent director at Lloyds and chair of the bank’s remuneration committee, which decides pay policy at the bank. He was responding to a question from Labour MP Frank Field about whether Lloyds Bank staff resent Lloyds CEO Antonio Horta-Osorio’s multimillion pound pay package. “Thank goodness for British taxpayers, he [Antonio Horta-Osorio] did, through his effort with others, pull this bank back from the brink,” Sinclair told the committee. “There’s a charisma around Antonio, which actually means a lot of people say, good luck to him, he works incredibly hard and I don’t resent the money.” Field said staff had contacted his committee to express frustration with the pay gap between CEO and front-line staff at Lloyds. Sinclair said he regularly spoke to staff and had not picked up on any disquiet. Horta-Osorio, who joined Lloyds at CEO in 2011, had a fixed salary of £2.8m in 2018 but took home £6.2m last year when bonus and share awards are included. The Lloyds CEO has come under pressure from MPs in recent months over what they see as excessive pension awards. Horta-Osorio received 33% of his base salary, £419,000, as a cash payment in lieu of pension last year. This is out of line with the vast majority of Lloyds staff who get 13% of their salary contributed to their pensions. Investment Association (IA) guidelines state that pension contributions for staff and executives should be aligned. The IA has also criticised Lloyds for failing to heed its guidelines that total pension contributions for CEOs should be capped at 25%. Defending the arrangement, Horta-Osorio said on Wednesday: “2011, when I joined the bank, the pension contribution was really not seen as it is seen today, it was seen as part of a total fixed package. The package was approved by the government and what really mattered was the total fixed package.” Story continues Field, who chairs the Work and Pension Committee, accused Horta-Osorio of greed for demanding such a large pay package. The Lloyds CEO replied that it “is very difficult to accept the word greed that you used.” “My total compensation is absolutely in-line with other major bank chief executives,” Horta-Osorio told the committee, pointing out that his pay was lower than that of HSBC’s CEO. “That is the market value for bank chief executives,” Horta-Osorio said. “That doesn’t mean at all that we should not, and we are, be mindful of reducing the pay gap, which I think should mostly be done by increasing the pay of lower paid staff because that’s what most affects their living conditions.” Both Horta-Osorio and Sinclair stressed that Lloyds was reviewing its remuneration policies and would present a new 3-year plan to investors next year. ———— Oscar Williams-Grut covers banking, fintech, and finance for Yahoo Finance UK. Follow him on Twitter at @OscarWGrut . Read more: Facebook's Libra could spark 'mass adoption' of crypto Usain Bolt wants to launch electric scooters in London The 20 best CEOs in Britain, as ranked by their staff What to expect from Bank of England's interest rate decision Hong Kong protests may hit luxury brands like Burberry and Hermes Startup bank Monzo heads to US as monthly sign-ups hit 250,000 |
Why Citizens, Inc.'s (NYSE:CIA) CEO Pay Matters To You
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Geoff Kolander has been the CEO of Citizens, Inc. ( NYSE:CIA ) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels. See our latest analysis for Citizens How Does Geoff Kolander's Compensation Compare With Similar Sized Companies? At the time of writing our data says that Citizens, Inc. has a market cap of US$353m, and is paying total annual CEO compensation of US$2.0m. (This number is for the twelve months until December 2018). Notably, that's an increase of 60% over the year before. We think total compensation is more important but we note that the CEO salary is lower, at US$700k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.8m. So Geoff Kolander is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance. You can see, below, how CEO compensation at Citizens has changed over time. NYSE:CIA CEO Compensation, June 19th 2019 Is Citizens, Inc. Growing? Citizens, Inc. has reduced its earnings per share by an average of 74% a year, over the last three years (measured with a line of best fit). Revenue was pretty flat on last year. Sadly for shareholders, earnings per share are actually down, over three years. And the flat revenue is seriously uninspiring. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow. Story continues Has Citizens, Inc. Been A Good Investment? With a three year total loss of 13%, Citizens, Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously. In Summary... Remuneration for Geoff Kolander is close enough to the median pay for a CEO of a similar sized company . The company isn't growing EPS, and shareholder returns have been disappointing. So shareholders might not feel great about the fact that CEO pay increased on last year. Few would argue that it's wise for the company to pay any more, before returns improve. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Citizens (free visualization of insider trades). Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor 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. |
Do Insiders Own Shares In Cocrystal Pharma, Inc. (NASDAQ:COCP)?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
A look at the shareholders of Cocrystal Pharma, Inc. (NASDAQ:COCP) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.'
With a market capitalization of US$70m, Cocrystal Pharma is a small cap stock, so it might not be well known by many institutional investors. In the chart below below, we can see that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about COCP.
View our latest analysis for Cocrystal Pharma
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.
Cocrystal Pharma already has institutions on the share registry. Indeed, they own 15% 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. 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 Cocrystal Pharma's earnings history, below. Of course, the future is what really matters.
Cocrystal Pharma is not owned by hedge funds. There is some analyst coverage of the stock, but it could still become more well known, with time.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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.
Our information suggests that insiders maintain a significant holding in Cocrystal Pharma, Inc.. Insiders have a US$26m stake in this US$70m business. This may suggest that the founders still own a lot of shares. You canclick here to see if they have been buying or selling.
With a 27% ownership, the general public have some degree of sway over COCP. 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.
We can see that Private Companies own 12%, of the shares on issue. 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.
We can see that public companies hold 8.3%, of the COCP shares on issue. We can't be certain, but this is quite possible this is a strategic stake. The businesses may be similar, or work together.
It's always worth thinking about the different groups who own shares in a company. But to understand Cocrystal Pharma better, we need to consider many other factors.
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.
But ultimatelyit is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look atthis free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
SDLP - Changes to Management and the Board of Directors
London, United Kingdom, June 19, 2019:Seadrill Partners ("SDLP" or the "Company") is pleased to announce changes to its Management team and Board of Directors, effective July 1, 2019.
John T. Roche will be appointed as Chief Executive Officer and join the Board of Directors. John has been SDLP`s Chief Financial Officer since 2015 and his appointment to CEO comes following the previously announced decision by Mark Morris to step down at the end of June 2019.
Grant Creed will be appointed as Chief Financial Officer. Grant has been with Seadrill Limited for 8 years, most recently as head of M&A and will continue in this capacity on a part time basis. He is a chartered accountant and prior to joining Seadrill Limited spent 7 years with Deloitte in transaction services and audit roles.
Leif Nelson will join the Board of Directors. Leif has been Seadrill Limited`s Chief Operating Officer since 2015 and has over 21 years` experience in the drilling industry. Prior to joining Seadrill Limited he held various operational roles for Transocean and sits on the Executive Committee of the International Association of Drilling Contractors (IADC).
Harald Thorstein, Chairman of SDLP commented, "John, Grant and Leif have played integral parts in our business over many years. I congratulate them on these new roles and look forward to continuing our work together. Finally, I would like to thank Mark for his support and valuable contribution during his time as CEO and I wish him well in his future pursuits."
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and expectations including with respect to the Company`s ability to regain compliance with the NYSE`s continued listing standards. Although Seadrill Partners believes that the expectations reflected in such forward-looking statements are reasonable at the time made, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Seadrill Partners. Actual results may differ materially from those expressed or implied by such forward-looking statements. Seadrill Partners expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Seadrill Partners` expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
This announcement is distributed by West Corporation on behalf of West Corporation clients.The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.Source: Seadrill Partners LLC via GlobeNewswireHUG#2246261 |
Is There An Opportunity With Telaria, Inc.'s (NYSE:TLRA) 45% Undervaluation?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Telaria, Inc. (NYSE:TLRA) as an investment opportunity by taking the expected future cash flows and discounting them to today's value. This is done using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.
Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model.
View our latest analysis for Telaria
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars:
[{"": "Levered FCF ($, Millions)", "2019": "$-3.37", "2020": "$13.63", "2021": "$21.68", "2022": "$30.83", "2023": "$40.19", "2024": "$49.06", "2025": "$57.04", "2026": "$64.00", "2027": "$70.00", "2028": "$75.16"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x1", "2020": "Analyst x1", "2021": "Est @ 59.11%", "2022": "Est @ 42.19%", "2023": "Est @ 30.35%", "2024": "Est @ 22.07%", "2025": "Est @ 16.27%", "2026": "Est @ 12.2%", "2027": "Est @ 9.36%", "2028": "Est @ 7.37%"}, {"": "Present Value ($, Millions) Discounted @ 9.54%", "2019": "$-3.08", "2020": "$11.36", "2021": "$16.50", "2022": "$21.42", "2023": "$25.48", "2024": "$28.40", "2025": "$30.14", "2026": "$30.88", "2027": "$30.83", "2028": "$30.22"}]
Present Value of 10-year Cash Flow (PVCF)= $222.14m
"Est" = FCF growth rate estimated by Simply Wall St
After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. 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 (2.7%) 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 9.5%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$75m × (1 + 2.7%) ÷ (9.5% – 2.7%) = US$1.1b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$1.1b ÷ ( 1 + 9.5%)10= $455.79m
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $677.93m. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of $14.86. Compared to the current share price of $8.2, the company appears quite undervalued at a 45% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out.
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. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own 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 Telaria 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 9.5%, which is based on a levered beta of 1.143. 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. What is the reason for the share price to differ from the intrinsic value? For Telaria, There are three fundamental factors you should look at:
1. Financial Health: Does TLRA 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 TLRA'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 TLRA? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. Simply Wall St updates its DCF calculation for every US stock every day, so if you want to find the intrinsic value of any other stock justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Xi Jinping says he will support Kim Jong-un 'no matter what' in rare front page op-ed ahead of visit
Xi's visit north Korea on his way to the G20 summit in Japan is likely to turn the heads of world leaders - KCNA via KNS Xi Jinping will burnish China's fragile alliance with North Korea by making his first trip to Pyongyang as president this week - and on Wednesday he sealed their friendship in ink, offering a "grand plan" for regional stability. Xi, who will be the first Chinese president to visit Pyongyang in 14 years, penned a rare front-page opinion piece in North Korea's official newspaper, touting their "irreplaceable" bond on the eve of this two-day trip. Xi is visiting the country on Thursday and Friday at the invitation of North Korean leader Kim Jong Un as both men face their own protracted negotiations with US President Donald Trump. With his visit, Xi can show that China still has some influence on its Cold War-era ally and play a role in efforts to convince Pyongyang to abandon its nuclear programme. It could also give the Chinese leader some leverage when he meets Trump to discuss the US-China trade war at the G20 next week in Japan. For Kim, having his powerful next-door neighbour visit will serve as a reminder to Trump that Xi will have his back if the nuclear talks fail for good. In the opinion piece in the Rodong Sinmun - the official mouthpiece of the North's ruling Workers' Party - Xi said Beijing was willing to draw up a "grand plan" with Pyongyang to achieve permanent stability in East Asia. He also vowed that Beijing would play an active role in "strengthening communication and coordination with North Korea and other relevant parties" to push forward negotiations on the Korean Peninsula. At subway stations in Pyongyang, commuters crowded around newsstands to read Xi's article. It appeared on page one of the Rodong Sinmun, in the bottom right-hand corner. The whole of the top half of the front page was devoted to an editorial calling on citizens to uphold the works of Kim's father and predecessor Kim Jong Il in building up the Workers' Party. Story continues "This op-ed is an extremely unusual event," said Ahn Chan-il, a North Korean defector and researcher in Seoul. "For Kim, he needed a public endorsement from Xi, so that he could tell his people that 'look, someone as powerful as Xi has our back'," Ahn told AFP. The trip by the leader of the North's key diplomatic ally and main provider of trade and aid has long been awaited, and comes after Kim travelled to China four times for meetings with Xi. China and North Korea have worked to improve relations in the past year from a low point as Beijing backed a series of UN sanctions against its Cold War-era ally over its nuclear activities. Russia and China on Tuesday blocked an American initiative that aimed to halt fuel deliveries to North Korea, which Washington accuses of exceeding its annual limit for 2019, diplomatic sources said. Hu Jintao was the last Chinese president to visit Pyongyang in 2005, when he met Kim's father, Kim Jong Il. Xi, who will be given the honour of a state visit, will pay homage at the capital's Friendship Tower. In recent days soldiers and workers have been sprucing up the tower, a monument to the Chinese troops who saved the North from defeat during the Korean War. On Wednesday, workers repainted white lines on the pavements of central Pyongyang, trimmed grass verges and added fresh coats of pesticide to trees, as broom-wielding students swept away dirt. But no Chinese flags were seen by AFP journalists in the capital. Instead the red and yellow emblem of the ruling Workers Party - its colours similar to the Chinese ensign - flew alongside the national flag to mark the 55th anniversary of Kim Jong Il starting work at the Central Committee. In his op-ed, Xi stressed that this year marks the 70th anniversary of Beijing-Pyongyang relations. "Over the past 70 years we have been unyieldingly advancing forward in the same boat, breaking through rain and wind," Xi wrote. "One can say this friendship is irreplaceable, even with an enormous fortune". |
Is There An Opportunity With Fox Corporation's (NASDAQ:FOXA) 42% Undervaluation?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
How far off is Fox Corporation (NASDAQ:FOXA) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to their present value. This is done using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model.
View our latest analysis for Fox
We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars:
[{"": "Levered FCF ($, Millions)", "2019": "$1.82k", "2020": "$1.84k", "2021": "$2.06k", "2022": "$2.10k", "2023": "$2.41k", "2024": "$2.57k", "2025": "$2.71k", "2026": "$2.83k", "2027": "$2.95k", "2028": "$3.05k"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x8", "2020": "Analyst x11", "2021": "Analyst x8", "2022": "Analyst x5", "2023": "Analyst x4", "2024": "Est @ 6.59%", "2025": "Est @ 5.43%", "2026": "Est @ 4.62%", "2027": "Est @ 4.05%", "2028": "Est @ 3.66%"}, {"": "Present Value ($, Millions) Discounted @ 8.55%", "2019": "$1.68k", "2020": "$1.56k", "2021": "$1.61k", "2022": "$1.51k", "2023": "$1.60k", "2024": "$1.57k", "2025": "$1.52k", "2026": "$1.47k", "2027": "$1.41k", "2028": "$1.34k"}]
Present Value of 10-year Cash Flow (PVCF)= $15.27b
"Est" = FCF growth rate estimated by Simply Wall St
After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 2.7%. We discount the terminal cash flows to today's value at a cost of equity of 8.6%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$3.1b × (1 + 2.7%) ÷ (8.6% – 2.7%) = US$54b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$54b ÷ ( 1 + 8.6%)10= $23.70b
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 $38.97b. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of $62.8. Relative to the current share price of $36.19, the company appears quite undervalued at a 42% 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.
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 Fox as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.6%, which is based on a levered beta of 0.977. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Although the valuation of a company is important, it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Fox, I've put together three pertinent aspects you should further examine:
1. Financial Health: Does FOXA 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 FOXA'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 FOXA? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. Simply Wall St updates its DCF calculation for every US stock every day, so if you want to find the intrinsic value of any other stock justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
No Retirement Savings? Here’s How to Salvage Your Golden Years
It's one thing to wake up midcareer and realize you've been neglecting your retirement thus far. At that point, you still can make lifestyle changes (think cutting back on bills) and start ramping up savings. But what if you're already in your mid- to late-60s, and retirement is right around the corner? At that point, your chances of going from having no savings to amassing a nest egg worth hundreds of thousands of dollars are pretty slim.
But don't despair. Approaching retirement without savings is far from ideal, but here are a few things you can do to avoid being totally cash-strapped as a senior.
Image source: Getty Images.
Your Social Security benefits are calculated based on your 35 highest-paid years of wages, and once you reachfull retirement age, you're entitled to those benefits in full. Full retirement age is either 66, 67, or somewhere in between, depending on the year you were born. You are, however, allowed todelay benefitspast full retirement age, and for each year you do, you'll increase them by 8%, up until age 70. That, in turn, could help compensate for a lack of retirement savings.
Imagine that you're entitled to $1,400 a month from Social Security at age 67. Waiting until 70 means boosting that figure to $1,736 a month -- for life.
To delay your benefits to 70, you'll probably need to keep working until that point. But as a bonus, doing so could allow you to putsomemoney into an IRA or 401(k). And retiring with $5,000 to $10,000 in savings is better than retiring with no money at all.
Many people assume that once they leave their careers behind, the option to work ceases to exist. But there are plenty of opportunities to earn money in retirement, whether by monetizing a hobby,starting a business, or getting a part-time job.
The benefits of working once retired are twofold. There's the obvious: You'll earn money to help make your senior living costs more manageable, especially if you have no savings. And just as important, working will give you a no-cost activity to fill your days. If you're retiring with a glaring lack of savings, that's an important part of staying active and avoiding unhealthy levels of boredom.
You may not have any money in an IRA or 401(k) as retirement nears. But if you've paid off the mortgage on your home, and that home is worth, say, $400,000, selling it could leave you with a substantial amount of money for your later years. You'll still need a place to live, so the proceeds from that sale may not beallyours to keep. You might, for example, have to spend half that $400,000 on a condo or townhouse. But you can invest the remaining $200,000 and use it as a retirement income stream.
In an ideal world, you'd be nearing retirement with a robust nest egg. But if that's not the case, you can try to boost or create other income sources to avoid financial struggles as a senior.
More From The Motley Fool
• 10 Best Stocks to Buy Today
• The $16,728 Social Security Bonus You Cannot Afford to Miss
• 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own)
• What Is an ETF?
• 5 Recession-Proof Stocks
• How to Beat the Market
The Motley Fool has adisclosure policy. |
Apple Is Reportedly Asking Suppliers to Shift at Least 15% of Output from China
AppleInc. has asked its largest suppliers to consider the feasibility of shifting 15% to 30% of its output from China to Southeast Asia in a dramatic shake-up of its production chain, the Nikkeireported.
The U.S. tech giant asked “major suppliers” to evaluate the cost of such a migration, the newspaper cited multiple sources as saying. Those included iPhone assemblers Foxconn Technology Group, Pegatron Corp. and Wistron Corp., MacBook maker Quanta Computer Inc., iPad maker Compal Electronics Inc. and AirPods makers Inventec Corp., Luxshare-ICT and GoerTek Inc., Nikkei cited them as saying.
China is a crucial cog in Apple’s business, the origin of most of its iPhones and iPads as well as its largest international market. But President Donald Trump has threatened Beijing with new tariffs on about $300 billion worth of Chinese goods, an act that would escalate tensions while levying a punitive tax on Apple’s most profitable product.
The company however has abackupplan if the U.S.-China trade war gets out of hand: Primary manufacturing partner Hon Hai Precision Industry Co. has said it has enough capacity to make all U.S.-bound iPhones outside of China if necessary, Bloomberg News reported last week. The Taiwanese contract manufacturer now makes most of the smartphones in the Chinese mainland and is the country’s largest private employer. |
Introducing Franklin Financial Network (NYSE:FSB), The Stock That Dropped 30% In The Last Year
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
The simplest way to benefit from a rising market is to buy an index fund. Active investors aim to buy stocks that vastly outperform the market - but in the process, they risk under-performance. That downside risk was realized byFranklin Financial Network, Inc.(NYSE:FSB) shareholders over the last year, as the share price declined 30%. That's disappointing when you consider the market returned 4.6%. Longer term shareholders haven't suffered as badly, since the stock is down a comparatively less painful 15% in three years. The good news is that the stock is up 1.6% in the last week.
See our latest analysis for Franklin Financial Network
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Unhappily, Franklin Financial Network had to report a 18% decline in EPS over the last year. The share price decline of 30% is actually more than the EPS drop. Unsurprisingly, given the lack of EPS growth, the market seems to be more cautious about the stock.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
Thisfreeinteractive report on Franklin Financial Network'searnings, revenue and cash flowis a great place to start, if you want to investigate the stock further.
The last twelve months weren't great for Franklin Financial Network shares, which cost holders 29%, including dividends, while the market wasupabout 4.6%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Shareholders have lost 5.2% 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. Most investors take the time to check the data on insider transactions. You canclick here to see if insiders have been buying or selling.
For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.