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The Daily Biotech Pulse: Positive Readouts From Adamas And Ironwood, Sesen Bio To Offer Shares, Stoke Therapeutics Debut
Here's a roundup of top developments in the biotech space over the last 24 hours.
Scaling The Peaks
(Biotech stocks Hitting 52-week highs on June 18)
• Abbott Laboratories(NYSE:ABT)
• Arrowhead Pharmaceuticals Inc(NASDAQ:ARWR)
• Bicycle Therapeutics PLC(NASDAQ:BCYC)
• Cardiovascular Systems Inc(NASDAQ:CSII)
• Cortexyme Inc(NASDAQ:CRTX)
• EXACT Sciences Corporation(NASDAQ:EXAS)
• GALAPAGOS NV/S ADR(NASDAQ:GLPG)
• Iovance Biotherapeutics Inc(NASDAQ:IOVA)
• Merck & Co., Inc.(NYSE:MRK) (Keytrudareceived one more approval, this time for metastatic small cell lung cancer in patients who have been treated previously)
• Novocure Ltd(NASDAQ:NVCR)
• Repligen Corporation(NASDAQ:RGEN)
• SAGE Therapeutics Inc(NASDAQ:SAGE)
• ZIOPHARM Oncology Inc.(NASDAQ:ZIOP)
• Zynex Inc.(NASDAQ:ZYXI)
• Zoetis Inc (NYSE:ZTS)
Down In The Dumps
(Biotech stocks hitting 52-week lows on June 18)
• Abeona Therapeutics Inc(NASDAQ:ABEO)
• BioNano Genomics Inc(NASDAQ:BNGO)
• HTG Molecular Diagnostics Inc(NASDAQ:HTGM)
• Kezar Life Sciences Inc(NASDAQ:KZ)
• Mediwound Ltd(NASDAQ:MDWD)
• MEREO BIOPHARMA/ADR(NASDAQ:MREO)
• Trinity Biotech plc(NASDAQ:TRIB)
Stocks In Focus Adamas Parkinson's Drug Reduces Frequency And Duration of Daily Episodes of Dyskinesia and OFF
Adamas Pharmaceuticals Inc(NASDAQ:ADMS) announced retrospective data analysis from pooled Phase 3 study of itsGocovriextended release capsules, which showed that the drug reduced both the number and duration of troublesome dyskinesia and OFF episodes relative to placebo such that patients experienced approximately half as many transitions between troublesome dyskinesia and OFF at endpoint vs baseline.
Gocovri is approved by the FDA for treating dyskinesia in patients with Parkinson's disease receiving levodopa-based therapy, with or without concomitant dopaminergic medications.
The stock rose 4.63% to $5.20 in after-hours trading.
Obseva Says Nolasiban Progressing Toward Phase 3 Trial
Following its recent end-of-the Phase 2 meeting with the FDA,Obseva SA(NASDAQ:OBSV) said the regulatory body provided clarification on a number of key development issues for its oral oxytocin receptor antagonist nolasiban. The company said it anticipates beginning its U.S. Phase 3 clinical trial in the fourth quarter of 2019 or early 2020.
Based on the meeting, ObsEva said it anticipates working with FDA regarding certain issues, including timing of randomization and number of previous IVF failures, and expects to submit the IMPLANT 3 trial protocol with an updated IND in the third quarter of 2019.
Ironwood-Allergan's Irritable Bowel Syndrome Drug Aces Late-Stage Trial
Ironwood Pharmaceuticals, Inc.(NASDAQ:IRWD) andAllergan plc(NYSE:AGN) announced positive topline results from a Phase 3b study evaluating Linzess 290 mcg on multiple abdominal symptoms in adult patients with irritable bowel syndrome with constipation, or IBS-C.
"The trial met its primary multi-component endpoint and demonstrated that linaclotide improved the overall abdominal symptoms of bloating, pain and discomfort in adult IBS-C patients compared to placebo," the companies said.
The study also met the secondary endpoints.
Ironwood shares climbed 4.26% to $11.99 in after-hours trading.
See Also:Stoke Therapeutics IPO: What You Need To Know
Offerings
Sesen Bio Inc(NASDAQ:SESN) intends to offer, subject to market conditions, shares of its common stock, and warrants to purchase common stock in an underwritten public offering. All the shares and warrants are to be sold by the company.
The company intends to use the net proceeds for regulatory submission of Vicinium for the treatment of high-risk non-muscle invasive bladder cancer, among other things.
The stock declined 20.11% to $1.47 in after-hours trading.
Genocea Biosciences Inc(NASDAQ:GNCA) commenced an underwritten public offering of 10 million shares of its common stock. All the shares are to be sold by the company.
The stock moved down 4.88% to $4.87 in after-hours trading.
Kura Oncology Inc(NASDAQ:KURA) priced its underwritten public offering of 5.9 million shares at $17 per share. The offering is expected to close June 21.
The stock fell 7.03% to $17.45 in after-hours trading.
Calithera Biosciences Inc(NASDAQ:CALA) priced its previously-announced underwritten public offering of 12.50 million shares at $4 per share to generate gross proceeds of $50 million. The offering is expected to close June 21.
The stock receded 5.27% to $4.49 in after-hours trading.
Biohaven Pharmaceutical Holding Co Ltd(NYSE:BHVN) commenced an underwritten public offering of $300 million of its common shares, with all the shares to be sold by the company.
On The Radar Clinical Trial Readouts
Affimed NV(NASDAQ:AFMD) will present updated Phase 1b/2a data for AFM13 in CD30-postive lymphoma at the International Conference On Malignant Lymphoma.
Beigene Ltd .(NASDAQ:BGNE) will present Phase 1b data for Zanubrutinib and Obinutuzumab in relapsed/refractory follicular lymphoma at the International Conference On Malignant Lymphoma.
IPO
Stoke Therapeutics, which develops RNA-targeted therapies for rare genetic disorders, priced its upsized initial public offering of 7.89 million shares at $18, above the estimated price range of $14-$16. The shares are to be listed on the Nasdaq under the ticker symbol STOK.
See more from Benzinga
• The Daily Biotech Pulse: PhaseBio Pumped Up, Eiger Exults On Breakthrough Therapy Designation, Biohaven Slips On Stock Sale
• The Week Ahead In Biotech: Conferences, PDUFA Dates Clinical Trial Readouts And IPOs
• The Daily Biotech Pulse: Hematology And Rheumatology Conference Presentations Take The Spotlight, Eton In-Licenses Epilepsy Drug NDA
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
FMC Corp (FMC) Up 12% in 6 Months: What's Driving the Stock?
Shares ofFMC CorporationFMC have gained around 12% over the past six months. The company has also significantly outperformed its industry’s decline of roughly 16% over the same time frame.FMC, a Zacks Rank #3 (Hold) stock, has a market cap of roughly $10.6 billion. Average volume of shares traded in the last three months was around 1,151.2K. The company has an expected long-term earnings per share growth rate of 10.8%.
Let’s take a look into the factors that are driving this chemical company.Driving FactorsForecast-topping earnings performance in the first quarter and upbeat outlook have contributed to the gains in the company’s shares. FMC’s adjusted earnings went up roughly 9% year over year to $1.72 per share in the first quarter. It also topped the Zacks Consensus Estimate of $1.62.Factoring in strong first-quarter performance, FMC bumped up its guidance for 2019. For 2019, the company expects revenues to be between $4.5 billion and $4.6 billion, indicating a rise of 6% at the midpoint versus recast 2018 and $50 million higher than the prior guidance.Adjusted earnings are forecast in the range $5.62-$5.82 per share, an increase of 9% at the midpoint compared with recast 2018 and 7 cents higher than the prior guidance.For second-quarter 2019, revenues are projected in the band $1.185-$1.215 billion, indicating 4% growth at the midpoint compared with recast second-quarter 2018. Adjusted earnings are expected to be in the range $1.60-$1.70 per share, indicating 10% growth at the midpoint compared with recast second-quarter 2018 figure.FMC is seeing strong demand for its industry leading products, which is driving its revenues. In Latin America, the company is witnessing strong demand from cotton growers in Brazil as well as solid demand for insecticides in soybean applications.Strong demand for pre-emergent herbicides and insecticides is also driving the company’s agriculture business in North America. The company expects an increase in corn and wheat acreage to drive growth in North America in 2019.FMC also remains committed to expand its market position and strengthen its portfolio. The company remains focused on investing in technologies and products and launching new products with a goal to enhance value to the farmers. New product introductions are expected to support its results this year. The company expects new products to account for around $60-$70 million in incremental sales growth in 2019.
FMC Corporation Price and Consensus
FMC Corporation price-consensus-chart | FMC Corporation Quote
Stocks to ConsiderA few better-ranked stocks worth considering in the basic materials space include Materion Corporation MTRN, Flexible Solutions International Inc FSI and AngloGold Ashanti Limited AU.Materion has an expected earnings growth rate of 27.3% for the current year and carries a Zacks Rank #1 (Strong Buy). The company’s shares have gained around 23% over the past year. You can seethe complete list of today’s Zacks #1 Rank stocks here.Flexible Solutions has an expected earnings growth rate of 342.9% for the current year and carries a Zacks Rank #1. Its shares have surged around 157% in the past year.AngloGold Ashanti has an expected earnings growth rate of 90.6% for the current year and carries a Zacks Rank #1. Its shares have shot up roughly 90% in the past year.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 reportFMC Corporation (FMC) : Free Stock Analysis ReportFlexible Solutions International Inc. (FSI) : Free Stock Analysis ReportAngloGold Ashanti Limited (AU) : Free Stock Analysis ReportMaterion Corporation (MTRN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
U.S. Steel (X) Sees Lower Q2 Earnings, To Idle Blast Furnaces
United States Steel CorporationX has issued its guidance for the second quarter of 2019. The steel maker expects adjusted earnings per share to be roughly 40 cents for the quarter.The projected earnings reflect a decrease from 47 cents per share recorded in the previous quarter and $1.46 per share the company earned a year ago.The company’s guidance also fell short of expectations. Analysts polled by Zacks currently expect earnings of 48 cents per share for the second quarter.U.S. Steel envisions adjusted EBITDA for the second quarter to be roughly $250 million. The projected figure excludes roughly $15 million of estimated impacts from the fire at the company’s Clairton coke making facility in December 2018.The company said that its Flat-Rolled segment is being hurt by lower steel prices and weakening end market demand. However, it expects adjusted EBITDA for the unit to be higher on a sequential comparison basis in the second quarter. Flooding in the southern United States led to lower-than-expected shipments in the second quarter, U.S. Steel noted.Moreover, the company sees sequentially lower adjusted EBITDA for both its U.S. Steel Europe (USSE) and Tubular segments in the second quarter. Lower selling prices are putting pressure on Tubular margins while market headwinds have increased in Europe. Higher imports and headwinds related to raw material costs and demand continue to hurt the USSE unit.The company is also idling three blast furnaces in response to the softening market conditions. It will idle two blast furnaces in the United States and one in Europe to better align its global production with its order book.Last week, the company started a planned maintenance outage at its Great Lakes B2 blast furnace in the United States. U.S. Steel expects the blast furnace to remain idled following the completion of the outage considering current market conditions.Moreover, the company plans to temporarily idle a south blast furnace at its Gary Works facility. It expects these moves to cut monthly blast furnace production capacity by roughly 200,000 to 225,000 tons starting in July. U.S. Steel expects Flat-Rolled shipments to third party customers to be roughly 11 million tons for the full year if both furnaces remain idled for the balance of 2019. It will resume production at one or both idled blast furnaces when market conditions improve.In Europe, U.S. Steel will idle the #2 blast furnace that has a monthly production capacity of around 125,000 tons. U.S. Steel expects USSE shipments to third party customers to be around 3.6 million tons for the full year if the blast furnace remains idled for the rest of 2019. It will resume production at the blast furnace when market conditions improve.Shares of U.S. Steel have lost 59.2% over a year, underperforming the industry’s 35.8% decline.
U.S. Steel, in May, announced that it will invest more than $1 billion to build a new sustainable endless casting and rolling facility at its Edgar Thomson Plant in Braddock, PA, and a cogeneration facility at its Clairton Plant in Clairton, PA., both part of its Mon Valley Works. U.S. Steel said that this investment will further strengthen its competitive position and generate long-term value for its shareholders, customers and employees.
United States Steel Corporation Price and Consensus
United States Steel Corporation price-consensus-chart | United States Steel Corporation Quote
Zacks Rank & Key PicksU.S. Steel currently carries a Zacks Rank #5 (Strong Sell).A few better-ranked stocks worth considering in the basic materials space include Materion Corporation MTRN, Flexible Solutions International Inc FSI and AngloGold Ashanti Limited AU.Materion has an expected earnings growth rate of 27.3% for the current year and carries a Zacks Rank #1 (Strong Buy). The company’s shares have gained around 23% over the past year. You can seethe complete list of today’s Zacks #1 Rank stocks here.Flexible Solutions has an expected earnings growth rate of 342.9% for the current year and carries a Zacks Rank #1. Its shares have surged around 157% in the past year.AngloGold Ashanti has an expected earnings growth rate of 90.6% for the current year and carries a Zacks Rank #1. Its shares have shot up roughly 90% in the past year.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 reportFlexible Solutions International Inc. (FSI) : Free Stock Analysis ReportAngloGold Ashanti Limited (AU) : Free Stock Analysis ReportMaterion Corporation (MTRN) : Free Stock Analysis ReportUnited States Steel Corporation (X) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
TSX rises 0.05 percent to 16,511.79
(Reuters) - The Toronto Stock Exchange's S&P/TSX rose 8.44 points, or 0.05 percent, to 16,511.79.
Leading the index were Shopify Inc, up 6.8 percent, CannTrust Holdings Inc, up 6.8 percent, and Torex Gold Resources Inc, higher by 3.7 percent.
Lagging shares were Gran Tierra Energy Inc, down 12.8 percent, New Gold Inc, down 4.3 percent, and Hudbay Minerals Inc, lower by 4.0 percent.
On the TSX 115 issues rose and 121 fell as a 1-to-1 ratio favored decliners. There were 13 new highs and 1 new low, with total volume of 189.4 million shares.
The most heavily traded shares by volume were Encana Corp, Bombardier Inc and Barrick Gold Corp.
The TSX's energy group fell 1.26 points, or 0.9 percent, while the financials sector climbed 0.03 points, or 0.0 percent.
West Texas Intermediate crude futures rose 0.87 percent, or $0.47, to $54.37 a barrel. Brent crude rose 0.39 percent, or $0.24, to $62.38 [O/R]
The TSX is up 15.3 percent for the year. |
With 24% Earnings Growth, Did Logitech International S.A. (VTX:LOGN) Outperform The Industry?
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When Logitech International S.A. (VTX:LOGN) released its most recent earnings update (31 March 2019), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Being able to interpret how well Logitech International has done so far requires weighing its performance against a benchmark, rather than looking at a standalone number at a point in time. In this article, I've summarized the key takeaways on how I see LOGN has performed.
See our latest analysis for Logitech International
LOGN's trailing twelve-month earnings (from 31 March 2019) of US$258m has jumped 24% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 17%, indicating the rate at which LOGN is growing has accelerated. What's the driver of this growth? Let's take a look at whether it is merely a result of an industry uplift, or if Logitech International has experienced some company-specific growth.
In terms of returns from investment, Logitech International has invested its equity funds well leading to a 22% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 12% exceeds the CH Tech industry of 6.0%, indicating Logitech International has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Logitech International’s debt level, has increased over the past 3 years from 16% to 21%.
Logitech International's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that have performed well in the past, such as Logitech International gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Logitech International to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for LOGN’s future growth? Take a look at ourfree research report of analyst consensusfor LOGN’s outlook.
2. Financial Health: Are LOGN’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. |
Trump says US helped 'rebuild' China: 'They took us for suckers'
President Trumpkicked off his rally Tuesday night at the Amway Center in Orlando, Fla., announcing he was formally running for re-election in 2020 and touching on a number of subjects including trade deals and the tariffs imposed onChina.
Trump spoke about old trade deals during his rally, saying the U.S. was taking in billions of dollars in tariffs and companies are leaving China as a result of the 25 percent tariffs he has imposed on $250 billion worth of Chinese imports. China retaliated by increasing tariffs on $60 billion worth of American products that went into effect earlier this month.
Additionally, Trump is preparing to target $300 billion in Chinese imports that he hasn’t already hit with tariffs. He has not said when his proposed tariffs would go into effect, but in an interview with CNBC’s “Squawk Box” last week, he said he'll impose them if Chinese President Xi Jinping doesn’t meet with him at the2019 G-20 Osaka summit.
“As you know you may have read a couple of things about China,” Trump told his supporters. “I spoke to President Xi, terrific president, great leader of China. I spoke to him this morning at length and we’ll see what happens. But we’re either going to have a good deal and a fair deal or we’re not going to have a deal at all and that’s OK, too.”
Trump announced earlier Tuesday that he will meet with the Chinese leader at the G-20 summit next week in Japan.
The president told supporters the U.S. helped rebuild China and “they took us for suckers, and that includes (former President Barack) Obama and (former Vice President Joe) Biden.”
Trump said he was fighting for them and would continue to do so.
“I have news for Democrats who want to return us to the bitter failures and betrayals of the past: We are not going back,” he said to a rowdy crowd.
CLICK HERE TO GET THE FOX BUSINESS APP
China and the U.S. have been embattled in a bitter trade war that shows no signs of letting up. Washington also placed Chinese telecom giant Huawei on its “Entity List,” which effectively bars American companies from selling components to Huawei without government approval. Huawei founder and CEO Ren Zhengfei said Monday the telecom giant’s revenue will be$30 billion less than forecastover the next two years, as he compared the company to a “badly damaged plane” as a result of U.S. government actions against it.
Fox Business’ Katherine Lam and The Associated Press contributed to this report.
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Genesee & Wyoming (GWR) Reports 9.9% Decline in May Traffic
Genesee & WyomingGWR reported disappointing traffic figures for May. Traffic in the month was 264,098 carloads, reflecting a 9.9% decrease year over year. The company’s same railroad traffic (excluding carloads from the Continental European intermodal business sold last June) fell 5.8%.Segmental TrafficTraffic at the company’s North American operations declined 8.1% from the year-ago figure due to contraction in traffic across all the segments except agricultural products and autos & auto parts. Traffic at coal & coke, metals and pulp & paper segments was down 20.8%, 16.9% and 9.7%, respectively. Severe weather conditions hampered North American shipments.Australian operations (owned 51.1% by the company) traffic declined9.3% due to slump in traffic at all the segments except petroleum products. Traffic at the agricultural products unit dropped a massive 55%.Total traffic at the U.K./European operations deteriorated 13.2% from the last May-level, thanks to a decrease in traffic across all its segments. Traffic at the coal & coke and agricultural products segments plunged 81.1% and 52.1%, respectively.
Genesee & Wyoming, Inc. Price
Genesee & Wyoming, Inc. price | Genesee & Wyoming, Inc. Quote
Zacks Rank & Key PicksGenesee & Wyoming carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are Norfolk Southern Corporation NSC, Air China Ltd. AIRYY and GATX Corporation GATX. While Air China sports a Zacks Rank #1 (Strong Buy), Norfolk Southern 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 Norfolk Southern have rallied more than 9% and 29% each, so far this year. Meanwhile, GATX flaunts a stellar earnings record, having trumped 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 reportAir China Ltd. (AIRYY) : Free Stock Analysis ReportGATX Corporation (GATX) : Free Stock Analysis ReportNorfolk Southern Corporation (NSC) : Free Stock Analysis ReportGenesee & Wyoming, Inc. (GWR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Does Pool (NASDAQ:POOL) Deserve A Spot On Your Watchlist?
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. Unfortunately, high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. In contrast to all that, I prefer to spend time on companies like Pool ( NASDAQ:POOL ), which has not only revenues, but also profits. Even if the shares are fully valued today, most capitalists would recognize its profits as the demonstration of steady value generation. Loss-making companies are always racing against time to reach financial sustainability, but time is often a friend of the profitable company, especially if it is growing. Check out our latest analysis for Pool How Quickly Is Pool Increasing Earnings Per Share? As one of my mentors once told me, share price follows earnings per share (EPS). That makes EPS growth an attractive quality for any company. As a tree reaches steadily for the sky, Pool's EPS has grown 23% each year, compound, over three years. If the company can sustain that sort of growth, we'd expect shareholders to come away winners. I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats). While we note Pool's EBIT margins were flat over the last year, revenue grew by a solid 6.4% to US$3.0b. That's a real positive. In the chart below, you can see how the company has grown earnings, and revenue, over time. Click on the chart to see the exact numbers. NasdaqGS:POOL Income Statement, June 19th 2019 While we live in the present moment at all times, there's no doubt in my mind that the future matters more than the past. So why not check this interactive chart depicting future EPS estimates, for Pool ? Story continues Are Pool Insiders Aligned With All Shareholders? We would not expect to see insiders owning a large percentage of a US$7.4b company like Pool. But we do take comfort from the fact that they are investors in the company. Indeed, they have a glittering mountain of wealth invested in it, currently valued at US$245m. I would find that kind of skin in the game quite encouraging, if I owned shares, since it would ensure that the leaders of the company would also experience my success, or failure, with the stock. It's good to see that insiders are invested in the company, but are remuneration levels reasonable? A brief analysis of the CEO compensation suggests they are. For companies with market capitalizations between US$4.0b and US$12b, like Pool, the median CEO pay is around US$6.9m. The Pool CEO received total compensation of just US$2.6m in the year to December 2018. That's clearly well below average, so at a glance, that arrangement seems generous to shareholders, and points to a modest remuneration culture. While the level of CEO compensation isn't a huge factor in my view of the company, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. It can also be a sign of good governance, more generally. Does Pool Deserve A Spot On Your Watchlist? For growth investors like me, Pool's raw rate of earnings growth is a beacon in the night. If that's not enough, consider also that the CEO pay is quite reasonable, and insiders are well-invested alongside other shareholders. Each to their own, but I think all this makes Pool look rather interesting indeed. Now, you could try to make up your mind on Pool by focusing on just these factors, or you could also consider how its price-to-earnings ratio compares to other companies in its industry . You can invest in any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here is a list of companies with insider buying in the last three months. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor 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. |
What Kind Of Shareholder Owns Most Persimmon Plc (LON:PSN) Stock?
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A look at the shareholders of Persimmon Plc (LON:PSN) 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. Companies that used to be publicly owned tend to have lower insider ownership.
Persimmon has a market capitalization of UK£6.2b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. Taking a look at our data on the ownership groups (below), it's seems that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about PSN.
See our latest analysis for Persimmon
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.
Persimmon already has institutions on the share registry. Indeed, they own 86% of the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Persimmon's earnings history, below. Of course, the future is what really matters.
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Persimmon is not owned by hedge funds. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own less than 1% of Persimmon Plc. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own UK£19m worth of shares. It is good to see board members owning shares, but it might be worth checkingif those insiders have been buying.
The general public, with a 13% 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.
Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow.
But ultimatelyit is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look atthis free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Stocks approach record as Fed soothes Wall Street's fears
By Noel Randewich
(Reuters) - The S&P 500 approached a record high on Wednesday after the Federal Reserve signaled potential interest cuts later this year, reassuring investors worried that the U.S.-China trade war could stall economic growth.
Saying it "will act as appropriate to sustain" economic expansion, the central bank signaled rate cuts of as much as half a percentage point over the remainder of 2019.
In its statement following a two-day policy meeting, the Fed held rates steady, as expected, but dropped a previous promise to be "patient" in adjusting rates.
That elevated the S&P 500 and Dow Jones Industrial average to less than 1% from their record high closes set in late April.
"We think the Fed delivered. It did no harm. It walked right up to a cut without doing it today. It'll likely be coming in July absent some big trade news or other news," said John Augustine, chief investment officer at Huntington Bank in Columbus, Ohio.
Buoyed by growing confidence the Fed will cut rates, and by hopes of an end to the U.S.-China trade war, U.S. stocks have climbed in recent weeks. The S&P 500 has gained 6% in June.
"At the end of the day what they (the Fed) want to do is give a nod to the market. Expectations had gotten so dovish that they need to give a nod to that, but at the same time not make any commitment and be forced to cut rates later on if conditions perhaps changed," said Kristina Hooper, Chief Global Market Strategist at Invesco in New York.
The financial sector fell 0.2%, with bank stocks dipping 0.2%. Lower interest rates tend to hurt banks' profits.
The Dow Jones Industrial Average rose 0.15% to end at 26,504.27 points, while the S&P 500 gained 0.30% to 2,926.44.
The Nasdaq Composite added 0.42% to 7,987.32.
Contributing more than any other stock to advances on the Nasdaq and S&P 500, Adobe Inc surged 5.2% after the Photoshop software provider beat analysts' estimates for quarterly profit and revenue.
Facebook fell 0.5% as its ambitious plan to launch a digital currency faced a backlash from regulators and politicians in the United States and abroad.
The healthcare sector rose 1%, helped by gains in UnitedHealth Group Inc, Pfizer Inc and Allergan Plc.
Allergan jumped 6.2% after the drugmaker said its constipation drug, jointly developed with Ironwood Pharmaceuticals Inc, improved symptoms in patients suffering from irritable bowel syndrome with constipation.
Advancing issues outnumbered declining ones on the NYSE by a 1.65-to-1 ratio; on Nasdaq, a 1.40-to-1 ratio favored advancers.
The S&P 500 posted 48 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 63 new highs and 59 new lows.
Volume on U.S. exchanges was 6.5 billion shares, compared to the 6.8 billion average for the full session over the last 20 trading days.
(Reporting by Noel Randewich; Additional reporting by Shreyashi Sanyal and Aparajita Saxena in Bengaluru; Editing by Lisa Shumaker, Sonya Hepinstall and Chizu Nomiyama) |
Is Abbott Laboratories a Buy?
In the world of investing, sometimes boring is good. Diversified healthcare companyAbbott Laboratories(NYSE: ABT)has been rewarding its shareholders with solid growth without the ups and downs that pharmaceutical stocks often deliver. Even though the stock is hittingnew highs, is it a buy now?
Abbott Labs split into two companies at the beginning of 2013 when it spun off its research-based pharmaceutical business, which becameAbbVie. The rationale for the division was that AbbVie's business would be high-risk and high-reward with high dividends, while Abbott Labs would be a diversified healthcare business not subject to the risks of bringing new drugs to market. The post-spinoff Abbott is a balanced company with four businesses that are all contributing well to the company's growth.
Image source: Getty Images.
The company's largest segment at 37% of 2018 revenue is medical devices, bolstered by the 2017 acquisition of St. Jude Medical and proving to be the company's strongest source of growth. Abbott Labs' broad portfolio includes pacemakers, implantable heart monitors, mini heart pumps, electrostimulators for the brain and spinal cord, stents, and blood glucose monitors. The segment produced 2018 sales growth of 9.1% on an organic basis -- in other words, excluding the effects of currency, acquisitions, and divestitures.
The diagnostics business delivered 25% of the company's revenue and had 6.7% organic growth. The acquisition of Alere in late 2017 added point-of-care diagnostic instruments, which provide results in minutes, to an existing product forming the core equipment of clinical laboratories.
Providing about 24% of revenue is the company's nutrition business. These are products like Similac infant formula, Ensure nutrition drink, and specialized products to sustain patients with conditions such as diabetes or who are recovering from surgery. Growth in this segment picked up last year thanks to strong sales in Asia and Latin America, with an organic sales increase of 5.2%.
Not all of Abbott's pharmaceutical business went with AbbVie in the split. The established pharmaceuticals business focuses on selling "branded generics" in emerging markets, where the demand for healthcare is expanding as the standard of living increases. This segment was 15% of Abbott's 2018 revenue with a healthy 7% organic growth.
What stands out about Abbott's business segments are the diversification and the balance. No one segment dominates the results, and there's no weak link. All businesses are contributing to growth and profits. Operating margins are consistent between the groups, ranging from 20% in established pharmaceuticals to 32% in medical devices.
Put all those businesses together and you get a company that delivers consistent, although perhaps unspectacular, growth. Inthe most recent quarter, sales grew a muted 2% to $7.54 billion, held back by currency headwinds due to the fact that 63% of sales comes from outside the U.S. Organic sales growth, excluding currency exchange and a discontinued business, was a healthy 7.1%. Adjusted earnings per share, which include the effect of exchange rates, grew 6.8% to $0.63.
Looking forward, Abbott expects organic sales growth in 2019 of between 6.5% and 7.5% and adjusted earnings per share of between $3.15 and $3.25, which equates to 11% profit growth at the midpoint.
Three of Abbott's product lines are boosting the company's growth now. FreeStyle Libre is the company's continuous glucose monitor that uses a small sensor about the size of two stacked quarters that is applied to the back of the upper arm, a big improvement over pricking a finger to draw blood. Worldwide sales last quarter grew over 40% to $380 million with a million and a half users, and the company is expanding its manufacturing capacity to meet demand. There's a second generation of the device being reviewed by the FDA and a third under development. Ultimately, sales of FreeStyle Libre could reach $5 billion annually.
Abbott's Alinity is a family of integrated, high-throughput systems for core laboratory diagnostics for blood chemistry and composition, cancer, drug use, and infectious diseases. The system is selling well in Europe and just rolling out in the U.S., with the full range of capability available by the end of the year. The core laboratory business had 10% sales growth last quarter, but that should expand further as Alinity gets traction, and the product line will have a long runway of growth.
Alinity CI-Series. Image source: Abbott Laboratories.
The structural heart segment had 15% organic growth in Q1, largely because of MitraClip, an implant to repair leaky heart valves. That product is still in the early stages of adoption as well, with Abbott getting approval for new indications and expanding its sales force and clinical specialists to address an unmet need in minimally invasive mitral valve repair.
Abbott has a balance sheet and cash flow that would support growth through acquisitions. But when questioned about merger opportunities in recent quarters, Abbott officials have been clear that they haven't seen any appealing opportunities. Either valuations are too high or candidates don't fit their criteria, so the company has said flatly that acquisitions are not a high priority now. Instead, Abbott is focusing on retiring debt and improving organic growth, a direction that risk-averse investors should appreciate.
Dividend yield isn't a big attraction for the stock, but dividend growth is a plus. Abbott pays a quarterly dividend of $0.32, which works out to an annual yield of 1.5%, not out of line with peers in the medical device industry. But Abbott is also aDividend Aristocrat, having raised its payout for 47 consecutive years. Last year it boosted the dividend by a healthy 14%.
The attraction of Abbott stock for conservative investors is the steadiness and predictability of its business. Medical devices undergo clinical trials and are subject to FDA approvals, so there is always the risk of a failed trial or rejection of an application, but the stakes for each approval are much less than for a drug that's cost billions to develop. Abbott stock isn't likely to make big moves -- in either direction -- based on single events in its pipeline development.
The company is subject to competitive pressure, but that's where the company's balance and diversification are assets. With four consistently profitable segments of comparable size that are all contributing to growth, no one competitor can disrupt its business.
As with other companies in this industry, Abbott's business is mostly unaffected by economic cycles, making the stock attractive as a "defensive" holding.
Probably the biggest risk for Abbott shareholders is not a company-specific event, but that the entire industry gets marked down in a bear market or by worries over political threats to the healthcare industry. Abbott stock is vulnerable due to its relatively high valuation. Abbott sells for 29 times adjusted 2018 earnings and 26 times the midpoint of its guidance for adjusted earnings in 2019. That's quite pricey for a business that's delivering growth in the low double digits, and it's on the high end of the stock's historic range
Still, the market likes predictability and rewards companies that deliver it. The stock is up 16% this year after gaining 29% in 2018.
Abbott Labs offers an attractive combination of predictable growth with lower risk than you'd typically find in the healthcare sector. The main reason an investor might hesitate to jump in is the valuation. The market has recognized the strengths of the business and has been willing to pay up for the shares. But the longer your investment time horizon is, the less relevant today's valuation will be. There arebetter values in healthcare, but for long-term investors, Abbott Labs is still a buy.
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Jim Crumlyowns shares of AbbVie. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy. |
Amazon Just Made a Big Move to Take on Roku and Hulu
Amazon.com(NASDAQ: AMZN)has made no secret about its ambition in the streaming video space. The company is widely recognized as the second-largest streaming service, trailing only toNetflix(NASDAQ: NFLX)and its 149 million paying customers worldwide. While Amazon doesn't share its viewer specifics, it does boast more than 100 million subscribers to Prime, which includes access to its streaming video.
The e-commerce giant turned heads earlier this year when its wholly owned subsidiary IMDb (Internet Movie Database) announced it was expanding beyond short-form original series, celebrity interviews, and trailers todebut IMDb Freedive, an ad-supported streaming service that offered a selection of popular TV shows and hit Hollywood movies without a subscription.
Now Amazon is going further, positioning the platform to better compete with popular streaming options offered byRoku(NASDAQ: ROKU)and Hulu, which is controlled byDisney(NYSE: DIS).
Image source: Amazon.
Amazon announced this week that it is rebranding IMDb Freedive as IMDb TV. With its new name will come a greatly expanded selection of programming. Amazon said it willtriplethe amount of content on its platform in the coming months, adding "thousands of new titles."
In a press release, Amazon gave a hint of things to come, saying it had inked major new deals with Warner Bros., a division ofAT&T,SonyPictures Entertainment, and MGM Studios. IMDb viewers will now be able to watch box office hits like Academy Award-nominatedCaptain Fantasticwith Viggo Mortensen and the Oscar-winningLa La Landwith Emma Stone and Ryan Gosling (marking the first time the film has appeared on an ad-supported streaming service). Amazon also said it will launch IMDb TV in Europe later this year, greatly increasing its addressable market at a time when Roku and Hulu are also both expanding their international operations.
Amazon CEO Jeff Bezos has long stated, "Your margin is my opportunity," and the ad-supported streaming segment will likely be the next growth wave in the industry. Evidence of this can be seen in recent results from Roku and Hulu -- two of the incumbents -- as well as Amazon's increasing attention to the space.
Roku's stock soared last month when the company reported blowout results in what has historically been itsseasonally softest quarter. The streaming pioneer generated revenue of $206.7 million, up 51% year over year. The company had been guiding for $188 million, while analysts' consensus estimates clocked in at $192 million. Roku also produced smaller-than-expected losses, with a loss per share of $0.09, versus a $0.26 loss anticipated by analysts.
Roku was able to achieve these results on the back of impressive subscriber gains. Active accounts grew to 29.1 million, up 40% year over year, while streaming hours increased to 8.9 billion, up 74% compared to the prior-year quarter. Both signs of soaring engagement.
Growth is also climbing at Hulu. The platform, which recently came under Disney's control, now boasts more than26.8 million paid subscribers. While Hulu has an ad-free tier, about 70% of its subscribers opt for the ad-supported plan.
Hulu doesn't report quarterly results, but the company generated revenue of$1.5 billion in 2018, up 45% year over year, and a record for the service.
Results of this magnitude have further piqued Amazon's interest, giving the company additional incentives to expand its existing offerings.
The Hulu original series, Marvel's Runaways. Image source: Hulu.
History shows that ignoring competition from Amazon simply isn't an option. That said, there are a number of reasons Amazon probably won't pose a threat to either Hulu or Roku -- at least not anytime soon.
Hulu is already the third most widely used paid streaming service, behind Amazon Prime and Netflix, but by offering an ad-supported tier and a live-TV option, it offers something for everyone. Even in the face of existing competition, the company has continued its impressive growth.Now that Hulu only serves one corporate master-- Disney -- investors can expect to see a more streamlined strategy, which will likely lead to even stronger growth.
While Roku makes the majority of its revenue from advertising, the company licenses its smart TV operating system (OS) directly to manufacturers, which is helping set the stage for future growth. In the first quarter, 1 in 3 smart TVs sold in the U.S. used Roku's OS. That made it the No. 1-selling smart TV OS in the country. This gives the company a massive captive audience for its advertising.
While the expansion of IMDb TV certainly bears watching, investors should remember this key fact: Netflix has continued to succeed even in the face of competition from Amazon. By focusing on their respective niches, Roku and Hulu will likely enjoy a similar advantage.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.Danny Venaowns shares of Amazon, Netflix, Roku, and Walt Disney and has the following options: long January 2021 $85 calls on Walt Disney. The Motley Fool owns shares of and recommends Amazon, Netflix, and Walt Disney. The Motley Fool recommends Roku. The Motley Fool has adisclosure policy. |
West Kirkland Announces Results of Annual General Meeting and Appointment of New Chairman
Vancouver, British Columbia--(Newsfile Corp. - June 19, 2019) - West Kirkland Mining Inc. (TSXV: WKM) ("West Kirkland" or the "Company") announces that at the Annual General Meeting of Shareholders (the "Meeting") held today, the nominees listed in the Information Circular dated April 29, 2019 were elected to serve as directors of the Company for the ensuing year. Detailed results of the vote for the election of directors held at the Meeting are the following:
[{"Nominee": "For", "Votes": "For", "Percentageof Votes Cast": "Withheld"}, ["R. Michael Jones", "281,639,018", "93.55%", "6.45%"], ["Peter Palmedo", "300,975,618", "99.97%", "0.03%"], ["Pierre Lebel", "300,975,618", "99.97%", "0.03%"], ["Kevin Falcon", "300,975,618", "99.97%", "0.03%"]]
All other motions put forth at the Meeting were approved, including the re-appointment of Deloitte LLP, as auditors of the Company and the ratification of the Company's existing Stock Option Plan.
Following the Meeting, the board appointed Peter Palmedo as Chairman of the Company; and R. Michael Jones (President & CEO), Frank Hallam (CFO & Corporate Secretary) and Sandy McVey (COO) as officers of the Company.
West Kirkland CEO R. Michael Jones commented, "We are very pleased to welcome Peter Palmedo to the board. Peter brings a wealth of experience to the board including his experience investing in precious metals as a strategic asset class for over 25 years." Mr. Palmedo founded Sun Valley Gold LLC ("SVG") in 1992 and serves as SVG's current president. Prior to founding SVG, he worked for Morgan Stanley & Co. where he was a principal of the firm specializing in equity portfolio risk management and derivatives. Mr. Palmedo was also a director of Chesapeake Gold Corp. until 2013.
About West Kirkland Mining Inc.
West Kirkland is focused on advancing the Hasbrouck Gold Project in Tonopah, Nevada where it owns a 75% interest in, and a 1.1% net smelter return royalty.
The Company has secured an option on a district scale land position for future exploration. At this time, the Company will focus its efforts on completing full permitting for its gold reserves.
On behalf of West Kirkland Mining Inc.
"R. Michael Jones"Chief Executive Officer
For further information, please see the Company's website atwww.wkmining.comor contact us by email atinfo@wkmining.com.
Investor Relations:R. Michael Jones(604) 685 8311 /rmj@platinumgroupmetals.net
Disclaimer for Forward-Looking Information
This press release may contain forward-looking information or forward-looking statements (collectively "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: "believe", "expect", "anticipate", "intend", "estimate", "postulate" and similar expressions, or are those, which, by their nature, refer to future events. Although West Kirkland believes that such information as set out in this press release is reasonable, it can give no assurance that the expectations and assumptions will prove to be correct. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors. The reader is referred to the Company's public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through the Company's profile on SEDAR atwww.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45712 |
One Quarter of Workers Are Making This Big 401(k) Mistake
Understanding exactly how your 401(k) works is no easy feat. Enrolling in your account, figuring out where to invest your money, and determining how much you need to save can sound intimidating, and sometimes the easiest solution is to put off saving for another day to avoidgetting lost in all the 401(k) jargon.
Putting off saving won't do your retirement fund any favors. And yet roughly a quarter of workers may be inadvertently putting themselves at risk by not taking advantage of their 401(k), as only about 74% of those with access to a 401(k) actually participate in it, a new report from Vanguard found.
Saving for retirement is hard, but it's even harder when you don't get started. Your 401(k) is one of the most powerful tools in your retirement toolbox, and not taking advantage of it could end up hurting your financial future.
Image source: Getty Images
Simple inconvenience may be part of the reason why peopledon't begin saving for retirement. If you're not sure how to get started saving or don't know how much to save, it may be tempting to avoid the issue altogether by not saving at all. However, most 401(k) plans make it easy to enroll, either by auto-enrolling new employees once they're eligible or allowing workers to sign up online and start contributing to their account. With most plans, you're also allowed to automatically transfer a portion of every paycheck straight to your 401(k) -- making saving money easier when it never reaches your bank account in the first place.
Job hoppers who never stay in one place for more than a year or two may also avoid using their 401(k) because they don't see the use in saving for a couple of years only to end up leaving their job. Younger workers, in particular, are more likely to jump from one job to the next -- around 21% of millennials say they've changed jobs in the past year, according to a Gallup poll, which is three times the number of nonmillennials who say the same. But if you're a job hopper who is putting off saving until you settle into a steady career, you're losing out on years (or even decades) of precious time to grow your savings.
Even if you're currently bouncing from opportunity to opportunity, it's still valuable to save what you can in your 401(k). Then when you leave your job, you can either roll the money over into your new 401(k) (if your new employer allows it) ormove it into an IRA. Even if you have multiple 401(k)s from several previous jobs, you may opt to consolidate them all into one or two accounts to make it easier to keep track of all your money.
Finally,high fees and investment costsmay be a deterrent to some people when it comes to participating in their 401(k). All retirement accounts charge fees, and if you're paying higher fees than average (which is about 1% of total assets under management, according to a study from the Center for American Progress), it may seem like a smart idea to invest your money in an IRA with lower fees rather than a 401(k). In some cases, that may be true. But a full 95% of organizations that offer 401(k)s also offer some type of employer contribution, Vanguard found. So if you could be receiving free money from your employer, it's wise to save enough in your 401(k) to max out any employer contributions before investing the rest of your savings in an IRA.
Getting started contributing money to your 401(k) isn't as difficult as it may seem. Usually, all it takes is visiting your plan's website to enroll and designate how much of each paycheck you want to contribute to your account.
If your employer offersmatching contributions, that's a factor to consider when deciding how much you should save. Always aim to save at least enough to earn the full employer match. So if your employer will match your contributions up to 3% of your salary, be sure to set aside at least that much to earn the full match.
Ideally, though, you should be saving more than just 3% of your paychecks. Exactly how much you should save depends on how much time you have left before retirement, but the average 25-year-old should aim to save around 10% to 17% of their income each year if they want to retire at age 65, according to a study from the Stanford Center on Longevity. For those off to a later start, researchers found you'd need to save 15% to 20% of your salary if you started saving at age 35, and around 25% to 27% by beginning at age 45.
It pays to start saving earlier, because when your money has more time to grow, you don't need to set aside as much every month to reach your goal by the time you retire.
Taking advantage of your 401(k) is one of the easiest ways to save for retirement, but simply getting started is the first hurdle to overcome. Once you get into a steady rhythm of saving, your retirement goals will be all the more achievable.
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Perma-Fix Expands Sales and Business Development Team with Appointment of Three Senior Nuclear Industry Executives
George Taylor appointed Vice President of Waste Services Business Development and Sales
Chris Reno appointed Director of Nuclear Services Business Development
Brian Wood appointed as Director of Commercial and Utility Business Development
ATLANTA, GA / ACCESSWIRE / June 19, 2019 / Perma-Fix Environmental Services, Inc. (the "Company") (PESI)today announced the addition of three senior executives to support the Company's sales and business development initiatives. The Company appointed George Taylor as Vice President of Waste Services Business Development and Sales, Chris Reno as Director of Nuclear Services Business Development, and Brian Wood as Director of Commercial and Utility Business Development.
Mark Duff, Chief Executive Officer, stated, "We are delighted to welcome such experienced and proven industry executives to the senior management team. Each of these individuals brings extensive relationships with government and business leaders, as well as relevant experience in the nuclear and environmental industries, which will be of tremendous value as we continue to grow our Treatment and Services Segments. These appointments come at a key inflection point in the Company's development, as we are focused on accelerating our growth through a variety of ongoing business development initiatives and aggressively bidding on new contracts. We have begun to see the benefit of the improvements we made last year within our business development organization, as illustrated by the recent contracts awarded within the Services Segment and diversification of our revenue streams in the Treatment Segment. We look forward to building upon this success with the addition of these three proven executives."
Mr. Taylor brings 35 years of experience in senior management and business development roles within the nuclear industry. Mr. Taylor previously served as the Vice President of Business Development for Visionary Solutions, LLC (VS) and a director of its joint venture company, Aleut World Solutions, where he was responsible for day to day operations and successfully led the joint venture's return to profitability and expanded operations, including securing a $100M contract with the U.S. Army Core of Engineers for the transport and disposal of low-level radioactive waste nationwide. He has led engineering and procurement projects with multiple U.S Department of Energy (DOE) and National Nuclear Security Administration (NNSA) laboratories, while working to support naval reactors and as DOE Y-12 National Security Complex Liaison with the Department of Commerce's Manufacturing Extension Partnership. Mr. Taylor holds Bachelor degree in Materials Science Engineering from Rice University and an MBA from George Washington University.
Mr. Reno brings over 30 years' experience, including senior management, as well as sales and marketing of professional engineering and nuclear management services. From 1994 to 2017, he held a variety of roles within Atkins (formerly EnergySolutions, Duratek, Scientific Ecology Group and Westinghouse), where he placed over $1 billion of service contracts with every major DOE and NNSA facility in the United States. During his tenure, his primary focus was managing sales of "Tier II" services to the federal government DOE contractors. His responsibilities included review and response to federal solicitations and procurement regulations, managing all aspects of proposal development, strategic planning, initial contacts, understanding client needs, proposal development, closing, contracts management and presentations to senior management. Mr. Reno has a Bachelor in Science degree in Economics from California Polytechnic State University in San Luis Obispo.
Mr. Wood brings more than 15 years of experience in hazardous waste, radioactive waste operations, emergency management, chemical hazards, disaster preparedness, environmental compliance, emergency response, and hazard identification. Mr. Wood previously served as the waste management manager at EnergySolutions, Inc., where he was responsible for leading the planning of radioactive waste management projects in Asia including Fukushima and decommissioning projects in Japan. Previously, Mr. Wood was employed as Senior Manager, Radioactive Waste & Spent Fuel at Tennessee Valley Authority where he developed numerous contracts for disposal, processing and transporting radioactive waste. He is a former Staff Sergeant with the Air National Guard and Senior Airman in the United States Air Force.
About Perma-Fix Environmental Services
Perma-Fix Environmental Services, Inc. is a nuclear services company and leading provider of nuclear and mixed waste management services. The Company's nuclear waste services include management and treatment of radioactive and mixed waste for hospitals, research labs and institutions, federal agencies, including the DOE, the Department of Defense ("DOD"), and the commercial nuclear industry. The Company's nuclear services group provides project management, waste management, environmental restoration, decontamination and decommissioning, new build construction, and radiological protection, safety and industrial hygiene capability to our clients. The Company operates three nuclear waste treatment facilities and provides nuclear services at DOE, DOD, and commercial facilities, nationwide.
Please visit us athttp://www.perma-fix.com.
This press release contains "forward‑looking statements" which are based largely on the Company's expectations and are subject to various business risks and uncertainties, certain of which are beyond the Company's control. Forward-looking statements generally are identifiable by use of the words such as "believe", "expects", "intends", "anticipate", "plan to", "estimates", "projects", and similar expressions. Forward-looking statements include, but are not limited to: accelerating our growth through a variety of ongoing business development initiatives and aggressively bidding on new contracts; diversification of our revenue streams in the Treatment Segment; and building upon this success with the addition of these three proven executives. These forward‑looking statements are intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. While the Company believes the expectations reflected in this news release are reasonable, it can give no assurance such expectations will prove to be correct. There are a variety of factors which could cause future outcomes to differ materially from those described in this release, including, without limitation, future economic conditions; industry conditions; competitive pressures; our ability to apply, commercialize, and market our new technologies; the government or such other party to a contract granted to us fails to abide by or comply with the contract or to deliver waste as anticipated under the contract or terminates existing contracts; that Congress provides continuing funding for the DOD's and DOE's remediation projects; ability to obtain new foreign and domestic remediation contracts; factors arising that causes us to delay implementation of our strategic plan; and the additional factors referred to under "Risk Factors" and "Special Note Regarding Forward-Looking Statements" of our 2018 Form 10-K and Form 10-Q for quarter ended March 31, 2019. The Company makes no commitment to disclose any revisions to forward‑looking statements, or any facts, events or circumstances after the date hereof that bear upon forward‑looking statements.
Please visit us on the World Wide Web athttp://www.perma-fix.com
Contacts:
David K. Waldman-US Investor RelationsCrescendo Communications, LLC(212) 671-1021
Herbert Strauss-European Investor Relationsherbert@eu-ir.com+43 316 296 316
SOURCE:Perma-Fix Environmental Services, Inc.
View source version on accesswire.com:https://www.accesswire.com/549179/Perma-Fix-Expands-Sales-and-Business-Development-Team-with-Appointment-of-Three-Senior-Nuclear-Industry-Executives |
Mexico Broadcasting Giant Invests $5 Million in Esports Company
(Bloomberg) -- Mexican television giant TV Azteca SAB is investing in Allied Esports Entertainment, a company hoping to capitalize on the growing world of competitive video gaming.
Azteca is buying $5 million worth of shares in Black Ridge Acquisition Corp., which will become Allied Esports Entertainment following its pending acquisition of two closely held brands -- a deal that’s expected to close next month. Allied’s goal is to operate esports arenas, distribute content generated at those venues, and sell viewers on a new online tournament platform to be launched next year.
Controlled by Mexican billionaire Ricardo Salinas, Azteca will be both an investor and a strategic partner, pairing its talent and massive audience with Allied’s esports expertise. The two groups will create a 24-hour digital esports channel in Mexico and help promote gaming across the region -- initiatives aimed at an elusive younger demographic.
“In Latin America, traditional TV is a really big part of the distribution of content,” said Frank Ng, who will serve as chief executive officer of Allied Esports Entertainment. “It’s a really important format, and TV Azteca is extremely strong on that, particularly in sports.”
Gaming Growth
Competitive video gaming has an audience of more than 380 million people worldwide, and it’s on pace to become a $1 billion industry this year, according to research firm Newzoo. While a lot of that interest and money is focused on Asia and the U.S., Mexico is in the top 10 worldwide in esports enthusiasts, Newzoo estimates. The country has 58.6 million gamers, a larger number than the entire population of South Korea, and an esports audience of 11.2 million.
That global growth has spurred demand to televise esports. In America alone, TV networks from ESPN to TBS to the CW have broadcast esports content -- either live games or produced segments. Azteca’s flagship network carries Mexico’s top soccer league and National Football League games, giving it a number of potential opportunities to cross-promote the esports matches with traditional sports fans.
Allied and Azteca teamed up earlier this year on an event called “Nation vs. Nation,” which featured American gamers taking on Mexican gamers in a title called PlayerUnknown’s Battlegrounds. The Azteca broadcast reached more than 2 million people.
Sharing Revenue
The two sides will share revenue generated by their joint endeavors, Ng said. He added that Allied intends to partner with more strategic investors once the acquisition is finalized.
Salinas isn’t the only Mexican billionaire who’s shown interest in the esports world. German Larrea, who controls mining company Grupo Mexico SAB, has recently opened 13 arenas called “The Place to Play” and plans to add 10 more before the end of year. The arenas were inspired by similar venues in Las Vegas. In Mexico, these are located right next to one of Larrea’s other businesses, movie theaters.
Black Ridge is a special-purpose acquisition company, an entity with no assets that raises money to fund a future purchase. Sponsored by Black Ridge Oil & Gas Inc., it completed its initial public offering in October 2017, raising $138 million.
In December, Black Ridge announced it was purchasing Allied Esports International Inc., an esports entertainment company, and WPT Enterprises, the creator of the World Poker Tour, from Ourgame International Holdings Ltd. for about $150 million. The new company, called Allied Esports Entertainment, will have an enterprise value of about $214 million and trade on the Nasdaq under the ticker AESE.
The deal originated as a discussion about poker assets before expanding into a larger esports deal. As part of the investment, Azteca will receive access to World Poker Tour’s video library to air previous seasons in Mexico, and the two will team up on poker events.
--With assistance from Andrea Navarro.
To contact the reporter on this story: Eben Novy-Williams in New York at enovywilliam@bloomberg.net
To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, John J. Edwards III
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
Why Shake Shack Should Keep Chick'n Bites
Eventually, every burger chain has to face reality.Americans love their red meat, but options are welcome. A decades-long movement thatMcDonald's(NYSE: MCD)started when it needed to diversify its menu in the early 1980s keeps on rolling today. Urged to reduce their consumption of high-fat hamburgers, U.S. consumers got the McNugget -- the Golden Arches' "healthier" meat option that's been a winning strategy for other burger chains as well.
Fast-forward a few decades, and fried chicken is more popular than ever. In fact, what was once a regional favorite has become the fastest-growing chain in America: Chick-fil-A. It became the third largest restaurant operator in the U.S. last year, trailing only McDonald's andStarbucks. The staggering growth of Chick-fil-A has led many rivals to add chicken, or revise its chicken options, in response. The latest to counter, or at least ride Chick-fil-A's coattails, might beShake Shack(NYSE: SHAK).
Back in February, Shake Shack launched its own version of poultry-based finger food: Chick'n Bites. The limited-time offering is available as a six- or 10-piece meal, with a choice of either barbecue sauce or honey mustard. Chick'n Bites join the Chicken Shack sandwich -- another former limited offer that eventually became a permanent fixture -- as the second chicken item on Shake Shack's menu.
CEO Randy Garutti said Chick'n Bites have been well received. Many customers order the bites as an entree, but more importantly, some get them as an add-on. The upsell is a big deal for restaurants, as it helps with profitability on a per-location basis. For a company like Shake Shack that already does an average of about $4 million in sales per store each year, adding a popular side dish can be a great way to give a boost to what's already a very busy restaurant experience.
Incidentally, Chik-fil-A also does nearly $4.1 million in average sales per store each year -- the best rate among big restaurant chains in the industry.
It may be no coincidence, then, that in the same quarter Chick'n Bites rolled out, Shake Shack also had one of its best same-store-sales increases in recent history. Same-store sales, a combination of foot traffic and average ticket size, climbed 3.6% in thefirst quarter of 2019, after increasing only 1% for the full year 2018. If enough customers are adding Chick'n Bites as a side dish to their hamburger or hot dog main course, then Shake Shack has a winner on its hands. The company is forecasting full-year 2019 average annual store sales to be $4 million to $4.1 million, and same-store sales to rise 1% to 2%.
Shake Shack's new Chick'n Bites. Image source: Shake Shack.
Shake Shack is still marketing Chick'n Bites as a limited-time offer, but it hasn't yet given an end date. One reason Chick'n Bites may not be worth the extra sales they're generating is the cost. CFO Tara Comonte had this to say on the last earnings call:
Chicken is a high cost item in our basket, particularly the high-quality, fresh, hormone- and antibiotic-free supply that we insist upon. In the first quarter, the combination of adding a high-class item to our basket and the corresponding promotional pricing caused an increase in our food costs and was the most significant contributor to our overall COGS [cost of goods sold] deleverage. As we continue to test Chick'n Bites, we'll see this pressure lessen with the new pricing naturally rolled out combined with supply chain improvements we're making during this current quarter, which will result in cost efficiencies going forward while maintaining all our stringent quality requirements.
Put simply, adding another protein option is expensive. COGS rose 41% during the first quarter, easily surpassing the 34% growth in total sales. Not all of the COGS increase came from Chick'n Bites -- some of it came from packaging for delivery and pick-up, as well as higher beef costs -- but Comonte said a significant amount of the increase came from the new item. If expenses don't moderate or sales don't increase enough, the bite-sized chicken may need to go.
Only time will tell if Chick'n Bites become a permanent fixture, but the first-quarter results would indicate they should be. Though it's still asmall chain, Shake Shack has thus far been able to create a cult-like popularity to rival the one Chick-fil-A has built over the years. A fried chicken side-car option could help that success continue.
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Amazon Fire 7 (2019): You get what you pay for
Despite having Android under the hood,Amazon's Fire tabletshave traditionally had a very different purpose than the usual Android slate. Instead of trying to be an all-in-one workhorse, like some ofSamsung's Galaxy offerings, Amazon's Fire tablets are aimed at media consumption. And, thanks to Amazon's clout, they tend to be dirt cheap, making them ideal for penny pinchers who want a simple tablet for watching videos and playing games.
The cheapest of the bunch is the Amazon Fire 7, but it hasn't been updated since 2017. That is,until recently. Amazon has finally seen fit to bring it up to 2019 standards... but just barely. Yes, it is ever so slightly faster, has twice the storage capacity and now has hands-free Alexa -- meaning you no longer have to unlock the tablet in order to use it. But those are pretty minor upgrades. Aside from that, the Fire 7 remains basic. Sure, the Fire 7 is incredibly cheap at just $50, but at the same time, you do get what you pay for.
The Fire 7 comes in an all-plastic construction that definitely gives it the look and feel of an entry-level bargain-bin device. It does seem pretty sturdy and durable, and I like that the back has a bit of a grip so I'm in less danger of dropping it. The new Fire 7 also comes in pretty colors like plum, twilight blue and sage, and you can even get a matching case... but that costs an extra $25, which is half the price of the tablet itself. I do like the case, since it doubles as a stand, but that's quite a bit of sticker shock, especially if you're already a budget-conscious shopper.
The tablet's 7-inch IPS display with its 1,024 by 600-pixel resolution doesn't help things much either. I understand that I have to be a little forgiving when it comes to low-end tablets like this, but I've been far too spoiled by higher-end displays on almost anything these days to get over how bad it looks. Images were fuzzy around the edges, and text was just not as sharp as I'm used to. Plus, considering that one of the main uses of a tablet like this is for watching videos, I would've preferred at least an HD display.
Not everything was bad though. As mentioned, Amazon increased the built-in storage to either 16GB or 32GB, and there's the option to add even more with up to a 512GB microSD card. The front and rear 2-megapixel cameras also now offer 720p video recording, which is no doubt a step up from the 480p on the previous Fire 7. Still, I barely use the cameras on tablets anyway, so this didn't affect me one way or the other, but it's good to have if you plan on using it for video calls.
Just like other Fire tablets, the Fire 7 runs Fire OS, which puts the Amazon experience front and center. From the moment you power it up, you'll be presented with separate pages for categories like Books, Video, Games and even one called Shop, which (unsurprisingly) offers direct links to the Amazon store. All of the apps live in the Home menu, which of course includes shortcuts to all of Amazon's apps and services such as Audible and Prime Video. It's basically an all-in-one Amazon portal in the palm of your hands.
As with the Kindle, the Fire 7 comes in two flavors: one with Special Offers, which shows ads when the screen is locked, and one without. The ad-free version, however, will cost you $15 more, bumping up the initial price to $65.
It's worth remembering that unlike normal Android tablets, Fire OS devices don't have access to the usual Google apps like Gmail or YouTube. Instead, you have to download third-party alternatives from Amazon's own app store -- there's no Google Play store option here (though you can sideload apps via USB).
If you want a dedicated YouTube app, for example, you might download something like "Videos For YouTube" made by Kyy Apps. If you want Gmail, you can download "Tab for Gmail" by Tube Apps. Alternatively, you could go to the respective web pages on the Silk browser. These options certainly do the job, but the experience isn't the same. With an Android tablet, you only need a single Google account to login to all of your Google-related apps. With Fire OS, however, you'll need to repeat the process with every new app.
One feature I did like, however, was hands-free Alexa. With the previous Fire 7, the only way to summon Amazon's assistant was to unlock the tablet. Now you can beckon her simply by saying "Alexa." Alexa on the Fire 7 works pretty much the same way it does on other devices. When I say "Alexa, show me the weather" for example, it'll show me not just the day's highs and lows, but also the forecast for the upcoming week. Alexa also came in handy for finding videos, playing songs, setting timers and alarms, and just telling me the day's headlines.
Amazon says that the new Fire 7 is faster than the 2017 version due to a newer, faster core in its 1.3GHz quad-core processor. Despite that, I still found the performance to be sluggish. Launching apps often takes several seconds and there are frequently screen jitters when swiping through the menu. Playing games was especially frustrating, with long loading times and a lot of lag. Of course, watching videos wasn't a great experience either due to that lackluster screen. The Fire 7 only has one speaker, so the sound quality isn't great either.
Another area where the Fire 7 disappoints is battery life: It barely lasts a full day. According to Amazon, it should last around seven hours, but from my experience watching videos and playing games, it seemed closer to five.
I understand that at $50, the Fire 7 isn't going to be top-of-the-line hardware. This is clearly meant for those who are budget-conscious. But the thing is, you can actually get much better hardware if you decide to spend more. For around $30 more, for example, you can get the Fire HD 8, which has a slightly larger screen, an HD display, Dolby Atmos speakers and a few more hours of battery life. When I was writing this review, Amazon was selling the Fire HD 8 for just $60, which makes it an even better deal.
With its ho-hum display, lackluster performance and short battery life, I just can't recommend the Fire 7. I would suggest waiting for the next price drop on the Fire HD 8 or just spending a little more for it. Yes, it's more expensive, but I would rather spend $80 on a decent tablet than $50 on a lousy one. |
How Much a Ticket Might Hike Your Car Insurance Rate — and What to Do About It
Watch the video of ‘How Much a Ticket Might Hike Your Car Insurance Rate — and What to Do About It’ on MoneyTalksNews.com.
The lights flash, the siren sounds, and you’re pulled over by the side of the road as a police officer writes you a ticket. How embarrassing — and potentially expensive!
First, there’s the cost of the actual ticket, of course — and that initial expense varies widely, depending on the state and the driving violation. However, from reckless driving to not wearing your seat belt, the ticket you get may also increase the cost of your insurance. Over time, that can really add up.
The results of a recent study show just how much that ticket will raise your insurance rates. Check it out, and then read on for what you can do about it.
A study byInsurance.comcompared a driver with a clean record to a driver with certain types of violations from six major insurance carriers in 10 ZIP codes in each state. Here are average increases for 15 common violations:
• DUI (first offense) — 79% increase
• Reckless driving — 73%
• Driving 30 mph or more over the speed limit– 30%
• Careless driving — 26%
• Texting while driving — 23%
• Driving 16 to 29 mph over the speed limit — 22%
• Improper turn — 20%
• Improper pass — 20%
• Following too closely — 20%
• Driving 1 to 15 mph over the speed limit — 20%
• Failure to yield — 20%
• Failure to stop — 19%
• Driving without a license — 12%
• Driving without insurance — 10%
• Seat belt infractions — 3%
It could be even worse; those are just averages. Your actual rate will depend on a variety of factors, including your age, sex, where you live, your marital status and how long you’ve been with your carrier.
Traffic violations show up on your state driving record, which your insurance company accesses periodically. There are a few things you can do to keep a ticket from appearing on your driving record or to minimize the impact on your insurance rate.
Go to court. If you go to court, you may end up getting the ticket reduced to a lesser offense or having the case dismissed entirely. There are several reasons why a judge might dismiss your case. Among them:
• The officer who issued the ticket doesn’t appear in court.
• The ticket contains inaccurate information.
• You can prove you did not commit the offense.
Hire a lawyer. A lawyer could help your case. You’ll have to pay, but probably not too much.
Attend traffic school. Some states allow you to keep a violation off your record by attending traffic school. You can attend traffic school in person (many have night and weekend classes) or online, and you’ll have to pass a test. The fee to attend the school is usually small.
If you end up paying the fine, here are some steps to take going forward:
• Avoid getting pulled over again: This seems obvious, but remember that more violations will further increase your insurance rates. Keep your car maintained — no broken or malfunctioning lights — wear your seat belt, use your turn signals, drive safely and defensively, and renew your registration on time.
• Be patient: Your insurance company likely will eventually reduce your rate if you continue to drive without additional violations.
• Comparison shop for new insurance: Insurance companies treat violations differently, so another company may offer you a better rate. But don’t lie about past infractions. The company will be reviewing your driving record, even if you’ve moved to another state.
How do you keep the cost of driving manageable? Share with us in comments below or on ourFacebook page.
This article was originally published onMoneyTalksNews.comas'How Much a Ticket Might Hike Your Car Insurance Rate — and What to Do About It'.
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Can North Dakota's Production Boom Survive Low Oil Prices?
As per North Dakota’s oil regulator, the state’s daily crude output remained essentially flat in April after increasing 4.2% in the previous month. The North Dakota Department of Mineral Resources’ (‘DMR’) latest data said that oil production in April averaged 1,391,188 barrels a day, down by a marginal 572 barrels a day from March.
Drilling Activity Holds Steady
Despite this slight drop, the newest numbers showed that daily crude output remained above one million barrels for the 27th month, further confirming the status of North Dakota (centered on the Bakken formation) as one of the hottest shale plays in the United States. For the record, oil volumes reached an all-time high of 1,403,808 barrels a day in January.
As a proof of the region’s stable drilling activity, rig count has been hovering in the low- to mid-60s over the past few months. Some 63 rigs were exploring in the state in April, compared with the March count of 66. The all-time low of 27 was set in May 2016, while a year ago (i.e. in April 2018), North Dakota had 60 rigs operating.
Natural Gas Output, Producing Wells Hit Record High
Meanwhile, natural gas output hit its highest level ever. The state churned out 2,862,893 thousand cubic feet per day in April, up from March’s 2,837,170 thousand cubic feet per day. North Dakota’s total number of producing wells tallied 15,490 at the end of April, the highest on record.
Concerns Over Drop in Oil Prices
After a strong rally in the earlier part of the year that saw prices jump more than 50% to a nearly six-month high, oil has encountered a speed breaker. The commodity recently hit the lowest settlement level since January. The Jun 5 closing of $51.68 put WTI down 22% from its Apr 23 high of $66.30, officially meeting the definition of a bear market. While 'black gold' has come out of the bear market, prices continued to be threatened by economic concerns and inventory overhang.
As crude prices plunged in recent weeks, outlook for the drillers in North Dakota have darkened. Per Lynn Helms, Director of Mineral Resources, crude is trading at just over $40 a barrel in North Dakota, close to the break-even level of new wells. There are concerns that a further deterioration in prices or lower prices for an extended period might render well economics unsupportive for most producers in the state.
Another Challenge: Pipeline Constraints
One of the major factors for the revival of Bakken activity is the construction of 1,170-mile-long Dakota Access Pipeline. Energy Transfer L.P.’s ET mega project came online in June 2017 with a capacity to carry about 520,000 barrels of oil per day (or nearly 40% of North Dakota’s output). The pipeline, with investments from energy majors like Phillips 66 PSX, Enbridge Inc. ENB and Marathon Petroleum MPC, has helped to improve the region’s drilling economics by lowering transportation costs for operators. In fact, large operators like Oasis Petroleum Inc. OAS utilize the Dakota Access Pipeline to send a major portion of their products to market.
But with the pipeline’s spare capacity vanishing rapidly amid high demand, there is a need for infrastructure that can allow for the movement of more oil. A recent expansion of the Dakota Access Pipeline and the proposed Liberty Pipeline, which will provide opportunity to shippers to secure transportation service from the Bakken production areas to Corpus Christi, TX, are touted as solutions. While the Dakota Access expansion has augmented the pipeline’s capacity by 50,000 barrels per day, the $1.6 billion Liberty pipeline will have an initial throughput capacity of 350,000 barrels per day and is expected to start operations in another two years.
What Lies Ahead?
While the crude price collapse could stall North Dakota oil growth engine for the time being, production is nevertheless expected to remain robust. Among the number of companies who have built sizeable acreage positions in the second-largest oil producing state after Texas, we believe Hess Corporation HES might fetch you outstanding returns.
Hess is among the leading producers of crude in the Bakken oil shale play in North Dakota. With interests in the best areas of the play, the Zacks Rank #2 (Buy) upstream energy firm expects its daily production from Bakken will likely increase to 200 thousand barrels of oil equivalent (BOE) by 2021 from the current 130,000 BOE. The 2019 Zacks Consensus Estimate for this New York-based company is 21 cents, representing some 128.4% earnings per share growth over 2018. Next year’s average forecast is $1.86 pointing to another 787.5% growth.
You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This Could Be the Fastest Way to Grow Wealth in 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 reportPhillips 66 (PSX) : Free Stock Analysis ReportMarathon Petroleum Corporation (MPC) : Free Stock Analysis ReportEnbridge Inc (ENB) : Free Stock Analysis ReportOasis Petroleum Inc. (OAS) : Free Stock Analysis ReportHess Corporation (HES) : Free Stock Analysis ReportEnergy Transfer LP (ET) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
ECB Considers Further Stimulus: ETFs to Top & Flop
The Euro zone indicated on Jun 18 that it could restart money printing to boost its ailing economy even though the ECN ended QE in 2018. The stimulus moves could be cutting rates even further and other expansionary measures. Draghi ruled out concerns that the ECB was short of means for any new stimulus measures.
Already, the ECB pushed back the timing of its first-rate hike in nearly eight years to the second half of 2020 at the earliest during its June meeting, thanks to global growth concerns and tepid inflation outlook.
ECB president Draghi hinted that upcoming economic indicators point to persistent softness. Risks are skewed toward the downside. The rising threat of protectionism, possible U.S. sanctions on EU, Brexit issuers, U.S.-China trade war and the vulnerabilities in emerging markets are compelling the ECB’s dovish approach.
The continuation of trade war related risks has taken a toll on exports and in particular on manufacturing. The inflation has also been tame, with the annual figure of 1.2% still far below the bank's target of about 2%.
If the ECB rolls out more stimulus, the following ETFs will the losers and gainers.
Winners
International Treasury
After Draghi’s comments, the benchmark German bund yields fell to -0.30% and French 10-year yields turned negative for the first time on Jun 18. Since yields and bond prices are inversely related, this fundiShares International Treasury Bond ETF (IGOV)(which has a sizable exposure to Europe), gained 0.1% on Jun 18.
Currency-Hedged Large-Cap Stocks
The continuation of the low-rate policy and a weaker Euro should boost the currency-hedged Euro zone ETFs in the near term.iShares Currency Hedged MSCI Eurozone ETFHEZU andXtrackers MSCI Eurozone Hedged Equity ETF (DBEZ added about 2% and 1.9%, respectively, on Jun 18.
Dividend
Amid low rates, demand for high-yielding products should grow. So, investors can bet on ETFs likeFirst Trust STOXX European Select Dividend Index FundFDD (up 1.14% on Jun 18 and yields about 8.66% annually) andProShares MSCI Europe Dividend Growth ETFEUDV (up 1.4% on Jun 18 and yields 2.18% annually).
Small Cap
Low interest rates and stimulus may help the domestic-focused, small-cap ETFs to some extent.WisdomTree Europe Hedged SmallCap Equity FundEUSC added about 1.12 % on Jun 18.
Financials
Financial stocks normally underperform in a low-rate environment. However, more stimulus means more activities in the economy and the more dependence on financial institutions. This is whyiShares MSCI Europe Financials ETFEUFN advanced a modest 1% on Jun 18.
Losers
Euro
One of the biggest losers will be the euro. Talks of more monetary stimulus causedInvesco CurrencyShares Euro Currency TrustFXE to lose about 0.2% on Jun 19.
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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 reportWisdomTree Europe Hedged SmallCap Equity Fund (EUSC): ETF Research ReportsiShares MSCI Europe Financials ETF (EUFN): ETF Research ReportsXtrackers MSCI Eurozone Hedged Equity ETF (DBEZ): ETF Research ReportsInvesco CurrencyShares Euro Trust (FXE): ETF Research ReportsProShares MSCI Europe Dividend Growers ETF (EUDV): ETF Research ReportsiShares Currency Hedged MSCI Eurozone ETF (HEZU): ETF Research ReportsFirst Trust STOXX European Select Dividend Index Fund (FDD): ETF Research ReportsiShares International Treasury Bond ETF (IGOV): 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 |
Compagnie Lebon (EPA:LBON): What Are The Future Prospects?
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Looking at Compagnie Lebon's (EPA:LBON) earnings update in December 2018, analysts seem cautiously optimistic, with profits predicted to increase by 12% next year compared with the past 5-year average growth rate of 4.9%. With trailing-twelve-month net income at current levels of €4.5m, we should see this rise to €5.0m in 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. For those keen to understand more about other aspects of the company, you canresearch its fundamentals here.
View our latest analysis for Compagnie Lebon
The longer term view from the 1 analysts covering LBON is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of LBON's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
This results in an annual growth rate of 19% based on the most recent earnings level of €4.5m to the final forecast of €7.5m by 2022. This leads to an EPS of €6.39 in the final year of projections relative to the current EPS of €3.9. Margins are currently sitting at 8.1%, which is expected to expand to 11% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Compagnie Lebon, I've put together three key aspects you should further examine:
1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Valuation: What is Compagnie Lebon 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 Compagnie Lebon is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of Compagnie Lebon? 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. |
Foot-dragging over ditching Libor could be punished, regulator says
By Huw Jones
LONDON, June 19 (Reuters) - Banks could be punished if they don't switch enough contracts from the Libor interest rate benchmark to a Bank of England alternative by the end of 2021, a senior British regulator said on Wednesday.
The Financial Conduct Authority has told each bank to nominate a senior manager who is accountable to regulators for ensuring that contracts switch from referencing the London Interbank Offered Rate, or Libor, to the BoE's sterling overnight rate, Sonia.
The FCA has the authority to fine or remove a senior banker's licence.
"We don't expect banks to be dragging their feet; we expect them to be proceeding," Edwin Schooling Latter, director of markets and wholesale policy at the FCA told a conference on Wednesday.
"Where people are breaching rules, then enforcement is always a possibility. I very much hope it will not be a necessary tool in this case," Schooling Latter said.
Regulators in Britain, the United States and elsewhere want a shift away from Libor after banks were fined a combined $9 billion for trying to rig the rate.
Central banks want to see Libor replaced by "risk-free" rates, like the BoE's Sonia, which are based on actual market transactions and thus harder to rig. Libor is based on quotes from a panel of banks.
The shift from Libor, a rate used in products like mortgages, company loans and credit cards worth $300 trillion globally as a price reference, is one of the biggest challenges faced by the financial sector.
Schooling Latter said transition to Sonia in the swaps, derivatives, bonds and securitisation markets was going better than many had predicted.
Progress has been slower in loans, which the 50-year old Libor was originally devised for, though "green shoots" are emerging.
"I know there are corporates asking for overnight Sonia referencing loans," Schooling Latter said.
He welcomed the announcement this week from Natwest bank that it would introduce Sonia-referenced loans this year.
Associated British Ports received consent from its bondholders this month to switch the rate underpinning its 65 million pounds of floating-rate notes due in 2022 from Libor to Sonia.
"That has established a model that can be used by others. It would be good to see that happening more and more and become something for those who are nervous about it, more comfortable," Schooling Latter said.
Banks have agree to continue submitting quotes for compiling Libor only until the end of 2021, meaning it could disappear after then, although industry officials say not all outstanding contracts can be amended to use Sonia.
Libor use in new contracts after 2021 could be prohibited if it was no longer "representative" of the market - with knock-on effects on contracts already referencing Libor, Schooling Latter said.
"The market for Libor referenced instruments is going to be really impaired at that point when Libor is found not representative."
(Reporting by Huw Jones, editing by Larry King) |
ConocoPhillips Agrees to Acquire Entire Stake in Nuna Field
ConocoPhillips’COP affiliate ConocoPhillips Alaska has agreed to acquire the entire stake in Nuna discovery. The deal has been signed with Caelus Natural Resources Alaska LLC for the prospect, which is situated in the east of the Colville River.
Notably, the closing of the deal – with effective date of Jun 14, 2019 – awaits regulatory approval. The value of the transaction has not been disclosed yet.
The Nuna prospect, spread across 21,000 acres with 11 tracts, was discovered in 2012. Before taking the final investment decision, ConocoPhillips will assess the discovery.
In Alaska, ConocoPhillips is the largest producer of crude oil, operating roughly 1.3 million net undeveloped acres under leases. The latest deal has fortified the upstream energy player’s position in Alaska’s North Slope. ConocoPhillips has decided to employ the infrastructure of Kuparuk River Unit (KRU) field – the second biggest oilfield in North Slope of Alaska – for the development of the Nuna prospect. This will enable ConocoPhillips to minimize its cost structure while producing optimum oil volumes that will contribute to the company’s revenues and create jobs in Alaska.
Headquartered in Houston, TX, ConocoPhillips currently carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy sector are Enterprise Products Partners L.P. EPD, Oasis Midstream Partners LP OMP and Anadarko Petroleum Corporation APC. All the stocks sport a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Enterprise Products has average positive earnings surprise of 17% for the last four quarters.
Oasis Midstream is likely to witness earnings growth of 79.1% through 2019.
Anadarko Petroleum has average positive earnings surprise of 6.6% for the last four quarters.
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.
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 reportEnterprise Products Partners L.P. (EPD) : Free Stock Analysis ReportAnadarko Petroleum Corporation (APC) : Free Stock Analysis ReportConocoPhillips (COP) : Free Stock Analysis ReportOasis Midstream Partners LP (OMP) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Greif (GEF) Rides on Caraustar Acquisition Amid Debt Burdens
On Jun 18, we issued an updated research report onGreif, Inc.GEF. The company is poised to gain from the recently-concluded Caraustar acquisition, focus on operational execution, as well its strong and diverse product portfolio. However, lower volumes and unfavorable currency-exchange rates in the Rigid Industrial Packaging & Services segment and higher debt levels are near-term concerns.Greif reported adjusted earnings per share of 81 cents for second-quarter fiscal 2019, beating the Zacks Consensus Estimate of 79 cents. The figure also improved 7% year over year. Sales climbed 25% year over year from $968.3 million to $1213.3 million.Caraustar Buyout: A Strategic FitThis February, Greif completed the acquisition of Caraustar Industries, Inc. for $1.8 billion, and is currently integrating its operations. The buyout has strengthened the company’s leadership in industrial packaging as well as significantly bolstered its margins, free cash flow and profitability. During the April-end quarter, the Paper Packaging segment’s results improved significantly owing to the Caraustar acquisition.Caraustar is vertically integrated in recycled paperboard manufacturing, which will also fortify and balance Greif's portfolio as well as expand its paper franchise. In fact, Greif generates around half of its revenues from the United States. Furthermore, the percentage of the company’s sales from paper packaging will expand to approximately half of total consolidated revenues. The company has identified $15 million of new estimated run-rate synergies related to this acquisition and estimates that it will be able to achieve at least $60 million of run-rate synergies during the next 36 months from the deal’s closure.To include the impact of the acquired business, Greif has updated the adjusted earnings per share guidance for fiscal 2019 to $3.70-$4.00 from the prior estimate $3.60-$4.00. The company will also benefit from its focus on operational execution, capital discipline, and a strong and diverse product portfolio.In order to support its deleveraging plan, investing in existing businesses through maintenance projects and organic growth opportunities remains Greif’s priority. Moreover, as a result of higher debt, following the Caraustar acquisition, the company will prioritize debt repayment till it achieves the targeted leverage ratio of 2-2.5x net debt to EBITDA.Few Hurdles to Cross in FY19The company believes global macroeconomic conditions to remain choppy through calendar-year 2019. The Paper Packaging & Services business segment will exhibit growth, but at a lower trajectory on a year-over-year comparison.Rigid Industrial Packaging & Services remained under pressure during the fiscal second quarter due to the prevalent soft demand in global markets. During the quarter, volume weakness was pronounced in West and Central Europe, Asia Pacific region and the U.S. Gulf Coast on account of trade uncertainty and reduced chemical import demand from China. This is likely to continue throughout the current fiscal. Furthermore, currency-exchange rates are anticipated to remain volatile. This will likely be a concern for the Rigid Industrial Packaging & Services segment. Price decline might dampen the segment’s margins before improving in the back half of the calendar year. The segment is also projected to incur restructuring cost in the quarters ahead.However, during the fiscal, Greif will focus on rationalizing operations and close underperforming assets in the Rigid Industrial Packaging & Services and Flexible Products & Services segments.
Greif, Inc. Price and Consensus
Greif, Inc. price-consensus-chart | Greif, Inc. Quote
Zacks Rank & Key PicksGreif currently carries a Zacks Rank #3 (Hold).A few better-ranked stocks in the Industrial Products sector are Chart Industries, Inc. GTLS, Lawson Products, Inc. LAWS and Harsco Corporation HSC, each sporting a Zacks Rank #1 (Strong Buy), at present. You can seethe complete list of today’s Zacks #1 Rank stocks here.Chart Industries has an estimated earnings growth rate of 52.9% for the ongoing year. The company’s shares have gained 18.7%, in the past year.Lawson Products has an expected earnings growth rate of 24.5% for the current year. The stock has appreciated 46.5% in a year’s time.Harsco has a projected earnings growth rate of 9.1% for 2019. The company’s shares have rallied 7%, over the past year.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 reportGreif, Inc. (GEF) : Free Stock Analysis ReportChart Industries, Inc. (GTLS) : Free Stock Analysis ReportLawson Products, Inc. (LAWS) : Free Stock Analysis ReportHarsco Corporation (HSC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
New Strong Buy Stocks for June 19th
Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today:
American Outdoor Brands Corporation(AOBC): This company that designs, manufactures, and sells firearms has seen the Zacks Consensus Estimate for its current year earnings increasing 2.7% over the last 60 days.
American Outdoor Brands Corporation Price and Consensus
American Outdoor Brands Corporation price-consensus-chart | American Outdoor Brands Corporation Quote
Enova International, Inc. (ENVA): This technology and analytics company has seen the Zacks Consensus Estimate for its current year earnings increasing 8.4% over the last 60 days.
Enova International, Inc. Price and Consensus
Enova International, Inc. price-consensus-chart | Enova International, Inc. Quote
Jianpu Technology Inc.(JT): This company that provides online discovery and recommendation services has seen the Zacks Consensus Estimate for its current year earnings increasing 9% over the last 60 days.
Jianpu Technology Inc. Price and Consensus
Jianpu Technology Inc. price-consensus-chart | Jianpu Technology Inc. Quote
Woodward, Inc. (WWD): This company that designs, manufactures, and services control solutions for the aerospace and industrial markets has seen the Zacks Consensus Estimate for its current year earnings increasing 3% over the last 60 days.
Woodward, Inc. Price and Consensus
Woodward, Inc. price-consensus-chart | Woodward, Inc. Quote
PennyMac Financial Services, Inc. (PFSI): This company that engages in the mortgage banking and investment management activities has seen the Zacks Consensus Estimate for its current year earnings increasing 6.4% over the last 60 days.
PennyMac Financial Services, Inc. Price and Consensus
PennyMac Financial Services, Inc. price-consensus-chart | PennyMac Financial Services, Inc. Quote
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) 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.
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 reportWoodward, Inc. (WWD) : Free Stock Analysis ReportPennyMac Financial Services, Inc. (PFSI) : Free Stock Analysis ReportJianpu Technology Inc. (JT) : Free Stock Analysis ReportEnova International, Inc. (ENVA) : Free Stock Analysis ReportAmerican Outdoor Brands Corporation (AOBC) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
SEC considering opening up hedge funds & private equities to retail investors
The U.S. Securities and Exchange Commission (SEC) is considering softening restrictions around where "mom-and-pop" (or inexperienced) investors can put their funds,Bloomberg writes.
Under current regulations, retail investors cannot put money into hedge funds or private equities. Now, the SEC is considering allowing them to fund these areas, something that till now has only been available to accredited investors, who earn $200,000 annually or whose net worth is at least $1 million. According to SEC Chairman Jay Clayton, retail investors are missing out on investment opportunities.
"Our retail investors, people who aren’t qualified investors, aren’t having access to those investment opportunities... [which] perform better," he said in an interview. "We want to make sure retail isn’t left behind."
The SEC will first seek public comment regarding possible changes. The SEC's inquiries include a possible revision of the definition of an “accredited investor” and altering crowdfunding rules. However, it is unlikely the changes will be introduced anytime soon. |
Jabil (JBL) Q3 Earnings Beat, Revenues Up on EMS Growth
JabilJBL reported third-quarter fiscal 2019 earnings of 57 cents per share, which beat the Zacks Consensus Estimate by a penny and rallied 23.9% year over year.Revenues increased 12.8% year over year to $6.14 billion that outpaced the Zacks Consensus Estimate of $6 billion.Moreover, during the quarter, Jabil completed Wave 1 and Wave 2 phases related to the previously announced collaboration with Johnson & Johnson Medical Devices Companies (JJMDC).Quarter DetailsElectronics Manufacturing Services (EMS) revenues accounted for 65% of total revenues and increased 26% year over year to $4 billion, driven by strength in cloud, point-of-sale, 5G and wireless, and industrial end markets.Diversified Manufacturing Services (DMS) revenues accounted for 37% of revenues and decreased 6% year over year to $2.1 billion, primarily due to weak demand for mobility, which is part of Mechanics and Edge Devices & Accessories end markets.
Gross margin on a GAAP basis contracted 10 basis points (bps) year over year to 7.2%.Core EBITDA margin contracted 20 bps on a year-over-year basis to 6.1%.Operating expenses on a GAAP basis declined 30 bps to 4.9%. While selling, general and administrative (SG&A) expenses shrank 20 bps to 4.5%, research & development (R&D) expenses as percentage of revenues were flat at 0.2%.Non-GAAP core operating margin expanded 30 bps to 3%.EMS core margin declined 100 bps on a year-over-year basis to 3.3%, primarily due to softness in the capital equipment space and costs associated with the ramping up of new business awards.However, DMS core margin improved 130 bps on a year-over-year basis to 2.6%, driven by improved business mix well supported by Jabil’s diversification efforts.Balance Sheet & Cash FlowJabil exited the quarter with cash and cash equivalents of $694 million compared with $749.1 million in the previous quarter.In the quarter, cash flow from operations was $5 million, while free cash outflow was $225 million.GuidanceFor fourth-quarter fiscal 2019, Jabil expects total revenues between $6.3 billion and $6.9 billion. Revenues are expected to grow almost 14% year over year at mid-point.DMS revenues are forecasted to be $2.5 billion, up roughly 4% year over year. EMS revenues are forecasted to be $4.1 billion, up nearly 22% year over year.Core operating income is estimated to be $215-$275 million, with core operating margin of 3.4%-4%. The company’s core earnings are expected to be 76-96 cents per share on a non-GAAP basis.For fiscal 2019, revenues are expected to be $25.3 billion. Core operating income is expected to be $875 million, up 14% year over year.Adjusted free cash flow is expected around $400 million, up 60% year over year.For DMS segment, revenues are expected to be $9.9 billion. Jabil expects core operating margin to be 3.9% and EBITDA of $890 million.Further, EMS segment revenues are expected to be $15.4 million. The company expects core operating margin to be 3.2% and EBITDA of $760 million.Moreover, for fiscal 2020, revenues associated with the J&J collaboration are expected between $800 million and $1 billion.Zacks Rank & Stocks to ConsiderJabil currently carries a Zacks Rank #4 (Sell).Some better-ranked stocks in the broader technology sector include Sanmina SANM, Fitbit FIT and Universal Display OLED. While Sanmina and Fitbit have Zacks Rank #2 (Buy), Universal Display flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Long-term earnings growth rate for Sanmina, Fitbit and Universal Display are currently pegged at 12%, 17.5% and 30%, respectively.
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.
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 reportUniversal Display Corporation (OLED) : Free Stock Analysis ReportFitbit, Inc. (FIT) : Free Stock Analysis ReportSanmina Corporation (SANM) : Free Stock Analysis ReportJabil, Inc. (JBL) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Hotels, firms cut back on water use as taps run dry in Chennai
By Sudarshan Varadhan
CHENNAI, India (Reuters) - Hotels in Chennai are rationing water for guests amid searing heat while companies limit showers as the city of 4.6 million faces its worst shortage in years.
All four reservoirs that supply Chennai, known as the Detroit of South Asia for its flourishing automobile industry, have run dry this summer, largely because of poor monsoon rains last year.
Chennai is one of 21 cities that a government think-tank warned last year could run out of ground water by 2020. This year's monsoon is delayed, further compounding problems across a swath of western and central India.
Employees in Chennai-based companies such as Fiat Chrysler, TCS, Wipro and Cognizant said they had been asked to cut back on water use in canteens and restrooms.
U.S-listed Cognizant Technology Solutions (CTS), which employs thousands in the city, said it had cut down on water at its canteen and gym.
"We have also switched to biodegradable plates in all our cafeterias, temporarily closed shower facilities in our gyms, and minimised the washing of utensils in our campuses by our cafeteria vendors," CTS said in a statement.
Water storage levels in the city's four major reservoirs were one-hundredth of what they were this time last year - and at a mere 0.2% of capacity, according to state government data.
Chennai is entirely dependent on the northeast monsoon which begins in October. The last three months of 2018 received lower than average rainfall, with the deficit rising to as much as 80 percent in the month of December, according to India's weather office.
Ananda, a small hotel in southern Chennai, had a notice at its entrance warning of a water shortage.
"It's not just us, all the hotels run the risk of shutting down because there's hardly enough water," said P. Chandrasekhar, a supervisor at the hotel.
State authorities said they had stepped up water supplies to the city each year. "In 2017, we were supplying 450 million litres of water. Now we are supplying 525 million litres per day," S. P. Velumani, the minister for municipal administration, said.
But across town, residents could be seen crowded around water tankers in temperatures of over 40 degrees Celsius, holding buckets as media reported scuffles.
(Writing by Sanjeev Miglani; Editing by Nick Macfie) |
Those Who Purchased Lassila & Tikanoja Oyj (HEL:LAT1V) Shares Three Years Ago Have A 14% Loss To Show For It
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For many investors, the main point of stock picking is to generate higher returns than the overall market. But the risk of stock picking is that you will likely buy under-performing companies. We regret to report that long termLassila & Tikanoja Oyj(HEL:LAT1V) shareholders have had that experience, with the share price dropping 14% in three years, versus a market return of about 36%. The good news is that the stock is up 2.0% in the last week.
See our latest analysis for Lassila & Tikanoja Oyj
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
During the three years that the share price fell, Lassila & Tikanoja Oyj's earnings per share (EPS) dropped by 4.9% each year. The 4.8% average annual share price decline is remarkably close to the EPS decline. That suggests that the market sentiment around the company hasn't changed much over that time, despite the disappointment. It seems like the share price is reflecting the declining earnings per share.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Dive deeper into the earnings by checking this interactive graph of Lassila & Tikanoja Oyj'searnings, revenue and cash flow.
It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Lassila & Tikanoja Oyj, it has a TSR of 1.4% for the last 3 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted thetotalshareholder return.
We regret to report that Lassila & Tikanoja Oyj shareholders are down 6.5% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 0.2%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Longer term investors wouldn't be so upset, since they would have made 4.2%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. Keeping this in mind, a solid next step might be to take a look at Lassila & Tikanoja Oyj's dividend track record. Thisfreeinteractive graphis a great place to start.
Of courseLassila & Tikanoja Oyj 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 FI 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 Invest in Haemonetics (HAE) Stock Now
Haemonetics CorporationHAE is enjoying investors’ rising optimism, courtesy of the NexSys PCS plasmapheresis system.
The company has outperformed the industry in the past year. The stock has improved 24.1% compared with the industry’s 5.9% rise and the S&P 500 composite’s 4% increase.
This renowned global provider of blood management solutions to customers encompassing blood and plasma collectors as well as hospitals has a market cap of $5.84 billion. The company has an earnings growth rate of 13.5% for the next three to five years.
Banking on solid prospects, this Zacks Rank #1 (Strong Buy) stock is an attractive pick for investors at the moment. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Potential Upsides of Plasma Franchise:Throughout fiscal 2019, the company’s plasma franchise continued to witness strong growth driven primarily by robust demand for disposables in North America. In the region, the company registered double-digit revenue growth from the year-ago period. The company is progressing well with the development and launch of NexSys PCS plasmapheresis system.
Huge Potential of Hemostasis Management Franchise:Under Hospital business, Hemostasis Management is witnessing strong growth of late. In May 2019, Haemonetics received FDA clearance to expand the medical indication of its TEG 6s Hemostasis Analyzer System for use in adult trauma settings.
Strong Balance Sheet:Haemonetics exited fiscal 2019 with cash and cash equivalents of $169.4 million compared with $154.9 million at the end of third-quarter fiscal 2019. For the fiscal, the company generated operating cash flow of $159.3 million compared with $220.4 million a year ago. This indicates promising return to shareholders.
Which Way are Estimates Treading?
For the first quarter of fiscal 2020, the Zacks Consensus Estimate for earnings is pegged at 63 cents, which indicates 6.8% fall from the year-ago quarter’s figure. The same for revenues is pegged at $238.5 million, calling for year-over-year growth of 3.9%.
For 2019, the Zacks Consensus Estimate for earnings is pegged at $2.9, suggesting 22.6% year-over-year growth. The same for revenues is pegged at $1.01 billion, indicating 4.2% rise from the prior-year quarter’s level.
Other Key Picks
Some other top-ranked stocks in the broader medical space are Cerner Corporation CERN, Penumbra PEN and Bruker Corporation BRKR. Each of these stocks carry a Zacks Rank #2.
Cerner’s long-term earnings growth rate is expected to be 13.5%.
Penumbra’s long-term earnings growth rate is projected at 21.5%.
Bruker’s long-term earnings growth rate is estimated at 11.7%.
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. 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 reportCerner Corporation (CERN) : Free Stock Analysis ReportBruker Corporation (BRKR) : Free Stock Analysis ReportPenumbra, Inc. (PEN) : Free Stock Analysis ReportHaemonetics Corporation (HAE) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
UK factory orders slide in June as Brexit uncertainty weighs: CBI
By David Milliken
LONDON (Reuters) - British factory orders slid in June against a backdrop of Brexit uncertainty, and manufacturing output in the second quarter looks on course for its weakest performance in three years, the Confederation of British Industry said on Wednesday.
The CBI's monthly industrial orders index sank to -15 this month from -10 in May, its weakest since October 2016 and a steeper fall than a forecast of -12 in a Reuters poll.
The production index for the three months to June dropped to its lowest since the three months to April 2016, hit by sharp falls in car production this April.
Many carmakers suspended production that month, expecting disruption around the March 29 date on which Britain had been due to leave the European Union.
"Brexit uncertainty is holding back growth in key industries," said Tom Crotty, group director of energy and chemicals group INEOS, who chairs a CBI manufacturers' panel. "The first item in the new prime minister's in-tray must be to quickly resolve the Brexit deadlock."
Britain is now due to leave the EU on Oct. 31, and former foreign secretary Boris Johnson -- the leading contender to succeed Prime Minister Theresa May -- says he is open to leaving without a deal if the EU will not renegotiate.
The CBI, which wanted Britain to remain in the EU, has repeatedly said a no-deal Brexit would cause major disruption to trade and supply chains.
Britain's economy performed better than expected in the first quarter of 2019, growing a robust 0.5% due to a bigger than expected boost from businesses stocking up ahead of the long-anticipated March Brexit date.
But this boost is expected to go into reverse during the current quarter, with the Bank of England estimating growth of just 0.2% and some forecasters predicting a contraction.
Pantheon Macroeconomics's Samuel Tombs said he expected industrial production would pick up in the third quarter as car plants operated through the summer holiday period -- and that even if factory output remained weak, the sector was too small to push Britain's economy as a whole into recession.
"The much larger services sector stands to benefit from robust growth in households' disposable incomes," Tombs said.
(Reporting by David Milliken; Editing by Catherine Evans) |
With BABA Stock Price Down, Why Is Alibaba Selling Shares In Hong Kong?
Alibaba(NYSE:BABA) reportedly is getting a Hong Kong listing. Multiple reports suggest the company is planning to sell $20 billion worth of Alibaba stock on the Hong Kong Stock Exchange. A key question, with the BABA stock price down about 18% from early May highs, is “Why now?”.
Source: Shutterstock
As with so much when it comes to Alibaba stock, bulls and bears likely will answer the question very differently. Bulls see the company raising capital for its myriad initiatives — and potentially raising the profile of BABA stock. Bears wonder why the company needs the cash and why it needs to do such a deal now.
BABA has long been a battleground stock. The Hong Kong listing likely will only harden both sides.
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There are two broad benefits to the cross-listing. One, Alibaba’splan to liston the Hong Kong exchange could — and maybe should — drive the BABA stock price higher.
Hong Kong-listed shares can beowned directly by Chinese investors. Those investors might see Alibaba more favorably than their foreign counterparts. And if Alibaba stock rises on the Hong Kong exchange, its New York listing might do the same, as arbitrageurs buy cheaper New York-listed shares.
• 7 Top-Rated Biotech Stocks to Invest In Today
That said, those arbitrageurs also would sell the Hong Kong-listed shares, potentially mitigating some of the effects of increased demand. And the two shares would not be the same: BABA stock does not offer direct ownership of the company. Rather, ‘shareholders’own a stakein a VIE (variable interest entity) in the Cayman Islands.
That VIE has a contractual right to Alibaba profits — but that’s not the same thing as actually owning shares of Alibaba itself. As such, it would seem almost certain that Alibaba shares in New York will trade at a consistent, if modest, discount to the Hong Kong-listed shares to account for the VIE-related risk.
Still, details aside, a second listing could increase demand for Alibaba stock, particularly among China’s retail investors. Smaller investorscontrol 35% of the Chinese market, against an 8% share in the U.S. And the pendingAlibaba stock splitlikely allows those Chinese retail investors to afford smaller positions. There is a case that BABA stock should get a bump from the two listings.
The second goal, apparently, is to raise capital. Alibaba’s New York IPO wasthe largest in history, raising $25 billion. Alibaba reportedly will bring in another $20 billion this time around. Those funds can be used for more acquisitions; building out the cloud business; or further investing behind the business.
That in turn would seem to signal a longer-term rise in Alibaba stock, assuming the funds are invested well.
So BABA bulls no doubt see the new listing as good news. Indeed, the BABA stock price has risen modestly of late, though a stronger broad market likely plays a role as well.
But for Alibaba skeptics, the offering seems curious. That’s particularly true for investors whoquestion the company’s accounting, The first question is why, exactly, Alibaba needs another $20 billion. The company closed fiscal 2019 (ending March 31) with $28.3 billion in cash on its balance sheet. Alibaba owns another $24 billion or so in investment securities (not including its investments in private companies). That $44 billion war chest sits against total debt of less than $9 billion.
To be sure, Alibaba does have places to spend its cash. The company’s operations beyond core commerce last year — cloud computing, digital media and entertainment, and its “innovation initiatives” — all posted losses last year as Alibaba invested in future growth. In cloud, Alibaba istrying to replicate the successofAmazon(NASDAQ:AMZN) andMicrosoft(NASDAQ:MSFT). RivalJD.com(NASDAQ:JD) is spending heavily on its supply chain.
But operating losses for those segments totaled a little over $5 billion. Even with those losses, free cash flow was somewhere in the range of $15 billion, even including payments for copyrights and other intangible assets.
• 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019
For those who doubt Alibaba, the offering (which reportedly will be of new shares) makes little sense. Alibaba, if its financials are accurate, has more than enough cash to fund even aggressive investments in its new initiatives. Unless there’s a big acquisition planned, Alibaba is diluting its shareholders for money it doesn’t seem to need.
Alibaba stock is down 23% from July 2018 highs. Yet it will likely price those shares at a discount to the current U.S.-listed price (as is usually the case with these offerings). That in turn means Alibaba shareholders will see their ownership diluted at a price well below their view of the stock’s intrinsic value. (Presumably, all Alibaba shareholders, outside of passive managers, believe the stock is undervalued at the moment.)
It’s possible the dilution will be worth it. Perhaps Alibaba has a big deal in mind. It needs to compete against JD.com andTencent Holdings(OTCMKTS:TCEHY) and, perhaps, the more cash the better. A wider reach for the stock — and direct ownership, as opposed to the U.S.-based VIE structure — can help as well.
But the capital raise only adds to the doubts surrounding BABA stock as well. And while short interest here is likely somewhat overstated (there are no doubt arbitrage traders who are longAltaba(NASDAQ:AABA) and short BABA), short sellers likely will see the offering as confirming their thesis, not disproving it.
In short, the beauty of the listing, like Alibaba stock, is in the eye of the beholder. Bulls see more shareholders, more cash, and a higher BABA stock price. Bears see another questionable move … and maybe even another red flag. Time will tell which side has it right.
As of this writing, Vince Martin has no positions in any securities mentioned.
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The postWith BABA Stock Price Down, Why Is Alibaba Selling Shares In Hong Kong?appeared first onInvestorPlace. |
Is Compañía de Distribución Integral Logista Holdings, S.A. (BME:LOG) As Strong As Its Balance Sheet Indicates?
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Mid-caps stocks, like Compañía de Distribución Integral Logista Holdings, S.A. (BME:LOG) with a market capitalization of €2.6b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. Surprisingly though, when accounted for risk, mid-caps have delivered better returns compared to the two other categories of stocks. Today we will look at LOG’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look furtherinto LOG here.
Check out our latest analysis for Compañía de Distribución Integral Logista Holdings
LOG has built up its total debt levels in the last twelve months, from €34m to €40m made up of predominantly near term debt. With this increase in debt, LOG's cash and short-term investments stands at €142m to keep the business going. Moving on, operating cash flow was negative over the last twelve months. For this article’s sake, I won’t be looking at this today, but you can examine some of LOG’soperating efficiency ratios such as ROA here.
At the current liabilities level of €5.9b, it appears that the company arguably has a rather low level of current assets relative its obligations, with the current ratio last standing at 0.85x. The current ratio is calculated by dividing current assets by current liabilities.
With debt at 8.3% of equity, LOG may be thought of as having low leverage. LOG is not taking on too much debt commitment, which can be restrictive and risky for equity-holders.
LOG’s cash flow coverage indicates it could improve its operating efficiency in order to meet demand for debt repayments should unforeseen events arise. In addition to this, its low liquidity raises concerns over whether current asset management practices are properly implemented for the mid-cap. I admit this is a fairly basic analysis for LOG's financial health. Other important fundamentals need to be considered alongside. I recommend you continue to research Compañía de Distribución Integral Logista Holdings to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for LOG’s future growth? Take a look at ourfree research report of analyst consensusfor LOG’s outlook.
2. Valuation: What is LOG 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 LOG 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. |
Square Stock Is Not the Easy Money You Might Think It Is
Square(NYSE:SQ) is one of the dominant names in the fast-growing mobile payments market and while the stock has, at various points, reflected expectations for that rapid growth, Square stock is not an easy money play.
Source:Chris Harrison via Flickr (Modified)
Square is up more than 28% year-to-date, that performance is unimpressive when measured against a broaderbasket of fintech stocks. For example, theGlobal X FinTech ETF(NASDAQ:FINX) is up more than 32.32% this year. Additionally, Square stock resides 29% below its 52-week, putting the shares deep into bear market territory.
As of this writing, Square stock is just under $72, indicating that if analysts’ are anywhere close to their assessments on the name, most of which are bullish, there could be considerable upside for the shares. The average analyst price target on Square is nearly $83.
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When Square first started out, the company’s bread and butter was small business owners looking for ways to get paid faster. Think hair stylists, landscapers, pet-oriented businesses and other entrepreneurs with mobile businesses that were processing large amounts of transactions, but at small to medium dollar amounts per swipe.
So for Square stock to be attractive over the long-term, the company needs to forge into markets, and those areas are chock full of well-heeled competitors.
“We contend the limits of these attributes will be tested as it moves into restaurants and other complex verticals,” SunTrust Robinson Humphrey analyst Andrew Jeffrey saidin a note out in April.
Square has built competitive advantages in the market for credit and debit card readers that operate through mobile phones. Ask most investors to name another company that competes in this arena and they may struggle to answer, but getting into more conventional, brick-and-mortar businesses brings opportunity and potential risks for Square stock.
Square continues to grow at a very fast rate, with adjusted revenue up 49% year over year,” said Morningstarin a recent note. “The business is transitioning as the company builds out more ancillary products, with transaction-based revenue up a relatively modest 26% and subscription and service-based revenue up 97%, excluding acquisitions.”
The research firm has a $49 fair value estimate on Square stock.
Some analysts are more bullish, but investors should query why. Square stock could get a lift from its reward card known as boost, but are 10% discounts at select restaurants and coffee stops enough to move Square stock. Apparently, some on the sell side think the answer is “yes.”
KeyBanc’s Josh Beck “thinks that Square will compound annual revenue growth of about 35% over the next three years and will hit have a 26% margin by 2021. His target price is $100 a share, which represents about 40% upside,” reports Barron’s.
Much of the bull thesis for Square stock revolves around the Cash app, a mobile app that customers use to send money to friends, family, etc. Square’s Cash app competes with Venmo, operated byPayPal(NASDAQ:PYPL); and Zelle, a money transfer service offered by a slew of major U.S. banks. Analysts are enthusiastic regarding Cash app’s prospects.
Another area underscoring the risk/reward with Cash app is how Square frame the app. Beyond being a payment transfer option, Square wants customers to think of and use Cash app like a traditional bank.
Square is “still working with the Federal Deposit Insurance Corporation on receiving a banking charter. That would allow Square to expand the types of lending and deposit business it can do without a banking partner,”according to Barron’s.
“We believe Cash App—and Cash Card in particular—will drive upside to SQ revenue estimates over time as user engagement increases, and platform growth expands,” said Barclays’s Ramsey El-Assalin a recent note. “While SQ has remained guarded regarding Cash App user statistics, we believe enough distinct data points have been released to allow us to put together a more complete model of Cash App revenue performance.”
Still, there are concerns with Cash app, too. Notably, Square is a latecomer to this space, arriving here after Venmo and Zelle, meaning the perhaps the most legitimate opportunity for Cash app to pilfer market share from its rivals is to offer lower fees, meaning lower margins for Square.
“We continue to believe that Square’s relatively late entry into the space and the existing consumer customer bases at Venmo (PayPal) and Zelle (the banks) leaves it as the most poorly positioned among the leading platforms from a long-term perspective,” said Morningstar. “As such, we think the future of this business hinges on how many platforms ultimately remain viable, and we continue to believe Cash App could prove to be a distraction from more achievable growth opportunities closely related to the core acquiring business.”
Square is a well-known name in a compelling market niche, but even with its recent declines, Square stockis not particularly cheap. For now, investors may be able to find better opportunities in the fintech space, including PayPal.
Todd Shriber does not own any of the aforementioned securities.
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The postSquare Stock Is Not the Easy Money You Might Think It Isappeared first onInvestorPlace. |
RPT-UPDATE 1-Apple explores moving 15-30% of production capacity from China - Nikkei
(Repeats with no changes to text or headline)
June 19 (Reuters) - Apple Inc has asked its major suppliers to assess the cost implications of moving 15%-30% of their production capacity from China to Southeast Asia as it prepares for a restructuring of its supply chain, according to a Nikkei Asian Review report on Wednesday.
Apple's request was a result of the extended Sino-U.S. trade dispute, but a trade resolution will not lead to a change in the company's decision, Nikkei said https://s.nikkei.com/31zCGhw, citing multiple sources.
The iPhone maker has decided the risks of depending heavily on manufacturing in China are too great and even rising, it said.
Key iPhone assemblers Foxconn, Pegatron Corp , Wistron Corp, major MacBook maker Quanta Computer Inc, iPad maker Compal Electronics Inc , and AirPods makers Inventec Corp, Luxshare-ICT and Goertek have been asked to evaluate options outside of China, Nikkei reported.
The countries being considered include Mexico, India, Vietnam, Indonesia and Malaysia. India and Vietnam are among the favorites for smartphones, Nikkei said, citing sources who did not want to be identified as the discussions are private.
Last week, Foxconn said it had enough capacity outside China to meet Apple's demand in the American market if the company needed to adjust its production lines, as U.S. President Donald Trump threatened to slap further $300 billion tariffs on Chinese goods.
China is a key market for Apple as well as a major production center for its devices.
A group of more than 30 people from Apple's capital expense studies team have been negotiating production plans with suppliers and governments over monetary incentives that could be offered to lure Apple manufacturing, the report said.
A deadline has not been set for the suppliers to finalise their business proposals, Nikkei said, adding that it would take at least 18 months to begin production after choosing a location.
Apple and Foxconn did not immediately respond to a request for comment on the report. (Reporting by Sathvik N in Bengaluru; Additional reporting by Aishwarya Nair; editing by Gopakumar Warrier and Rashmi Aich) |
Watchdogs seek 'demonstrable progress' from Lloyd's of London on harassment: BoE
LONDON (Reuters) - Britain's financial regulators are looking for "demonstrable progress" in the way the Lloyd's of London commercial insurance market deals with harassment, a Bank of England official said on Wednesday.
Lloyd's has rushed to change its policies, including introducing life bans from its building, after Bloomberg News published a report earlier this year detailing daytime drinking and allegations of sexual harassment in the market, in which around 45,000 people work.
Insurers in Britain are regulated by the Bank of England's Prudential Regulation Authority and by the Financial Conduct Authority.
Lloyd's also acts as a regulator for the companies which operate under its roof, which include 99 underwriting syndicates and hundreds of brokers.
"We welcome the reaction of Lloyd’s leadership and are supportive of their initiatives," Anna Sweeney, director of insurance supervision at the BoE, said in a speech delivered in London.
These include a bullying and harassment hotline, a market-wide culture survey, the use of sanctions including potential lifetime bans, and new training and initiatives to increase diversity, she said.
"We and the FCA will be monitoring progress closely and talking to Lloyd's to see demonstrable progress," she added.
The media allegations, if proven, could impact the Bank's view of whether senior managers in the industry are fit and proper, Sweeney said.
Modernising the 330-year old Lloyd's market will be a challenge, Lloyd's Chairman Bruce Carnegie-Brown said in a speech in New York late on Tuesday, though he did not refer directly to harassment or diversity issues.
(Reporting by Carolyn Cohn; Editing by Jan Harvey) |
Better Marijuana Stock: MariMed vs. Village Farms
There has been a big role reversal forMariMed(NASDAQOTH: MRMD)andVillage Farms International(NASDAQ: VFF). In 2018, MariMed ranked as one of thetop-performing U.S. marijuana stocks, jumping 371% while Village Farms plunged 47%. So far this year, however, Village Farms is one of the biggest winners, with the stock up more than 270% while MariMed's share price has dropped more than 30%.
Some investors might think that it's about time for the tables to turn once again, with MariMed rebounding and Village Farms giving up some of its big year-to-date gains. Others might feel that the current trends for these two marijuana stocks will continue.
Which of these two stocks is actually the better pick for long-term investors? Here's what you need to know to decide between MariMed and Village Farms.
Image source: Getty Images.
Probably the best argument for buying MariMed stock is that the company is growing rapidly, with tremendous opportunities for that growth to accelerate. MariMed reported first-quarter year-over-year revenue growth of 69%. The company's adjustedEBITDAincreased by 76% over the prior-year period.
But it's MariMed's opportunities for even more growth that will likely be more intriguing to investors. The company started out offering advisory services to medical cannabis operators. Now, though, MariMed is buying up its clients to become one of the largest multistate cannabis operators in the U.S.
When its transition is completed, MariMed will manage medical cannabis operations in Massachusetts, Illinois, Nevada, and Maryland. MariMed has already received approval from the state of Massachusetts to acquire one of its clients, ARL Healthcare, and awaits state approval in the other three states to complete the transfer of ownership of the clients' businesses that it is buying.
With these transactions likely to finalize over the next few months, MariMed should see its revenue skyrocket. The company also hopes to add fuel to the fire through its entry into the U.S. hemp cannabidiol (CBD) market.
MariMed claims a significant stake in GenCanna Global, one of the largest producers of CBD products in the U.S. that comply with Good Manufacturing Process (GMP) guidelines. The company also established a new subsidiary, aptly named MariMed Hemp, to focus on the U.S. hemp CBD market.
MariMed CEO Bob Fireman thinks his company is now "a significant early mover in the burgeoning CBD health and wellness market." Cannabis market researcher Brightfield Group predicts that the U.S. hemp CBD market will soar to$22 billion by 2022. While other estimates aren't that optimistic, there is certainly a big opportunity.
A few years ago, Village Farms focused on growing greenhouse produce such as cucumbers, peppers, and tomatoes. Thanks to its partnership withEmerald Health Therapeutics(NASDAQOTH: EMHTF), however, Village Farms today ranks as an up-and-coming player in the Canadian cannabis market.
In 2017, Village Farms and Emerald formed a joint venture named Pure Sunfarms. Village Farms' contribution to the joint venture was a 1.1 million-square-foot greenhouse in Delta, British Columbia, that could be converted to growing cannabis. That conversion has been completed with the Delta greenhousenow fully operational to produce cannabis.
Pure Sunfarms is set to produce quite a bit of cannabis. Its current facility can grow 75,000 kilograms on an annual basis. Village Farms announced in April that the joint venture planned to double its production capacity by converting another identical greenhouse in Delta to produce cannabis.
With demand exceeding supply in the Canadian adult-use recreational marijuana market, Village Farms and Pure Sunfarms should be able to sell everything they can produce. That's likely to translate to tremendous revenue growth for Village Farms over the next few years.
Village Farms also intends to compete in the U.S. hemp CBD market. CEO Michael DeGigliostated in the company's Q1 conference callthat Village Farms' focus will be on growing, extracting, and producing hemp products for the U.S. retail market. He said the company will start off by selling biomass for extraction but plans to shift into producing its own branded and private-label hemp CBD products next year.
In May, Village Farms announced an expansion of its hemp-growing capabilities. The company entered into an agreement with Arkansas Valley Hemp, LLC to form a joint venture to grow hemp outdoors in Colorado as well as extract CBD from hemp.
Both of these companies are likely to deliver huge revenue growth in the not-too-distant future. But the long-term prospects are what really matter. I think that MariMed could have an advantage over the long run.
My chief concern for Village Farms is that it could be in trouble when supply inevitably catches up with demand in Canada. I agree withHEXO(NYSEMKT: HEXO)(TSX: HEXO)CEO Sebastien St.-Louis'prediction that there will be a shake-up in the Canadian cannabis industrywithin the next 24 months that will cause major problems for smaller cannabis producers. Village Farms could be a victim of this shake-up, especially withthe company's poor crop yieldputting it at a disadvantage compared with more efficient producers.
I think that MariMed's stake in GenCanna puts the company in a pretty good position to succeed in the U.S. hemp market. I also view MariMed's strategy to buy its clients as a smart move.
While I like MariMed over Village Farms, I don't think that MariMed is a great stock to buy right now. Even with the year-to-date decline for the stock, MariMed's shares still trade at an astronomical multiple of sales. I'd prefer to see how well the company performs in the hemp CBD market before recommending the stock as a buy.
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Keith Speightshas no position in any of the stocks mentioned. The Motley Fool recommends HEXO. The Motley Fool has adisclosure policy. |
Three Things You Should Check Before Buying LillestrømBanken (OB:LSTSB-ME) For Its Dividend
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Could LillestrømBanken (OB:LSTSB-ME) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments.
LillestrømBanken has only been paying a dividend for a year or so, so investors might be curious about its 6.9% yield. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this.
Click the interactive chart for our full dividend analysis
Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. In the last year, LillestrømBanken paid out 12% of its profit as dividends. We'd say its dividends are thoroughly covered by earnings.
Remember, you can always get a snapshot of LillestrømBanken's latest financial position,by checking our visualisation of its financial health.
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. With a payment history of less than 2 years, we think it's a bit too soon to think about living on the income from its dividend. During the past one-year period, the first annual payment was øre8.54 in 2018, compared to øre7.40 last year. The dividend has fallen 13% over that period.
A shrinking dividend over a one-year period is not ideal, and we'd be concerned about investing in a dividend stock that lacks a solid record of growing dividends per share.
Examining whether the dividend is affordable and stable is important. However, it's also important to assess if earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. LillestrømBanken's earnings per share are down -6.6% over the past year. While this is not ideal, one year is a short time in business, and we wouldn't want to get too hung up on this. We do note though, one year is too short a time to be drawing strong conclusions about a company's future prospects.
We'd also point out that LillestrømBanken issued a meaningful number of new shares in the past year. Regularly issuing new shares can be detrimental - it's hard to grow dividends per share when new shares are regularly being created.
When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. Firstly, we like that LillestrømBanken has a low and conservative payout ratio. Earnings per share are down, and to our mind LillestrømBanken has not been paying a dividend long enough to demonstrate its resilience across economic cycles. LillestrømBanken might not be a bad business, but it doesn't show all of the characteristics we look for in a dividend stock.
Now, if you want to look closer, it would be worth checking out ourfreeresearch on LillestrømBankenmanagement tenure, salary, and performance.
Looking for more high-yielding dividend ideas? Try ourcurated list of dividend stocks with a yield above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Fundstrat’s Tom Lee: Bitcoin Is Easily Going to Reach New Highs
Fundstrat Global Advisors co-founderTom Leesaid that bitcoin (BTC) could easily reach new highs during an interview withCNBCpublished on June 18.
In his comments, Lee said that bitcoin is becoming the reserve currency of the cryptocurrency space, and noted that it has been worth over the $9,000 price level in only 4% of its history. Then, he declared:
“I think bitcoin is easily going to take out its all-time highs.”
Before making those pricepredictions, Lee also noted thatFacebook’sLibra project is a validation of mainstream interest in cryptocurrencies. He also stated that he thinks this development “completely destroys this argument that says ‘I believe in blockchain, not bitcoin.” He also expressed his idea that — while he believes libra is going to be one of the dominantstablecoins— other stablecoins will most likely survive:
“I don’t think that they are gonna drop in value because most of them are collateralized, I think the ones that are algorithmically stable just might not have the network effect.”
When asked whether banks will support libra in the future, Lee noted that the decentralization of finance — while convenient for payment processors — results in a negative return forbanks:
“One thing to keep in mind: Facebook’s annual revenue per user is probably $50 [...] that may be a little high. But an average bank generates close to $1,000 per user, so Facebook has a 20x upside to their customer model if they start doingbankingservices. [...] I can see why banks aren’t really enthusiastic about this.”
Earlier today, the head of theUnited Kingdom’scentral banksaidFacebook’s new libracryptocurrencycould have genuine use cases if it can conform to regulatory demands.
As Cointelegraphreportedat the time, Lee had claimed in May that thecryptowinter is over.
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The Kaizen Discovery (CVE:KZD) Share Price Is Down 91% So Some Shareholders Are Rather Upset
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Some stocks are best avoided. We don't wish catastrophic capital loss on anyone. Spare a thought for those who heldKaizen Discovery Inc.(CVE:KZD) for five whole years - as the share price tanked 91%. Unfortunately the share price momentum is still quite negative, with prices down 9.1% in thirty days.
While a drop like that is definitely a body blow, money isn't as important as health and happiness.
Check out our latest analysis for Kaizen Discovery
Kaizen Discovery hasn't yet reported any revenue yet, so it's as much a business idea as an actual business. This state of affairs suggests that venture capitalists won't provide funds on attractive terms. As a result, we think it's unlikely shareholders are paying much attention to current revenue, but rather speculating on growth in the years to come. It seems likely some shareholders believe that Kaizen Discovery 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 do very well over the long term, others become hyped up by promoters before eventually falling back down to earth, and going bankrupt (or being recapitalized). Some Kaizen Discovery investors have already had a taste of the bitterness stocks like this can leave in the mouth.
Our data indicates that Kaizen Discovery had CA$2,719,000 more in total liabilities than it had cash, when it last reported in March 2019. That puts it in the highest risk category, according to our analysis. But with the share price diving 38% per year, over 5 years, it's probably fair to say that some shareholders no longer believe the company will succeed. You can click on the image below to see (in greater detail) how Kaizen Discovery's cash levels have changed over time.
Of course, the truth is that it is hard to value companies without much revenue or profit. Would it bother you if insiders were selling the stock? I'd like that just about as much as I like to drink milk and fruit juice mixed together. It only takes a moment for you tocheck whether we have identified any insider sales recently.
Kaizen Discovery shareholders are down 17% 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. However, the loss over the last year isn't as bad as the 38% per annum loss investors have suffered over the last half decade. We'd need to see some sustained improvements in the key metrics before we could muster much enthusiasm. You could get a better understanding of Kaizen Discovery's growth by checking outthis more detailed historical graphof earnings, revenue and cash flow.
We will like Kaizen Discovery better if we see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on 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. |
Most Analysts Agree That This Refining Stock Is a Great Buy
Refining stocks have beenunder pressurethis year. Weaker demand, higher oil prices, and an increase in facility maintenance activities are among the many issues that have weighed on refining margins and negatively impacted sector profitability. Among the hardest hit has been independent refining giantMarathon Petroleum(NYSE: MPC). That's evident by the surprise loss of $0.09 per share it posted during the first quarter, which missed the analysts' consensus estimate by $0.27 per share.
Analysts, however, believe that the worst of the refining sector's challenges are in the past. That's why they're in near-universal agreement that Marathon's stock -- which has lost almost a third of its value in the past year -- is a buy. Overall, 17 of the 18 firms that cover the refining company now have a buy or equivalent rating on its stock. Here's why they're so bullish on what lies ahead.
Image source: Getty Images.
The main issue weighing on Marathon Petroleum's earnings during the first quarter was weaker refining margins. The company only made $11.17 per barrel during the period. That fell well short of analysts' expectations, with Credit Suisse, for example, anticipating that it would earn $13.85 per barrel during the quarter. Those weaker margins were due to the continued challenges facing the refining market, including sluggish demand and higher costs for crude oil.
However, many of the issues facing the sector seem to be fading. Marathon CEO Gary Heminger noted in the company's first-quarter earnings release that "throughout the quarter, refining fundamentals improved [and] gasoline and distillate inventories rebalanced." As a result, margins had increased to $18.80 per barrel by April. That leads Marathon's CEO to "expect positive dynamics across all three of our business segments to support growing cash flows throughout the remainder of 2019."
Analysts who follow the refining sector agree with Heminger that industry fundamentals are on the upswing. For example, Goldman Sachs, which already had Marathon on its Conviction Buy List, put out a bullish report on the refining sector earlier this month. The investment bank said that it sees the sell-off in high-quality U.S. refiners as a buying opportunity. That's because these companies should benefit from the increased flow of low-cost crude oil to the U.S. Gulf Coast as new pipelines enter service later this year. One of those pipelines is the Gray Oak system, which Marathon is building with some partners to ship oil from the Permian Basin.
That report followed a similar one in late April by Bank of America, which thought that the worst had passed for U.S. independent refiners. This outlook led the bank to upgrade several refiners while reiterating its view that Marathon Petroleum is one of its top-rated ideas in the group.
Another catalyst for Marathon and its refining peers is an upcoming change in global fuel standards, which will go into effect on Jan. 1, 2020. The rule says thatoceangoing shipping vesselsmust use fuels with lower sulfur content, which could spur demand for anextra 12 billion to 30 billion gallons of low-sulfur fuel per year. This rule change will benefit Marathon Petroleum in particular since it has a greater ability than most other refiners to produce higher-value products like low-sulfur fuel due to the complexity level of its refineries. On top of that, the company plans to spend $1.2 billion to upgrade its Galveston Bay refinery so that it can produce even higher quantities of low-sulfur fuels.
Meanwhile, Marathon should also benefit from its recent consolidation moves. The companyacquiredfellow refiner Andeavor last year, which created the largest independent refiner in the country. One of the driving factors of that merger was the expected cost savings, which should reach an annualized $600 million by the end of this year and $1.4 billion by the end of 2021. On top of that, it recentlyagreed to combineits twomaster limited partnershipsin a transaction that should reduce costs and enhance itsmidstreamgrowth prospects. Analysts at Cowen are particularly bullish on the MLP merger. They believe it "can likely unlock $2 billion [of] value net to MPC that is being discounted by the market due to the overhang of this combination and concerns around future growth."
While the past year has been challenging for refiners like Marathon, analysts believe that those issues will begin to fade over the next few months. On top of that, Marathon is not only well positioned to benefit from the new fuel standards, but its recent consolidation moves should pay some incremental dividends. This growing list of near-term catalysts leads analysts to believe that Marathon's stock has significant upside potential in the coming year, which is why nearly all of them rate it a buy.
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Matthew DiLallohas 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. |
Is H. Lundbeck A/S (CPH:LUN) As Strong As Its Balance Sheet Indicates?
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Mid-caps stocks, like H. Lundbeck A/S (CPH:LUN) with a market capitalization of ø52b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. However, generally ignored mid-caps have historically delivered better risk-adjusted returns than the two other categories of stocks. Let’s take a look at LUN’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysisinto LUN here.
Check out our latest analysis for H. Lundbeck
Over the past year, LUN has ramped up its debt from ø59m to ø507m , which accounts for long term debt. With this increase in debt, the current cash and short-term investment levels stands at ø5.0b , ready to be used for running the business. Additionally, LUN has generated cash from operations of ø4.8b in the last twelve months, leading to an operating cash to total debt ratio of 950%, signalling that LUN’s operating cash is sufficient to cover its debt.
Looking at LUN’s ø7.6b in current liabilities, it seems that the business has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.32x. The current ratio is calculated by dividing current assets by current liabilities. For Pharmaceuticals companies, this ratio is within a sensible range since there's a sufficient cash cushion without leaving too much capital idle or in low-earning investments.
With debt at 4.0% of equity, LUN may be thought of as having low leverage. This range is considered safe as LUN is not taking on too much debt obligation, which may be constraining for future growth.
LUN’s high cash coverage and low debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow. Furthermore, the company exhibits an ability to meet its near term obligations should an adverse event occur. This is only a rough assessment of financial health, and I'm sure LUN has company-specific issues impacting its capital structure decisions. You should continue to research H. Lundbeck to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for LUN’s future growth? Take a look at ourfree research report of analyst consensusfor LUN’s outlook.
2. Valuation: What is LUN 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 LUN 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. |
2019 NFL preview: Dolphins could be in for a long season
Yahoo Sports is previewing all 32 teams as we get ready for the NFL season, complete with our initial 2019 power rankings. . Tanking is a dirty word in the NFL. Teams in other sports have done it, and had success. Plenty of Major League Baseball teams have bottomed out in an attempt to build something good; the Chicago Cubs and Houston Astros stripped their rosters down and eventually won titles. The most famous NBA tanking case, the Philadelphia 76ers , haven’t reached the Finals yet, but they have improved after punting some seasons. It’s hard to find a definitive instance of NFL tanking, at least over a full season (the Tampa Bay Buccaneers did likely tank in the second half of Week 17 years ago, benching starters and blowing a lead, to ensure the No. 1 pick and Jameis Winston ). Did the Browns tank over their 1-31 stretch in 2016-17, or were they just that bad? No matter. You’ll never find an NFL team admit it’s tanking, even though they privately might believe it’s not the worst idea. Which makes the Miami Dolphins interesting. (Yahoo Sports graphics by Paul Rosales) [Join or create a 2019 Yahoo Fantasy Football league for free today] There were no shortage of stories out of Miami this offseason that claimed the Dolphins would tank this season for a high draft pick and a top quarterback in 2020. Nobody with the Dolphins ever said that publicly, but that narrative got rolling anyway. The Dolphins’ offseason plan didn’t pour cold water on the tanking idea. The only free agent the Dolphins signed who got more than $3.5 million per season was quarterback Ryan Fitzpatrick , a 36-year-old journeyman. Miami stockpiled extra picks for the 2020 draft. The Dolphins traded for Josh Rosen , the quarterback the Cardinals took 10th overall a year ago, but at the price of a second-round pick it was a fine investment. Rosen won’t stop them from taking Alabama quarterback Tua Tagovailoa first overall next year, if they wish. The Dolphins won’t use the word “tank,” which is a curse word in NFL circles. But clearly the Dolphins aren’t planning to be competitive in 2019 with new coach Brian Flores. “Everyone keeps saying [we’re] tanking and we’re going to go and be crap,” Dolphins general manager Chris Grier said in March, via the Miami Herald , when asked what his reaction would be if the Dolphins win eight games in 2019. “So I don’t know what we’ll be. If these guys go out and we have some good young players and they play well and we win eight games, we go, ‘All right, we’ve won eight games and we’ve got right now 11 or 12 picks for next year with the draft still approaching.’ Story continues “We made the change. We talked about building the foundation and building it up the right way. So that’s all it is. There’s no tanking.” Would tanking be so bad? The Dolphins understand their roster isn’t good enough to beat the Patriots in the AFC East. Quarterback rules in the NFL and, Rosen aside, Miami doesn’t have one and hasn’t since Dan Marino retired. Is it better to go 6-10 and not have a shot at Tagovailoa (or Oregon’s Justin Herbert, Georgia’s Jake Fromm or whoever emerges as the No. 1 2020 prospect) or go 1-15 and find a quarterback to get the franchise out of the abyss? Even if the Dolphins are trying, they won’t be very good. The offensive line is bad, the receiving corps is thin and the defense lacks much top-end talent, defensive backs Minkah Fitzpatrick and Xavien Howard excepted. Whether the Dolphins start Fitzpatrick or Rosen, neither can save this team. Hopefully Flores gets patience. He is widely respected, perhaps someone who can break the mostly disappointing string of Bill Belichick assistants who become head coaches . Flores was a good defensive coordinator — his Patriots defense shutting down the Los Angeles Rams in Super Bowl LIII was a masterpiece — and players appreciate his leadership style. He seemed to be a great hire. But Flores (who got a five-year contract, whatever that means) will need time. A lot of it. That seems to be part of the franchise’s plan. New Miami Dolphins coach Brian Flores could have a long first season. (Getty Images) It’s hard to get too excited. Ryan Fitzpatrick was the biggest signing, and he might not start. The Dolphins traded pass rusher Robert Quinn and quarterback Ryan Tannehill . The draft was solid; first-round pick Christian Wilkins , a defensive tackle from Clemson, should be a keeper. Sending a late second-round pick for Josh Rosen was a smart gamble. The Dolphins seem to have a long-term plan, though it won’t help them win games now. Grade: D The NFL is a passing league and the Dolphins’ strength is their secondary. Cornerback Xavien Howard signed a five-year, $72.3 million deal this offseason. Minkah Fitzpatrick , last year’s first-round pick, looks like a future star and his versatility is a huge asset. Reshad Jones is aging and had a weird 2018 in which he once refused to report back into a game because he was being platooned, but he still has the capability of being one of the NFL’s best strong safeties. Bobby McCain is a solid slot cornerback (who can also play outside and got reps at free safety in OTAs) and T.J. McDonald has started 75 games at safety in the NFL. Miami should cover well. How much time do you have? While there are plenty of issues, the offensive line stands out. The Dolphins’ line wasn’t good last year, then let right tackle Ja’Wuan James leave for Denver in free agency. Laremy Tunsil is a promising left tackle, and the rest of the line is mostly journeymen or unproven commodities. The Dolphins’ only offensive line pick in the first five rounds of the draft was third-round guard Michael Deiter . Fixing the line will have to wait until 2020. Josh Rosen is an interesting case. Many draft experts liked him coming out of UCLA . Then he struggled mightily as a rookie. Was that due to a Cardinals coaching staff in over its head? Or was Rosen overrated before the 2018 draft? The Dolphins have maintained that Rosen won’t be automatically given the starting job over Ryan Fitzpatrick. That makes no sense for a rebuilding team, but that’s their story. "If [Fitzpatrick] wins the competition, absolutely I'm good with that," coach Brian Flores said, via NFL.com . "I think that would be what's best for the team and what's best for the Miami Dolphins." Fitzpatrick can get hot for stretches, as he did early last season with the Buccaneers. It would be strange for a team that has no realistic expectation of winning in 2019 to start 36-year-old Fitzpatrick over 22-year-old Rosen, but we’ll see. The Dolphins need to figure out if Rosen is a potential long-term starter, or if he was drafted too high last year. Since Adam Gase ignored running back Kenyan Drake for three years, we’ll give Drake some shine here. Drake has a 4.7-yard career average but has never had more than 133 carries in a season. He has never missed a game. Gase, despite fielding an offense that was never as good as hoped under his watch , never truly featured Drake. A new coaching staff should want to see what Drake can do in a bigger role. What’s the harm in finding out? Drake is very good as a receiver, with 53 catches last season, and efficient as a runner. It’s time to see what Drake can do as a featured back. From Yahoo’s Scott Pianowski: “It’s always a leap of faith to spend premium picks on running backs from losing teams, but Kenyan Drake might prove an exception, a gem from the rubble. He’s always had chops as a pass-catcher (a critical skill if your team isn’t a contender), and the new coaching staff — notably OC Chad O’Shea — comes from New England, an organization that prioritized throwing to running backs. It’s a cheat code, why not use it? “Drake wasn’t a bell cow at Alabama and the Adam Gase Dolphins were always reluctant to use him as such. Drake’s body type (6-1, 211 pounds) also seems a poor fit for that role. But that doesn’t have to be a kill shot; if the Dolphins will merely make a semi-commitment to Drake, a fun season can follow. And the depth chart behind him is wafer-thin. “Drake averages a zesty 4.7 YPC for his career, and last year he gobbled up nine yards per reception. He’s always had the ability to score long touchdowns; his average score as a pro covers 34 yards. In fact, Drake shockingly has more 40-plus touchdowns at a pro (six) then he does from the 10-yard line and in (five). Enjoy a notable Drake discount in early Yahoo drafts (ADP around 80); he’s going two rounds higher in high-stakes national contests.” [ Yahoo fantasy preview: Miami Dolphins ] The Dolphins were an astonishing 7-1 in close games, ones decided by eight points or less. Of course, for the 7-9 Dolphins, that means they were 0-8 in games decided by more than one possession. The Pythagorean expectation for the Dolphins, which estimates how many games a team should have won based on points scored and allowed, said the Dolphins profiled as a 5-11 team last season. So Miami was lucky last season to get to seven wins. And the roster should be worse this year. CAN A NEW COACHING STAFF REVIVE DRAFT DISAPPOINTMENTS? The Dolphins turned some heads by keeping around perennial disappointment DeVante Parker , a receiver who was the 14th pick of the 2015 draft. Defensive end Charles Harris , Miami’s 2017 first-round pick, hasn’t lived up to his draft status either. Tight end Mike Gesicki , a 2018 second-round pick, didn’t show much as a rookie. It’s time to wipe the slate clean. The new staff has offered fresh starts for everyone, including those high draft picks. Brian Flores has praised Harris (three sacks in 27 games) in particular, and seems ready to give everyone a fair shot. If the Dolphins can see progress from a few of the younger players who haven’t shown much yet, it will be a big benefit in their rebuild. It’s not fun for Dolphins fans, but the best outcome this season is finishing with the worst record in the NFL. Miami doesn’t want to be 0-16. Everyone remembers those teams forever. Nobody remembers the 1-15 teams. Something better than 0-16 but bad enough to get the first overall pick is the sweet spot. Miami needs a franchise quarterback, just to provide hope. The easiest way to get one is picking first overall in a QB-heavy draft. Everyone thought the Jets were tanking in 2017, and they won five games. They then had to pay a steep price to trade up to No. 3 in the draft to get Sam Darnold, and still needed the Giants to screw up and pass on Darnold . You can strip down a roster but you can’t tell a group of professionals to lose on purpose. If the Dolphins win just enough games to knock them out of contention for a quarterback they love, and Josh Rosen isn’t the answer, then it’s another year of spinning wheels (and next year we’ll be talking about them tanking for Clemson quarterback Trevor Lawrence). The Dolphins could end up as the worst team in the NFL. They’ll spend this season finding out if Josh Rosen is the answer at quarterback, seeing if other young players emerge and hopefully feeling like Brian Flores is the right coach no matter the final record. It’s a key year for Flores to set a foundation for his program, and he’s likely going to have to endure a long rookie season as head coach. The best bet is that the Dolphins finish with a bad enough record to take one of the top quarterback prospects in 2020, and Rosen will get bumped down the depth chart by a new rookie quarterback yet again. This season won’t be pretty, but hopefully for Dolphins fans it’s short-term pain for long-awaited progress. 32. Arizona Cardinals – – – – – – – Frank Schwab is a writer for Yahoo Sports. Have a tip? Email him at shutdown.corner@yahoo.com or follow him on Twitter! Follow @YahooSchwab More from Yahoo Sports: CP3, Harden relationship deemed ‘unsalvageable’ From mid-major to NBA draft: Morant's historic rise Coach K on Zion’s NBA potential: 'He’s a gift from God' Why D-Wade supported son at Miami Pride View comments |
3 Marijuana Stocks That Are Breaking the Mold
Marijuana isn't just another growth industry. It has the potential to be a once-in-a-generation growth opportunity for patient investors who have a keen eye for this fast-paced industry. Between 2018 and 2030, various Wall Street firms have called for a fourfold to sixfold increase in global sales, which should be more than enough to create some big-time winners in this space.
The big question, as always, is: What marijuana stocks to buy? Typically, investors have gravitated toward growers, since they'll most directly benefit from an uptick in medical and recreational demand. And among the many growers, it's pot stocks likeCanopy Growth,Aurora Cannabis, andCronos Groupthat garner the most attention. These also happen to be thethree largest cannabis stocks by market cap, so this shouldn't be that big a surprise.
But the thing about most growers is that it's hard to differentiate between them. Sure, some may have more provincial supply deals than others -- or, in Aurora's case, be able to outproduce every other weed grower. However, there isn't a truly unique factor that allows them to stand out.
That's not the case for the following three marijuana stocks, which are breaking the mold and doing things a bit differently.
Image source: Getty Images.
Ontario-basedCannTrust Holdings(NYSE: CTST)is angling to be a top-five and perhaps even top-three grower, but that'll depend on just how much cannabis is produced from the up to 200 acres of outdoor growing space it plans to buy and develop. The company is currently guiding for200,000 kilos to 300,000 kilos per yearwhen at full operation. But, as noted, it's not CannTrust's sheer output that makes it unique. Rather, it's the company's growing methods that allow it to stand out.
At CannTrust's flagship Niagara campus (840,000 square feet when complete), as well as its much smaller Vaughan facility (60,000 square feet of growing space), the company isrelying on hydroponic growing methods. Hydroponics involves growing plants in a nutrient-rich water solvent as opposed to soil. It's not necessarily a higher-yield form of growing, but when there's nearby access to cheap sources of water and electricity, which Niagara certainly has, it can lead to low-cost production. In CannTrust's case, its combined 900,000 square feet of cultivation devoted to hydroponics should produce 100,000 kilos a year, or 111 grams per square foot, which looks to be modestly above the industry average. So it's really the best of both worlds.
Then there's the company'soutdoor-grown cannabis. Outdoor marijuana isn't often going to be of exceptional quality, but it does serve an intriguing purpose for CannTrust. Although the company didn't mention a specific figure, it plans to utilize a good portion of this outdoor grow for extraction purposes. The extracts can be used to make edibles, concentrates, infused beverages, topicals, and a whole line of derivative products that'll be legalized by no later than mid-October in Canada. These derivatives carry much juicier margins than traditional dried flower, making CannTrust a good bet to be among the top producers of alternative cannabis consumption products.
Image source: Getty Images.
Depending on how things shake out,OrganiGram Holdings(NASDAQ: OGI)will likely slide in right around No. 10 on aggregate annual production at 113,000 kilos a year and might be in the top dozen in terms of retailers once joint ventures and royalty growers are factored into the equation. But what allows OrganiGram to break the mold as a grower isits geographic location, as well as its ability to maximize its cultivation space.
OrganiGram has just a single growing facility in its portfolio, and it's located in Moncton, New Brunswick. Of the major growers (i.e., those with the ability to produce at least 100,000 kilos a year), only one is headquartered in Canada's Atlantic provinces -- and that's OrganiGram. Even though the Atlantic provinces (New Brunswick, Prince Edward Island, Nova Scotia, and Newfoundland and Labrador) are less populated than, say, Quebec, British Columbia, or Ontario, initial surveys in Canada have shown that these Atlantic provinces have the highest percentage of adult users throughout the country. That bodes well for OrganiGram's geographic location, although it should be noted that the companyhas supply deals with all of Canada's provinces.
There's also OrganiGram's Moncton facility, which is expected to produce the aforementioned113,000 kilos a yearbut only needs around 490,000 square feet to do so. This incredible 230-plus-gram-per-square-foot yield is one of the highest in the industry. The secret for OrganiGram is that it's using three tiers of growing levels at its flagship campus, thereby maximizing its cultivation space and significantly boosting yield. Presumably, this should allow the company to deliver some of the best margins among growers.
Image source: Getty Images.
A third and final marijuana stock that's breaking the mold and redefining what it is to be a grower isFlowr Corp.(NASDAQOTH: FLWPF). Unlike CannTrust and OrganiGram, Flowr isn't expected to be a major grower. In fact, production estimates at its flagship Kelowna campus in British Columbia may only come in around 50,000 kilos, not including additional plans for outdoor cultivation. What makes Flowr so special is its product and growing efficiency.
Whereas pretty much every pot grower appears intent on producing as much as possible, Flowr haschosen quality over quantity. When complete, the company's Kelowna campus will focus on ultra-premium cannabis strains, which should command a superior per-gram price point and face very little competition (thus, no worries of premium cannabis oversupply). In the latest round of earnings reports, Flowr was about the only cannabis stock to see itsdried marijuana flower price rise.
It's also worth mentioning that Flowr's target audience is a more affluent consumer. More well-to-do cannabis buyers are less likely to be fazed by economic fluctuations, which should lead to steadier cash flow for the company.
In terms of efficiency, the only marijuana stock producing at a higher rate per square foot than OrganiGram is Flowr at300 grams per square foot. Flowr's use of genetics and its partnership withScotts Miracle-Grosubsidiary Hawthorne Gardening may further expand this production to as high as 450 grams per square foot. That makes Flowr something of a Mighty Mouse among cannabis growers.
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Sean Williamsowns shares of CannTrust Holdings Inc. The Motley Fool recommends CannTrust Holdings Inc and OrganiGram Holdings. The Motley Fool has adisclosure policy. |
GE's Jet Engine Business Continues Its Dominant Run
WhileGeneral Electric(NYSE: GE)has struggled mightily over the past two years, its jet engine business has been asteady source of strength. Last year, GE Aviation surpassed the company's troubled power segment to become the conglomerate's largest division, with annual revenue of more than $30 billion and an enviable 21.2% operating margin.
GE Aviation has been reporting strong revenue growth in recent years, due to the rapid growth of commercial aviation and the company's dominant market share. (GE and its CFM joint venture withSafran(NASDAQOTH: SAFRY)account for about two-thirds of the commercial jet engines in service around the world today.)
At this week's Paris Air Show, GE Aviation paved the way for its strong growth to continue, logging numerous engine orders -- including one huge victory.
CFM has an exclusive contract for its LEAP engines to powerBoeing's(NYSE: BA)737 MAX family jets. That exclusivity gives CFM a big share of the narrow-body jet engine market by default. However, the LEAP-1A engine is also an option forAirbus'(NASDAQOTH: EADSY)popular A320neo family of jets, competing with a geared turbofan (GTF) offering fromUnited Technologiessubsidiary Pratt & Whitney.
While Pratt & Whitney's engine is slightly more fuel-efficient than the LEAP-1A, CFM has still managed to win a majority of the Airbus business. The GTF engine has suffereda string of reliability issues, reducing its attractiveness.
The LEAP-1A is the most popular engine choice for the A320neo family of jets. Image source: Airbus.
As a result, planes equipped with LEAP engines have a 6% higher utilization rate than those with the Pratt & Whitney GTF, according to GE. Relatively small discrepancies in utilization can lead to huge differences in the amount of revenue an aircraft generates, so this is a big deal.
Indeed, reliability issues affecting its fleet of GTF-powered A320neos led Indian budget airline IndiGo -- Airbus' top customer for the A320neo family -- to pick the LEAP engine for most of its remaining deliveries. On Monday, GE revealed that IndiGo had selected the LEAP-1A to power 280 Airbus A320neo family jets it has on order. This was the largest jet engine order in history, according to GE. Including spare engines and long-term service agreements, the contract is valued at more than $20 billion at list price.
Just a day later, CFM finalized a deal to power 100 A321neos for AirAsia. The deal included expanded 20-year service contracts covering more than 800 LEAP engines. The total list price value: $23.1 billion, according to Safran -- beating out the IndiGo agreement to become the most valuable engine order in history.
In the first two days of the Paris Air Show, GE and Safran also reported four other LEAP engine selections from airlines and aircraft leasing companies that have ordered A320neo family jets. These agreements, covering more than 100 aircraft, have a combined list price value of more than $3.5 billion.
AirAsia placed a record-setting order for jet engines and related services on Tuesday. Image source: Safran.
Like the LEAP-1A on the A320neo, GE's most important wide-body jet engine -- the GEnx -- faces competition for powering Boeing 787 Dreamliners, in this case, fromRolls-Royce. However, the Rolls-Royce Trent 1000 engines have sufferedeven greater reliability problemsthan the Pratt & Whitney GTF engines for the A320neo family.
Thus, it was no surprise that when Korean Air struck deals at the Paris Air Show toadd 30 more Dreamliners to its fleet, the carrier opted to stick with GE engines.
GE also won an important "conquest" late last month, as Air New Zealand selected the GEnx for a new order of eight 787-10s, after selecting the Rolls-Royce engine for its first 14 Dreamliners. The carrier has options to increase its latest Dreamliner order to as many as 20 aircraft, so the benefit to GE of winning Air New Zealand's business could grow in the future.
In an analyst briefing at the Paris Air Show, GE executives noted that the GEnx has a 63% win rate on the 787 Dreamliner. If anything, it looks like that percentage will head higher in the years ahead.
GE Aviation gets just 30% of its revenue from sales of engines for commercial aircraft. It gets a much larger portion of its revenue -- approximately 45% -- and an even higher percentage of its earnings from after-market services. (The other quarter of GE Aviation's revenue comes from military contracts and other lines of business.)
Thus, by winning big orders for GE and CFM engines now, GE Aviation is setting the stage for continued long-term revenue and earnings growth. An engine ordered today will likely still be generating service revenue for GE two decades from now.
General Electric still has big problems to sort out in its power and renewables divisions and its finance unit. It also has to cut costs at its corporate headquarters. Even GE Aviation has some challenges to work through -- primarily the need to redesign a part for its GE9X engine to address premature wear. (This setback has delayed the first test flight of Boeing's 777X jet.)
Fortunately, GE appears to be making steady progress toward fixing the underperforming parts of its business. At the same time, robust order activity means that GE Aviation is on track to keep posting strong revenue and earnings growth over the next decade.
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Adam Levine-Weinbergowns shares of General Electric. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy. |
Fossil Focuses on Wearables Growth, Traditional Watches Slip
Amid declining sales of traditional watches,Fossil Group, Inc.FOSL is focusing on expanding its wearables category. Additionally, the company is focused on bolstering e-commerce and enhancing efficiencies through the New World Fossil Plan. Let’s take a closer look.Strong Wearables Business is an UpsideWith an expanding base of tech savvy consumers, Fossil’s wearables business is gaining traction. Notably, connected watch sales contributed 17% to total watch sales in the first quarter of 2019. Management is committed toward expanding the wearables business. To this end, partnerships with Qualcomm and Google as well as addition of new brands to smartwatch line-up are likely to enrich the company’s portfolio. The company is launching a new smartwatch at a competitive price for the first time. The product will include Qualcomm Snapdragon Wear 3100 Platform and the redesigned Google Wear operating system. Also, the company teamed with Citizen Watch Company to boost growth in the hybrid smartwatch category.Well, the wearables market provides Fossil the opportunity to combine fashion and technology as well as introduce exciting products. This enables the company to cater to consumers’ inclination toward tech-enabled advanced connected gears.Other Focus Areas for GrowthFossil is making several investments to improve digital marketing and drive online sales in the website as well as other online wholesale partners. In fact, such dedicated endeavors in the e-commerce space yielded favorable results during the first quarter of 2019. During the quarter, global direct e-commerce sales increased double digits yet again. Roughly 60% of Fossil brand’s global sales are in the direct network, with a rising e-commerce penetration. The e-commerce platform is also an important sales channel for wearables.Additionally, Fossil is on track with the New World Fossil (“NWF) plan that was initiated in 2016. The program aims to transform the company, fuel efficiencies, improve margins, better manage revenues and enhance the overall operating structure of the business to drive profits. The company intends to achieve the targets and simultaneously enrich customers’ experience amid a difficult retail landscape.The company has already initiated the second phase of the transformation plan. It now focuses on prioritizing consumer market and channel opportunities, optimizing revenues as well as delivering gross margin and productivity savings. Notably, the NWF plan enabled the company to reduce expenses and boost gross margin in the first quarter of 2019. On the back of this initiative, along with other strategic plans, the company expects to achieve run-rate savings of $200 million by the end of 2019. Also, it targets double-digit operating margin over the long term.Soft Traditional Watches & Currency HeadwindsFossil is witnessing soft sales in traditional watches, thanks to increased competition and rising demand for the wearables. During the first quarter, the company’s watch sales dropped 15%, due to sluggishness in the traditional watch categories along with negative impacts from business exits. Further, sales of leathers and jewelry have been persistently weak in the past few quarters due to soft demand. Well, these trends have taken a toll on the top line, which has declined year over year for more than two years.Moreover, the company is facing adverse impacts stemming from currency headwinds. Currency fluctuations are expected to drag net sales by 2% and 1.5% during the second quarter and 2019, respectively.
Such headwinds have weighed upon the company’s shares, which have plummeted 26.3% in the past three months compared with the industry’s decline of 19.2%.Nevertheless, we expect this Zacks Rank #3 (Hold) stock to tide over the aforementioned hurdles on the back of advancements in the wearables arena as well as through transformation efforts under the NWF plan.Looking for Retail Stocks? Check TheseChildren's Place PLCE, with long-term earnings per shae growth rate of 8%, currently sports a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.The TJX Companies TJX, with a Zacks Rank #2 (Buy), has long-term growth rate of 10.9%.Dollar General DG has long-term growth rate of 10.9% and a Zacks Rank #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 reportFossil Group, Inc. (FOSL) : Free Stock Analysis ReportChildren's Place, Inc. (The) (PLCE) : Free Stock Analysis ReportDollar General Corporation (DG) : Free Stock Analysis ReportThe TJX Companies, Inc. (TJX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
What's in Store for Methode Electronics' (MEI) Q4 Earnings?
Methode ElectronicsMEI is set to report fourth-quarter fiscal 2019 results on Jun 20.We note that, on average, the company has delivered a positive earnings surprise of 22.5% in the trailing four quarters. In the last reported quarter, Methode Electronics delivered positive earnings surprise of 36.7%.Earnings increased 12.2% on a year-over-year basis to 83 cents per share, primarily driven by 8.3% growth in revenues, which totaled $246.9 million.Methode Electronics is expected to suffer from lower passenger car demand and production in Europe and Asia in fourth-quarter fiscal 2019.Europe’s updated emission testing standards are slowing down production of passenger cars, which is hurting Methode Electronics’ growth in the region.Asia is negatively impacted by the ongoing U.S.-China trade tussle and a slowing China economy. Lower prices are also expected to negatively impact top-line growth in the to-be reported quarter.Moreover, production rate cut by notable OEMs is expected to hurt growth in North America.
Methode Electronics, Inc. Price and EPS Surprise
Methode Electronics, Inc. price-eps-surprise | Methode Electronics, Inc. Quote
Nevertheless, strong demand for advanced sensor technologies (magnetoelastic sensors) is a key catalyst. Further, Methode Electronics’ Industrial segment is expected to benefit from Grakon’s robust performance in the to-be-reported quarter.The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $277.4 million, indicating growth of 11.4% from the figure reported in the year-ago quarter. The consensus mark for the bottom line is 71 cents, unchanged over the past 30 days.What Our Model IndicatesAccording to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.Methode Electronics has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.Stocks to ConsiderHere are a couple of stocks you may want to consider, as our proven model shows that these have the right combination of elements to post an earnings beat.OSI Systems OSIS has an Earnings ESP of +2.54% and a Zacks Rank #1. You can seethe complete list of today’s Zacks #1 Rank stocks here.MSCI MSCI has an Earnings ESP of +10% and a Zacks Rank #2.Alteryx AYX has an Earnings ESP of +13.66% and a Zacks Rank #2.
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.
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 reportMSCI Inc (MSCI) : Free Stock Analysis ReportOSI Systems, Inc. (OSIS) : Free Stock Analysis ReportMethode Electronics, Inc. (MEI) : Free Stock Analysis ReportAlteryx, Inc. (AYX) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Should You Be Excited About K92 Mining Inc.'s (CVE:KNT) 54% Return On Equity?
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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). To keep the lesson grounded in practicality, we'll use ROE to better understand K92 Mining Inc. (CVE:KNT).
Our data showsK92 Mining has a return on equity of 54%for the last year. That means that for every CA$1 worth of shareholders' equity, it generated CA$0.54 in profit.
Check out our latest analysis for K92 Mining
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for K92 Mining:
54% = US$41m ÷ US$76m (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. The easiest way to calculate shareholders' equity is to subtract the company's total liabilities from the total assets.
ROE looks at the amount a company earns relative to the money it has kept within the business. 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, as a general rule,a high ROE is a good thing. 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. Pleasingly, K92 Mining has a superior ROE than the average (8.4%) company in the Metals and Mining industry.
That's what I like to see. In my book, a high ROE almost always warrants a closer look. One data point to check is ifinsiders have bought shares recently.
Virtually all companies need money to invest in the business, to grow profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
K92 Mining has a debt to equity ratio of just 0.066, which is very low. The combination of modest debt and a very impressive ROE does suggest that the business is high quality. Careful use of debt to boost returns is often very good for shareholders. However, it could reduce the company's ability to take advantage of future opportunities.
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. In my book the highest quality companies have high return on equity, despite low debt. If two companies have the same ROE, then I would generally prefer the one with less debt.
But when a business is high quality, the market often bids it up to a price that reflects this. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. Check the past profit growth by K92 Mining by looking at thisvisualization of 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. |
Bank of England’s Mark Carney sees potential in Libra’s “free and instant” payments but says regulators will not give it an “open door”
The Bank of England governor Mark Carney says he is open-minded about Facebook's Libra token but warned mass adoption would force it "to be subject to the highest standards of regulation," theFinancial Times writes.
Carney notes a double-edged sword, saying he sees the potential utility of Facebook's global digital currency, especially in countries where moving money is expensive and slow, including the US, as it could provide people with a “free and instant” payments solution. However, should Libra subsequently become successful, only the toughest regulation would be appropriate, he said, with a particular focus on preventing money laundering, hacks, and enforcing user privacy.
Going forward, the BoE will pay close attention to Facebook’s proposal and will coordinate efforts with the G7, the Bank of International Settlements, the Financial Stability Board and the IMF. Carney concluded Libra would not launch with an “open door” from regulators. |
5 Top European Stocks to Buy on ECB's Hints of More Stimulus
The Euro zone indicated on Jun 18 that it could restart money printing to boost its ailing economy even though the ECB ended QE in 2018. The stimulus moves could be cutting rates even further and other expansionary measures. Draghi ruled out concerns that the ECB was short of means for any new stimulus measures.
Already, the ECB delayed the timing of its first rate hike in nearly eight years to the second half of 2020 at the earliest, during its June meeting, thanks to global growth concerns and tepid inflation outlook.
ECB president Draghi hinted that economic indicators point to persistent softness. Risks are skewed toward the downside. The rising threat of protectionism, possible US sanctions on EU, Brexit issuers, US-China trade war and vulnerabilities in emerging markets are leading the ECB to consider a more dovish approach.
The trade war-related risks have taken a toll on exports and in particular manufacturing. Inflation is also under control, with the annual figure of 1.2% far below the bank's target of about 2%.
If the ECB rolls out more stimulus, the following European stocks will likely gain in the coming days.
Unilever NV UN
Unilever is one of the world's largest consumer product companies. These firms produce and market a wide range of food, home and personal care products. Their leading brands include Dove, Lipton, Magnum, Omo and Rama. The stock has a Zacks Rank #2 (Buy). It comes from a top-ranked Zacks Industry (top 31%) and has a top VGM Score of A.
Logitech International S.A. LOGI
This Zacks Rank #2 company designs, manufactures and markets innovative peripherals that provide people with easy access to the digital world. The company's product portfolio includes Internet video cameras, mice and trackballs, keyboards, audio and telephony products, interactive gaming devices and 3D controllers. It hails from a top-ranked Zacks Industry (top 25%) and has a VGM Score of B.
GW Pharmaceuticals Plc GWPH
U.K.-based GW Pharmaceuticals is a biopharmaceutical company focuses on discovering, developing and commercializing therapeutics from its proprietary cannabinoid product platform in a broad range of disease areas. It belongs to a top-ranked Zacks Industry (top 33%) and has a Momentum Score of A. The stock has a Zacks Rank #2.
NXP Semiconductors N.V. NXPI
It is a global semiconductor company with a Zacks Rank #2. The stock has a VGM Score of B. It comes from a top-ranked Zacks sector (top 50%).
Ingersoll-Rand Plc (Ireland) IR
The Zacks Rank #2 Ingersoll-Rand is a diversified industrial manufacturer with market-leading brands serving customers in the global commercial, industrial and residential markets. The stock has a top Momentum Score of A.
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 reportLogitech International S.A. (LOGI) : Free Stock Analysis ReportUnilever NV (UN) : Free Stock Analysis ReportIngersoll-Rand PLC (Ireland) (IR) : Free Stock Analysis ReportGW Pharmaceuticals PLC (GWPH) : Free Stock Analysis ReportNXP Semiconductors N.V. (NXPI) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Did Changing Sentiment Drive Kalytera Therapeutics's (CVE:KLY) Share Price Down A Painful 75%?
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Even the best investor on earth makes unsuccessful investments. But it would be foolish to simply accept every extremely large loss as an inevitable part of the game. So we hope that those who heldKalytera Therapeutics, Inc.(CVE:KLY) during the last year don't lose the lesson, in addition to the 75% hit to the value of their shares. A loss like this is a stark reminder that portfolio diversification is important. Kalytera Therapeutics may have better days ahead, of course; we've only looked at a one year period. Shareholders have had an even rougher run lately, with the share price down 47% in the last 90 days. We note that the company has reported results fairly recently; and the market is hardly delighted. You can check out the latest numbers inour company report.
View our latest analysis for Kalytera Therapeutics
In his essayThe Superinvestors of Graham-and-DoddsvilleWarren Buffett described how share prices do not always rationally reflect the value of a business. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
Kalytera Therapeutics managed to increase earnings per share from a loss to a profit, over the last 12 months. We're surprised that the share price is lower given that improvement. If the improved profitability is a sign of things to come, then right now may prove the perfect time to pop this stock on your watchlist.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
We know that Kalytera Therapeutics has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Kalytera Therapeutics willgrow revenue in the future.
Given that the market gained 1.4% in the last year, Kalytera Therapeutics shareholders might be miffed that they lost 75%. 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 47%, 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.
For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Zenabis Chief Growing Officer Outlines Potential in Exclusive Interview--CFN Media
Seattle, Washington--(Newsfile Corp. - June 19, 2019) - CFN Media Group ("CFN Media"), the leading agency and financial media network dedicated to the North American cannabis industry, announces publication of an article covering an exclusive interview with Leo Benne, Chief Growing Officer ofZenabis Global Inc.(TSX: ZENA).
Canada's cannabis industry is projected to reach C$22.6 billion over the coming years, according to Deloitte, driven by the legalization of medical and adult-use cannabis. With concentrates and edibles anticipated later this year, licensed producers could reach new consumers that aren't interested in smoking cannabis. Investors may want to take a closer look at experienced LPs that are well-positioned in the market.
CFN Media recently spoke with Mr. Leo Benne, Chief Growing Officer ofZenabis Global Inc.(TSX: ZENA), to discuss his unique credentials and the company's stronggrowthsince becoming a publiclytradedcompany earlier this year.
CFN:Can you provide a brief overview of the company and its unique history for investors new to the company's story? What sets the company apart from competitors in the space?
Benne:Zenabisis an amalgamation of SunPharm, a startup cannabis company, andBevo, a 30-year family owned greenhouse propagation company. This combination of acquired knowledge and expertise makes Zenabis a unique partnership.
Click here to receive an investor deck and corporate updates
CFN:Zenabis has an exceptional management team with a diverse background. Mr. Leo Benne, you in particular, bring a significant horticulture knowledge and expertise to the table. Can you describe your background a bit?
Benne:I studied modern horticultural methods in the Netherlands and worked several years in greenhouses honing skills in vegetable propagation. Since I started Bevo in 1993, the company has become one of the most prolific propagators in the world by harnessing new technologies. I have enjoyed applying my years of experience propagating hundreds of different crop types at an industrial scale to the nascent cannabis industry.
CFN:Zenabis recently reported its first quarter financial results. Can you discuss the company's progress over the past quarter and any upcoming catalysts that investors should watch for over the coming months?
Benne:We have been hitting our milestones at all facilities in terms of both construction plans and production goals. Many more production rooms are coming online in the next few months, increasing our capacity to meet consumer demand. We have also seen continuous improvement in production yields and processes in Atholville. Theteamis looking forward to the first crop being planted in Langley early in the 3rd quarter and harvested in the 4th quarter.
Click here to receive an investor deck and corporate updates
About Zenabis
Zenabisis a significant Canadian licensed cannabis cultivator of medical and recreational cannabis, and a propagator and cultivator of floral and vegetable products. Zenabis employs staff coast-to-coast, across facilities in Atholville, New Brunswick; Delta, Aldergrove, Pitt Meadows and Langley, British Columbia; and Stellarton, Nova Scotia. In addition to gaining technologically advanced knowledge of plant propagation, the recent addition of state-of-the-art greenhouses in Langley, Pitt Meadows and Aldergrove provides Zenabis with 3.5 million square feet of facility space that can, upon full conversion, be dedicated to cannabis production.
If all facility space at Zenabis Atholville, Zenabis Stellarton, Zenabis Delta and Zenabis Langley is fully converted and dedicated to production, Zenabis will own, and have access to, 660,000 square feet of high quality indoor cannabis production space, as well as 2.1 million square feet of greenhouse cannabis production space at its Langley facility, with this production strategically positioned on Canada's coasts. Zenabis expects these facilities to have an annual design capacity of 131,300 kg of dried cannabis by the third quarter of 2019. These facilities, if fully built out and converted for cannabis production, would have an annual design capacity to yield approximately 479,300 kg of dried cannabis annually, for both national and international market distribution. An additional 700,000 square feet of greenhouse space will be used to continue the existing propagation business and produce industrial hemp, and can be converted to cannabis production at such a time that is beneficial to the strategic position of the Company. The Zenabis brand name is used in the cannabis medical market, while the Namaste and Blazery brand names are used in the cannabis adult-use recreational market, and the True Büch brand name is used for Zenabis' kombucha products.
Click here to receive an investor deck and corporate updates
For more information on the company:www.zenabis.com
Click here to read the full article:
https://www.cannabisfn.com/zenabis-chief-growing-officer-outlines-potential-in-exclusive-interview/
Company Contact:
Investor Relations: E-mail:invest@zenabis.com, Phone: 1-844-523-8679
About CFN Media
For Visitors and Viewers
CFN Media's Cannabis Financial Network (CannabisFN.com) is the destination for savvy investors and business people profiting from the worldwide cannabis industry. Viewers will see breaking news, exclusive content and original programming involving the people, companies and investments shaping the industry.
For Cannabis Businesses & Companies
CFN Media is a leading agency and financial media network dedicated to the cannabis industry. We help private, pre-public and public cannabis companies in the US and Canada attract capital, investors and media attention.
Our powerful digital media and distribution platform conveys a company's message and value proposition directly to accredited and retail investors and national media active in the North American cannabis markets.
Since 2013, CFN Media has enabled the world's preeminent cannabis companies to thrive in the capital and public markets.
Learn how to become a CFN Media client company, brand or entrepreneur:http://www.cannabisfn.com/featuredcompany
Disclaimer
The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation:http://www.cannabisfn.com/legal-disclaimer/
Contact
CFN MediaFrank Lane206-369-7050flane@cannabisfn.com
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45715 |
Big Four Auditing Firm PwC Releases Cryptocurrency Auditing Software
Big Four auditing firmPwCannounced the release of acryptocurrencyauditing software solution in a press releasepublishedon June 19.
Per the release, the tool newly added to PwC’s Halo auditing suite can be used to “provide assurance services for entities engaging in cryptocurrency transactions.” The firm claims that, with the new addition, the Halo suite permits PwC to provide independent evidence of private-public key pairing (to establish crypto asset ownership), and gather information about transactions and balances fromblockchains.
PwC further notes that it is already employing the new tool to support audits of clients involved with cryptocurrencies, and assisting companies for which the firm is not the auditor in implementing processes and controls necessary to obtain assurance reports from their auditors. Still, the company notes that the tool is not without its limitations:
“Our ability to audit an entity engaged in cryptocurrency activities is very much influenced by our client’s control environment, and at this stage, by the breadth of tokens supported by our Halo software. These considerations will be key when determining whether we are comfortable to accept an audit engagement.”
Lastly, it is specified in the announcement that the new addition to the Halo suite supports bitcoin (BTC), bitcoin cash (BCH), bitcoin gold (BTG), bitcoin diamond (BCD), litecoin (LTC), ether (ETH),OAX(ERC20 token) andXRP.
As Cointelegraphreportedat the time, PwC was the top recruiter for blockchain-related jobs on recruitment platform Indeed at the end of March.
Also at the end of March, PwC competitor and big four auditing firm Deloitteannouncedthat it was testing data management on the Ethereum blockchain with three Irish banks.
• BTC, ETH, XRP, LTC, BCH, EOS, BNB, BSV, XLM, ADA: Price Analysis 19/06
• Bitcoin Holds $9,100 Support While Top 20 Coins Trade Sideways
• BTC, ETH, XRP, LTC, BCH, EOS, BNB, BSV, XLM, ADA: Price Analysis 17/06
• BTC, ETH, XRP, LTC, BCH, EOS, BNB, BSV, XLM, ADA: Price Analysis 12/06 |
DTC Application Update: EastWest Bioscience Passes Due Diligence for FINRA Form 15c-211
VANCOUVER, BC / ACCESSWIRE / June 19, 2019 /EastWest Bioscience (the "Company" or "EastWest") (EAST.V) announces that, further to its News Release on May 7th 2019, it has passed third party due diligence pursuant to FINRA Rule 15c2‐11 ("Form 211"), as part of the Company's DTC application. Form 211 clearance is important as it requires the Directors and Principals of EAST, in addition to the Company itself to pass the regulatory background checks and due diligence necessary to list in the U.S. Form 211 clearance opens the way for EAST to complete the DTC's due diligence and subsequently finalize the Company's application for listing on the OTC Markets QB Exchange.
"DTC approval is important for EAST in its evolution to create liquidity for its existing shareholders by opening the stock to new shareholders in the US. Stock liquidity is the ability (or ease) to buy or sell stocks without affecting the price. This means a stock that trades enough shares for the trader to sell it at any point in time is a liquid stock." states Rodney Gelineau, CEO of EastWest Bioscience.
The Depository Trust Company (DTC) is one of the world's largest securities depositories. Founded in 1973 and based in New York City, the DTC is organized as alimited purpose trust companyand providessafekeepingthrough electronic record-keeping of securities balances. It also acts as a clearinghouse to process and settle trades in corporate and municipal securities.
Most of the country's biggestbroker-dealersand banks are DTC participants. That means they deposit and hold securities at the DTC, which appear in the records of an issuer's stock as the sole registered owner of those securities deposited at the DTC. The participants-the banks and the brokers-dealers-own a proportionate interest in the aggregatesharesof an issuer held at DTC. Bank X, for example, may contain a proportion of the group of shares of Stock BB that are being held in custody at the DTC.
About EastWest Bioscience Group
EastWest Bioscience is a vertically integrated wellness company with the infrastructure to become a global giant in the Hemp & CBD consumer health market. Since it was founded in 2016, EastWest continues to grow as a high-quality producer, manufacturer and distributor of multiple lines of premium health and hemp products. EastWest currently has more than 200+ NPN's in its stable of products.
EastWest's consumer product lines are divided into four distinct brands: 1) Natural Advancement - natural biopharmaceutical health supplements; 2) Earth's Menu - all-natural hemp superfoods; 3) Natural Pet Science - pet food and pet supplements; and 4) ChanvreHemp - all-natural health and beauty products.
In Canada, EastWest has a 34,000 Sq. Ft, Health Canada-licensed, GMP (Good Manufacturing Practices) - certified manufacturing facility and produces premium nutraceutical brands, offering natural products for a preventive care lifestyle. EastWest and Benchmark Botanicals (BBT-CSE) also have a Joint Venture Intent to accelerate acquisition of Processor, Analytical and Research and Development licenses under the Cannabis Act in EastWest's Penticton facility. These three classes of the Cannabis Act license will allow Benchmark and EastWest to build out an extensive extraction, laboratory, and research facility at EastWest's Health Canada Certified facility.
In the USA, EastWest USA has entered into a Joint Venture with Azema Sciences, securing for EastWest first rights on Azema's output of bulk CBD and finished CBD products manufactured, and which are ready for sale in the USA and globally. EastWest Science USA ("EastWest USA"), EastWest's US operating division, will be the preferred distributor for Azema's finished goods. These finished products will include CBD creams, tinctures and salves which are products not currently in EastWest's catalogue. Additionally, EastWest will have first right of refusal to all potential opportunities relating to Azema's Kentucky based CBD processing facility. EastWest currently has TSX Approval for sale of its consumer products in 21 US States.
EastWest's international expansion continues with reach into important key markets in New Zealand, Australia, and Asia through a distributor agreement with New Zealand Hemp Brokers. Headquartered in Rotorua, New Zealand, NZ Hemp Brokers have quickly grown to become one of the country's most trusted industrial hemp wholesalers, and New Zealand's only import/export broker specialising in hemp products. NZ Hemp Brokers is licensed by the NZ Ministry of Health to grow, trade in and process industrial hemp, are registered brokers and certified in hemp medicine by the NZ Hemp Foundation.
ON BEHALF OF THE BOARD OF DIRECTORSEASTWEST BIOSCIENCE GROUP
"Rodney Gelineau"Co-Founder, Chief Executive Officer and Director
TSXV - Symbol: EAST
Company Website:www.eastwestbioscience.comContact: Nicholas Vincent - Investor Relations on 1-800-409-1930 orinvestors@eastwestscience.com.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the terms and conditions of the Acquisition. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; and delay or failure to receive board, shareholder or regulatory approvals. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE:EastWest Bioscience Group
View source version on accesswire.com:https://www.accesswire.com/549194/DTC-Application-Update-EastWest-Bioscience-Passes-Due-Diligence-for-FINRA-Form-15c-211 |
Introducing Moda Bagno - N. Varveris (ATH:MODA), The Stock That Zoomed 182% In The Last Three Years
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SomeModa Bagno - N. Varveris S.A.(ATH:MODA) shareholders are probably rather concerned to see the share price fall 34% over the last three months. In contrast, the return over three years has been impressive. In fact, the share price is up a full 182% compared to three years ago. So the recent fall in the share price should be viewed in that context. If the business can perform well for years to come, then the recent drop could be an opportunity.
See our latest analysis for Moda Bagno - N. Varveris
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
Moda Bagno - N. Varveris became profitable within the last three years. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
It might be well worthwhile taking a look at ourfreereport on Moda Bagno - N. Varveris's earnings, revenue and cash flow.
Moda Bagno - N. Varveris shareholders are down 34% for the year, but the market itself is up 7.9%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 7.1% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. Is Moda Bagno - N. Varveris cheap compared to other companies? These3 valuation measuresmight help you decide.
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 GR 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. |
Barrett Business Services (BBSI) Jumps: Stock Rises 7.1%
Barrett Business Services, Inc.BBSI was a big mover last session, as the company saw its shares rise more than 7% on the day. The move came on solid volume too with far more shares changing hands than in a normal session. This breaks the recent trend of the company, as the stock is now trading above the volatile price range of $72.02 to $82.00 in the past one-month time frame.
The company has seen no changes when it comes to estimate revision over the past few weeks, while the Zacks Consensus Estimate for the current quarter has also remained unchanged. The recent price action is encouraging though, so make sure to keep a close watch on this firm in the near future.
Barrett Business Services currently has a Zacks Rank #2 (Buy) while its Earnings ESP is 0.00%.
Barrett Business Services, Inc. Price
Barrett Business Services, Inc. price | Barrett Business Services, Inc. Quote
Investors interested in the Business Services sector may consider Deluxe Corporation DLX, which has a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Is BBSI going up? Or down? Predict to see what others think:Up or Down
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.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 reportBarrett Business Services, Inc. (BBSI) : Free Stock Analysis ReportDeluxe Corporation (DLX) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Wall Street Foresees a Fed Rate Cut: Winners & Losers
Expectations that the Fed will start trimming interest rates have grown recently. Earlier, the Fed funds futures market was suggesting a 50-50 chance that the central bank will announce a rate cut in the July meeting. But now, the Fed funds futures market is showing an 85% chance of a July rate cut, which is up more than 25% from a month ago, according to the CME Group.
Some may argue that against the backdrop of a record-low unemployment rate, steady rise in wages and uptick in consumer outlays, a rate cut as early as this month seems impossible. But, the view from Wall Street is quite different.
After all, the stock market has been able to enjoy a decade-long bull market, as rates mostly remained low, which eventually infused life into stocks. And how can we forget that prolonged trade issues with the United States and its trading partners have raised concerns about global economic growth and corporate profit margins. Stocks, in fact, have fell nearly 7% from their recent highs.
By the way, the long-term interest rates are currently lower than short-term interest rates, which is a tell-tale sign that recession is knocking at the door. James Bianco, president of Bianco Research, an economic consulting firm in Chicago added that “the yield curve inversion is a market signal that the Fed is too tight, and that the Fed has raised rates too much.” The Goldman Sachs Group, Inc. GS also acknowledged that a few analysts have started to price in “insurance cuts,” which means it is expecting the Fed to cut rates right before a downturn in order to save the economy.
If not in July, the Fed will certainly cut rates this year. And that’s exactly what Bank of America Corporation BAC believes. The banking behemoth may not be expecting a rate cut in July, but is pinning hopes on a 0.25 percentage point rate cut in September, and then again in December.
There is also a lot of pressure from President Trump to cut interest rates. Trump is now challenging the Fed to do exactly what the ECB has decided. That is taking steps to ease monetary policy!
Healthcare Stocks Outperform After a Rate Cut
Barclays has compiled data that shows that healthcare stocks generally rise nearly 7% in the nine months following a rate cut. And what makes this set of stocks stand out is that they tend to rise consistently.
We all know that rate cuts mainly take place when the economy goes through a rough patch or is in recession. And healthcare stocks have time and again thrived in such scenarios. This is because they are mostly defensive in nature as their products are not directly related to the developments in the stock market.
Moreover, healthcare stocks are known for paying hefty dividends, which makes them more alluring when rates decline in uneasy economic conditions. Needless to say, lower interest rates mostly tend to raise prices of high-yielding stocks.
(Image Source: Barclays Research)
Some of the top healthcare stocks one may now consider includeMolina Healthcare, Inc. MOH,Cardiovascular Systems, Inc. CSII,Magellan Health, Inc. MGLN andRepligen CorporationRGEN. All of them flaunt a Zacks Rank #1 (Strong Buy) and have consistently provided solid dividend yield over the past five-year period. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Rate Cut Loser – The Durables Sector
The durables sector tends to underperform after the Fed lowers rates and that too consistently. Traditionally, the sector has gained a meager 3% or slightly more after the central bank begins to lower interest rates, Barclays observed. Durable goods, by the by, includes autos, machinery and homes, which are very sensitive to the economic cycle.
Maneesh Deshpande, head of U.S. equity strategy at Barclays, noted that Fed will lower rates in the wake of soft economic conditions, if not a recession. During late-2018, utilities and nondurables, better known as recession outperformers, had rallied but tech shares, known as soft patch outperformers, had taken a hit. But now, techs have bounced back while utilities and nondurables are weighed down.
(Image Source: Barclays Research)
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.
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 reportBank of America Corporation (BAC) : Free Stock Analysis ReportThe Goldman Sachs Group, Inc. (GS) : Free Stock Analysis ReportCardiovascular Systems, Inc. (CSII) : Free Stock Analysis ReportRepligen Corporation (RGEN) : Free Stock Analysis ReportMagellan Health, Inc. (MGLN) : Free Stock Analysis ReportMolina Healthcare, Inc (MOH) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
‘A Very Expensive Failure’: Blockchain Experts Slam Facebook’s Libra Cryptocurrency
ByCCN Markets: Alot has already been saidabout Facebook’s Libra cryptocurrency and its ambition to disrupt the finance world. But what about the blockchain technology that powers it?
Blockchain experts have poured over thetechnical documentsand played with the Libra protocoltestnet. Suffice to say, they’re not convinced about Libra’s claims.
Facebook launched the Libra protocol blockchain testnet on Tuesday, but experts aren’t convinced. Source: Libra
Bitcoin developer Tamas Blummer offered the mostdamning assessment of the Libra protocol. He said Facebook is abusing its position to muscle into the blockchain world.
Read the full story on CCN.com. |
New Strong Sell Stocks for June 19th
Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: Abiomed, Inc. ABMD is a developer and manufacturer of medical devices to assist or replace the pumping function of the failing heart. The Zacks Consensus Estimate for its current year earnings has been revised 1.5% downward over the last 30 days. Analog Devices, Inc. ADI is a designer and manufacturer of integrated circuits (ICs), algorithms and software. The Zacks Consensus Estimate for its current year earnings has been revised 4.2% downward over the last 30 days. ArcBest Corporation ARCB is a provider of freight transportation services and integrated logistics solutions. The Zacks Consensus Estimate for its current year earnings has been revised 2% downward over the last 30 days. Arrow Electronics, Inc. ARW is a provider of products, services, and solutions to industrial as well as commercial users of electronic components and enterprise computing solutions. The Zacks Consensus Estimate for its current year earnings has been revised 6.1% downward over the last 30 days. AstroNova, Inc. ALOT is a developer and manufacturer of specialty printers, and data acquisition and analysis systems. The Zacks Consensus Estimate for its current year earnings has been revised 5.3% downward over the last 30 days. View the entire Zacks Rank #5 List. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ArcBest Corporation (ARCB) : Free Stock Analysis Report AstroNova, Inc. (ALOT) : Free Stock Analysis Report Arrow Electronics, Inc. (ARW) : Free Stock Analysis Report ABIOMED, Inc. (ABMD) : Free Stock Analysis Report Analog Devices, Inc. (ADI) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research |
Dynatronics to Attend the 2019 Florida International Medical Expo
COTTONWOOD HEIGHTS, UT / ACCESSWIRE / June 19, 2019 /Dynatronics Corporation(DYNT), a leading manufacturer of athletic training, physical therapy, and rehabilitation products, today announced that it will attend the 28th annual Florida International Medical Expo (FIME) medical trade fair from June 26 to June 28 in Miami Beach, Florida.
FIME is a premier trade show that includes more than 1,200 exhibiting companies, over 14,000 healthcare and trade professionals, with more than 103 countries represented. Dynatronics will be showcasing its Bird & Cronin®and Hausmann™brands that consist of a full-line of orthopedic soft bracing products and treatment tables. During the expo, the company will be highlighting several of their notable premier products for the professional and consumer markets at booth #C47.
"This convention provides an excellent forum to promote our restorative soft bracing products and tables to an international audience of potential buyers and users," explained Dr. Christopher von Jako, Chief Executive Officer of the Dynatronics. "We have successfully participated in FIME for many years and look forward to building relationships with current and new customers during the event."
About Dynatronics Corporation
Dynatronics is a leading medical device company committed to providing high-quality restorative products designed to accelerate achieving optimal health. The company designs, manufactures, and sells a broad range of products for clinical use in physical therapy, rehabilitation, pain management, and athletic training. Through its distribution channels, Dynatronics markets and sells to orthopedists, physical therapists, chiropractors, athletic trainers, sports medicine practitioners, clinics, hospitals, and consumers. The company products are marketed under a portfolio of high-quality, well-known industry brands including Bird & Cronin®, Dynatron Solaris®, Hausmann™, Physician's Choice®, and PROTEAM™, among others. More information is available atwww.dynatronics.com.
Contact:
Dynatronics CorporationInvestor RelationsJim Ogilvie(801) 727-1755jim.ogilvie@dynatronics.com
For additional information, please visit:www.dynatronics.comLike Dynatronics onFacebookConnect with Dynatronics onLinkedInFollow us onTwitter
SOURCE:Dynatronics Corporation
View source version on accesswire.com:https://www.accesswire.com/549167/Dynatronics-to-Attend-the-2019-Florida-International-Medical-Expo |
KLA-Tencor Corporation (NASDAQ:KLAC) Delivered A Better ROE Than Its Industry
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One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. To keep the lesson grounded in practicality, we'll use ROE to better understand KLA-Tencor Corporation (NASDAQ:KLAC).
Over the last twelve monthsKLA-Tencor has recorded a ROE of 45%. One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.45 in profit.
See our latest analysis for KLA-Tencor
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for KLA-Tencor:
45% = US$1.3b ÷ US$2.9b (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 earnings retained by the company, plus any capital paid in by shareholders. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets.
ROE measures a company's profitability against the profit it retains, and any outside investments. The 'return' is the yearly profit. The higher the ROE, the more profit the company is making. So, all else being equal,a high ROE is better than a low one. That means it can be interesting to compare the ROE of different companies.
By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As is clear from the image below, KLA-Tencor has a better ROE than the average (14%) in the Semiconductor industry.
That is a good sign. We think a high ROE, alone, is usually enough to justify further research into a company. For exampleyou might checkif insiders are buying shares.
Most companies need money -- from somewhere -- to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the first two cases, the ROE will capture this use of capital to grow. 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.
KLA-Tencor does use a significant amount of debt to increase returns. It has a debt to equity ratio of 1.19. There's no doubt its ROE is impressive, but the company appears to use its debt to boost that metric. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
Return on equity is one way we can compare the business quality of different companies. Companies that can achieve high returns on equity without too much debt are generally of good quality. All else being equal, a higher ROE is better.
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So I think it may be worth checking thisfreereport on analyst forecasts for the company.
Of courseKLA-Tencor may not be the best stock to buy. So you may wish to see thisfreecollection of other companies that have high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Appian (APPN) Surges: Stock Moves 6.1% Higher
Appian CorporationAPPN was a big mover last session, as the company saw its shares rise more than 6% on the day. The move came on solid volume too with far more shares changing hands than in a normal session. This breaks the recent trend of the company, as the stock is now trading above the volatile price range of $31.36 to $36.13 in the past one-month time frame.The company has seen no changes when it comes to estimate revision over the past few weeks, while the Zacks Consensus Estimate for the current quarter has also remained unchanged. The recent price action is encouraging though, so make sure to keep a close watch on this firm in the near future.Appian currently has a Zacks Rank #4 (Sell) while its Earnings ESP is 0.00%.
Appian Corporation Price
Appian Corporation price | Appian Corporation Quote
Investors interested in the Internet - Software industry may consider eGain Corporation EGAN, which has a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.Is APPN going up? Or down? Predict to see what others think:Up or Down
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 reporteGain Corporation (EGAN) : Free Stock Analysis ReportAppian Corporation (APPN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
What To Know Before Buying Morguard Real Estate Investment Trust (TSE:MRT.UN) For Its Dividend
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Dividend paying stocks like Morguard Real Estate Investment Trust (TSE:MRT.UN) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter.
With Morguard Real Estate Investment Trust yielding 7.8% and having paid a dividend for over 10 years, many investors likely find the company quite interesting. We'd guess that plenty of investors have purchased it for the income. Some simple research can reduce the risk of buying Morguard Real Estate Investment Trust for its dividend - read on to learn more.
Explore this interactive chart for our latest analysis on Morguard Real Estate Investment Trust!
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. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. In the last year, Morguard Real Estate Investment Trust paid out 61% of its profit as dividends. A payout ratio above 50% generally implies a business is reaching maturity, although it is still possible to reinvest in the business or increase the dividend over time.
Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. The company paid out 71% of its free cash flow, which is not bad per se, but does start to limit the amount of cash Morguard Real Estate Investment Trust has available to meet other needs. It's positive to see that Morguard Real Estate Investment Trust's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
Remember, you can always get a snapshot of Morguard Real Estate Investment Trust's latest financial position,by checking our visualisation of its financial health.
One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. For the purpose of this article, we only scrutinise the last decade of Morguard Real Estate Investment Trust's dividend payments. The dividend has been stable over the past 10 years, which is great. We think this could suggest some resilience to the business and its dividends. During the past ten-year period, the first annual payment was CA$0.90 in 2009, compared to CA$0.96 last year. Dividend payments have grown at less than 1% a year over this period.
Slow and steady dividend growth might not sound that exciting, but dividends have been stable for ten years, which we think is seriously impressive.
Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. Over the past five years, it looks as though Morguard Real Estate Investment Trust's EPS have declined at around 19% a year. Declining earnings per share over a number of years is not a great sign for the dividend investor. Without some improvement, this does not bode well for the long term value of a company's dividend.
When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. Morguard Real Estate Investment Trust's is paying out more than half its income as dividends, but at least the dividend is covered by both reported earnings and cashflow. Moreover, earnings have been shrinking. While the dividends have been fairly steady, we'd wonder for how much longer this will be sustainable if earnings continue to decline. In sum, we find it hard to get excited about Morguard Real Estate Investment Trust from a dividend perspective. It's not that we think it's a bad business; just that there are other companies that perform better on these criteria.
See if management have their own wealth at stake, by checking insider shareholdings inMorguard Real Estate Investment Trust stock.
If you are a dividend investor, you might also want to look at ourcurated list of dividend stocks yielding above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
The Misonix (NASDAQ:MSON) Share Price Is Up 363% And Shareholders Are Delighted
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Investing can be hard but the potential fo an individual stock to pay off big time inspires us. Mistakes are inevitable, but a single top stock pick can cover any losses, and so much more. One bright shining star stock has beenMisonix, Inc.(NASDAQ:MSON), which is 363% higher than three years ago. In more good news, the share price has risen -3.3% in thirty days.
View our latest analysis for Misonix
Given that Misonix didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Over the last three years Misonix has grown its revenue at 21% annually. That's much better than most loss-making companies. And it's not just the revenue that is taking off. The share price is up 67% per year in that time. It's always tempting to take profits after a share price gain like that, but high-growth companies like Misonix can sometimes sustain strong growth for many years. So we'd recommend you take a closer look at this one, or even put it on your watchlist.
The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values).
We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Thisfreereport showing analyst forecastsshould help you form a view on Misonix
We're pleased to report that Misonix shareholders have received a total shareholder return of 79% over one year. That gain is better than the annual TSR over five years, which is 28%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. Before spending more time on Misonixit might be wise to click here to see if insiders have been buying or selling shares.
But note:Misonix may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on 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. |
Autolus Therapeutics (AUTL) in Focus: Stock Moves 8.5% Higher
Autolus Therapeutics plcAUTL was a big mover last session, as the company saw its shares rise more than 8% on the day. The move came on solid volume too with far more shares changing hands than in a normal session. This stock, which remained volatile and traded within the range of $15.41–$22.01 in the past one-month time frame, witnessed a sharp increase yesterday.The company has seen four negative estimate revisions in the past few weeks, while its Zacks Consensus Estimate for the current quarter has also moved lower over the past few weeks, suggesting there may be trouble down the road. So make sure to keep an eye on this stock going forward, to see if this recent move higher can last.Autolus Therapeutics currently has a Zacks Rank #4 (Sell) while its Earnings ESP is 0.00%.
Autolus Therapeutics PLC Sponsored ADR Price
Autolus Therapeutics PLC Sponsored ADR price | Autolus Therapeutics PLC Sponsored ADR Quote
Investors interested in the Medical - Biomedical and Genetics industry may consider Acorda Therapeutics, Inc. ACOR, which has a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.Is AUTL going up? Or down? Predict to see what others think: Up or DownThis 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 reportAcorda Therapeutics, Inc. (ACOR) : Free Stock Analysis ReportAutolus Therapeutics PLC Sponsored ADR (AUTL) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Ignore the Recent Downgrade, Disney Stock Is a Big-Time Buy
Investors inWalt Disney(NYSE:DIS) have to be smiling these days. Shares of Disney stock have surged nearly 30% year-to-date and are up more than 70% over the last five years.
Source: Disney
That return has allowed Disney to beat the broader market and nearly all its peers in the media/entertainment sector. From rising park attendance to plenty of blockbuster hits, all is sunshine for the House of Mouse these days.
But apparently, all is too well for DIS.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Disney recently received a very rare analyst downgrade. This is only the second time in more than a year that someone thought that it wasn’t worth buying. While some of the analyst concerns do make sense, the reality is, Disney has plenty of growth still left in the tank and shares could run even further in near-to-medium turn.
• 5 Stocks to Buy for $20 or Less
Disney normally doesn’t get hit with much negative attention. Sure, there wereissues with ESPNand cord cutting a few years ago, but the firm continues to plow ahead with a variety of revenue-generating ideas that seem to be working. As a result, investors tend to think of Disney in a positive fashion.
DIS stock currently features 14 “buy” ratings and only four “hold” ratings. So, when Imperial Capital downgraded DIS stock to essentially a “hold” rating, many market participants were perplexed and caused the stock to sink more than 1% on the day.
The reason forImperial’s downgradeof DIS comes down to future growth expectations.
According to analyst David Miller, Disney stock is now trading at record levels relative to projected 2021 per-share earnings. Miller’s report highlights that DIS never trades at more than an 18x forward P/E.
However, according to his model for earnings, the House of Mouse now trades at a 21.7 forward P/E for 2020 and 19.3 forward P/E for 2021. As a result, Imperial sees limited potential for gains in DIS stock and is already so close its $147 per share price target.
Imperial’s concerns do seem valid on the surface. Disney has surged big on many its recent wins and investors may already be pricing in a lot of growth. But they also could be pricing in not enough growth as well. That growth comes from three main points.
For one thing, Disney+ is going to be a sheer monster for the company. It’s no secret that the streaming wars are heating up and DIS is truly going to rule the roost. While hits like the Game of Thrones tend to make the news, the reality is that kids movies and T.V. shows tend to make up the most streaming viewership, and no one does kid’s entertainment like Disney.
The announcement for its streaming service will feature its animated classics, the complete Lucasfilm, Marvel and Pixar movie libraries as plenty of its original programming content from the Disney Channel. Moreover, Disney+ will feature plenty of new original kids and tween shows.
As Disney starts to pull its shows and movies off of other services, parents everywhere will start pulling their hair and give into Disney+. Analysts at Morgan Stanley now predict that DIS will see more than 133.3 million paid subscriber services by fiscal 2024. That gives it a faster growth rate thanNetflix(NASDAQ:NFLX).
However, we could see faster growth rates than that and hit those big numbers earlier. That’s because Disney’s is planning on offering bundles of Disney+, ESPN+ and Hulu services for about $2 less per month than NFLX. This should help pull customers from the rival service- especially when you get your kid access to Hanna Montana and Star Wars.
Speaking of Star Wars, DIS is effectively milking that franchise for all its worth. This includes its immersive Galaxy Edge land in Disneyland. Already, the world is a big hit and consumers continue to fork over some big cash to buy custom lightsabers, their own droids and drink plenty of high-end cocktails. In essence, the real peopleDIS is courting are adults. And it’s working so well, there’s no reason why they can’t replicate the land in its other parks.
Finally, Disney has a massive slate of movies hitting screens in the near to medium-term. Top franchises from Marvel, live-action adoptions of former animated hits and several new films from its now owned Fox studios could bear plenty of blockbuster fruit. And if you want to see these films outside the theater, you’ll have to subscribe to Disney+.
In the end, Disney still has a lot of growth potential in its hands. A lot has been priced in for Disney+, but here the firm has plenty of levers to pull in order to grow subscriber growth faster than expected. Bundling will work to pull over more viewers from rivals. Meanwhile, park attendance and higher-end experiences are courting more adults to spend big time. Adding its film potential and you have a recipe for success.
When you finally add in Disney’s lucrative buyback programs you start to see a much brighter picture for DIS stock over the long haul. With that, there’s no reason why Disney stock couldn’t hit $160 or even $200 a share over the next couple of years.
In the end, the House of Mouse continues to win and win big. That’ll drive multiple expansion over the long haul.
Disclosure: At the time of writing, Aaron Levitt did not hold a position in any stock mentioned.
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Lamb Weston (LW) Completes Facility Expansion in Oregon
Lamb Weston Holdings, Inc.LW announced that it has completed the expansion of the facility located at Hermiston, OR. This is in sync with the company’s efforts to boost supply-chain network. Let’s take a closer look at the latest move and other aspects.Prudent Efforts to Strengthen BusinessIn 2017, the company had announced investments of roughly $250 million for the expansion of the Oregon facility. The company joined hands with a number of organizations and officials for the completion of this plan.Through this endeavor, the company has been able to add a new processing line for expanding the production of frozen french fries. Accordingly, the company’s french fries production is likely to increase nearly 300 million pounds annually. The products manufactured in the facility will be sold in the United States as well as in other international regions.Management states that through such endeavors, the company will be able to successfully meet the rising demand for french fries. Apart from capacity expansion, the company is striving toward strengthening commercial networks and bolstering portfolio through innovations.In addition to strategies to enhance product offerings, the company also resorts to limited time offers or LTO innovations to broaden revenue prospects. Incidentally, LTOs helped drive growth and market share gains in fiscal 2018. Also, in the third quarter of fiscal 2019, LTOs accounted for significant volume growth in the Global segment. Further, Lamb Weston is gaining from robust price/mix, evident from the fact that the metric remained favorable across all segments in the third quarter.
High Costs and Weakness in Europe are ConcernsAlthough Lamb Weston is on track with efforts to boost capabilities, there are significant headwinds that cannot be easily ignored. Markedly, the company’s SG&A expenses have been rising for a while. For fiscal 2019, management expects SG&A costs to increase considerably due to planned investments to support the upgrade of information systems and enterprise resource planning infrastructure. Additionally, the company expects transportation, input and manufacturing costs to increase in fiscal 2019.To further aggravate maters, this Zacks Rank #4 (Sell) company is experiencing uncertainties in Europe. In fact, operations in the region are expected to remain dismal during fiscal 2019 and in the first half of fiscal 2020, thanks to a poor potato crop. Such downturns have caused shares of the company to plunge nearly 26.3% in the past three months compared with the industry’s decline of 19.2%.All said, we expect that the company’s expansion plans will cushion the aforementioned headwinds and revive the stock.Interested in Consumer Staples Stocks? Check TheseGeneral Mills GIS with long-term earnings per share (EPS) growth rate of 7%, carries a Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.Campbell Soup Company CPB, with long-term earnings growth rate of 5%, carries a Zacks Rank #2.The Chefs' Warehouse CHEF, also with a Zacks Rank #2, has long-term earnings growth rate of 15%.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 reportGeneral Mills, Inc. (GIS) : Free Stock Analysis ReportCampbell Soup Company (CPB) : Free Stock Analysis ReportThe Chefs' Warehouse, Inc. (CHEF) : Free Stock Analysis ReportLamb Weston Holdings Inc. (LW) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Shell aims to beat power utilities at their own game
By Ron Bousso and Susanna Twidale
LONDON (Reuters) - Royal Dutch Shell wants to build a power business more profitable than the competitive sector's existing players, banking on its global scale and oil and gas income to maximise on the transition to cleaner energy.
Demand for electricity is set to soar as Asian economies grow and electric vehicles replace petrol cars. Shell is under pressure to shed the Oil Majors' century-old business model and position itself for a future with lower use of fossil fuels.
Shell's rivals such as France's Total and Italy's Eni are also expanding their power businesses. But Shell's plans are by far the most ambitious with the largest planned spending on power.
Established power utilities have suffered in recent years as their decades-old model of centralised, predictable energy production and consumption has given way to a more flexible energy system where smaller, nimbler retail challenger brands can often undercut their prices.
Technologies such as home-installed solar panels, battery storage and electric car charging stations are likely to reshape the sector further.
Shell plans to boost spending on its nascent power division to $2 to $3 billion per year by 2025, nearly 10% of its overall spending, betting on rapid growth in demand for electricity from electric vehicles and industry, particularly in developed economies.
The shift will include expanding its presence in renewable energy, power retail and electric vehicle charging stations.
In recent years, Shell acquired UK's First Utility, which it rebranded Shell Energy, German battery storage firm Sonnen as well as several investments in EV charging technologies.
The move into power is critical for Shell to meet its ambition to halve its carbon emissions by 2050 and offset the expected decline in demand for oil as governments phase out petrol cars in the coming decades.
RETURNS
One of the most eye-catching elements of its strategy was the targeting of returns of 8% to 12% after the investment stage, probably around 2030.
Such levels have rarely been seen in the power sector.
Power could be a significant business for Shell, Shell's Maarten Wetselaar, head of integrated gas and new energies, said at a strategy presentation earlier this month.
"It has the scale and longevity that aligns well with Shell, and could one day sit alongside our oil, gas, and chemicals business."
"We are not interested in this business because of the returns that the utility industry traditionally delivers. Instead, we believe we can build a modern integrated power business," he added.
But that could prove tough.
For instance in Britain, a country pinpointed by Shell for further generation and retail expansion, pre-tax supply profit margins for the big six energy retailers averaged around 3% on aggregate from 2009-2017, a report by UK energy regulator Ofgem showed.
Margins achieved from electricity generation were better, averaging 10% on aggregate in 2017, down from 11% a year earlier.
Shell is unlikely to make significantly higher returns on the retail supply business than rivals, but it will be able to build up profits through energy trading, said Peter Atherton, an associate at consultancy Cornwall Insight.
Shell has the world's largest trading operations, when including oil and gas, which it said will allow it to supply a range of sources of power from wind, solar and gas to customers.
Trading helps weather cyclical dips in margins in any single business area by taking advantage of short-term changes in the market such as cheaper sources of power.
Power companies have remained profitable but have struggled in recent year, largely due to margins lagging on their retail side, dragging down company-wide profits.
Shell wants to increase its retail customer base from around 700,000 in 2018 to 5 million in 2025 in anticipation of big changes in the way we consume electricity.
Consumers with electric vehicles or home storage will have more control over their electricity consumption, and Shell hopes that by recruiting customers early it will be able to provide them with a host of new services during the energy transition.
COMPETITION
In recent years, Europe's largest oil and gas companies have increased spending on renewables and power.
France's Total has set out ambitious plans for its power business to reach 7 million customers across France and Belgium -- roughly 15% of the market -- by 2022.
BP is also expanding while U.S. rivals Exxon Mobil and Chevron have largely avoided renewable energy and power.
"The key risk to Shell's strategy is how realistic will these returns be," said Jason Gammel, analyst at Jefferies.
"When there is competition in a sector that historically had low returns it does raise the question if they can deliver returns in the long term."
The Oil Majors are also rapidly growing gas production which is gradually replacing more polluting coal for power generation.
(Editing by Alexandra Hudson) |
Jacobs to Deliver Project Services, Eyes Growth of BIAF Unit
Jacobs Engineering Group Inc.JEC recently announced that it has been appointed by the Australian Department of Foreign Affairs and Trade (“DFAT”) to provide project management and contract administration services for the construction of a new Australian Embassy in Washington, D.C.The new chancery will be constructed after demolishing the existing embassy building, and will be located at the 16th street of Massachusetts Avenue and is one kilometer away from the White House.Designed by Australia-based Bates Smart, the new building design is more environmentally sensitive, given efficient facade and a green roof with an extensive photovoltaic array and natural light.Meanwhile, the project will be delivered by Jacobs' U.S.-based construction management team, supported by Australian-based project direction and design review teams.The recent work marks the first major project with DFAT in Jacobs’ history. This will offer further opportunities for the company’s Buildings, Infrastructure and Advanced Facilities (“BIAF”) business. Notably, in fiscal second-quarter, revenues in the segment increased 4.4% year over year.Solid Project Execution Bodes WellEfficient project execution has been driving Jacobs ‘performance over the last few quarters. This is evident from the company’s fiscal second-quarter backlog. The company’s backlog at the end of the quarter was $20.7 billion, increasing 7.5% year over year, primarily attributable to CH2M revenue synergies.Higher-margin Aerospace, Technology and Nuclear (ATN) and BIAF line of businesses continue to see a robust pipeline of government and infrastructure spending programs. Particularly, backlog in the BIAF segment (accounting for 65.7% of fiscal second-quarter revenues) grew 11.1% year over year.Notably, management has outlined new margin targets for the next three years (through 2021), including Jacobs’ aim of 125-175 basis points (bps) expansion in adjusted operating margins, 100-150 bps increase in ATN margins and 110-140 bps growth in BIAF margin. Moreover, the company is projecting 3-5% net organic revenue growth, with BIAF leading the way with 4-6% top-line CAGR and ATN with 2-3% CAGR.Share Price Performance
Jacobs’ shares have outperformed its industry in the past year. The stock has gained 36.6% compared with 19.4% growth of its industry in the said period. Jacobs’ price performance is backed by an impressive earnings surprise history. The company has surpassed the Zacks Consensus Estimate in five of the trailing six quarters.Zacks Rank & Key PicksJacobs currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space include AECOM ACM, KBR, Inc. KBR and Quanta Services, Inc. PWR, each carrying a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.AECOM and KBR surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average of 6.2% and 8.9%, respectively.Quanta Services’ 2019 earnings are expected to grow 29.5%.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 reportJacobs Engineering Group Inc. (JEC) : Free Stock Analysis ReportQuanta Services, Inc. (PWR) : Free Stock Analysis ReportKBR, Inc. (KBR) : Free Stock Analysis ReportAECOM (ACM) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Trump raises $24.8M in less than 24 hours for re-election campaign, RNC’s Ronna McDaniel says
Republican National Committee ChairwomanRonna McDanielannounced Wednesday thatPresident Trump’sre-election campaign has raised $24.8 million in less than 24 hours.
“@realDonaldTrump has raised a record-breaking $24.8M in less than 24 hours for his re-election. The enthusiasm across the country for this President is unmatched and unlike anything we’ve ever seen! #trump2020 #KeepAmericaGreat," McDaniel tweeted.
The president retweeted McDaniel's announcement and thanked his supporters Wednesday morning.
"THANK YOU! #Trump2020," Trump tweeted.
Trump kicked off his re-election campaign Tuesday night during a rally at the Amway Center in Orlando, Fla.
“Tonight I stand before you to officially launch my campaign for a second term as president of the United States,” Trump said.
On Tuesday, Trump’s campaign sent out emails to supporters asking for contributions, theNew York Postreported.
“I want to know who stood with me when it mattered most. That’s why I’ve asked my team to broadcast the names of every patriot who donates to this email LIVE on the Official Donald J. Trump Campaign website during my campaign launch,” the email said, according to the newspaper.
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Trump’s opponents announced how much their campaigns took in within 24 hours of their bids.Sen. Bernie Sanders, I-Vt., who declared his bid for the presidency in February, said he raised $5.9 million within 24 hours of his announcement. Former Vice PresidentJoe Biden, who announced his bid in April, raised $6.3 million within the first day of his 2020 launch, according to his campaign.Sen. Kamala Harris, D-Calif., who announced she was running in January, raised more than $1.5 million within 24 hours.
Fox Business’ Megan Henney contributed to this report.
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UPDATE 2-Canada's annual inflation rate hits seven-month high, analysts dismiss rate cut possibility
(Recasts lead, adds analysts comments, Canadian dollar rising)
By Kelsey Johnson
OTTAWA, June 19 (Reuters) - Canada's annual inflation rate rose unexpectedly to a seven-month high in May, data showed on Wednesday, prompting analysts to predict the Bank of Canada would not be cutting interest rates anytime soon.
Statistics Canada said the annual rate hit 2.4% on increased prices for vegetables and durable goods. Analysts in a Reuters poll had expected the annual rate to edge up to 2.1% from 2.0% in April.
It was the first time since October 2018 that the annual rate had exceeded the Bank of Canada's 2.0% target.
Economic signals have been mixed in recent months. The Bank of Canada put interest rate hikes on hold in October amid a slowing domestic and global economy and is not expected to move again for the rest of the year.
"Certainly, it's a reason for the central bank to hold off on cutting interest rates," said Sal Guatieri, senior economist at BMO Capital Markets.
"As long as the economy picks up in (the) current quarter, as recent data suggest is happening, there's really not a big reason for the Bank of Canada to follow the (U.S Federal Reserve) down the easing path," he said in a phone interview.
The Canadian dollar strengthened to C$1.3348 to the U.S. dollar, or 74.92 U.S. cents.
Statscan said Canadians paid 2.9% more for meat and 16.7% more for fresh vegetables than in May 2018 because of higher demand and tight supply caused by bad weather in growing regions.
Passenger vehicle purchases increased 4.2% compared with the previous year because of manufacturing rebates for trucks, the agency said, the largest increase since October 2016.
Meanwhile, gasoline prices dropped 3.7% in May from a year earlier. When they were excluded, the annual inflation rate rose to 2.7%, the highest since November 2008.
Although two of the Bank of Canada's three measures of core inflation edged above 2.0%, CPI common - which the central bank says is the best gauge of the economy's underperformance - remained at 1.8% in May.
"The fact that the core inflation metric also moved higher is perhaps a bit more surprising," said Andrew Kelvin, chief Canada strategist at TD Securities.
"I think that is the thing that markets should be focusing on because that fits with the narrative that the Bank of Canada has been talking about where the slowdown in economic activity in late 2018, early 2019 was a temporary phenomenon."
(Reporting by Kelsey Johnson; Editing by David Ljunggren, Dale Smith, Steve Orlofsky and Jonathan Oatis) |
CannTrust Trades Higher After Confirming US Launch In California
Canadian-based producer of medical and recreational cannabisCannTrust Holdings Inc(NYSE:CTST) announced Wednesday itsentrance to the U.S. market, starting in the state of California.
What Happened
CannTrust signed a non-binding letter of intent that will give the company access to more than 3,000 acres of farmland for hemp production with Elk Grove Farming, a diversified farming company. CannTrust and Elk Grove will each hold a 50% stake in a new entity.
CannTrust said it's looking to become a "trusted supplier" of high quality hemp-derived CBD formulations at scale. Management expects increasing demand for hemp-derived CBD formulations from both international retailers and product manufacturers.
Need more cannabis news?Check out all of our coveragehere.
Why It's Important
CannTrust CEO Peter Aceto said the company's launch of operations in the U.S. is "another bold move" intended to gain access to the "largest international CBD market in the world."
"We continue to focus on delivering on our vision of becoming a global provider of innovative cannabis-based and hemp-derived products," he said.
The cannabis company said it will invest up to $20 million through the end of 2020 to support its growth prospects in the U.S. The investment includes its share of the cultivation cost along with harvest and post-harvest processing for the joint venture. The capital investment is based on estimates for up to 300 acres for cultivation in 2020.
CannTrust shares traded higher by 4.5 percent at $5.15 in Wednesday's pre-market session.
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The Week In Cannabis: Colorado Hits B In Sales, Harborside In Canada, Kroger Embraces CBD, And More
CannTrust Reports 200% Year-Over-Year Growth In Dried Cannabis Sales
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© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Does Minsud Resources Corp. (CVE:MSR) Have A Particularly Volatile Share Price?
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If you're interested in Minsud Resources Corp. (CVE:MSR), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. The second type is the broader market volatility, which you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks on the market.
Some stocks are more sensitive to general market forces than others. Beta 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. A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.
See our latest analysis for Minsud Resources
Given that it has a beta of 1.85, we can surmise that the Minsud Resources share price has been fairly sensitive to market volatility (over the last 5 years). Based on this history, investors should be aware that Minsud Resources are likely to rise strongly in times of greed, but sell off in times of fear. 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 Minsud Resources fares in that regard, below.
Minsud Resources is a rather small company. It has a market capitalisation of CA$9.1m, which means it is probably under the radar of most investors. It has a relatively high beta, suggesting it is fairly actively traded for a company of its size. Because it takes less capital to move the share price of a small company like this, when a stock this size is actively traded it is quite often more sensitive to market volatility than similar large companies.
Since Minsud Resources has a reasonably high beta, it's worth considering why it is so heavily influenced by broader market sentiment. For example, it might be a high growth stock or have a lot of operating leverage in its business model. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as Minsud Resources’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Financial Health: Are MSR’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 MSR 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 MSR'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. |
Should You Buy Inter Pipeline Ltd. (TSE:IPL) For Its Dividend?
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Is Inter Pipeline Ltd. (TSE:IPL) a good dividend stock? How would you know? Dividend paying companies with growing earnings can be highly rewarding in the long term. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.
In this case, Inter Pipeline likely looks attractive to investors, given its 8.4% dividend yield and a payment history of over ten years. We'd guess that plenty of investors have purchased it for the income. There are a few simple ways to reduce the risks of buying Inter Pipeline for its dividend, and we'll go through these below.
Click the interactive chart for our full dividend analysis
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. In the last year, Inter Pipeline paid out 122% of its profit as dividends. Unless there are extenuating circumstances, from the perspective of an investor who hopes to own the company for many years, a payout ratio of above 100% is definitely a concern.
We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Unfortunately, while Inter Pipeline pays a dividend, it also reported negative free cash flow last year. While there may be a good reason for this, it's not ideal from a dividend perspective. It's good to see that while Inter Pipeline's dividends were not covered by profits, at least they are affordable from a cash perspective. Still, if the company repeatedly paid a dividend greater than its profits, we'd be concerned. Extraordinarily few companies are capable of persistently paying a dividend that is greater than their profits.
As Inter Pipeline's dividend was not well covered by earnings, we need to check its balance sheet for signs of financial distress. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA measures a company's total debt load relative to its earnings (lower = less debt), while net interest cover measures the company's ability to pay the interest on its debt (higher = greater ability to pay interest costs). Inter Pipeline has net debt of more than 3x its EBITDA, which is getting towards the limit of most investors' comfort zones. Judicious use of debt can enhance shareholder returns, but also adds to the risk if something goes awry.
Net interest cover can be calculated by dividing earnings before interest and tax (EBIT) by the company's net interest expense. Net interest cover of 5.81 times its interest expense appears reasonable for Inter Pipeline, although we're conscious that even high interest cover doesn't make a company bulletproof.
Consider gettingour latest analysis on Inter Pipeline's financial position here.
From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. For the purpose of this article, we only scrutinise the last decade of Inter Pipeline's dividend payments. During this period the dividend has been stable, which could imply the business could have relatively consistent earnings power. During the past ten-year period, the first annual payment was CA$0.84 in 2009, compared to CA$1.71 last year. This works out to be a compound annual growth rate (CAGR) of approximately 7.4% a year over that time.
Companies like this, growing their dividend at a decent rate, can be very valuable over the long term, if the rate of growth can be maintained.
Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Inter Pipeline has grown its earnings per share at 13% per annum over the past five years. With a payout ratio of 122%, Inter Pipeline is paying out substantially more than it earned in dividends. This is a risky practice.
We'd also point out that Inter Pipeline issued a meaningful number of new shares in the past year. Trying to grow the dividend when issuing new shares reminds us of the ancient Greek tale of Sisyphus - perpetually pushing a boulder uphill. Companies that consistently issue new shares are often suboptimal from a dividend perspective.
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. Inter Pipeline paid out almost all of its cash flow and profit as dividends, leaving little to reinvest in the business. Next, growing earnings per share and steady dividend payments is a great combination. Ultimately, Inter Pipeline comes up short on our dividend analysis. It's not that we think it is a bad company - just that there are likely more appealing dividend prospects out there on this analysis.
Earnings growth generally bodes well for the future value of company dividend payments. See if the 10 Inter Pipeline analysts we track are forecasting continued growth with ourfreereport on analyst estimates for the company.
Looking for more high-yielding dividend ideas? Try ourcurated list of dividend stocks with a yield above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
General Mills (GIS) to Gain From Blue Buffalo in Q4 Earnings
General Mills, Inc.GIS is scheduled to release fourth-quarter fiscal 2019 results on Jun 26. This provider of branded consumer foods has outperformed the Zacks Consensus Estimate by average of 11.1% in the trailing four quarters.Let’s see what’s in store for the company this time around.
General Mills, Inc. Price and EPS Surprise
General Mills, Inc. price-eps-surprise | General Mills, Inc. Quote
What to Expect?The Zacks Consensus Estimate for the fourth quarter has remained stable in the past 30 days at 76 cents compared with 79 cents reported in the year-ago quarter. Further, the consensus mark for revenues is $4,231 million, implying growth of 8.8% from the year-ago quarter’s reported figure.Factors Driving the QuarterGeneral Mills’ top line is likely to gain from Blue Buffalo’s inclusion in the quarter to be reported. Notably, the company had taken over this pet products company last year and is on track to integrate the same. Blue Buffalo has emerged into one of the leading brands in the pet food category and is aiding revenue growth. Management anticipates sales from Blue Buffalo and segment operating profit to grow at a significant pace in the fourth quarter, courtesy of distribution expansion in the Food, Drug and Mass (FDM) channel.Markedly, the Zacks Consensus Estimate for revenues at the Pet segment is pegged at $407 million for the quarter under review, suggesting sequential growth from roughly $347 million reported in the third quarter.Apart from this, General Mills is poised to gain from other core strategies to drive sales growth. To this end, the company is focused on solid innovations, efficient customer marketing and strong in-store execution to sharpen competitive edge. The company also focuses on driving growth across four differential global platforms, which include Haagen-Dazs ice cream, snack bars, Old El Paso Mexican food, and General Mills’ natural and organic food brands. Finally, the company’s commitment toward reshaping its portfolio via buyouts and divestitures is expected to yield results, evident from the aforementioned acquisition of Blue Buffalo.However, the company anticipates facing tough year-over-year comparisons in the quarter under review. This is expected to impact sales to some extent.Will Saving Efforts Battle Cost-Related Challenges?General Mills has been battling input cost inflation for a while now. High input costs weighed on the performance of the company’s segments during the third quarter of fiscal 2019. Management expects cost inflation to persist in fiscal 2019, stemming from increased logistic costs, and higher costs of grains, packaging and other commodities.This clearly raises concerns for the quarter to be reported. Nevertheless, we expect General Mills to get some respite from its strong cost-saving measures. The company expects to achieve cost savings through increased efficiency, reduced complexity through SKU optimization, supply-chain optimization and continued expansion of zero-based budgeting across the business, which will result in accelerated margin expansion. Additionally, the company is on track with its Holistic Margin Management (HMM), which is expected to aid margin expansion for Blue Buffalo in the fourth quarter. Also, management had earlier stated that it expects cost of goods HMM savings of roughly $450 million in fiscal 2019, which gives out positive signals for the to-be-reported quarter as well.What the Zacks Model UnveilsOur proven model shows a beat for General Millsthis earnings season. For this to happen, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.General Mills carries a Zacks Rank #2, which along with its Earnings ESP of +1.18% makes us reasonably confident of an earnings beat.Other Stocks Poised to Beat Earnings EstimatesConstellation Brands STZ has an Earnings ESP of +4.42% and a Zacks Rank #2. You can seethe complete list of today’s Zacks #1 Rank stocks here.Helen of Troy HELE has an Earnings ESP of +0.60% and a Zacks Rank #2.Phillip Morris PM has an Earnings ESP of +4.40% and a Zacks Rank #3.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 reportConstellation Brands Inc (STZ) : Free Stock Analysis ReportHelen of Troy Limited (HELE) : Free Stock Analysis ReportGeneral Mills, Inc. (GIS) : Free Stock Analysis ReportPhilip Morris International Inc. (PM) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Read This Before Buying mwb fairtrade Wertpapierhandelsbank AG (ETR:MWB) For Its Dividend
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Could mwb fairtrade Wertpapierhandelsbank AG (ETR:MWB) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter.
With only a three-year payment history, and a 2.6% yield, investors probably think mwb fairtrade Wertpapierhandelsbank is not much of a dividend stock. A low dividend might not be a bad thing, if the company is reinvesting heavily and growing its sales and profits. Some simple analysis can reduce the risk of holding mwb fairtrade Wertpapierhandelsbank for its dividend, and we'll focus on the most important aspects below.
Click the interactive chart for our full dividend analysis
Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. 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. mwb fairtrade Wertpapierhandelsbank paid out 59% of its profit as dividends, over the trailing twelve month period. This is a healthy payout ratio, and while it does limit the amount of earnings that can be reinvested in the business, there is also some room to lift the payout ratio over time.
Consider gettingour latest analysis on mwb fairtrade Wertpapierhandelsbank's financial position here.
Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. It has only been paying dividends for a few short years, and the dividend has already been cut at least once. This is one income stream we're not ready to live on. Its most recent annual dividend was €0.05 per share, effectively flat on its first payment three years ago.
Modest growth in the dividend is good to see, but we think this is offset by historical cuts to the payments. It is hard to live on a dividend income if the company's earnings are not consistent.
Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. It's good to see mwb fairtrade Wertpapierhandelsbank has been growing its earnings per share at 56% a year over the past 5 years. Earnings per share are sharply up, but we wonder if paying out more than half its earnings (leaving less for reinvestment) is an implicit signal that mwb fairtrade Wertpapierhandelsbank's growth will be slower in the future.
When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. First, we think mwb fairtrade Wertpapierhandelsbank has an acceptable payout ratio. We were also glad to see it growing earnings, but it was concerning to see the dividend has been cut at least once in the past. In summary, we're unenthused by mwb fairtrade Wertpapierhandelsbank as a dividend stock. It's not that we think it is a bad company; it simply falls short of our criteria in some key areas.
See if management have their own wealth at stake, by checking insider shareholdings inmwb fairtrade Wertpapierhandelsbank stock.
If you are a dividend investor, you might also want to look at ourcurated list of dividend stocks yielding above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Danniella Westbrook reveals plans to train as a therapist
Danniella Westbrook explained that she wants to retain as a therapist to help others (Photo: BBC) Danniella Westbrook has revealed plans to train as a therapist. The former EastEnders actress, who has been open about her struggles with drugs and alcohol in the past, explained how she now wants to help others overcome their demons. Appearing on the Victoria Derbyshire show, Westbrook, who played the role of Sam Mitchell in the BBC One soap, told the host how her new career will stop her from being tempted by drugs and alcohol in the future. Read more: 'EastEnders' star Danniella Westbrook given the 'all clear' following womb cancer battle “I think personally for me, the thing that can stop me is keeping in a programme, helping others, helping the newcomer and getting involved with working with a treatment centre.” Having already put the wheels in motion to help her achieve her aim, Westbrook continued to comment: “I'm hoping this September to start my therapist course so I can become a therapist. “I'm doing an NVQ [Level] 1 and 2 in social care so I can work for a detox centre. “My aim is to really get a treatment centre up and running in the next 12 months and get as many free beds as we can for people in areas that can't afford rehab because there's so many people out there crying out for it and young people as well.” During the interview, Westbrook also revealed that she attends AA meetings seven days a week. Recalling the moment she realised she needed to seek treatment again, the actress said: “I tried to kill myself daily, really through using and drinking alcohol. Danniella told Victoria about how she had overcome her battles after seeking treatment (Photo: BBC) “Also on top of that, I had the cancer diagnosis which I just ignored for 12 months until my son gave up his house and moved in with me and was constantly on at me and battling to try and get me to see what I was doing with my life.” Read more: Danniella Westbrook says her ex Brian Harvey 'is still sat in police cell' after late-night arrest Asked by Derbyshire about whether she thought she had been treated differently to others who had an addiction. “Of course there is. You know they'll say they're under pressure. It's just a phase they're going through. Story continues “Whereas with people like me, they're like, ‘well they're common and they're a crack head' or 'they're a drug addict'. It'll be stuff like that. “But at the end of the day, an addict is an addict is an addict no matter whether you're up here or down there. The same addiction eats you up in the same way.” |
Does ImmunoPrecise Antibodies Ltd. (CVE:IPA) Have A Particularly Volatile Share Price?
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If you own shares in ImmunoPrecise Antibodies Ltd. (CVE:IPA) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. In finance, Beta is a measure of volatility. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. The second sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market.
Some stocks see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated price movements. Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. To make good use of it you must first know that the beta of the overall market is one. A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.
View our latest analysis for ImmunoPrecise Antibodies
Looking at the last five years, ImmunoPrecise Antibodies has a beta of 0.87. The fact that this is well below 1 indicates that its share price movements haven't historically been very sensitive to overall market volatility. This means that -- if history is a guide -- buying the stock would reduce the impact of overall market volatility in many portfolios (depending on the beta of the portfolio, of course). 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 ImmunoPrecise Antibodies fares in that regard, below.
With a market capitalisation of CA$46m, ImmunoPrecise Antibodies is a very small company by global standards. It is quite likely to be unknown to most investors. It is not unusual for very small companies to have a low beta value, especially if only low volumes of shares are traded. Even when they are traded more actively, the share price is often more susceptible to company specific developments than overall market volatility.
Since ImmunoPrecise Antibodies is not heavily influenced by market moves, its share price is probably far more dependend on company specific developments. It could pay to take a closer look at metrics such as revenue growth, earnings growth, and debt. In order to fully understand whether IPA is a good investment for you, we also need to consider important company-specific fundamentals such as ImmunoPrecise Antibodies’s financial health and performance track record. I urge you to continue your research by taking a look at the following:
1. Financial Health: Are IPA’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here.
2. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
NVIDIA Pushes Self-Drive Efforts: Must INTC, QCOM, DXC Worry?
NVIDIA Corporation'sNVDA latest collaboration with Volvo to develop a scalable AI-based autonomous driving system is expected to boost presence of the former in the self-driving vehicle market.The companies will jointly develop end-to-end computing in autonomous vehicles using the NVIDIA’s Drive AGX Pegasus computing board.The offering will include accelerated computing technology in the datacenter for training of deep neural networks; large-scale simulation for hardware-in-the-loop testing and validation of autonomous vehicle systems; and rolling out the NVIDIA DRIVE platform in the vehicle.The partnership will not only help NVIDIA to expand customer base, but will help it tap the niche market for autonomous trucks. Per the latest report by Visiongain, the global Autonomous Trucks market is expected to reach $4.19 billion in 2019.Moreover, NVIDIA’s latest initiative will increase competition for tech giants, namely Intel INTC, Qualcomm QCOM and DXC Technology DXC in the self-driving vehicle space.
Year-To-Date Price Performance
NVIDIA’s Auto Partnerships Hold the KeyNVIDIA is working with more than 320 automakers, including Audi and Daimler’s Mercedes to develop and deploy AI systems for self-driving vehicles.Uber has been using NVIDIA’s AI computing technology in its fleet of self-driving vehicles for more than a year now. Meanwhile, Volkswagen has been working on creating new cockpit experiences and improving safety for its future vehicles by using NVIDIA’s DRIVE IX AI platform.Aurora is building a Level 4 and 5 self-driving hardware platform by using its NVIDIA DRIVE Xavier processor.Further, the company has partnered with Baidu BIDU and German auto supplier ZF Friedrichshafen to build a “production-ready AI autonomous vehicle platform” specially designed for the Chinese market.Additionally, Toyota has extended its partnership with NVIDIA to ramp up its autonomous vehicle development program.Intel, Qualcomm & DXC: Major CompetitorsIntel, thanks to its Mobileye acquisition, has become a close competitor to NVIDIA in the self-driving space.The low power consumption of Mobileye chips and ability to create maps for self-driving systems via its Road Experience Management platform has helped Intel to gain footprint in the market. Moreover, recently, Intel agreed to supply EyeQ5 chip in 8 million driverless vehicles for a leading European automaker.Qualcomm’s foray into the autonomous vehicle market is also a growing cause of concern for NVIDIA and Intel. In January this year, the company’s third-generation Snapdragon Automotive Cockpit Platform — an AI platform for building in-car experiences — was made available to the automotive industry.Moreover, vehicle partners, Audi, Ford and Ducati, has demonstrated how Qualcomm's 9150 C-V2X chipset can be used between vehicles for tasks like negotiating the right of way.Another company, which is vying for a position in the self-driving vehicle space is DXC Technology. The company recently signed a deal to acquire digital innovator Luxoft, which already has partners like Daimler. Daimler’s automotive platforms and IP include autonomous driving platforms, human machine interface, tool chain, digital cockpit, user experience, and telematics and IoT for connected vehicles.The combination of Luxoft’s digital engineering capabilities and DXC’s technological expertise is expected to strengthen the latter’s presence in the automotive industry.ConclusionNVIDIA currently has the competitive edge in the self-driving space due to its expansive automotive partnerships and its ability to offer end-to-end solutions.NVIDIA, Intel and Qualcomm currently carry a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.DXC Technology has a Zacks Rank #5 (Strong Sell).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 reportBaidu, Inc. (BIDU) : Free Stock Analysis ReportQUALCOMM Incorporated (QCOM) : Free Stock Analysis ReportIntel Corporation (INTC) : Free Stock Analysis ReportNVIDIA Corporation (NVDA) : Free Stock Analysis ReportDXC Technology Company. (DXC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Restaurants Hungry for Technology Amid Risks: 4 Key Picks
The U.S. restaurant industry has been showing irregularities in terms of comps growth. While comps have grown in the last seven of the eight months, the metric was negative due to weather-related woes in the month of February. Per tdn2k’s Restaurant Industry Snapshot, restaurant sales regained momentum in May after a disappointing April. Comps grew 1.1% in the month of May.
According to an article by Restaurant Business, the fast-casual restaurant space is likely to record sales growth of 8.3% in 2019 compared with 8% in 2018. Casual dining is anticipated to experience a 3.4% rise in current-year sales, calling for an improvement from the previous year’s 3.2%. Fine-dining restaurants will also witness a rise of 5.2%, compared with growth of 5% in 2018.
This implies that although the industry is exposed to certain short-term risks like declining traffic, it is likely to strive on other factors over the long haul.
What’s Plaguing the Industry Now?
A pressing problem for restaurants is the persistent traffic erosion since the last recession. The industry’s sales are supported by increased average check but not guest count. Same-store traffic fell 2.1% during May and the trend is likely to persist in the near term.
Secondly, restaurateurs are possibly up against an imminent rise in food and wage costs, which will eat into profits. Also, the recent tariff strife with China and Mexico has been restraining capital investment, which again will affect most restaurant companies. Fluctuating consumer spending due to trade war qualms is also quite a bother.
Thirdly, recent data shows that the rapid mushrooming of restaurants in the United States is inducing fierce competition in the market. Rivalry from sectors like grocery store, prepared foods and convenience stores is also rife. Such aggressive competition has compelled Starbucks Corporation SBUX to pull down the shutters on a few U.S. stores.
Also, a conflict between consumers and restaurateurs over high delivery costs is pretty apparent. The escalated charges are however a result of third-party sharing of delivery revenues, which shrink restaurant operators’ margins.
How Are a Few Staying Afloat?
Many restaurant operators have prevailed over the near-term hurdles, courtesy of a steady shift toward embracing technology. Consumer preferences have changed over time and demand for digital and delivery services have grown exponentially. Also, loyalty programs, kiosks, kitchen display system and table-side ordering are much in demand.
Per The NPD Group, foodservice delivery services have contributed significantly to restaurant sales in the past few years. Digital orders increased 23% over the past four years. Clearly, online service is no longer an extravagant feature but is the need of the hour. Reflective of this, Morgan Stanley expects the food delivery industry to account for 11% of all restaurant sales by 2020.
A few restaurant giants are fine examples of how technology has helped in a big way. For instance, Mc Donald’s MCD and Domino’s DPZ thrive on innovation and large-scale digitization. Meanwhile, Domino’s recently announced a partnership with Nuro, a robotic company, to enhance delivery services. Also, Dunkin’ Brands DNKN has expanded its delivery services with the Grubhub collaboration.
Key Picks
Despite the bottlenecks, the restaurant industry has its own share of positives. With the help of the Zacks Stock Screener, we have zeroed in on four restaurants stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy). These companies display notable estimated earnings growth for 2019 and are well ahead of others in the digitization game. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Yum China Holdings, Inc.YUMC holds a leadership position in the Chinese restaurant space when it comes to delivery, mobile order and pay, and loyalty membership. The company is increasingly shifting toward digital and content marketing to expand its customer base. It has adopted a high-grade delivery strategy that covers collaborating with aggregators to source traffic and fulfilling orders through the company’s KFC riders. This is expected to help the company drive volume and leverage the extensive network to control quality.
The company carries a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings is pegged at $1.67, calling for a year-over-year increase of 9.2%.
Noodles & CompanyNDLS carries a Zacks Rank #1. The company is expected to witness earnings growth of 700% on a year-over-year basis in 2019. The company is known for its undivided focus on off-premise sales. Exclusive of delivery, digital ordering sales and quick pick-up increased 32% in the first quarter of 2019 from the prior year, accounting for 17% of sales.
Chipotle Mexican Grill, Inc.CMG carries a Zacks Rank #2. The Zacks Consensus Estimate for 2019 earnings calls for growth of 43.5% year over year. The company has redesigned and simplified its online ordering site, enabled online payment for catering, online meal customizations and collaborated with several well-known third-party providers for delivery. The first quarter of 2019 particularly saw a strong uptick in delivery sales, with digital sales rising 101% year over year.
The Cheesecake Factory Incorporated’s CAKE technology-enabled initiatives are encouraging. In the third quarter of 2018, the company signed an exclusive national delivery partnership with DoorDash. It expects to reap benefits from these collaborative marketing opportunities. The company is also witnessing incremental sales from its delivery service, which continues to be rolled out nationwide. The company has also been working on improving its to-go business, including online ordering capability. This section is a major contributor to growth in the company’s strong off-premise sales channels. Resultantly, its off-premise business contributed 14% to total sales in 2018 compared with 12% in 2017. Also, in the first quarter of 2019, off-premise business accounted for 16% of total sales.
The consensus estimate for current-year earnings is $2.66, calling for growth of 9.5% from the year-ago level. Cheesecake Factory carries a Zacks Rank #2.
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.
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 reportDomino's Pizza Inc (DPZ) : Free Stock Analysis ReportChipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis ReportStarbucks Corporation (SBUX) : Free Stock Analysis ReportThe Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis ReportMcDonald's Corporation (MCD) : Free Stock Analysis ReportDunkin' Brands Group, Inc. (DNKN) : Free Stock Analysis ReportYum China Holdings Inc. (YUMC) : Free Stock Analysis ReportNoodles & Company (NDLS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
The 2020 Ford Mustang Shelby GT500 Makes an Insane 760 Horsepower
Photo credit: Greg Pajo - Car and Driver From Car and Driver The new Ford Mustang Shelby GT500 ’s supercharged 5.2-liter V-8 engine makes 760 horsepower and 625 lb-ft of torque. Ford had originally claimed “700-plus-hp” for this new top-dog Mustang, but it's clear now that that claim was conservative. This makes the GT500 more powerful than the top 650-hp Chevy Camaro ZL1, although it can’t quite match the top Dodge Challenger Hellcat Redeye, which has 797 hp. We’ve been waiting for these important numbers for a while now: Ford has finally shared the official power and torque figures for the new 2020 Shelby GT500 Mustang . Its supercharged 5.2-liter V-8 makes 760 hp and 625 lb-ft of torque. Wowza. That makes it the most powerful factory Mustang Ford has ever built, by a long shot. That’s considerably more power than the 720 hp we predicted when the car debuted in January without any official numbers from Ford, although it’s a bit less torque than the 650 lb-ft we surmised this engine would churn out. But what really matters is that it beats its crosstown rival the Chevy Camaro. The most powerful version of that rival pony car, the ZL1 , can only manage 650 hp from its supercharged 6.2-liter V-8. That being said, Dodge is still winning in the horsepower wars despite Ford's latest missile strike; the Challenger and Charger Hellcat Redeye pump out 797 horsepower from their supercharged 6.2-liter V-8 engine. Photo credit: Ford These power figures are a crucial puzzle piece in new Mustang Shelby GT500's story. We already knew that it will offer a seven-speed dual-clutch automatic as its only transmission choice, that it's claimed to run the quarter-mile in less than 11 seconds, and that its top speed will be governed at 180 mph. Standard Michelin Pilot Sport 4S summer tires, sized 305/30ZR-20 in front and 315/30ZR-20 in the rear, will put all this power to the ground, while an optional Carbon Fiber Track package brings carbon-fiber wheels wearing Michelin Pilot Sport Cup 2 track tires, an adjustable carbon-fiber wing, a rear-seat delete, and dive planes up front. Story continues Now the only number that remains to be revealed is the 2020 Ford Mustang Shelby GT500's starting price, which Ford will share in the coming months before the car goes on sale. ('You Might Also Like',) Unclogging Streets Could Help City Dwellers Save 125 Hours a Year The 10 Cheapest New Cars of 2018 Get Out Early, Get In Late: What to Know About Auto Lease Transfers |
A Better Way To Think About Energy ETFs
The energy sector has had its share of thrills and spills this year. TheEnergy Select Sector SPDR(NYSE:XLE), the largest exchange traded fund devoted to that sector, is up 8.75% year to date even with a second-quarter decline of nearly 6%.
Investors could be doing better by focusing on the midstream segment of the energy patch.
Look at theAlerian Energy Infrastructure ETF(NYSE:ENFR), which is up nearly 17% this year. ENFR tracks the Alerian Midstream Energy Select Index and is designed to provide exposure to “midstream energy infrastructure companies, including corporations and master limited partnerships (MLPs), engaged in pipeline transportation, storage, and processing of energy commodities,”according to ALPS.
A primary advantage of ENFR is yield, as in it yields a lot more than XLE. ENFR's dividend yield of 5.18% is 173 basis points above the comparable yield on XLE.
“An MLP or midstream product will typically provide a greater yield than the majors or a broad energy sector product, while still providing energy exposure,”according to Alerian research. “Investment in an MLP or MLP-focused product may provide the added benefit of tax-deferred income.”
Why It's Important
Broadly speaking, the energy sector is not always viewed as defensive, but there are some members of the group that have defensive traits. By virtue of their heft,Exxon Mobil Corp.(NYSE:XOM) andChevron Corp.(NYSE:CVX), the two largest domestic oil companies and XLE's top two holdings, are defensive. ENFR constituents are defensive for other reasons.
“Midstream MLPs and C-Corps are defensive by nature of their business models, collecting a fee for each unit of energy transported, stored, or processed,” said Alerian. “This limits midstream’s exposure to commodity price fluctuations in terms of cash flows, though prices can impact sentiment.”
What's Next
As highlighted by the aforementioned dividend yield, ENFR is a credible income play even though some MLPs have pared payouts in recent years.
“That said, some midstream MLPs also boast lengthy track records for distribution increases, such asEnterprise Products Partners(EPD), which has grown its distribution for 20 straight years,” according to Alerian.
Enterprise Products is ENFR's third-largest component at a weight of almost 8%.
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© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Is It Too Late To Consider Buying Summit Hotel Properties, Inc. (NYSE:INN)?
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Summit Hotel Properties, Inc. ( NYSE:INN ), which is in the reits business, and is based in United States, saw significant share price movement during recent months on the NYSE, rising to highs of $12.56 and falling to the lows of $10.99. 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 Summit Hotel Properties's current trading price of $11.81 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 Summit Hotel Properties’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 Summit Hotel Properties Is Summit Hotel Properties still cheap? Great news for investors – Summit Hotel Properties is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $14.84, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Summit Hotel Properties’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility. What does the future of Summit Hotel Properties look like? NYSE:INN Past and Future Earnings, June 19th 2019 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for Summit Hotel Properties, at least in the near future. Story continues What this means for you: Are you a shareholder? Although INN is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. I recommend you think about whether you want to increase your portfolio exposure to INN, or whether diversifying into another stock may be a better move for your total risk and return. Are you a potential investor? If you’ve been keeping an eye on INN for a while, but hesitant on making the leap, I recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future. Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Summit Hotel Properties. You can find everything you need to know about Summit Hotel Properties in the latest infographic research report . If you are no longer interested in Summit Hotel Properties, you can use our free platform to see my list of over 50 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 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 You Imagine How Inspire Medical Systems's (NYSE:INSP) Shareholders Feel About The 45% Share Price Increase?
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). To wit, the Inspire Medical Systems, Inc. ( NYSE:INSP ) share price is 45% higher than it was a year ago, much better than the market return of around 2.3% (not including dividends) in the same period. That's a solid performance by our standards! We'll need to follow Inspire Medical Systems for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long. See our latest analysis for Inspire Medical Systems Inspire Medical Systems isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size. In the last year Inspire Medical Systems saw its revenue grow by 71%. That's well above most other pre-profit companies. The solid 45% share price gain goes down pretty well, but it's not necessarily as good as you might expect given the top notch revenue growth. So quite frankly it could be a good time to investigate Inspire Medical Systems in some detail. Since we evolved from monkeys, we think in linear terms by nature. So if growth goes exponential, opportunity may exist for the enlightened. You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow). NYSE:INSP Income Statement, June 19th 2019 Balance sheet strength is crucual. It might be well worthwhile taking a look at our free report on how its financial position has changed over time . Story continues A Different Perspective Inspire Medical Systems boasts a total shareholder return of 45% for the last year. We regret to report that the share price is down 0.3% over ninety days. Shorter term share price moves often don't signify much about the business itself. Before spending more time on Inspire Medical Systems it might be wise to click here to see if insiders have been buying or selling shares. We will like Inspire Medical Systems better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor 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. |
Russia to Adopt Crypto Legislation Within Two Weeks: Deputy Finance Minister
Russia'sparliament, the State Duma, will adopt the country’s majorcryptobill “On Digital Financial Assets” (DFA) in the next two weeks, according to a local senior finance official. The news was reported by Russiangovernment-backed news agencyTASSon June 19.
Russia's deputy finance minister, Alexei Moiseev, revealed that the State Duma is currently considering the DFA, and is expected to adopt the bill in the second reading within the next two weeks.
Moiseev added that the authority has approved separate legislation for initial coin offerings, which will be a part of Russia’s law oncrowdfunding.
Russia will thus have two bills related to cryptocurrencies, the DFA and the law on crowdfunding, Moiseev stated, adding that the DFA is expected to be approved in the version that has been prepared for the second reading.
If adopted as expected by the official, Russia’s crypto regulation will come in accordance with the order of the country’s president,Vladimir Putin, whorequiredthe state to enforce regulation for the crypto industry by July 1, 2019.
Recently, TASS hadreportedthat Russia was postponing the adoption of crypto legislation due to certain terminology requirements from the Financial Action Task Force on Money Laundering, as the bill lacked key terms such as “cryptocurrency.”
• Russia Will Not Legalize Facebook’s Cryptocurrency, Official Says
• US CFTC Brings Action Against $147 Million Bitcoin Investment Scheme
• Russian Parliament Considers Imposing Fines on Crypto Mining by End of June
• US Congressman Seeks Tax Clarity for Cryptocurrencies |
Can Rite Aid (RAD) Beat on Earnings in Q1 Despite Soft View?
Rite Aid Corporation RAD is slated to report first-quarter fiscal 2020 results on Jun 26. The company pulled off positive bottom-line surprises in the last two quarters. Its average beat is 77.2% for the trailing four quarters. The Zacks Consensus Estimate for the fiscal first-quarter earnings is pegged at 2 cents, whereas it witnessed loss per share of 20 cents in the year-ago quarter. Estimates remained unchanged in the last 30 days. Further, the consensus estimate for revenues stands at $5.37 billion, which suggests a decline of 0.3% from the year-ago reported figure. Rite Aid Corporation Price and EPS Surprise Rite Aid Corporation Price and EPS Surprise Rite Aid Corporation price-eps-surprise | Rite Aid Corporation Quote Let’s see how things are shaping up prior to this announcement. Factors at Play Rite Aid is progressing well on its growth strategy, which focuses on leveraging unique opportunities such as EnvisionRxOptions PBM, enhancing front-end channels and transforming processes to deliver operational efficiency. Further, the company is focused on leveraging retail pharmacies as well as health and wellness offerings. These efforts have significantly contributed to the company’s top and bottom-line growth in the past, which is likely to be reflected again in the upcoming quarterly results. The company’s quarterly results also validated strong progress in boosting retail and pharmacy benefits management businesses through a successful immunization business and other clinical pharmacy services. This has resulted in significant rise in the prescription count at comparable stores as well as increased prescription sales over the past several quarters. With continued strength in retail and pharmacy sales, we expect this trend to continue in the first quarter of fiscal 2020. Furthermore, with a view to capturing the demand for CBD products, the company plans to start selling CBD creams, lotions and lip balms at stores in Oregon and Washington, beginning April 2019. Additionally, the company remains keen on boosting customer experience, both online and in-store, as part of its efforts to boost market share. It has been doing this through the remodeling of wellness stores. Further, the company shifted e-commerce fulfillment from a third-party provider to its own distribution network to boost customer experience. This has reduced fulfillment lead time, lowered costs and helped to increase online offerings by 25%. These actions should again bolster top-line growth in the to-be-reported quarter. However, the company’s soft outlook for fiscal 2020 is a cause of concern for investors. Revenues are anticipated to be $21.5-$21.9 billion for fiscal 2020. Further, it now envisions the bottom line between loss of 1 cent per share and earnings of 4 cents. Further, softness in tobacco sales, owing to regulation changes, which restricted selling tobacco in some New York stores and in over-the-counter cough-cold and flu products, is affecting front-end sales. This along with higher expenses in distribution centers, particularly higher labor costs due to the aforementioned realignment of stores, hurt overall gross profit in fourth-quarter fiscal 2019. Persistence of these headwinds may be a threat to the company’s margins again in first-quarter fiscal 2020. A Look at the Zacks Model Our proven model does not conclusively predict that Rite Aid is likely to beat estimates this quarter. This is because a stock needs to have — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Rite Aid currently has a Zacks Rank #2, which increases chances of an earnings beat. But its Earnings ESP of 0.00% makes surprise prediction difficult. Stocks Poised to Beat Earnings Estimates Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat: Constellation Brands Inc STZ currently has an Earnings ESP of +4.42% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here . Helen of Troy Limited HELE presently has an Earnings ESP of +0.60% and a Zacks Rank #2. Darden Restaurants, Inc. DRI currently has an Earnings ESP of +1.16% and a Zacks Rank #3. 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. 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 report Constellation Brands Inc (STZ) : Free Stock Analysis Report Helen of Troy Limited (HELE) : Free Stock Analysis Report Rite Aid Corporation (RAD) : Free Stock Analysis Report Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research |
MoneyGram soars 168% from Ripple investment
On Tuesday, money-transfer company MoneyGram saw its stock soar an eye-popping 168% after banking software company Rippleannouncedit will buy $30 million of MoneyGram shares at a huge premium of $4.10 per share, with the option to buy another $20 million worth of shares over the next two years. In return, MoneyGram (MGI) has made Ripple its primary partner for cross-border payment settlement using digital assets.
Suddenly, crypto looks cool again.
After the massive run-up in price of all the top cryptocurrencies in 2017, including bitcoin (BTC), ether (ETH), and ripple (XRP), prices plunged across the board in 2018.
Now, halfway through 2019, coins are up and excitement is returning, although the top cryptocurrencies have also appeared to decouple more than in the past—bitcoin is up far more than anything else. Bitcoin is up 140% this year so far; ether is up 87%, and XRP is up 17%.
The fact that a partnership and investment from Ripple had the power to send MoneyGram up a staggering 168% on Tuesday is a sign of bullishness for the space. (By Wednesday morning in premarket, shares of MoneyGram were beginning to fall back to earth, but the point was made.)
And Ripple’s announcement of its MoneyGram deal came just one day before Facebook’s announcement ofCalibra, its first crypto wallet, to store and sendLibra, a new cryptocurrencysupported by Facebook, Visa, MasterCard, PayPal, Stripe, Uber, Lyft, eBay, Spotify, and more.
It all adds up to hot crypto action involving publicly-traded, household-name companies, still a rare thing for an industry whose biggest players are private startups like Coinbase.
Ripple sells software to banks and financial institutions for faster settling of cross-border payments. Its two main products are called xCurrent and xRapid, and the xRapid product relies on the cryptocurrency XRP.
Ripple, the company, and XRP, the asset, are separate things, but they are often conflated, particularly since Ripple owns 60% of the supply of XRP tokens, which leads cryptocurrency purists to argue that XRP is not sufficiently decentralized as bitcoin is.
As a result, Ripple CEO Brad Garlinghouse told Yahoo Finance on stage at the All Markets Summit: Crypto last year, “There’s a lot of FUD about XRP.” (FUD is fear, uncertainty, and doubt.) Ripple’s former chief market strategist Cory Johnson also identified to Yahoo Finance last year the “religious-like fervor” around XRP.
Over the past couple years, Ripple hassteadily added a large number of banking clients, but most are using xCurrent, not the product that runs on XRP. Last year,Western Union said it was testing out xRapid, which was taken as a big win for both Ripple and XRP.
The deal with MoneyGram will “focus” on xRapid, Ripple says. The company, in its announcement, is touting that XRP “remains the most efficient digital asset for settlement, with transaction fees at just fractions of a penny, compared to other digital asset fees of about $30 per transaction.”
—
Daniel Roberts covers bitcoin and blockchain at Yahoo Finance. Follow him on Twitter at @readDanwrite.
Read more:
Facebook’s crypto play is called Calibra, will launch in 2020
Cryptocurrency CEO who paid $4.6M for lunch with Buffett: 'It might be unrealistic'
SEC lawsuit against Kik has major implications for crypto industry
Exclusive: SEC quietly widens its crackdown on ICOs
There are now two 2020 candidates accepting crypto donations
JPMorgan blockchain chief: Why we launched our own cryptocurrency
Read the latest financial and business news from Yahoo Finance
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Ed Sheeran wins planning battle to keep pub sign on his property
Singer Ed Sheeran poses for photographers upon arrival at the premiere for 'Yesterday' in London, Tuesday, June 18, 2019. (Photo by Joel C Ryan/Invision/AP) Ed Sheeran has won his fight to keep a pub sign dedicated to his wife which he put up on his Suffolk estate without permission. The Castle On The Hill singer had been ordered to take down the signs on the Grade II-listed barn next to his mansion which read The Lancaster Rock in tribute to his wife Cherry Lancaster Seaborn. East Suffolk Council have now backtracked on their original decision, saying the signage "is not illuminated and it would not impact on the amenity of the neighbouring properties". Read more: Ed Sheeran launches Heinz Tomato Edchup and 5 other bizarre celebrity endorsements A council spokesperson told Sky News: "The Listed Building Consent to retain both the fascia sign and hanging sign was permitted through the Councils Scheme of Delegation on the 17 June. "No objections were received and it was decided that the signs would not cause harm to the character and appearance of the curtilage listed building nor the setting of the adjacent listed building. "Neither are the signs considered to harm the amenity of the neighbouring properties." Ed Sheeran originally put up the pub signs without permission from the council (Credit: East Suffolk Council) Sheeran, 28, had previously been ordered to remove the 4 metre long plaque and a swinging pub-style sign on the barn - which serves as his own private watering hole - in April this year, when it was deemed unauthorised signage. He was also told to remove or seek planning for a sauna constructed from a caravan that was located next to his pond. The Perfect singer has a running history with the planning department at East Suffolk Council regarding developments to his sprawling estate. In June last year he was refused planning permission for a proposed chapel in his grounds, which it was believed he had hoped to hold his wedding in. Sheeran stated: "It is every person's right to be able to have a place of retreat for contemplation and prayer, for religious observance, celebration of key life and family milestones, marriages, christenings and so forth." Read more: Ed Sheeran on course to be billionaire before turning thirty Story continues As part of the planning process for the chapel experts were called in to establish whether there were great crested newts in an existing pond located close to where the chapel would have been built. Great crested newts are a protected species in Britain. But the plan was ultimately rejected on the grounds that the structure would cause "unsatisfactory visual impacts" and create "the impression of a second village church". And there were also objections from nearby residents to his larger kidney-shaped pond created on the estate, which neighbours claimed was actually a swimming-pool and raised fears it would be used for a "wild lifestyle." The pond was given the all clear in March this year. |
Wall Street cautious ahead of Fed policy statement
By Shreyashi Sanyal
(Reuters) - Wall Street's main indexes took a pause on Wednesday, after a rally the previous day, as investors held back from making big bets ahead of the Federal Reserve's policy statement that is expected to lay the groundwork for future interest rate cuts.
Markets have climbed this month, with the S&P 500 index gaining 6% so far and 1% away from its all-time high hit in early May, fueled by hopes of a rate cut.
The Fed's statement and new economic projections are scheduled to be released at 2 p.m. ET (1800 GMT), providing investors an opportunity to gauge the impact of a prolonged U.S.-China trade conflict, President Donald Trump's continued demands for a rate cut and softer-than-expected economic data on monetary policy.
The U.S. central bank will likely leave rates unchanged, but the market is factoring in a cut as soon as next month. Fed Chairman Jerome Powell will hold a press conference at 2:30 p.m. ET (1830 GMT).
"There is a sense of caution, investors are not willing to take too much risk because there seems to be so much ambiguity on whether there is going to be a rate cut or hike in this meeting," said Matt Ruffalo, senior strategist at Clarfeld Financial Advisors.
"It is very important for Powell to be balanced in his comments and not tip the scale in any direction. More so, investors are focused on what course of policy action needs to be taken going forward."
U.S. Treasury yields rose on Wednesday, tracking the European market, after steep falls the previous day, as investors rebalanced positions ahead of the Fed decision.
The financial sector gained 0.49%, with bank stocks rising 0.53%.
At 12:53 p.m. ET the Dow Jones Industrial Average was up 14.70 points, or 0.06%, at 26,480.24 and the S&P 500 was down 0.77 points, or 0.03%, at 2,916.98.
The Nasdaq Composite was down 5.34 points, or 0.07%, at 7,948.54.
The healthcare sector rose 0.41%, helped by gains in UnitedHealth Group Inc, Pfizer Inc and Allergan Plc.
Allergan jumped 5.64% after the drugmaker said its constipation drug, jointly developed with Ironwood Pharmaceuticals Inc, improved symptoms in patients suffering from irritable bowel syndrome with constipation.
Adobe Inc gained 4.63% after the Photoshop software provider beat analysts' estimates for quarterly profit and revenue.
Advancing issues outnumbered decliners for a 1.03-to-1 ratio on the NYSE and a 1.11-to-1 ratio on the Nasdaq.
The S&P index recorded 19 new 52-week highs and two new lows, while the Nasdaq recorded 44 new highs and 50 new lows.
(Reporting by Shreyashi Sanyal and Aparajita Saxena in Bengaluru; Editing by Sriraj Kalluvila and Shounak Dasgupta) |
How to Get Your Credit Card's Annual Fee Waived
Ideally, a credit card offers the rewards and benefits you're seeking at little to no cost. According to a 2017 Experian credit card survey , 54% of consumers look for cards with no annual fee, but 45% of respondents also want a card that offers rewards. Although there are rewards credit cards on the market that don't impose an annual fee, some of the most competitive rewards cards charge annual fees, which can be as high as $550. But there's a chance you can have it both ways if you: -- Just ask -- Leverage your loyalty -- Inquire about specific card use -- Compare offers -- Call to cancel your account [ Read: No-Annual-Fee Credit Cards. ] 5 Ways to Get Your Credit Card's Annual Fee Waived Although you're never guaranteed to have your account's annual fee waived, some experts have had success with a few strategies. Just ask. When reaching out to your card issuer, simply state that you'd like to have your credit card annual fee waived. Ask if the representative can help you with your request and leave it at that. "It helps to be nice," says Rachel Richards, a former financial advisor and author of the book "Money Honey." "These reps deal with angry people calling all day. Sometimes it's refreshing for them to hear someone more pleasant, which in turn makes them more willing to help." Leverage your loyalty. If asking point-blank doesn't work, move on to this next approach: Justify why you deserve to have your annual fee waived. Mainly, this tactic showcases that you're an ideal cardholder who the company wants to retain. "Give reasons why you're asking for (the waiver)," says Allan Liwanag, founder of the personal finance blog The Practical Saver. "Tell them how their cards are valuable to you." Whether you've been an active user for many years or it's your go-to credit card, explain why you've earned a pass. Your activity, including regular use and on-time payments, might be enough to waive the annual fee for the year. Inquire about specific card use. A credit card issuer might be more willing to waive your annual fee if you do something for it in return. Story continues "When I asked for a waiver, my credit card company told me that if I spent $150 or more in the next 30 days, then it would give me a credit equal to the upcoming annual fee," says Liwanag. "Because I was using it consistently, I was able to spend over $150 easily and got my credit." Before following through on this type of offer, make sure you can afford the conditions. For example, don't put additional charges on your card to meet a purchase requirement for a waiver if you can't pay off the balance in full. Getting hit by interest charges eats into the savings you'd receive from waived annual fees. Compare offers. Doing research about your card's competitors ahead of time might help in your negotiations. See whether there are competing offers for a zero-annual-fee card, a lower-annual-fee card or even a card that waives the annual fee for the first year of a new account. If the competing card has similar benefits as your current card, mention it during your call. Briefly describe the offer from the other company and note that you plan to open an account with another issuer if the annual fee can't be waived. There's no guarantee your issuer will relent, but it's worth a shot, especially if you have another viable credit card alternative lined up. Call to cancel your account. If you're on the fence about even keeping the card, let your issuer know that. Clint Proctor, founder of the personal finance website The Wallet Wise Guy, did just this when his card's $69 annual fee approached its renewal. "The first time I was able to get a credit card's annual fee waived, it happened by accident," says Proctor. "I actually was calling to cancel the card before the annual fee hit. But the customer service representative offered to waive the annual fee to get me to stay as a cardholder." Since that fortuitous call, he's repeated the same process twice. But Proctor warns that you should be fully prepared to close the account when trying this approach. "There's been plenty of times that I've called to cancel cards and wasn't extended any offer whatsoever," says Proctor. "It's a bit of a roll of the dice." [ Read: Best Rewards Credit Cards. ] Other Options If You're Unsuccessful Depending on which credit card you have, annual fees can really dig at your finances. But there are alternatives to consider if your card issuer won't budge on waiving your annual fee. Pay the fee using your rewards. You've likely spent a good amount of money to earn the rewards points on your account. But those points might come in handy if you desperately don't want to spend additional cash on the annual fee. For example, if you can apply cash back or a statement credit to your account, you could cover the fee if you have enough rewards built up. Convert to another credit card. Not all credit cards are worth the energy in negotiating the annual fee. If your issuer has another card product worth switching to, consider downgrading to avoid the fee. To decide if this approach makes sense for you, assess which of your card's benefits you actually use and whether the card is truly offering you value. Riley Adams, a Louisiana CPA and founder of the personal finance blog Young and the Invested, performed a purge of his many credit card accounts after using them to build his credit early in his career. He successfully got the annual fee on an airline co-branded card waived two years in a row. However, he realized that he rarely used the card and didn't feel it was worth the effort to waive the annual fee another year. Instead, he asked the issuer to convert the account from an airline co-branded card to a standard one without an annual fee. Although he lost the ability to earn miles directly with the airline, it actually worked out in his favor by widening his flight options when traveling between school and home. To further his savings on annual fees, he continued converting other low-value cards to no-fee credit cards. He was able to get a credit increase along the way, which helped his credit score . [ Read: Best Cash Back Credit Cards. ] Open a different credit card. Your final option is to move on from your annual-fee card. You can consider the research you've done on competing cards and search for a card with no annual fee but with the basic benefits you need. If there's an available promotion that waives the annual fee for the first year, for example, weigh the pros and cons of the card's benefits and rewards structure, and whether it's worthwhile to pay the annual fee once the promotion period expires. Of course, you can always try your luck negotiating to have the annual fee on the new card waived, if you're up to the task. More From US News & World Report How Credit Cards Affect Your Credit Score Can You Have Two of the Same Credit Card? Are You Missing Out on Lucrative Credit Card Rewards? |
Carube Signs Agreement for the Sale of Six Non-Core Exploration Licences
Initial cash payments total $US210,000
Toronto, Ontario--(Newsfile Corp. - June 19, 2019) -Carube Copper Corp.(TSXV: CUC) ('Carube' or 'the Company') is pleased to announce the Company has signed an Agreement with Geophysx Jamaica Ltd ('Geophysx') pursuant to which Geophysx has agreed to acquire six of the Company's Special Exclusive Prospecting Licenses ('SEPLs') located in Jamaica, West Indies. The SEPLs contain early stage copper-gold exploration projects and includes the Belvedere, Mount Royal, Mount Ogle, Berkshire Hall, Windsor Castle and the Shirley Castle SEPLs. (locations here) Geophysx is a private, Jamaica based mineral exploration company focused on the exploration and development of base and precious metal deposits. The completion of the transaction is subject to certain conditions as described below.
Commercial Terms Overview.
Pursuant to this Agreement, Geophysx will acquire a 100% interest in each of the Projects subject to the following (all dollar amounts in USD):
• Geophysx will make the following cash payments, totalling $210,000 (the "Purchase Price").On signing, Geophysx will pay to the Company the sum of $5,000.On successful transfer of title to Geophysx, Geophysx will pay from Trust, $205,000
• Carube retains an NSR on the four SEPL's. Geophysx will have the right to acquire a portion of the NSRs for cash consideration.
• Geophysx will pay Carube cash payments on production milestones that could total $240,000
Mr. Stephen Hughes, CEO, commented: "The signing of this agreement is just another step to position Carube for near term growth and creating long-term value for all stakeholders. Completing the transaction will provide the Company with additional cash to continue the exploration development of the company's highly prospective Main Ridge and Bellas Gate exploration projects and aid in the global search for advanced stage copper - gold assets. The sale of these SEPL's is consistent with the company's strategy of monetizing value from within its non-core assets and the vision of building a successful mid tier copper-gold company."
The transaction is expected to close on or before June 30th2019
ABOUT CARUBE COPPER
Carube Copper is focused on creating substantive long-term value for its shareholders through the discovery and development of world class copper and gold deposits. Carube currently holds a 100% interest in 11 licenses covering 535 km2of highly prospective copper-gold terrain in Jamaica, and a 100% interest in three porphyry copper-gold properties covering 492 km2within the Cascade Magmatic Arc in southwestern British Columbia. Carube is actively searching for additional high potential copper and gold properties to add to its portfolio.
Stephen Hughes, CEO and President +1 (647) 517-4574 •shughes@carubecopper.comJeff Ackert, Vice President, Business Development • +1 (647) 957-2249 •jackert@carubecopper.comwww.carubecopper.com
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
DISCLAIMER & FORWARD-LOOKING STATEMENTS
This news release includes certain "forward-looking statements" which are not comprised of historical facts. Forward-looking statements are based on assumptions and address future events and conditions, and by their very nature involve inherent risks and uncertainties. Although these statements are based on currently available information, Carube Copper Corp. provides no assurance that actual results will meet management's expectations. Factors which cause results to differ materially are set out in the Company's documents filed on SEDAR. Undue reliance should not be placed on "forward looking statements".
IMPORTANT NOTICE:Carube Copper hereby incorporates the entire disclaimer set forth on its website athttp://www.carubecopper.com/uploads/1/6/5/2/16521880/disclaimers-and-forward-statements.pdf
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45728 |
Adial Pharmaceuticals' Chief Medical Officer Presents AD04 at the Scientific Federation 7th World Congress on Nursing & Healthcare
CHARLOTTESVILLE, VA / ACCESSWIRE / June 19, 2019 / Adial Pharmaceuticals, Inc. (NASDAQ:ADIL;ADILW), a clinical-stage biopharmaceutical company focused on the development of treatments for addiction, today announced that its Chief Medical Officer, Bankole Johnson, M.D., D.Sc., M.B., ChB., M.Phil., DFAPA, FRCPsych, FACFEI, presented the Company's lead investigational new drug product, AD04, for the treatment of alcohol use disorder (AUD), at the Scientific Federation 7thWorld Congress on Nursing & Healthcare in London, England. The title of Dr. Johnson's presentation was:"A Pharmacogenetic Approach to Treat Alcohol Use Disorder."
Dr. Johnson noted, "We were very pleased with the high turnout and favorable feedback we received from industry leaders at the conference, as AD04 represents a novel pharmacogenetic approach to treating AUD, the number one cause of death globally among both men and women ages 15 to 49 years."
The World Congress on Nursing & Healthcare (WCNH-2019) attracts global participants from around the world with a focus on sharing, exchanging and exploring new avenues of nursing, healthcare and related research and latest developments. The aim of the WCNH-2019 is to bring together world-class researchers, international communities and industrial heads in the fields of nursing and healthcare to promote quality research and innovations with real-world impact in an atmosphere of true international cooperation.
About Adial Pharmaceuticals, Inc.
Adial Pharmaceuticals is a clinical-stage biopharmaceutical company focused on the development of treatments for addictions. The Company's lead investigational new drug product, AD04, is a genetically targeted therapeutic agent for the treatment of Alcohol Use Disorder (AUD). A Phase 2b clinical trial of AD04 for the treatment of AUD showed promising results in reducing frequency of drinking, quantity of drinking and heavy drinking (all with statistical significance), and no overt safety concerns (there were no statistically significant serious adverse events reported). The Company plans to commence a Phase 3 clinical trial using AD04 for the potential treatment of AUD in subjects with certain target genotypes, which are to be identified using the Company's proprietary companion diagnostic genetic test. AD04 is also believed to have the potential to treat other addictive disorders such as opioid use disorder, gambling, and obesity.www.adialpharma.com
Forward Looking Statements
This communication contains certain "forward-looking statements" within the meaning of the U.S. federal securities laws. Such statements are based upon various facts and derived utilizing numerous important assumptions and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded by, followed by or that otherwise include the words "believes,""expects,""anticipates,""intends,""projects,""estimates,""plans" and similar expressions or future or conditional verbs such as "will,""should,""would,""may" and "could" are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. The forward-looking statements include statements regarding plans to commence the first Phase 3 trial of AD04 and the potential of AD04 to treat AUD and other addictive disorders such as opioid use disorder, gambling, and obesity. Any forward-looking statements included herein reflect our current views, and they involve certain risks and uncertainties, including, among others, our ability to commence the Phase 3 clinical trials as expected, the ability to expand the use of AD04 for use in patients with opioid use disorder, gambling and obesity, the ability of AD04 therapy to perform as designed, to demonstrate safety and efficacy, as well as results that are consistent with prior results, the ability to enroll patients and complete the clinical trials on time and achieve desired results and benefits, our ability to obtain regulatory approvals for commercialization of product candidates or to comply with ongoing regulatory requirements, regulatory limitations relating to our ability to promote or commercialize our product candidates for specific indications, acceptance of its product candidates in the marketplace and the successful development, marketing or sale of products, our ability to maintain our license agreements, the continued maintenance and growth of our patent estate, our ability to establish and maintain collaborations, our ability to obtain or maintain the capital or grants necessary to fund its research and development activities, and our ability to retain our key employees or maintain our Nasdaq listing. These risks should not be construed as exhaustive and should be read together with the other cautionary statement included in our Annual Report on Form 10-K for the year ended December 31, 2018. Any forward-looking statement speaks only as of the date on which it was initially made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, unless required by law.
Contact:
Crescendo Communications, LLCDavid Waldman / Natalya RudmanTel: 212-671-1021Email:dwaldman@crescendo-ir.com
SOURCE:Crescendo Communications, LLC
View source version on accesswire.com:https://www.accesswire.com/549218/Adial-Pharmaceuticals-Chief-Medical-Officer-Presents-AD04-at-the-Scientific-Federation-7th-World-Congress-on-Nursing-Healthcare |
Laetose(TM), Healthier Sugar Naturally Modified From Table Sugar, Unveiled at Harvard Health Summit
Laetose™presented as an innovative solution to address the global diabetes and obesity epidemic, meet the targets of the National Salt and Sugar Reduction Initiative
BOSTON, MA / ACCESSWIRE / June 19, 2019 /Results of clinical trials conducted on Laetose™, a new sugar product from Sweet Sense Inc. that reduces its negative impact on the body, were recently presented to health ambassadors from around the world at Harvard Medical School's annual Global Health Catalyst Summit. Laetose™was developed by Daryl L. Thompson, Director of Scientific Initiatives at Global Biolife Inc., as a safer and affordable alternative to sugar. Global Biolife has joined forces with Quality Candy Company LLC to produce a healthier sweetener that is identical to regular sugar in taste, texture and shelf life.
As a result of this medical advancement in the fight against diabetes and obesity, Mr. Thompson was invited to present at Harvard's annual event that focuses on initiatives to eliminate global health disparities.
Click here to view video summary.
Laetose™is believed to be the first alternative sweetener that is made mostly from sucrose (standard, granulated table sugar) that is lower in calories and low-glycemic.
Naturally Modified Sugar, Low-Glycemic, Disease-Fighting Benefits
Laetose™is believed to be the first alternative sweetener that is made mostly from sucrose (standard, granulated table sugar).
''You can think of Laetose™as Sugar 2.0. It is simply more than a low-calorie sugar but rather a solution to sugar itself in that it was specifically formulated to fight disease,'' said Thompson. ''We've developed a formula that uses sugar the way nature intended. Laetose™tastes and performs exactly like sugar as a food ingredient but it is better accepted by the body.''
Laetose™is made by adding a natural compound found in berries (insulin-mimetic) to sucrose.
• The patent-pending process transforms sucrose into a sweetener that is lower in calories and low-glycemic.
• Diseases like obesity and diabetes are the result of a pro-inflammatory condition driven by the high consumption of sugar.
• Laetose™was scientifically proven by independent testing to inhibit inflammation caused by sugar.
• In the longer term, Laetose™is less likely to increase blood sugar levels that can lead to chronic diseases.
''Daryl Thompson is very passionate about global health,'' said Dr. Wilfred Ngwa, M.S., Ph.D., Director of Global Health Catalyst at Harvard Medical School. ''He is developing solutions that can benefit people across the globe, not just in the United States.''
Clinical Trials
At the Global Health Catalyst Summit, Mr. Thompson announced the completion of human trials on Laetose™conducted at one of the foremost laboratories in the world to measure glycemic index.
Laetose™was tested according to the international standard ISO 26642:2010 at an Australian University and showed:
• The glycemic index (GI) score of Laetose™as 53, as compared to a score of 100 in glucose.
• Scientific research has shown that a low GI diet helps maintain a healthy weight (1), improves heart health (2), increases energy while exercising (3) and lowers cholesterol levels (4).
Additional independent testing conducted at Charles River Laboratories shows Laetose™halts stimulation of lipopolysaccharide inflammation which leads to Metabolic Endotoxemia, the root of metabolic-driven disease.
Impact on Global Health
Mr. Thompson worked with a number of other health and food industry experts on the development of Laetose™, including Dr. Roscoe Moore, D.V.M., Ph.D., D.Sc., former Assistant Surgeon General of the United States and Senior Fellow at the Potomac Institute for Policy Studies.
Dr. Moore serves as a scientific advisor and is particularly interested in how Laetose™can make the food supply healthier in developing counties.
''Laetose™has great potential to be the solution for the problems sugar is causing around the world,'' said Dr. Moore. ''This is an affordable way to make healthier foods that help address health disparities and prevent diabetes for future generations.''
'Less Sugar' Food Labels
Laetose™can help meet the targets of the National Salt and Sugar Reduction Initiative (NSSRI), a partnership of more than 100 city and state health departments, associations and health organizations, including the American Heart Association. NSSRI is calling on the food and beverage industry to lower the sugar in their packaged products.
''Laetose™tastes 100 percent like sugar, but it's 30 percent less sugar when it comes to calories and glycemic index,'' said Thompson. ''We designed Laetose™to help food and beverage manufacturers meet the NSSRI targets.''
Ingredients, such as Laetose™, that satisfy 30 percent less sugar will be on the radar of manufacturers wishing to label their products ''Less Sugar.''
Ready for Mass Production, Cost-Effective
Global BioLife is partnering with Quality Candy Company LLC to form a joint venture, Sweet Sense Inc., to market Laetose™. Sweet Sense refined the invention at its production facility and created a scalable manufacturing process for Laetose™.
Because Laetose™is modified from regular sugar, it has the potential to be significantly less expensive to produce than many bulk alternative sweeteners.
''Clinical trials are complete, patents have been filed and the product is ready for full-scale production,'' said Thompson. ''Sweet Sense is looking to license Laetose™to a major company with the ability to introduce Laetose™into multiple food products around the world.''
About Sweet Sense Inc.
Sweet Sense Inc.is a joint venture established to refine and develop Laetose™, a low-glycemic, low-calorie naturally modified sugar. Sweet Sense Inc. is a partnership ofGlobal BioLife Inc.andQuality Candy Company LLC.Global BioLife Inc. is a subsidiary ofSingapore eDevelopment Limited. The company is focused on leveraging its scientific know-how and intellectual property rights to provide solutions that have been plaguing the biomedical field for decades. Quality Candy Company LLC. is a leading manufacturer and distributor of high-quality hard and soft sugar candies under the brand names King Leo®, Gilliam®and Better4U.
For more information, visithttp://sweetsensesugar.com.
Media Contact:
Russ Rhea, Apron Food PR for Sweet Sense Inc.,russ@apronfoodpr.com, 512-970-1254
Related Files
Laetose GI Report
Sweet Sense logo
Sweet Sense Inc. is a joint venture established to refine and develop Laetose™, a low-glycemic, low-calorie naturally modified sugar. Sweet Sense Inc. is a partnership of Global BioLife Inc. and Quality Candy Company LLC.
SOURCE:Sweet Sense Inc.
View source version on accesswire.com:https://www.accesswire.com/549199/LaetoseTM-Healthier-Sugar-Naturally-Modified-From-Table-Sugar-Unveiled-at-Harvard-Health-Summit |
The new Kindle Oasis adjusts its screen color to the time of day
Finding the perfect reading light can be a challenge, no matter the time of day. Amazon'slatestKindle Oasis comes with a new color adjustable front light that can switch from cool to warm hues as the day progresses. Adjustable lighting isn't a new feature for Kindle (Amazonreleaseda basic Kindle with an adjustable front-light earlier this year), but the ability to change the screen's color temperature is unique to the Oasis. Similar to the iPhone'sNight Shift, readers can schedule lighting levels to change automatically at sunrise and sunset.
"Kindle is designed to create a sanctuary reading experience, and the all-new Kindle Oasis exemplifies this—whether you're reading poolside on vacation or in the comfort of your bed," said Kevin Keith, Vice-President of Amazon Devices in apress release. Other than the new lighting, the latest generation of the Kindle Oasis is pretty similar to the previous model. Same as the prior generation, the 2019 Oasis includes a 7-inch display with 300-pixel-per-inch (ppi) resolution, is waterproof with an IPX8 rating and has built-inAudiblesupport. The E Ink panel makes a return, along with dedicated page turn buttons, which may throw you off if you're used to older Kindle models that are pure display.
The new Kindle Oasis starts shipping on June 24th, 2019, and is available now for pre-order. Colors available include graphite or champagne gold, and prices are consistent with the 2017 model at $250 for 8 GB or $280 for 32 GB. |
Catalent (CTLT) Upgraded to Buy: What Does It Mean for the Stock?
Catalent (CTLT) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Catalent basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
For Catalent, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate Revisions
As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.
Earnings Estimate Revisions for Catalent
For the fiscal year ending June 2019, this maker of drug delivery technologies is expected to earn $1.86 per share, which is a change of 6.3% from the year-ago reported number.
Analysts have been steadily raising their estimates for Catalent. Over the past three months, the Zacks Consensus Estimate for the company has increased 1.4%.
Bottom Line
Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Catalent to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
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 reportCatalent, Inc. (CTLT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
The opioid crisis is hitting one industry particularly hard
Asopioid addictionincreased exponentially over the last two decades, American construction workers have been among those hit the hardest.
According to a note from Barclays Research,construction workersare nearly six times more likely than other industries to develop an opioid addiction. “In Massachusetts,” the analystsnoted,“~25% of all opioid overdose deaths were from construction.”
Chris Cain, the executive director of The Center for Construction Research and Training (CPWR), stressed that the trend is less “about a worker who’s in the industry” than “about the construct of the industry.”
“Workers have to work in pain,” she told Yahoo Finance. “That’s a problem, but that’s the way the industry is right now, and changing the industry is a longer-term effort than what we can do today. But that’s kind of the circumstances.”
And the nature of construction employment and turnover creates pressure on workers to be on the job whenever they can.
“There’s a lot of uncertainty when you’re a construction worker,” she said. “You work long hours and then sometimes you’re laid off, and you don’t work for weeks or months. ... So when the long hours are available, you take them and you get your overtime, but you don’t get sick days.”
She added: “You don’t get days to recover, you don’t get a good eight hours of sleep at night because you can’t turn down work when work is available.”
Greg Sizemore, the vice president of health, safety, and environment and workforce development for the Associated Builders and Contractors (ABC), said aside from the strenuous work in construction, there are other factors that come into play as well that can lead to opioid addiction.
“I think we fall into that category where [physical labor] is one of maybe four or five things that really attribute to it,” he told Yahoo Finance. “The construction worker, just by the physical nature of their jobs, often suffers some wear and tear on their body.”
He added that there are demographics and lack of oversight also come into play.
“Aging workforce — you’ve got fewer young people coming into the business, but the young people that are coming into the business have more ready access to them than maybe in years past,” Sizemore continued. And “drug testing, particularly randoms, can be very complicated to manage in the contracting community these days.”
In terms ofprescription drugspending, opioids account for 20% among construction workers, which is between 5-10% higher than other industries.
“When you’re in a situation where you don’t have economic security, you don’t have job security, you lack things like sick leave and vacation pay,” Cain explained. “There’s really a lot of factors that add to the pain of work about our industry and makes our workers a lot more vulnerable to developing substance abuse disorders.”
According to the Barclays note, “some of the highest overdose rates occur in states in the top two deciles of construction demand in the U.S., such as Ohio, Pennsylvania, Florida, North Carolina, Virginia.” For example: Although construction accounts for only 4% of total jobs in Ohio, it accounts for 13% ofnarcotic painkillersprescribed for on-the-job injuries.
Sizemore said leaders in the construction industry should become more proactive about addressing this problem.
“From a cultural standpoint, we have to equip our fellow employees or our employees on a project to recognize those signs and create a culture where there isn’t this fear of absolute retribution, but [rather] this opportunity to help an individual should appear,” Sizemore said.
The Barclays analysts noted that they had not heard any large engineering and construction companies address the issue on a conference call in the last year, though that may not be “the best venue to reach a company’s workforce.”
Nevertheless, discussing it on the calls “could be useful to open the door to an issue that’s being spoken about more publicly by the industry and society as a whole, but is still shroud in secrecy.”
Adriana is an associate editor for Yahoo Finance. Follow her on Twitter@adrianambells.
READ MORE:
• U.S. opioid crisis: 'A lot needs to be done' in 3 key areas
• 'Just a piece': The U.S. opioid epidemic is costing a fortune in lost tax revenue
• A 'really important piece of evidence' shows how opioids keep Americans out of the workforce
• Read the latest financial and business news from Yahoo Finance
Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,SmartNews,LinkedIn,YouTube, andreddit. |
College students have unrealistic salary expectations after graduation, survey reveals
College studentsare in for a wake-up call when they enter theworkforceafter graduation.
A survey conducted byClever Real Estaterevealed Gen Z college students have “seriously unrealistic expectations” when it comes tohow muchthey will earn in their job a year out of school and 10 years into their careers.
“Students tend to overestimate how much they’ll make right out of college. The average undergraduate expects to make $57,964 one year into their career, while the national median salary is $47,000 for bachelor degree holders with zero to five years of experience,” the survey showed.
The survey found that college students had unrealistic expectations across all majors except the computer science field. Those who studied computer science estimated to make about $59,300 when the medium early career salary is $68,800.
Gen Z undergraduates also overestimated their mid-career salaries by about $15,000.
When it comes to employee benefits, Gen Zers prioritized competitive salaries and great insurance plans more than fun work environment flex time and paid time off — perks that millennials cared more about.
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“Students expect college to be a career game changer from the get-go, but the truth is that building a career takes time, hard work, and practical experience. Meanwhile, the margins on getting a college degree are slimmer than ever,” the survey’s report stated.
Women also had lower salary expectations compared to their male counterparts. Female college graduates said they expected to earn about $4,300 less than men in their post-graduate job.
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How 0x meta transactions will boost Ethereum
Earlier this week, I briefly discussed the future of Ethereum as the new ETH 2.0 upgrade approaches with multiple implementations of the Casper PoS protocol. How will this impact the price and adoption of Ether? It’s too early to say, but due to the high market value of the coin coupled with serious development teams working 24/7 across the world, I seriously doubt Ethereum won’t be here within the next couple of years. Of course, cryptocurrencies are quite unpredictable. By looking at CoinMarketCap from a few years back, we can see the enormous change to the top five projects listed. Nonetheless, Ethereum has been able to remain as the second-largest cryptocurrency for most of its infancy, and I expect this trend will continue throughout the year and across 2020 – assuming the Litecoin halving doesn’t push price above ETH (which seems a bit unlikely). The 0x protocol is making key changes With the help of ERC standards and Layer-2 sidechain protocols working alongside Ethereum , it becomes possible to further scale the world computer platform with less hassle as work gets distributed among different projects and teams. One of the best examples is the Zero X (0x) protocol, which is an open protocol that enables the peer-to-peer exchange of assets on the Ethereum blockchain. In essence, you can build relays (like Bancor Network and so many other DEXs did) over the 0x protocol and easily connect to Ethereum to allow P2P transfers of Ethereum assets like most ERC-20 tokens. The 0x project has a major update scheduled for Q3 of this year, and the upcoming V3.0 upgrade has been pinpointed as a possible price catalyst. So now is a good time to look ahead to one of the most interesting features due in the update – meta transactions. In short, the developers may have found a new way to onboard new users to cryptocurrencies without them even knowing it. 0x and meta transactions One of many new features set to arrive in the 0x V3.0 update is meta transactions. When we think about the interaction between users and dApps, the average person on the internet isn’t aware – and doesn’t care – about crypto, blockchain, or decentralisation. One of the major problems faced by Ethereum dApps is that they require way too much onboarding. The Ethereum ecosystem needs to push toward mass adoption by allowing new users immediate access to functionality and interactivity without all the hoops to jump through. Under Ethereum developer Austin Griffith’s proposed system, a pre-filled wallet would be ready and waiting in-browser. The gas fees for the first couple of transfers (user interactions) would be included to get the first-time user going. Story continues “Key pairs will exist in your browser first and will be generated automatically. The cypherpunks are really going to hate this one, but users shouldn’t be bothered with downloading a wallet up front. First, they need to use the product and provide value within the dApp.” Once the user has interacted with the app and received tokens of some kind, they can then be prompted to download a wallet and securely transfer their funds, for example. Using ETH dApps without hassle As a protocol on the Ethereum blockchain, the development of 0x impacts the development of Ethereum. If meta transactions can be implemented, it will mean new users can interact with Ethereum without first having to go to an exchange and buy ETH. If we take the blockchain arena as analogous to the early days of the internet, then solutions like these could be the equivalent to plug-and-play operating systems, browsers, and plugins, which the average person now uses without knowing a single thing about how they work. Throwing a ready-made crypto wallet into the mix only makes things more exciting. Plus, this seems to be a smart way to onboard users without worrying too much about how blockchain or Ethereum works. In the end, there will always be security concerns with pre-loaded sets of keys. However, one cannot expect to bring more people to dApps without compromising to some degree on security, decentralisation, or both. I personally hope this update arrives sooner rather than later as it would be a great new feature for 0x and Ethereum. The post How 0x meta transactions will boost Ethereum appeared first on Coin Rivet . View comments |
Internet Security Provider Cloudflare Announces an Ethereum Gateway
Internet security providerCloudflareis introducing the Ethereum Gateway to its Distributed Web Gateway toolbox enabling users to interact with theEthereumnetwork without installing any software. This is part of Cloudflare’s Distributed Web Gateway project to expand the decentralized web ecosystem and enhance its reliability, speed, and ease of use.
Instead of downloading and cryptographically verifying hundreds of gigabytes of data — an impossible task for low-power devices and those with low technical barriers to entry — the gateway enables any device with web access to interact with the Ethereum network.
This setup will make it possible to explore the blockchain and add interactive elements to sites powered by Ethereum smart contracts. In fact, the gateway gives people the ability to put new contracts on Ethereum with having to run a node, because Cloudflare will take a signed transaction and push it to the network thereby allowing miners to cryprographicaly add it.
Related:Two Startups Are Partnering to Enable Amazon Purchases with Ethereum
Despite the value Cloudflare brings to gateway clients, the service is completely free. Nick Sullivan, Cloudflare’s Head of Cryptography, explains that the program “leverages the existing Cloudflare network, which already provides a number of free services.”
Sullivan notes it’s too young a system to introduce costs, but there may be revenue opportunities down the line.
For now though, the company’s modus operandi is to expand access and utility of smart contracts to the uninitiated. In a sense, Sullivan suggested Cloudflare is doing it for developers and ecosystem at large. “To show computing can be done differently.”
“By providing a gateway to the Ethereum network we can help users make the jump from general web-user to cryptocurrency native, eventually making using the distributed web a fundamental part of the Internet,” Jonathan Hoyland wrote in a blog post.
Related:Marketing Chief Amanda Gutterman Is Latest Exec to Leave ConsenSys
Though Cloudflare sees itself as only one access point among “the constellation of gateways that already exist,” meaning that despite the added speed of its backchannel, it will not become a centralized authority on the chain.
Currently, newbie visitors to the gateway’s website can interact with an example app, but the ambitious should access the RPC API, where it’s possible to do virtually anything available on the Ethereum network itself, from examining contracts, to transferring funds.
Despite ambitions to break down the barriers to distributed computing, Sullivan said the majority of Cloudflare users are hobbyists. This is not to exclude the number of independent bloggers, image sharing websites, and technologists that leverage Cloudflare’s IFPS gateway.
“ETH and IPFS are big names in very small space — the crypto space. But in a broader audience they’re not very well known, not commonly understood,” said Sullivan. “Part of this announcement is to help elevate the profile of these protocols… to solve difficult problems with distributed computing.”
This announcement is part of Cloudflare’s Crypto Week.
Gateway image via ShutterStock
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