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Why Genie Energy Ltd. (NYSE:GNE) Could Be Worth Watching
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Genie Energy Ltd. (NYSE:GNE), which is in the electric utilities business, and is based in United States, received a lot of attention from a substantial price increase on the NYSE over the last few months. Less-covered, small caps tend to present more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Let’s take a look at Genie Energy’s outlook and value based on the most recent financial data to see if the opportunity still exists.
Check out our latest analysis for Genie Energy
Good news, investors! Genie Energy is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $17.06, but it is currently trading at US$9.94 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Genie Energy’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. However, with a relatively muted profit growth of 7.4% expected over the next year, growth doesn’t seem like a key driver for a buy decision for Genie Energy, at least in the short term.
Are you a shareholder?Even though growth is relatively muted, since GNE is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor?If you’ve been keeping an eye on GNE for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy GNE. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Genie Energy. You can find everything you need to know about Genie Energy inthe latest infographic research report. If you are no longer interested in Genie Energy, 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. |
China's Geely picks Swedish software firm for driverless cars
By Esha Vaish
STOCKHOLM (Reuters) - China's Geely has chosen Zenuity, a joint venture between its Volvo car marque and Swedish technology group Veoneer, as its preferred supplier for assisted and self driving software.
Geely's deal, encompassing car brands including Geely Auto, performance brand Polestar, subscription-based electric carmaker Lynk & Co and British sports car maker Lotus, provides a welcome boost for Zenuity.
Regulatory challenges and soaring development costs mean carmakers have delayed forecasts for the mass adoption of self-driving cars, putting pressure on suppliers such as Zenuity, which declined to comment on financial terms on Wednesday.
Veoneer said in April it was carrying out a review of Zenuity, which is focused on developing software for assisted driving features (ADAS) such as lane keeping and autonomous driving (AD), and seeking efficiencies from the venture.
Chief Executive Dennis Nobelius said the Geely deal was a significant win as only 3-5 first generation self-driving software platforms would survive to the end of the next decade, compared to the more than 40 CB Insights estimates exist now.
"Our plan is clear, that we want to be one of those," he told journalists. "We have a number of RFQs (request for quotation) at this moment for ADAS and we're discussing deeper relations when it comes to the AD part."
Nobelius said a German vehicle manufacturer would produce models with Zenuity ADAS features in the coming weeks.
Zenuity's entire ADAS software stack along with parent Veoneer's sensors were being showcased to customers and experts at a event in Detroit, Michigan later on Wednesday.
UNCERTAIN ROAD
Gothenburg-based Zenuity was formed in 2017 by Volvo, which Geely bought from Ford in 2010, and former Veoneer parent Autoliv, which put 1.1 billion Swedish crown ($115 million) in the venture.
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.
Zenuity, whose customers include Volvo and Geely Auto, employs more than 600 people and this year won approval to begin hands-free testing on Volvos on Swedish highways.
Technology advisor Erik Coelingh said Zenuity's edge came from the fact that it had products for both ADAS and AD.
"Exactly when AD will come in large volume is relatively uncertain, but until cars drive themselves then you will have ADAS," Coelingh said. "So the fact that we have both really is a very good position to be in this uncertain market."
(Reporting by Esha Vaish in Stockholm; Editing by Johannes Hellstrom and Alexander Smith) |
Growth Is The Only Question That Should Worry JD.com Stock Investors
For most of the past year, investor concerns surroundingJD.com(NASDAQ:JD) have mainly been about CEO Richard Liu, who was arrested in early September on suspicion of rape. JD stock fell 6% on the first day of trading following the news, further extending a drop that had begun in early June 2018.
Source:Daniel Cukier via Flickr
Liu was in Minneapolis for a residency as part of a doctorate program in business administration for “top-level executives” working full-time in China.
While journalists wrote breathlessly about the shares plungingafter Liu’s arrest, the real question — for investors — is why JD stock began falling about a year ago in the first place and where it may go from here.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
LikeAlibaba Group Holding(NASDAQ:BABA), JD.com stock is a play on Chinese e-commerce infrastructure. But unlike Alibaba, which focuses on clouds and retailing, JD.Com focuses on distribution.
• 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019
JD.com is able to deliver orders profitably to remote villages, and is a leader inautomated delivery in cities. The company delivers about 150,000 orders daily from 500 distribution bases and it has robots delivering fresh goods by land and air. While U.S. companies likeAmazon(NASDAQ:AMZN) struggle to get orders delivered in 24 hours, JD.com is getting some packages to their end point in 30 minutes.
JD.com has a market cap of $33 billion and expects quarterly revenue of $21.85 billion, with profits of 5 cents a share, when it next announces earningsAugust 9.During the March quarter, when it was expected to earn 12 cents per share, itsurprised investors with earnings of 74 cents.
The delivery infrastructure has value in its own right, and there have been reports it mightlist the unit separately.
JD.com had revenue of $18.6 billion in 2014. That more than tripled, to nearly $70 billion, by 2018.
My InvestorPlace colleague James Brumley wrote recently thatinvestors are worriedabout JD tripling the number of its rural storefronts in China to 15,000.
Serving 60-something moms and dads in rural villages is unique but selling refrigerators to their kids in Shanghai is harder. Despite having stores as big as 500,000 square feet, that’s where I place my worries because then JD.com is competing directly with Alibaba.
Unique niches are hard to come by, but JD.com keeps finding them. One of the more interesting isonline sales of luxury goods, where it has a tie-up withFarfetch(NYSE:FTCH), a global seller of luxury brands that went public last September.
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Farfetch China acquired Toplife, JD’s luxury portal, in 2017. JD.combought a $397 million stakein Farfetch and Liu sits on the Farfetch board. Farfetchopened a China portal on JD.comearlier this month, giving JD stock a much-needed boost.
Which leads to the other bearish call on JD.com: the slowing growth of China itself. The trade wars have Morningstar cutting its growth estimates for the world’s second-biggest economy in half,to 3.25%. That’s still higher than U.S. growth.
The trade war hasmade Chinese stocks volatile, especially in the tech sector. But JD.com stock is now selling at aWalmart(NASDAQ:WMT) price, when its $70 billion in sales are matched with its $33 billion valuation. (Walmart is worth $311 billion on $515 billion in sales.)
JD.com’s growth means it hasn’t yet made a profit for a full year, but if it hits the mark in August, and continues to make money through 2019, while growing that unique infrastructure, it’s got to beworth moneyto a speculative investor.
Dana Blankenhornis a financial and technology journalist. He is the author of the mystery thriller,The Reluctant Detective Finds Her Family, available at the Amazon Kindle store. Write him atdanablankenhorn@gmail.comor follow him on Twitter at@danablankenhorn. As of this writing he owned shares in AMZN.
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Do Directors Own Macarthur Minerals Limited (CVE:MMS) Shares?
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Every investor in Macarthur Minerals Limited (CVE:MMS) should be aware of the most powerful shareholder groups. 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.'
Macarthur Minerals is a smaller company with a market capitalization of CA$27m, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions don't own many shares in the company. Let's delve deeper into each type of owner, to discover more about MMS.
See our latest analysis for Macarthur Minerals
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 many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Macarthur Minerals'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.
Macarthur Minerals is not owned by hedge funds. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
We can see that insiders own shares in Macarthur Minerals Limited. As individuals, the insiders collectively own CA$1.5m worth of the CA$27m 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, mostly retail investors, hold a substantial 89% stake in MMS, suggesting it is a fairly popular stock. 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.
We can see that Private Companies own 4.4%, 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.
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. |
Is Oxford Immunotec Global PLC's (NASDAQ:OXFD) CEO Pay Justified?
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In 2002 Peter Wrighton-Smith was appointed CEO of Oxford Immunotec Global PLC (NASDAQ:OXFD). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Oxford Immunotec Global
According to our data, Oxford Immunotec Global PLC has a market capitalization of US$384m, and pays its CEO total annual compensation worth US$1.6m. (This figure is for the year to December 2018). That's a modest increase of 2.1% on the prior year year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$382k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.8m.
That means Peter Wrighton-Smith receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Oxford Immunotec Global, below.
Over the last three years Oxford Immunotec Global PLC has grown its earnings per share (EPS) by an average of 42% per year (using a line of best fit). In the last year, its revenue is up 40%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Shareholders might be interested inthisfreevisualization of analyst forecasts.
Most shareholders would probably be pleased with Oxford Immunotec Global PLC for providing a total return of 54% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Peter Wrighton-Smith is paid around what is normal the leaders of comparable size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! So you may want tocheck if insiders are buying Oxford Immunotec Global shares with their own money (free access).
If you want to buy a stock that is better than Oxford Immunotec Global, thisfreelist of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Airbus grabs China Airlines narrow-body jet order
LE BOURGET, France (Reuters) - Airbus unveiled an aircraft deal with Taiwan's China Airlines on Wednesday, snatching the carrier's medium-haul fleet renewal from Boeing a day after its U.S. rival made a shock entry into the single-aisle fleet of British Airways owner IAG.
The European planemaker said China Airlines had signed a preliminary deal to buy 11 A321neo aircraft, worth about $1.4 billion at list prices, while leasing another 14.
Although much smaller than the IAG letter of intent for 200 Boeing 737 MAX announced on Tuesday, the China Airlines deal signals intensified competition in Asia where Boeing predicts 40 percent of jets will be delivered over the next 20 years.
The same airline however said it intended to order up to six Boeing 777 freighters to modernize its cargo fleet as it launches operations from Taipei to North America and Europe.
Airlines can rarely be persuaded to jump ship to rival suppliers because of the costs of training and parts, but this week's Paris Airshow has witnessed two such announcements as sold-out planemakers mount incursions to continue their growth.
In a further competitive twist, Boeing announced on Tuesday it would take over the supply of spare parts for the remaining Airbus A320 fleet at British Airways.
China Airlines announced the leasing part of the deal in May when Reuters reported it would also pave the way for the Taiwan carrier to switch its medium-haul fleet to the Airbus A320neo.
The rare deal to replace older 737s took years to complete and was drafted before the 737 MAX was engulfed by a crisis involving two crashes and a worldwide grounding, sources said.
(Reporting by Tim Hepher, Editing by Mark Potter) |
Does Northwest Natural Holding Company's (NYSE:NWN) -5.5% Earnings Drop Reflect A Longer Term Trend?
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After reading Northwest Natural Holding Company's (NYSE:NWN) most recent earnings announcement (31 March 2019), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. As a long-term investor I tend to focus on earnings trend, rather than a single number at one point in time. Also, comparing it against an industry benchmark to understand whether it outperformed, or is simply riding an industry wave, is a crucial aspect. Below is a brief commentary on my key takeaways.
Check out our latest analysis for Northwest Natural Holding
NWN's trailing twelve-month earnings (from 31 March 2019) of US$69m has declined by -5.5% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of -11%, indicating the rate at which NWN is growing has slowed down. What could be happening here? Let's examine what's transpiring with margins and if the entire industry is feeling the heat.
In terms of returns from investment, Northwest Natural Holding has fallen short of achieving a 20% return on equity (ROE), recording 8.7% instead. Furthermore, its return on assets (ROA) of 3.3% is below the US Gas Utilities industry of 4.5%, indicating Northwest Natural Holding's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Northwest Natural Holding’s debt level, has declined over the past 3 years from 5.5% to 4.9%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 99% to 115% over the past 5 years.
While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have capricious earnings, can have many factors influencing its business. You should continue to research Northwest Natural Holding to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for NWN’s future growth? Take a look at ourfree research report of analyst consensusfor NWN’s outlook.
2. Financial Health: Are NWN’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. |
New discovery by scientists in Singapore could help with early detection of Cantonese cancer
Scientists from the Genome Institute of Singapore (GIS) announced on Monday recent findings that show potential improvements to the early detection of so-called Cantonese cancer the most common head and neck cancer in Singapore. The team of scientists, from the GIS Agency for Science, Technology and Research (A*STAR), discovered two new Epstein-Barr Virus (EBV) variants associated with Cantonese cancer another name for nasopharyngeal carcinoma, or nose cancer as well as gastric cancer and several kinds of lymphoma, which could make it easier to identify individuals at high risk of developing these cancers and get them to undergo intervention programs early on. According to the study, published in the scientific journal Nature Genetics , individuals with the strain are 11 times more likely to develop the cancer than non-carriers. The research also found that over 80 percent of cancer cases among individuals from the Cantonese dialect group are caused by this strain (hence the name Cantonese cancer). This also explains why testing for such variants can help identify individuals who are at high risk. The nasopharynx is the area behind the nose and above the back of the throat. Cantonese cancer occurs when the cells that line the nasopharynx become cancerous, according to SingHealth online . It is prevalent among this sub-group of Chinese individuals, and is 20 to 30 times more common in people of Cantonese descent , according to the Singapore Cancer Society website. The society also noted that it is more frequently seen in males than in females. Early nasopharyngeal cancer is treated by radiotherapy, while chemotherapy is sometimes used as part of the treatment, according to the Ministry of Health website. Like with any illness, early detection greatly increases the chances for successful treatment. SingHealth, however, points out that prevention is always better than a cure, and recommends at-risk or concerned individuals to consume a diet of fresh fruit, green vegetables, and other sources of vitamin C as potential measures of lowering that risk. It also advises against smoking and consuming excessive amounts of salted fish and other preserved foods. This article, New discovery by scientists in Singapore could help with early detection of Cantonese cancer , originally appeared on Coconuts , Asia's leading alternative media company. Want more Coconuts? Sign up for our newsletters! |
Beyond Earnings Growth: Bet on Beat With These 5 Stocks
Plain and simple earnings growth may no longer entice investors. Now, earnings improvement (no matter how big it is) seems inadequate for solid moves in the market. It is the “BEAT” that matters the most and leads one to a lucrative investment.
What is Earnings Beat?
A positive earnings surprise or earnings beat is typically the case when actual or reported earnings come in above the consensus estimate. Historically, if a company’s earnings manage to beat market expectations, its stock surges post release.
This is becauseinvestors always try to take positions ahead of time and look for stocks that are likely to come up with stellar performances. Now, since Wall Street analysts project earnings of companies after much deliberation, their estimates act as investment leads.
Why to Give Earnings Beat So Much of Precedence?
After all, only earnings beat can give investors a clear picture of a company’s strength when an industry-wide earnings recession is felt.
Also, a 20% earnings rise (though apparently looks good) doesn’t tell you everything about the company’s performance. This might represent decelerating earnings growth momentum over the years or quarters, raising questions over the company’s fundamentals.
Also, seasonal fluctuations come into play at times. If a company’s Q1 is seasonally weak and Q4 is strong, then it is likely to report a sequential earnings decline. In such cases, growth rates are misleading while judging the true health of a company.
On the other hand, analysts put together their insights and a company’s guidance when giving an earnings estimate. Thus, outperforming that estimate is almost equivalent to beating the company’s own expectation as well as market perception.
How to Find Stocks that Can Beat?
Now, since it is difficult to foretell if a company will beat or miss in the upcoming earnings season, investors can check the earnings surprise history. An impressive track in this regard generally acts as a catalyst in sending a stock higher. It indicates the company’s consistency in surpassing estimates. And investors generally believe that the company will have the same trick up its sleeve or in other words is smart enough to beat on earnings in its next release.
The Winning Strategy
In order to shortlist stocks that are likely to come up with an earnings surprise, we chose the following as our primary screening parameters.
Last EPS Surprise greater than or equal to 5%:Stocks delivering positive surprise in the last quarter tend to surprise again.
Average EPS Surprise in the last four quarters greater than 10%:We lifted the bar for outperformance slight higher by setting the average earnings surprise for the last four quarters at 20%.
Average EPS Surprise in the last two quarters greater than 10%:This points to a more consistent surprise history and makes the case for another surprise even stronger.
In addition, we place a few other criteria that push up the chance of a positive surprise.
Zacks Rank less than or equal to 2:Only companies with a Zacks Rank #1 (Strong Buy) or 2 (Buy) rating can get through.
Earnings ESPgreater than zero:A stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for an earnings beat to happen, as per our proven model.
In order to zero in on those that have long-term growth potential and high trading liquidity we have added the following parameters too:
Next 3–5 Years Estimated EPS Growth (Per Year) greater than 5%:Solid expected earnings growth exhibits the stock’s long-term growth prospects.
Average 20-day Volume greater than 100,000:High trading volume implies that the stocks have adequate liquidity.
A handful of criteria narrowed down the universe from over 7,700 stocks to 11.
Here are five out of the 11 stocks:
OSI Systems, Inc. OSIS:This Zacks Rank #1 company is a vertically integrated designer and manufacturer of specialized electronic systems, and components for critical applications in the homeland security, healthcare, defense, and aerospace industries. The stock comes from a top-ranked Zacks industry (top 33%). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Hasbro Inc. HAS:This Zacks Rank #2 company is a global leader in children's and family leisure time, and entertainment products and services. The stock comes from a top-ranked Zacks industry (top 21%).
Stitch Fix Inc. SFIX:This provider of an online subscription and personal shopping platform holds a Zacks Rank #2. The stock comes from a top-ranked Zacks industry (top 32%).
Asure Software Inc ASUR:Asure Software Inc., formerly Forgent Networks, Inc., is a provider of web-based workforce management solutions. The stock has a Zacks Rank #1 and belongs to a top-ranked Zacks industry (top 13%).
Under Armour Inc. UAA:Under Armour, the originator of performance footwear, apparel and equipment, revolutionized how athletes across the world dress. The stock has a Zacks Rank #2 and comes from a top-ranked Zacks Rank sector (top 50%).
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at:https://www.zacks.com/performance.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAsure Software Inc (ASUR) : Free Stock Analysis ReportOSI Systems, Inc. (OSIS) : Free Stock Analysis ReportUnder Armour, Inc. (UAA) : Free Stock Analysis ReportHasbro, Inc. (HAS) : Free Stock Analysis ReportStitch Fix, Inc. (SFIX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Volatility 101: Should Parsley Energy (NYSE:PE) Shares Have Dropped 36%?
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Passive investing in an index fund is a good way to ensure your own returns roughly match the overall market. Active investors aim to buy stocks that vastly outperform the market - but in the process, they risk under-performance. Unfortunately the Parsley Energy, Inc. ( NYSE:PE ) share price slid 36% over twelve months. That falls noticeably short of the market return of around 4.6%. We note that it has not been easy for shareholders over three years, either; the share price is down 32% in that time. Unfortunately the share price momentum is still quite negative, with prices down 11% in thirty days. See our latest analysis for Parsley Energy To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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. Even though the Parsley Energy share price is down over the year, its EPS actually improved. Of course, the situation might betray previous over-optimism about growth. It's fair to say that the share price does not seem to be reflecting the EPS growth. So it's well worth checking out some other metrics, too. Parsley Energy's revenue is actually up 61% over the last year. Since the fundamental metrics don't readily explain the share price drop, there might be an opportunity if the market has overreacted. 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. NYSE:PE Income Statement, June 19th 2019 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. If you are thinking of buying or selling Parsley Energy stock, you should check out this free report showing analyst profit forecasts . Story continues A Different Perspective Investors in Parsley Energy had a tough year, with a total loss of 36%, against a market gain of about 4.6%. 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 4.8% per year over five years. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality businesses. If you want to research this stock further, the data on insider buying is an obvious place to start. You can click here to see who has been buying shares - and the price they paid. If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor 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. |
Can We See Significant Institutional Ownership On The Novelion Therapeutics Inc. (NASDAQ:NVLN) Share Register?
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The big shareholder groups in Novelion Therapeutics Inc. (NASDAQ:NVLN) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see lower insider ownership in companies that were previously publicly owned.
Novelion Therapeutics is not a large company by global standards. It has a market capitalization of US$16m, 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 institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about NVLN.
Check out our latest analysis for Novelion Therapeutics
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors own 28% of Novelion Therapeutics. 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 Novelion Therapeutics, (below). Of course, keep in mind that there are other factors to consider, too.
It would appear that 25% of Novelion Therapeutics shares are controlled by hedge funds. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our data suggests that insiders own under 1% of Novelion Therapeutics Inc. in their own names. It seems the board members have no more than US$100k worth of shares in the US$16m company. I generally like to see a board more invested. However it might be worth checkingif those insiders have been buying.
The general public holds a 36% stake in NVLN. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
With a stake of 9.9%, private equity firms could influence the NVLN 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.
It's always worth thinking about the different groups who own shares in a company. But to understand Novelion Therapeutics 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.
Of coursethis may not be the best stock to buy. So take a peek at thisfreefreelist of interesting companies.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
A Closer Look At PICO Holdings, Inc.'s (NASDAQ:PICO) Uninspiring ROE
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While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. By way of learning-by-doing, we'll look at ROE to gain a better understanding of PICO Holdings, Inc. (NASDAQ:PICO).
Our data showsPICO Holdings has a return on equity of 3.4%for the last year. Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.034.
Check out our latest analysis for PICO Holdings
Theformula for return on equityis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for PICO Holdings:
3.4% = US$6.2m ÷ US$179m (Based on the trailing twelve months to March 2019.)
Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is all the money paid into the company from shareholders, plus any earnings retained. Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company.
Return on Equity measures a company's profitability against the profit it has kept for the business (plus any capital injections). The 'return' is the amount earned after tax over the last twelve months. That means that the higher the ROE, the more profitable the company is. So, all else being equal,a high ROE is better than a low one. Clearly, then, one can use ROE to compare different companies.
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As is clear from the image below, PICO Holdings has a lower ROE than the average (13%) in the Commercial Services industry.
That's not what we like to see. We'd prefer see an ROE above the industry average, but it might not matter if the company is undervalued. Still,shareholders might want to check if insiders have been selling.
Virtually all companies need money to invest in the business, to grow profits. That cash can come from issuing shares, retained earnings, or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
Shareholders will be pleased to learn that PICO Holdings has not one iota of net debt! It's hard to argue its ROE is much good, but the fact that no debt was used is some comfort. After all, when a company has a strong balance sheet, it can often find ways to invest in growth, even if it takes some time.
Return on equity is one way we can compare the business quality of different companies. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So I think it may be worth checking thisfreethisdetailed graphof past earnings, revenue and cash flow.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt.
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 Natural Health Trends Corp.'s (NASDAQ:NHTC) ROE Can Tell Us
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Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). We'll use ROE to examine Natural Health Trends Corp. (NASDAQ:NHTC), by way of a worked example.
Over the last twelve monthsNatural Health Trends has recorded a ROE of 24%. Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.24.
View our latest analysis for Natural Health Trends
Theformula for return on equityis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Natural Health Trends:
24% = US$20m ÷ US$86m (Based on the trailing twelve months to March 2019.)
Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is the capital paid in by shareholders, plus any retained earnings. The easiest way to calculate shareholders' equity is to subtract the company's total liabilities from the total assets.
Return on Equity measures a company's profitability against the profit it has kept for the business (plus any capital injections). The 'return' is the profit over the last twelve months. That means that the higher the ROE, the more profitable the company is. So, all else equal,investors should like a high ROE. That means it can be interesting to compare the ROE of different companies.
One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. If you look at the image below, you can see Natural Health Trends has a similar ROE to the average in the Personal Products industry classification (21%).
That isn't amazing, but it is respectable. ROE doesn't tell us if the share price is low, but it can inform us to the nature of the business. For those looking for a bargain, other factors may be more important. If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Most companies need money -- from somewhere -- to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the use of debt will improve the returns, but will not change the equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
Shareholders will be pleased to learn that Natural Health Trends has not one iota of net debt! Its high ROE indicates the business is high quality, but the fact that this was achieved without leverage is veritably impressive. After all, with cash on the balance sheet, a company has a lot more optionality in good times and bad.
Return on equity is useful for comparing the quality of different businesses. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
But when a business is high quality, the market often bids it up to a price that reflects this. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So I think it may be worth checking thisfreethisdetailed graphof past earnings, revenue and cash flow.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
These Are the Top CEOs (According to Employees)
Success often comes from the top down. A good CEO sets the tone for his or her company and inspires employees to do the best job possible.
That's why investors should look for companies with a top executive who's not just well-liked by the public, but also by the people who work for her or him. The annualGlassdoor Employee Choice awardsused data from workers "who voluntarily provide anonymous feedback by completing a company review about their CEO's leadership, along with insights into their job, work environment and employer over the past year," according to a press release.
These rankings aren't about public perception. They rank the CEOs of companies with at least 1,000 workers using at least 100 ratings from employees during the eligible period.
A good CEO can set the tone for the whole company. Image source: Getty Images.
The majority of the top-50 CEOs (27) come from technology companies. That's up from 26 last year. That was followed by healthcare with 12, up from 11 in 2018; manufacturing with eight; and both retail and restaurants claiming seven spots. (Note: This is at the time of the awards, as some CEOs have since departed.)
1. VMware: Pat Gelsinger
2. H-E-B: Charles C. Butt
3. In-N-Out Burger: Lynsi Snyder
4. T-Mobile US: John Legere
5. Adobe: Shantanu Narayen
6. Microsoft: Satya Nadella
7. McKinsey & Company: Kevin Sneader
8. LinkedIn: Jeff Weiner
9. Intuitive Surgical: Gary S. Guthart
10. Best Buy: Hubert Joly
11. Sammons Financial Group: Esfand Dinshaw
12. Bain & Company: Manny Maceda
13. Stryker: Kevin A. Lobo
14. CoverMyMeds: Matt Scantland
15. Deloitte: Cathy Engelbert
16. HubSpot: Brian Halligan
17. salesforce.com: Marc Benioff and Keith Block
18. NVIDIA: Jen-Hsun Huang
19. Vi: Randy Richardson
20. CareSource: Erhardt Preitauer
What's clear from the rankings is that there's very little separation between the top CEOs. The top-ranked leaders scored a 99% approval ranking from their employees, while the 20th-ranked CEO still scored a 96% approval rating.
"Today's job seekers are looking for leaders who share their values and will empower them to bring their full selves to work," said Glassdoor COO Christian Sutherland-Wong in a press release. "More and more, we're seeing Top CEOs make decisions to shape the culture of their organizations to help recruit and retain quality talent, which has a direct correlation to fueling business success."
While a good CEO does not guarantee a pleasant working environment, it's a very good sign. As you search for a job, it's smart to research a company'stop boss. If it's someone on this list, that's a strong point in favor of your accepting the position.
Most CEOs, however, don't make this list -- and the leaders of smaller companies may be harder to find information on. When you consider accepting a job at a smaller company, try to talk to present employees to get their opinion. Look to see if the average person has been there for a long time -- that's generally a good sign -- and learn what you can about the CEO's reputation.
Your position may be many levels removed from the CEO, but that doesn't mean the CEO won't affect you.Awful bossestend to create negative cultures that infect the entire organization. It's important to figure out whether that's the case before you make the decision to accept a job.
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Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors.Daniel B. Klineowns shares of Microsoft. The Motley Fool owns shares of and recommends HubSpot, Intuitive Surgical, Microsoft, NVIDIA, and Salesforce.com. The Motley Fool recommends Adobe Systems, T-Mobile US, and VMware. The Motley Fool has adisclosure policy. |
3 Stocks That Could Help You Send Your Kids to College
Sending your kids to college is a key reason many people invest in the stock market. The problem, however, is that it can be tricky to find stocks with the right balance of lower risk and enough upside to generate solid returns. We asked three Motley Fool contributors for stock picks that could help pad your kids' college funds, and they came back withAutodesk(NASDAQ: ADSK),Electronic Arts(NASDAQ: EA), andMongoDB(NASDAQ: MDB).
Brian Feroldi(Autodesk):Software has historically been sold through retailers, distributors, and resellers, but times are changing. The advent of cloud computing now allows software makers to sell their products directly to consumers through a pay-as-you-go model. This not only leads to a better experience for consumers, but it also allows software companies to cut out the middleman and generate higher profits.
Lots of established software companies have made the switch to a software-as-a-service (SaaS) model and havehugelybenefited from the change. Autodesk isa shining exampleof a recent success story.
Autodesk sells a range of computer-aided design products that helps engineers, architects, construction professions, designers, and entertainers to create anything that they can imagine. A few years ago, Autodesk made the switch to an SaaS business model. While that was a painful decision in the short term (some customers were upset and revenue, cash flow, and profits all took a hit), the company is currently reaping the rewards of the transition. The majority of revenue is now recurring in nature, margins are on the rise, and profitability has returned.
Autodesk is currently producingdreamy financial statements. Revenue is growing in excess of 20% annually and profits are growing much faster. Margins are rising and free cash flow is soaring.
Investors have been hugely rewarded over the last couple of years for their patience, but I still think that the best is yet to come. Autodesk has converted "only" 4.3 million of its users to its subscription model. Another 14 million users are still using outdated software that will have to be upgraded eventually.
That opportunity -- when combined with a lot ofoperating leverage-- helps explains why Wall Street is currently expecting 68% annualized profit growth over the next five years. That's a screaming high growth rate for a business that is trading around 35 times next year's earnings estimates.
Daniel Miller(Electronic Arts):If you're looking for an investment that can help send your kid to college, you'll want to start with well-established companies with plenty of growth left for the decades ahead. One such company is Electronic Arts, one of the world's largest video game publishers with franchises includingMadden, FIFA, andBattlefield, among many others. The stock has taken a hit after some backlash from its microtransaction business practices, but it remains well-positioned in a booming industry.
EAdata byYCharts.
Here are just a couple of reasons for investors to buy into EA's long-term growth story: More and more games have digital distribution and streaming, which enables EA to cut out traditional brick-and-mortar middlemen and drastically reduces the need for packaging and retail distribution -- all factors that make video games more profitable. Anotherfast-growing category is esports, where people watch the elite players in a slew of games play competitively, and even professionally. While that may not be your cup of tea, it's booming and the audience demographics are especially interesting to advertisers. Further, the growth potential globally and on mobile -- the latter is the fastest-growing gaming platform in terms of revenue -- means there is plenty long-term growth remaining.
Image source: Getty Images.
A recent aspect that could help boost EA's stock in the near term is new info about itsApex Legendsgame. AfterApexinitially started out as a blockbuster, itquickly lost steam with playersand failed to live up to the expectations EA had for the title. EA is now preparing to launch the second season, calledBattle Charge, which introduces a new weapon and a new legend character, and fixes many complaints from the first season, including adding a ranked mode and challenges. EA has hit some speed bumps recently, but it's well-positioned as a large publisher with strong franchises in a booming industry. If management optimizes its evolving business models, embraces and monetizes esports, and expands globally, it should be a great stock to own over the coming decades.
Jeremy Bowman(MongoDB):If you're looking to build up savings to send your kids to college, you're going to want to put a few high-growth stocks in your portfolio, the kind that can deliver ten-bagger returns by the time junior turns 18, and MongoDB looks like just the ticket.
Like many of it software-as-a-service (SaaS) peers, MongoDB -- which calls its core cloud offering MongoDB Atlas, a database-as-a-service (DBaaS) -- is experiencing exponential growth. In its most recent quarter, revenue surged 78% to $89.4 million, driven by an 82% increase in subscription revenue, which makes up the vast majority of its sales, and revenue growth is actually accelerating thanks to theexplosive growthof MongoDB Atlas, which saw revenue jump 340% in the most recent quarter. Atlas now makes up 35% of the company's revenue.
The stock has also delivered impressive results as shares have jumped more than 400% in less than two years since its IPO.
MongoDB is still operating at a loss as the company spends aggressively on sales and marketing in order to boost its top-line growth and market share, and on research and development in order to fuel the next wave of products.
The stock also trades at a lofty valuation, with a market cap of $9.2 billion and a price-to-sales ratio of 24 based on this year's expected results. Considering the breakout growth of MongoDB Atlas and the company's long-term opportunity, that valuation seems warranted.
MongoDB has already delivered impressive returns to early investors. Over the next 10 or 15 years, it could do the same for your kids' college funds.
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Brian Feroldiowns shares of Electronic Arts.Daniel Millerhas no position in any of the stocks mentioned.Jeremy Bowmanhas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends MongoDB. The Motley Fool recommends Autodesk and Electronic Arts. The Motley Fool has adisclosure policy. |
Fed delivers interest rate decision: Morning Brief
Wednesday, June 19, 2019
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The Federal Open Market Committee (FOMC) will deliver its interest-rate decision, following a two-day meeting. After the committee’s announcement, Federal Reserve Chairman Jerome Powell will hold a press conference. Given the recent escalation of the U.S.-China trade war and slew of worrisome economic data, this month’s FOMC meeting will be even more closely watched than usual.
While consensus among economists is that there will be no rate cut following this month’s meeting, how Federal Reserve Chairman Jerome Powell illustrates the Fed’s views on the state of the economy and outlines the Fed’s future monetary path will be focal points among market watchers.
Meanwhile, tech giant Oracle (ORCL) will announce quarterly results after the market close. Analysts expect the company to report adjusted earnings of $1.07 per share on $10.94 billion of revenue.
Read more
Trump hints that Fed should match possible ECB rate cuts: Early on Tuesday the European Central Bank suggested that it could move soon to ease its monetary policy, and President Donald Trump is challenging the Federal Reserve to do the same. In a series of tweets Tuesday morning, Trump appeared to criticize the ECB for “unfairly” devaluing the euro against the U.S. dollar. A weaker euro makes it more expensive for Europeans to buy U.S. exports, hurting the administration’s efforts to reduce the trade deficit. [Yahoo Finance]
Also:Trump asked White House lawyers for options on removing Powell[Bloomberg]
Tumbling air fares and car prices see UK inflation hit 2% target: 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. [Yahoo Finance UK]
Exclusive: Labour looking at delaying Britain's 5G rollout over Huawei:Britain’s main opposition party Labour is leaning towards delaying the rollout of 5G due to security concerns over Huawei, sources tell Yahoo Finance UK. While Labour is currently holding off from developing an explicit policy on the matter, due to not benefitting from all the information the Conservative-led government holds, the party is believed to be prioritizing national security over short term financial benefit. [Yahoo Finance UK]
What to know about Slack’s direct listing: On Thursday, shares of the company will open for trading on the New York Stock Exchange (^DJI) under the ticker “WORK,” making it the latest in a parade of highly-valued tech companies to go public this year. But unlike the vast majority of its peers, Slack won’t be doing so by way of an initial public offering. [Yahoo Finance]
There are signs of stock market 'micro-bubbles'
Footwear trade group CEO: 'Our members are livid' over tariffs
Disney’s upcoming streaming service is even hotter than expected
College students are overestimating how much money they can make after graduation
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HBC activist shareholder calls go-private offer 'woefully inadequate'
An activist shareholder has slammed the proposed offer from a group of majority shareholders to take Hudson’s Bay Co. private, calling the bid “woefully inadequate.” Activist investor Land & Buildings Investment Management LLC released an open letter Tuesday calling on the special committee reviewing the go-private offer to explore other potential transactions that could “maximize value for all shareholders.” The letter points to a statement made by HBC chief executive Helena Foulkes last year that pegged the value of the company’s real estate at $28 per share – well above the go-private offer of $9.45 per share . “We want to be clear: this offer materially undervalues the exceptional assets the company owns,” the letter, signed by Land & Buildings founder Jonathan Litt, said. “We trust that you, the Special Committee, will fully and fairly evaluate the proposal and thus will ultimately agree that it is woefully inadequate.” Last week, HBC announced that it was reviewing an offer from a majority group of shareholders, led by executive chairman Richard Baker, to take the company private at $9.45 per share. Shares of HBC have jumped since that offer was made public, closing on Monday at $10.25. The stock fell 2 per cent on Tuesday to $10.04 as of 11 a.m. ET. Litt said in the letter that the company should explore “a robust strategic alternatives process” that could capitalize on the HBC’s real estate portfolio, which he has previously said has been egregiously undervalued. He also urged the company to hire “a truly independent investment bank” to evaluate the value of the real estate portfolio. Litt also took issue with the offer being 100 per cent paid for from proceeds from a sale of company assets. The Canadian retailer announced last week it would exit the German market, selling the company’s remaining 49.9 per cent stake of its European real estate joint venture in Germany to its partner, Signa, for US$1.5 billion. Story continues “The Management Buyout Group is not investing any capital to fund the purchase of HBC. In fact, the Management Buyout Group will have excess proceeds from the sale of the European joint venture stake of $773 million, which they could immediately distribute to themselves,” Litt wrote. “Based on our calculations, the Management Buyout Group could apply the entire $1.5 billion to buy out the minority shareholders at $18 per share, nearly twice the amount of the current offer, and retain ownership of all the remaining assets of the company.” Yahoo Finance Canada |
Exclusive: Libyan steel maker plans $1 billion tender in July, output hike in 2019
By Ulf Laessing
MISRATA, Libya (Reuters) - The Libyan Iron and Steel Company (Lisco), one of North Africa's biggest steelmakers, plans to launch a tender next month worth $1 billion to build two new plants and also aims to increase production this year, its chairman said.
Mohamed al-Faqih also told Reuters Lisco had started exporting products to a new market, Algeria, in a rare sign of non-oil activity in the OPEC oil producer.
The steelmaker has been hit by power cuts, shortages and the reluctance of European firms to engage with the country amid chaos since the toppling of Muammar Gaddafi in 2011.
But thanks to its location in the western Libyan city of Misrata largely untouched by violence, Lisco managed to keep producing and even open a new bar mill last year with an annual capacity of 800,000 tonnes.
To feed the new mill, Lisco plans to attract foreign companies to build two plants to produce billets, with a tender worth $1 billion to be likely launched next month, Faqih said.
The move would help cut costly imports.
"We are preparing the tender documents," Faqih said, adding that Lisco was targeting large European companies such as Italy's Danieli or Germany's SMS Group.
Lisco plans to increase production liquid steel, its main base product, this year to more than 600,000 tonnes, up slightly from last year, he said.
Power and gas supply was better than last year but there were still disruptions, he said, explaining why Lisco was running below its 1.3 million tonne capacity.
The company also plans to produce in 2019 at least 1 million tonnes of finished and semi-finished products, up from last year's level, he said, without providing exact comparisons.
Output of reinforcing bars (rebar) will rise to 500,000 tonnes in 2019 after 350,000 tonnes last year. The original plan had been 650,000 tonnes but by June Lisco had only achieved 250,000 tonnes.
Lisco also made by June 100,000 tonnes of hot briquetted iron, putting it on target to reach 300,000 tonnes in 2019.
"We are facing many obstacles and most plants are not working at the maximum possible level," he said.
A war started in April by eastern forces to take Tripoli held by the U.N.-backed government had halved output at a small Tripoli plant and made foreign banks more reluctant to open credit letters, although security in Misrata remained good.
Lisco started this year exporting rebars to Algeria, having sent 30,000 tonnes in five shipments and planning to export 10,000 tonnes a month. It had long sought access to the neighbour to complement European and Arab markets.
"Now we are concentrating on Algeria. They have a lot of construction activities," he said. Lisco also imports raw materials from Brasil's Vale and a Bahraini company.
(Editing by Louise Heavens) |
Eco Atlantic not aware of any Guyana oil probe that would affect its work
LONDON (Reuters) - Canadian-listed Eco Atlantic said on Wednesday it was not aware of any corruption probe in Guyana that would affect an offshore concession it has with partners Total and Tullow Oil.
Guyana's anti-corruption agency launched an investigation into how exploration rights were awarded for Guyana's offshore fields, Bloomberg reported last month. Officials in Guyana have not responded to Reuters requests for comment.
"We are not aware of any investigation. We were not approached," Eco Chief Executive Gil Holzman told Reuters. "We are very comfortable, not concerned at all."
Eco and its partners hold the Orinduik block, which the Canadian-listed company estimates has 3.9 billion barrels of oil equivalent. Tullow, the operator of the Orinduik block, has a 60% stake, while Total has 25% and Eco has 15%.
Exxon has made discoveries of more 4 billion barrels in an adjacent block.
The two projects are among the most-watched in the oil markets.
Results for two exploration wells that Eco and its partners are drilling in Orinduik's Jethro and Joe areas were due by the end of August, Holzmann said.
He added that results from those wells and from a well Tullow was drilling in September in an adjacent block could affect the resource estimate of the Orinduik block.
(Reporting by Shadia Nasralla; Editing by Edmund Blair) |
John Wiley & Sons, Inc. (NYSE:JW.A): Is It A Good Long Term Opportunity?
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John Wiley & Sons, Inc.'s (NYSE:JW.A) announced its latest earnings update in June 2019, which suggested that the business faced a substantial headwind with earnings deteriorating by -12%. Below, I've laid out key numbers on how market analysts perceive John Wiley & Sons's earnings growth outlook over the next couple of years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
View our latest analysis for John Wiley & Sons
Analysts' outlook for the upcoming year seems pessimistic, with earnings falling by a double-digit -19%. Over the medium term, earnings will begin to improve, rising year on year, and reaching US$199m by 2022.
While it’s useful to be aware of the growth each year relative to today’s value, it may be more beneficial to determine the rate at which the business is moving every year, on average. The advantage of this approach is that it ignores near term flucuations and accounts for the overarching direction of John Wiley & Sons's earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I've inserted a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 4.6%. This means that, we can anticipate John Wiley & Sons will grow its earnings by 4.6% every year for the next couple of years.
For John Wiley & Sons, I've put together three fundamental factors you should further research:
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 JW.A 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 JW.A is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of JW.A? 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. |
China launches anti-dumping investigation into synthetic rubber product
BEIJING (Reuters) - China's Commerce Ministry said on Wednesday it is launching an anti-dumping investigation imports of a synthetic rubber product from the United States, South Korea and the European Union following a request from major petrochemical producers.
The investigation into ethylene propylene diene monomer rubber (EPDM) should be finished by June 19, 2020, but can be extended further under special circumstances, the ministry said in a statement.
The trade measures were launched at the request of Jilin Petrochemical, a unit of China National Petroleum Corp (CNPC), and Shanghai Sinopec Mitsui Elastomers Co. Ltd, the statement said., The companies are top producers of EPDM, a chemical product that is widely used for electric cables and tyres.
In 2018, the United States sold 105,797 tonnes of EPDM to China, while imports from South Korea were 53,413 tonnes. That same year the European Union exported 25,368 tonnes of the chemical product to China. The data for all three countries was in an application document submitted by the two Chinese companies published on the ministry's website.
Total shipments from the three countries and region account for almost 80% of China's overall EPDM imports, according to the document.
Export prices of EPDM from the U.S., South Korea and European Union were below the prices of the product in their domestic markets, and the dumping into China had caused substantial damage to the applicants, the document said.
(Reporting by Beijing Monitoring Desk, Hallie Gu and Shivani Singh; Editing by Jacqueline Wong and Christian Schmollinger) |
Political betting: 85% chance Boris Johnson is next UK prime minister
Boris Johnson and Theresa May. Photo: Thierry Charlier/Pool Photo via AP Boris Johnson has an 85% chance of winning the Tory leadership race and becoming the next UK prime minister, according to a bookmaker. Online betting firm Smarkets says former London mayor Johnson is almost certain to make it to the last two in the race to lead the Conservative party. Foreign secretary Jeremy Hunt is tipped by Smarkets to join Johnson in the final shortlist of the two frontrunners chosen by MPs, who then face a ballot of party members. Hunt’s chances of getting to the final two were reported at 58% after the candidates fought it out in the ‘Our Next Prime Minister’ debate on TV on Tuesday night. Voting gets underway today in another round among Conservative MPs, after staunch Brexiteer Dominic Raab was eliminated from the race yesterday. Smarkets said punters had already gambled more than £2m on the race to lead the UK at a critical moment as it prepares to leave the EU. Smarkets: probability of next prime minister READ MORE: The big hole in Boris Johnson’s Brexit plans The growing prospect of a Johnson premiership has unnerved financial markets and many businesses in recent weeks, sending the pound to near five-month lows amid fears he would embrace a no-deal Brexit. Sarbjit Bakhshi, Smarkets head of political markets, said: “The leadership of the Conservative party has arguably never been as important as it is now. “The next Tory leader is likely to be chosen on their ability to fight off the populist threats of Nigel Farage and Jeremy Corbyn in a general election (35% this year on our market), rather than govern in the traditional sense.” Smarkets also says Britain is most likely to leave the EU between September and Decemer this year, though the odds (38%) are only marginally higher than the odds for a post-2021 departure (35%). The firm says there is a 72% chance Britain won’t leave on the exact scheduled date of 72%. READ MORE: Pound inches higher as Johnson ‘plans two-year Brexit transition’ |
Profit Projections Are Still Plunging for the 3 Most Popular Pot Stocks
Legal marijuana projects as one of the fastest-growing industries for the next couple of years. It generated$12.2 billion in global sales in 2018, and the team of Arcview Market Research and BDS Analytics have forecast worldwide revenue of $31.3 billion by 2022. This works out to a compound annual growth rate of 26.6% over the next four years.
Yet, despite this growth, we witnessed a strange occurrence during the first few months of 2019. Namely, profit projections (or loss estimates for some marijuana stocks) for the following year, fiscal 2020, have been worsening. While it's not uncommon for Wall Street's consensus estimates to be all over the place for nascent but fast-growing industries, the expectation had been that thisdecline in 2020 profit projectionswould ebb after a few months. Unfortunately, that's not been the case.
Image source: Getty Images.
A quick examination of the three most popular pot stocks --Canopy Growth(NYSE: CGC),Aurora Cannabis(NYSE: ACB), andCronos Group(NASDAQ: CRON)-- reveals that Wall Street's fiscal 2020 consensus estimate for these companies continues to plunge.
Three months ago, Canopy Growth, Aurora Cannabis, and Cronos Group were respectively expected to deliver (all figures in Canadian dollars) a loss of CA$0.24, a profit of CA$0.03, and a profit of CA$0.16 in fiscal 2020. But as of this past weekend, those estimates had plunged to a consensus loss of CA$0.42 for Canopy, a loss of CA$0.06 for Aurora, and a mere CA$0.04 profit for Cronos. At the rate things have progressed, all three may lose money in 2020 after pretty much every pundit called for healthy profits by 2020 for a vast majority of marijuana stocks.
This is a problem, given thatearnings results actually matter now. With Canada having legalized recreational marijuana in October, more than 40 countries in the world now allowing some form of medical cannabis use, and a fifth of the U.S. market soon allowing adult-use weed sales (once Illinois kicks off sales on Jan. 1, 2020), marijuana stocks no longer have any excuses to mask their premium valuations. As a result, we've seen a number of high-profile pot stocks, including Canopy, Aurora, and Cronos, taken to the proverbial woodshed in the second quarter.
Image source: Getty Images.
What's to blame, you ask?
Part of the problem rests with regulatory red tape to our north. Regulatory agency Health Canada has been contending with abacklog of more than 800 applications, many of which are for cultivation. The agency recently announced a change that will require growers to complete production facilities prior to submitting a cultivation license application. This should remove underfunded growers from the application backlog and potentially expedite a process that can take months, or even more than a year, in some cases, to complete. Perhaps in 12 months, or a bit longer, this cultivation application backlog will be no more. Unfortunately, the sales license application backlogis another story altogether.
Canada has also been contending with a shortage of compliant packaging solutions. Health Canada laid out a laundry list of regulations that growers would need to abide by if they want their product to make it onto dispensary store shelves. This demanding list has kept a lot of cannabis sitting on the sidelines for the time being.
But you can also place some of the blame on the growers themselves. For starters, growers weren't exactly willing to boost production well in advance of the Cannabis Act becoming law. Since capacity expansion is costly, companies like Canopy, Aurora, and Cronos waited until very late 2017 or early 2018 before really getting to work on production expansion. This relatively late start has left manyoperating at nowhere near their peak capacity.
Image source: Getty Images.
These aforementioned popular pot stocks haven't exactly been putting their shareholders first, either. In order to facilitate their expansion, these companies have been issuing shares of their stock like it's going out of style. Although these share issuances have successfully raised needed capital, a ballooning outstanding share count has a tendency to weigh on profits, since it means net income is divided into a greater number of sharers. Between Auroraissuing roughly 1 billion sharesin less than five years, and both Canopy and Cronos ballooning their share counts through bought-deal offerings and somewhat recent equity investments, these companies aren't exactly putting themselves in the best position to grow their bottom lines right now.
Long story short, sales are expected to rise significantly for Canopy, Aurora, and Cronos, but nothing suggests that they'll be ready to turn the corner to recurring profitability before the end of 2020. That makes these three popular pot stocks potentially risky investments.
More From The Motley Fool
• Beginner's Guide to Investing in Marijuana Stocks
• Marijuana Stocks Are Overhyped: 10 Better Buys for You Now
• Your 2019 Guide to Investing in Marijuana Stocks
Sean Williamshas no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy. |
Trump administration replaces Obama-era power plant rule, in boost to coal
By Valerie Volcovici
(Reuters) - The Trump administration finalized a new carbon emissions rule for U.S. power plants on Wednesday that it said could cut pollution without damaging the coal industry, replacing a much tougher Obama-era version to fight climate change.
The move was a boost to coal companies facing tough competition from natural gas, solar and wind energy suppliers, but infuriated environmentalists and Democratic lawmakers who said the regulation was too weak to significantly reduce emissions and would put public health at risk.
The so-called Affordable Clean Energy (ACE) rule gives states three years to devise their own plans to cut emissions mainly by encouraging coal-fired power plants to improve their efficiency, the Environmental Protection Agency said.
"Our ACE rule will incentivize new technology which will ensure coal plants will be part of a cleaner future," EPA Administrator Andrew Wheeler said at an event at agency headquarters attended by coal state lawmakers, White House chief of staff Mick Mulvaney and a dozen coal miners in uniform.
The ACE sets guidelines for states to developF performance standards for power plants to boost the amount of power produced relative to the amount of coal burned. It listed six existing "candidate technologies" plants can use to do so, including duct leakage control and boiler feed pumps.
Obama's Clean Power Plan, by contrast, had aimed to slash power plant carbon emissions by more than a third from 2005 levels by 2030 by pushing utilities to drop coal in favor of cleaner fuels like natural gas, solar and wind.
That regulation was never enacted because of lawsuits by Republican states. It was stayed by the Supreme Court in 2016.Wheeler said the ACE was written "within the four corners of the Clean Air Act" by confining reduction requirements directly on power plants, not allowing a more systemwide approach.
"States will be given the flexibility to design a plan that best suits their citizens environmental and energy needs," according to a summary of the rule, which estimated a cut in carbon emissions of 35% from 2005 levels by 2030.
President Donald Trump had vowed early in his presidency to kill the Clean Power Plan as part of his administration's attempt to revive the ailing coal industry, arguing the regulation exceeded the federal government's authority.
"DIRTY POWER PLAN"
Environmentalists, Democrats and some state attorneys general dubbed the regulation the "Dirty Power Plan", saying it would keep coal plants running for longer and is likely to lead to increases, not cuts, in carbon emissions and other pollutants over the next few decades.
"This is an immoral and an illegal attack on clean air, clean energy, and the health of the public, and it shows just how heartless the Trump administration is when it comes to appeasing its polluter allies," said Michael Brune, head of the U.S. environmental group Sierra Club.
U.S. Democratic Senator Tom Carper said the EPA plan was based on "a warped reinterpretation of the Clean Air Act that allows states to decide whether or not to regulate one of the largest sources of carbon emissions in our country."
"At a time when Americans are urging us to take meaningful climate action and reduce our carbon footprint, today’s Dirty Power Plan is a failure of vision and leadership,” he said.
Joe Goffman, executive director of the Environmental & Energy Law Program at Harvard said the new regulation could allow some coal-fired power plants to avoid retirement by making "hardware fixes and operational changes".
But a Reuters survey last October of 44 utilities that have announced plans to shutter coal units in coming years showed none of them expected the new EPA proposal would affect the timing of those retirements - casting doubt on whether it will provide much help to the coal industry.
Domestic coal demand has been sliding in recent years as utilities retiring aging coal-fired units and switch to cheaper supplies of natural gas, along with cleaner energy sources like solar and wind.
Asked after the rule roll out how many coal plants that were at risk of shuttering may get a lifeline with the implementation of ACE, Wheeler told reporters the agency did not analyze this but that states would have more "flexibility" to determine what plants stay open.
White House Chief of Staff Mick Mulvaney said on Wednesday he would take the pen Wheeler used to sign the final rule and give it to Trump as a memento, adding U.S. carbon emissions have fallen in recent years despite a growing economy, proving the Obama rule was not needed.
One item that the ACE rule did not include in its final version is an update to the New Source Review, a program requiring new plants or major upgrades to power plants to obtain environmental permits. The draft proposal allowed plants to skip the NSR permitting in order to allow ACE-mandated efficiency improvements.
Wheeler told reporters after signing the ACE rule that EPA will address NSR reform in a separate rulemaking that will be finalized separate in the coming months but he did not specify a timeline.
(Reporting by Valerie Volcovici; Editing by Sonya Hepinstall and Marguerita Choy) |
Should You Think About Buying Plexus Corp. (NASDAQ:PLXS) Now?
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Plexus Corp. (NASDAQ:PLXS), which is in the electronic business, and is based in United States, received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to $66.25 at one point, and dropping to the lows of $49.53. 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 Plexus's current trading price of $53.91 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 Plexus’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 Plexus
According to my valuation model, Plexus seems to be fairly priced at around 8.9% below my intrinsic value, which means if you buy Plexus today, you’d be paying a reasonable price for it. And if you believe the company’s true value is $59.14, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, Plexus’s low beta implies that the stock is less volatile than the wider market.
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. Though in the case of Plexus, it is expected to deliver a negative earnings growth of -9.2%, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
Are you a shareholder?Currently, PLXS appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to de-risk your portfolio. Is your current exposure to the stock beneficial for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.
Are you a potential investor?If you’ve been keeping an eye on PLXS for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The price seems to be trading at fair value, which means there’s less benefit from mispricing. Furthermore, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help gel your views on PLXS should the price fluctuate below its true value.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Plexus. You can find everything you need to know about Plexus inthe latest infographic research report. If you are no longer interested in Plexus, 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. |
Should You Invest in the Invesco DWA Utilities Momentum ETF (PUI)?
If you're interested in broad exposure to the Utilities - Broad segment of the equity market, look no further than the Invesco DWA Utilities Momentum ETF (PUI), a passively managed exchange traded fund launched on 10/26/2005.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Utilities - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 11, placing it in bottom 31%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $203.73 M, making it one of the average sized ETFs attempting to match the performance of the Utilities - Broad segment of the equity market. PUI seeks to match the performance of the DWA Utilities Technical Leaders Index before fees and expenses.
The DWA Utilities Technical Leaders Index identifies companies that are showing relative strength and are composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.60%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 1%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Utilities sector--about 94.20% of the portfolio.
Looking at individual holdings, American Water Works Co Inc (AWK) accounts for about 4.19% of total assets, followed by Alliant Energy Corp (LNT) and Dte Energy Co (DTE).
The top 10 holdings account for about 37.86% of total assets under management.
Performance and Risk
The ETF has added roughly 13.72% and was up about 25.83% so far this year and in the past one year (as of 06/19/2019), respectively. PUI has traded between $26.94 and $33.03 during this last 52-week period.
The ETF has a beta of 0.30 and standard deviation of 13.92% for the trailing three-year period, making it a medium risk choice in the space. With about 30 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco DWA Utilities Momentum ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, PUI is a reasonable option for those seeking exposure to the Utilities/Infrastructure ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Utilities ETF (VPU) tracks MSCI US Investable Market Utilities 25/50 Index and the Utilities Select Sector SPDR Fund (XLU) tracks Utilities Select Sector Index. Vanguard Utilities ETF has $3.87 B in assets, Utilities Select Sector SPDR Fund has $10.14 B. VPU has an expense ratio of 0.10% and XLU charges 0.13%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportInvesco DWA Utilities Momentum ETF (PUI): ETF Research ReportsDTE Energy Company (DTE) : Free Stock Analysis ReportAlliant Energy Corporation (LNT) : Free Stock Analysis ReportAmerican Water Works Company, Inc. (AWK) : Free Stock Analysis ReportUtilities Select Sector SPDR Fund (XLU): ETF Research ReportsVanguard Utilities ETF (VPU): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment Research |
Is Fidelity High Dividend ETF (FDVV) a Strong ETF Right Now?
Making its debut on 09/12/2016, smart beta exchange traded fund Fidelity High Dividend ETF (FDVV) provides investors broad exposure to the Style Box - All Cap Value category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Because the fund has amassed over $343.42 M, this makes it one of the larger ETFs in the Style Box - All Cap Value. FDVV is managed by Fidelity. FDVV seeks to match the performance of the Fidelity Core Dividend Index before fees and expenses.
The Fidelity Core Dividend Index is designed to reflect the performance of stocks of large and mid-capitalization dividend-paying companies that are expected to continue to pay and grow their dividends.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for this ETF are 0.29%, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 3.03%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 3.28% of the fund's total assets, followed by Procter + Gamble Co/the (PG) and Jpmorgan Chase + Co (JPM).
The top 10 holdings account for about 26.41% of total assets under management.
Performance and Risk
So far this year, FDVV has gained about 10.81%, and was up about 4.97% in the last one year (as of 06/19/2019). During this past 52-week period, the fund has traded between $26 and $31.10.
The fund has a beta of 0.85 and standard deviation of 10.90% for the trailing three-year period. With about 135 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity High Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Invesco High Yield Equity Dividend Achievers ETF (PEY) tracks NASDAQ US Dividend Achievers 50 Index and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Invesco High Yield Equity Dividend Achievers ETF has $831.34 M in assets, iShares Core S&P U.S. Value ETF has $5.55 B. PEY has an expense ratio of 0.54% and IUSV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportFidelity High Dividend ETF (FDVV): ETF Research ReportsJPMorgan Chase & Co. (JPM) : Free Stock Analysis ReportMicrosoft Corporation (MSFT) : Free Stock Analysis ReportiShares Core S&P U.S. Value ETF (IUSV): ETF Research ReportsInvesco High Yield Equity Dividend Achievers ETF (PEY): ETF Research ReportsProcter & Gamble Company (The) (PG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Should iShares Russell Top 200 ETF (IWL) Be on Your Investing Radar?
Launched on 09/22/2009, the iShares Russell Top 200 ETF (IWL) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $239.56 M, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.15%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 2.29%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 22.60% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 5.15% of total assets, followed by Apple Inc (AAPL) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 26.83% of total assets under management.
Performance and Risk
IWL seeks to match the performance of the Russell Top 200 Index before fees and expenses. The Russell Top 200 Index is a float-adjusted, capitalization-weighted index that measures the performance of the largest capitalization sector of the U.S. equity market.
The ETF has gained about 16.72% so far this year and is up roughly 7.56% in the last one year (as of 06/19/2019). In the past 52-week period, it has traded between $54.65 and $68.41.
The ETF has a beta of 1 and standard deviation of 12.64% for the trailing three-year period, making it a medium risk choice in the space. With about 200 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell Top 200 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IWL is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $179.67 B in assets, SPDR S&P 500 ETF has $268.48 B. IVV has an expense ratio of 0.04% and SPY charges 0.09%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportiShares Russell Top 200 ETF (IWL): ETF Research ReportsAmazon.com, Inc. (AMZN) : Free Stock Analysis ReportApple Inc. (AAPL) : Free Stock Analysis ReportMicrosoft Corporation (MSFT) : Free Stock Analysis ReportiShares Core S&P 500 ETF (IVV): ETF Research ReportsSPDR S&P 500 ETF (SPY): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment Research |
How Many Riot Blockchain, Inc. (NASDAQ:RIOT) Shares Do Institutions Own?
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Every investor in Riot Blockchain, Inc. (NASDAQ:RIOT) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. We also tend to see lower insider ownership in companies that were previously publicly owned.
Riot Blockchain is not a large company by global standards. It has a market capitalization of US$43m, 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 delve deeper into each type of owner, to discover more about RIOT.
Check out our latest analysis for Riot Blockchain
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 18% of Riot Blockchain. 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 Riot Blockchain's earnings history, below. Of course, the future is what really matters.
Hedge funds don't have many shares in Riot Blockchain. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
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.
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.
We can see that insiders own shares in Riot Blockchain, Inc.. As individuals, the insiders collectively own US$1.7m worth of the US$43m company. This shows at least some alignment, but I usually like to see larger insider holdings. You canclick here to see if those insiders have been buying or selling.
The general public -- mostly retail investors -- own 77% of Riot Blockchain . With this size of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to decline an acquisition or merger that may not improve profitability.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph.
Ultimatelythe future is most important. You can access thisfreereport on analyst forecasts for the company.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
UK manufacturing sees slowest growth in three years
Workers on an engine production line in a car factory. Photo: Mahaux Charles/AGF/Universal Images Group via Getty Images Manufacturing output in the UK ground to a halt in the past three months, with the 2% growth seen in the sector the slowest since April 2016, according to the Confederation of British Industry (CBI). More worryingly, the total number of orders logged in manufacturing books declined to their lowest level since October 2016, a survey of 308 manufacturers revealed. The slowdown in manufacturing output in the three months to June was primarily due to an 83% decline in motor vehicle production, the largest fall since the financial crisis, the CBI said in a statement. “The bringing forward of planned closures to car manufacturing plants had a real impact and led to manufacturing output grinding to a halt, said Alpesh Paleja, the CBI’s principal economist. “While the picture elsewhere in the sector was more benign, total orders weakened once again revealing some underlying causes for concern.” Export orders, however, improved slightly in the period. Manufacturers also signalled that they expect a slight uptick in output prices in the next three months, even though they think output will also be slow in the three months to July. Output expanded in 10 out of 17 sub-sectors, with chemicals, tobacco and food and drink industries driving growth. But it was not enough to thwart plummeting car production. The news comes at a difficult time for the car industry in the UK. British car production hit a five-year low in 2018, with manufacturers blaming Brexit uncertainty for a massive decrease in investment in the sector. Earlier this month, Ford announced that it would close its Bridgend engine plant in Wales in 2020, with the potential loss of around 1,700 jobs. This followed a similar announcement from Honda, which said in February it would close its Swindon plant in 2021. The same month, Nissan abandoned plans to manufacture its flagship X-Trail SUV vehicle at its Sunderland plant. And in January, Jaguar Land Rover said a substantial proportion of 4,500 worldwide job losses would come from its UK workforce. |
How Much Does the Average American Spend on the Lottery?
The lottery proves that of the many things Americans don't understand, probability ranks near the top. People buy lottery tickets with the idea that somebody has to win -- and that's true, eventually, somebody wins, but the odds are staggeringly bad.
You have a 1 in 292,201,338 chance of winning Powerball and 1 in 302,575,350 odds of winning Mega Millions. You're more likely to get attacked by a shark, killed by a vending machine, be elected president, be struck by lightning, come down with the plague, or be killed by a falling coconut, according to a recentMotley Fool article.
Playing the lottery is wasting your money, but that does not stop Americans from doing it. The average American spent $219.54 on lottery tickets in 2017, according to anew reportfrom LendEDU. That's down $3.50 from 2016 but up $12.85 from 2015, according to the analysis of U.S. census data.
The odds of winning the lottery are pretty much zero. Image source: Getty Images.
In Massachusetts, it wouldn't be unreasonable to put a scratch ticket on the state flag. Citizens of the Bay State spent an average of $737.01 on lottery tickets in 2017. That's the most by a whole lot as Rhode Island came in second at $502.01. And, to put the Massachusetts number in perspective, it's nearly 2% of the average annual household income in the state.
[{"Rank/State": "23. Maine", "Average per capita spending": "$185.53"}, {"Rank/State": "24. Vermont", "Average per capita spending": "$183.42"}, {"Rank/State": "25. S. Dakota", "Average per capita spending": "$173.01"}, {"Rank/State": "26. Indiana", "Average per capita spending": "$169.09"}, {"Rank/State": "27. Texas", "Average per capita spending": "$167.28"}, {"Rank/State": "28. California", "Average per capita spending": "$157.58"}, {"Rank/State": "29. Arkansas", "Average per capita spending": "$140.63"}, {"Rank/State": "30. Idaho", "Average per capita spending": "$126.26"}, {"Rank/State": "31. Arizona", "Average per capita spending": "$113.19"}, {"Rank/State": "32. Iowa", "Average per capita spending": "$111.61"}, {"Rank/State": "33. Wisconsin", "Average per capita spending": "$97.85"}, {"Rank/State": "34. Louisiana", "Average per capita spending": "$92.16"}, {"Rank/State": "35. Minnesota", "Average per capita spending": "$91.61"}, {"Rank/State": "36. Colorado", "Average per capita spending": "$90.35"}, {"Rank/State": "37. Washington", "Average per capita spending": "$89.35"}, {"Rank/State": "38. Nebraska", "Average per capita spending": "$84.33"}, {"Rank/State": "39. Kansas", "Average per capita spending": "$83.36"}, {"Rank/State": "40. New Mexico", "Average per capita spending": "$60.15"}, {"Rank/State": "41. Montana", "Average per capita spending": "$59.52"}, {"Rank/State": "42. Wyoming", "Average per capita spending": "$43.87"}, {"Rank/State": "43. Oklahoma", "Average per capita spending": "$38.42"}, {"Rank/State": "44. N. Dakota", "Average per capita spending": "$34.68"}]
NOTE: Alabama, Alaska, Hawaii, Mississippi, Nevada, Utah, and Washington, D.C., do not offer a lottery. Data source: LendEDU 2017 report on state lottery spending.
Due to its population size, Massachusetts did not generate the most income from the lottery of all 50 states. That honor goes to New York ($8.3 billion), followed by California ($6.2 billion), and Florida ($5.8 billion).
Overall, Americans spent an astounding $71.8billionon the lottery in 2017. That's more than what was spent on video games ($43.8 billion), movies ($11.89 billion), and concerts ($8 billion) combined, according to data provided by LendEDU.
Lottery tickets aren't an investment. They're a waste of money that could be better spent elsewhere or saved. The problem is that saving $500 or so dollars a year is a very long-range plan. In fact, as the Motley Fool'sSean Williams pointed out, investing $250 yearly in the stock market over a 20-year period will earn you about $12,000, assuming the market equals its historical returns.
That's $12,000 instead of, well, nothing, because the odds say you're going to lose if you buy a lottery ticket. And, let's forget the sensible idea of saving this money and think about all the things you could buy with it that would be better than throwing the cash after a senseless dream.
That $250 gets a family of four access to a night at the movies roughly four times. It buys a really nice anniversary dinner or tickets for two to many of the big-ticket concerts (albeit maybe not in great seats).
Playing the lottery isn't a harmless activity. In many cases, it's people wasting money they need elsewhere. It's easy to see a dollar or so a day as not that much. In reality, dollars pile up. If you do put your money to work for you by investing it, you'll have a much better chance of fulfilling your dreams then if you throw it away chasing a near-impossible dream.
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Imagine Owning Grindrod Shipping Holdings (NASDAQ:GRIN) And Trying To Stomach The 72% Share Price Drop
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The art and science of stock market investing requires a tolerance for losing money on some of the shares you buy. But it should be a priority to avoid stomach churning catastrophes, wherever possible. So spare a thought for the long term shareholders ofGrindrod Shipping Holdings Ltd.(NASDAQ:GRIN); the share price is down a whopping 72% in the last twelve months. While some investors are willing to stomach this sort of loss, they are usually professionals who spread their bets thinly. Because Grindrod Shipping Holdings hasn't been listed for many years, the market is still learning about how the business performs. Furthermore, it's down 12% in about a quarter. That's not much fun for holders.
View our latest analysis for Grindrod Shipping Holdings
Because Grindrod Shipping Holdings 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. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In just one year Grindrod Shipping Holdings saw its revenue fall by 22%. That's not what investors generally want to see. The market obviously agrees, since the share price tanked 72%. That's a stern reminder that profitless companies need to grow the top line, at the very least. Of course, extreme share price falls can be an opportunity for those who are willing to really dig deeper to understand a high risk company like this.
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.
You can see how its balance sheet has strengthened (or weakened) over time in thisfreeinteractive graphic.
While Grindrod Shipping Holdings shareholders are down 72% for the year, the market itself is up 4.6%. 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. The share price decline has continued throughout the most recent three months, down 12%, suggesting an absence of enthusiasm from investors. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. You might want to assessthis data-rich visualizationof its earnings, revenue and cash flow.
Of courseGrindrod Shipping Holdings may not be the best stock to buy. So you may wish to see thisfreecollection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on 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. |
British tourist 'kicked off Turkish Airlines flight over nut allergy'
Josh Silver, pictured with girlfriend Flavia, claims he was kicked off a plane after revealing he had a nut allergy (SWNS) A British holiday-maker says he has been discriminated against after he was removed from a Turkish Airlines flight after he told cabin crew that he had a nut allergy . Josh Silver says he told a female flight attendant of his allergy while boarding the plane from Turkeys Antalya airport on a flight back to the UK. The 25-year-old, who was travelling with girlfriend Flavia Ivanaj, had informed the airline of his condition on the way out and been assured it was not a problem. But he was horrified when the attendant returned to him shortly before take off and told him that he would have to leave the aircraft immediately. Mr Silver refused to leave the aircraft but the crew called armed Turkish police officers who boarded the plane and escorted him and his girlfriend off on Friday, June 7. Mr Silver claims he was kicked off the Turkish Airlines flight after telling a member of the cabin crew about his allergy (SWNS) He was later forced to pay £550 for another airline to fly him back home. Mr Silver, from Waltham Abbey, Essex, said: "I feel discriminated against for having a medical problem, I hadn't done anything illegal or intoxicated." His allergy is not airborne, meaning he will not suffer an anaphylactic reaction unless he consumes a product containing nuts. Read more Yahoo News UK: Torrential rain and thunderstorms lash parts of the UK overnight Four suspects expected to be named for downing of MH17 jet Tory leadership candidates clash over Brexit in televised debate Mr Silver said that he told staff that he was allowed to fly out by Turkish Airlines, and refused to leave his seat. He added: "It really hit a few emotions, I started to cause a scene if I'm honest. Turkish Airlines called the police to escort Josh and Flavia off the plane. The 5-year-old was forced to pay a further £550 for another airline to fly him back home (SWNS) Mr Silver said: "The police put hands on my girlfriend and they removed us from the flight, they took out passports from us and kicked us off the flight. "The entire ordeal was over in an hour, it was really overwhelming. "My girlfriend was really stressed and upset by the whole thing, I told her to just stay on the flight and go home but she refused." Story continues The events manager is furious at his treatment by Turkish Airlines but also at the airline industry's refusal to put a blanket ban on nut products in planes. He said: "They're putting people's lives in the airline's hands, if someone doesn't know they have a nut allergy and have an attack in the air it will be catastrophic. "It is so easy to just ban nuts, it is such a dangerous condition." Turkish Airlines have been approached for comment. |
Is Acadia Healthcare Company, Inc. (NASDAQ:ACHC) A Financially Sound Company?
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Investors are always looking for growth in small-cap stocks like Acadia Healthcare Company, Inc. (NASDAQ:ACHC), with a market cap of US$3.0b. However, an important fact which most ignore is: how financially healthy is the business? Since ACHC is loss-making right now, it’s essential to evaluate the current state of its operations and pathway to profitability. The following basic checks can help you get a picture of the company's balance sheet strength. However, this is just a partial view of the stock, and I’d encourage you todig deeper yourself into ACHC here.
ACHC's debt levels surged from US$3.2b to US$3.8b over the last 12 months , which includes long-term debt. With this increase in debt, the current cash and short-term investment levels stands at US$44m to keep the business going. On top of this, ACHC has generated cash from operations of US$385m in the last twelve months, leading to an operating cash to total debt ratio of 10%, indicating that ACHC’s debt is not covered by operating cash.
At the current liabilities level of US$425m, it appears that the company has been able to meet these obligations given the level of current assets of US$453m, with a current ratio of 1.07x. The current ratio is calculated by dividing current assets by current liabilities. Generally, for Healthcare companies, this is a reasonable ratio since there's a sufficient cash cushion without leaving too much capital idle or in low-earning investments.
ACHC is a highly-leveraged company with debt exceeding equity by over 100%. This is a bit unusual for a small-cap stock, since they generally have a harder time borrowing than large more established companies. However, since ACHC is presently loss-making, sustainability of its current state of operations becomes a concern. Maintaining a high level of debt, while revenues are still below costs, can be dangerous as liquidity tends to dry up in unexpected downturns.
Although ACHC’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised. This may mean this is an optimal capital structure for the business, given that it is also meeting its short-term commitment. Keep in mind I haven't considered other factors such as how ACHC has been performing in the past. You should continue to research Acadia Healthcare Company to get a better picture of the small-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for ACHC’s future growth? Take a look at ourfree research report of analyst consensusfor ACHC’s outlook.
2. Valuation: What is ACHC 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 ACHC 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. |
4 ETFs to Bet on Global Aging Population
The global population is aging fast. The number of persons aged 60 years or above is expected to increase from 962 million in 2017 to about 2.1 billion by 2050, according to UN. The aged population comprises 13% of the global populace and is rising at a rate of about 3% per year.
The UN report says that the number of persons aged 80 or over is projected to triple by 2050, from 137 million in 2017. BlackRock noted that “by 2050 a third of the population of 55 countries will be over 60 years old.” The average life expectancy will rise to 73 in 2025 from 65 years in 1995.
While emerging markets are younger relative to developed economies, the former are aging more quickly now than previous years, per Global X. “In recent decades, China saw its life expectancy rise from 67 to 75 and its fertility rate drop from 2.8 to 1.7, now below replacement levels.”
Why Such Trend?
Lower fertility rates will result in slower population growth and aging population, per un.org. Advanced medical treatment and societal changes like urbanization and rollout of social security systems to supplement old-age income also increased life expectancy. UN report suggests that international migration has also led to changing population age structures in some countries and regions. This is because the countries that are witnessing large inflows in immigrants tend to see less overall aging population as immigrants are normally younger.
InvestmentOpportunities From Ageing Population
Aging global population means that a considerable amount of global disposable income is governed by the senior population. The trend results in a huge long-term care market. Janus Henderson — the ETF issuer — noted that Americans with the need of severe long-term service and support will jump to 140%. So, one can expect solid investment in the broader healthcare sectors. The long-term care market in the United States, for example, is expected to grow to $550 billion by 2024.
Against this backdrop, below we highlight a few ETFs that should benefit from fast-aging global population.
Long-Term Care ETF (OLD)
It looks to follow the Solactive Long-Term Care Index. The index tracks the performance of companies globally that are positioned to profit from providing long-term care to the aging population, including companies owning or operating senior living facilities, nursing services, specialty hospitals and senior housing, biotech companies for age-related illnesses, and companies that sell products and services to such facilities. The fund charges 35 bps in fees.
Global X Longevity Thematic ETFLNGR
The fund follows the Indxx Global Longevity Thematic Index. The index tracks the performance of companies listed in developed markets that are somehow contributing to increased life spans of the senior population worldwide. The fund charges 50 bps in fees.
Health Care Select Sector SPDR Fund (XLV)
Seniors’ spending on healthcare is expected to be $4 trillion in 2032 from $1.6 trillion in 2012. The broader healthcare fund invests 32.77% in pharmaceuticals, 24.65% in healthcare equipment & supplies, 18.95% in healthcare providers & services, 15.53% biotechnology and 7.4% life sciences tools & services. The fund has a Zacks Rank #2 (Buy).
ProShares S&P 500 Dividend Aristocrats ETF (NOBL)
By the end of this decade, 60+ population will have $15 trillion in spending power, almost double the figure noted in 2010. In the United States, this group of population has the highest median net worth than any other age group, per Global X.
So, one needs to track their investment pattern also. Since a retirement portfolio is likely to be safe and sound, dividend-growing stocks are sure to be loved by retirees. These stocks normally have strong fundamentals and safeguard investors during turbulent times.
The underlying S&P 500 Dividend Aristocrats Index of the fund targets companies that have increased dividend payments each year for at least 25 years. The fund NOBL has a Zacks Rank #2 (read: An ETF Retirement Portfolio for 2019).
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportThe Long-Term Care ETF (OLD): ETF Research ReportsHealth Care Select Sector SPDR Fund (XLV): ETF Research ReportsProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research ReportsGlobal X Longevity Thematic ETF (LNGR): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report |
Eurofighter, NATO launch studies on long-term evolution of fighter
PARIS (Reuters) - The countries and companies behind Europe's Eurofighter Typhoon fighter jet have agreed to spend 53.7 million euros ($60.2 million) to study the long-term evolution of the advanced fighter jet and its engine, they said on Wednesday. The study contracts will span 19 months for the aircraft, and nine months for the engine, identifying potential technology enhancements for the jet's mission systems, engine, human machine interface and electronic warfare equipment. The work is aimed at keeping the Eurofighter Typhoon fleet operationally effective for combat for decades to come, even as Europe begins work on two rival next-generation aircraft that are slated to enter service in 2040, officials said. The Eurofighter consortium includes Airbus, Britain's BAE Systems and Italy's Leonardo. Airbus and France's Dassault Aviation have begun work on a new combat air system to be funded by Germany, France and Spain. BAE Systems and Leonardo are working on a rival project known as Tempest. Italian General Gabriele Salvestroni, general manager of the NATO Eurofighter & Tornado Management Agency (NETMA), said the study contracts marked a new chapter in the jet's history. "The LTE study contracts will set out a clear road map for the future of the platform that will make it relevant and resilient for decades to come," he said. The Eurofighter Typhoon has racked up more than 530,000 flying hours, with 623 aircraft ordered and 558 delivered. Peter Maute, Eurofighter director of marketing, said 150 to 200 more aircraft could be sold to international customers in coming years, on top of already approved orders expected from partner countries such as Germany. The Eurofighter is competing for orders against the U.S. F-35 fighter jet built by Lockheed Martin and Boeing Co's F/A-18E/F Super Hornet in Switzerland and Finland. Maute said the company was also still engaged in a competition in Canada, and had not yet decided whether to proceed. (Reporting by Andrea Shalal; Editing by Mark Potter) |
Is Clearside Biomedical, Inc.'s (NASDAQ:CLSD) Balance Sheet A Threat To Its Future?
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Investors are always looking for growth in small-cap stocks like Clearside Biomedical, Inc. (NASDAQ:CLSD), with a market cap of US$40m. However, an important fact which most ignore is: how financially healthy is the business? Given that CLSD is not presently profitable, it’s crucial to assess the current state of its operations and pathway to profitability. The following basic checks can help you get a picture of the company's balance sheet strength. Nevertheless, potential investors would need to take a closer look, and I suggest youdig deeper yourself into CLSD here.
CLSD has built up its total debt levels in the last twelve months, from US$7.3m to US$12m – this includes long-term debt. With this growth in debt, the current cash and short-term investment levels stands at US$35m to keep the business going. We note it produced negative cash flow over the last twelve months. For this article’s sake, I won’t be looking at this today, but you can take a look at some of CLSD’soperating efficiency ratios such as ROA here.
Looking at CLSD’s US$12m in current liabilities, it appears that the company has been able to meet these commitments with a current assets level of US$35m, leading to a 3.04x current account ratio. The current ratio is calculated by dividing current assets by current liabilities. Having said that, a ratio greater than 3x may be considered high by some.
With debt reaching 62% of equity, CLSD may be thought of as relatively highly levered. This is a bit unusual for a small-cap stock, since they generally have a harder time borrowing than large more established companies. But since CLSD is presently unprofitable, there’s a question of sustainability of its current operations. 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 CLSD’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 CLSD's liquidity needs, this may be its optimal capital structure for the time being. I admit this is a fairly basic analysis for CLSD's financial health. Other important fundamentals need to be considered alongside. You should continue to research Clearside Biomedical to get a better picture of the small-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for CLSD’s future growth? Take a look at ourfree research report of analyst consensusfor CLSD’s outlook.
2. Historical Performance: What has CLSD'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. |
Is GP Strategies Corporation's (NYSE:GPX) Balance Sheet Strong Enough To Weather A Storm?
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While small-cap stocks, such as GP Strategies Corporation (NYSE:GPX) with its market cap of US$246m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. Assessing first and foremost the financial health is vital, 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’d encourage you todig deeper yourself into GPX here.
Over the past year, GPX has ramped up its debt from US$69m to US$150m , which accounts for long term debt. With this increase in debt, GPX currently has US$8.4m remaining in cash and short-term investments , ready to be used for running the business. Its negative operating cash flow means calculating cash-to-debt wouldn't be useful. For this article’s sake, I won’t be looking at this today, but you can take a look at some of GPX’soperating efficiency ratios such as ROA here.
Looking at GPX’s US$120m in current liabilities, it seems that the business has been able to meet these commitments with a current assets level of US$218m, leading to a 1.83x current account ratio. The current ratio is calculated by dividing current assets by current liabilities. Generally, for Professional Services companies, this is a reasonable ratio since there's a sufficient cash cushion without leaving too much capital idle or in low-earning investments.
GPX is a relatively highly levered company with a debt-to-equity of 61%. 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 GPX's case, the ratio of 4.72x suggests that interest is appropriately covered, which means that debtors may be willing to loan the company more money, giving GPX ample headroom to grow its debt facilities.
GPX’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 GPX'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 GPX has been performing in the past. I suggest you continue to research GP Strategies to get a better picture of the small-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for GPX’s future growth? Take a look at ourfree research report of analyst consensusfor GPX’s outlook.
2. Historical Performance: What has GPX'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. |
Oil Prices Turn Higher After Bullish U.S. Inventory Data
Investing.com - Official government data released Wednesday showed a larger-than-expected fall in U.S. crude inventories, sparking a turnaround in oil prices.
The Energy Information Administration said in its regular weekly report thatcrude oil inventoriesdecreased by 3.11 million barrels in the week to June 14.
That was compared to forecasts for a stockpile draw of 1.08 million barrels after a build of 2.21 million barrels in the previous week.
The EIA report also showed thatgasoline inventoriesunexpectedly decreased by 1.69 million barrels, compared to expectations for a gain of 0.94 million barrels, whiledistillate stockpilesdropped by 0.55 million barrels, compared to forecasts for a build of 0.71 million.
U.S. crude prices turned around and headed higher immediately folllowing the bullish report. They were last up 0.6% at $54.41 a barrel by 10:50 AM ET (14:50 GMT), compared to $53.66 prior to the publication.
London-traded Brent crude futures rose 0.4% to $62.41 a barrel, compared to $61.63 ahead of the release.
“After what seemed like an eternity, the bulls have got their first break for the summer run of both crude and products,” Investing.com senior commodity analyst Barani Krishnan commented on the report.
Krishnan noted, however, that the limited upside reaction to the numbers was due to the fact that stockpiles remain restrained by builds seen in previous weeks and the fact that “the market's waiting for the Fed to see if the other big thing for the day - a rate-cut complementing statement - comes in.”
“But it’s an all-round encouraging number if you consider that production didn’t go ramping up, Cushing built by just around 700,000 barrels, exports were steady and refinery runs are closing in on the seasonal rate of 95% and above to capacity,” he explained.
Earlier, oil had traded lower as investors took profits. U.S. crude surged nearly 4% on Tuesday after U.S. President Donald Trump revived hopes that a trade deal could be made with China.
Trump tweeted that he had a good conversation with Chinese President Xi Jinping and trade negotiations were planned to restart ahead of an “extended meeting” between the two world leaders at the G20 summit next week.
The more upbeat tone sent a sigh of relief through oil markets as it reduced the danger of an economic fallout that could hamper demand for crude.
Elsewhere, and at first glance, the fact that OPEC finally managed to reset the dates for its meeting to extend the agreement on production cuts would be seen as a bullish sign.
After months of bickering, OPEC members finally agreed on Wednesday to push back their official meeting to July 1, followed by a meeting with non-OPEC allies on July 2, switching from previously agreed dates of June 25-26.
However, OPEC sources told Reuters that the difficulty in obtaining the delay was a sign that future meetings and decisions could be even more difficult.
Iran was blamed as the wrench in the works as it seeks a bigger say under the pressure of U.S. sanctions.
“An emboldened Iran could complicate matters for OPEC next month,” Krishnan said.
“It could use its position as one of the cartel’s original five founding members to block any consensus from easily being reached by the 14-nation grouping, which largely takes its direction from Saudi Energy Minister Khalid al-Falih and his UAE counterpart Suhail al-Mazroui,” he explained.
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Gold Mining ETF (SGDM) Hits New 52-Week High
For investors seeking momentum,Sprott Gold Miners ETF (SGDM)is probably on radar now. The fund just hit a 52-week high, and is up 39.7% from its 52-week low price of $14.69 per share.
But are more gains in store for this ETF? Let's take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
SGDM in FocusThis fund provides exposure to the performance of gold and silver mining companies whose stocks are traded on major U.S. exchanges. It charges investors 57 basis points a year in fees (see: all Materials ETFs here).Why the Move?
Gold is hovering around a 14-month high and is gaining for the fourth straight week — the longest run since January. Hopes of a Fed rate cut and still-alive, risk-off trade sentiment amid yet-unresolved U.S.-China trade tensions are the drivers. Acting as a leveraged play on the underlying metal prices, metal miners are sure to gain from this trend.
More Gains Ahead?The fund has a positive weighted alpha of 13.90, which hints at more gains. So, there is definitely still some promise for those who want to ride on this ETF a little longer.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportSprott Gold Miners ETF (SGDM): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report |
For All Of The Problems Facing Qualcomm Stock, China Looms Largest
Qualcomm(NASDAQ:QCOM), one of the largest U.S. semiconductor makers, has been on a roller coaster ride this year. Following some favorable legal wranglings againstApple(NASDAQ:AAPL), QCOM stock surged in April before giving back all those gains in May.
Source:Karlis Dambrans via Flickr
That retreats came as Qualcomm and some rival domestic semiconductor manufacturers found themselves front and center in the U.S.-Chinatrade imbroglio. Over the past month, Qualcomm stock is off by 16.54%, a loss that is more than 1,000 basis points worse than the decline by the widely followedPHLX Semiconductor indexover the same period.
Many of the recent ills endured by Qualcomm stock are attributable to the company’s relationship with the controversial Chinese company Huawei, which was recently blacklisted by U.S. regulators.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
“While coverage surrounding the U.S. government’sHuawei banhas focused primarily on how the Chinese tech giant will be affected, it’s worth remembering that the company’s U.S. suppliers also stand to lose a great deal of money in the fallout of President Trump’s executive order,”reported TechRadar.
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Coming down hard on a Chinese company can make for good politics, but there are consequences for American companies, too, particularly in the technology sector. In fact, Qualcomm and rivalIntel(NASDAQ:INTC) are among the firms lobbying hard against the Huawei ban.
Other Qualcomm rivals, notablyBroadcom(NASDAQ:AVGO), aredelivering glumearnings or revenue guidance, citing the China trade war.
May was a bad month for QCOM stock for reasons besides China. Actually, trade tensions were more like another sour ingredient to an already-toxic cocktail that was Qualcomm stock last month. The shares were hit by a double-digit loss on May 24 after U.S. District Judge Lucy Koh ruled in favor of the Federal Trade Commission (FTC) in an antitrust action it brought against Qualcomm.
The judge ruled the company used its strong position in the wireless chip market to charge excessive royalties for its patents, unlawfully hurting competition,Barron’s reported.
Of course, Qualcomm is appealing that ruling to the U.S. Court of Appeals for the 9th Circuit, representing yet another legal overhang for QCOM stock and that means uncertainty and there’s nothing that markets hate more than uncertainty.
“We fully expect Qualcomm to appeal this ruling and try to get the injunctive remedies put off,” saidMorningstar analysts. “We don’t believe Qualcomm’s recent licensing agreement with Apple is at risk, yet. That said, we are lowering our fair value estimate for narrow-moat Qualcomm from $80 to $72 and increasing our uncertainty rating to very high as we believe there is too much up in the air related to this ruling and the ongoing Huawei-related issues.”
Swap “ucertainty” for “lack of clarity,” and that’s how other analysts are viewing Qualcomm stock right following the company’s legal scrap with the FTC.
• 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019
“What is clear is that this decision was entirely unexpected and the impact on the business model could be material, assuming QCOM loses on appeal,” said Evercore ISI analyst C.J. Muse. “No changes to our rating and price target now as we await more clarity, but there is no doubt this decision will drive shares lower and potentially keep investors (again) on the sidelines until there is more clarity to the certainty of QCOM’s royalty and chipset businesses. We will come back as soon as we have more clarity.”
On a technical basis, QCOM stock has support at $69, but a violation of that area could result in a decline down to the 200-day moving average morethan 9% away.
The company’s next earnings report is due on July 24 and analysts are expecting Qualcomm to post earnings of62 cents a share. Should negative guidance, a la Broadcom, emerge, QCOM stock would likely be punished.
Additionally, Qualcomm stock trades well below the average analyst price target of almost $89, meaning that if the sell-side starts revising that forecast down, with several negative revisions in a condensed period of time, the shares will sag.
Todd Shriber does not own any of the aforementioned securities.
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Britain's Tesco says no timetable for 'finest' store launch
LONDON (Reuters) - Tesco, Britain's biggest retailer, said it is considering a trial of an upmarket convenience store under the 'Tesco finest' banner but has not disclosed when or where a pilot will be launched.
Tesco hosted a capital markets day for analysts and investors on Tuesday at which it presented a slide flagging an opportunity for a 'Tesco finest' store concept with a 7% operating margin - significantly ahead of the group-wide target of 3.5% to 4%.
The premium 'finest' range of grocery products is Tesco's most expensive.
"'Tesco finest' as a brand is one of the largest food brands in the country. We have a very high percentage of more upmarket customers," Chief Executive Dave Lewis told reporters on Wednesday.
"The opportunity to curate that range and bring new things in a more convenient outlet is something that we have tested, is something we're interested in."
But Lewis said Tesco is: "Not at a place where we are saying we're going to open this shop or this many shops."
The CEO said the point of the capital markets day was to share with investors a number of growth opportunities Tesco is actively looking at without giving specific details on timings.
"No dates for any of the initiatives were given yesterday," he said.
News of Tesco's new concept sent shares in upmarket food retailer Marks & Spencer down as much as 4.5% on Wednesday on competition fears.
Last year Tesco launched the Jack's chain to compete with German-owned discounters Aldi and Lidl.
Other initiatives Tesco discussed on Tuesday include opportunities to sell more unique brands and online meal subscriptions, developing its Clubcard loyalty program with a subscription model, setting-up mini fulfillment centers at the back of stores for online grocery, and delivery robots.
Celebrating its 100th year, Tesco is deep into a recovery plan under Lewis after a 2014 accounting scandal capped a dramatic downturn in its fortunes.
He said in April Tesco had met, or would soon meet, most of the turnaround goals he set in 2016, including a key margin target of earning 3.5 to 4 pence of operating profit for every pound customers spend by the end of its 2019-20 financial year.
Lewis said on Wednesday he did not issue a new margin target at the capital markets day.
"We said there was more opportunity for us to lower cost and that gave us the opportunity to invest back in the customer offer (and) new propositions, or if none of those were available then the opportunity would be to improve margin," he told reporters.
(Reporting by James Davey; editing by Costas Pitas and Louise Heavens) |
Sogou Inc. (NYSE:SOGO) Has Attractive Fundamentals
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I've been keeping an eye on Sogou Inc. (NYSE:SOGO) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe SOGO has a lot to offer. Basically, it is a company with impressive financial health as well as a excellent future outlook. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at thereport on Sogou here.
SOGO is an attractive stock for growth-seeking investors, with an expected earnings growth of 22% in the upcoming year, made up of high-quality, operational cash from its core business, which is expected to increase by 51% next year. This indicates a high-quality bottom-line expansion, as opposed to those driven by unsustainable cost-cutting activities. SOGO's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that SOGO manages its cash and cost levels well, which is a key determinant of the company’s health. Investors should not worry about SOGO’s debt levels because the company has none! This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
For Sogou, there are three key aspects you should look at:
1. Historical Performance: What has SOGO'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. Valuation: What is SOGO 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 SOGO is currently mispriced by the market.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of SOGO? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Have Insiders Been Buying 1933 Industries Inc. (CNSX:TGIF) Shares?
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in1933 Industries Inc.(CNSX:TGIF).
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia Universitystudyfound that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
View our latest analysis for 1933 Industries
While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading.
Over the last year, we can see that insiders have bought 120k shares worth CA$61k. In the last twelve months 1933 Industries insiders were buying shares, but not selling. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably donotwant to miss thisfreelist of growing companies that insiders are buying.
Over the last three months, we've seen a bit of insider buying at 1933 Industries. Insiders purchased CA$61k worth of shares in that period. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 6.1% of 1933 Industries shares, worth about CA$7.6m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that 1933 Industries insiders are expecting a bright future. Of course,the future is what matters most. So if you are interested in 1933 Industries, you should check out thisfreereport on analyst forecasts for the company.
But note:1933 Industries may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
SmartRent funding heralds new wave in 'smart home' market
By Herbert Lash
NEW YORK, June 19 (Reuters) - A producer of "smart home" software that helps landlords cut operating costs such as shuttling keys to waiting maintenance workers or guiding tours for prospective tenants has raised $32 million from Bain Capital Ventures and the owners of nearly 1 million U.S. apartments.
Bain led the Series B fundraising round with $25 million on Wednesday for SmartRent, which is up against Latchable Inc and Google Nest for a foothold in the market for technology that helps property owners boost profit margins and generate new revenue streams through add-on services for tenants.
The remaining funds came from RET Ventures, a venture capital fund of 18 U.S. and Canadian property management or investment companies, including five real estate investment trusts. Apartment owners Essex Property Trust Inc and UDR Inc, along with Starwood Capital, the investment arm of billionaire property mogul Barry Sternlicht, also made separate investments in addition to their stakes in RET Ventures.
The companies declined to comment on what valuation the funding round places on SmartRent. Among other services, the Scottsdale, Arizona, startup allows owners to set up self-guided tours for prospective residents and give maintenance and others access to homes with a door lock code.
Investors are betting smart home technology such as remote access to cooling and heating systems and water leak detection will become standard at apartments. These functions will reduce operating costs, including insurance premiums to cover water damage, which can run to more than $10,000 per occurrence.
Access through a mobile device or a numerical lock already has saved Denver-based UDR money, kept residents happy and reduced the hassle of losing or forgetting a key, often late at night, said Jerry Davis, president and chief operating officer.
"We've experienced a reduction in lock-outs, so that increases resident satisfaction. It also means our guys aren't getting called out in the middle of the night and being paid overtime," he said.
At the REITweek conference earlier this month, UDR said it has generated a 25% to 30% return in a pilot program involving 13,300 of its 49,795 apartment units and expects to have SmartRent installed in 20,000 units by the end of summer.
SmartRent's cost, including installing door locks, water sensors and other hardware, ranges from $900 to $1,000 a unit, Davis said. UDR expects residents to pay a $20 to $25 monthly fee, with the program's cost paid off in three to four years and a unit's life estimated at six to seven years, he said.
There are about two dozen connected home or remote-access providers in the market, such as Latchable, maker of the Latch digital lock system, and Alphabet Inc's Google Nest. Last year, Latchable raised $70 million, much of it from real estate heavyweight Brookfield Asset Management Inc, which valued it at $250 million.
SmartRent Chief Executive Lucas Haldeman is a former chief technology officer of Colony American Homes, now Invitation Homes. UDR's Davis said Haldeman impressed RETV members with his knowledge of the apartment market and its needs.
There are about 23 million U.S. apartment units and if each delivers $1,000 in revenue, the market is north of $20 billion, said Matt Harris, a New York-based partner at Bain.
Bain believes smart apartments will become ubiquitous as the technology is rolled out over the next five to 10 years. But apartment owners who get in early will be able to charge for the service, an opportunity that eventually will pass.
Remote access is increasingly an essential feature as package and food deliveries proliferate and baby sitters, dogwalkers and maintenance personnel require access while residents are away, said Yishai Lerner, co-chief executive of JLL Spark, the venture capital fund of Jones Lang LaSalle Inc .
"The adoption curve has gotten from nice to have to must have," said Lerner. (Reporting by Herbert Lash Editing by Dan Burns) |
Brexit tension forces 1 in 10 non-UK workers to quit
Photo: Bethany Legg/Unsplash UK work places have become less accepting towards non-UK workers since the Brexit vote, new research reveals. A survey of over 2,000 employees by job board Jobsite found almost one in 10 (8%) of non-native workers in the UK have had to leave a job since June 2016, due to feeling they didnt fit in. And almost a quarter (23%) of those working in multi-cultural teams said their workplace has become less accepting towards non-British colleagues since the EU referendum. READ MORE: Wages have kept on rising since the Brexit vote In fact, over a third (35%) of non-native workers believe their career progression has been impacted, while a further 13% think they have been overlooked for a promotion due to their cultural background. This is despite a huge majority (95%) of workers believing their workplace is accepting of a multicultural workforce suggesting a disconnect between the impression and reality of Britains workplaces . With 17% of workers born outside of the UK a figure up nearly 13% in 20 years and almost two thirds (63%) of employees belonging to culturally diverse teams, British businesses are benefiting from the wealth of talent from around the globe. READ MORE: Tens of thousands of EU workers may have to pay to keep jobs in UK And according to Jobsites research, a substantial three in five (61%) workers feel cultural diversity makes work more enjoyable a figure that resonates even further with non-native workers, at 71%. Yet the research shows non-native workers from Paris to Peru feel their career progress has been hindered due to their cultural background. And despite the positive impact associated with a diverse workforce, more than two in five (44%) of non-native workers think their organisation should do more to promote cultural diversity and acceptance. READ MORE: Brexit will leave hospitality sector 1 million workers short Cultural misunderstandings can happen all too easily in a diverse workplace. In fact, 84% of employees said they have been involved in one, with a third taking place face-to-face. Story continues There is a whole host of cultural differences to negotiate, from jokes that miss the mark, to different accents and pronunciation, to sarcasm and misused words. But its non-native workers who are most likely to end up humiliated, the survey found. READ MORE: ONS says wages rising at fastest rate in a decade despite Brexit A fifth (21%) of non-native workers said they have felt embarrassed after a workplace miscommunication, compared with just 14% of Brits. Fortunately, some cultural misunderstandings at work have positive outcomes, with a third of all surveyed saying they were able to laugh about the experience, and three in 10 (29%) saying they were able to learn from it. Additionally, four in five non-native workers said they are comfortable talking about their cultural background with colleagues, should any misunderstandings occur. |
Places Where People Spend the Most on Food – 2019 Edition
When buying nourishing food, it’s also important to sustain healthy budgeting and savings habits. Of course, how much you’ll spend on what you eat depends largely on where you live. Food has varying costs in different markets based on a lot of different factors, including the cost of shipping food to that location, the overall cost of living and the local economy. Knowing how much food costs in your area is key to determining your budget and how much you put in yoursavings account, as you have to balance the cost of food with other costs like housing, transportation and leisure activities, all while making sure not to spend above your means.
Below, SmartAsset figured out where people spend the highest percentage of their total income on food. We analyzed data for 22 metro areas across two metrics: average food spending and average household income. For further details about our data sources and how we put it all together to create our final rankings, see the Data & Methodology section below.
Key Findings
• Eating on the go?Five of the cities that are on our list of the top 10 places where people spend the most on food also made it into the top 10 for our study onplaces where people spend the most on transportation: Los Angeles, California; Houston, Texas; Tampa, Florida; Baltimore, Maryland and St. Louis, Missouri. In these locales, eating and commuting are taking a larger bite out of people’s budgets.
• Geography isn’t a major factor.There isn’t a single region that dominates this top 10. Representatives are distributed fairly evenly: Four top-10 contenders are from states in the Western region of the country, three are from states in the South and three are from states in the Midwest.
1. Los Angeles, CA (tie)
The top locale on our list is Los Angeles, California, where the average household spends 11.41% of its annual income on food. With an average household income of $76,471, total food spending comes to $8,727 per year. Residents here may need to be particularly disciplined with theirbudgetsto try to reduce their food expenditures.
1. Houston, TX (tie)
Houston, Texas, ties with Los Angeles for the No. 1 spot. Houstonians also spend 11.41% of their total income on food. A higher average income, though, means the raw dollars total is higher than in LA at $9,153.
3. Honolulu, HI
Food often has to be transported to the Hawaiian Islands, so it makes sense that Hawaii’s capital of Honolulu would have high food costs. The average household there spends about $10,036 a year, the second-highest raw total on this list, which translates to 10.71% of its income. The delicious poke may be worth the extra cost, but it’s important for saving-conscious residents of Hawaii to keep theircost-of-livingin check.
4. Chicago, IL
Chicago, Illinois ranks fourth in our study. Residents of the Windy City spend 10.66% of theirincomeon food, including all those Chicago-style hot dogs. Average annual household income in Chicago, at $76,639, is the fifth-lowest amount for this metric in our study.
5. Tampa, FL
We go to Tampa, Florida to round out the top five. Residents of Tampa spend an average of $6,289 a year on food. This amounts to 10.42% of their average annual household income.
6. San Diego, CA
San Diego, California takes the sixth spot on our list. Residents of this Navy town in Southern California spend, on average, $9,984 on food each year, or 9.99% of their income. For those looking to rein in their grocery bills and find extra savings to invest, afiduciary financial advisorcan help.
7. Baltimore, MD
On the other side of the country, Baltimore, Maryland denizens spend $8,964 on food, including the steamed blue crabs. That’s 9.74% of their yearly income.
8. St. Louis, MO
In St. Louis, Missouri, residents spend $7,300 per year on food, representing 9.59% of an average annual household income of $76,108, which is the third-lowest income amount in the study overall.
9. Minneapolis-St. Paul, MN
Holding the second-to-last spot in our list, the locals in Minneapolis-St. Paul, Minnesota are spending 9.39% of their income on food, for a total of $8,571.
10. Seattle, WA
Seattle, Washington rounds out the top 10 overall, but it has the highest raw total for amount spent annually on food, at $10,958. A high average income, though, means that is just 9.30% of residents’paycheckseach year.
Data and Methodology
In order to find the places where people spend the most on food, we looked at data for all 22 metro areas included in the Bureau of Labor Statistics 2016-2017 Consumer Expenditure Survey. Specifically, we looked at data for the following metrics:
• Average food spending.This is the annual amount that the average household spends on food (including food at home and food away from home). Data is from the Bureau of Labor Statistics 2016-2017 Consumer Expenditure Survey.
• Average household income.This is the annual average household income. Data is from the Bureau of Labor Statistics 2016-2017 Consumer Expenditure Survey.
We divided the average food spending in each metro area by the average household income in that area. The result represents the average food spending as a percentage of total income. We ranked the places according to those percentages, from highest to lowest.
Tips for Managing Your Spending
• Balance your diet but also your budget.A budget is key to responsible spending. Are you spending more than you need to on food or some other expense? Use SmartAsset’sbudget calculatorto help you figure it all out.
• Don’t let research eat up your time.Looking forsome advicewith your finances? Why start from scratch? A professional advisor can help you plan your spending. Find one with SmartAsset’sfree financial advisor matching service. You answer a short questionnaire and we match you with up to three advisors, all fully vetted and free of disclosures. You talk to each advisor, ask questions and decide how you want to proceed.
Questions about our study? Contact us at press@smartasset.com
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Bitcoin’s Price Snaps Longest Daily Win Streak Since 2018
• Bitcoin fell 2.87 percent on Tuesday, ending the longest stretch of daily gains since July 2018. The long-term outlook, however, remains bullish with the 3-day chart calling a move to $10,000.
• On the way higher, BTC may face resistance at the key Fibonacci retracement level of $9,642.
• The hourly and 4-hour charts are reporting bearish indicator divergences. As a result, a correction to key support at $8,600 could be seen before a potential rally to $10,000.
Bitcoin’s (BTC) price closed on a negative note on Tuesday, snapping the longest daily winning streak in 11 months.
The leading cryptocurrency by market value fell 2.87 percent yesterday, having scored 2-5 percent gains in each of the preceding six days.
That was the longest stretch of daily price gains since July 2018. Back then, the price had advanced for seven successive days – from July 13 to July 19 – to hit highs above $7,500, as per data sourceCoinMarketCap.
Related:A New Bitcoin Exchange On the Colombian-Venezuelan Border Will Help Refugees
The latest six-day winning streak saw bitcoin rise from $8,120 to $9,366, possibly due to the hype surrounding Facebook’s foray into cryptocurrencies, Binance.com’s decision to ban US customers and other factors,as discussedon Monday.
On Tuesday, the social media giantofficially launchedits cryptocurrency Libra tomixed reviewswith many expertscallingit a net positive development for bitcoin and cryptocurrencies in general.
Even so, BTC suffered moderate losses, possibly because Facebook’s Libra launch was priced in over the weekend.
Looking forward, the long-term outlook remains bullish with technical charts calling a rise to $10,000. However, in the next 24 hours, a correction to key support near $8,700 could be seen.
Related:70% of Crypto Exchanges Have Complied With CoinMarketCap’s Transparency Initiative
As of writing, BTC is trading largely unchanged on the day at $9,135, according toCoinMarketCap.
BTC’s previous three-day candle closed above the high of $9,006 hit on May 30, establishing another bullish higher high. It is worth noting that the cryptocurrency has charted a series of higher lows and higher highs since early February.
Further, the 5- and 10-candle moving averages (MAs) continue to trend north, indicating a bullish setup and the widely followed relative strength index (RSI) has maintained the bullish bias with a bounce from the ascending trendline connecting November and January lows.
Therefore, the path of least resistance is on the higher side. On the way toward $10,000, BTC may face stiff resistance at $9,642 – 38.2 percent Fibonacci retracement of the sell-off from $20,078 to $3,193.
The bullish bias would be invalidated if the price finds acceptance below the ascending 10-candle MA, currently at $8,477.
The outlook would turn bearish if the price drops below recent lows below $7,600, violating the bullish higher lows pattern.
The RSI has produced lower highs on the 4-hour chart over the last five days, contradicting the higher highs on price. That bearish divergence indicates scope for a price pullback.
The bearish RSI divergence would be invalidated if the indicator cuts through the descending trendline hurdle, currently at 60.
As seen above, the price is stuck between the 50-hour and 100-hour MAs.
The cryptocurrency bounced up from the 100-hour MA in Asian trading hours. So far, however, the 50-hour MA hurdle, currently at $9,198, has proved a tough nut to crack.
A break below the overnight low of $9,005 would confirm bearish lower highs and lower lows pattern and allow a deeper drop to $8,600 – support of the trendline connecting June 10 and June 11 lows.
Disclosure:The author holds no cryptocurrency at the time of writing
Bitcoinimage viaShutterstock; charts by TradingView
• Bitcoin Price Trades Flat on Facebook Libra Blockchain Launch
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Walmart’s Kickstarting a $1 Trillion Driverless Delivery Market
(Bloomberg) -- Walmart Inc. came to dominate retailing through its mastery of logistics—the complicated choreography of getting goods from farm or factory to the consumer. But even the world’s biggest store doesn’t make money selling its wares online in the U.S., largely due to runaway shipping costs. So Walmart is turning to robots.
On a drizzly morning earlier this month, Walmart’s U.S. chief Greg Foran led reporters to a curbside package pickup kiosk outside its supercenter in Rogers, Arkansas. Idling there were three Ford delivery vans outfitted with self-driving technology developed by a Gatik, a Silicon Valley startup charged with a trial run aimed at cutting Walmart’s middle-mile shipping costs in half. Going driverless in pursuit of profit is a “no-brainer,” Foran said.
As the buzz about human-carting robo-taxis starts to short-circuit, an unheralded segment of the driverless future is taking shape and showing promise: goods-moving robo-vans. Rather than serving up hot pizza pies or deploying headless robots to carry groceries to the doorstep, robo-vans travel on fixed routes from warehouse to warehouse or to a smaller pickup point, transporting packages to get them closer, but not all the way, to consumers.
This may be the least glamorous part of the driverless delivery business, but the market for these monotonous “middle miles” could reach $1 trillion and may provide the fastest path to prosperity, analysts say.
“This area has the least number of obstacles and the most certain return on invested capital in the near term,” said Mike Ramsey, an analyst with consultant Gartner Inc. “If you’re looking to start a business where you can actually generate revenue, this has fewer barriers than the taxi market.”
Driving the demand is the boom in online shopping that has helped cause a severe shortage of truck drivers that tops 60,000 unfilled long-haul positions, according the American Trucking Associations. That has sent costs soaring for a job that is among the most dangerous due to the risk of wrecks and long periods spent on the road.
Related: `Smokey and the Bandit' Charm Fades as Trucking Hiring Lags
“This middle mile is the most expensive part of the whole supply chain; it’s a huge pain point,” said Gautam Narang, CEO of Gatik, which is attempting to automate Walmart’s “hub and spoke” warehouse system. “This fills a big gap in the market.”
From a technological standpoint, business-to-business, or B2B, delivery is the straightforward counterpoint to the complexities of autonomous ride-hailing and driverless delivery directly to consumers, known as B2C or last-mile. Robo-vans like those being put to the test at Walmart follow fixed routes over and over, reducing the chance of mishaps and increasing their time in service generating revenue. Many of these routes are already established using human drivers today, so there’s little need to map new paths and create infrastructure to load and receive the goods.
Related: Robot Rides Are Going to Deliver Pizza and Parcels Before People
Ford Motor Co., testing many forms of driverless delivery, calls these repeatable routes “milk runs,” a throwback term to the days of household dairy delivery.
“Anything on driverless delivery that is a milk run is a good application for autonomy,” said Sherif Marakby, chief executive officer of Ford’s autonomous vehicles unit. “B2C is a complex implementation for autonomy that will come with time, but B2B just makes it easier because you get volume and you can be more predictable.”
The case for robots ferrying packages before people is becoming more compelling as robo-taxis struggle to gain traction. Consumers have grown wary of giving up the wheel, especially after a pedestrian was killed last year by an autonomous Uber Technologies Inc. test car. Waymo, Alphabet Inc.’s driverless unit, initiated limited automated ride-hailing in suburban Phoenix late last year with human “safety drivers” on board. General Motors Co. no longer says it will debut a similar service this year. Instead, CEO Mary Barra now says the rollout will be “gated by safety.”
QuicktakeWhen the Driverless Cars Arrive, Will You Climb In?: QuickTake
Driverless delivery also has another big advantage over robo-taxis: no demanding human passengers. “People have more emotions than boxes,” Ford’s Marakby said.
Meanwhile, driverless delivery is already hitting the road. Swedish startup Einride recently began low-speed robo-deliveries on public roads in its home country. It has signed up several Fortune 500 clients, like tire-maker Michelin, plus logistics service provider DB Schenker and German grocer Lidl.
Looking like a Star Wars Imperial troop transport on wheels, Einride’s T-Pod trucks are 60% cheaper to build because they lack a passenger compartment. If they get into a jam, they can be remote controlled by humans from a command center. One human monitors the remote controls for 10 trucks. The T-Pods operate in self-driving mode 95% of the time, according to CEO and founder Robert Falck.
Stuffed with payload and no human driver, a T-Pod can operate around the clock and cut shipping costs in half. That’s why Falck says his company is already profitable, though he declines to give specifics.
“There are solid economics behind this and that’s also what the customer realizes,” Falck said. “If you break down the numbers, it’s the best business case out there.”
TuSimple, a San Diego startup valued at $1.1 billion, leads a pack of tech outfits seeking to automate long-haul trucking. The company has a fleet of 50 robot Peterbilt and Navistar trucks that have been transporting commercial loads in Arizona for a year. And while it isn’t profitable yet, it expects to book revenue of more than $1 million a month in the second half of the year.
“If you break down the numbers, it’s the best business case out there.”
In the final two weeks of May, its self-driving big rigs—equipped with cameras that can see more than a half-mile down the road—completed 10 test runs for the U.S. Postal Service of an arduous 1,000-mile stretch from Phoenix to Dallas. Over Memorial Day weekend, the trucks faced howling crosswinds and “mud rain,” a blinding combination of dust, wind and rain. And yet the robo-rigs consistently beat human-driven trucks to the mail depot by as much as two hours.
“We were approaching the edge of our operational design domain,” said Chuck Price, TuSimple’s chief product officer. “But we were able to demonstrate that we can do it much faster, with high consistency and high reliability. So bottom line, it’s more efficient.”
By next year, TuSimple says it will pull the safety driver and engineer it currently has babysitting its rigs and go fully driverless—something no robo-taxi has committed to yet. By 2023 or 2024, the company plans to have “commercially ready” robo-rigs rolling out of a factory of a major truck maker.
That kind of confidence is hard to come by these days among the purveyors of robo-taxis, still struggling to figure out how to navigate the pedestrians, cyclists and unpredictable traffic of chaotic urban environments. Increasingly, the call of the open road and the mundane middle miles between warehouses is proving to be the clearest path to the autonomous future. That’s why big players like Waymo and Tesla Inc.—still working on driverless people haulers—are also developing robo-rigs.
“There’s absolutely a market for this sort of thing,” said Sam Abuelsamid, an analyst with Navigant Research. “People don’t really care much about what goes on behind the scenes to get them the products they want. But the value of all the goods being moved is far more than ride-hailing applications.”
To contact the authors of this story: Keith Naughton in Southfield at knaughton3@bloomberg.netMatthew Boyle in New York at mboyle20@bloomberg.net
To contact the editor responsible for this story: Anne Riley Moffat at ariley17@bloomberg.net, Chester Dawson
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
Kik CEO says company would not run ICO in U.S. again, and that’s a “major shame”
It’s no secret that ICOs, the go-to fundraising and token distribution mechanism for crypto startups, have effectively beenchased out of the United Statesby federal regulators over the last year and a half. But could the SEC’s aggressive posture be doing more harm than good?
Kik CEO and founder Ted Livingston certainly thinks so.
Livington’s Canada-based messaging app company is currently facing apotentially ruinous civil enforcement actionbrought forth by the SEC over Kik’s sale of the Kin token in 2017—an ICO whichthe Commission allegesamounted to nothing more than “an illegal $100 million securities offering.”
Last Friday, Livingston spoke out in Kik’s defense for thefirst time since the newsof the SEC’s lawsuit initially broke. During an hour-long AMAhosted by crypto data firm Messari, Kik’s CEO reflected on the SEC’s complaint, Kik’s chances of a legal victory, and the future of the company given the challenges that lie ahead.
One particularly cogent and candid moment came during the end of the chat, when Messari Analyst Zack Voell asked Livingston if, in hindsight, he would do anything differently regarding the launch on Kin: “Would you launch an ICO in [the] U.S. again?”
“No, we wouldn’t. And that would be a major shame,” Livingston said. “We think crypto is going to be a major force of positive change in the world, so we think every consumer and developer should be part of that. The U.S. shouldn’t get left behind.”
Nevertheless, Kik expects to press forward, said Livingston, reiterating what Kik’s general counsel, Eileen Lyon,previously identifiedas a silver lining in the SEC’s complaint. “In their complanint, [sic] the SEC has made zero comment about how Kin is being used today,” said Livingston. “To us this suggests that they think Kin is now ‘sufficiently decentralized.’ So it is full steam ahead.”
But as crypto attorneys such as Marc Boiron of FisherBroyles, LLP havepointed out, while the current state of Kin may determine how the token is regulated today, these details have no bearing on the SEC’s charges against the unregistered sale of Kin in 2017.
Even still, Livingston remains confident that Kik will win its case and said the company expects to have the funds “to fight this to the end.” Otherwise, he said, the Commission’s takedown of Kik “becomes a hammer for the SEC to go after all the other projects that did a token sale.”
And it’s this crucial point that Livingston believes is still lost on most in the crypto community.
“I think what a lot of crypto is missing is that this is just the first one,” he said. “There will be more. Jay Clayton, chair of the SEC, has said every crypto that has done a token sale has done an illegal securities offering in his view. That’s Ethereum, Kin, IPFS, Brave, and many others.”
Putting aside the fact that both Chairman Clayton andSEC Director William Hinmanhave intimated that Ethereum probably doesn’t fallunder the SEC’s purview, Livingston’s larger point—that more enforcement actions against big-name crypto projects may be on the way—has becomea rallying cryof sorts for Kik.
“We will move quickly to correct the facts [in the SEC’s complaint], but, in the mean time [sic], I think we need to come together and defend crypto,” Livingston said.
“We think the SEC v Kik lawsuit is just the tip of the iceberg. Exchanges are increasingly pulling out of the US. Tokens are increasingly being delisted,” warned Livingston. “While the SEC has said they want to help, in the last 10 years they have only given outa single no action letter related to crypto, which was for a closed loop coupon system that didn’t need ano action letter.”
“When you put the pieces together,” he said, “it feels like the SEC is working increasingly quickly to shut down crypto in the US. We don’t know how that will continue to evolve, but we are increasingly confident that it will become important to band together to defend crypto.”
It’s a view that few crypto companies might share publicly, but one that many have said they agree with privately, said Tanner Philp, Livington’s technical advisor. Since launching theDefendCrypto.orgwebsite, just weeks before the SEC filed its lawsuit against Kik, Philp said the company has “had a number of other projects in the space reaching out to say they are dealing with the same thing behind the scenes but have been [too] afraid to go public.”
“Many others see the timeline of events, can see themselves on different points of that timeline and see how it can evolve,” said Philp. “It’s been a big step forward for crypto to now have this out in the public as new regulation is formed.”
But the SEC has also been busy working “behind the scenes,” said Livingston.
While Kik’s roadmap for success remains focused on “growing Kin”—finding ways to attract more developers and users—and getting liquidity for its token, Livingston said that the SEC’s efforts to stifle the company’s progress go beyond just the lawsuit.
“Liquidity is an important piece of what makes the whole ecosystem work—if Bitcoin miners couldn’t sell their Bitcoin, then no one would mine Bitcoin. Unfortunately, it seems that the SEC knows this too,” he said. “We are hearing more and more stories of them pressuring exchanges behind the scenes to not work with us.”
But the company is undeterred, Kik’s leading man insists. Despite the odds and the growing sentiment among legal experts that Kik may find itself settling up with the SEC on the regulator’s terms soon enough, Livingston said the company isn’t giving up the fight just yet: “We are going to keep hammering at it until the wall falls down—it is a big world out there.” |
Majority of residents say Sask. is becoming more welcoming to LGBTQ community: poll
There was a time when people wore masks to Pride parades for fear of losing their jobs or risking persecution. Now, when people come out to Pride parades in places like Regina and Saskatoon, they come with joy and without fear, said Sister Aida Baguette, who was among those sporting a full costume and makeup at Regina's Pride parade. "Now, people are out in full force. And those of us who are in masks, or makeup or whatever, are doing it to express ourselves, not to hide our identity, but to express ourselves." Many at the Pride parade spoke about how small changes are making them feel like the tide is slowly turning toward more acceptance of the LGBTQ community in Saskatchewan. A majority of Saskatchewan residents feel the same way, according to a recent poll conducted by the University of Saskatchewan's Social Science Research Laboratory and commissioned by CBC. In that poll, 78 per cent of 400 respondents said they either somewhat or strongly agreed that Saskatchewan has become more welcoming to the LGBTQ2+ community in the last five years. Five per cent of the 400 respondents, or 21 people, self-identified as a member of the LGBTQ2S+ community. The margin of error for the poll is plus or minus 4.9 per cent, 19 times out of 20 Heidi Atter/CBC Just 13 per cent of respondents said they somewhat or strongly disagreed with the statement, while 29 people said they didn't know. Four others refused to respond. "We've come a far way. There's a lot more people that are open to their sexuality and I couldn't be happier to be one of them, to be honest," said Cade Perrault, another attendee at Pride. Perrault, a transgender man, said people have become more welcoming and change is happening, such as Moose Jaw's recent introduction of gender neutral washrooms in parks. At the same time, Perrault said he can still get called out or receive negativity. "But you don't mind, they don't matter." Story continues Just how welcoming is Saskatchewan? Jason Disano, director of the U of S's Social Sciences Research Laboratories that conducted the research, said he didn't anticipate what the results would be. "To be honest, to some extent, I was a little bit surprised the vast majority of Saskatchewan residents agreed that Saskatchewan has become more welcoming to the LGBT community. I didn't think it would be quite that high." he said. Age and gender differences were reflected in the results. Generally, people in the 18 to 34 years age category were more likely to say Saskatchewan was more welcoming now, while men were more likely to say the same. Women over the age of 55 were more likely to disagree that Saskatchewan was more accepting. CBC News Graphics Disano pointed out that the question asked about change, but didn't ask about the extent to which Saskatchewan was welcoming to LGBTQ individuals. "I'm sure the bar has moved, and I think this data reflects that, to some extent," he said, adding, "I think there's data out there, that if we were to ask another question, or a follow-up question, that we have a very long way to go." Claire Carter is an assistant professor at the University of Regina's Gender, Religion and Critical Studies. As someone whose research looks into issues like gender identity and queer theory, and as a queer person herself, she can see events like Pride parades resonating with people. CBC News Graphics "On the surface level, I would agree, that there is really great acceptance, and we've seen that grow," she said. "But I think once you start to break down among the population of LGBTQ, what their experience are, and what it's like to navigate everyday life in Saskatchewan, that's where it changes, I suppose." Some in the community report facing micro-aggressions, whether its verbal attacks, misgendering or getting asked intimate and inappropriate questions. "I think we're much more accepting of lesbian and gay people," said Carter. "I think transgender, queers and queers of colour are the ones that are facing a lot less of the welcoming." She noted the younger generation was more likely to say Saskatchewan is welcoming, and that they may also be more welcoming themselves of LGBTQ people. Submitted by Claire Carter At Regina's Pride parade, Sister Aida Baguette pointed out a school bus carrying students and teachers, and said it was a sign of new times. "I think that's the future of what we're going to see in terms of acceptance, all these kids that come to the Pride parade, and love it, and don't question anything," she said. "They're just accepting of everyone, which is wonderful." On Wednesday, CBC Saskatchewan's Blue Sky will look at the history of LGBTQ+ rights in Saskatchewan. The show will be talking to members of the LBGTQ+ community about how safe our society is for members of that community and what work remains to be done. Listen at Noon CST on 102.5 FM in Regina, 94.1 FM in Saskatoon, and 540 AM across the province.. |
Three Russian Security Officers Charged Over Downing of MH17
REUTERS / Maxim Zmeyev It’s been nearly five years since the Malaysia Airlines Flight 17 passenger plane was shot down by a Russian missile over eastern Ukraine , killing 298 people. Finally, the victims’ families may see those responsible brought to justice. Four suspects will face murder charges for the downing of MH17 in July 2014 and a trial is set to start next March in the Netherlands, investigators confirmed Wednesday. The Dutch-led investigation team revealed that three of the four have direct links to the Kremlin through previous work in the FSB and GRU intelligence services. The four will be prosecuted for causing the crash, leading to the death of all the people on board, and separately for murdering all 298 passengers. International and national arrest warrants have been issued for the four, and the Netherlands will request that Russia questions the three Russian nationals who are still believed to be living in the country. The most senior suspect was named as Igor Girkin. Investigators described Girkin as a former FSB colonel who was appointed “minister of defense” in the so-called Donetsk People’s Republic—the region where MH17 was downed—making him the highest-ranking officer there at the time of the attack. He was in “direct contact” with Russia, investigators said. How We Know Russia Shot Down MH17 The second suspect was named as Sergey Dubinskiy, who was previously employed by Russia’s GRU military intelligence service. Investigators described him as the deputy head of intelligence services in Donetsk, making him the second-highest-ranking suspect named publicly. The third Russian suspected is Oleg Pulatov—a former soldier with the Spetsnaz GRU, the foreign military intelligence agency of Russia’s armed forces. He was given the role of deputy head of intelligence service in Donetsk at the time of MH17’s downing. The investigators said the presence of all three of these Russian nationals “formed a chain linking DNR with the Russian Federation,” which led to the anti-aircraft system, believed to have been used in the attack, being brought to eastern Ukraine. They are therefore criminally liable for the attack. Story continues The final suspect, Ukrainian Leonid Kharchenko, is the lowest-ranked of the four. He had no military background, but led a military unit in the region under the supervision of Dubinskiy. However, the four accused are just the tip of an iceberg. Behind them lies a web including the local Ukranians and reaching into the top of Russia’s military and intelligence apparatus. The full extent of the Russian involvement has been exposed by the British-based open-source investigative team Bellingcat . Bellingcat made new allegations Wednesday naming 12 military commanders as being directly involved, including one of those named in the charges, Igor “Strelkov” Girkin. Previous work by Bellingcat identified the exact Russian military unit that launched the attack as BUK 332. They used a BUK-M1, a self-propelled and completely autonomous anti-aircraft vehicle with four missiles and its own radar that seeks and the target and then, locking on to it, fires a missile. Russia Deployed Its Trolls to Cover Up the Murder of 298 People on MH17 Bellingcat traced the movement of the unit from when it left Kursk, in Russia, on June 23 to its final track through the countryside of eastern Donetsk, in territory held by the Russian-supported Ukrainian separatists. On July 17, according to the Bellingcat tracking, the BUK 332 unit was positioned in a field near a village called Chervonyi Zhovten (Red October) when its radar found and locked on to the Malaysian Boeing 777 flying at 33,000 feet. Days before, two Ukrainian military aircraft had been shot down by anti-aircraft missiles fired by separatists. This part of Ukraine had clearly met the definition of a war zone in which any commercial flights were at risk—in fact, controllers in the airspace in nearby Russia had effectively eliminated all airline traffic by banning flights below 53,000 feet. Commercial flights operate between 30,000 and 40,000 feet. But on the day of the missile strike, there was confusion about whether it was safe to fly over Ukraine, normally one of the busiest routes connecting Europe and the Middle East. MH17 was cruising in an international air lane. Lacking an international ruling that this was a war zone, some airlines had nonetheless independently chosen to avoid Ukrainian airspace, but not Malaysia Airlines or 32 other nations that had flights passing through that corridor on that day. It took the BUK missile less than a minute to find Flight 17. Its warhead was a fragmentation bomb, triggered by a proximity fuse. When it exploded, the missile was to the left of and a little above the 777. A supersonic wave of shrapnel tore through the cockpit, eviscerating the pilots (part of a cockpit seat, retrieved from the crash site, was perforated by shrapnel). The entire front section of the fuselage broke away from the rest of the airplane and the rest of it lurched violently and exploded into a ball of fire as the gas tanks exploded. The Flightpath to Hell: MH17 Wasn’t the Only Flight in Russia’s Sights People in the villages below watched as the blazing hulk fell into the fields, along with bodies. In addition to those identified by the international investigators, the new report from Bellingcat reveals the command structure of the military in the Donetsk People’s Republic. Conversations between these separatist forces after the downing of the Malaysian jet were intercepted by Western intelligence and revealed that while Russia was vigorously denying any role, the Ukrainians knew that BUK 332 was part of Russia’s 53rd Anti-Aircraft Missile Brigade—and they knew where it was and when it carried out the attack. The Kremlin’s response was to forge an alternative scenario, including fake radar images, absolving Russia of any part in the atrocity, and to dismiss Bellingcat as a tool of Western propaganda. In fact, by working with multiple sources who provided eyewitness accounts, Bellingcat assiduously prepared the ground for today’s indictments. Although international arrest warrants have been issued for the four, Russia does not normally permit the extradition of its nationals for prosecution. Read more at The Daily Beast. Get our top stories in your inbox every day. Sign up now! Daily Beast Membership: Beast Inside goes deeper on the stories that matter to you. Learn more. |
U.S. Navy says mine fragments, magnet point to Iran in Gulf tanker attack
FUJAIRAH, United Arab Emirates, June 19 (Reuters) - The United States Navy on Wednesday displayed limpet mine fragments and a magnet removed from one of two oil tankers attacked in the Gulf of Oman last week, saying the mines bore a striking resemblance to Iranian ones.
"The limpet mine that was used in the attack is distinguishable and also strikingly bearing a resemblance to Iranian mines that have already been publicly displayed in Iranian military parades," said Commander Sean Kido, the commanding officer of an explosive ordinance dive and salvage task group in the Naval Forces Central Command (NAVCENT).
He spoke to reporters at a NAVCENT facility near the United Arab Emirates' Fujairah port. (Reporting by Aziz El Yaakoubi; Writing by Lisa Barrington Editing by xxx) |
Need To Know: Team, Inc. (NYSE:TISI) Insiders Have Been Buying Shares
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It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares inTeam, Inc.(NYSE:TISI).
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
Check out our latest analysis for Team
Director Craig Martin made the biggest insider purchase in the last 12 months. That single transaction was for US$304k worth of shares at a price of US$15.20 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$14.71). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Craig Martin.
The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Team 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.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Team insiders own about US$13m worth of shares. That equates to 3.0% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Team insiders are well aligned, and that they may think the share price is too low. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check thisfreereport showing analyst forecasts for its future.
But note:Team may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
'Failing Grayling' Eurotunnel ferry settlement cost £1m in legal fees
Transport minister Chris Grayling. Photo: Press Association The governments handling of the no-deal Brexit ferry saga cost taxpayers almost £1m in legal fees for its settlement with Eurotunnel alone. New figures seen by Yahoo Finance UK show the UK government paid law firm Slaughter and May almost £711,000 in fees, not including VAT. The department for transport also paid £84,000 to barristers and £144,000 to the governments in-house legal department. It comes on top of controversy over a £14m contract for a ferry firm that owned no boats, and a £33m settlement with Eurotunnel who claimed they were unfairly blocked from bidding. The botched handling of the contracts was a huge political embarrassment and sparked widespread criticism of the transport minister Chris Grayling, dubbed Failing Grayling by critics over a series of mishaps. READ MORE: The big hole in Boris Johnsons Brexit trade deal plans The contracts were awarded as part of the governments contingency plans in case Britain left without a deal in April to ensure key supplies still reached the UK. But the contracts are reported to have still been paid even when the plans were put on hold, after Britain asked for its planned exit to be delayed until the end of October. The department was forced to reveal the legal costs, totalling almost £939,000 and including other parties bills to Slaughter and May, in response to a freedom of information request. A government spokeswoman said: The cross-government decision to reach agreement with Eurotunnel protected vital freight capacity, ensuring critical supplies including medicines for our NHS could enter the country in the event of disruption at Dover. Specialist legal advice was regularly used to inform decisions. |
Introducing Tremont Mortgage Trust (NASDAQ:TRMT), The Stock That Slid 67% In The Last Year
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Investing in stocks comes with the risk that the share price will fall. And unfortunately forTremont Mortgage Trust(NASDAQ:TRMT) shareholders, the stock is a lot lower today than it was a year ago. The share price has slid 67% in that time. Tremont Mortgage Trust may have better days ahead, of course; we've only looked at a one year period. The falls have accelerated recently, with the share price down 53% in the last three months.
View our latest analysis for Tremont Mortgage Trust
Tremont Mortgage Trust isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last year Tremont Mortgage Trust saw its revenue grow by 341%. That's well above most other pre-profit companies. Meanwhile, the share price slid 67%. Typically a growth stock like this will be volatile, with some shareholders concerned about the red ink on the bottom line (that is, the losses). We'd definitely consider it a positive if the company is trending towards profitability. If you can see that happening, then perhaps consider adding this stock to your watchlist.
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.
It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Thisfreereport showing analyst forecastsshould help you form a view on Tremont Mortgage Trust
Given that the market gained 4.6% in the last year, Tremont Mortgage Trust shareholders might be miffed that they lost 66% (even including dividends). 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. The share price decline has continued throughout the most recent three months, down 53%, suggesting an absence of enthusiasm from investors. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. If you would like to research Tremont Mortgage Trust in more detail then you might want totake a look at whether insiders have been buying or selling shares in the company.
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 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. |
Czech owners of Skoda, Volkswagen cars qualify for $23 million compensation, court says
PRAGUE (Reuters) - A Prague district court has ruled that a number of Czech owners of Skoda and Volkswagen cars qualify for 533 million crowns ($23.30 million) in compensation linked to VW's diesel emissions scandal, the ruling seen by Reuters said.
The suit was filed by Safe Diesel on behalf of 2,435 people, the ruling, which was shown to Reuters by Safe Diesel, said. Safe Diesel was set up to take on the case for the claimants.
The decision, ordering Volkswagen to pay the full amount, is open to appeal but only on procedural grounds. Volkswagen said it would launch an appeal.
The Prague district court spokesman was not immediately available to comment.
"It is a breakthrough in the European branch of the affair," Safe Diesel's lawyer Frantisek Honsa said in a company statement. "We managed to push through the same compensation as in the United States."
Volkswagen admitted in September 2015 that it had cheated U.S. diesel emissions tests. The company has paid out more than 27 billion euros ($31 billion) in penalties for using illegal software to disguise excessive levels of pollution from its diesel cars, triggering a global regulatory clampdown.
The Prague ruling, dated March 22 but not previously released, said the compensation demand was upheld without a court hearing because Skoda parent Volkswagen failed to deliver any objections to the demands by a deadline set by the court.
Volkswagen said it believed the ruling would be overruled and the action dismissed.
"We consider the judgments to be defective in law and will appeal against them," a spokesman said.
Skoda Auto was also part of the suit although it did provide its position and that part of the case has not been ruled upon, the ruling said.
Skoda Auto said it had rejected the claims and continued to maintain that owners of affected vehicles did not suffer any damage.
Safe Diesel said it has been collecting demands from more owners of the affected cars. The ruling only covered the initial 2,435 claimants, but the firm said more than 7,000 people have made claims so far.
It added there were 165,000 cars affected by the emissions scandal in the Czech Republic.
(Reporting by Jan Lopatka; Additional reporting by Jan Schwartz in Hamburg; Editing by Jan Harvey, Jane Merriman and Alexandra Hudson) |
Harley-Davidson strikes deal to build smaller bike in China
(Reuters) - Harley-Davidson Inc will partner with China's Qianjiang Motorcycle Co to build a new smaller motorcycle than its trademark "big hogs", making good on promises to move more production outside the United States that have angered President Donald Trump.
Trump last year threatened to impose higher taxes on Harley after it made plans to move production for European customers overseas, part of a longer-term strategy for dealing with lower sales in the U.S. and higher costs because of trade tariffs.
The partnership Harley outlined on Wednesday is aimed both at taking a bigger chunk of China's huge bike and moped market, while also fitting in with a plan to cut costs and source half of all sales outside the United States by 2027.
The new bike would have an engine displacement of 338 cubic centimeters, one of the smallest in the company's 116-year old history, and would be sold in China from the end of 2020.
Harley's existing range of motorcycles are generally far larger and come with high price tags and engine capacities of more than 601 cubic centimeters.
That has made the company a niche seller in Asia's big markets, where lightweight bikes and scooters dominate, and left it struggling to win over consumers globally to replace a traditional U.S. customer base which is aging.
Harley declined to reveal a price range for the new motorbike, but Qianjiang said it would be "affordable" and Harley said it would be introduced elsewhere in Asia after the initial launch in China.
"The international motorcycle market is huge, but Harley-Davidson has not been able to penetrate it with large/expensive bikes," said Craig Kennison, an analyst with brokerage Baird.
"Our recent dealer survey work reinforces the need for Harley-Davidson to add more first-time riders. For many, affordability is an issue."
Harley's sales in China grew 27 percent in 2018 compared to 2017, and the company has already boosted investment at its Thailand plant to serve that market and avoid additional import duty.
Harley said it had picked Qianjiang, owned by Chinese Volvo brand operator Geely, based on its experience developing upscale smaller motorcycles, supply base and knowledge of emerging markets.
The company said in 2018 that it planned to launch lightweight motorcycles in Asia and electric bikes globally. It expects to launch its first electric motorcycle without the traditional clutch and gear-shift controls later this year.
As part of a plan it calls "More Roads to Harley-Davidson", the company expects to spend $675 million-$825 million over the next four years, cutting costs and generating $5.9 billion-$6.4 billion in revenue in 2022.
(Reporting by Rachit Vats and Sanjana Shivdas in Bengaluru; editing by Patrick Graham and Bernard Orr) |
What Kind Of Share Price Volatility Should You Expect For Metals Creek Resources Corp. (CVE:MEK)?
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Anyone researching Metals Creek Resources Corp. (CVE:MEK) might want to consider the historical volatility of the share price. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. The first type is company specific volatility. Investors use diversification across uncorrelated stocks to reduce this kind of price volatility across the portfolio. 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 see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated price movements. Beta is a widely used metric to measure a stock's exposure to market risk (volatility). Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. The first thing to understand about beta is 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 Metals Creek Resources
As it happens, Metals Creek Resources has a five year beta of 1.02. This is fairly close to 1, so the stock has historically shown a somewhat similar level of volatility as the market. Using history as a guide, we might surmise that the share price is likely to be influenced by market voltility going forward but it probably won't be particularly sensitive to it. 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 Metals Creek Resources fares in that regard, below.
Metals Creek Resources is a rather small company. It has a market capitalisation of CA$3.1m, which means it is probably under the radar of most investors. It doesn't take much money to really move the share price of a company as small as this one. That makes it somewhat unusual that it has a beta value so close to the overall market.
Since Metals Creek Resources has a beta close to one, it will probably show a positive return when the market is moving up, based on history. If you're trying to generate better returns than the market, it would be worth thinking about other metrics such as cashflows, dividends and revenue growth might be a more useful guide to the future. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as Metals Creek Resources’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Financial Health: Are MEK’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 MEK 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 MEK'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. |
Apple Stock Is Due Another Pullback, Which Is Your Chance to Buy
Apple(NASDAQ:AAPL) continues to face uncertainty about its future. Apple stock plunged in May as the government threatened to take antitrust action against Apple and mega tech peers such asAlphabet(NASDAQ:GOOGL, NASDAQ:GOOG),Amazon(NASDAQ:AMZN), andFacebook(NASDAQ:FB).
Source: Apple
The stock has mostly recovered from that threat. However, AAPL still trades at almost 17% below its 52-week high as the company faces a need for new growth engines.
Until it can find a more defined direction, investors should wait for a pullback before buying Apple stock.
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First of all, I still expect AAPL stock to perform well long-term. It trades at a price-to-earnings (PE) ratio of about 16.2. That only comes in slightly above the five-year average PE for Apple of about 15.5. Once the predicted double-digit earnings growth resumes next year, the stock should resume its growth.
However, the present appears less rosy. Profit forecasts fell last year. As a result, Wall Street predicts earnings will fall by 3.9% for fiscal 2019. The iPhone, which had made up a majority of the company’s revenues in recent years, now appears destined for a permanent decline. The company has turned to other initiatives, such as the Apple Card and the Apple TV Streaming Service.
Apple holds enough cash to compete with the largest banks,Netflix(NASDAQ:NFLX), or most any titan in any industry. As long as these business lines earn a profit, it should serve a specific group of AAPL stock investors well.
It will help the kind of investors who want low-double-digit growth, anannual dividend increase, and a steadily rising stock price, AAPL should accomplish that.
Even better, that stands as the likely worst-case scenario. As Dana Blankenhorn mentioned, Apple’s embracing innovation by fashioning theApple Watch as a medical device. If it offers the heart and diabetes monitoring which many hope could become the company’s next great revenue driver.
Investors should wait for bad news like the recent antitrust probe into the company. This took the Apple stock price to a low of around $170 per share in early June.
Investors should remember that the company pledged to spend $75 billion on stock buybacks this year. Perhaps that helped to foster a recovery in AAPL. However, with AAPL rising to over $194 per share in just two weeks, they missed that one opportunity.
Still, traders should not fret over this missed opportunity. For one, if the antitrust talk heats up again, AAPL stock will likely fall. Moreover, the state of Apple will remain in uncertainty until one of its new lines of business begins to drive revenue growth. Hence, any news that drives uncertainty or an economic downturn could have Apple stock selling at sale prices.
AAPL stock remains a long-term buy, but investors should wait for bad news before adding to positions. Right now, Apple bears have focused on possible antitrust action or the drop in iPhone sales. Investors continue to wait as Apple scrambles to develop revenue sources which will bring earnings growth back to the company.
However, Apple continues to enter into established industries. That by itself will drive some level of growth that will please more conservative investors.
Additionally, if Apple can find success in its medical device applications, it not only ensures the long-term success of AAPL stock, but it also brings innovation to a company that has not introduced any significant original products since the passing of Steve Jobs.
In the meantime, significant pullbacks should allow investors to buy AAPL stock at a sale price. With a little patience, investors can then benefit finds the next success that further enriches Apple investors.
As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You canfollow Will on Twitterat @HealyWriting.
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Fifth Third (FITB) to Shut Down 44 Branches in Chicago Area
Fifth Third BancorpFITB will be shuttering about 44 branches that are located in close vicinity to each other in the Chicago area next month, to save costs.
The move comes post MB Financial buyout in May 2018. During that time the company had expected to close 50 branches. It noted that 25 of the branches are located within one mile of each other and 18 are only one-half mile apart.
Per an article by The Chicago Tribune, branch closings include 19 Fifth Third branches and 25 former MB Financial branches. Eight of those branches are in the city of Chicago and the rest are in the suburbs. Employees of the affected branches will be moved to other facilities.
The bank sent notices to customers with information regarding branches that will shut down, and provided alternative options to continue banking.
Though the acquisition has made Fifth Third undertake several restructuring moves, it is expected to deliver significant financial benefits to the company. The merged entity is likely to record an internal rate of return of about 18.5% and be accretive to Fifth Third’s operating earnings in the first year. Moreover, accretion of about 7% is projected in the second year on realization of full cost savings.
Fifth Third’s efforts to expand geographically and bolster operations bode well for its financials. Further, it remains focused on strategic investments through North Star initiatives, which are expected to boost revenue growth, save expenses and drive efficiency.
The stock has gained around 21% over the past six months compared with 12% growth of the industry.
Currently, Fifth Third carries a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Citigroup C has witnessed slight upward estimate revision over the past 60 days. Also, the company’s shares have risen nearly 30% in the past six months. It has a Zacks Rank #2 (Buy) at present.
BankUnited’s BKU earnings estimates for the current year have been revised 2.5% upward over the past 60 days. Also, the company’s shares have risen 15.2% in the past six months. It carries a Zacks Rank #2.
The Zacks Consensus Estimate for M&T Bank Corporation MTB earnings for the current year has been revised slightly upward over the past 60 days. Also, the company’s shares have risen nearly 18% in the past six months. It currently carries a Zacks Rank of 2.
This Could Be the Fastest Way to Grow Wealth in 2019Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated+98%,+119%and+164%gains in as little as 1 month.Click here to see these breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportCitigroup Inc. (C) : Free Stock Analysis ReportBankUnited, Inc. (BKU) : Free Stock Analysis ReportFifth Third Bancorp (FITB) : Free Stock Analysis ReportM&T Bank Corporation (MTB) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
U.S. Navy says mine fragments suggest Iran behind Gulf tanker attack
By Aziz El Yaakoubi
FUJAIRAH, United Arab Emirates (Reuters) - The United States sought on Wednesday to bolster its case for isolating Iran over its nuclear and regional activities by displaying limpet mine fragments it said came from an oil tanker damaged in an attack last week and saying the ordnance looked Iranian in origin.
Separately, a senior U.S. official said U.S. intelligence had confirmed that Iranian vessels had approached the damaged tanker, the Kokuka Courageous, as well as a second one, the Front Altair, prior to explosions that damaged their hulls last week.
Iran has denied involvement in explosive strikes on those two tankers in the Gulf of Oman last week and on four tankers off the United Arab Emirates on May 12, both near the Strait of Hormuz, a major conduit for global oil supplies.
But the incidents have fuelled tensions that flared with the U.S. pullout last year from world powers' 2015 nuclear accord with Iran, followed by fresh U.S. sanctions to stifle Tehran's vital oil trade, and a retaliatory Iranian threat this week to breach limits on its nuclear activities imposed by the deal.
Responding to Tehran's move, Washington on Monday said it would deploy about 1,000 more troops to the Middle East on top of a 1,500-troop increase announced following the May tanker attacks. The Pentagon said the new deployment will include Patriot missiles as well as manned and unmanned surveillance aircraft.
France and Germany said on Wednesday they would crank up efforts to halt any spiral towards conflict with Iran, but said time was running out and the risk of war could not be ruled out.
Iran's signal of preparedness to stockpile enriched uranium beyond the deal's limit, and refine uranium to a fissile purity higher than deemed necessary for civilian uses, prompted U.S. President Donald Trump to warn on Tuesday he was ready to take military action to stop Tehran developing a nuclear bomb.
The Islamic Republic denies having any such intentions.
Trump also left open whether he would support the use of force to protect Gulf oil supplies that Washington fears might be put in jeopardy by Iran in the brewing confrontation.
French President Emmanuel Macron's office said his top diplomatic adviser, Emmanuel Bonne, went to Tehran on Wednesday for talks to help ease the crisis. Bonne has been based in Iran in the past and is a Middle East expert.
Iran, where hardline foes of detente with the West have been strengthened by Trump's pressure campaign, said on Wednesday it would give European powers no more time beyond July 8 to save the nuclear deal by shielding its economy from U.S. sanctions.
President Hassan Rouhani said Iran’s actions were the "minimum" Tehran could undertake one year after the Trump administration withdrew from the deal, but that its steps were reversible "if they return to their commitments."
Iran's Foreign Ministry said later that senior diplomats from Iran, France, Britain, Germany, Russia and China - the remaining parties to the nuclear deal - would hold the next quarterly meeting of the accord's oversight commission in Vienna, where the U.N. nuclear watchdog is based, on June 28.
U.S. DISPLAYS MINE FRAGMENTS, MAGNET
In the United Arab Emirates port of Fujairah on Wednesday, the U.S. Navy exhibited pieces of limpet mines and a magnet it said its personnel extracted from one of the two oil tankers attacked in the Gulf of Oman last week.
The U.S. military earlier released images it said showed Iranian Revolutionary Guards (IRGC) removing an unexploded mine from the Japanese-owned tanker Kokuka Courageous, which was hit by blasts along with the Norwegian-owned Front Altair on June 13.
"The limpet mine that was used in the attack is distinguishable and also strikingly bearing a resemblance to Iranian mines that have already been publicly displayed in Iranian military parades," Sean Kido, commanding officer of an explosive ordnance dive and salvage task group in the U.S. Naval Forces Central Command (NAVCENT), told reporters.
Small fragments said to have been removed from the Kokuka Courageous were on display alongside a magnet purportedly left by the Revolutionary Guard squad allegedly captured on video.
The Japanese company that owns the Kokuka Courageous had said its ship was damaged by two "flying objects," but NAVCENT dismissed this account.
Kido also said NAVCENT had collected biometric information including fingerprints from the ship's hull that would help in crafting a criminal case against the assailants.
Separately, the U.S. special representative for Iran, Brian Hook, told U.S. lawmakers that "our intelligence confirms that Iranian vessels operating in and around the Strait of Hormuz on June 12th and 13th approached both the Front Altair and the Kokuka Courageous before each vessel suffered explosions."
"We assess this activity is consistent with an Iranian operation to attach limpet mines to the vessels," he added, saying that "a senior IRGC official confirmed that personnel – IRGC personnel – had completed two actions."
He gave no information on which Iranian official he was quoting, when they spoke or why the "two actions" referred to the tanker attacks.
ROCKET HITS WESTERN OIL SITE IN IRAQ
In another incident likely to fan tensions, a rocket crashed onto a site in southern Iraq used by foreign oil companies on Wednesday, including U.S. energy giant ExxonMobil, wounding three people.
There was no immediate claim of responsibility for the attack near the southern Iraqi city of Basra - the fourth time in a week rockets have landed near U.S. installations. There were no casualties or major damage in the earlier incidents.
An Iraqi security source said it appeared that Iran-backed groups in southern Iraq were behind Wednesday's Basra incident.
Iranian officials have made no comment about the attack but have denied all other allegations that Tehran has targeted energy tankers and facilities in the region.
(Reporting by Aziz El Yaakoubi; Additional reporting by Abdelhadi al-Ramahi, Sylvia Westall, Firouz Sedarat and Davide Barbuscia in Dubai, Aref Mohammed and Ahmed Rasheed in Iraq, Nayera Abdallah in Cairo, Bozorgmehr Sharafedin in London, John Irish and Michel Rose in Paris, Joseph Nasr in Berlin and Arshad Mohammed and Phil Stewart in Washington; Writing by Mark Heinrich and Arshad Mohammed; Editing by Andrew Cawthorne and Leslie Adler) |
Hertz Global Holdings, Inc.'s Shares March Higher, Can It Continue?
As of late, it has definitely been a great time to be an investor inHertz Global Holdings, IncHTZ. The stock has moved higher by 8.5% in the past month, while it is also above its 20 Day SMA too. This combination of strong price performance and favorable technical, could suggest that the stock may be on the right path.
We certainly think that this might be the case, particularly if you consider HTZ’s recent earnings estimate revision activity. From this look, the company’s future is quite favorable; as HTZ has earned itself a Zacks Rank #2 (Buy), meaning that its recent run may continue for a bit longer, and that this isn’t the top for the in-focus company. You can seethe complete list of today’s Zacks #1 Rank stocks here.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportHertz Global Holdings, Inc (HTZ) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
An Intrinsic Calculation For McColl's Retail Group plc (LON:MCLS) Suggests It's 44% Undervalued
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How far off is McColl's Retail Group plc (LON:MCLS) 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. I will use the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
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.
See our latest analysis for McColl's Retail 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.
Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate:
[{"": "Levered FCF (\u00a3, Millions)", "2019": "\u00a311.85", "2020": "\u00a38.07", "2021": "\u00a37.18", "2022": "\u00a39.00", "2023": "\u00a310.00", "2024": "\u00a310.66", "2025": "\u00a311.19", "2026": "\u00a311.62", "2027": "\u00a311.98", "2028": "\u00a312.28"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x2", "2020": "Analyst x3", "2021": "Analyst x3", "2022": "Analyst x1", "2023": "Analyst x1", "2024": "Est @ 6.6%", "2025": "Est @ 4.99%", "2026": "Est @ 3.86%", "2027": "Est @ 3.07%", "2028": "Est @ 2.52%"}, {"": "Present Value (\u00a3, Millions) Discounted @ 8.03%", "2019": "\u00a310.97", "2020": "\u00a36.91", "2021": "\u00a35.69", "2022": "\u00a36.61", "2023": "\u00a36.80", "2024": "\u00a36.71", "2025": "\u00a36.52", "2026": "\u00a36.27", "2027": "\u00a35.98", "2028": "\u00a35.68"}]
Present Value of 10-year Cash Flow (PVCF)= £68.14m
"Est" = FCF growth rate estimated by Simply Wall St
The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 1.2%. We discount the terminal cash flows to today's value at a cost of equity of 8%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = UK£12m × (1 + 1.2%) ÷ (8% – 1.2%) = UK£183m
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= £UK£183m ÷ ( 1 + 8%)10= £84.52m
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 £152.66m. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of £1.33. Compared to the current share price of £0.74, the company appears quite good value at a 44% 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. 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 McColl's Retail 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 8%, which is based on a levered beta of 1.022. 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 McColl's Retail Group, There are three important aspects you should further examine:
1. Financial Health: Does MCLS 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 MCLS'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 MCLS? 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 LON 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. |
Slack's Direct Listing, Libra Reactions, and Softbank Investment Projections: Term Sheet
1. SLACKIN’Slack is about to hit the public markets on Thursday via a direct listing, and all eyes are on the company.The popular workplace messaging platform is expected to list on the New York Stock Exchange in the second major direct listing in the U.S. after Spotify. Slack was valued at $7.1 billion when it last raised a private round of funding in August 2018.As a reminder, direct listings are a considerably cheaper method of going public in which only existing shares are sold, no cash is raised for the company, and bank underwriters that help market the deal are cut out. But to have a chance at successfully executing a direct listing, companies have to clear a higher bar.Iasked Andreessen Horowitz’s Scott Kupor recentlyabout why some of these startups are rejecting the traditional IPO path. He explained that household-name tech companies like Spotify and Slack are the rare ones that can pull off a direct offering because many investors in the secondary markets are already familiar with their financials and valuation. He added:My personal view is that I still don’t think we’ll see a tidal wave of companies doing this. I still think it will be limited to a very select few, but it will probably have an ancillary benefit of making underwriters recognize that this is a viable alternative for some companies and you’ve got to think about what your real value add is. And I think that’s a net positive quite frankly.Some things to note: The company’s 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 be valued similarly 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.“This market is hungry for good stories, and investors are paying up for growth that has a reasonable path to profitability,” Duncan Rolph, a managing partner at Miracle Mile Advisors,toldFortune. “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.”Also, there will be a Brainstorm Finance panel today on Slack and the future of IPOs. You can tune in here to watch liveherestarting at 2 p.m. EST.Read more at Fortune.LIBRA FEEDBACK:You guys have strong opinions on Facebook’s new cryptocurrency project, Libra. Afterthe company introduced its new digital currency, I asked you to chime in with thoughts, concerns, and opinions.Here’s what Term Sheet readers had to say about whether Libra has a shot at disrupting financial services as we know it today:(Note: Some answers have been shortened for clarity & length.)NOT DISRUPTIVE:“Disruptive? No. Libra will become part of the Facebook ecosystem, but it will not disrupt financial services on a large scale. In the U.S., Facebook is on the ropes, Europe has shown it will get strict with GDPR, and forget about China adopting this. On the issue of trust; Let me guess, Libra as a service will be “free.” Facebook’s DNA contains the mining of people’s data, it excels at this. Expect Libra to be full of personal-data-in-exchange-for-gimmick features such as the right to read through all your transactions just so it can remind you that you like to buy toothpaste at Target. Put me down for a vote of no confidence.” —Alfonso“Am I missing something here? I don’t see how this benefits end users in any way. Isn’t this just Facebook doing in-app purchases where I’m forced to purchase tokens from Facebook? As an end user why would I want to convert my dollars — which can be used to buy things with all of the partners mentioned and every other merchant on the internet — into Facebook token which can only be used a handful of places? Seriously I would love someone from Facebook to explain what the actual benefit is supposed to be for users.” —Andrew J.“Regarding Libra, it’s a bit counterintuitive for what a lot of ‘crypto’ enthusiasts and technologists stand for. Libra is inherently centralized – ‘the Foundation’ will be controlling the supply, have access to the nodes, and serve more-or-less as a Corporate who’s who of money-hungry financial services companies; the mere fact it is backed by fiat currency makes it more or less a token; and its use case is diluted by the fact that competing, well-proven services to transfer fiat online already exist (see:paysafecard). It makes me think of video game currencies and how they function – swap fiat for tokens and enter a marketplace to buy/exchange goods (either real or digital). I have a hard time seeing this gain major traction for anything other than enabling WhatsApp and FB to compete with the likes of Square Cash, etc.” —Johnny C.SOMEWHAT DISRUPTIVE:“Facebook’s Libra project is an ambitious effort that validates the concept of blockchain and its utility in moving currency. That said, the project raises questions as to whether a stablecoin not tied to one specific fiat currency will have utility given there is not a real-world equivalent to this type of currency now.” —Chad Cascarilla, CEO of Paxos“From a technology perspective, Libra doesn’t appear to be doing anything that isn’t being done by existing crypto/payment providers. What does seem different is how Facebook plans to address the issues of user adoption and merchant acceptance, which ultimately are the key barriers to entry for any new payment system. By establishing a vaunted group of high-profile technology companies and investors to act as founders and stewards of the platform, Facebook is banking on Libra’s unique governance structure to help build the user-trust that has been so lacking in the wider crypto space. Still, payment systems don’t become ubiquitous overnight. This is clearly a long-term play that is likely to have minimal near or even midterm impact on existing payment infrastructure.” –Paul Condra, lead emerging technology analyst at PitchBookVERY DISRUPTIVE:“Facebook’s launch of a currency is insane. This is potentially a huge shift in society. Its impact on representative democracy is yet to be seen. For the last several hundred years, the largest currencies were controlled and printed by governments. Among other things, this gave them the ability to collect taxes. Yes, Bitcoin tried to untether currency from government, but Bitcoin had no power and was attempting to build a decentralized currency. For all the participation Libra is said to have, it will be controlled by private actors with their own agendas and conflicts of interest.If Facebook were to become the largest controller of non-institutional international currency, then either a) the governments of the world will need to exert more administrative oversight over the company or b) the power of governments will be reduced. I cannot think of another company that has as much global influence, and therefore global power. What will this mean for taxes, inflation rates, etc?”— Andy R.“Given the political attention tech companies have been receiving lately, it is interesting that Facebook’s cryptocurrency hasn’t been a hot topic for politicians yet. Libra is one of the best shots cryptocurrencies have ever had to generate widespread adoption. On the other hand, at a time that politicians are paying special attention to the power accumulated by a few massive tech companies, Libra could be the very thing that would put Facebook’s influence beyond general political acceptance.” —Lucas B.“It’s a game changer for the crypto world. For crypto to truly prosper, it must have trust and confidence — the foundation of any currency. Their Foundation approach will have a deep well of trust and confidence. And, of course, the ability to engage in commerce is essential and it appears as if they will be addressed, slowly but surely. As this expands, it could be the first real test to the USD as the world’s reserve and trade currency, a development that will not go over well. Directly or indirectly, I’d expect very heightened scrutiny of Facebook by the US Govt. And the banks will be the ones pushing for heightened supervision as this is a terrain they can’t touch while under direct Fed regulation.” —CharlesFINTECH $$:Tally, a San Francisco-based financial technology startup, raised $50 million in funding. Tally aims to automate the financial services of consumers at low cost. Jason Brown, Tally’s CEO and cofounder, toldFortunehe plans to use the cash infusion to hire software engineers to develop more products. He said the company had already done the difficult work—the “base layer stuff” involving data aggregation, ingestion, and error correction—and that it is now focused on quickly deploying add-on services, such as automatic student loan management and credit score improvement.Read more at Fortune.QUOTE OF THE DAY:“Let me be clear that this is not a business plan. It’s a tall tale.” —Softbank’s Masayoshi Sonafter saying that the value of Sofbank’s investment portfolio could grow 33-fold to 200 trillion yen ($1.8 trillion) in 20 years.
2. VENTURE DEALS•Meero,a Paris-based provider of on demand commercial photography services, raised $230 million in Series C funding.Eurazeo,Prime VenturesandAvenir Growthled the round, and were joined by investors includingGlobal Founders Capital, Aglaé Ventures, Alven, White Star CapitalandIdinvest.•Wolt, a Helsinki-based food delivery service, raised $130 million in Series C funding.ICONIQ Capitalled the round, and was joined by investors including83North, EQT Ventures, Highland EuropeandLifeline Ventures.•AnyVision, an Israel-based computer vision company specializing in AI-enabled face, body, and object recognition software, raised $74 million in Series A funding. Investors includeM12,DFJ Growth,andOJ Technology Partners.•Mattermost, a Palo Alto, Calif.-based provider of enterprise-grade messaging solutions, raised $50 million in Series B funding.Y Combinator Continuity Fundled the round, and was joined by investors includingBattery Ventures, RedpointandS28 Capital.•Arrive Logistics, an Austin, Texas-based technology-powered freight brokerage, raised $25 million in Series B funding.Lead Edge Capitalled the round.•goTenna, a New York-based mobile mesh networking platform, raised $24 million in Series C funding (equity and debt).Founders Fundled the round, and was joined by investors includingComcast Ventures,Union Square Ventures, Collaborative Fund, Walden VC, MentorTech, Bloomberg Beta,andSilicon Valley Bank.•Hazelcast, a Palo Alto, Calif.-based in-memory computing platform, raised $21.5 million in funding.C5 Capitalled the round, and was joined by investors includingBain Capital Ventures, Earlybird Venture CapitalandCapital One Growth Ventures.•Duffel, a U.K.-based global travel booking systems for mobile and web travel companies, raised $21.5 million in Series A funding. Investors includeBenchmark.Blossom Capital,andIndex Ventures.•Aunt Bertha,an Austin-based social service search and referrals software platform for people to find various social welfare programs, raised $16 million in Series C funding.Noro-Moseley Partnersled the round, and was joined by investors includingDigitalis Ventures, Techstars Ventures, Techstars Impact,andCapital Factory.•Text IQ, a New York-based provider of AI solutions for identifying sensitive information, raised $12.6 million in Series A funding. Investors includeFirstMark CapitalandSierra Ventures.•Enboarder, an Australia-based cloud-based HR technology company that helps employers create engaging employee onboarding experiences, raised $8 million in Series A funding.Greycroftled the round, and was joined by investors includingNext Coast VenturesandStage 2 Capital.•SafeAI, a Sunnyvale, Calif.-based developer of software as a service platform for the heavy equipment industry, raised $5 million in funding.Autotech Venturesled the round, and was joined by investors includingBrick & Mortar Ventures,Embark Ventures,andMonta Vista Capital.
3. PRIVATE EQUITY DEALS•Xirgo Technologies,LlLC, a portfolio company ofHKWacquiredUAB Baltic Car Equipment,a Lithuania-based manufacturer of telemetry equipment.
4. IPOs•Grocery Outlet Holding, an Emeryville, Calif..-based operator of discount grocery stores, plans to raise $318 million in an offering of shares priced between $18 to $19. The firm posted sales of $2.3 billion in sales for the 12 months ended December 31, 2018 and income of $15.9 million.Hellman & Friedmanbacks the firm. BofA Merrill Lynch, Morgan Stanley, Deutsche Bank, Jefferies, Barclays, Goldman Sachs, Guggenheim Securities, UBS Investment Bank, and Cowen are joint bookrunners. It plans to list on the Nasdaq as “GO.”Read more.•Stoke Therapeutics,a Bedford, Mass.-based maker of therapies for severe genetic diseases, raised $142 million in an IPO of 7.9 million shares priced at $18. It has yet to post a revenue. J.P. Morgan, Cowen, and Credit Suisse are underwriters. It plans to list on the Nasdaq as “STOK.”Read more.
5. FIRMS + FUNDS•Cathay Innovation,a global venture capital fund, raised EUR 320 million ($358 milion) for a new investment vehicle. The fund’s target is EUR 500 million ($560 million).•Arboretum Ventures,an Ann Arbor, Mich.-based venture capital firm, raised $250 million for its fifth fund, Arboretum V.
6. PEOPLE•Adna PekmezovicandZann Alijoined2048 Venturesas senior associates.
7. SHARE TODAY’S TERM SHEETView this email in your browser.Polina Marinovaproduces Term Sheet, andLucinda Shencompiles the IPO news. Send deal announcements to Polinahereand IPO news to Lucindahere. |
What Should We Expect From Johnson Matthey Plc's (LON:JMAT) Earnings In The Next Couple Of Years?
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Johnson Matthey Plc's (LON:JMAT) most recent earnings update in June 2019 showed that the business gained from a strong tailwind, eventuating to a double-digit earnings growth of 39%. Below, I've presented key growth figures on how market analysts perceive Johnson Matthey's earnings growth outlook over the next few years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.
View our latest analysis for Johnson Matthey
Analysts' outlook for the coming year seems rather muted, with earnings growing by a single digit 6.0%. The growth outlook in the following year seems much more positive with rates generating double digit 14% compared to today’s earnings, and finally hitting UK£509m by 2022.
Although it’s helpful to understand the growth rate each year relative to today’s level, it may be more beneficial to gauge the rate at which the business is growing on average every year. The pro of this approach is that it ignores near term flucuations and accounts for the overarching direction of Johnson Matthey's earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I've inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 7.4%. This means, we can anticipate Johnson Matthey will grow its earnings by 7.4% every year for the next few years.
For Johnson Matthey, I've compiled three key factors you should further examine:
1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Valuation: What is JMAT 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 JMAT is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of JMAT? 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. |
Why Nokia Stock Is a Show-Me-First Situation
It has been a rough run for shares of Nokia (NYSE: NOK ) over the past several years. This was once one of the world’s largest mobile phone companies. Today, the company doesn’t even have a mobile phone business. Instead, market forces have relegated NOK to selling end-to-end networking solutions to telecom-service providers. NOK Stock: Why Nokia Stock Is a "Show Me First" Situation Source: Shutterstock That’s a fine business. But it’s not a growth one. As such, during the process of Nokia going from huge mobile phone maker to networking solutions provider, NOK stock has dropped from $15 a decade ago to $5 today. Now, 5G is supposed to save the day for Nokia. Broadly, the mainstream commercial roll out of the next-gen wireless technology may significantly expand the company’s addressable market. Ultimately, this transition could drive revenues and margins materially higher. InvestorPlace - Stock Market News, Stock Advice & Trading Tips While possible, revenues and margins haven’t moved materially higher in several years. Thus, investors won’t believe it until they see it. They aren’t seeing it now, nor do I anticipate such a development soon. Thus, NOK stock will likely remain depressed for the foreseeable future. 5G Could Save the Day Currently, management is pitching the idea that 5G is going to save the day for Nokia stock. They may be right. 5 Stocks to Buy for $20 or Less 5G is a huge revolution and advancement in the global-telecom world. Put simply, it’s far superior to anything currently available. It’s also launching at a time when: a) the number of connected devices in the world is growing exponentially, and b) every service is becoming an internet service in some shape or form. Thus, 5G isn’t just better. It also has the potential to dramatically expand the addressable market. Nokia is at the heart of the 5G pivot. The company makes and sells the end-to-end networking solutions which are essentially the building blocks for 5G coverage. NOK has also won over 40 5G contracts, which is more than any other components provider. Essentially, these deals make them the global end-to-end 5G-solutions leader. Story continues That’s why Nokia management is so excited about this transformational tech. If the 5G market does live up to the hype — and if NOK maintains market leadership position — revenues and profits will head materially higher over the next several years. That robust profit growth will launch Nokia stock upward, especially from today’s depressed base. Shares currently trade at just 13-times forward earnings, with about 25% of the market capitalization covered in cash on the balance sheet. This Is a “Show Me” Situation Unfortunately, the aforementioned bull thesis lacks conviction, given the company’s track record of persistent revenue declines and margin erosion. Ever since Nokia spun off its mobile phone business in 2012, this company has had trouble reporting consistently positive results. Revenue declines have characterized most years since then. Additionally, margin compression and negative profit growth have stymied NOK stock during that same timeframe. To sump up, NOK is associated with negative revenue growth, margin compression, and profit erosion. Investors aren’t going to believe that this shoddy trajectory will suddenly inflect higher because of the 5G rollout. Instead, investors will require proof that this will happen. Like it or not, that proof will come in the form of improved numbers. That isn’t happening yet. Last quarter, revenues declined, and margins compressed. It also likely won’t happen soon. Analysts expect revenues and profits to drop down this quarter too, and the quarter after that. In other words, the numbers aren’t going to improve in a meaningful way anytime soon. That’s because the bulk of the 5G rollout has been pushed back to 2020. Until those numbers do improve, Nokia stock won’t stage a sustainable move higher. That’s why you should avoid shares right now. Bottom Line on NOK Stock 5G could save the day for Nokia stock. However, things have been depressed at this company for so long, that investors won’t believe in the 5G turnaround until they see it. They aren’t seeing it today. They won’t see it anytime soon. As such, for the foreseeable future, NOK stock will remain depressed. As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace 4 Top American Penny Pot Stocks (Buy Before June 21) 5 Red-Hot IPO Stocks to Buy for the Long Run 5 Stocks to Buy for $20 or Less 4 Dow Jones Stocks Ready to Rise Compare Brokers The post Why Nokia Stock Is a Show-Me-First Situation appeared first on InvestorPlace . |
This Marijuana Top Pick Just Earned a Downgrade
There's arguably no industry that's generating more buzz right now than cannabis.
As legalizations have taken place in Canada, throughout multiple U.S. states, and around the world, we've witnessed the budding potential of this industry, with Arcview Market Research and BDS Analytics citing$12.2 billion in global sales in 2018. Considering that tens of billions of dollars are being sold annually in the global black market, the opportunity is ripe for these sales to be gradually moved to legal channels as more countries roll out the red carpet for cannabis. If this happens, opportunistic pot stock investors who stay the course could walk away with a lot of green.
But as is often the case with any nascent industry that faces high expectations, hiccups are prevalent. In Canada, we've witnessed persistent supply shortages wreak havoc on the operating results of most marijuana stocks. And while Wall Street has mostly been forgiving of these weaker results, that's not always the case.
Image source: Getty Images.
Last week, Quebec-basedHEXO(NYSEMKT: HEXO)reported its fiscal third-quarter operating results. The company wound up generatingaround 13 million Canadian dollars in sales(about $9.8 million), which was far and away more than it sold in cannabis at this time last year, but was actually down 3% from the second quarter. HEXO also wound up losing about CA$17.6 million on an operating basis if one-time gains from the fair-value adjustments on biological assets were taken out of the equation.
While these results were mostly disappointing, they weren't unexpected given Canada's supply-chain problems. However, that didn't stop one investment firm from downgrading HEXO.
Shortly after dishing on its third-quarter results, CIBC analyst John Zamparo downgraded HEXO to a rating of neutral from outperform, while also lowering his price target on the company by more than 10%, to CA$8.50 ($6.34) from CA$9.50. The reason? Despite HEXO forecasting CA$400 million in sales in fiscal 2020, Zamparo sees risks in the company's plan to launch a host of derivative products. That makes Zamparo and CIBC considerably more cautious on the company.
Of course, keep in mind that analyst ratings and price targets can differ greatly -- especially in a nascent industry like legal cannabis. Christopher Carey at Bank of America continues to tout HEXO ashis firm's top pick in the space, with a $10 price target on the shares. Even after its weaker-than-expected third-quarter results, B of A has stood by its longer-term outlook on HEXO.
Which investment bank is right?
The surprising answer is that they both might be correct.
Image source: Getty Images.
On one hand, HEXO does have thehallmarks of a winning cannabis play. Following the closure of its Newstrike Brands acquisition for nearly $200 million, HEXO is now Canada's sixth-largest producer at peak capacity (150,000 kilos a year). As a top-tier production company, that makes HEXO a logical supply partner.
It also has one of the most de-risked production portfolios among growers, with an aggregate of 200,000 kilos of output heading to its home province of Quebec on afive-year supply deal. Inclusive of its Newstrike acquisition, and factoring in its ramp-up, this might work out to 30% of its total production through 2023 already being spoken for. Quebec also holds the option to extend this supply deal for a sixth year.
Quietly, HEXO has also been landing a number of important, high-margin partnership deals. It formed ajoint venturewithMolson Coors Brewingin early August that'll see the duo create a line of nonalcoholic cannabis-infused beverages, which will be sold under the brand name of Truss. These infused beverages, along with a host of alternative consumption options, are set to go on sale by no later than mid-October.
HEXO's two-year deal withValens GroWorksalso can't be ignored. As part of the agreement, HEXO will supply Valens with at least 30,000 kilos of hemp and cannabis biomass in the first year for extraction purposes, with the amount being supplied increasing to at least 50,000 kilos in the second year. When combined with more than 600,000 square feet of processing and manufacturing space of its own, it's very clear that HEXOhas its eye on high-margin derivative product expansion.
Image source: Getty Images.
On the other hand, Zamparo at CIBC brings up an overlooked, butincrediblyimportant fact. Namely, that there will be aboatload of competition in the derivative space, especially when it comes to infused beverages. It's unclear at this point just how much of a needle-mover these derivative products will be in the early going. Yet given HEXO's aggressive call for CA$400 million in fiscal 2020 sales, the launch of these derivative products would have to be close to flawless for the company to meet its sales goal.
To build on this point, we've witnessed a dried flower supply shortage since the recreational marijuana market opened in Canada last October. There's absolutely no guarantee that compliant packaging shortages and regulatory red tape are resolved by the time derivative products are ready to hit dispensary store shelves. Demand hasn't been an issue for Canada's cananbis industry since mid-October. But persistent supply-chain problems could quickly deflate the buzz surrounding the launch of derivative products.
CIBC may also be factoring in a weaker bottom-line outlook as a result of these supply chain woes. Wall Street's full-year consensus per-share loss estimate for fiscal 2019 has more than doubled to CA$0.16 over the past three months, while analysts' fiscal 2020 profit per share estimate has dropped by almost 30%. CIBC's lowered price target may more adequately reflect that HEXO's path to profitabilitywon't be as smooth as expected.
Ultimately, both Carey and Zamparo may be correct, with Zamparo highlighting near-term concerns that could constrain HEXO's valuation, and Carey seeing the long-term value in a mature HEXO.
More From The Motley Fool
• Beginner's Guide to Investing in Marijuana Stocks
• Marijuana Stocks Are Overhyped: 10 Better Buys for You Now
• Your 2019 Guide to Investing in Marijuana Stocks
Sean Williamsowns shares of BAC. The Motley Fool owns shares of TAP. The Motley Fool recommends HEXO. The Motley Fool has adisclosure policy. |
Axalta Coating Systems says exploring potential sale of company
June 19 (Reuters) - Axalta Coating Systems Ltd initiated a review of strategic options, including a potential sale of the company, the coatings producer said on Wednesday.
Axalta's market cap was $6.06 billion as of Tuesday's close, according to IBES data from Refinitiv.
The company said it has hired Evercore and Barclays as financial advisers to assist in the review. (Reporting by Debroop Roy in Bengaluru; Editing by Shailesh Kuber) |
Introducing Mexican Gold (CVE:MEX), The Stock That Tanked 93%
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Some stocks are best avoided. It hits us in the gut when we see fellow investors suffer a loss. Spare a thought for those who heldMexican Gold Corp.(CVE:MEX) for five whole years - as the share price tanked 93%. And we doubt long term believers are the only worried holders, since the stock price has declined 73% over the last twelve months. Shareholders have had an even rougher run lately, with the share price down 39% in the last 90 days.
While a drop like that is definitely a body blow, money isn't as important as health and happiness.
See our latest analysis for Mexican Gold
Mexican Gold hasn't yet reported any revenue yet, so it's as much a business idea as an actual business. 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). For example, investors may be hoping that Mexican Gold finds some valuable resources, before it runs out of money.
As a general rule, if a company doesn't have much revenue, and it loses money, then it is a high risk investment. There is almost always a chance they will need to raise more capital, and their progress - and share price - will dictate how dilutive that is to current holders. While some such companies go on to make revenue, profits, and generate value, others get hyped up by hopeful naifs before eventually going bankrupt. Some Mexican Gold investors have already had a taste of the bitterness stocks like this can leave in the mouth.
Our data indicates that Mexican Gold had CA$397,938 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 with the share price diving 41% per year, over 5 years, it's probably fair to say that some shareholders no longer believe the company will succeed. The image below shows how Mexican Gold's balance sheet has changed over time; if you want to see the precise values, simply click on the image.
Of course, the truth is that it is hard to value companies without much revenue or profit. Would it bother you if insiders were selling the stock? I 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 the broader market gained around 1.4% in the last year, Mexican Gold shareholders lost 73%. 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 41% 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. Most investors take the time to check the data on insider transactions. You canclick here to see if insiders have been buying or selling.
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 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. |
Can We See Significant Insider Ownership On The Contango Oil & Gas Company (NYSEMKT:MCF) Share Register?
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A look at the shareholders of Contango Oil & Gas Company (NYSEMKT:MCF) 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 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$67m, Contango Oil & Gas 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. Let's take a closer look to see what the different types of shareholder can tell us about MCF.
Check out our latest analysis for Contango Oil & Gas
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.
Contango Oil & Gas already has institutions on the share registry. Indeed, they own 46% of the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Contango Oil & Gas's historic earnings and revenue, below, but keep in mind there's always more to the story.
Contango Oil & Gas is not owned by hedge funds. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
It seems insiders own a significant proportion of Contango Oil & Gas Company. Insiders have a US$11m stake in this US$67m 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, with a 37% stake in the company, will not easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
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 discover what analysts are predicting in terms of future growth, do not miss thisfreereport on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Electric planes start small as industry wrestles with emissions
By Laurence Frost and Alistair Smout LE BOURGET (Reuters) - An all-electric commuter plane and a small Airbus-backed hybrid are among aircraft programs being touted at the Paris Airshow, as the industry tries to convince a skeptical public it can deliver on a pledge to halve carbon emissions by 2050. Israeli startup Eviation has wheeled out Alice, a battery-powered nine-seater due for its maiden flight later this year, while Airbus and suppliers Safran and Daher are showing a scale model of their planned EcoPulse, a similarly sized short-hopper that packs a fuel tank as well as batteries. The electric debuts come as European finance ministers are expected later this week to discuss ending aviation fuel tax exemptions in order to curb greenhouse emissions. The spread of social media posts "flight-shaming" air travel has also jangled executives' nerves and added pressure to electrify, following the auto industry's lead. Unlike cars, however, electric planes must heft their power packs aloft - a reality that limits them to small aircraft on the shortest routes, as even their proponents concede. "The impact of battery weight is an order of magnitude more severe for us," said Stephane Cueille, Safran's head of research, technology and innovation. The EcoPulse's engine drives a central propeller and a generator to recharge its batteries and power additional electric props spread along the wingspan, delivering 20-40% fuel savings on trips up to several hundred kilometers. Whereas the French plane is still on the drawing board, Alice's smooth contours can be seen on the tarmac at Le Bourget, north of Paris. Eviation is aiming for a first test-flight later this year and U.S. certification by 2022. On a single charge, Alice can fly 650 miles (1,046 kilometers) at 10,000 feet with a cruising speed of 276 miles per hour. Cape Air, a Massachusetts-based regional carrier, has taken an option to add a double-digit number of the $4 million planes to its fleet, Eviation disclosed at the show. FLYING BATTERY The aircraft, with a flattened profile and propellers at its wing tips, was designed as an electric plane from the ground up, said Omer Bar-Yohay, Eviation's founder and CEO. "It's basically a huge battery with some plane painted on it," he told reporters. Among signs of growing interest from traditional players, engine maker Rolls-Royce said on Tuesday it had bought the electric aerospace division of Germany's Siemens - which is also one of the suppliers of motors to Alice. Story continues Engineers see a bigger future for hybrids, which can combine lighter, downsized jet engines with an electric boost during take-off and climb, for a 30% fuel saving. The additional thrusters or e-propellers also help stability, allowing a more streamlined airframe to reduce drag and consumption further. "Then you're starting to get to the kind of economics and sustainability that's closer to a bus than it is to aviation historically," United Technologies Chief Technology Officer Paul Eremenko said during a panel discussion. UBS predicts demand for $178 billion in green aviation technologies by 2040 as they become more mainstream. "The consumer is probably going to demand an acceleration in this space," said Celine Fornaro, the Swiss bank's head of industrials research. "It's starting to be more present in everyone's conscience." Airbus is also looking at hybrid-electric technology for future passenger aircraft generations, but few would bet on its readiness to power the 200-seaters expected to replace the workhorse A320 jet family in the 2030s. Carbon emissions from commercial aviation account for about 2.5% of the global total but are set to expand in step with emerging middle classes, especially in Asia. To counter their impact, the industry is introducing the CORSIA program, which requires airlines to fund cuts to atmospheric carbon dioxide elsewhere, offsetting their emissions growth while awaiting hybrid planes and alternative fuels. 'DECADES AWAY' Reconciling airlines' growth ambitions with their promised 50% carbon emissions cut from 2005 levels will be no easy task. "We don't know how that's going to happen yet," said Greg Hyslop, Boeing's technology chief. But aerospace leaders are adamant that the answer cannot be fewer flights. "We've got to make aviation grow and be sustainable," Rolls-Royce CTO Paul Stein said during the same panel. "Those who propose traveling less are heading for a darker place." Brussels-based lobby group Airlines for Europe said "taxing aviation is not a solution", in a statement ahead of the EU ministerial meetings starting on Thursday in the Netherlands. But campaigners like Greenpeace transport specialist Sarah Fayolle say taxation and other regulation is warranted by the urgent need to slash emissions. "We're facing a climate emergency that cannot wait for uncertain technological solutions that are decades away," she said. (Reporting by Laurence Frost and Alistair Smout; Editing by Mark Potter) View comments |
Is MagForce AG (FRA:MF6) Trading At A 50% Discount?
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In this article we are going to estimate the intrinsic value of MagForce AG (FRA:MF6) 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.
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 MagForce
We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate:
[{"": "Levered FCF (\u20ac, Millions)", "2019": "\u20ac-11.10", "2020": "\u20ac-8.80", "2021": "\u20ac-9.19", "2022": "\u20ac18.80", "2023": "\u20ac15.35", "2024": "\u20ac15.84", "2025": "\u20ac16.20", "2026": "\u20ac16.47", "2027": "\u20ac16.68", "2028": "\u20ac16.83"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x2", "2020": "Analyst x2", "2021": "Est @ 4.43%", "2022": "Analyst x1", "2023": "Analyst x1", "2024": "Est @ 3.17%", "2025": "Est @ 2.29%", "2026": "Est @ 1.67%", "2027": "Est @ 1.24%", "2028": "Est @ 0.93%"}, {"": "Present Value (\u20ac, Millions) Discounted @ 5.92%", "2019": "\u20ac-10.48", "2020": "\u20ac-7.84", "2021": "\u20ac-7.73", "2022": "\u20ac14.94", "2023": "\u20ac11.52", "2024": "\u20ac11.22", "2025": "\u20ac10.84", "2026": "\u20ac10.40", "2027": "\u20ac9.94", "2028": "\u20ac9.47"}]
Present Value of 10-year Cash Flow (PVCF)= €52.27m
"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 0.2%. We discount the terminal cash flows to today's value at a cost of equity of 5.9%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = €17m × (1 + 0.2%) ÷ (5.9% – 0.2%) = €297m
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €€297m ÷ ( 1 + 5.9%)10= €166.97m
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 €219.24m. 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 €8.32. Compared to the current share price of €4.2, the company appears quite good value at a 50% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.
The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at MagForce 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 5.9%, which is based on a levered beta of 0.954. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For MagForce, I've put together three essential aspects you should further examine:
1. Financial Health: Does MF6 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 MF6'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 MF6? 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 DE 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. |
Facebook lobs a 'Hail Mary' as it faces scrutiny over data-sharing practices
Facebook’s (FB) ambitiouscryptocurrency project ‘Calibra’comes as the social media behemoth continues to face scrutiny about data privacy. While Calibra may actually amplify those concerns for some, at least one expert thinks it may help alter the way people view the platform’s data-sharing practices.
“This is kind of their ‘Hail Mary’ to actually change the way you look at privacy, but also their ability to grow their next billion dollar market,” R "Ray" Wang, Constellation Research Principal Analyst & Founder tells Yahoo Finance’s“The Ticker.”
In its description of Calibra, Facebook states explicitly: “Calibra will not share account information or financial data with Facebook, Inc or any third party without customer consent. For example, Calibra customers’ account information and financial data will not be used to improve ad targeting on the Facebook, Inc family of products.”
Facebook nevertheless faces an uphill battle. On Tuesday, Rep. Maxine Waters (D-CA) called on the social media company to “agree to a moratoriumon any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues.”
With Calibra, Facebook is aiming to shakeup the global payment industry.
“This is basically the next version of PayPal. If PayPal were to evolve, it would have become a crypto that’s in a P2P (peer-to-peer) digital custodial wallet,” Wang said. “What they’re smartly doing is creating these joint ventures around what we call data-driven digital networks.”
In fact, PayPal (PYPL) is one of the 28 founding members part of the ‘Libra Association,’ that willoverseethe new digital coin. Other partners include Mastercard (MA), eBay (EBAY) and Uber Technologies (UBER).
Wang also predicts Facebook’s cryptocurrency could revamp cross-border commerce.
“Just like what’s happening in China today with Alipay, there needs to be an equivalent,” he said. “Because we’re seeing basically a U.S. versus China kind of war on the Internet and on all things digital lifestyle.”
—
McKenzie Stratigopoulos is a producer at Yahoo Finance. Follow her on Twitter:@McKenzieBeehler
Read more:
• Republican senator: Facebook is 'expanding their monopoly' with Libra
• Facebook's cryptocurrency project is called Calibra, will launch in 2020
Read the latest financial and business news from Yahoo Finance
Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,SmartNews,LinkedIn,YouTube, andreddit. |
Do Directors Own Microbix Biosystems Inc. (TSE:MBX) Shares?
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A look at the shareholders of Microbix Biosystems Inc. (TSE:MBX) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'
Microbix Biosystems is not a large company by global standards. It has a market capitalization of CA$28m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions don't own many shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about MBX.
View our latest analysis for Microbix Biosystems
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
Less than 5% of Microbix Biosystems is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.
Hedge funds don't have many shares in Microbix Biosystems. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our most recent data indicates that insiders own a reasonable proportion of Microbix Biosystems Inc.. Insiders own CA$4.4m worth of shares in the CA$28m 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.
The general public, mostly retail investors, hold a substantial 79% stake in MBX, suggesting it is a fairly popular stock. This size of ownership gives retail investors collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph.
Of coursethis may not be the best stock to buy. Therefore, you may wish to see ourfreecollection of interesting prospects boasting favorable financials.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Evrim and Harvest Gold Extend Cerro Cascaron Agreement in Mexico
VANCOUVER, BC / ACCESSWIRE / June 19, 2019 /Evrim Resources Corp. (EVM.V) ("Evrim" or the "Company") is pleased to announce it has signed a letter agreement (the "Agreement") with Harvest Gold Corp. ("Harvest Gold") to extend the Cerro Cascaron agreement for a period of six months (the "Extension"). Under the terms of the Agreement, Evrim and Harvest Gold will attempt to renegotiate the terms of the Cerro Cascaron agreement and search for a new gold project in Mexico.
During the Extension, Evrim's generative team will review projects within its existing property portfolio and locate projects in prospective gold belts in northern Mexico that are aligned with Harvest Gold's exploration strategy. Evrim has agreed to use commercially reasonable efforts to acquire a prospective project and subsequently negotiate option terms with Harvest Gold.
Harvest has agreed to pay $55,000 to Evrim to maintain property payments at Cerro Cascaron while both parties renegotiate the Cerro Cascaron agreement. Once the Cerro Cascaron agreement has been renegotiated, Harvest Gold plans to complete a second target drill program on the property. To date, Harvest Gold has spent $1.25 million exploring and drilling the Cerro Cascaron project.
About the Cerro Cascaron Project
The Cerro Cascaron property hosts a low to intermediate sulphidation epithermal gold system that includes a gold-bearing vein in the eastern part of the property. Veining has been mapped over 900 vertical metres, with classic textural evidence of hydrothermal boiling accompanying the highest gold grades. The proposed boiling zone has been established in the upper 380 metres of the vein field. Beneath the boiling zones, silver and base metal rich veins and breccias provide additional exploration targets.
Cerro Cascaron's setting and mineralization are similar to many epithermal deposits in the Sierra Madre Occidental, including Minera Frisco SAB's Ocampo Mine to the northwest, Coeur Mining Inc.'s Palmarejo mine, and First Majestic Silver's San Martin de Bolaños silver mine.
Qualified Person Statement
Evrim's disclosure of technical or scientific information in this press release has been reviewed and approved by Stewart Harris, P.Geo. Vice President, Technical Services for the Company. Mr. Harris serves as a Qualified Person under the definition of National Instrument 43-101.
About Evrim Resources
Evrim is a precious and base metals project generator, with early stage exploration projects and a database covering substantial areas of Mexico, western Canada and portions of southwestern United States. We focus our expertise on identifying new early stage exploration targets which are later advanced through option and joint venture agreements with industry partners to create shareholder value and avoid stock dilution. Evrim's business plan also includes royalty creation utilizing the Company's exploration expertise and existing projects.
On Behalf of the BoardEVRIM RESOURCES CORP.
Paddy NicolPresident & CEO
To find out more about Evrim Resources Corp., please contact Paddy Nicol, President or Liliana Wong, Investor Relations Manager at 778-929-3382.
Visit our website atwww.evrimresources.com.
Forward Looking Information
This news release includes certain statements that may be deemed 'forward looking statements'. All statements in this news release, other than statements of historical facts, that address events or developments that Evrim Resources Corp. (the 'Company") expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words 'expects', 'plans', 'anticipates', 'believes', 'intends', 'estimates', 'projects', 'potential' and similar expressions, or that events or conditions 'will', 'would', 'may', 'could' or 'should' occur.
Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward looking statements. Factors that could cause the actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by securities laws, the Company undertakes no obligation to update these forward looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
SOURCE:Evrim Resources Corp.
View source version on accesswire.com:https://www.accesswire.com/549055/Evrim-and-Harvest-Gold-Extend-Cerro-Cascaron-Agreement-in-Mexico |
New chairman Persson pledges to "clean" scandal-hit Swedbank
By Johan Ahlander and Esha Vaish STOCKHOLM (Reuters) - Swedbank shareholders elected Goran Persson as chairman on Wednesday, with the former Swedish Prime Minister pledging to "clean the house" after a money-laundering scandal. Sweden's oldest retail bank has lost its chief executive, chairman and a third of its stock market value this year as its Estonian business was embroiled in a money laundering inquiry. Swedbank, which is under investigation in the United States, the Baltics and Sweden, now faces the potential threat of sanctions and fines as it seeks to regain public confidence. The most recent allegations against Swedbank, reported by Swedish state TV in March, say it processed gross transactions of up to 20 billion euros a year from high-risk, mostly Russian non-resident clients, through Estonia from 2010 to 2016. Swedbank suspended its two top Estonian executives on Tuesday as part of an internal inquiry into its compliance with anti-money laundering rules which it launched in April under shareholder pressure for greater transparency. Swedbank bulked up its board with three appointments at its annual shareholder meeting, including the addition of Persson, as it seeks to regain investor confidence following the scandal, which has also engulfed neighbouring Danske Bank. The 70-year-old former Swedish politician has emerged as a troubleshooter since playing an instrumental role in reviving Sweden's economy after a financial crisis in the 1990s. Persson, a Social Democrat who served as prime minister for a decade until 2006 and has since sat on several boards including smaller regional lender Alandsbanken, vowed to restore confidence in Swedbank and work for a better corporate culture. "We're going to clean our house. That work starts now," Persson said after his election as chairman of Swedbank, whose shares were up 1% to 140.50 Swedish crowns at 1031 GMT. Shareholders also voted in Bo Magnusson and Josefin Lindstrand as new members of the board, which also faces the task of finding a new chief executive for the bank. Persson expects a new CEO to be in place by "end of autumn." (Reporting by Johan Ahlander and Esha Vaish in Stockholm; editing by Johannes Hellstrom and Alexander Smith) |
Save over £400 on the latest Apple iPad Pro from Amazon
TL;DR:The latestApple iPad Prois on sale for just £1,050 on Amazon, saving you £469 on list price.
When it comes to great deals, it's not always about last year's model or an outdated design. Sometimes, the best deals are on the latest models.
You can nowsave a massive £469on the latest model of theApple iPad Proon Amazon. The hugely popular device is available for just £1,050, and comes packed with a lengthy list of impressive features.
TheApple iPad Procomes with an 11-inch edge-to-edge Liquid Retina display with ProMotion, True Tone, and wide colour. The device is equipped with a powerful A12X Bionic chip, and has a battery life of up to 10 hours. You can get your work done wherever you are, on a sleek and stylish device that will turn heads.Read more...
More aboutApple,Ipad Pro,Mashable Shopping,Shopping Solo, andShopping Uk |
Look at These 3 Northern Mutual Funds
Founded in 1889, Northern Trusts manages assets worth over $956 billion (as of Mar 31, 2019) based on assets raised in the country. The company generally focuses on funds that have long-term performance. Moreover, all the Northern funds bear no sales load, making them strong investment choices for those seeking low-cost funds.
Northern Trusts is one of the major asset management companies, providing a variety of investment solutions and strategies to both individuals and institutions. It comprises investment professionals with experience of more than 15 years. At present, the company has more than 20 branches globally and around 18,800 employees all over the world.
Below we focus on three top-ranked Northern mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform peers. Investors can click here to see the complete list of Northern funds.
Northern Global Sustainability IndexNSRIX invests almost all its assets in equity securities of companies included on the MSCI World ESG Index. The MSCI World ESG Index generally includes large-and mid-cap companies from developed markets like the United States, Canada, Europe, Asia-Pacific and the Middle East. Northern Global Sustainability Index has three-year annualized returns of 8.8%.
Thomas E. O'Brien is one of the fund managers of NSRIX since 2008.
Northern Short-Intermediate U.S. Government FundNSIUX aims to gain maximum total return with minimal reasonable risk. The fund invests the majority of its assets in securities issued or guaranteed by the U.S. government or by its agencies, instrumentalities or sponsored enterprises and repurchase agreements relating to such securities. Northern Short-Intermediate U.S. Government Fund has returned 0.9% inthe past three years.
NSIUX has an expense ratio of 0.42% compared with the category average of 0.72%.
Northern Large Cap ValueNOLVX invests a large chunk of its assets in securities of those large-cap companies, whose market-cap is similar to those present on the Russell 1000 Value Index. The fund seeks capital growth for the long run. Northern Large Cap Value has three-year annualized returns of 7.5%.
As of March 2019, NOLVX held 140 issues, with 3.26% of its assets invested in Chevron Corp
To view the Zacks Rank and past performance of all Northern mutual funds, investors can click here to see the complete list of Northern funds.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportGet Your Free (NSRIX): Fund Analysis ReportGet Your Free (NOLVX): Fund Analysis ReportGet Your Free (NSIUX): Fund Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
EU's Tusk hopes for top jobs deal on Thursday
BRUSSELS (Reuters) - European Council President Donald Tusk said on Wednesday that he hoped EU's leaders would agree on new names for the bloc's top jobs when they meet in Brussels on Thursday.
Multiple diplomats and officials have warned it may be too soon for an agreement at this week's summit chaired by Tusk, citing disagreement between Berlin and Paris over a German candidate's bid to become the bloc's chief executive.
"There are different views, different interests, but also a common will to finalise this process before the first session of the European Parliament," Tusk said in an invitation letter to the 28 national leaders.
"I remain cautiously optimistic, as those I have spoken to have expressed determination to decide swiftly. I hope we can make it on Thursday."
(Reporting by Philip Blenkinsop, Writing by Gabriela Baczynska; Editing by Alissa de Carbonnel) |
Is M.D.C. Holdings, Inc.'s (NYSE:MDC) Balance Sheet Strong Enough To Weather A Storm?
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Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like M.D.C. Holdings, Inc. (NYSE:MDC), with a market cap of US$2.0b, are often out of the spotlight. However, generally ignored mid-caps have historically delivered better risk-adjusted returns than the two other categories of stocks. Let’s take a look at MDC’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. Don’t forget that this is a general and concentrated examination of M.D.C. Holdings’s financial health, so you should conduct further analysisinto MDC here.
Check out our latest analysis for M.D.C. Holdings
MDC's debt level has been constant at around US$1.1b over the previous year – this includes long-term debt. At this constant level of debt, the current cash and short-term investment levels stands at US$416m , ready to be used for running the business. On top of this, MDC has generated US$108m in operating cash flow during the same period of time, resulting in an operating cash to total debt ratio of 9.6%, signalling that MDC’s operating cash is less than its debt.
At the current liabilities level of US$387m, the company has been able to meet these obligations given the level of current assets of US$2.9b, with a current ratio of 7.43x. The current ratio is the number you get when you divide current assets by current liabilities. Having said that, a ratio greater than 3x may be considered by some to be quite high, however this is not necessarily a negative for the company.
With a debt-to-equity ratio of 68%, MDC can be considered as an above-average leveraged company. This is not unusual for mid-caps as debt tends to be a cheaper and faster source of funding for some businesses.
MDC’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 MDC's liquidity needs, this may be its optimal capital structure for the time being. I admit this is a fairly basic analysis for MDC's financial health. Other important fundamentals need to be considered alongside. I recommend you continue to research M.D.C. Holdings to get a more holistic view of the mid-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for MDC’s future growth? Take a look at ourfree research report of analyst consensusfor MDC’s outlook.
2. Valuation: What is MDC 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 MDC 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. |
Ventas Announces R&I Development Commitments Worth $0.8B
Ventas, Inc.VTR recently announced four new developments, totaling approximately $0.8 billion in its university-based Research & Innovation (R&I) segment. These investments are part of the $1.5-billion R&I investment pipeline announced by the company this February.
All the projects were announced in partnership with Wexford Science & Technology, LLC — a well-known developer of university-focused real estate solutions. The developments consist of two projects in the Philadelphia University City (uCity) submarket — a new development in association with the University of Pennsylvania and The College of Nursing and Health Professions, Drexel University — totaling $400 million.
It also includes the Pitt immune transplant and therapy center with the University of Pittsburgh as well as expansion of the dynamic Cortex Innovation Community, along with Washington University in St. Louis. The projects are expected to open in 2021-2022.
With the previously-announced development at Arizona State University, Ventas has commitment to its R&I pipeline amounts to $0.9 billion. These projects expand the company’s R&I portfolio by 1.5 million square feet and are 40% pre-leased. Further, it is anticipated to drive value accretion at stabilization, with unlevered cash yield of more than 7% and GAAP yield of more than 8%.
Notably, such investments offer Ventas the opportunity to capitalize on the growing healthcare-driven research and development, supported by top-tier research universities. In fact, pro forma for announced developments, the company’s R&I portfolio will span approximately eight million square feet and likely generate around $230 million in annual net operating income, when the projects stabilize.
Furthermore, with relationships with more than 15 leading research universities in its R&I portfolio, the company is well poised to cater the rapidly aging population.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have rallied 11.3% compared with the industry’s growth of 9.3%.
Key Picks
Investors can also consider some better-ranked stocks from the same space like Host Hotels & Resorts, Inc. HST, Lamar Advertising Company LAMR and Duke Realty Corporation DRE, carrying a Zacks Rank of 2 (Buy), currently. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Host Hotels & Resorts’ funds from operations (FFO) per share estimates for 2019 moved marginally north to $1.82 over the past month.
Lamar Advertising’s FFO per share estimates for the ongoing year have been revised slightly upward to $5.83 in 30 days’ time.
Duke Realty’s FFO per share estimates for the current year moved up to $1.41 in the past month.
This Could Be the Fastest Way to Grow Wealth in 2019Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated+98%,+119%and+164%gains in as little as 1 month.Click here to see these breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportLamar Advertising Company (LAMR) : Free Stock Analysis ReportVentas, Inc. (VTR) : Free Stock Analysis ReportDuke Realty Corporation (DRE) : Free Stock Analysis ReportHost Hotels & Resorts, Inc. (HST) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Here's Why it is Worth Buying Energy Recovery (ERII) Stock Now
Energy Recovery, Inc.ERII currently seems to be a smart choice for investors, seeking exposure in the pollution control space. Solid fundamentals and positive revision in earnings estimates are reflective of healthy growth potential of the stock.This San Leandro, CA-based company currently carries a Zacks Rank #2 (Buy). It belongs to the Zacks Pollution Control industry, currently placed in the top 40% (with Zacks Industry Rank #102) of more than 250 Zacks industries. Notably, the top 50% of the Zacks-ranked industries tend to outperform the bottom 50% by a factor of more than 2 to 1.We believe that stringent government regulations, pollution-related risks and growing demand in emerging nations are aiding pollution control equipment and services.Below we discussed why investing in Energy Recovery will be a smart choice.Share Price Performance, Impressive Earnings Outlook:Market sentiments seem to be working in favor of Energy Recovery over time. In the past year, the company’s share price has gained 20.9% compared with the industry’s growth of 14.4%.
It is worth mentioning here that its shares have gained 7.2% since the release of first-quarter 2019 results on May 2, 2019. The company’s quarterly earnings of 5 cents per share were 66.67% above the Zacks Consensus Estimate of 3 cents. Average earnings surprise for the last four quarters was a positive 225%.The company stands to gain from growing demand for fresh water across the globe as well as technological advancements in the oil & gas activities.In the past 60 days, earnings estimates for 2019 and 2020 have been revised upward, reflecting positive sentiments about the company’s growth prospects. Currently, the Zacks Consensus Estimate for Energy Recovery is pegged at 27 cents for 2019 and 54 cents for 2020, reflecting growth of 3.8% and 10.2% from the respective 60-day-ago tallies. In addition, earnings estimates for the second quarter of 2019 have grown from 5 cents per share to 6 cents.Energy Recovery, Inc. Price and Consensus
Energy Recovery, Inc. price-consensus-chart | Energy Recovery, Inc. Quote
Healthy Water Business:The company operates through two segments, one being Water segment. This business stands to gain from growing popularity of seawater reverse osmosis (SWRO) desalination in the water industry across the world.Energy Recovery provides energy recovery devices (including PX Pressure Exchanger and AT Turbocharger) and pumps (including AquaBold High Pressure Pump, Horizontal Circulation Pump and Vertical Circulation Pump).It is worth mentioning here that the company has won multiple contracts to deliver its PX Pressure Exchanger to customers in Asia, the Kingdom of Saudi Arabia, the United Arab Emirates and Oman so far in 2019.Growing Oil & Gas Business:The second business segment of Energy Recovery is Oil & Gas. Technological expertise, extensive marketing efforts, and rising demand for hydraulic fracturing solution and mud pumping solutions have been boons for this business. Main product brands under this segment are VorTeq and MTeq.Notably, the company entered a 15-year licensing agreement related to VorTeq with Schlumberger Technology Corporation in October 2015.Debt Profile:Energy Recovery’s non-current liabilities totaled $35.8 million at the end of the first quarter of 2019. This balance reflects a decline of 9% from the previous quarter. The company’s debt profile is better than the industry. Its long-term debt/capital of 9.3% is significantly lower than the industry’s 39.4%.Other Key PicksSome other top-ranked stocks in the Zacks Industrial Products sector are Roper Technologies, Inc. ROP, CECO Environmental Corporation CECE and Tetra Tech, Inc. TTEK. While Roper currently flaunts a Zacks Rank #1, CECO Environmental and Tetra Tech carry a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.In the past 60 days, earnings estimates for all these three stocks have improved for the current year. Further, average earnings surprise for the last four quarters was a positive 8.43% for Roper, 25% for CECO Environmental and 8.22% for Tetra Tech.This Could Be the Fastest Way to Grow Wealth in 2019Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.Click here to see these breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportRoper Technologies, Inc. (ROP) : Free Stock Analysis ReportTetra Tech, Inc. (TTEK) : Free Stock Analysis ReportCECO Environmental Corp. (CECE) : Free Stock Analysis ReportEnergy Recovery, Inc. (ERII) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Global shares mixed ahead of Fed rate decision
TOKYO (AP) — Global markets were mixed Wednesday amid some optimism about U.S.-China trade talks and ahead of an interest rate decision by the U.S. Federal Reserve.
The Fed isn't considered ready to announce its first rate cut in more than a decade, but many expect the central bank to signal an inclination to ease credit sometime within the next several months.
Its meeting comes a day after the head of the European Central Bank said it was ready to cut interest rates and provide additional economic stimulus if necessary.
France's CAC 40 was stable at 5,513, while Germany's DAX was flat at 12,331. Britain's FTSE 100 fell about 0.3% to 7,423, after a report showed that inflation in Britain dipped in May, likely easing the pressure on the Bank of England to raise interest rates this summer.
U.S. shares were set for a mixed open with Dow futures up less than 0.1% at 26,509. S&P 500 futures ticked down less than 0.1% to 2,925.
Two weeks ago, Fed Chair Jerome Powell set off a rally on Wall Street after he signaled that the central bank is willing to cut interest rates to help stabilize the economy if the trade war between Washington and Beijing starts to crimp growth. Any continued escalations could put the brakes on what is poised to be the longest economic expansion in U.S. history.
Investors collectively envision a Fed rate cut by July and possibly further cuts after that. Some even expect a rate cut this week. Many economists, though, think the Fed will wait until September at the earliest to announce its first drop in its benchmark short-term interest rate since 2008 and might not cut again in 2019.
"I think the Fed is going to send the markets a clear signal that they are ready to lower rates in the very near future," said Brian Bethune, an economics lecturer at Tufts University.
Earlier, Asian markets rose after U.S. President Donald Trump said he will hold talks with Chinese President Xi Jinping at an international summit in Japan. U.S. businesses have implored Trump to stop escalating the trade war and refrain from expanding his tariffs to $300 billion on goods from China.
Analysts acknowledged an immediate resolution to the trade conflict isn't expected, but the confirmation that Trump and Xi plan to talk at the G-20 in Osaka was cause for some optimism while warning that risks remain.
"While this certainly is a near-term boost for markets, the question as to what can be resolved by the two leaders' meeting that had not been done so despite months of discussions keeps this as a risk factor," said Jingyi Pan, market strategist at IG in Singapore.
Japan's benchmark Nikkei 225 added 1.7% to finish at 21,333.87. Australia's S&P/ASX 200 rose 1.2% to 6,648.10. South Korea's Kospi was also up 1.2% at 2,124.78. Hong Kong's Hang Seng gained 2.6% to 28,202.14, while the Shanghai Composite added nearly 1.0% to 2,917.80.
ENERGY: Benchmark crude oil edged down 1 cent to $53.89 a barrel. It rose 3.8% to $53.90 a barrel Tuesday. Brent crude oil, the international standard, lost 42 cents to $61.72 a barrel.
CURRENCIES: The dollar inched down to 108.39 yen from 108.48 yen on Tuesday. The euro rose slightly to $1.1207 from $1.1191.
___
Ott reported from Madrid. |
North Macedonia firm plugs vintage minis into electric age
(This June 19 story has been refiled to say "Skopje, the capital of North Macedonia", not "the North Macedonian capital Skopje", in para 1 to conform with provisions of name deal with Greece)
SKOPJE (Reuters) - In Skopje, the capital of North Macedonia, a small light blue car, reminiscent of bygone Communist times, silently zips through the streets in the first major attempt in the Balkan country to produce its own electric vehicle.
It is the brainchild of Skopje-based BB Classic Cars, a local company which restores vintage cars and now converts some of them to electric ones with help from a government innovation fund partly aimed at promoting greener technologies.
North Macedonia, which wants to join the European Union where tighter emissions rules are due to come into force in 2020, is battling major pollution mainly from car emissions and heating coal. It is planning to introduce subsidies for purchases of less polluting or zero emission cars.
BB Classic Cars converted the supermini Zastava 750, an upgraded license-built Fiat 600 popular across the now-defunct Yugoslavia, replacing its petrol engine with an electric one.
Milorad Kitanovski, director of the BB Classic Cars, said that the performance of converted Zastava 750s, originally manufactured in Serbia's city of Kragujevac from the early 1960s until mid-1980s, is the same or better than the original.
"The engine has a far greater potential for a far greater performance and higher speed, but we limited it to 120 kilometers per hour," Kitanovski said.
The converted cars are fitted with electric motors manufactured by Germany’s Kessler which also has a plant in North Macedonia. Kitanovski did not say how much the company invested to make the conversion.
The car has a range of 150 kilometers, while charging time is around three hours with a home charger, and only 15 minutes with rapid chargers.
"The cost of three hours of charging is less than 1 euro ($1.12), for the 10 kilowatts which is the battery capacity,” Kitanovski said.
The price tag is set around 20,000 euros ($22,568.00) and the company is mainly looking at international buyers, he said.
In comparison, Porsche Macedonia offers Volkswagen's e-UP! and e-Golf electric cars for 25,000 euros and 37,000 euros respectively, according to a February report by the country's MIA news agency.
($1 = 0.8862 euros)
(Reporting by Ognen Teofilovski; Writing by Aleksandar Vasovic; Editing by Emelia Sithole-Matarise) |
Litecoin Price Gains Despite Facebook’s Libra Stealing Altcoins’ Thunder
ByCCN Markets: Litecoin (LTC) entered a positive territory on Wednesday while other top cryptocurrencies trended flat as investors became cautious following the introduction of the Facebook token, Libra.
The LTC-to-dollar exchange rate established an intraday high of $139.66, up more than 3 percent since the Asian session open. The upside action neutralized the pair’s losses in the past seven days. At the same time, it brought Litecoin’s month-to-date gains to 26 percent, with a market value of approx $3.94 billion.
Litecoin Price Surging Higher as Other Cryptocurrencies Trend Flat | Source: TradingView.com, Coinbase
The surge in theLitecoin priceclosely followed an announcement by the Litecoin Foundation. The nonprofit organization introduced an LTC debit card, an equivalent of a traditional payment card loaded with Litecoin-spending features. The notification read:
Read the full story on CCN.com. |
What To Know Before Buying Compagnie de Chemins de Fer Départementaux Société Anonyme (EPA:MLCFD) For Its Dividend
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Dividend paying stocks like Compagnie de Chemins de Fer Départementaux Société Anonyme (EPA:MLCFD) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.
Compagnie de Chemins de Fer Départementaux Société Anonyme yields a solid 4.8%, although it has only been paying for three years. A 4.8% yield does look good. Could the short payment history hint at future dividend growth? When buying stocks for their dividends, you should always run through the checks below, to see if the dividend looks sustainable.
Click the interactive chart for our full dividend analysis
Dividends are 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. Compagnie de Chemins de Fer Départementaux Société Anonyme paid out 19% of its profit as dividends, over the trailing twelve month period. We'd say its dividends are thoroughly covered by earnings.
With a strong net cash balance, Compagnie de Chemins de Fer Départementaux Société Anonyme investors may not have much to worry about in the near term from a dividend perspective.
We update our data on Compagnie de Chemins de Fer Départementaux Société Anonyme every 24 hours, so you can always getour latest analysis of its financial health, here.
Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. The dividend has not fluctuated much, but with a relatively short payment history, we can't be sure this is sustainable across a full market cycle. During the past three-year period, the first annual payment was €18.00 in 2016, compared to €36.00 last year. This works out to be a compound annual growth rate (CAGR) of approximately 26% a year over that time.
Compagnie de Chemins de Fer Départementaux Société Anonyme has been growing its dividend quite rapidly, which is exciting. However, the short payment history makes us question whether this performance will persist across a full market cycle.
Examining whether the dividend is affordable and stable is important. However, it's also important to assess if earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. Compagnie de Chemins de Fer Départementaux Société Anonyme has grown its EPS 59% over the past 12 months. We're glad to see EPS up on last year, but we're conscious that growth rates typically slow as companies increase in size. Earnings per share have grown rapidly, and the company is retaining a majority of its earnings. We think this is ideal from an investment perspective, if the company is able to reinvest these earnings effectively. We do note though, one year is too short a time to be drawing strong conclusions about a company's future prospects.
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. Firstly, we like that Compagnie de Chemins de Fer Départementaux Société Anonyme has a low and conservative payout ratio. Next, earnings growth has been good, but unfortunately the company has not been paying dividends as long as we'd like. Overall we think Compagnie de Chemins de Fer Départementaux Société Anonyme is an interesting dividend stock, although it could be better.
Now, if you want to look closer, it would be worth checking out ourfreeresearch on Compagnie de Chemins de Fer Départementaux Société Anonymemanagement tenure, salary, and performance.
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. |
Navistar to Invest $125M for Alabama Operation Expansion
Navistar International CorporationNAV recently announced its plans to invest $125 million in new manufacturing facilities at its Huntsville, AL engine plant over the next three years.Navistar manufactures International brand diesel engines for trucks and buses in the Huntsville plant. The primary engine manufactured in the plant is the International A26, a 12.4-liter big-bore engine used in Class 8 on-highway trucks, as well as some vocational trucks.Notably, this investment will likely create 145 additional jobs in the company's Huntsville facility.The investment aids the company’s plans to manufacture next-generation big-bore powertrains developed with its global alliance partner — Traton — a subsidiary of Volkswagen. Through the Traton subsidiary, Volkswagen owns around 17% of Navistar.Coming to the price performance, over the past three months, shares of Navistar have gained 3.8%, outperforming the industry’s growth of 2.2%.
Early this month, Navistar reported second-quarter fiscal 2019 earnings. The company’s adjusted earnings per share and revenues surpassed the respective Zacks Consensus Estimate. Improved market share, and robust sales of Class 6-8 trucks and buses in the United States and Canada are key driving factors for the company.Strong product backlogs have encouraged Navistar to raise its guidance for fiscal 2019. For the current quarter, the company expects revenues of $11.25-$11.75 billion compared with the previous projection of $10.75-$11.25 billion. Further, adjusted EBITDA is predicted to be $875-$925 million — marking an increase from the $850-$900 million guided earlier.Apart from backlogs, the company has been benefiting from an upgraded product line, rolled out over the past few years. Its range of heavy-to-medium, and vocational trucks and buses with alternative powertrains have aided in improving its market share. Also, product launches are well received by customers, further boosting market share. Moreover, with intense competition among peers, an improving market share will be conducive to Navistar’s top-line growth.
Navistar International Corporation Price and Consensus
Navistar International Corporation price-consensus-chart | Navistar International Corporation Quote
Zacks Rank & Stocks to ConsiderNavistar currently carries a Zacks Rank #3 (Hold).A few better-ranked stocks in the broader auto sector are Bridgestone Corporation BRDCY, Cummins Inc. CMI and Oshkosh Corporation OSK, each currently carrying a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Bridgestone has an expected long-term growth rate of 4.1%. The stock has gained 1.4% in the past three months.Cummins has an anticipated long-term growth rate of 8.02%. Shares of the company have rallied 6.5% over the past three months.Oshkosh has a projected long-term growth rate of 11.6%. Over the past three months, shares of the company have appreciated 9.8%.This Could Be the Fastest Way to Grow Wealth in 2019Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated+98%,+119%and+164%gains in as little as 1 month.Click here to see these breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportNavistar International Corporation (NAV) : Free Stock Analysis ReportOshkosh Corporation (OSK) : Free Stock Analysis ReportCummins Inc. (CMI) : Free Stock Analysis ReportBridgestone Corp. (BRDCY) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Fifth Third (FITB) Announces 9% Dividend Hike: Worth a Look?
Fifth Third BancorpFITB has raised its quarterly common stock dividend by about 9% to 24 cents per share. The dividend will be paid on Jul 15, to shareholders of record as of Jun 28, 2019.Fifth Third’s robust business model reflects the company’s commitment toward returning value to shareholders with its strong cash-generation capabilities. Prior to this revision, the company had raised its quarterly dividend to 22 cents per share in December 2018, marking a 22% hike.In 2018, Fifth Third submitted a capital plan to the Federal Reserve Board, seeking approval for dividend hike and common stock repurchases. This move followed the Fed’s approval of dividend hike and stock buyback after the completion of stress tests to assess banks’ financial position.Considering last day’s closing price of $27.88 per share, the dividend yield is currently valued at 3.44%. Additionally, the company has approved a new share-repurchase program of 100 million shares, replacing the existing authorization of 2018 which had around 22 million shares remaining.Investors interested in this Zacks Rank #3 (Hold) stock can have a look at the bank’s fundamentals and growth prospects. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Revenue Growth:Fifth Third continues to make steady progress toward bolstering its revenues. The company has expanded its non-interest income base, which now represents more than 34% of total revenues, and expects fee income to be up in the near term. Also, it is focused on strategic investments through North Star initiatives, which will likely result in revenue growth, expense savings and operational excellence.The company’s projected sales growth (F1/F0) of 10.73% indicates constant upward momentum in revenues.Earnings Per Share Strength:This banking giant has witnessed earnings growth of 9.2% in the last three-five years. Additionally, the company’s long-term (three-five years) estimated EPS growth rate of 7.17% promises rewards for investors over the long run. Good news is that the company pulled off an average positive earnings surprise of 5.47% over the trailing four quarters.Stock Looks Undervalued:Fifth Third seems undervalued as compared with the industry. Its price-to-book and price-to-earnings ratios are below the respective industry averages.Share Price Movement:Fifth Third’s shares have gained around 18.5%, year to date, compared with 10.5% growth recorded by the industry.
Some other finance stocks which raised their dividends during the current quarter include Lazard Ltd. LAZ, Main Street Capital Corporation MAIN and First Midwest Bancorp FMBI. Lazard raised its quarterly dividend by 7%, while First Midwest Bancorp increased by 17%. Also, Main Street Capital has announced a 2.5% rise in its common stock dividend.This Could Be the Fastest Way to Grow Wealth in 2019Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.Click here to see these breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportFifth Third Bancorp (FITB) : Free Stock Analysis ReportFirst Midwest Bancorp, Inc. (FMBI) : Free Stock Analysis ReportLazard Ltd (LAZ) : Free Stock Analysis ReportMain Street Capital Corporation (MAIN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Some Lydian International (TSE:LYD) Shareholders Have Taken A Painful 87% Share Price Drop
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It is a pleasure to report that theLydian International Limited(TSE:LYD) is up 58% in the last quarter. But spare a thought for the long term holders, who have held the stock as it bled value over the last five years. Indeed, the share price is down a whopping 87% in that time. The recent bounce might mean the long decline is over, but we are not confident. The fundamental business performance will ultimately determine if the turnaround can be sustained.
We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don't have to lose the lesson.
See our latest analysis for Lydian International
Lydian International didn't have any revenue in the last year, so it's fair to say it doesn't yet have a proven product (or at least not one people are paying for). This state of affairs suggests that venture capitalists won't provide funds on attractive terms. So it seems shareholders are too busy dreaming about the progress to come than dwelling on the current (lack of) revenue. It seems likely some shareholders believe that Lydian International will find or develop a valuable new mine before too long.
As a general rule, if a company doesn't have much revenue, and it loses money, then it is a high risk investment. There is almost always a chance they will need to raise more capital, and their progress - and share price - will dictate how dilutive that is to current holders. While some such companies go on to make revenue, profits, and generate value, others get hyped up by hopeful naifs before eventually going bankrupt. Lydian International has already given some investors a taste of the bitter losses that high risk investing can cause.
Lydian International had liabilities exceeding cash by US$359,555,000 when it last reported in March 2019, according to our data. That makes it extremely high risk, in our view. But with the share price diving 34% per year, over 5 years, it's probably fair to say that some shareholders no longer believe the company will succeed. You can see in the image below, how Lydian International's cash levels have changed over time (click to see the values).
Of course, the truth is that it is hard to value companies without much revenue or profit. What if insiders are ditching the stock hand over fist? It would bother me, that's for sure. It costs nothing but a moment of your time tosee if we are picking up on any insider selling.
Lydian International shareholders are down 57% for the year, but the market itself is up 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 34% 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. You could get a better understanding of Lydian International's growth by checking outthis more detailed historical graphof earnings, revenue and cash flow.
If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on 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 You Should Consider Buying AZZ Stock Right Now
AZZ Inc.AZZ currently seems to be a smart choice for investors seeking exposure in the manufacturing electronics space. Solid fundamentals and positive revision in earnings estimates are reflective of healthy growth potential of the stock.This Fort Worth, TX-based company currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. It belongs to the Zacks Manufacturing - Electronics industry, which belongs to the broader Zacks Industrial Products sector.We believe that technological advancement in manufacturing processes, favorable changes in tax policies and growth in e-commerce business have been benefiting the industry.Below we discussed why investing in AZZ will be a smart choice.Share Price Performance, Impressive Earnings Outlook:Market sentiments seem to be working in favor of AZZ over time. Year to date, the company’s share price has gained 8.1% compared with the industry’s growth of 4.6%.
It is worth mentioning here that AZZ reported earnings of $1.96 in fiscal 2019 (ended Feb 28, 2019), above $1.73 recorded in fiscal 2018.For fiscal 2020 (ending February 2020), the company anticipates gaining from healthy segmental growth opportunities, acquired assets and its digital galvanizing systems (DGS) initiatives. Earnings in the fiscal year are predicted to be $2.25-$2.75, above $1.96 earned in fiscal 2019.In the past 30 days, earnings estimates for the company in fiscal 2020 and fiscal 2021 (ending February 2021) have been revised upward, reflecting positive sentiments about its growth prospects. Currently, the Zacks Consensus Estimate for earnings is pegged at $2.59 for fiscal 2020 and $3.14 for fiscal 2021, suggesting growth of 2.8% and 2.3% from the respective 30-day-ago figures.AZZ Inc. Price and Consensus
AZZ Inc. price-consensus-chart | AZZ Inc. QuoteTop-Line Strength:AZZ reports results under two segmental heads — Energy and Metal Coatings. In fiscal 2019, the company’s revenues increased 14.4% year over year while its bookings improved 32.4%. Backlog stood solid at $332.9 million at the end of fiscal 2019, reflecting 25.4% growth over the previous year.For fiscal 2020, the company anticipates that refinery turnaround in North America will benefit its Energy segment. Metal Coatings are likely to gain from AZZ’s sales and marketing initiatives. Annual sales in the year are predicted to be $950-$1,030 million, up from $927 million recorded in fiscal 2019.Shareholder-Friendly Policies, Buyouts:The company remains committed to rewarding shareholders handsomely through dividend payments and share buybacks. In fiscal 2019, it refrained from purchasing treasury stocks while paying dividends totaling $17.7 million.It is worth mentioning here that the company announced to have received authorization to buy back $20 million worth shares in November 2018.Beside using its capital for rewarding shareholders, AZZ believes in making acquisitions to fortify its product portfolio and enhance growth opportunities. During fiscal 2019, the company successfully integrated assets — including Rogers Brothers Company, Powergrid Solutions, Inc. and Enhanced Powder Coating Ltd. — acquired in fiscal 2018 (ended February 2018). Moreover, the company acquired Lectrus Corporation in March 2018 (reported under the Energy segment).In April 2019, AZZ acquired Tennessee Galvanizing Inc. and K2 Partners Inc. These assets were added to the company’s Metal Coatings business.Debt Profile:AZZ’s long-term debt was approximately $240.7 million at the end of fiscal 2019, reflecting a decline of 16% from the previous year. The company’s debt profile is better than the industry. Its long-term debt/capital of 6.4% is significantly lower than the industry’s 27.5%.Other Key PicksSome other top-ranked stocks in the Zacks Industrial Products sector are Chart Industries, Inc. GTLS, DXP Enterprises, Inc. DXPE and RBC Bearings Incorporated RBC. While Chart Industries currently sports a Zacks Rank #1 (Strong Buy), DXP Enterprises and RBC Bearings carry a Zacks Rank #2. You can seethe complete list of today’s Zacks #1 Rank stocks here.In the past 30 days, earnings estimates for all these three stocks have improved for the current year. Further, average earnings surprise for the last four quarters was positive 16.56% for Chart Industries, 48.47% for DXP Enterprises and 8.36% for RBC Bearings.This Could Be the Fastest Way to Grow Wealth in 2019Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.Click here to see these breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAZZ Inc. (AZZ) : Free Stock Analysis ReportDXP Enterprises, Inc. (DXPE) : Free Stock Analysis ReportRegal Beloit Corporation (RBC) : Free Stock Analysis ReportChart Industries, Inc. (GTLS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
CVS Stock Has More Going for It Than Just a 3.69% Dividend Yield
CVS Health(NYSE:CVS) faces two distinct headwinds that are putting pressure on CVS stock.
First, markets are cautious over the drug store and drug manufacturing market as the government pressure all players to lower drug prices.
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Doubts overCVS’ acquisition of Aetnaare adding more distractions for management in the near-term. With CVS stock testing the $51.72 yearly low on at least five occasions since March, what will it take for the stock to rebound?
CVS reported first-quarter earnings of $1.62 and alsoraisedits full-year adjusted EPS guidance to $6.75 to $6.90. This is up from the previous guidance of $6.68 to $6.88 a share.
The Q1 beat and improved outlook are due largely to the inclusion of managed care operations. The company also included revenue from SilverScript Medicare Part D, which contributed $17.9 billion of revenue for the quarter.
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Better synergies with Aetna also contributed favorably to the higher outlook. CVS expects it will exceed its target savings of $750 million in 2020. It found synergies stemming from the elimination of duplication in corporate and operational functions, medical cost savings such as formulary alignment, and purchasing efficiencies. By 2022, CVS forecast saving $1.5 billion to $2 billion, well above its deal synergy targets.
CVS forecast cash flow of between $9.8 billion and $10.3 billion and will use $4.2 billion to $4.6 billion to pay down its debt. Its debt/equity of 1.25 times is above that ofCigna Corporation(NYSE:CI) at 0.95, andUnitedHealth(NYSE:UNH) at 0.74, both of which are attractive investments.
Despite the less favorable debt/equity, CVS Health pays adividend yielding 3.69%.Walgreens Boots Alliance(NASDAQ:WBA) also has a lower debt/equity of 0.73 but its dividend is slightly lower too, at 3.35%.
Investors who think that CVS has deep value with a forward P/E of 7.6 times are betting the company will mitigate near-term headwinds hurting the business. In Q1, prescription growth of 5.5% benefited from the support of clinical care programs and network relationships.
The company will improve margins in its long-term care business. And with PBM, the idea of a net cost pricing model is resonating with clients. Some clients will adapt to this offering while CVS expects its uptake improving in 2020 and beyond.
CVS is testing new approaches in delivering and managing health care. Its Houston HealthHub stores bring health care services into communities. Meeting people where they are should drum up more business.
Still, CVS will primarily use data and analytics to deliver such services at the best cost. Plus, it has a long-term vision of seamlessly connecting consumer experiences across digital and clinical interactions.
Initial results from the Houston stores are encouraging. The locations are performing better than expected, giving the company the green light to expand the HealthHUB model.
Although CVS Health’s market share stood at 26.2% in the first quarter, front store comparable sales rose just 0.4%. Adjusted operating income from Retail/Long-term care dropped 18.9%. Reimbursement pressure, higher legal costs, and higher expenses weighed on Q1 results.
Should costs grow higher than expected in the course of this year, CVS may lower its guidance. Fortunately, synergies from the Aetna acquisition are tracking higher than the company expected. HealthHUB is resonating well with customers. This is encouraging the company to add more net new items in the front-store of the self-care and wellness areas. Along with expanding MinuteClinic services, CVS will continue expanding the interactions between pharmacists and patients who need it most.
The 14 analysts offering aprice target on CVS stockhave an average price of $70.18, which is ~30% above the recent closing price of $54.17. Conversely, investors could assume a perpetuity growth rate of between 5% and 6% in the5Y DCF Growth Exit model. In this scenario, the fair value of CVS stock is $63 a share, implying an upside of 16% for investors (perfinbox.io).
The CVS and Aetna deal is getting challenged. Investors could bet that the court lets the deal close. More importantly, CVS is already reaping the benefits of the combination by cutting costs. By delivering better services to the customers it services, the company will keep growing.
Disclosure: As of this writing, the author did not hold a position in any of the aforementioned securities.
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Do Not Hope for a Dramatic Comeback in Nio Stock
Nio(NYSE:NIO) continues to fall further into penny-stock status. Once compared to American automakerTesla(NASDAQ:TSLA) as the “Tesla of China,” Nio stock now struggles to survive.
Source: Shutterstock
A deal NIO has made with a government-owned organization may keep it from going to zero. However, investors should not buy at these low levels hoping it will become the next Chinese Tesla orFord(NYSE:F).
With a Nio stock price now just hovering above $2.50 per share, shares are cheap. However, there’s a reason for this extreme discount. I do not say that because I made a mistake in referring to NIO as a “possible trade” about one month ago. It also has little to do with the fact that I constantly remind traders that so-called Chinese stocks are actually Cayman Islands-based holding companies who represent Chinese firms.
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For me, it comes down to numbers. Sales of its electric vehicles (EVs) fell by about 54.6% between the fourth quarter of last year and Q1. Also, the companysold only 5,113 carsin the first four months of 2019. Sales of 1,124 vehicles in April make up only a small fraction of the 45,197 EVs sold in China.
Unlike Tesla in the U.S., NIO faces heavy competition at home. It lagsBYD Auto(OTCMKTS:BYDDF) in sales. BYD benefits from the interest of Warren Buffett asBerkshire Hathaway(NYSE:BRK.A, NYSE:BRK.B) bought a 25% stake in the company 11 years ago. Yes, Nio stock may have beaten its Chinese peers to the U.S. equity markets. Still, it’s lost nearly 60% of its value from the initial public offering of $6.25 per share back in September.
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Worse, conditions appear unfavorable for the entire EV sector. Tesla has lost over 40% of its value since the early summer of 2017. Moreover, investors should remember that even the largest, best-established players have not prospered.
Recall thatGeneral Motors(NYSE:GM) experienced a bankruptcy 10 years ago. Since the current GM stock launched its IPO in 2010, shares have seen little appreciation.
Admittedly, Nio stock offers just enough hope to investors that someone who wants to see this as a buy will continue to do so. The trade war has hammered the Chinese economy. If negotiators come up with a face-saving way out for China, that could help NIO. Moreover, the company blew away revenue estimates in the last quarter, and losses came in 13 cents per share less than expected. One analyst even predicts that the company will turn profitable in 2021.
It also appears unlikely to fall to zero. As our own Dana Blankenhorn points out, Nio entered into ajoint venture with GAC, the Chinese state car company. Blankenhorn rightly describes this as a “government bailout” as this means China will provide $1.45 billion to bolster the relationship. However, it will take more than a bailout to make Nio stock a profitable investment.
Still, the most misleading appeal may come down to false hopes. Many investors dream of buying a penny stock that stages a dramatic comeback a few years down the line. I do not necessarily discourage such speculation with a small part of one’s portfolio. However, while I expect some stocks will trade well above their current levels, autos probably won’t enjoy such robust speculation.
Those hoping for outsized gains from low-priced equities will likely not profit from Nio stock. Yes, NIO operates in the same sector that has led TSLA to massive gains. However, times have changed in the EV sector and in the auto industry overall. Even Tesla stock has begun to suffer.
Yes, the investment from the Chinese state automaker could avert a bankruptcy. However, survival is not prosperity. For Nio stock to deliver outsized long-term gains, it will not only have to become profitable, but must become China’s market leader in EV. That’s something it has never done.
NIO will also have to bring long-term profits for investors. While it may turn a profit at some point, historical industry facts indicate consistent profitability is a serious challenge.
Those who want to set aside a portion of their portfolio for speculation should do so. However, I would not expect those gains to come from Nio stock or any equity in this industry.
As of this writing, Will Healy is long BRK.B stock. You canfollow Will on Twitterat @HealyWriting.
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Gemma Collins has major meltdown on 'The Crystal Maze': "Stop the game!"
Gemma Collins wasn't happy with her instructions during a virtual reality challenge (Channel 4) Despite being all “gamed out”, Gemma Collins couldn’t resist taking part in a celebrity special of The Crystal Maze , one of her favourite childhood programmes. However, the reality star threatened to walk out on the show after having a trademark meltdown during a challenge in the futuristic zone. Collins was tasked with walking through a virtual reality assault course, with team mates Carol Vordeman, Rick Edwards and Ellie Taylor having to guide her past a number of traps. Read more: Gemma Collins is 'still communicating' with ex-boyfriend Arg during her 'soul searching' break in the US . @missgemcollins on the #CrystalMaze is everything you’d imagine and so much more. @carolvorders @rickedwards1 @elliejanetaylor pic.twitter.com/n5hHULJCVG — Channel 4 (@Channel4) June 18, 2019 She soon lost her temper after Edwards tried to guide her past a moving saw on the ground, but accidentally caused her to step into it. “Tell me where and how big a step forward,” shouted a frustrated Collins. “You’re letting me down! This is not rocket science.” She was then sent back to the beginning, only to get hit by the first obstacle as she attempted to duck below a moving bar. Frustrated, she said: “Tell the producer they’ve got to sort it out. No, hang on, stop the game.” Maze Master Richard Ayoade couldn’t help but mock Collins’ meldown, saying: “It’s amazing, even in grid form you’ve got mugged off.” Rick Edwards, Ellie Taylor, Gemma Collins, Carol Vordeman and Richard Ayoade on The Crystal Maze (Channel 4) Read more: Gemma Collins offers Theresa May her Brexit advice Story continues Collins managed to retrieve the crystal and get out of the room with just seconds to spare, but she was soon lamenting Edwards’ instructional skills. “You was messing up, you can’t say, you know twice on the red, you had to measure that big step going forward because your big step and my big step might be all different,” she said. “I could have done that in one.” Despite her outburst during the challenge, The Only Way is Essex star has since posted about the episode on Instagram, telling her followers she “loved loved loved” the game. View this post on Instagram A post shared by Gemma Collins (@gemmacollins1) on Jun 11, 2019 at 3:59am PDT “This is definitely one to watch. Channel 4, you defo got more than you bargained for! Put this in your diaries it’s going to be EPIC,” she wrote. “Being my childhood favourite show I gave it my all fantastic outcome and defo a few concerns when I said I was going to be team captain, but I came and I CONQUERED to everyone’s surprise. The Channel even called the next day to thank me I actually loved loved loved this game. #tvgold.” |
Maggie Gyllenhaal almost missed her own Architectural Digest house tour because of her Tesla (Exclusive)
Maggie Gyllenhaal and her husband, actor Peter Sarsgaard, almost didn't make it to their own Architectural Digest house tour. The couple's episode of AD's popular home tour series, "Open Door," premiered back in February and, since then, the clip of their "bohemian Brooklyn brownstone" has racked up over 1.8 million views on YouTube. Judging by the comments viewers responded positively to their home, which "actually feels like a home and not just something taken straight from an interior design magazine," as one user wrote. SEE ALSO: Jake Gyllenhaal talks 'significant changes' to upcoming Broadway show For Gyllenhaal, the response to her house tour came as a relief. "That means a lot to me," she said during an exclusive interview with AOL's Gibson Johns at the Josh Cellars Father's Day Pop Up wine shop at Grand Central Station. "I thought it was maybe too goofy, or something." But, unbeknownst to viewers, the tour actually almost didn't happen because of a mishap that the couple had with their electric car -- which actually ended up giving their home more of a "lived in" vibe during the tour, which you can watch at the top of the page. "We had planned to spruce it up a little, but we have a Tesla and we didn’t realize that it has half the battery power in the cold," Gyllenhaal laughed. "It was a freezing cold day, and we were driving down from Vermont, and we got very delayed. We basically ran in, I put on a dress and they were waiting for us to come [home] for hours. We got there, and it was like, 'Go!,' and we did it." For the couple, who share two daughters Ramona, 12, and Gloria Ray, 7, their "Open Door" episode will serve as a memento of their current home before their upcoming move to a new house, Gyllenhaal revealed to AOL. The upcoming move will just be another thing that the 41-year-old will be adding to her plate. When we asked her at the Josh Cellars Pop Up opening what her ideal scenario to relax with a glass of wine with, she lamented that she rarely gets the chance to do so. "I have two little kids and a lot going on," Gyllenhaal explained. "So, it’s very rare for me that I’ll have wine with lunch. It just seems so luxurious and delicious to go, ‘F--k it! I have nothing to do for the whole rest of the day,' because of course the day is over if you have a glass of wine at lunch. Maybe I would choose that, with pasta and somewhere warm and sunny. It could also be cold and snowy near a fire, but definitely a glass of wine with pasta at lunch." |
Factbox: Airbus and Boeing aircraft deals at Paris Airshow
(Reuters) - Following is a summary of commercial aircraft deals announced by Airbus and Boeing at the Paris Airshow. AIRBUS* JetBlue Airways plans to order 13 Airbus A321XLR jetliners as well as 10 more of the smaller A220, industry sources said on Thursday. * Airbus says Saudi Flynas signs MOU for 10 A321XLR, also agrees to upsize 10 A320neo already on order to the A321neo.* Nordic Aviation Capital provisionally orders 20 Airbus A220 family aircraft.* American Airlines orders 50 A321XLRs, including 30 conversions from existing A321neo orders. The remaining 20 orders are estimated to have a value of around $2.8 billion. * Indigo Partners, the private equity firm of veteran low-cost airline investor Bill Franke, agrees to buy 32 A321XLRs worth an estimated $4.5 billion, and convert 18 more A320 family orders to the new aircraft. * Accipiter Holdings purchases 20 A320neos worth $2.2 billion at list prices. The order was completed in March 2019 and had been listed in Airbus's order books as undisclosed. * Taiwan's China Airlines signs preliminary deal to buy 11 A321neos, worth about $1.4 billion at list prices, while leasing another 14. * Air Lease Corp signs letter of intent for 50 A220-300s, 27 A321XLRs and 23 A321neos worth an estimated $11 billion at list prices. * Virgin Atlantic orders 14 A330neos worth $4.1 billion at list prices, and takes out an option for six more. * Lebanon's Middle East Airlines orders four A321XLRs, estimated to be worth more than $500 million at list prices. * Philippines budget airline Cebu Air orders 16 A330neos, 10 A321XLRs and five A320neos, worth about $6 billion in total at list prices. * Saudi Arabian Airlines orders a further A320neo family aircraft worth an estimated $3.3 billion at list prices, and takes out options for as many as 35 more. * Malaysia's AirAsia Group converts 253 A320neo orders to the larger A321neo. Financial terms not disclosed. * IAG orders eight A321XLR for its Iberia brand and six for Aer Lingus, plus 14 options. The orders are worth an estimated $1.8 billion. Story continues * Qantas Airways orders 10 A321XLR worth an estimated $1.3 billion at list prices and will convert 26 planes from a prior order to the new model. BOEING * ASL orders 10 737-800 converted freighters, worth about $1.1 billion at list prices, and agrees purchase rights for 10 more. * Qatar Airways orders five 777F freighters, worth about $1.7 billion at list prices. * Turkmenistan Airlines says intends to order one 777-200LR worth $346.9 million at list prices. * Taiwan's China Airlines provisionally orders up to six 777 freighters, worth about $2.1 billion at list prices. * IAG signs letter of intent for 200 737 planes, comprising a mix of 737-8 and 737-10, worth more than $24 billion at list prices. * Korean Air commits to buying 20 787 Dreamliners worth $6.3 billion at list prices. * Air Lease Corp commits to buying 5 more 787-9, worth about $1.5 billion at list prices. * GECAS exercises purchase rights for 10 737-800 Boeing Converted Freighters worth about $1.1 billion at list prices, and adds 15 more purchase rights. (Compiled by Mark Potter and Keith Weir) |
Have We Reached the Point of #MeToo Malaise?: The Broadsheet
Good morning, Broadsheet readers! Women are missing out on jobs in clean energy, ITV won’t commission comedies from all-male writing teams anymore, and #MeToo reports slow down. Have a lovely Wednesday. EVERYONE’S TALKING • #MeToo malaise? Have we reached the point of #MeToo malaise? New data from crisis consulting firm Temin and Company finds that last month saw 12 high-profile allegations. That’s the lowest monthly total since claims against movie mogul Harvey Weinstein ignited the #MeToo movement in the fall of 2017 and a dramatic drop from a peak of 143 last October. In explaining the trend, Davia Temin, the consultancy’s CEO, cited a few factors: a backlash against the movement, more sophisticated campaigns to counter accusations, and improved corporate resources that are placating the aggrieved. (The firm counts accusations if they’re covered by seven or more news outlets.) “Fewer organizations are reporting such allegations, and if they do, they don’t necessarily identify them as sexual harassment,” Temin said in a release. “Further, fueled by corporate boards’ growing insistence upon action, some accusers are finding less need to go public. More cases are being settled satisfactorily behind closed doors.” Temin’s data also highlighted a few other notable trends 20 months into the movement: 97% of all the accused are male 52 is the average age of the accused Half—or 613 of 1,227—of the accused have lost their jobs Arts and entertainment is the sector with the most accusations: 359, followed by politics and government (252) and business (227) The arts saw its latest claims come under a harsh light on Tuesday when eight women accused filmmaker Max Landis of emotional and sexual abuse via The Daily Beast . (Through a representative, Landis did not respond to the publication’s requests for comment.) The women in that story went public with their accusations, with some of them posting claims on social media prior to The Daily Beast article . That’s a pattern among alleged victims in arts and entertainment that has catapulted the industry—along with politics—to the top of that dubious list, Temin says. “In these fields accusers are still going straight to the public because the internal mechanisms for redress either do not exist, or are woefully inadequate.” Claire Zillman @clairezillman claire.zillman@fortune.com ALSO IN THE HEADLINES • Working clean? Women are leading at the top of clean energy, but the industry’s workforce is still—like traditional energy—mostly male. The result? Women are missing out on a jobs boom. Bloomberg • Inextricably linked. Former U.S. Secretary of Commerce Penny Pritzker argues in Fortune that it’s impossible to find solutions on immigration without fighting climate change. The two are “more inextricably linked than ever,” Pritzker says. Fortune • Day 1 to 100. In her first 100 days as president, Sen. Amy Klobuchar would protect voting rights, fill judicial vacancies, get the United States back in the International Climate Agreement, and “rebuild our relationship with our allies and restore America’s standing in the world.” Those pointed items are part of the 2020 candidate’s list of 100 things she’d do from day one. New York Times • No joke. One way to eliminate the all-male writers’ room? Ban it. British channel ITV said it would no longer commission shows from comedy writing teams with zero women or even one “token woman.” ITV’s head of comedy Saskia Schuster says it’s in part because those all-male rooms can be “aggressive and slightly bullying.” Guardian MOVERS AND SHAKERS: The World Surf League hired Nike’s Pri Shumate as CMO; NBCUniversal’s Cherie Cohen as chief revenue officer; and NFL UK’s Sarah Swanson as SVP, strategic insights and consumer growth. Alibaba CFO Maggie Wu takes over oversight of its strategic acquisitions and investments unit in a management reshuffle. Bloomberg and SEC alum Michelle Bond joins Ripple as head of government relations. IN CASE YOU MISSED IT • Run like the wind. Fortune ‘s Natasha Bach looks at She Should Run, the organization aiming to see 250,000 women run for elected office by 2030. In partnership with companies including MZ Wallace, Birchbox, and Lingua Franca, it’s promoting equal representation and helping women overcome imposter syndrome. Fortune • Deep tech, deep bias. We know all-female founding teams get only 2.2% of venture funding. But the gap is even worse for female founders outside consumer industries where women are the customers. Female-founded startups in industries considered “gender-neutral” get 54% less funding than female-founded businesses that cater to women, according to Crunchbase. Bloomberg • Must-see TV. A Japanese TV show based on a novel by writer Kaeruko Akeno and pitched by producer Kasumi Yao documents a high-stakes situation: a worker attempting to leave work by 6 p.m. Japanese workplaces often require extreme hours, and the show’s female protagonist ties into ongoing conversations about discrimination faced by women in Japan’s workforce. New York Times Today’s Broadsheet was produced by Emma Hinchliffe . Share it with a friend. Looking for previous Broadsheets? Click here. ON MY RADAR How Elin Hilderbrand became the ‘Queen of Beach Reads’ The Cut Going through menopause changed the way I think about gender BuzzFeed The case for redefining infertility The New Yorker QUOTE The first punch I threw was this crazy poignant moment. … I sincerely want all women to feel something like that. Lynn Le, founder of Society Nine, a company named after Title IX that makes boxing gear for women |
Are Legrand SA's (EPA:LR) Interest Costs Too High?
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Legrand SA (EPA:LR), a large-cap worth €17b, comes to mind for investors seeking a strong and reliable stock investment. Doing business globally, large caps tend to have diversified revenue streams and attractive capital returns, making them desirable investments for risk-averse portfolios. However, the key to their continued success lies in its financial health. Today we will look at Legrand’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysisinto LR here.
See our latest analysis for Legrand
LR's debt levels surged from €3.0b to €3.6b over the last 12 months , which accounts for long term debt. With this rise in debt, the current cash and short-term investment levels stands at €1.1b , ready to be used for running the business. Additionally, LR has generated cash from operations of €921m during the same period of time, resulting in an operating cash to total debt ratio of 25%, signalling that LR’s current level of operating cash is high enough to cover debt.
At the current liabilities level of €1.8b, it seems that the business has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.69x. The current ratio is the number you get when you divide current assets by current liabilities. Generally, for Electrical companies, this is a reasonable ratio as there's enough of a cash buffer without holding too much capital in low return investments.
With debt reaching 68% of equity, LR may be thought of as relatively highly levered. This isn’t surprising for large-caps, as equity can often be more expensive to issue than debt, plus interest payments are tax deductible. Since large-caps are seen as safer than their smaller constituents, they tend to enjoy lower cost of capital. We can check to see whether LR is able to meet its debt obligations by looking at the net interest coverage ratio. As a rule of thumb, a company should have earnings before interest and tax (EBIT) of at least three times the size of net interest. In LR's case, the ratio of 17.58x suggests that interest is amply covered. High interest coverage serves as an indication of the safety of a company, which highlights why many large organisations like LR are considered a risk-averse investment.
LR’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. This may mean this is an optimal capital structure for the business, given that it is also meeting its short-term commitment. This is only a rough assessment of financial health, and I'm sure LR has company-specific issues impacting its capital structure decisions. I suggest you continue to research Legrand to get a more holistic view of the large-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for LR’s future growth? Take a look at ourfree research report of analyst consensusfor LR’s outlook.
2. Valuation: What is LR 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 LR 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. |
Beijing mega-airport to use Israeli runway protection system
JERUSALEM (Reuters) - Israel's Xsight Systems said on Wednesday that its hazard detection technology will be installed on runways of a new mega-airport in China scheduled to open later this year. Xsight's artificial intelligence-based system improves runway safety and capacity by monitoring and detecting any forms of debris or hazards and can prevent incidents like bird strikes or airplanes veering off the runway, the company said. Financial details were not disclosed. The technology will be installed on the north and east runways of Beijing Daxing International Airport, which is due to open in September and will accommodate 72 million passengers a year by 2025, making it one of the world’s busiest airports upon completion. The system is already in use in airports in the United States, Israel and Thailand, and was selected earlier this year for installment at a different Beijing airport. (Reporting by Ari Rabinovitch) |
United Airlines Inks Codeshare Deal With India's Vistara
United Continental Holdings, Inc.’s UAL subsidiary United Airlines has entered into a codeshare agreement with Vistara, a New Delhi, India-based airline. The deal, set to be effective this fall, will expand the carrier’s international network to cover more than 20 destinations across India.United Airlines began operations to India in 2005 with year-round daily nonstop flights connecting New York/Newark with Mumbai and New Delhi. On Dec 5, the carrier will launch a seasonal service between San Francisco and New Delhi. By offering business and leisure travelers better connectivity to India, this nonstop service from the carrier’s key West Coast hub should attract substantial traffic.Per the agreement, connecting flight options will be available for United Airlines’ passengers travelling from the United States. Further, United MileagePlus members will be able to earn and redeem frequent flyer miles on all Vistara routes. Passengers will also enjoy a coordinated customer service between United Airlines and Vistara. Moreover, travelers will have the privilege of single-ticket booking and checked baggage to their final destination. With government approval, United Airlines will market its UA code on more than 20 Vistara flights.
United Continental Holdings, Inc. Price
United Continental Holdings, Inc. price | United Continental Holdings, Inc. Quote
Zacks Rank & Key PicksUnited Continental carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are Air China Ltd. AIRYY, SkyWest, Inc. SKYW and GATX Corporation GATX. While Air China sports a Zacks Rank #1 (Strong Buy), SkyWest and GATX carry a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.Shares of Air China and SkyWest have gained more than 9% and 35%, respectively, so far this year. Meanwhile, GATX boasts an impressive earnings record, having outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16%.This Could Be the Fastest Way to Grow Wealth in 2019Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.Click here to see these breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportUnited Continental Holdings, Inc. (UAL) : Free Stock Analysis ReportSkyWest, Inc. (SKYW) : Free Stock Analysis ReportAir China Ltd. (AIRYY) : Free Stock Analysis ReportGATX Corporation (GATX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
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