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Stock Market News For Jun 19, 2019
U.S. stocks closed sharply higher on Tuesday after President Trump’s said he will meet his Chinese counterpart during the G-20 summit which boosted investors’ confidence. Moreover, market participants are also expecting a signal from the Fed for a rate cut in the next month. All three major stock indexes finished at their highest level since May 7.
The Dow Jones Industrial Average (DJI) soared 1.4% or 353.01 points to close at 26,465.54. The S&P 500 climbed 1% to close at 2, 179.75. Meanwhile, the Nasdaq Composite Index closed at 7,953.88, surging 1.4%. The fear-gauge CBOE Volatility Index (VIX) decreased 1.3% to close at 15.15. A total of 7 billion shares were traded on Tuesday, higher than the last 20-session average of 6.8 billion. Advancers outnumbered decliners on the NYSE by a 4.83-to-1 ratio. On Nasdaq, a 3.80-to-1 ratio favored advancing issues.
How Did The Benchmarks Perform?
The Dow closed in positive territory with 23 components of the 30-stock blue-chip index closing in the green while seven finished in the red. The S&P 500 also closed in positive territory.The Industrials Select Sector SPDR (XLI) and Technology Select Sector SPDR (XLK) gained 1.9% and 1.8%%, respectively. Notably, eight out of 11 sectors of the benchmark index closed in the green while three ended in the red. Meanwhile, tech-heavy Nasdaq Composite ended in positive territory due to strong performance by large-cap stocks especially semiconductor stocks.
Positive Development on Trade War Front
On Jun 18, President tweeted that he had a very good telephonic conversation with Chinese President Xi Jinping. He added: “We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting.” The G-20 summit of developed nations is scheduled for Jun 28-29 at Osaka.
Notably, U.S.-China trade negotiations broke down abruptly on May 5 when market participants believed a near-term deal was possible. The United States blamed China for backtracking on its previously given commitments. So far, the United States has imposed 25% tariffs on $250 billion Chinese goods. China has retaliated by levying 25% tariff on $160 billion U.S. exports.
Moreover, China has warned it will stop exporting precious rare earth metals to the United States while the Trump administration has blocked Chinese telecom behemoth Huawei from doing business with U.S. companies. Additionally, President Trump had threatened imposing 25% tariffs on another $300 billion of Chinese goods if stalemate prevails in trade negotiations for an indefinite time period.
Following Trump’s tweet, shares of trade-sensitive stocks like Caterpillar Inc. CAT, Deere & Co. DE and 3M Co. MMM soared 2.3%, 3.3% and 3.1%, respectively. Caterpillar and Deere carry a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Crucial Fed Meeting Begins
The two-day policy meeting of the Fed started on Jun 18. Fed Chair Jerome Powell is expected to announce his decision on rates at 2 PM EST on Jun 19.Possibility of a rate cut after the June meeting is very low.However, market participants will be more interested in Powell’s speech scheduled Wednesday afternoon. His statement is likely to reveal much about the central bank’s future policy stance.
As per CME FedWatch most respondents are expecting three rate cut in 2019, in July, September and December, respectively. So far this year, the central bank has maintained its benchmark lending rate at 2.25—2.5%.
Economic Data
Department of Commerce reported that housing starts declined 0.9% in May to a seasonally adjusted annual rate of 1.269 million units, owing to adrop in the construction of single-family housing units. However, the figure surpassed the consensus estimate of 1.235 million units. April’s data was revised upward to 1.281 million units from 1.235 million units stated earlier.
Building permits rose 0.3% to a rate of 1.294 million units in May. However, the figure fell below the consensus estimate of 1.299 million units. April’s data was revised downward to 1.29 million units from 1.296 million units stated earlier.
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 report3M Company (MMM) : Free Stock Analysis ReportCaterpillar Inc. (CAT) : Free Stock Analysis ReportDeere & Company (DE) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Nielsen Holdings plc (NYSE:NLSN) Investors Should Think About This Before Buying It For Its Dividend
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Dividend paying stocks like Nielsen Holdings plc (NYSE:NLSN) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.
In this case, Nielsen Holdings likely looks attractive to dividend investors, given its 6.0% dividend yield and six-year payment history. We'd agree the yield does look enticing. The company also bought back stock equivalent to around 0.5% of market capitalisation this year. Some simple research can reduce the risk of buying Nielsen Holdings for its dividend - read on to learn more.
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. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. While Nielsen Holdings pays a dividend, it reported a loss over the last year. When a company recently reported a loss, we should investigate if its cash flows covered the dividend.
The company paid out 80% of its free cash flow as dividends last year, which is adequate, but reduces the wriggle room in the event of a downturn.
Given Nielsen Holdings is paying a dividend but reported a loss over the past year, 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). Nielsen Holdings has net debt of 5.71 times its earnings before interest, tax, depreciation and amortisation (EBITDA) which implies meaningful risk if interest rates rise of earnings decline.
Net interest cover can be calculated by dividing earnings before interest and tax (EBIT) by the company's net interest expense. Interest cover of less than 5x its interest expense is starting to become a concern for Nielsen Holdings, and be aware that lenders may place additional restrictions on the company as well. Low interest cover and high debt can create problems right when the investor least needs them. We're generally reluctant to rely on the dividend of companies with these traits.
We update our data on Nielsen Holdings every 24 hours, so you can always getour latest analysis of its financial health, here.
Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. Nielsen Holdings has been paying a dividend for the past six years. Its dividend has not fluctuated much that time, which we like, but we're conscious that the company might not yet have a track record of maintaining dividends in all economic conditions. During the past six-year period, the first annual payment was US$0.64 in 2013, compared to US$1.40 last year. This works out to be a compound annual growth rate (CAGR) of approximately 14% a year over that time.
We're not overly excited about the relatively short history of dividend payments, however the dividend is growing at a nice rate and we might take a closer look.
The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. Over the past five years, it looks as though Nielsen Holdings's EPS have declined at around 24% 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.
To summarise, shareholders should always check that Nielsen Holdings's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. We're a bit uncomfortable with the company paying a dividend while being loss-making, although at least the dividend was covered by free cash flow. Earnings per share are down, and to our mind Nielsen Holdings has not been paying a dividend long enough to demonstrate its resilience across economic cycles. Using these criteria, Nielsen Holdings looks quite suboptimal from a dividend investment perspective.
Without at least some growth in earnings per share over time, the dividend will eventually come under pressure either from costs or inflation. See if the 14 analysts are forecasting a turnaround in ourfree collection of analyst estimates here.
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. |
S&P 500 Close to Record High: 5 Top-Notch Stocks to Bet on
The S&P 500 Index is within a percent's proximity to reaching April's record high mark. The index is gaining ground from a number of positive events that are expected to buoy the market sentiments.
These include a possible trade negotiation between the United States and China, prompted by a tweet from President Donald Trump. Given the projected retardation in the global economy, it is highly crucial for the trade war to arrive at a peaceful consensus.
Moreover, a positive commentary on the economic stimulus by Mario Draghi, president, European Central Bank also raised investors’ hopes. Further, a buzz of optimism surrounding a potential cut in the Fed’s benchmark interest rate has driven the index.
S&P 500 Rebounds in June
We note that the index achieved the largest gain in 30 years during the first four months of this year. However, the index nose-dived in May as a sudden setback of the U.S.-China trade bargains and numerous weak economic reports of April and May deflated investors' faith to a great degree.
Nonetheless, the index has recovered some lost sheen in the last couple of weeks, courtesy of the positive development in terms of the U.S.-China trade tussle. Additionally, attacks on oil tankers in the Gulf, Huawei ban and President Trump’s skirmishes with Mexico, Iran and Germany over business issues couldn’t damage investor confidence.
Notably, the S&P 500 Index inched up 0.97% on Jun 18 to close at 2,917.75, nearing its all-time closing high of 2,945.83, set on Apr 30.
This rally in the index was led by the trade-sensitive industrials, which rose 1.92% and the technology stocks that were up 2.08%.
In the technology space, semiconductor stocks — which are highly dependent on China — were the largest percentage gainers, with iShares PHLX Semiconductor ETF (SOXX) growing nearly 4.9%. Among the biggest gainers, Xilinx, Micron, NVIDIA and Western Digital increased 6.94%, 5.74%, 5.41% and 5.07%, respectively.
Key Picks
Here we pick a few solid stocks from the S&P 500, which sport a Zacks Rank #1 (Strong Buy) and have also outperformed the index in the year-to-date period. You can seethe complete list of today’s Zacks #1 Rank stocks here.
The chart below shows price performance of our five best bets so far this year.
New York-basedArconic Inc.ARNC is a global leader in multi-material, precision engineered products and solutions for a variety of industries. The Zacks Consensus Estimate of $1.8 per share for the current year has been revised 2.9% upward over the last 30 days. The stock has surged 39.5% year to date.
Headquartered in Sarasota, FL,Roper Technologies, Inc.ROP designs, manufactures and distributes medical and scientific imaging products and software; radio frequency (RF) products, services and application software; industrial technology products and energy systems plus control products and solutions. The Zacks Consensus Estimate for 2019 earnings of $12.92 has been raised 1.8% in the past 30 days. The stock has improved 37.2% year to date.
Based in New York,American International Group Inc.AIG is engaged in providing insurance and financial services to commercial, institutional and individual customers. The Zacks Consensus Estimate for 2019 earnings of $4.96 has been stable in the past 30 days. The stock has risen 35.3% year to date.
Domiciled in Raleigh, NC,Martin Marietta Materials, Inc.MLM produces and supplies construction aggregates and other heavy building materials, mainly cement, in the United States. The Zacks Consensus Estimate of $9.26 for 2019 earnings has moved 0.22% north over the past 30 days. The stock has gained 28.8% year to date.
Headquartered in Atlanta, GA,PulteGroup Inc. PHM deals in the homebuilding and financial services businesses, primarily in the United States. The Zacks Consensus Estimate for 2019 earnings of $3.4 has been reaffirmed in the past 30 days. The stock has climbed 26.6% year to date.
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Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportMartin Marietta Materials, Inc. (MLM) : Free Stock Analysis ReportPulteGroup, Inc. (PHM) : Free Stock Analysis ReportRoper Technologies, Inc. (ROP) : Free Stock Analysis ReportAmerican International Group, Inc. (AIG) : Free Stock Analysis ReportArconic Inc. (ARNC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Facebook's Mark Zuckerberg drops 39 spots on Glassdoor’s top CEO list
Facebook (FB) CEO Mark Zuckerberg’s standing with employees is plunging, emloyee reviews from Glassdoor suggest.
Glassdoor, which published its seventh annual “Top CEOs in 2019 — U.S. Large Companies” list on Tuesday evening and awarded VMWare (VMW) CEO Pat Gelsinger the No. 1 spot (out of 100), ranked Zuckerberg No. 55 — down 39 spots from No. 16 in 2018 and the largest drop for a returning CEO on Glassdoor’s list. The reasons for the plunge include Facebook’s stressful work culture, a decision-making process slowed down by the company’s large size, and morale affected by user privacy scandals over the last 18 months, according to anonymous Facebook employee reviews posted to the jobs site.
“Zuckerberg dropped 39 spots, which is the most he has ever dropped on our list,” says Amanda Stansell, Senior Economic Research Analyst for Glassdoor. “But we do see some cons that pop up in the reviews. We see mentions of an increasingly hierarchical culture, especially since Facebook is such a large company.”
Since its founding, Facebook has adhered to a “Move fast” philosophy emphasizing speed. (In 2014, the social network changed its famous “Move fast and break things” mantra to “Move fast with stable infra,” emphasizing fast innovation but not at the expense of accuracy.) Crawlthe more recent Facebook employee reviewson Glassdoor and some reviews complain Facebook has grown so big — it employs over 37,700 people — the social network has become “increasingly difficult for the company to move fast,” one employee wrote in a review posted on Glassdoor in August 2018.
“Due to the recent scandals, the company has become cautious to an extreme, and every privacy decision is taken with painstakingly slow speed because it’s been vetted by layers and layers of people,” another anonymous Facebook employee griped in a Glassdoor review posted this April.
Since the Cambridge Analytica controversy broke in March 2018, in which it was revealed that voting firm Cambridge Analytica gained access to the information of up to 87 million users without their consent, Facebook has been rocked by back-to-back scandal. Meanwhile, Zuckerberg was thrust into a harsh spotlight as lawmakers questioned Facebook management’s priorities: monetization or users’ privacy? The social network currently anticipates paying a $3 billion to $5 billion Federal Trade Commission fine for its privacy lapses andwrote down $3 billionduring its first quarter 2019.
To Zuckerberg’s credit, the Facebook CEO holds an open forum with employees every week when they can ask him anything, Stansell points out. And while Zuckerberg’s rank significantly dropped on Glassdoor’s “Top CEOs in 2019 — U.S. Large Companies,” he certainly didn’t fall off the list entirely.
“Zuckerberg has made himself very accessible to employees so that’s a big pro,” adds Stansell.
Nonetheless, the last year or so has clearly hurt Facebook morale and Zuckerberg’s good standing somewhat as a leader with his employees. Translation: Facebook’s chief executive has some work ahead of him to recoup that good faith.
METHODOLOGY: For Glassdoor’s “Top CEOs in 2019 - U.S. Large Companies” list, which is one of six “Top CEO” lists the jobs site published on Tuesday, Glassdoor used a proprietary algorithm to rank chief executives based on employee reviews posted on Glassdoor between May 2, 2018 and May 1, 2019. For a company to be considered for this particular list, the company had to employ at least 1,000 employees during the May 2, 2018 - May 1, 2019 time frame. Also, at least 100 company reviews must have been posted during the time frame specifically weighing in on two attributes: CEO job performance and the performance of overall senior management.
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More from JP:
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Facebook's Libra: Why governments and regulators are concerned
Facebook’s ( FB ) plan to launch a new global cryptocurrency has met with immediate backlash from politicians and policy-makers around the world. Libra was unveiled on Tuesday. It’s a new cryptocurrency spearheaded by Facebook and also backed by top tech giants and payment companies including Visa ( V ), MasterCard ( MA ), PayPal ( PYPL ), and eBay ( EBAY ). Libra will launch next year and aims to be a global currency at the heart of a new economy on the internet. Facebook co-announced its own wallet app to store and send Libra, called Calibra . Lawmakers and government groups don’t like it Libra’s unveiling faced immediate blowback from politicians and regulators around the world: The G7 nations launched a joint inquiry into the risks of new cryptocurrencies like Libra. The IMF and central banks will participate, the Financial Times reported. France’s finance minister Bruno Le Maire said Libra “can not and must not” become a “sovereign currency,” according to Bloomberg . A German member of Parliament expressed fears that Facebook could become a “shadow bank,” according to the same report. Rep. Maxine Waters, chair of Congress’ financial services committee, called for an immediate pause to Facebook’s development efforts “until Congress and regulators have the opportunity to examine these issues.” Sen. Josh Hawley (R-MO) told Yahoo Finance Facebook is “expanding their monopoly” with Libra and said: “I'm very concerned about Facebook's behaviour on a range of fronts.” Bank of England governor Mark Carney said regulators would approach Libra with “an open mind” but not “an open door.” The responses highlight the significant hurdles Facebook and its allies will face in even getting Libra off the ground, let alone breaking into the mainstream. “We worry that regulatory pushback and consumer reticence may limit the appeal and acceptance,” Macquarie Capital analysts Benjamin Schachter, Ed Alter, and Angela Newell said in a note on Libra sent to clients sent on Tuesday. Story continues That was fast. https://t.co/65A6sjAEKQ — Daniel Roberts (@readDanwrite) June 18, 2019 Why are lawmakers worried? Former PayPal exec David Marcus is heading up Facebook's cryptocurrency efforts. Photo: Stephen Lam/ Reuters Facebook CEO Mark Zuckerberg famously coined the motto “move fast and break things” for his company, but regulators will worry that this philosophy could cause financial crises and inadvertently enable money laundering when applied to financial services. Here are the key areas that regulators and politicians will likely worry about with Libra: Money laundering: Regulators around the world have long worried that cryptocurrencies can be used for money laundering and criminal activities. The G7 working group looking at libra highlighted money laundering controls as a key issue to look into, according to a letter reported by the Financial Times. Facebook’s Calibra, the new subsidiary building products for Libra, will be fully compliant and “use all the same verification and anti-fraud processes that banks and credit cards use,” according to Tuesday’s announcement. However, it’s not entirely clear if people will need to verify their identities to buy Libra elsewhere. Regulators will want clarity. Financial stability: Central banks around the world have explored the idea of launching their own digital currencies but have so far stayed away from the idea due to lingering questions about the affect on economies. “It could have wide-ranging implications for monetary policy and financial stability,” the Bank of England has noted . Our financial system currently runs on fractional reserve banking — banks lend out the money that people deposit with them to fuel economic growth. If everyone holds their money personally in a mobile wallet, this system could collapse. There are also fears that a global cryptocurrency could create a liquidity crises. If people can pull money out of banks and hold it on their phones, bank runs could become far more common. Similarly, if people can seamlessly move their money internationally, central banks could face problems. In a worst case scenario, a bank — or even a central bank — could find itself bust overnight. Monetary policy: Closely tied to financial stability are worries about monetary policy. Central banks currently manage inflation and economic growth by changing interest rates to encourage either saving or spending. They can also print money to try and boost growth. How will these mechanisms be affected if there is a new widely available currency in use that central banks can’t control? It gets particularly complicated because Libra will be backed by, and valued based on, a basket of global currencies. For example, the Bank of Japan will have to think about what changing interest rates do to not just the yen but also the libra. The ultimate fear is that a new global cryptocurrency will take away central banks power to influence local economies (which is arguably what the original creators of bitcoin intended). Oversight: Libra is intended to be borderless: it will be equally accepted in Arkansas as Azerbaijan. But this creates a problem: how do regulators and politicians keep it in check? Libra will be governed by the non-profit Libra Association based in Switzerland. But if it affects economies around the world, then governments and regulators around the world will want a way of exerting influence. Governments are already struggling to get to grips with how to regulate social media and tech giants that span the globe. They will want reassurances that there will be a way to hold libra and its backers to account. Power: Ultimately, all the issues boil down to the question of power. Facebook insists that it plans on stepping back from a steering role in charge of libra once it gets off the ground. The Libra Association is made up of a consortium of tech and payment companies. Facebook is just one among them. But the project still represents a shift of power from the public sector to the private sector. Monetary policy and financial stability could become the remit of Uber and PayPal, not the Fed and the Bank of England. “It would be like handing the keys to the Federal Reserve to the NASDAQ,” said Ido Sadeh Man, who heads up the Saga Foundation overseeing rival cryptocurrency Saga. Regulators and governments will want to make sure that they don’t lose power and control over their own economies. Facebook reportedly held discussions with representatives from the Bank of England and the UK’s Financial Conduct Authority prior to the launch. David Marcus, the Facebook executive in charge of the project, told Bloomberg he has spoken to other regulators around the world. The Libra Association said on Tuesday it will “continue engaging with regulators, policymakers, and experts to solicit feedback and ensure that this global financial infrastructure is governed in a way that is reflective of the people it serves.” The immediate response to the announcement shows that it has some serious convincing to do. As eToro analyst Mati Greenspan puts it, despite the “seemingly good intentions from Facebook, there's even a fair chance this project never gets off the ground.” ———— Oscar Williams-Grut covers banking, fintech, and finance for Yahoo Finance UK. Follow him on Twitter at @OscarWGrut . Read more: Lloyds exec defends CEO's £2.8m pay: 'People like a winner' Facebook's Libra could spark 'mass adoption' of crypto Usain Bolt wants to launch electric scooters in London The 20 best CEOs in Britain, as ranked by their staff What to expect from Bank of England's interest rate decision |
News Corporation (NWSA) in Focus: Stock Moves 5.3% Higher
News CorporationNWSA was a big mover last session, as the company saw its shares rise more than 5% 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 $11.39 to $12.24 in the past one-month time frame.The move came after the company announced that it is evaluating options to sell its News America Marketing business in an effort to simplify its business structure.The company has seen a mixed track record when it comes to estimate revision of no increase and one decrease over the past few weeks, while the Zacks Consensus Estimate for the current quarter has remained unchanged. The recent price action is encouraging though, so make sure to keep a close watch on this firm in the near future.News Corporation currently has a Zacks Rank #3 (Hold) while its Earnings ESP is negative.
News Corporation Price
News Corporation price | News Corporation Quote
Investors interested in the Film and Television Production and Distribution industry may consider a better-ranked stock like IMAX Corporation IMAX, which carries a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.Is NWSA 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 reportIMAX Corporation (IMAX) : Free Stock Analysis ReportNews Corporation (NWSA) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Woman snaps chilling photo of sharks swimming just feet from oblivious beachgoers
A woman on vacation took to social media to share a series of photos depicting a group of oblivious beachgoers wading in water just feet from lurking sharks.
Ginger Gilmer, a Virginia native living in Tennessee, was visiting North Myrtle Beach in South Carolina when she snapped the concerning images from the 15th floor of a resort,WESHreports.
"Why I go to the beach to get in the pool! SHARKS!!!!" Gilmer wrote in a now-viral Facebookpost, which has been shared over 24,000 times. "Not one person had an idea of what was lurking around them."
Gilmer toldMyrtle Beach Onlinethat she didn't share the images to make people hate the creatures but, rather, to advise beachgoers to be aware of their surroundings.
"The people in the water were clearly not aware. It was an awesome sight, but scary," she said.
"(I have) mad respect for the sharks," she added. "They are amazing predators and they are right where God intended them to be. I love the beach and will definitely go back."
However, despite her intentions to revisit the popular summer destination, Gilmer wrote on Facebook that she has no intention of ever swimming in the ocean again.
"Can't see the bottom, not swimming in it!" she ended her post. |
Elliott Plans Vivendi Compromise to End Telecom Italia Feud
(Bloomberg) -- Elliott Management Corp. is preparing to compromise with Vivendi SA on board representation at Telecom Italia SpA to end their battle for influence over the indebted phone carrier, people familiar with the matter said.
The agreement between two of Telecom Italia’s biggest shareholders will come with a pledge to pursue a common strategy, said the people, who asked not to be named as the plans are not public. The board changes are slated to be discussed by Telecom Italia’s directors later this month, they said.
Telecom Italia shares were briefly suspended from trading after rising as much as 5.6%, their biggest intraday gain in four months. The stock was up 2% as of 3:54 p.m. in Milan.
Details of the agreement have not been finalized and could still change, the people said.
“We do not wish to comment apart from advising extreme caution on any such rumors,” Vivendi said in a statement. Representatives of Elliott and Telecom Italia declined to comment.
Elliott’s allies wrested control of the board from top shareholder Vivendi in May last year and in November they forced out the company’s CEO, a Vivendi appointee. The French media company spent the following months publicly attacking Paul Singer’s New York-based activist fund in an attempt to regain control.
Elliott hit back by criticizing Vivendi’s governance record and Vivendi backed down in late March when it became clear it lacked support for another boardroom coup.
Since then, the two have sought privately to align around a common approach and turn the uneasy truce into a lasting peace, said a person familiar with the matter.
Depressed Shares
Ten out of Telecom Italia’s 15 board directors are aligned with Elliott and the rest with Vivendi. Elliott wants to maintain its overall influence on the board, the person said.
There is no clear answer to Telecom Italia’s problems. Competitive threats to both its legacy fixed-line network and wireless business are undermining the profits it needs to service one of the European industry’s biggest debt loads. The Milan-based carrier’s shares, which haven’t paid a regular dividend for the past six years, tumbled to a record intraday low in January.
The biggest strategic flashpoint has been Elliott’s call for a full spinoff of the landline network to help pay down debt, an idea that Vivendi resisted. Chief Executive Officer Luigi Gubitosi has focused for now on cutting costs and doing deals to share the burden of new network spending, and results in May showed those efforts were starting to pay off.
The CEO has pushed for some form of tie-up with fixed-line rival Open Fiber SpA to shore up the landline business. Any combination or spinoff of the landline business is fraught with regulatory and political risks.
(Adds Vivendi response in fifth paragraph.)
--With assistance from Tommaso Ebhardt and Daniele Lepido.
To contact the reporters on this story: Angelina Rascouet in Paris at arascouet1@bloomberg.net;Scott Deveau in New York at sdeveau2@bloomberg.net
To contact the editors responsible for this story: Rebecca Penty at rpenty@bloomberg.net, Thomas Pfeiffer, Ben Scent
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
What Investors Should Know About Five Star Senior Living Inc.'s (NASDAQ:FVE) Financial Strength
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Investors are always looking for growth in small-cap stocks like Five Star Senior Living Inc. (NASDAQ:FVE), with a market cap of US$28m. However, an important fact which most ignore is: how financially healthy is the business? Given that FVE is not presently profitable, it’s essential to evaluate the current state of its operations and pathway to profitability. Let's work through some financial health checks you may wish to consider if you're interested in this stock. However, this is not a comprehensive overview, so I recommend youdig deeper yourself into FVE here.
Over the past year, FVE has ramped up its debt from US$8.1m to US$1.5b , which accounts for long term debt. With this growth in debt, the current cash and short-term investment levels stands at US$59m , ready to be used for running the business. Moving on, operating cash flow was negative over the last twelve months. As the purpose of this article is a high-level overview, I won’t be looking at this today, but you can assess some of FVE’soperating efficiency ratios such as ROA here.
Looking at FVE’s US$407m in current liabilities, the company may not be able to easily meet these obligations given the level of current assets of US$162m, with a current ratio of 0.4x. The current ratio is calculated by dividing current assets by current liabilities.
With debt reaching 56% of equity, FVE may be thought of as relatively highly levered. This is a bit unusual for a small-cap stock, since they generally have a harder time borrowing than large more established companies. Though, since FVE is currently unprofitable, there’s a question of sustainability of its current operations. Running high debt, while not yet making money, can be risky in unexpected downturns as liquidity may dry up, making it hard to operate.
Although FVE’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet debt obligations which means its debt is being efficiently utilised. Though its low liquidity raises concerns over whether current asset management practices are properly implemented for the small-cap. I admit this is a fairly basic analysis for FVE's financial health. Other important fundamentals need to be considered alongside. I suggest you continue to research Five Star Senior Living to get a more holistic view of the stock by looking at:
1. Historical Performance: What has FVE's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity.
2. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
UPDATE 1-Brazil airline Gol fails to reach deal with Smiles loyalty program
(Adds market reaction, background)
SAO PAULO, June 19 (Reuters) - Brazil's largest domestic airline, Gol Linhas Aereas Inteligentes SA, said on Wednesday it had failed to reach an agreement to absorb its loyalty program, Smiles Fidelidade SA, after five months of negotiations.
The failure of the talks, set up late last year after Smiles minority shareholders resisted efforts to do the deal outright, was a setback for Gol, which had said it needed an in-house loyalty program to be competitive.
Gol shares fell around 1 percent in early Wednesday trading.
Gol's main rival, LATAM Airlines Group SA, recently completed the buyout of its loyalty program, Multiplus, which had also been separately listed.
Smiles attracted minority investors with generous dividends, but its outlook is now unclear, given that its contract with Gol, its only associated airline, expires in 2032.
Gol reaffirmed on Wednesday that it does not plan to renew its operating agreement with Smiles, adding that the airline continues to "evaluate alternatives" to improve its efficiency and competitiveness.
Smiles shares fell around 10 percent in early trading. (Reporting by Christian Plumb Writing and additional reporting by Marcelo Rochabrun Editing by Chizu Nomiyama and Jonathan Oatis) |
San Diego Comic-Con: Exclusive first look at Hasbro's Hulk
Mark Ruffalo as Hulk in Thor: Ragnarok . (Photo: Walt Disney Studios Motion Pictures /Courtesy Everett Collection) As we learned in Avengers: Endgame , Bruce Banners giant green alter ego is more about the brains than the brawn these days. While we love his new look particularly those glasses its nice to recall a pre-Professor Hulk time when he was more about the smashing than the conversing. Hulks angry early years are perfectly preserved in a new six-inch scale figureit measures in at 8.5that the big brains at Hasbro designed exclusively for attendees at San Diego Comic-Con. (Photo: Hasbro) Its worth noting that Mark Ruffalo isnt the model for this particular Hulk. Instead, Hasbro took their inspiration from the characters comic book history, which explains the classic purple pants look. The figure boasts multiple points of articulation as well as a handy crushed pipe, which he can use to crush enemies, cars or whatever other puny things happen to be bothering him. (Photo: Hasbro) SDCC attendees can pick up this exclusive Hulk figure for $34.99 at the Hasbro Pulse booth on the convention floor. (Thats Booth 3329, true believers.) And while San Diego gets first dibs, Hasbro will be making limited quantities available at other domestic and overseas conventions, as well as online at HasbroPulse.com . All in all, its a smash-ing good deal. San Diego Comic-Con International 2019 runs July 18-21. Read more from Yahoo Entertainment: Captain Marvel takes flight in a special Lego San Diego Comic-Con building set (exclusive) From Lego sets and Funko figs to Monopoly and Adidas kicks, shop amazing 'Avengers: Endgame' toys and merchandise (spoilers!) The must-have 'Toy Story 4' toys: From teddy bears and star command centers to Lego sets and Keanu Reeves |
RE Royalties Acquires Royalties on 40MW Operational Solar Parks in Southern Ontario
VANCOUVER, BC / ACCESSWIRE / June 19, 2019 /RE Royalties Ltd. (RE.V) ("RE Royalties" or the "Company") is pleased to announce that it has acquired a portfolio of gross revenue royalties on four separate operational solar parks in Ontario, Canada ("Ontario Solar Projects") from Fresh Air Energy Inc. ("Fresh Air") for $1.87 million.
The Ontario Solar Projects are owned and operated by Northland Power Inc. and have a generation capacity of 40 MW and have been in operation since 2013. The Ontario Solar Projects generate approximately 60,000MWh of clean energy per year; capable of removing 2,971 tonnes of CO2 equivalent(1)from the electricity grid or providing clean electricity to 6,600 homes in Ontario annually(2).
Bernard Tan, CEO of the Company, commented, "We are pleased to acquire this portfolio of royalties from Fresh Air, in order for Fresh Air to be able to utilize this capital to bring clean affordable energy to their current initiatives in Africa. Furthermore, we are excited to be part of these Ontario Solar Projects that are operated by Northland Power. Northland is a Canadian leader in building and operating renewable energy projects in Ontario and also globally. This transaction demonstrates the strength of the royalty financing model in creating a win-win solution for our clients, shareholders and the environment."
About RE Royalties Ltd.
RE Royalties acquires revenue-based royalties from renewable energy generation facilities by providing a non-dilutive financing solution to privately-held and publicly-traded renewable energy generation and development companies. The Company currently owns 63 royalties on solar, wind and hydro projects in Canada, Europe and the United States. The Company's business objectives are to provide shareholders with a strong growing yield, robust capital protection, high rate of growth through re-investment and a sustainable investment focus.
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.
On Behalf of the Board of Directors,
Bernard TanCEO
For further details on RE Royalties, please visitwww.reroyalties.comor contact us at (778) 374‐2000 or send us an email atinfo@reroyalties.com.
(1)https://www.carbonzero.ca, Government of Canada 2017 National Inventory Report: Greenhouse Gas Sources and Sinks(2)Ontario Energy Board, EB-2016-0153
Forward Looking Statements
This news release includes forward-looking information and forward-looking statements (collectively, 'forward-looking information') with respect to the Company and within the meaning of Canadian 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. This information represents predictions and actual events or results may differ materially. Forward-looking information may relate to the Company's future outlook and anticipated events or results and may include statements regarding the Company's financial results, future financial position, expected growth of cash flows, business strategy, budgets, projected costs, projected capital expenditures, taxes, plans, objectives, industry trends and growth opportunities. Forward-looking information contained in this news release is based on certain assumptions regarding expected growth, results of operations, performance, industry trends and growth opportunities.
While management considers these assumptions to be reasonable, based on information available, they may prove to be incorrect. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving the renewable energy industry; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the renewable energy industry generally, income tax and regulatory matters; the ability of the Company to implement its business strategies including expansion plans; competition; currency and interest rate fluctuations, and the other risks.
The reader is referred to the Company's most recent filings on SEDAR for a more complete discussion of all applicable risk factors and their potential effects, copies of which may be accessed through the Company's profile page atwww.sedar.com.
SOURCE:RE Royalties Ltd.
View source version on accesswire.com:https://www.accesswire.com/549182/RE-Royalties-Acquires-Royalties-on-40MW-Operational-Solar-Parks-in-Southern-Ontario |
Asterion Signs Equity Participation Agreement with Wellcamp Business Park Pty Ltd
Vancouver, British Columbia--(Newsfile Corp. - June 19, 2019) -Asterion Cannabis Inc.("Asterion" or the "Company"), announces that, further to its news release dated April 24, 2019, the Company and its wholly-owned Australian subsidiary ("Asterion Australia") have entered into an equity participation agreement dated June 18, 2019 (the "Equity Participation Agreement") with Wellcamp Business Park Pty Ltd ("Wellcamp"),[an affiliate of Wagners Properties Pty Ltd] ("Wagners").
Pursuant to the terms of the Equity Participation Agreement, Asterion and Asterion Australia have granted Wellcamp the option to settle a portion of certain invoices (each, an "Invoice") rendered by Wellcamp to Asterion Australia for common shares in the capital of Asterion (each, an "Asterion Share"). The Invoices are anticipated to be rendered by Wellcamp in connection with goods and services to be provided to Asterion Australia in respect of the construction and development of Asterion's Toowoomba Medicinal Cannabis Project (the "Toowoomba Project"), which was recently granted Major Project Status by the Federal Australian Government in early April 2019.
Stephen Van Deventer, the Company's Chairman and CEO stated, "As Wagners and Wellcamp are expected to play an important role in the construction and development of the Toowoomba Project, we are pleased to be offering Wellcamp this equity participation option which is intended to provide Asterion with additional equity financing and offer Wellcamp the opportunity to share in the success of Asterion going-forward."
Pursuant to the terms of the Equity Participation Agreement, Wellcamp, at its sole election, has been granted the option to take Asterion Shares as payment for up to 10% (and up to 100% with the prior approval of Asterion) of any Invoice that has been approved by Asterion. The Asterion Shares will have a deemed issuance price equal to the then current financing price of Asterion, or, if Asterion is not conducting a financing, at the last financing price. All Asterion Shares issued pursuant to the Equity Participation Arrangement will be subject to applicable stock exchange and regulatory approvals.
About the Toowoomba Project
The Toowoomba Project is located near the regional hub of Toowoomba, Queensland in close proximity to the Toowoomba Wellcamp Airport, which provides access to Queensland's only dedicated 747-F international freighter service. The Toowoomba Project is planned to include a 40 hectare (4.3 million square feet) state-of-the-art greenhouse for cultivation and processing, in addition to a research centre and manufacturing facility, including administration and staff facilities. The Toowoomba Project is expected to be among the largest greenhouse facilities globally.
About Asterion
Asterion is a Canadian medicinal cannabis company with operations in Australia, specializing in medical cannabis and is focused on becoming an industry leader in next generation cannabis products. The Company is focused on the future of precision agriculture and aims to produce the highest quality genetically uniform cannabis strains, at an affordable price.
The Company is led by a team of highly experienced executives with over 120 years of combined experience in medical cannabis, renewable energy, capital markets, and other highly relevant sectors across North America, Oceania, Europe, Africa and Asia.
On Behalf of the Board of Directors
"Stephen Van Deventer"Chairman & Chief Executive Officer
For further information, please contact:Deanna Kress+1-778-999-6063info@asterioncannabis.com
Forward-Looking Statements:
This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and U.S. securities legislation, including the United StatesPrivate Securities Litigation Reform Act of 1995. All statements in this news release that are not purely historical are forward-looking statements and include statements regarding beliefs, plans, expectations and orientations regarding the future including, without limitation, the construction and development of the Toowoomba Project, the Company's and Asterion Australia's ongoing business relationship with Wellcamp and Wagners, the Equity Participation Agreement and the exercise of the option granted to Wellcamp pursuant to same, the Company's anticipated business plans, and its prospect of success in executing its proposed plans. Often, but not always, forward-looking statements can be identified by words such as "will", "plans", "expects", "may", "intends", "anticipates", "believes", "proposes", "estimates" or variations of such words including negative variations thereof and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved. Forward looking statements are based on certain assumptions regarding the Company and Asterion Australia, including that the Company and Asterion Australia will be able to obtain the financing and approvals needed to commence construction on and develop the Toowoomba Project and to carry out their planned future activities. Actual results could differ from those projected in any forward-looking statements due to numerous factors including, without limitation, the fact that the Equity Participation Agreement grants an option only and there is a no guarantee that such option will be exercised, and the inability of the Company and Asterion Australia to obtain the required approvals for the construction and operation of the Toowoomba Project, to execute its proposed business plans and to obtain the financing required to carry out its planned future activities. Other factors such as general economic, market or business conditions or changes in laws, regulations and policies affecting the biotechnology or cannabis industry, changes in general economic conditions, changes in the financial markets and in the demand and market price for cannabis, and delays in obtaining governmental and regulatory approvals, may also adversely affect the future results or performance of the Company and Asterion Australia. These forward-looking statements are made as of the date of this news release and, unless required by applicable law, the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in these forward-looking statements. Although the Company believes that the statements, beliefs, plans, expectations, and intentions contained in this news release are reasonable, there can be no assurance that those statements, beliefs, plans, expectations, or intentions will prove to be accurate. Readers should consider all of the information set forth herein and should also refer to other periodic reports provided by the Company from time-to-time.
Readers are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly, are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements.
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45718 |
Apple says iPhones can now be fixed at all U.S. Best Buy stores
By Stephen Nellis
June 19 (Reuters) - Apple Inc and Best Buy Co Inc said on Wednesday that they have extended a partnership that will allow the Minneapolis-based retailer's technicians fix iPhones at any Best Buy store in the United States.
The deal between the two companies will cover all 992 U.S. Best Buy stores, up from about 225 stores previously. In addition, 7,600 of Best Buy's so-called Geek Squad technicians now certified to carry out the repairs and using parts directly from Apple.
Apple also carries out repairs at its stores, but there are several U.S. states - including Vermont, West Virginia, both Dakotas, Montana and Wyoming - with no Apple Store.
Apple said that it now has 1,800 third-party repair providers in its U.S. network, three times as many as three years ago and enough to put eight out of 10 of its customers in the United States within a 20-minute drive of an authorized repair center.
Apple has faced criticism in the past from groups who say the iPhone maker has made its devices too difficult to repair by refusing to make genuine Apple parts available to independent repair shops.
Apple has also lobbied against attempts to pass so-called right-to-repair laws in several states, which would require the company to provided the necessary parts and information to do so.
Apple executives have told Reuters the company is seeking to ensure the quality of repairs.
"We endeavor to make it right at the same standard as when the customer bought the product," Brian Naumann, senior director of service operations at Apple, told Reuters https://www.reuters.com/article/us-apple-repair-exclusive-idUSKBN18Y0BF in 2017, when Apple made Best Buy the first entity outside of Apple to receive a secret machine for repairing cracked iPhone screens.
Keeping the 900 million iPhones worldwide in service has become more important to Apple than ever as it shifts toward a services-based business of trying to persuade its customers to sign up for paid offerings such as Apple Music and iCloud.
The past two years of updates for the iPhone's operating system have focused on making it run faster on older devices. Last February, Chief Executive Tim Cook surprised Wall Street analysts https://www.reuters.com/article/us-apple-results-users/apples-user-base-grows-but-analysts-probe-for-more-detail-idUSKBN1FM09R by saying he viewed the booming iPhone resale market as "incredibly positive." (Reporting by Stephen Nellis in San Francisco Editing by Sonya Hepinstall) |
Unilever PLC (UL) is a Great Momentum Stock: Should You Buy?
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look atUnilever PLC (UL), a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Unilever PLC currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?
In order to see if UL is a promising momentum pick, let's examine some Momentum Style elements to see if this company holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For UL, shares are up 0.13% over the past week while the Zacks Soap and Cleaning Materials industry is up 0.16% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 3.01% compares favorably with the industry's 2.72% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Over the past quarter, shares of Unilever PLC have risen 7.8%, and are up 16.5% in the last year. On the other hand, the S&P 500 has only moved 3.49% and 7.26%, respectively.
Investors should also take note of UL's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now, UL is averaging 752,717 shares for the last 20 days.
Earnings Outlook
The Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with UL.
Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. These revisions helped boost UL's consensus estimate, increasing from $2.82 to $2.86 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period.
Bottom Line
Given these factors, it shouldn't be surprising that UL is a #2 (Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Unilever PLC on your short 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 reportUnilever PLC (UL) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Are You Looking for a Top Momentum Pick? Why Orion Energy Systems (OESX) is a Great Choice
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look atOrion Energy Systems (OESX), a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Orion Energy Systems currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?
In order to see if OESX is a promising momentum pick, let's examine some Momentum Style elements to see if this energy management systems company holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For OESX, shares are up 7.81% over the past week while the Zacks Building Products - Lighting industry is up 1.49% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 28.77% compares favorably with the industry's 0.48% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Over the past quarter, shares of Orion Energy Systems have risen 197.39%, and are up 155.14% in the last year. On the other hand, the S&P 500 has only moved 3.49% and 7.26%, respectively.
Investors should also pay attention to OESX's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. OESX is currently averaging 653,067 shares for the last 20 days.
Earnings Outlook
The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with OESX.
Over the past two months, 2 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost OESX's consensus estimate, increasing from -$0.01 to $0.29 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period.
Bottom Line
Given these factors, it shouldn't be surprising that OESX is a #2 (Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Orion Energy Systems on your short 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 reportOrion Energy Systems, Inc. (OESX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Is Finning International Inc. (TSE:FTT) Worth CA$23.53 Based On Its Intrinsic Value?
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Does the June share price for Finning International Inc. (TSE:FTT) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to today's value. I will be using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.
We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model.
Check out our latest analysis for Finning International
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate:
[{"": "Levered FCF (CA$, Millions)", "2019": "CA$186.60", "2020": "CA$319.25", "2021": "CA$278.00", "2022": "CA$252.73", "2023": "CA$238.12", "2024": "CA$229.87", "2025": "CA$225.65", "2026": "CA$224.06", "2027": "CA$224.26", "2028": "CA$225.72"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x4", "2020": "Analyst x4", "2021": "Analyst x1", "2022": "Est @ -9.09%", "2023": "Est @ -5.78%", "2024": "Est @ -3.46%", "2025": "Est @ -1.84%", "2026": "Est @ -0.7%", "2027": "Est @ 0.09%", "2028": "Est @ 0.65%"}, {"": "Present Value (CA$, Millions) Discounted @ 9.14%", "2019": "CA$170.98", "2020": "CA$268.03", "2021": "CA$213.86", "2022": "CA$178.14", "2023": "CA$153.79", "2024": "CA$136.04", "2025": "CA$122.36", "2026": "CA$111.33", "2027": "CA$102.10", "2028": "CA$94.16"}]
Present Value of 10-year Cash Flow (PVCF)= CA$1.55b
"Est" = FCF growth rate estimated by Simply Wall St
After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (1.9%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 9.1%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = CA$226m × (1 + 1.9%) ÷ (9.1% – 1.9%) = CA$3.2b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= CA$CA$3.2b ÷ ( 1 + 9.1%)10= CA$1.34b
The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is CA$2.89b. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of CA$17.67. Compared to the current share price of CA$23.53, the company appears potentially overvalued at the time of writing. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.
We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Finning International as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 9.1%, which is based on a levered beta of 1.206. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Finning International, There are three fundamental aspects you should further examine:
1. Financial Health: Does FTT have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Future Earnings: How does FTT's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with ourfree analyst growth expectation chart.
3. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of FTT? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the TSE every day. If you want to find the calculation for other stocks justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Embattled father of victim in Sandy Hook massacre wins libel case against conspiracy theorists
Several years ago a small publishing house called Moon Rock Books published a 455-page volume that argued the Sandy Hook Elementary School massacre had never happened. In a dozen chapters, the book professed, among other things, that the school had been abandoned years before a gunman killed 20 first graders and six staff members. The Federal Emergency Management Agency , it claimed, had staged the event in Connecticut to promote gun control measures. And Leonard Pozner, the father of the youngest child to die that day, had faked his 6-year-old son’s death certificate in service of the conspiracy, it claimed. On Monday, Mr Pozner, who has made it his life’s work to stop those who would seek to deny the 14 December 2012 school shooting , won a key challenge. A judge ruled for the first time that Mr Pozner had been defamed by the publication of Nobody Died At Sandy Hook: It was a FEMA Drill to Promote Gun Control . “This is a victory for myself and my family,” Mr Pozner said in an interview on Tuesday. “It is also a victory for the survivors and victims’ families of all mass casualty events who have been targeted by these people.” The advocacy of the group Mr Pozner founded, the HONR Network, has helped push corporations, like YouTube and Facebook, to remove thousands of false posts about the massacre, and to provide new ways for users to report hateful content. Other family members of victims and survivors of the attack have also been involved in recent years in taking on conspiracy theorists on a variety of fronts, including through legal action. Judge Frank Remington of Dane County Circuit Court in Wisconsin ruled on Monday that the co-editors of the book, James Fetzer and Mike Palecek, had defamed Mr Pozner in their book by alleging multiple times that he had faked his son’s death certificate to promote the conspiracy. The case will now go to a jury to determine damages. The book’s publisher, Dave Gahary of Moon Rock Books, also agreed to stop selling the book as of 30 June in a separate settlement. He said that after meeting Mr Pozner in May and hearing his story for himself, he now believes him. “My face-to-face interactions with Mr Pozner have led me to believe that Mr Pozner is telling the truth about the death of his son,” Mr Gahary said. “I extend my most heartfelt and sincere apology to the Pozner family.” The ongoing battle by the families of Sandy Hook victims to stop disinformation about the attack shows how persistent conspiracy theories about the massacre remain nearly seven years after one of the deadliest mass shootings in US history. Story continues Mr Pozner is also suing Alex Jones, the right-wing conspiracy theorist and founder of Infowars, over his assertions that the massacre was an elaborately staged ruse meant to promote gun control . That case is proceeding in Texas. Separately, another case against Mr Jones brought by relatives of five children and three adults killed in the shooting, along with one FBI agent who responded to the scene, is proceeding in Connecticut. In 2016, a Florida woman, Lucy Richards, was sentenced to five months in prison for sending Mr Pozner death threats. She was also banned from visiting websites run by conspiracy theorists, including Mr Fetzer’s. On Monday, lawyers said in court documents in the Connecticut case that Jones’ legal team had included an image of child pornography as part of his legal filings in that case. Mr Jones denied the allegation, calling it an attempt to frame him. The legal challenge in Wisconsin focused on Mr Fetzer, a retired professor at the University of Minnesota Duluth, who lives in Dane County, Wisconsin, and has been asserting for years that the Sandy Hook killings were staged. Along with his co-editor, Mr Fetzer has also advanced conspiracy theories about the 9/11 attacks, John F Kennedy’s assassination and other events. He is alleged to have zeroed in on Mr Pozner as being involved in the conspiracy, leading the former professor to experience harassment and threats. To prove the case, Mr Pozner’s legal team provided a certified copy of Noah’s death certificate, as well as DNA evidence from the Connecticut medical examiner showing that he was Noah’s father, said his lawyer, Jake Zimmerman. Judge Remington said there was no question of fact in dispute, and ruled in favour of Mr Pozner in the libel case, allowing it to proceed to a jury to consider a penalty. Mr Fetzer and Mr Palecek are representing themselves in the lawsuit. Mr Fetzer, in an email, restated his belief that Noah’s death certificate was faked. “The American people are entitled to know the truth about their own history,” he said. Mr Pozner, 51, said he lives in hiding because of ongoing harassment by Sandy Hook hoaxers. Noah was also survived by his mother, Veronique De La Rosa, a twin sister, Arielle, now 13, and an older sister, Sophia, 14. Mr Pozner had also sued the book’s publisher, Moon Rock Books, which is part of a broader company, Wrongs Without Wremedies LLC. But its principal officer, Mr Gahary, said on Tuesday that after listening to Mr Pozner’s 15-hour deposition, he no longer had any doubt that he had truly lost his son. “I came away from that believing that he was telling the truth,” Mr Gahary said in an interview. “And I felt personally bad for anything that I had done to contribute to his misery.” Mr Gahary, who has published multiple conspiracy volumes, said that he has been swamped with hate mail since his change of heart became public, including from Sandy Hook deniers who have accused him of betrayal. He said he hoped to send them a message. “If someone like me is saying that I believe him,” he said, “it should carry some weight, and they should look at this event differently.” New York Times View comments |
Red Hat (RHT) to Report Q1 Earnings: What's in the Cards?
Red Hat Inc.RHT is set to report first-quarter fiscal 2020 results on Jun 20.We note that, on average, the company has delivered a positive earnings surprise of 9% in the trailing four quarters. In the last reported quarter, Red Hat delivered positive earnings surprise of 14.9%.Earnings increased 26.1% on a year-over-year basis to $1.16 per share, primarily driven by 14% growth in revenues, which totaled $879 million.IBM Set to Acquire Red HatInternational Business Machines IBM is set to acquire Red Hat for approximately $34 billion in cash.The deal is expected to be completed in the latter half of 2019 through a combination of cash and debt. Consequently, Red Hat’s shareholders will obtain $190 per share in cash, reflecting approximately 62.8% premium over the $116.68 price on Oct 26, 2018.Notably, majority of the company’s shareholders approved the transaction at a special stockholder meeting held on Jan 16, 2019.The company’s stock has returned 6.2% year to date, underperforming the 30.1% increase of the industry it belongs to.
Factors to Watch OutRed Hat is likely to benefit from strong adoption of its emerging technologies that include Ansible, OpenShift and OpenStack in the to-be-reported quarter. The company has stated that more than 1,000 customers are using Red Hat OpenShift Container Platform.Moreover, expanding customer base that included Deutsche Bank, Lockheed Martin, Emirates NBD and Public Health England (PHE) in the first-quarter fiscal 2020 is expected to boost top-line growth.Additionally, the company’s expanding partner base, including the likes of Hortonworks, Intel, Dell, Google cloud platform, Microsoft Azure, Amazon Web Services (AWS) and NVIDIA, is a key catalyst. These partnerships are helping the company cross-sell cloud-based technologies across its customer base.The company’s expanding portfolio is also noteworthy. During the to-be-reported quarter, it launched Red Hat Virtualization 4.3, its latest version of Kernel-based Virtual Machine (KVM)-powered virtualization platform. It also released OpenShift 4.The Zacks Consensus Estimate for revenues and earnings is currently pegged at $926 million and 85 cents, respectively.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.Red Hat 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 they have the right combination of elements to post an earnings beat.Alteryx AYX has an Earnings ESP of +13.66% and a Zacks Rank #2. You can seethe complete list of today’s Zacks #1 Rank stocks here.MSCI MSCI has an Earnings ESP of +10.00% and a Zacks Rank #2.
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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 reportInternational Business Machines Corporation (IBM) : Free Stock Analysis ReportMSCI Inc (MSCI) : Free Stock Analysis ReportRed Hat, Inc. (RHT) : Free Stock Analysis ReportAlteryx, Inc. (AYX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Is Matthews China Small Companies Investor (MCSMX) a Strong Mutual Fund Pick Right Now?
If you're looking for a Pacific Rim - Equity fund category, then a potential option is Matthews China Small Companies Investor (MCSMX). MCSMX bears a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
Objective
MCSMX is one of many Pacific Rim - Equity funds to choose from. Pacific Rim - Equity mutual funds typically invest in companies throughout the dominant export-focused markets of Hong Kong, Singapore, Taiwan, and Korea. Since Japan mutual funds are already popular in their own right, these Pacific funds will usually invest less than 10% of their assets in Japanese companies.
History of Fund/Manager
MCSMX finds itself in the Matthews Asia family, based out of San Francisco, CA. Since Matthews China Small Companies Investor made its debut in May of 2011, MCSMX has garnered more than $46.21 million in assets. Tiffany Hsiao is the fund's current manager and has held that role since July of 2015.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 7.39%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 12.58%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. MCSMX's standard deviation over the past three years is 18.85% compared to the category average of 13.23%. The fund's standard deviation over the past 5 years is 20.23% compared to the category average of 14.09%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. MCSMX has a 5-year beta of 0.96, which means it is likely to be less volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. Over the past 5 years, the fund has a negative alpha of -0.35. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, MCSMX is a no load fund. It has an expense ratio of 1.50% compared to the category average of 1.35%. Looking at the fund from a cost perspective, MCSMX is actually more expensive than its peers.
This fund requires a minimum initial investment of $2,500, and each subsequent investment should be at least $100.
Bottom Line
Overall, Matthews China Small Companies Investor ( MCSMX ) has a neutral Zacks Mutual Fund rank, strong performance, worse downside risk, and higher fees compared to its peers.
For additional information on this product, or to compare it to other mutual funds in the Pacific Rim - Equity, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportGet Your Free (MCSMX): Fund Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
'Revenge Body with Khloe Kardashian': Watch the brand new teaser trailer (Exclusive)
"Who do you want to get revenge on?"
That's what Khloe Kardashian asks the latest teaser trailer for the upcoming third season of E!'s "Revenge Body," available to watch exclusively on AOL.
On the show, Khloe and a group of health, fitness, beauty and style experts coach a group of men and women looking to prove to themselves -- and the negative people in their lives -- that they can overcome obstacles and that they're worthy of love.
SEE ALSO:Scott Disick getting his own reality show, 'Flip It Like Disick,' on E!
"This is going to be really hard," Khloe says in the trailer at the top of the page. "We have amazing trainers, an amazing nutritionist and so many people that are here to help you."
"It's not just about a hot body," she goes on. "It's about mind, body and soul and really changing people from within."
Season 3 of "Revenge Body with Khloe Kardashian" premieres on E! on Sunday, July 7 at 9 p.m. EST. Scott Disick will join the E!'s summer of reinvention with his new series,"Flip It Like Disick,"premiering on Sunday, August 4 at 10 p.m. EST.
RELATED: Looking back at Khloe Kardashian's transformation through the years: |
A Closer Look At FRP Holdings, Inc.'s (NASDAQ:FRPH) Uninspiring ROE
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One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. To keep the lesson grounded in practicality, we'll use ROE to better understand FRP Holdings, Inc. (NASDAQ:FRPH).
Over the last twelve monthsFRP Holdings has recorded a ROE of 0.9%. One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.0086 in profit.
See our latest analysis for FRP Holdings
Theformula for return on equityis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for FRP Holdings:
0.9% = US$4.3m ÷ US$385m (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. The easiest way to calculate shareholders' equity is to subtract the company's total liabilities from the total assets.
Return on Equity measures a company's profitability against the profit it has kept for the business (plus any capital injections). The 'return' is the profit over the last twelve months. The higher the ROE, the more profit the company is making. So, as a general rule,a high ROE is a good thing. Clearly, then, one can use ROE to compare different companies.
One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. If you look at the image below, you can see FRP Holdings has a lower ROE than the average (14%) in the Real Estate industry classification.
Unfortunately, that's sub-optimal. We prefer it when the ROE of a company is above the industry average, but it's not the be-all and end-all if it is lower. Nonetheless, it might be wise tocheck if insiders have been selling.
Virtually all companies need money to invest in the business, to grow profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. That will make the ROE look better than if no debt was used.
Although FRP Holdings does use debt, its debt to equity ratio of 0.23 is still low. Its ROE is rather low, and it does use some debt, albeit not much. That's not great to see. Conservative use of debt to boost returns is usually a good move for shareholders, though it does leave the company more exposed to interest rate rises.
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. You can see how the company has grow in the past by looking at this FREEdetailed graphof past earnings, revenue and cash flow.
Of courseFRP Holdings 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. |
Lightspeed Named CIX 2019 'Innovator of the Year' Recipient
Montreal-based Global POS Provider wins award for transforming the retail and hospitality industries
TORONTO, ON / ACCESSWIRE / June 19, 2019 /CIX (Canadian Innovation Exchange),announced today that Lightspeed has been namedCIX's 2019 Innovator of the Year.
Headquartered in Montréal, Canada, Lightspeed POS provides an easy-to-use, omni-channel commerce-enabling platform. The Company's software platform provides its customers with the critical functionalities they need to engage with consumers, manage their operations, accept payments, and grow their business. Lightspeed operates globally in approximately 100 countries, empowering single- and multi-location small- and medium-sized businesses to compete successfully in an omni-channel market environment by engaging with consumers across online, mobile, social, and physical channels. Founded in 2005, the Company has grown to over 800 employees, with global offices in Canada, the United States, Europe, and Australia.
On March 8, Lightspeed POS went public on the Toronto Stock Exchange and shares closed 20 per cent higher, making it the most successful initial public offering by a Canadian technology company in almost a decade. The surge pushed Lightspeed's market value to about $1.7 billion.
For Lightspeed's founder, it is more about the responsibility of being a national figure and making a difference.
''We are transforming the global retail and hospitality industries,'' says Dax Dasilva, Founder & CEO, Lightspeed. ''This award is a huge honor for me and the entire Lightspeed team.''
The CIX Innovator of the Year Award is given annually to a Canadian company that disrupts and transforms an industry in profound ways. ''Celebrating Canada's tech industry successes is hugely important which we don't do enough of as a country. We are proud to present this award to Lightspeed,'' says Lauren Linton, Executive Director of CIX. ''Dax is a role model leader on so many levels; his belief in the power of diversity, staying in Canada, giving back and not selling out.'' Past recipients of the Award have included ecobee, Real Matters, Wattpad, Shopify, Vision Critical and Desire2Learn.
In its 12thyear, CIX is Canada's premier investment conference destination where tech investors, innovative companies, entrepreneurs, and facilitators converge. At CIX, leaders learn, network, and connect to accelerate the development and implementation of new ideas that drive economic growth. CIX takes place Oct 16-17 in downtown Toronto.
''We are proud to have supported Dax and the entire Lightspeed team over the past six years. ''says Chris Arsenault, General Partner at Inovia capital. ''They continue to bring true innovation and a competitive edge to independent businesses in local communities, even as they reach for global growth. Lightspeed's choice to file an IPO on the Toronto Stock Exchange is a sign of its commitment to the Canadian tech ecosystem. Whether it's in regards to its business approach, its technology, or its vision for uplifting SMBs - Lightspeed has started a new chapter for Canadian technology and innovation.''
Inovia Capital is an investor in Lightspeed POS and has participated in four financing rounds beginning in 2012.
Dax Dasilva will accept the award on behalf of Lightspeed POS and share his story and insight as the opening keynote speaker with Chris Arsenault on October 16 at CIX in Toronto.
About CIX - Canadian Innovation Exchange
CIX is Canada's startup investment conference. Invited attendees are founders of Canada's most innovative early and growth-stage tech companies and global investors and corporates. CIX takes place over two days, Oct 16-17, 2019 in downtown Toronto. Companies looking to apply to CIX Top 20 Early and CIX Top 10 Growth awards program may do so at no cost athttps://cixtop20.cixsummit.com/entry/
For more information, please visit:https://cixsummit.com/2019/
On social media:FacebookandTwitter
ABOUT LIGHTSPEED POS INC.
Lightspeed is a cloud-based commerce platform powering small and medium-sized businesses in over 100 countries around the world. With smart, scalable, and dependable point of sale systems, it's an all-in-one solution that helps restaurants and retailers sell across channels, manage operations, engage with consumers, accept payments, and grow their business. Headquartered in Montréal, Canada, Lightspeed is trusted by favorite local businesses, where the community goes to shop and dine. Lightspeed has grown to over 700 employees, with offices in Canada, USA, Europe, and Australia.
For more information, please visit:www.lightspeedhq.com
On social media:Linkedin,Facebook,Instagram,YouTube, andTwitter
If you would like more information, please contact:
Bradley GrillDirector of Public RelationsLightspeed POS Inc.+1 514-375-3155 ext: 7980+1 514-616-2000 (Mobile)bradley.grill@lightspeedhq.com
Peter JonesMarketingCIX Canadian Innovation Exchange416-408-2300 X 238pjones@brunico.com
SOURCE:CIX Canadian Innovation Exchange
View source version on accesswire.com:https://www.accesswire.com/549233/Lightspeed-Named-CIX-2019-Innovator-of-the-Year-Recipient |
Tomi Lahren backs AOC's birth control plan
Alexandria Ocasio-Cortez ’s likening of migrant detention centers to concentration camps may have conservatives seeing red , but she’s getting support on another matter from an unexpected source: Fox Nation host Tomi Lahren . A month after she surprised followers by calling Alabama’s abortion ban “too restrictive,” the conservative commentator has announced that she agrees with Ocasio-Cortez that birth control should be available over the counter and without a prescription. The freshman congresswoman is among the co-sponsors of the “Affordability Is Access” bill created by Rep. Ayanna Pressley (D-Mass.) to make oral contraception more readily available and covered by insurance. Though Lahren typically delights in throwing barbs at those with liberal views , she admitted that making birth control easier to access would be “helpful.” In true Lahren fashion, however, she added a caveat: “Acknowledging that doesn’t make me feminist, makes me a realist!” Never thought this would happen, but I agree with @AOC birth control should be available over-the-counter. Working women don’t have a lot of spare time-removing the doctor’s visit burden would be helpful. Acknowledging that doesn’t make me feminist, makes me a realist! — Tomi Lahren (@TomiLahren) June 18, 2019 Lahren isn’t the first so-called strange bedfellow to take up the birth control cause. Earlier this month, Republican Sen. Ted Cruz offered to team up with Ocasio-Cortez on a “simple, clean bill.” Rep. Pressley then swooped in to remind him that said bill was already in the works. Hi there @tedcruz hit up our girl @pattymurray she and I have already written the bill, album dropping tomorrow 😉 @AOC 's vocals (& original co sponsorship) = on point. @KatieHill4CA ’s an original too. Just call it the Destiny's Child of OTC birth control https://t.co/Ri2q1Viez4 — Ayanna Pressley (@AyannaPressley) June 12, 2019 Lahren’s tweet got a lot of criticism, for a variety of reasons. Many followers voiced concerns that using over-the-counter contraceptives without the green light from a doctor could put women at risk of health complications. Others objected to Lahren’s jab at feminism. Story continues This whole tweet was going so well and then you had to write that last sentence... — Aaron Reid (@reidaa31) June 18, 2019 They’re necessary for her to stay in character. — ¯\_(ツ)_/¯ YATT (@the_wyatt_act) June 19, 2019 (feminism is just being honest about real problems and real equality Tissue Labrum) — Brandon Bradford (@BrandonLBradfor) June 19, 2019 Realism and feminism aren’t mutually exclusive?????????? — Robin Baudreau (@wonderlostme) June 19, 2019 Some liberals were surprised to find themselves agreeing with the Republican TV personality. “Stop saying s*** I can agree with, it makes me feel gross,” quipped one commenter. One of the few things I agree with you. It’s OTC in every civilized country. — Vote Dem for the Planet (@Brasilmagic) June 18, 2019 My goodness I agree with you for once, perhaps there’s more to all of us than our politics?! — Elizabeth McCarten (@McC_Beth) June 18, 2019 Tomi is WOKE. 🙌🏽 — Kelly Hernandez (@astoldbykells_x) June 18, 2019 Lahren’s more conservative fans, however, pushed back against her proposal. Several suggested that women rely instead on abstinence or use condoms with a sexual partner, though many women use birth control for a variety of health issues, not merely to prevent pregnancy. Go to any health department near where you live, any woman will receive an exam and bc that is right for her, very dangerous to just hand out medication over the counter with some of the side effects that can cause...also there are condoms and “gasp” abstinence..... — Kelly Thomas Griffin (@KAT0426) June 19, 2019 It’s available now, they are called condoms. — Jpullen (@Jpullen20) June 18, 2019 Condoms? — John Ulzheimer (@johnulzheimer) June 18, 2019 All of these people being like "derp condoms!" You know they can break, right? That happened to me twice in the past. Or women taking control of her own reproductive choices and not leaving it up to the guy to put a condom on? — Sarah, one of many in the world 🌲🌴🌵 (@slyminx) June 18, 2019 Read more from Yahoo Lifestyle: Melania Trump kicks off 2020 campaign in bold yellow jumpsuit worth $2,790 Protesters confront Trumps with giant talking, farting robot depicting president tweeting from a gold toilet Dominique Jackson of 'Pose' on LGBTQ Pride and culture: 'Trans women have always been the nurturers' Follow us on Instagram , Facebook , Twitter and Pinterest for nonstop inspiration delivered fresh to your feed, every day. |
U.S. Navy Says It Has Proof Iran Was Involved in Oil Tanker Attacks
A U.S. navy investigator presented what he said was evidence of Iran’s involvement in the attacks on tankers near the Persian Gulf, laying out the most detailed assessment that’s been made public since the incident raised tensions in the region earlier this month.
Commander Sean Kido, an explosives expert at the Bahrain-based Fifth Fleet, said the attack on the Japanese-operated vessel, the Kokuka Courageous, was carried out by a limpet mine planted on the tanker’s body above the water line.
Speaking to reporters on Wednesday at a U.S. Naval Forces Central Command facility near the Port of Fujairah in the United Arab Emirates, Kido said his team of investigators was able to recover a magnet used to attach the limpet mine to the skin of the ship. It also retrieved a handprint as well as fingerprints from near the spot where the magnet was found.
“The limpet mine that was used in the attack is distinguishable and it’s also strikingly bearing a resemblance to Iranian mines that have already been publicly displayed in Iranian military parades,” Kido said. “We recovered biometric information which can be used to build a criminal case to hold the individual responsible.”
Still, he stopped short of directly blaming Iran and presented no evidence about a second attack that same day on the Norwegian-owned Front Altair ship.
The burden of proof is on the U.S. to back up its claims that Iran was behind a spate of attacks on oil tankers near the Strait of Hormuz, a shipping chokepoint through which about 40% of the world’s seaborne oil travels.
In an unusual step, U.S. Central Command earlier released video footage of what it said was an Islamic Revolutionary Guard Corps patrol boat removing an unexploded mine from the Kokuka Courageous after another mine had detonated and damaged it. The blurry footage showing a small boat pulling up next to the tanker and crew removing an object from its hull was taken by U.S. aircraft in the region.
Although President Donald Trump has said “Iran did it,” that hasn’t erased questions about the strength of the evidence presented so far. Until now, his administration depended on the video and photographs released by U.S. Central Command.
Internationally, the U.K. said it’s “almost certain” Iran was behind the attacks because nobody else plausibly could have carried them out. United Nations Secretary-General Antonio Guterres called for an independent investigation because “it is very important to know the truth.”
“The mine was placed above the water and it does not appear that the intention was to sink the vessel,” Kido said.
A round magnet as well as several fragments of materials recovered from the Kokuka Courageous were laid out on a white table cloth for reporters. It was part of the evidence collected by U.S. investigators who arrived at the scene after the blast, officials said.
Two nail holes were also visible in one section of the vessel, which the Navy’s expert said were also used to attach the mines.
Also recovered were the “fragmentations caused by the detonation of the limpet mine which is composed of an aluminum material as well as a composite material,” Kido said.
The expert contradicted statements made by the ship’s Japanese owner who said the damage to the hull was caused by a projectile. As to why a magnet was left behind, an official suggested it might have been hard to remove. Sailors described seeing two men use a crowbar to pry it loose.
“The damage at the blast hole is consistent with a limpet mine attack,” Kido said. “It’s not consistent with an external flying object striking the ship.”
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Semiconductor Maker Macom Cuts Guidance After Huawei Ban, Lays Off 250 In Restructuring
The semiconductor companyMACOM Technology Solutions Holdings(NASDAQ:MTSI) is warning that its third-quarter revenue is expected to fall due to the Huawei ban.
What Happened
Macomsaid Tuesday that its third-quarter revenue is now expected to fall in a range between $107 million and $109 million versus prior guidance of $120 million to $124 million.
The Lowell, Massachusetts company's non-GAAP gross margin is now expected to be between 39% and 41%, which includes approximately $14 million in inventory reserves, or 1,300 basis points of gross margin impact.These inventory reserves are associated with certain data center products and products that would otherwise be shipped to Huawei. This compares to prior non-GAAP gross margin guidance of 53% to 55%.
In addition to the downward guidance revision, Macom announced a restructuring plan in which it said it will permanently reduce its workforce by 20%, or 250 employees. The plan is expected to create $50 million in annual savings, the company said.
The company is also closing seven product development facilities in locations including France, Japan, the Netherlands, Florida, Massachusetts, New Jersey and Rhode Island.
Why It's Important
The company said it updated guidance to reflect the impact of discontinuing shipments to Huawei Technologies as a result of the Department of Commerce addition of Huawei to its “entity list.”
The company's updated guidance also reflects reduced shipments to certain distribution channel partners, according to Macom.
“We do not make these decisions lightly, however, these actions are necessary in order to strengthen our strategic plan,” CEO Stephen Daly said in a statement.
What's Next
Macom is expected to report third-quarter results sometime around late July, according to the Benzinga Pro earnings calendar.
The stock was trading higher by 0.76% at $14.54 at the time of publication Wednesday.
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© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
lululemon Launches Selfcare Products, Teams Up With Sephora
lululemon athletica inc.LULU has announced the launch of a Selfcare line of personal care products for men and women. Designed to meet athletes' requirements, this product line will be available at lululemon’s online site, across 50 lululemon stores, at select studio partners in North America, and on Sephora.com.The latest product launch also highlights the partnership deal between lululemon and Sephora, thereby strengthening customer base of the former. Notably, lululemon Selfcare has the Clean at Sephora seal, which certifies the fact that these products do not contain sulfates, parabens and phthalates.In fact, lululemon’s product innovation plan mainly focuses on testing new categories. In this regard, it is imperative to mention that the company has identified several new areas, which it can test to bring innovation to guests, self-care category being one of them. This category includes four products namely deodorants, moisturizers, shampoos and lip balms to tackle sweat problems.Additionally, the company intends meet customers’ growing preference for athleisure by launching product lines related to activities like yoga, running and training. Meanwhile, lululemon has announced a five-year plan — Power of Three — that aims at doubling sales in the men’s and digital categories, and quadrupling sales in the international unit by 2023. This five-year plan focuses on three core objectives including product innovation, omni-guest experiences and expansion efforts. It also comprises contributions from the company’s membership program, which is currently in the testing phase.Furthermore, the women’s business and stores in North America are likely to deliver sales growth of low double-digits annually in the next five years. lululemon plans about 20% sales growth for the men’s business every year. Going forward, management remains optimistic about the innovations in its assortments for both men and women.Another key element of lululemon’s five year plan is enhancing omni-channel guests’ experience. The company is looking for new and exciting ways to connect with customers, as evident from the testing of its loyalty program. Further, the company has increased its online only size and color offerings for both men and women, which clearly highlights its efforts to attract digital guests. lululemon has also improved its mobile point-of-sale capabilities to help guests complete their purchases from the stores.
Driven by all such positive factors, shares of this Zacks Rank #2 (Buy) company have surged 54.7% year to date, comfortably outperforming the industry’s 24.2% rally.3 Other Key PicksCrocs Inc. CROX has an expected long-term earnings growth rate of 15% and a Zacks Rank #1 (Strong Buy) at present. You can seethe complete list of today’s Zacks #1 Rank stocks here.Guess', Inc. GES has an expected long-term earnings growth rate of 17.5%. Moreover, it currently carries a Zacks Rank #2.Columbia Sportswear Company COLM, also a Zacks Rank #2 stock, has an expected long-term earnings growth rate of 8.9%.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 reportlululemon athletica inc. (LULU) : Free Stock Analysis ReportColumbia Sportswear Company (COLM) : Free Stock Analysis ReportCrocs, Inc. (CROX) : Free Stock Analysis ReportGuess?, Inc. (GES) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Here Are the Cleanest Grocery Stores in America
Consumer Reports has no financial relationship with advertisers on this site. Consumer Reports has no financial relationship with advertisers on this site. Nothing is as big a turn-off as a dingy grocery with stained floors, free-floating crumbs, and sticky puddles underfoot. It's enough to make you abandon your cart and run. So it's no surprise that if there's one feature that the best supermarkets and groceries in the U.S. share, it's cleanliness: bright lighting, shiny floors, gleaming glass and counters, and well-tended displays. Cleanliness, in fact, is a common element among all of the top-rated groceries in Consumer Reports' recent nationwide member survey of grocery stores, supermarkets, and warehouse clubs. The six grocers that landed in our top rating tier for overall satisfaction got high marks for cleanliness. They include regional brands Texas-based Central Market; the mid-Atlantic's Wegmans; Heinen’s, in Ohio and the Chicago area; Southern California-based Gelson’s Markets; and the Northeast's Market Basket—as well as Trader Joe’s, our highest-rated national chain. Supermarkets That Gleam "Cleanliness has a large impact on your overall opinion of your grocery store, our results show," says Jane Manweiler, a CR survey research associate. In addition to those top six stores, 17 markets that placed high—but not tops—in our ratings nonetheless excelled for cleanliness. In ratings order, they are: • New Seasons Market • Publix • Military Commissary • The Fresh Market • Festival Foods (Wi.) • Dierbergs • Lunds & Bylerlys • Fresh Thyme Farmers Market • Natural Grocers • Reasor's • Raley's • Lowes Foods (NC, SC, VA) • Hy-Vee • Haggen Northwest Fresh • Lidl • Roche Bros. • Brookshire's Stores placing among the lowest overall in our ratings—including the national brand Walmart Supercenter and Eastern retailers Tops and Key Food—had disappointing orange chevrons for cleanliness, suggesting that CR members found them lacking on that count. Story continues Ohio-based Marc's, a discount drugstore and grocery chain, also got an orange chevron for cleanliness—the second-to-lowest score. But it rated middling overall, perhaps due to its superior pricing. (In that category, the store received a dark green chevron, the highest available score.) To arrive at these results (and more), CR researchers collected survey responses from more than 75,000 Consumer Reports members, who rated the one or two supermarkets they go to most often. In all, our members reported on more than 140,000 visits to grocers, which enabled CR to rate 96 groceries nationwide. How to Make a Sparkling Impression What does it take to make a grocery seem—and be—spotless? Executives for the Cleaning Services Group (CSG), a janitorial and building services contractor in Danvers, Mass., for hospitals, supermarkets, and other retailers, recently gave Consumer Reports its take on what qualities convince consumers that a supermarket is clean. They include: • Spotless entries. Stores that value cleanliness put effort into keeping the sidewalks outside their venues free of coffee stains, cigarette butts, gum residue, and other signs of grit. "They regularly power wash their sidewalks, and once a week remove all the carts in front and clean there, too," says Rick Sturgis, CSG's chief marketing officer. "When you see papers everywhere in the vestibule, that makes a bad impression." • Hand sanitizers. In the vestibule, in the poultry section, and in other germ-prone areas, the presence of these dispensers reflects concern for cleanliness, says Lauren Grant, CSG's vice president of business development. "You want those wipes for your cart handles," she notes. "I look for that when I walk in." (Consumer Reports says hand sanitizers that are at least 60 percent alcohol are appropriate when soap and water isn't available .) • Gleaming floors. Polished concrete in its natural, light gray color is replacing floors colored tan and brown to look like distressed leather, says Dennis O'Brien, CSG's chief executive officer. "That was popular about 10 years ago," he says. "Eventually, the coloring started to come out, and it looked messy." Good retailers wash and buff their floors daily, O'Brien adds. • Restrooms. Walking through a smelly stockroom to reach a scary, dark, one-stall room is increasingly rare. In newer stores, you'll find restrooms by the entrance and also near the fresh-prepared food dining area. Newer designs have bright lighting, multiple stalls, air fresheners, and better accessibility—and never run out of toilet paper, Sturgis says. "They should be inspected several times an hour." • Quick spill cleanup. Porters responsible for spotting and mopping up messes should be roaming the store regularly, O'Brien says. Ideally, he adds, they'll have equipment with an extractor on it that sucks everything up right away and prevents stains from penetrating the floor finish. "The ones at the top of your list, they have porters all day long," O'Brien notes. "That makes all the difference." More from Consumer Reports: Top pick tires for 2016 Best used cars for $25,000 and less 7 best mattresses for couples Consumer Reports is an independent, nonprofit organization that works side by side with consumers to create a fairer, safer, and healthier world. CR does not endorse products or services, and does not accept advertising. Copyright © 2019, Consumer Reports, Inc. |
4 Reasons to be Skeptical About Facebook's Libra Cryptocurrency
Facebook’s big cryptocurrency reveal came with big promises: Libra will make payments more convenient than ever, and help 1.7 billion “unbanked” people access financial services.
But the announcement of Libra has not been greeted with universal acclaim. Regulators and industry observers see a range of reasons to be deeply skeptical about what the new cryptocurrency promises or—depending on one’s standpoint—threatens.
There are certainly reasons to believe Libra could be a success, namely Facebook’s unmatched global reach and its apparent ability to get industry partners on board. But here’s a breakdown of the reasons why Libra may not fly:
Facebook’sblog postannouncing its planned Colibra digital wallet—essentially an app allowing people to use Libra—promises that “in time, we hope to offer additional services for people and businesses, like paying bills with the push of a button, buying a cup of coffee with the scan of a code or riding your local public transit without needing to carry cash or a metro pass.”
As formerGuardiantech editor Charles Arthur rightly scoffed on Twitter, this may be a function of the U.S., Facebook’s home market, being behind the times when it comes to consumer financial services.
In much of the rest of the world, people are used to tapping their smartphones on a reader to pay for a coffee or a ride on public transit. As for paying bills, there are myriad ways to achieve this online using regular currency, from automated direct debits to banking apps and financial technology services such as the Sweden-based app Klarna.
How about passing money to other users with minimal fuss? Well, there’s already PayPal and its Venmo app for that, among many other alternatives. The problem is not new, and nor are the solutions.
As Facebook rightly points out, almost half of the world’s adults lack bank accounts, with figures being worse in developing countries and among women. The solution, it says, could lie in the Colibra wallet.
One problem here is that many of those who lack bank accounts also lack smartphones. “Even if people own a smartphone, the cost of data can be prohibitive,” South African tech industry observer Toby Shapshak toldthe Daily Maverick. “Unless it is simple to use, simple to get cash in and out of the system and easy to understand, it’s already at a disadvantage.”
Some mobile operators have already been tackling this problem for a long time, notably Kenya’s Vodafone-backed Safaricom, which launched a mobile banking service called M-Pesa a dozen years ago. M-Pesa also targets the unbanked, using even basic phones as a way to access and use financial services—people can deposit and withdraw funds from widespread kiosks, with their SIM card validating their identity.
People can even send money from abroad to an M-Pesa user’s phone, using a variety of services. Facebook is pitching Libra as a way to avoid high international remittance fees, which have traditionally been a problem, but again, people have already been solving this problem for a few years now.
M-Pesa is now used in many countries from India to South Africa, and even in parts of Eastern Europe. Interestingly, Vodafone is one of the members of the Libra Association that will run the new cryptocurrency. “We hope that Libra will provide another route for unbanked people to access financial services in a range of other countries which is the reason we are involved,” said a Vodafone spokesperson.
Also, as theFinancial Timeshas notedin its über-cynical coverage of Libra’s launch, Facebook’s new virtual currency does nothing to address the most common reason people don’t have bank accounts: they don’t have enough money to put in them. And that’s a socio-economic rather than technical problem.
The Libra Association pretty much guaranteed the ire of regulators when itsaid in launch materialsthat “in the early development of the Libra network, its Founding Members are committed to working with authorities to shape a regulatory environment that encourages technological innovation while maintaining the highest standards of consumer protection.”
That sounds a lot like Mark Zuckerberg’sFebruary pronouncementthat he is “open to meaningful regulation” for Facebook in the fields of privacy and disinformation. Regulators and lawmakers tend to see themselves as the givers of rules, not the takers.
And so regulators and lawmakers on both sides of the Atlantic have pounced on the Libra project. In the U.S., House Financial Services Committee Chair Maxine Waters (D–Cali.) hasasked Facebook to pauseLibra’s development until Congress and regulators have had time to parse the implications. Waters is a Democrat, but the committee’s ranking Republican, Rep. Patrick McHenry of North Carolina, agrees with her, warning of “many open questions as to the scope and scale of the project and how it will conform to our global financial regulatory framework.”
In Europe, French Finance Minister Bruno Le Mairesaidit “can’t and must not happen” that Libra becomes a replacement for traditional currencies, and has urged G7 central bank governors to urgently look into the system. Bank of England Governor Mark Carney also said organizations such as the G7, the International Monetary Fund and the Bank for International Settlements would have to handle the development in “a coordinated fashion.”
As well they might. As Carney noted, “anything that works in this world will become instantly systemic.” Regulators do not want to find themselves playing catch-up here.
Le Maire also warned that Facebook’s Colibra wallet “will allow this company to assemble even more data, which only increases our determination to regulate the Internet giants.” Which brings us to the final problem: trust. Facebook has adismal record when it comes to keeping its privacy promises, so why would this time be different?
The big promise in this case is that Facebook won’t use financial data from Colibra for ad-targeting purposes without users’ consent. But how will it get that consent, and what will regulators say about that mechanism? Bear in mind that Facebook isalready being suedin Europe over the way it gathers consent from users for using their data to target ads at them.
AsFortune‘s Robert Hackett haspointed out, Facebook’s insistence that data-merging will only take place after explicit opting-in is still not a binding privacy policy. It’s a promise being made probably a year or so before Libra and Colibra launch. Remember how Facebook once swore it would never merge WhatsApp and Facebook data? That promisedidn’t turn out to be worth much. And with Facebook facing likely censure and a fat fine from the Federal Trade Commission over its breaking of various other privacy promises, it’s not like Facebook’s image on the privacy front is set to improve anytime soon.
TechCrunch’s Josh Constinehas also noted that the Libra Association won’t actively vet the developers who want to build digital wallets that handle Libra. So, while Facebook’s own Colibra wallet will supposedly come with high security, customer support and refunds in the case of theft, a shady cryptocurrency analog to Cambridge Analytica could theoretically build its own wallet that exposes consumers to the loss of their Libra coins.
None of this is to say that Libra definitely won’t be a success—again, Facebook’s scale is unmatched—but it’s no dead cert, and there needs to be a lot more clarity on how the system will achieve its lofty goals.
This article was updated to include Vodafone’s statement.
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Could Gaia, Inc.'s (NASDAQ:GAIA) Investor Composition Influence The Stock Price?
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A look at the shareholders of Gaia, Inc. (NASDAQ:GAIA) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'
Gaia is not a large company by global standards. It has a market capitalization of US$129m, which means it wouldn't have the attention of many institutional investors. In the chart below below, we can see that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholder can tell us about GAIA.
View our latest analysis for Gaia
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that Gaia does have institutional investors; and they hold 46% of the stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Gaia, (below). Of course, keep in mind that there are other factors to consider, too.
It would appear that 7.1% of Gaia shares are controlled by hedge funds. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders maintain a significant holding in Gaia, Inc.. Insiders own US$43m worth of shares in the US$129m company. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You canclick here to see if those insiders have been buying or selling.
The general public, with a 14% stake in the company, will not easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
It's always worth thinking about the different groups who own shares in a company. But to understand Gaia better, we need to consider many other factors.
Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can checkthis free report showing analyst forecasts for its future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Today's Pickup: PEV, Tesla Owners In California Mostly Rich Men
Good day,
ThatTesla Inc(NASDAQ:TSLA) buyers are mostly men and mostly rich doesn't come as much of a surprise. The car is pricey – ranging in cost from $35,000 to $124,000 before tax incentives – and the marketing skews masculine. That a majority of buyers of all plug-in electric vehicles (PEV) in California are male comes as more of a surprise. But that's one of the findings of anew study based on survey responsesco-authored by Scott Hardman, a post-doctoral researcher at theUC Davis Institute for Transportation Studies. Hardman, who reported on the study during this week'sRoadmap 12 EV conference, said 49 percent of PEV buyers in the state were so-called "high-income" (those who earned more than $252,000 annually and owned their home), and only 24 percent of those high income buyers were women. The second-largest group of buyers – at 26 percent – earned an average of $127,000 annually, and only 26 percent in that category were women. An even smaller proportion of women, 22 percent, were Tesla owners.
Interestingly, gender equity increased lower down on the income ladder – 48 percent of PEV owners who fell into a category defined as "middle income renters" were female. "I don't know why so few women purchase EVs," Hardman puzzled with FreightWaves after his talk. "It's something we need to look into."
One thing is certain: Since only 3.6 percent of California's population falls into the high-income category, that group will not continue to be the largest group of PEV adopters. "The high income cluster will be saturated," Hardman said.
Did you know?
TheLos Angeles CleanTech Incubatoris planning to pilot a last-mile zero emission area, where only zero emission vehicles are allowed to pickup/drop off parcels. The team is currently working to identify a suitable location.
Quotable
"You have a right to go into a dealership and be sold an EV, rather than a gas car."
Jay Friedland, Director ofPlug-In America,defining an EV driver's "Bill of Rights" at theRoadmap 12 EVconference in Portland this week
In other news
Zero-waste online supermarket Good Club crowdfunds $500K
The grocer aims to become the world's first zero-waste online supermarket. (Ecommercenews)
Ubereyes acquisition of Mighty AI for self-driving car effort
The potential deal is another sign of a looming shakeout in the self-driving car field. (TheInformation)
Seattle cuts the number of Lime and Jump bikes allowed on the streets
The cuts penalize companies for not reporting improperly parked bikes. (Seattle Times)
Oregon State University launches research center focused on hemp
The Global Hemp Innovation Center will help accountability by standardizing U.S. hemp for a global market. (Oregonlive)
Final thoughts,
Supporters and opponents of Oregon's cap-and-trade bill are on tenterhooks this week. The controversial bill passed the Oregon House on June 17, and a vote is expected this week in the Oregon Senate. If the legislation passes, Oregon will be only the second state after California to implement a cap-and-trade carbon emissions plan.
Image Sourced From Pixabay
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© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
How Goodfood Market Corp. (TSE:FOOD) Can Impact Your Portfolio Volatility
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If you're interested in Goodfood Market Corp. (TSE:FOOD), 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. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. The first type is company specific volatility. Investors use diversification across uncorrelated stocks to reduce this kind of price volatility across the portfolio. The second 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 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 below one is either less volatile than the market, or more volatile but not corellated with the overall market. In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.
See our latest analysis for Goodfood Market
Zooming in on Goodfood Market, we see it has a five year beta of 1.49. This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. If the past is any guide, we would expect that Goodfood Market shares will rise quicker than the markets in times of optimism, but fall faster in times of pessimism. Beta is worth considering, but it's also important to consider whether Goodfood Market is growing earnings and revenue. You can take a look for yourself, below.
With a market capitalisation of CA$165m, Goodfood Market is a very small company by global standards. It is quite likely to be unknown to most investors. It takes less money to influence the share price of a very small company. This may explain the excess volatility implied by this beta value.
Beta only tells us that the Goodfood Market share price is sensitive to broader market movements. This could indicate that it is a high growth company, or is heavily influenced by sentiment because it is speculative. Alternatively, it could have operating leverage in its business model. Ultimately, beta is an interesting metric, but there's plenty more to learn. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as Goodfood Market’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Financial Health: Are FOOD’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. |
Business Groups Try To Pull Trump, Congress Back To Infrastructure
With issues like trade wars with China and escalating unrest in the Middle East vying for attention in Washington, business and labor are scrambling to get the White House and Congress back to talking infrastructure before the 2019 legislative calendar runs out.
The U.S. Chamber of Commerce and 40 business and labor groups sent President Donald Trump and Congressional leadersa letter on June 18that includes astate-by-state cost analysisof taking no action on highway trust fund shortfalls versus raising the gas tax by 25 cents.
The letter comes a month after President Trumpcancelled a meeting at the White Housewith House Speaker Nancy Pelosi (D-California), Senate Minority Leader Chuck Schumer (D-New York) and others in which there was some hope that funding mechanisms would be discussed. It also comes just a week after the Presidentthreatened to cancel his membershipin the U.S. Chamber over the group's opposition to tariffs.
"While disappointed the May 22 White House meeting did not lead to a substantive discussion on infrastructure investment solutions, we remain encouraged by the progress that has been made to fix our country's failing infrastructure, and remain committed to getting the job done for American families, workers and businesses," the letter states.
Next year being an election year increases the pressure to get an infrastructure package or a surface transportation reauthorization bill done in 2019, according to policy experts, especially with the Highway Trust Fund set to expire just five weeks before the election.
"We were getting optimistic earlier this year on a broader infrastructure bill, but at this point I'm not so optimistic," said American Trucking Associations (ATA) Chief Economist Bob Costello, speaking at a shipper conference on June 10. ATA is one of the groups signed onto the White House letter.
Costello noted that while raising taxes is never popular on Capitol Hill, there is a strong case to be made at the state level that raising taxes to pay for roads and bridges is not politically unpopular. "Arkansas just passed – with a Republican legislature and Republican governor – a fuels tax increase. We do not know of any Republican that has been kicked out of office at the state level because they voted for a fuels tax increase."
According to the group's analysis – the numbers for which are "illustrative estimates only" – California and New York have the most to gain or lose from action or inaction on infrastructure at the federal level. If no new federal money is appropriated for the Highway Trust Fund, California stands to lose $1.5 billion, but could gain $2.1 billion with a 25 cent gas tax increase. New York would stand to lose $1.14 billion or gain $1.3 billion.
Image Sourced From Pixabay
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© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Listeria outbreaks: why they should be much rarer in ten years' time
Endangered species. Kateryna Kon A listeria outbreak in the UK has infected nine people and killed five of them in June 2019. The bacteria was transmitted via sandwiches and salads eaten in seven hospitals across England, supplied by the Good Food Chain, a company based in the Midlands. The outbreak came to light after samples from its meat supplier tested positive for the bacteria, which microbiologists refer to as L. monocytogenes . People who contract listeria risk developing an infection called listeriosis, which can be dangerous to the likes of pregnant women, immunocompromised people and the elderly. The riskiest foods include soft cheeses, unpasteurised milk, salads and certain types of processed meat and fish. This is the third significant outbreak around the world in the past several years. South Africa experienced the largest ever incidence in 2017-18, when more than 200 people died after eating a contaminated ready-to-eat sausage called polony. The outbreak led to product recalls from some 15 countries in the region. Between 2015 and 2018, an outbreak in Europe killed ten people and infected more than 50. It was caused after a vegetable processing facility in Hungary contaminated frozen products being shipped to numerous countries, including the UK, Finland and Austria. The bacteria persisted despite the manufacturers following all the regulations on sanitation. Disasters such as these could probably have been avoided if samples of these factory food products had been pre-tested using the latest genome sequencing technology. This has yet to filter down to industry – because the costs are still too high – so food manufacturers are still relying on standard laboratory bacteria tests. The good news for the future is that this is soon likely to change. How Listeria spreads L. monocytogenes lives in soil, water courses and plants as an organism known as a saprophyte , which lives off dead and decaying matter. It also exists in the gut of animals – including humans – often causing no symptoms and then being passed out in faeces. Because fresh vegetables are grown in tight spaces, it is difficult to prevent them being contaminated from these sources – due to the likes of soil splash and interactions with wild animals in the field. Story continues To become a problem for the food industry, there usually needs to be a contaminated “pinch point” in the manufacturing process that can spread bacteria to a large volume of products. In the Hungary outbreak, for instance, L. monocytogenes matching the culprit strain were traced to the floor drain of the processing factory and to spinach from a vegetable grinder. One reason why listeria bacteria are so good at surviving in the food supply chain is because they form bacterial biofilms , in which the microorganisms stick together in a matrix of polymeric substances that they secrete from their bodies. These biofilms are resilient enough to survive a fair amount of antibacterial punishment, even on man-made surfaces such as stainless steel or polystyrene. At the same time, recent evidence suggests that L. monocytogenes enter a protective state under stress, such as when a different detergent is used against them. In this state it is harder to eradicate them. They are also able to tolerate fridge temperatures remarkably well. In all, they are much hardier survivors than other bacteria such as E. coli or Salmonella and demand greater cleaning and sanitation in food factories to keep them at bay. The testing regime By law, food manufacturers in the UK and many other countries currently have to send food and environmental samples for microbial analysis. If they supply a major supermarket or high street restaurant chain they are probably required to exceed minimum requirements and send more samples to meet more stringent safety policies. These tests will flag up bacterial contamination, but they are of limited value in relation to listeria. Because listeria is able to live almost anywhere, you can expect to find a certain low level of L. monocytogenes . It only becomes a cause for concern when the level increases over a short period of time. Yet these standard microbial tests are a hit and miss method of spotting contaminations. The trouble is that it can often be difficult to see whether there is a problem without looking at the genetics of the bacteria: in “safe” food samples, the listeria will be genetically diverse, whereas in an outbreak they will be predominantly the same subtype. Standard tests only tell you whether you have L. monocytogenes or not – to get the genetic information, you need genome sequencing. Standard lab tests also don’t give you any information about the source of the bacteria. For this reason, investigators have already started using genome sequencing during outbreaks including the ones I mentioned earlier. In a situation such as the pan-European outbreak of 2015-18, without genome sequencing the food suppliers may have had to shut down many more units for intensive cleaning before they could operate again, losing much more money in the process. Unfortunately, genome sequencing tests can cost something like five times the current going rate for standard tests. This effectively prohibits its use in pretesting – all the more so for small suppliers with shallower pockets. Ten years from now it could be a very different situation. We have already seen the way that the price to generate the raw data for a bacterial genome has fallen from US$50,000 to US$1 (£39,735 to £0.79) in the past decade. The technology has already become standard for the likes of researchers, which is usually a sign that it will reach industry a few years later. In the meantime, standards are rising anyway – operators in the supply chain are constantly reviewing their safety practices with a focus on consumer safety. These include increased microbial sampling and more sanitation and disinfection programmes. So while listeria is a tough opponent for the food manufacturing industry, its days as a serious threat could well be numbered. Fairly soon, food manufacturers and their retailers are going to face a choice: pay for genome sequencing technology or save money and risk an outbreak, the result of which is a catastrophic effect on public health and the possible end of your company. In the end, they probably won’t need to think about it for very long. This article is republished from The Conversation under a Creative Commons license. Read the original article . The Conversation Alva Smith does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment. |
Easy Come, Easy Go: How Focus Graphite (CVE:FMS) Shareholders Got Unlucky And Saw 94% Of Their Cash Evaporate
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This week we saw theFocus Graphite Inc.(CVE:FMS) share price climb by 20%. But spare a thought for the long term holders, who have held the stock as it bled value over the last five years. Like a ship taking on water, the share price has sunk 94% in that time. So we don't gain too much confidence from the recent recovery. The fundamental business performance will ultimately determine if the turnaround can be sustained.
We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don't have to lose the lesson.
View our latest analysis for Focus Graphite
With zero revenue generated over twelve months, we don't think that Focus Graphite has proved its business plan yet. We can't help wondering why it's publicly listed so early in its journey. Are venture capitalists not interested? So it seems shareholders are too busy dreaming about the progress to come than dwelling on the current (lack of) revenue. It seems likely some shareholders believe that Focus Graphite 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 usually a significant chance that they will need more money for business development, putting them at the mercy of capital markets. So the share price itself impacts the value of the shares (as it determines the cost of capital). While some such companies do very well over the long term, others become hyped up by promoters before eventually falling back down to earth, and going bankrupt (or being recapitalized). It certainly is a dangerous place to invest, as Focus Graphite investors might realise.
Our data indicates that Focus Graphite had CA$5,130,813 more in total liabilities than it had cash, when it last reported in March 2019. That puts it in the highest risk category, according to our analysis. But since the share price has dived -44% per year, over 5 years, it looks like some investors think it's time to abandon ship, so to speak. You can click on the image below to see (in greater detail) how Focus Graphite's cash levels have changed over time.
In reality it's hard to have much certainty when valuing a business that has neither revenue or profit. Given that situation, would you be concerned if it turned out insiders were relentlessly selling stock? I would feel more nervous about the company if that were so. You canclick here to see if there are insiders selling.
Investors in Focus Graphite had a tough year, with a total loss of 25%, against a market gain of about 1.4%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, longer term shareholders are suffering worse, given the loss of 44% doled out over the last five years. We would want clear information suggesting the company will grow, before taking the view that the share price will stabilize. If you would like to research Focus Graphite in more detail then you might want totake a look at whether insiders have been buying or selling shares in the company.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss thisfreelist of companies that have proven they can grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on 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. |
Ethereum-Based Decentralized Video Streaming Startup Livepeer Raises $8M
Ethereum (ETH)-based decentralizedvideostreamingstartup Livepeer announced that it raised $8 million from institutional investors in its Series A funding round in a Medium postpublishedon June 17.
Per the announcement, the startup will use the newly acquired resources to support the further development of the Livepeer protocol, network, software and ecosystem to further adoption. The round was reportedly led by venture capital firm Northzone, whichwasalso one of the first investors inSpotify.
Other participants in the round purportedly include Digital Currency Group, Libertus, Collaborative Fund, Notation Capital, Compound, North Island, Coinfund, Haivision and StakeZero. Furthermore, according to the post David Mendels, the former CEO of online video platform Brightcove, has also joined the company in an active advisor role.
The company also claims that, since Livepeer has been first launched on Ethereum’s mainnet, thousands of users participated in securing the network and over 100 events have been streamed through it. The startup also notes that it is currently building plugins which allow media servers and transcoding services to run on its network.
As Cointelegraphreportedat the beginning of the current month,United States-basedblockchainidentitystartup BanQu announced that it closed an extension of its Series Afundinground led by multinational drinks and brewing company Anheuser-Busch InBev’sinvestmentarm.
Also, at the end of May, complianttokenizationstartup Standard Tokenization Protocolannouncedthat it secured $7 million infunding.
• US National Association of Realtors Invests in Blockchain-Based Real Estate Firm Propy
• Corona, Budweiser Owner’s Investment Arm Backs Blockchain ID Startup
• Philippine Government Tech Department Signs Deal With Blockchain Firm
• Big Four Auditing Firm PwC Releases Cryptocurrency Auditing Software |
Philadelphia Port Scene Of Massive Drug Bust On Container Ship
The Port of Philadelphia is the scene of a major cocaine bust, the second one involving a container ship operated by Mediterranean Shipping Company. U.S. Customs and Border Protection and Immigration and Customs Enforcement investigators said an inspection of shipping containers aboard the MSC Gayane "resulted in a substantial cocaine seizure in Philadelphia." The ship, which carries 11,600 twenty-foot equivalent (TEU) in containers, remains an active crime scene. The agencies made two arrests in connection with the bust, which occurred at the Packer Marine Terminal. Both of those arrested were members of the ship's crew, according to the U.S. Attorney's Office for eastern Pennsylvania. But the identity of the crew members was not immediately released. A tweet from the said 16.5 tons of cocaine was found inside the shipping containers. That would be worth an estimated $1 billion and make it one of the largest drug busts in U.S. history , according to NBC News. In a statement, the CBP said it has yet to make a final tally of the haul and disputed those figures. *BREAKING NEWS* Members of the ship's crew have been arrested and federally charged, and the investigation is on-going. @ICEgov @CBPMidAtlantic @PhillyPolice @USCG https://t.co/sSkGBZXJGT — U.S. Attorney EDPA (@USAO_EDPA) June 18, 2019 This will be the second bust of an MSC vessel at the Port of Philadelphia. In March, the CBP found just over a half a ton of cocaine located in a container onboard the MSC Desiree. The haul had a street value of $38 million, the CBP said. MSC released a statement that it "has a longstanding history of cooperating with U.S. federal law enforcement agencies to help disrupt illegal narcotics trafficking and works closely with U.S. Customs and Border Protection. "Unfortunately, shipping and logistics companies are from time to time affected by trafficking problems," it added. CBP field seizures of cocaine peaked at 62,415 pounds during the 2017 fiscal year ending September, with the 2018 fiscal year seeing an 18 percent drop. Story continues Seven months into the current fiscal year, cocaine seizures stand at just under 38,200 pounds. The CBP was unable to provide any data on the preferred mode of transportation for cocaine. But container shipping appears to be making new inroads. The CBP said the March seizure on board the Desiree was the largest since 1998. In March 2019, the Port of New York and New Jersey saw its largest seizure of cocaine at the port in 25 years. There, 3,200 pounds worth an estimated $77 million were found inside a shipping container. In February, the CBP intercepted a shipment of 1,157 pounds of cocaine inside a shipping container originating in Colombia that went through the Port of Savannah. Image Sourced From Pixabay See more from Benzinga Low Prices And High Waters Backing Coal Railcars Into Storage Business Groups Try To Pull Trump, Congress Back To Infrastructure Today's Pickup: PEV, Tesla Owners In California Mostly Rich Men © 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Hasselblad’s X1D II mirrorless camera is faster and more affordable
Most of the recent updates from Hasselblad have had to do with the cameraspopping up on dronesorcosting $48,000. But the company is still working on the mirrorless medium-format cameras and accompanying lenses that built its reputation. Today, it announced a handful of updates, including an evolved X1D II 50C camera, a new XCD 3,5-4,5/35-75 Zoom Lens, the Phocus Mobile 2 and details on more to come.
You may rememberHasselblad's X1Dfrom a few years ago. When the Swedish company released the X1D, it was the first-ever medium-format mirrorless camera. With the X1D II, Hasselblad promises improvements like enhanced electronics for a quicker and "more intuitive" medium-format experience. And at $5,750, this second generation is significantly less expensive than the original, which started just under $9,000.
Hasselblad also revealed the XCD 3,5- 4,5/35-75 Zoom Lens, the ninth addition to its X System lenses. The compact midrange zoom works with moderate wide angle to short telephoto focal lengths. It should be ready by October, and it will cost you $5,175. Hasselblad hopes it will appeal to photographers who want to keep their equipment to a minimum while they travel. And for those on the go, Hasselblad's new Phocus Mobile 2 creates a quick, mobile workflow for portable image editing. It works with the X1D II, via USB-C or WiFi, and it's supported on iPad Pro and iPad Air. It also offers full quality image export, tethered shooting and direct camera control.
That's not all Hasselblad has to announce. It's working on a modernized CFV II 50C, which will have a medium-format 50 MP sensor and a tilt screen and will be compatible with most V System cameras made after 1957. The company is also developing a new 907X camera body, which will be its smallest medium-format camera body yet. It will work with X System Lenses, and with the help of adapters, it will be compatible with H System, V System and XPan Lenses, too. It's not clear yet when these last two products will be ready, but in the meantime you'll have the new X1D II, XCD Lens and Phocus Mobile 2 to work with. |
Tasty deals: Apps help find unsold food and reduce waste
BERLIN (AP) — After a long day at work, Annekathrin Fiesinger is too tired to consider making dinner at home. So the 34-year-old uses her smart phone to check nearby restaurants, hotels or bakeries in Berlin for food being sold for a discount at the end of the day. The part-time coffee shop worker, who is also studying for a degree in the science of ecosystems, is part of a growing movement of environmentally-aware people in Germany and beyond who are using apps to reduce food waste and try to cut down on climate-wrecking carbon emissions. While it's unclear how big an impact such efforts have in ultimately reducing emissions, they reflect how environmental concerns are growing and shaping the behavior of consumers and businesses. "For me this is all about the environment," says Fiesinger. "We cannot go on with all this wastefulness." Fiesinger uses "Too Good To Go," Europe's most popular app to find discounted unsold food. It uses her phone's GPS to tell her which registered businesses nearby have extra food for sale, and what they're offering. "It's super easy: just download the app and, on your way home, pick up what you like best," she explained, scrolling through a long list of photos advertising veggie meals, baked goods and unsold lunch specials. The app is part of a growing number of services using technology to help reduce food waste. Activists have built online communities to share food with neighbors before throwing it away. Startups have teamed up with supermarkets to create applications that alert consumers when groceries that are about to expire are marked down. Even the German government has launched a phone app offering recipes by celebrity chefs made specifically for left-over groceries that often get discarded. On average, every German throws away more than 55 kilograms (120 pounds) of food a year, the government says. That's about 11 million tons of food annually, which creates six million tons of carbon dioxide emissions that contribute to global warming. Globally, about one third of all food ends up in the garbage. Story continues Emissions come from burning the wasted food but also from producing the food in the first place. For example, cattle raised for beef and milk are the animal species responsible for the most emissions, representing about 65% of the livestock sector's emissions, according the U.N. Scientists say the only possible way to slow down global warming is by drastically reducing the emissions of greenhouse gases such as carbon dioxide in the coming decades. Doing so means ending the use of fossil fuels and cutting back on other sources of emissions, such as intensive land use for agriculture. The German government has said it wants to reduce food waste by half until 2030 and Chancellor Angela Merkel called on all citizens to support initiatives that help avoid food waste. "I think that every single person can contribute to this big goal," Merkel said during her weekly podcast in February. "Digitization can help with intelligent packaging and (online) platforms via which one can then share food." The "Too Good To Go" app, which was created by a couple of Danish entrepreneurs in 2015, has seen its number of users grow rapidly. More than 5,000 people download the app in Germany every day, a spokeswoman for the company says. It's also available in ten other European countries including Denmark, France, Britain and Poland. "So far, we have rescued 14 million meals in Europe from being thrown away — that equals 35,000 tons of CO2 that have been saved," spokeswoman Franziska Lienert said. Evaluating the actual impact of those saved meals can be tricky, as the consumers would have likely bought food from another retailer instead. But food sharing programs and apps can help better match demand for meals to their supply, increasing the industry's overall efficiency. Ten million people use "Too Good To Go" and some 23,300 food businesses participate, Lienert said. It's the most popular, but other food sharing apps include FoodCloud, Karma or Olio which is available in hundreds of cities in the United States. To make a profit, "Too Good To Go" keeps 1.09 euros ($1.22) per meal sold through the app. The food is usually about 50% less expensive than its original price. Like Fiesinger, most of the app's users are university students and young, tech-savvy professionals. While a growing number of businesses are participating in such app-based schemes, many others still give their unsold food for free to charities that distribute it to the homeless or other people in need. Whereas unsold food in Germany usually ends up in the garbage, France and the Czech Republic have in recent years implemented laws banning supermarkets from throwing away food and instead ordered them to donate it to charities and food banks. In Berlin, Fiesinger checks her phone for food offered in her neighborhood. She decides on a lunch special at Aennchen von Thorgau restaurant on the banks of the Spree river. She clicks on one of four unsold pasta dishes, ordering and paying automatically. "In Berlin, it's really easy to find something — there's something waiting for you on every corner," says Fiesinger on her way to pick up her meal. Restaurant owner Armin Doetsch says he participates in the app's program mainly for environmental reasons. "We often have left-overs from our lunch specials," Doetsch said. "Rather than tossing it, we prefer to give it away, even if it's only for little money." He piles a dish of Spaetzle pasta with mushrooms — marked down to 3.80 euros from 6.50 euros — into a container Fiesinger had brought along and hands it over with a smile. "We also want to avoid extra packaging waste," says Doetsch. "Everybody who brings along their own Tupperware box gets free ice-cream as a reward." ___ Frank Jordans in Berlin and Karel Janicek in Prague contributed to this report. ___ For all of AP's tech coverage, visit: https://apnews.com/apf-technology |
Playing the Fed's Rate-Cut Odds
Wednesday, June 19, 2019With no major economic data being released ahead of the opening bell today, and Q2 earnings season now in the rearview mirror, all eyes turn to the Federal Reserve. This afternoon, Fed Chair Jerome Powell is expected to give public remarks on the state of the U.S. economy, even though expectations are low he will be announcing a 25 basis-point interest rate cut.Overall, Powell has proved to be a cautious Fed Chair in his year-and-a-half tenure, increasing rates routinely early on, in step with a growing U.S. economy. Even after U.S.-China trade tensions kicked off last fall, Powell announced another hike after the Fed’s December meeting, inviting the ire of President Trump and helping send market indexes into a tailspin that came to a merciful end on Christmas Eve’s half-day session.After the Fed’s last meeting six weeks ago, Powell said, “We don’t see a strong case for moving [interest rates] either direction.” This stoked another U.S. market tumble that lasted weeks, until the Fed Chair came back to change his tune early this month, opening the door for consideration of a rate cut. To be clear, when Powell says “rate cut,” he is thinking in terms of quarter-points; Trump, on the other hand, has aggressively advocated for a cut of 100 basis points — even though the case for such a drastic move has been articulated by no one.Analysts expect the verbiage from this afternoon’s statement to change, even as rates likely remain in the 2.25-2.50% range they’ve been in since the December hike. We look for the word “patient” to be removed from today’s statement, which has indicated the Fed has felt free to delay interest rate moves. With the U.S.-China trade tensions continuing — though abating, with news that Trump and Xi will have an “extended meeting” at this month’s G-20 summit — plus war footing returning to the Middle East, immigration concerns and a host of other issues, the new Fed statement may view the economic outlook as on a slight downward trend.Currently, two rate cuts are baked into the cake for market participants: July and September. Assuming these would both be for 0.25%, we’d be back to a 1.75-2.00% Fed funds rate by this fall. Of course, a signed new trade pact with China, a resolve of sorts in the Strait of Hormuz and a cooling of tensions on immigration reform would all be reasons to refrain from cutting rates. Though all these things would improve global economic conditions overall.Mark VickerySenior EditorQuestions or comments about this article and/or its author? Click 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 reportSPDR Dow Jones Industrial Average ETF (DIA): ETF Research ReportsInvesco QQQ (QQQ): ETF Research ReportsSPDR S&P 500 ETF (SPY): 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 |
Loan Growth, Acquisitions Aid BankUnited's (BKU) Revenues
On Jun 18, we issued an updated research report onBankUnited, Inc.BKU. It remains well positioned for revenue growth, supported by continued rise in loans and deposits along with efforts to strengthen fee income sources. Moreover, given a solid capital position, the company is expected to continue enhancing shareholder value through efficient capital deployment activities.Moreover, it has been witnessing upward estimate revisions of late, reflecting that analysts are optimistic about its earnings growth potential. The Zacks Consensus Estimate for the company’s current-year earnings has increased marginally over the past 30 days. Thus, the stock currently carries a Zacks Rank #2 (Buy).Its price performance also seems impressive. Shares of BankUnited have gained 15.2% over the past six months, outperforming 13.8% growth recorded by the industry.
Looking at its fundamentals, the company’s revenues recorded a four-year (2015-2018) CAGR of 11.7%. With steady increase in demand for loans and efforts to improve fee income, its top line is expected to grow further in the quarters ahead.Moreover, given strong capital and balance sheet position, BankUnited remains on track to grow through acquisitions. The company rapidly expanded across the New York metropolitan market and Florida.BankUnited’s loan portfolio is geographically well diversified. It continues to take initiatives to maintain a healthy loan portfolio by reducing the concentration of risky residential loans, which are affected by volatility in the housing sector.Further, in order to ease pressure on the top line, the company has been concentrating on increasing the proportion of non-interest bearing demand deposits. The same witnessed a three-year (2016-2018) CAGR of 10.6%. Management has been strategizing on increasing these low-cost deposits, which will likely provide some support to net interest margin (NIM).However, continued margin pressure (despite higher interest rates) remains a major near-term concern for the company. Also, increasing expenses due to rise in compensation costs are expected to hurt bottom-line growth to some extent.Other Stocks to ConsiderSome other top-ranked stocks from the finance space are Hilltop Holdings Inc. HTH, Cadence Bancorporation CADE and M&T Bank Corporation MTB. Each of these stocks currently carries a Zacks Rank #2. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Over the past 60 days, Hilltop Holdings witnessed an upward earnings estimate revision of 11.5% for the current year. Its share price has increased 19.6% in the past six months.Cadence Bancorporation’s Zacks Consensus Estimate for earnings in 2019 has been revised 8.8% upward over the past 60 days. Its shares have gained nearly 14.2% in the past six months.Over the past 60 days, M&T Bank witnessed a marginal upward earnings estimate revision for the current year. Its share price has rallied 18.3% in the past six months.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 reportBankUnited, Inc. (BKU) : Free Stock Analysis ReportM&T Bank Corporation (MTB) : Free Stock Analysis ReportHilltop Holdings Inc. (HTH) : Free Stock Analysis ReportCadence Bancorp (CADE) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
How Does Gamma Communications plc's (LON:GAMA) Earnings Growth Stack Up Against Industry Performance?
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In this commentary, I will examine Gamma Communications plc's (LON:GAMA) latest earnings update (31 December 2018) and compare these figures against its performance over the past couple of years, as well as how the rest of the telecom industry performed. As an investor, I find it beneficial to assess GAMA’s trend over the short-to-medium term in order to gauge whether or not the company is able to meet its goals, and ultimately sustainably grow over time.
Check out our latest analysis for Gamma Communications
GAMA's trailing twelve-month earnings (from 31 December 2018) of UK£28m has jumped 25% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 22%, indicating the rate at which GAMA is growing has accelerated. How has it been able to do this? Well, let’s take a look at if it is merely because of an industry uplift, or if Gamma Communications has seen some company-specific growth.
In terms of returns from investment, Gamma Communications has invested its equity funds well leading to a 23% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 15% exceeds the GB Telecom industry of 6.5%, indicating Gamma Communications has used its assets more efficiently. However, its return on capital (ROC), which also accounts for Gamma Communications’s debt level, has declined over the past 3 years from 25% to 23%.
Though Gamma Communications's past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research Gamma Communications to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for GAMA’s future growth? Take a look at ourfree research report of analyst consensusfor GAMA’s outlook.
2. Financial Health: Are GAMA’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 December 2018. 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. |
Will High Operating Expenses Mar FedEx's (FDX) Q4 Earnings?
FedEx CorporationFDX is set to release fourth-quarter and fiscal 2019 results after the closing bell on Jun 25.
In third-quarter fiscal 2019, the company witnessed a negative earnings surprise of 2.3%. Earnings (excluding 22 cents from non-recurring items) came in at $3.03 per share, which lagged the Zacks Consensus Estimate of $3.10.
In fact, this Memphis, TN-based company has reported bottom-line miss in three successive quarters. Factors like high operating expenses and the intensifying trade spat between the United States and China have been hurting the company’s quarterly performance.
We fear that FedEx may falter in the soon-to-be-reported quarter as well. This is because the challenges confronting the company might persist in fourth-quarter fiscal 2019. Additionally, FedEx’s disappointing price performance over the past three months (down 5%) reflects its struggles.
Moreover, the fact that the Zacks Consensus Estimate for fourth-quarter fiscal 2019 earnings has been revised 9.3% downward over the past 90 days. This further highlights the negative sentiment surrounding the stock ahead of the earnings release.
Our quantitative model too does not conclusively show that FedEx is likely to beat on earnings in fourth-quarter fiscal 2019. Here's why:
FedEx does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — for increasing the odds of an earnings surprise. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: FedEx has an Earnings ESP of -2.62%. This is because the Most Accurate Estimate is pegged at $4.73 per share, lower than the Zacks Consensus Estimate of $4.86.
Zacks Rank: FedEx’s Zacks Rank #4 is a further dampener and makes an earnings beat even less likely.
You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Factors Likely at Play
We expect high costs to hurt FedEx's bottom line in the fourth quarter of fiscal 2019. With the package delivery company investing significantly to upgrade facilities at its key divisions, capital expenses are on an upswing. Additionally, integration expenses pertaining to TNT Express are pushing up costs.
We also remain concerned about the escalating trade war tensions between China and the United States as FedEx has Chinese exposure. In January 2018, FedEx had opened a hub in Shanghai to strengthen its presence in China.
The company’s major revenue generating segment, FedEx Express, is expected to dish out a below-par performance in the fourth quarter as was the case in the last reported quarter. Also, segmental revenues are anticipated to be hurt by soft international revenues due to weak macroeconomic conditions and sluggish global trade. Notably, the Zacks Consensus Estimate for operating income at the FedEx Express division stands at $848 million, lower than $990 million reported a year ago.
FedEx’s high-debt levels further add to its woes. These apart, we believe that Amazon.com’s AMZN expansion into the logistics network offering discounted and faster deliveries is a potential threat to FedEx. We expect a commentary on the issue on the fourth-quarter conference call.
FedEx is also expected to shed light on its row with Chinese telecoms equipment maker Huawei, which took place this May. Huawei had accused FedEx of diverting two parcels destined for addresses in Huawei to the United States and attempting to reroute two others. Currently, the Chinese company is reviewing its relationship with FedEx after the incident. Even though FedEx has apologised for the mishap, we believe the final decision on the matter is pending.
However, solid growth of e-commerce is anticipated to boost FedEx’s top line in the quarter to be reported.
Stocks to Consider
Investors interested in the broader Transportation sector may consider the following stocks with the right combination of elements to deliver an earnings beat in the upcoming releases:
Delta Air Lines DAL has an Earnings ESP of +0.63% and a Zacks Rank #3.
Canadian Pacific Railway Limited CP has an Earnings ESP of +3.30% and a Zacks Rank of 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 reportDelta Air Lines, Inc. (DAL) : Free Stock Analysis ReportCanadian Pacific Railway Limited (CP) : Free Stock Analysis ReportAmazon.com, Inc. (AMZN) : Free Stock Analysis ReportFedEx Corporation (FDX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
First Financial Bankshares, Inc. (NASDAQ:FFIN) Has Got What It Takes To Be An Attractive Dividend Stock
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Today we'll take a closer look at First Financial Bankshares, Inc. (NASDAQ:FFIN) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. 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.
A 1.6% yield is nothing to get excited about, but investors probably think the long payment history suggests First Financial Bankshares has some staying power. Some simple analysis can reduce the risk of holding First Financial Bankshares for its dividend, and we'll focus on the most important aspects below.
Explore this interactive chart for our latest analysis on First Financial Bankshares!
Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Looking at the data, we can see that 36% of First Financial Bankshares's profits were paid out as dividends in the last 12 months. A medium payout ratio strikes a good balance between paying dividends, and keeping enough back to invest in the business. Besides, if reinvestment opportunities dry up, the company has room to increase the dividend.
Remember, you can always get a snapshot of First Financial Bankshares'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 First Financial Bankshares'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 US$0.23 in 2009, compared to US$0.48 last year. Dividends per share have grown at approximately 7.8% per year over this time.
Dividends have grown at a reasonable rate over this period, and without any major cuts in the payment over time, we think this is an attractive combination.
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. It's good to see First Financial Bankshares has been growing its earnings per share at 13% a year over the past 5 years. Earnings per share have been growing at a good rate, and the company is paying less than half its earnings as dividends. We generally think this is an attractive combination, as it permits further reinvestment in the business.
To summarise, shareholders should always check that First Financial Bankshares's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. Firstly, we like that First Financial Bankshares has a low and conservative payout ratio. We like that it has been delivering solid improvement in its earnings per share, and relatively consistent dividend payments. Overall, we think there are a lot of positives to First Financial Bankshares from a dividend perspective.
Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 6 analysts we track are forecasting for First Financial Banksharesfor freewith publicanalyst estimates for the company.
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. |
Barclays names Gruber as chemicals head for Europe and Middle East: source
By Pamela Barbaglia
LONDON (Reuters) - Barclays has named Gabriel Gruber as the new head of its chemicals banking team for Europe and the Middle East as it seeks to win more business after advising the likes of Evonik on their recent disposals, a source familiar with the matter said.
Gruber has 15 years of experience covering clients in the chemicals sector and was promoted to managing director last year. He takes over from Jean de Miramon who left the bank last week, the source said.
Barclays has been in the driving seat on several high profile chemicals transactions, advising Air Liquide on its purchase of Airgas in 2015 and also representing Evonik and Total on the recent disposals of their respective chemicals units.
The British bank has also strengthened its U.S. chemicals team with the appointment of Adam Abramson as head of chemicals banking for the Americas, the source said.
(Reporting by Pamela Barbaglia; Editing by Susan Fenton) |
Police checking whether Indiana dairy farm abuse was coerced
FAIR OAKS, Ind. (AP) — A prosecutor says investigators are looking into whether an animal rights group worker coerced employees at a large northwestern Indiana dairy farm into the abuse of young calves that was captured on undercover video. Newton County Prosecutor Jeff Drinski says a witness has corroborated allegations from an abuse suspect that the Animal Recovery Mission employee encouraged the abuse at Fair Oaks Farms. Drinski says detectives will try to interview the group's employee. Animal Recovery Mission founder Richard Couto called the allegation "ridiculous and absurd." He says none of the group's video shows any encouragement of abuse. The farm that's a popular agritourism destination has faced public backlash over videos released by the group. It's also been the flagship farm for Fairlife milk, which has been dropped by several grocery chains. |
Oregon Truckers Plot Strategy As Historic Cap-And-Trade Bill Inches Closer To Passage
The trucking industry is mounting a last-ditch effort to derail Oregon's historic cap and trade legislation, one day after the Oregon House passedHouse Bill 2020, a long-awaited effort to meet the state's carbon emission reduction goals.
The Senate is expected to vote on the legislation as early as tomorrow, June 19.
"Not only do we need three "no" votes from Democrats, we need to hold Republicans to their [no] votes," said theOregon Trucking Association's (OTA)president Jana Jarvis, who spoke on a conference call to members earlier this afternoon regarding a final lobbying blitz against the legislation.
Senate Democrats can afford to lose only two votes and still pass the bill with a simple majority. One Democratic senator,Betsy Johnson of Scappoose, is a vehement opponent, so at least two more Democrats must reverse their position in order for the bill to fail.
If HB 2020 becomes law, the legislation would set of goal of reducing the state's greenhouse gas emissions by at least 45 percent below 1990 emissions levels by 2035 and to at least 80 percent below 1990 emissions levels by 2050.
The trucking industry has focused criticism on the cost impacts of the legislation. A state analysis found the bill would raise gasoline prices 22 cents a gallon by 2021 and by $3 a gallon by 2050.
"It's a been a concern because there is no plan to help our industry to transition to cleaner fuels," said Jarvis. Trucking, she noted, hauls 88 percent of the freight in Oregon. "The legislation won't do anything to reduce carbon but will do a lot to increase costs," Jarvis said.
The OTA call took place in the Salem, Oregon office ofState Rep. Shelly Boshart Davis(R-Albany), the owner of Boshart Trucking. Boshart said her calculations showed the legislation would add $4,200 annually to the cost of running just one of her company's big rigs.
"Put dollar amounts in emails to your senators," Jarvis advised members. "This is very discouraging news," she added. "Call your senators. It's in their hands now."
The trucking association is also asking for language that would delay implementation of the law, or provide the transportation industry free pollution "allowances." Other industries, including utilities, have been given free allowances for several years as they transition to cleaner fuel sources.
Yesterday's 36-24 House vote took place after a marathon six-hour effort by Republicans to stall the bill.
On the floor, State Rep. Karin Power (D-Milwaukie), the co-chair of the Joint Committee on Carbon Reduction and one of the bill's biggest supporters, called the threat posed by climate change "the greatest crisis in our lifetime."
Image Sourced From Pixabay
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© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Trump Campaign Just Raised $24.8 Million, Less Than 24 Hours After Orlando Rally
President Donald Trump raised $24.8 million in the less-than 24 hours after kicking off his re-election campaign.
The staggering sum was announced in a tweet on Wednesday morning by Republican Party Chairwoman Ronna McDaniel. It dwarfs what the top Democratic contenders in the 2020 White House primary raised over the course of the first three months of this year.
It’s a demonstration of the power incumbency, while underscoring Democratic worries that they are not doing enough to prepare for the matchup with Trump.
Trump already reported $48.7 million cash on hand at the end of March, spread across three committees tied to his campaign. The Republican National Committee had an additional $34.7 million during the same period.
The Democratic National Committee had just $7.5 million with $6.2 million in debt.
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—Not every state is restrictingabortion rights—some are expanding them
—Richard Nixon‘s “Western White House” is back on the market—at a discount
—Trump administration to use former Japanese internment camp to housemigrant children
Get up to speed on your morning commute withFortune’sCEO Dailynewsletter. |
How Many Hanmi Financial Corporation (NASDAQ:HAFC) Shares Have Insiders Sold, In The Last Year?
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sellHanmi Financial Corporation(NASDAQ:HAFC), you may well want to know whether insiders have been buying or selling.
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
View our latest analysis for Hanmi Financial
In the last twelve months, the biggest single sale by an insider was when the , Joseph Rho, sold US$1.4m worth of shares at a price of US$22.41 per share. So we know that an insider sold shares at around the present share price of US$21.60. While we don't usually like to see insider selling, it's more concerning if the sales take price at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Joseph Rho was the only individual insider to sell over the last year.
Over the last year, we can see that insiders have bought 15000 shares worth US$375k. On the other hand they divested 150k shares, for US$3.4m. Joseph Rho divested 150k shares over the last 12 months at an average price of US$22.48. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Hanmi Financial better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Hanmi Financial insiders own 1.7% of the company, worth about US$12m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Hanmi Financial makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd think twice before buying! Therefore, you should should definitely take a look at thisFREEreport showing analyst forecasts for Hanmi Financial.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Merck's Keytruda Gets 2nd Label Expansion Approval in June
Merck & Co., Inc.MRK announced that the FDA has granted accelerated approval for the label expansion of its PD-L1 inhibitor, Keytruda, for metastatic small cell lung cancer (“SCLC”) in third- or later-line setting. This approval marks the first label expansion for Keytruda in the SCLC indication.
The approval was based on pooled data from SCLC cohorts of two clinical studies – KEYNOTE-158 (cohort G) and KEYNOTE-028 (cohort C1) – which evaluated the drug in SCLC patients whose disease has progressed after platinum-based chemotherapy and at least one other prior line of therapy. Data demonstrated that treatment with Keytruda achieved an objective response rate of 19% and complete response rate of 2% in the patient population. The duration of response was six months or longer in 94% of the patients, 12 months or longer in 63% of patients and 18 months or more in 56% of patients.
However, continued approval of the drug in this indication will depend on verification and description of clinical benefit in the confirmatory studies.
Merck’s shares have risen 10.5% this year so far compared with the industry’s increase of 2.4%.
Keytruda generated sales of $2.27 billion in the first quarter of 2019, up around 5.6% sequentially and 55% year over year. Sales were driven by the launch of indications globally. Keytruda sales are gaining particularly from strong momentum in first-line lung cancer indication both as monotherapy and with the rollout of the chemo combo in both non-squamous and squamous non-small cell lung cancer (“NSCLC”).
Per the press release, SCLC occurs in 10-15% of lung cancer patients. A label expansion in this indication is likely to strengthen Keytruda’s position further in the lung cancer market.
Keytruda is continuously growing and expanding into new indications, treatment setting or geographies and markets globally. Earlier this month, the drug received continued approval as the first-line treatment for recurrent or metastatic head and neck squamous cell cancer Moreover, the drug received approval for multiple label expansions earlier in 2019 including expansion of NSCLC patient population in the United States, Europe and China. A decision on the label expansion of the drug to include first-line treatment of advanced or metastatic renal cell carcinoma (“RCC”) is expected later this week.
However, in 2019, Keytruda faced failure in two clinical studies evaluating it as a second- or third-line treatment of metastatic triple-negative breast cancer or second-line treatment of advanced hepatocellular carcinoma, the most common type of liver cancer.
The Keytruda development program is also progressing well and the drug is being studied for more than 30 types of cancer in more than 900 studies, including more than 600 combination studies. Merck is collaborating with several companies including Amgen AMGN, Incyte INCY, Glaxo GSK and Pfizer separately for the evaluation of Keytruda in combination with other regimens.
Several other regulatory decisions for new indications in the United States as well as in Europe are pending in 2019, which, if approved, can further boost sales.
Apart from Keytruda, Merck is also focusing on acquisitions to strengthen its oncology pipeline. The company has offered to acquire three biotech companies so far this year spending more than $2 billion. The company has completed the acquisition of Immune Design, which was announced in February, to boost its capabilities in infectious diseases and cancer. In May, it entered into an agreement to buy Peloton Therapeutics, which will add a late-stage novel late-stage RCC candidate to Merck’s pipeline. Earlier this month, the company announced a definitive deal to acquire Tilos Therapeutics, which has pre-clinical oncology candidates in its pipeline.
Merck & Co., Inc. Price
Merck & Co., Inc. price | Merck & Co., Inc. Quote
Zacks Rank
Merck currently carries a Zacks Rank #2 (Buy). 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
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 reportGlaxoSmithKline plc (GSK) : Free Stock Analysis ReportMerck & Co., Inc. (MRK) : Free Stock Analysis ReportAmgen Inc. (AMGN) : Free Stock Analysis ReportIncyte Corporation (INCY) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Loonie rallies as hotter inflation clips rate cut bets
By Fergal Smith
TORONTO (Reuters) - The Canadian dollar strengthened to a five-day high against its U.S. counterpart on Wednesday, as investors reduced bets on a Bank of Canada interest rate cut this year after domestic data showing greater-than-expected inflation.
Canada's annual inflation rate rose to 2.4% in May, its highest in seven months, while two of the Bank of Canada's three core measures of inflation also climbed, Statistics Canada data indicated. Analysts had expected the annual rate to edge up to 2.1% from 2.0% in April.
"If you're looking to see if the Bank of Canada is easing anytime soon, forget it," said Derek Holt, vice president of capital markets economics at Scotiabank. "Inflation is on target, not signaling any big urgency to ease policy."
Chances of a Bank of Canada interest rate cut this year fell to less than 40% from about 50% before the data, the overnight index swaps market indicated. <BOCWATCH>
At 9:12 a.m. EDT (1312 GMT), the Canadian dollar <CAD=D4> traded 0.2% higher at 1.3355 to the greenback, or 74.88 U.S. cents. The currency, which was boosted on Tuesday by the revival of trade talks between the United States and China, touched its strongest since last Friday at 1.3337.
Gains for the loonie on Wednesday came as investors awaited an interest rate decision from the U.S. Federal Reserve. The Fed is expected to leave borrowing costs unchanged but possibly lay the groundwork for a rate cut later this year.
The price of oil, one of Canada's major exports, fell as data suggesting a smaller-than-expected fall in U.S. crude inventories countered support from hopes for a U.S.-China trade deal. U.S. crude oil futures <CLc1> were down 0.5% at $53.64 a barrel.
Canadian government bond prices were lower across the yield curve, with the two-year <CA2YT=RR> price down 12 Canadian cents to yield 1.468% and the benchmark 10-year <CA10YT=RR> falling 60 Canadian cents to yield 1.486%.
The gap between Canada's 2-year yield and its U.S. equivalent narrowed by 2.5 basis points to a spread of 43.4 basis points in favor of the U.S. bond, its smallest gap since March 2018.
Separate Canadian data showed that home prices climbed for the first time in nine months in May as the housing market benefited from lower borrowing costs and from an economy that was adding jobs.
(Additional reporting by Tyler Choi; Editing by Jeffrey Benkoe) |
Should You Include Tesla Stock in Your Portfolio?
This week started well for Tesla’s (TSLA) stock. It ended the first trading day at $225.03 after rising by 4.7%. During after hours it was even able to climb higher to $225.50. In June the stock rose by more than 20% in light of signals from the company’s CEO, Elon Musk, which suggested that production and sales were on the rise.
One should bear in mind, though, that the stock was facing tremendous hardships in recent months. Since the beginning of the year, it lost around 30% of its value leading to a massive short sell of more than 40 million shares.
Recent weeks’ price figures may well indicate the beginning of a recovery process after a long period of grim performances. Indeed, some leading analysts believe the bad times are over with positive prospects on the horizon.
Among them isBen Kallofrom Robert W. Baird. He thinks that Tesla is on track to meet volume guidance which will make its shares move higher. He has recently stepped up his price target for the company’s stock to $340 (51.29% upside).
On June 10,Craig Irwinfrom Roth Capital has followed suit and upgraded TSLA from neutral to buy with a price target of $238 indicating a 5.9% upside (the stock’s current price is $225.03 with average upside of 22.25%). He believes that strong demand from China will significantly assist in reducing battery cost that has weighed heavily on the company’s profitability.
Despite the recent recovery displayed by Tesla’s stock, there are some bad omens which paint the company’s financial future in uncertain colors. Tesla have managed to come up with cheaper models compared to its $90,000- luxury Tesla Roadster sportscar. These models, such as the Model 3 sedan ($37,000) and the about to be launched Model Y crossover SUV ($47,000), appeal to much wider audiences.
However, cheaper cars tend to have lower margin. That becomes significant when you constantly have to invest abundant resources in order to ensure you stay at the forefront of technology. Tesla will have to find a way to lower its manufacturing costs; as it did with its batteries, selling them at 20% lower cost than its competitors.
In addition, demand for Tesla’s cars may shrink in the foreseeable future. The federal tax credit decrease for purchasing a Tesla car that came into force on January 1 has already hurt the company as was demonstrated in its Q1 earnings report. On the first of July the tax credit will decrease once more from $3,750 to just $1,875. This decrease will further reduce demand for the more expensive, and thus more profitable, models.
Lastly, Tesla CEO, Elon Musk, has promised more than once that by 2020 Tesla would be able to launch a fleet of robotic taxis and autonomous cars. In reality, however, the company’s products are still quite far from technological maturity, especially when it comes to the radar and camera systems meant to be installed in every car.
To put things in perspective, the technical aspect has always been the Achilles heel of the autonomous vehicle industry. Tesla’s competitors (i.e. Alphabet's (GOOGL) Waymo) are also quite far from building a system that can replace human driving, not to mention mass production of such a system.
In light of its recent recovery and analysts’ positive reviews, at present Tesla’s stock can definitely be considered a good investment channel. However, in the long run, investors should remain vigilant and closely monitor new developments that may cause it to sink into the red zone again.
Indeed, as we can see here, TSLA stock still shows a Hold analyst consensus rating:
See the latest ratings from top-performing analysts here |
Transition Metals: A $3,000,000 Exploration Program to Be Initiated by Rio Tinto at Janice Lake in the Emerging Wollaston Copper District
Sudbury, Ontario--(Newsfile Corp. - June 19, 2019) - Transition Metals Corp (TSXV: XTM) ("Transition", "the Company") is pleased to announce that operator Rio Tinto Exploration Canada Inc. ("RTEC") will commence its committed, $3,000,000 exploration program at the Janice Lake sedimentary hosted copper project. The initial program will consist of an airborne geophysical survey followed by drilling. Transition has optioned the property to Forum Energy Metals (see news release of February 6, 2018) which subsequently optioned part of its interest to RTEC (see news release of May 9, 2019). Upon the option terms of the Forum agreement being met, Transition will hold a 2% Net Smelter Return royalty (NSR) on the property and be entitled to downstream milestone cash payments. Forum has also issued the Company 8,000,000 shares, which currently represents approximately 7.5% of Forum shares outstanding.
Commenting on the planned program, Company CEO and President Scott McLean, P.Geo stated:"Transition has long recognized the potential of the emerging Wollaston Basion Copper District which is exemplified by results from the Janice Lake project and the significant investment RTEC will be making in the project. RTEC has nearly doubled the size of the property since executing the agreement with Forum, which has greatly expanded the extent of our royalty coverage."
Planned RTEC Program
The initial program commencing in July will consist of a low level, helicopter-borne, high-resolution magnetometer survey flown at 100 metre line spacings over the entire 5 km x 52 km property. This program will be followed up by the mobilization of two drills to the property for a planned 20-30 hole drill program totaling up to 7,000 metres. Initial drill targets continue to be refined with several high priority areas identified including:
• Jansem Showing Area- Forum drill hole FEM-01 intersected 18.5 metres (true thickness of 18 metres) grading 0.94% copper and 6.7 g/t silver including 5.2 metres grading 2.22% copper and 16.5 g/t silver, including 5.7 metres of 2.18% copper within a 50.5 metre interval grading 0.45% copper1.
• Janice Showing- Noranda drill hole PL-93-11 intersected 33 metres grading 0.77% copper2.
• Kaz Showing- Noranda drill hole PL-93-05 intersected 15.1 metres grading 0.32% copper2.
• Genie Showing- Forum reports 0.76% Cu across 10 metres of channel sampling3.
Note 1: Forum Energy Metals News Release dated May 9, 2019 and June 18, 2019Note 2: Harper, J. Saskatchewan Assessment Report No. 74A15-SW-0033R; December 1993Note 3: Weighted average calculated by Forum from assessment reports filed with the Government of Saskatchewan
About the Agreements
The Company optioned the property to Forum Energy Metals Corp in 2018 which may earn a 100% interest by providing Transition with staged cash payments over 4 years totaling $250,000 ($50,000 received), issuing Transition 8,000,000 Forum common shares (6,000,000 received) and completing $250,000 of work expenditures on the property (completed) subject to a 2.0% Net Smelter Return royalty and paying certain future milestone cash payments to Transition ($1,000,000 upon completion of a Feasibility Study and $5,000,000 within 12 months following Commercial Production).
Forum optioned a portion of its interest in the project to RTEC. Under the terms of this agreement, RTEC will commit to spending $3 Million within 18 months on the Property with the option to vest a 51% interest by spending $10 Million over 4 years. Upon vesting its interest, RTEC can, at its option, earn a further 29% interest (for a total 80% interest) by spending a further $20 million over 3 years.
Qualified Person
The technical elements of this press release have been approved by Mr. Thomas Hart, P.Geo. (PGO), a Qualified Person under National Instrument 43-101.
About Transition Metals Corp
Transition Metals Corp (TSXV: XTM) is a Canadian-based, multi-commodity project generator that specializes in converting new exploration ideas into Canadian discoveries. The award-winning team of geoscientists has extensive exploration experience in established, emerging and historic mining camps and actively develops and tests new ideas for discovering mineralization in places that others have not looked, which often allows the company to acquire properties inexpensively. The team is rigorous in its fieldwork and combines traditional techniques with newer ones to help unearth compelling prospects and drill targets. Transition uses the project generator business model to acquire and advance multiple exploration projects simultaneously, thereby maximizing shareholder exposure to discovery and capital gain. Joint venture partners earn an interest in the projects by funding a portion of higher-risk drilling and exploration, allowing Transition to conserve capital and minimize shareholder's equity dilution. The Company has an expanding portfolio that currently includes more than 25 gold, copper, nickel and platinum projects across Canada.
Cautionary Note on Forward-Looking Information
Except for statements of historical fact contained herein, the information in this news release constitutes "forward-looking information" within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may", "will" and include without limitation, statements regarding estimated capital and operating costs, expected production timeline, benefits of updated development plans, foreign exchange assumptions and regulatory approvals. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, competition, risks inherent in the mining industry, and regulatory risks. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
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.
Further information is available atwww.transitionmetalscorp.comor by contacting:
Scott McLeanPresident and CEOTransition Metals Corp.Tel: (705) 669-1777
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45736 |
Ironwood, Allergan Investors React Positively After Duo's Constipation Drug Found Effective
Shares of the small-cap, actively tradedIronwood Pharmaceuticals, Inc.(NASDAQ:IRWD) were seeing positive momentum Wednesday on top of the 8.08% gain the stock recorded Tuesday.
What Happened
IronwoodandAllergan plc(NYSE:AGN) announced positive topline results from a Phase 3b study evaluating Linzess 290 mcg for multiple abdominal symptoms in adult patients with irritable bowel syndrome with constipation, or IBS-C.
The companies said the late-stage study met the primary multicomponent endpoint of the drug, when administered orally once-daily, demonstrating an improvement in overall abdominal symptoms of bloating, pain and discomfort in adult patients with IBS-C compared to placebo.
Linzess also met the secondary endpoints of showing a clinically meaningful response, as defined by the abdominal symptom score responder, of a patient seeing an improvement of at least two points from the baseline in a weekly abdominal score for the last six of the 12 weeks of treatment.
The late-stage study also confirmed the safety ofLinzess.
Why It's Important
Linzess, an FDA-approved drug for IBS-C or chronic idiopathic constipation, or IDC, is marketed in the U.S. by Ironwood and Allergan.
About 95% of adults with IBS-C experience bothersome abdominal bloating, pain and/or discomfort, the companies said, citing research estimates. An estimated 13 million adults in the U.S. suffer from IBS-C.
"I believe the data from this LINZESS Phase 3b trial will be very important in helping patients and physicians have a more comprehensive dialogue about the multiple symptoms associated with IBS-C," Lin Chang, professor of medicine at UCLA, said in a statement.
Ironwood shares were up 5.48% at $12.13 at the time of publication Wednesday, while Allergan shares were up 3.49% at $124.87.
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© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Amazon’s Fire HD 8 Kids Edition tablets are on sale for $40 off
TL;DR:Amazon'sFire HD 8 Kids Edition tabletsare kid-friendly and on sale for $89.99, saving you $40.
Kids are practically coming out of the womb tech-obsessed and usually even know how to work devices better than adults. But that can come with the dangers of unrestricted access to the internet. To find a balance between parental controls and a device your kid will actually want to use, turn to amade-for-kids tablet, specifically theFire HD 8 Kids Edition tablet.
Normally the Fire HD 8 kids would run you $129.99, but you can grab iton sale right now for $89.99, a savings of $40.
This tablet is not a toy — it’s a fully functioning device that features impressive parental controls and is protected by a kid-proof case. Even though it does have that sturdy case, the tablet is backed up by a two-year warranty, where you can replace a broken Fire HD 8 with no questions asked.Read more...
More aboutParenting,Tablet,Fire Tablet,Mashable Shopping, andShopping Solo |
Efficiency And Social Responsibility Go Together For Shipper Of Choice Kraft Heinz
The Kraft Heinz Company(NYSE:KHC) is a Shipper of Choice not only because the company strives to create an efficient supply chain through investments in technology, but also because the food producer is dedicated to ensuring its supply chainpromotessustainability and social responsibility.
"We place a high value on an ethical and transparent supply chain. Accordingly, we demand that all business partners demonstrate a clear commitment to protecting the rights of workers worldwide," Kraft Heinz's employeecode of conductstates. "We do not tolerate the use of forced labor–including human trafficking and slavery."
Kraft Heinz earned eighth place in a survey conducted by FreightWaves and its partner Convoy of the top 25 manufacturers, distributors and retailers that do the best job in removing supply chain inefficiencies. These companies, voted by carrier members of the Truckload Carriers Association and members of the Blockchain in Transport Alliance, take additional steps to ensure good relationships with their partners through efforts such as providing accessible facilities and fighting driver detention.
"It takes an understanding in knowing what to go after to create supply chain efficiencies. Supply chains are complex but Kraft Heinz had a strategy to eliminate waste and identify areas where process can improve," said Mary Long, director of the Supply Chain Forum with the Haslam School of Business at the University of Tennessee – Knoxville. Long was previously vice president of logistics and network planning at Domino's, and she has also had extensive supply chain experience through her work at Campbell's Soup, General Mills, Pillsbury and Quaker Oats/Gatorade.
Kraft Heinz's supply chain spans the sourcing, warehousing and transporting of raw materials and ingredients to the packaging for the manufacture of the company's food and beverage products around the world. Supply chain partners must commit to protecting the rights of workers, while suppliers must adhere to Kraft Heinz's supplier guiding principles.
But besides practicing good ethics, Kraft Heinz is regarded by industry observers as making astute investments in technology as a way to improve supply chain efficiencies. The company has undertaken efforts such as working with price elasticity for its products, coordinating efforts between finance, sales and marketing to determine how to create favorable gross margins from sales promotions, and seeking to lower costs through procurement, according to an analysis inForbes. Kraft Heinz has also streamlined its production process by looking at physical plant synergies and using computer modeling to find ways to eliminate waste throughout the supply chain, according to an analysis from the Association of Supply Chain Management.
"Kraft Heinz has made investments in process improvements and network design, which is all about efficient flow and designing around the customer," Long said.
Image sourced from Google
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© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Is There An Opportunity With Hertz Global Holdings, Inc.'s (NYSE:HTZ) 22% Undervaluation?
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Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Hertz Global Holdings, Inc. (NYSE:HTZ) as an investment opportunity by taking the expected future cash flows and discounting them to their present value. I will use the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model.
See our latest analysis for Hertz Global Holdings
We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value:
[{"": "Levered FCF ($, Millions)", "2019": "$-98.00", "2020": "$86.00", "2021": "$138.05", "2022": "$197.67", "2023": "$259.04", "2024": "$317.47", "2025": "$370.19", "2026": "$416.25", "2027": "$455.92", "2028": "$490.06"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x1", "2020": "Analyst x1", "2021": "Est @ 60.52%", "2022": "Est @ 43.19%", "2023": "Est @ 31.05%", "2024": "Est @ 22.55%", "2025": "Est @ 16.61%", "2026": "Est @ 12.44%", "2027": "Est @ 9.53%", "2028": "Est @ 7.49%"}, {"": "Present Value ($, Millions) Discounted @ 14.65%", "2019": "$-85.48", "2020": "$65.43", "2021": "$91.60", "2022": "$114.40", "2023": "$130.77", "2024": "$139.78", "2025": "$142.17", "2026": "$139.43", "2027": "$133.20", "2028": "$124.89"}]
Present Value of 10-year Cash Flow (PVCF)= $996.20m
"Est" = FCF growth rate estimated by Simply Wall St
We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (2.7%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 14.7%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$490m × (1 + 2.7%) ÷ (14.7% – 2.7%) = US$4.2b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$4.2b ÷ ( 1 + 14.7%)10= $1.08b
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $2.07b. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of $24.63. Relative to the current share price of $19.2, the company appears a touch undervalued at a 22% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.
We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Hertz Global Holdings as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 14.7%, which is based on a levered beta of 2. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Although the valuation of a company is important, it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Hertz Global Holdings, I've put together three further aspects you should look at:
1. Financial Health: Does HTZ have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Future Earnings: How does HTZ's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with ourfree analyst growth expectation chart.
3. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of HTZ? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. Simply Wall St updates its DCF calculation for every US stock every day, so if you want to find the intrinsic value of any other stock justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Cat-fox officially recognised as a new species
The 'cat fox' has been officially recognised as a new species. (AFP) Meet one of the world’s ‘newest’ species - the cat-fox. There are just 16 cat-foxes roaming around the northern parts of the Mediterranean island of Corsica, and efforts are being made to make them a protected species. They resemble domestic cats and measure 90cm from head to tail, have wide ears, short whiskers and highly developed canine teeth. Other distinguishing features include the stripes on the front legs, very dark hind legs and a russet stomach. A picture taken on June 12, 2019 in Asco on the French Mediterranean island of Corsica shows a "ghjattu-volpe" (fox-cat). (AFP) The dense, silky coat is a natural repellent for fleas, ticks and lice. The tail usually has two to four rings and a black tip. Chief environmental technician of the National Hunting and Wildlife Office Pierre Bendetti said: ‘We believe that it’s a wild natural species which was known but not scientifically identified because it’s an extremely inconspicuous animal with nocturnal habits.’ Mr Benedetti added: ‘It’s a wonderful discovery. It’s their size and their tail that earned them the name cat-fox across the island.’ Employees of the French Forest and Hunting Office (Office Nationale des Forets et de la Chasse) Pierre Benedetti (L) and Charles Antoine Cecchini measure a "ghjattu-volpe" (fox-cat) (AFP) The cat-foxes are known on the island as Ghjattu volpe and are found in the Asco forest. Mr Benedetti’s colleague Charles-Antone Cecchini said that they have a remote habitat where there is ‘water and plant cover offering protection against its main predator, the golden eagle’. Read more from Yahoo News UK: Torrential rain and thunderstorms lash UK Fifth suspected murder in six days as London violence continues Jeremy Corbyn to back second referendum They have captured and re-released 12 of the 16 cat-foxes over the last three years to examine them and they hope they will become a protected species within the next few years. Cecchini said: “The cat-fox is part of our shepherd mythology. “From generation to generation, they told stories of how the forest cats would attack the udders of their ewes and goats.” After years of playing cat and mouse, one of the animals ‘was caught unexpectedly in 2008 in a chicken coop at Olcani in Cap Corse,’ says Benedetti, who has been researching the species for more than 10 years. Story continues Its diet and reproductive patterns are yet to be studied but Benedetti has a theory that the cat could have been brought to Corsica by farmers in 6,500 BC. Watch the latest videos from Yahoo UK |
US STOCKS-Wall Street pauses with Fed meeting in focus
(For a live blog on the U.S. stock market, click or type LIVE/ in a news window.)
* All eyes on Fed statement, Powell's speech
* Financials rise most among 11 major S&P sectors
* Adobe gains on quarterly results beat
* Dow gains 0.22%, S&P up 0.07%, Nasdaq off 0.08% (Updates to open)
By Shreyashi Sanyal
June 19 (Reuters) - Wall Street's main indexes were flat on Wednesday, as investors refrained from taking positions ahead of the Federal Reserve's policy statement that is expected to open the door to future interest rate cuts.
Bets of a rate cut have helped markets climb in June, with the S&P 500 index gaining 6% so far this month and about 1% away from its all-time high hit in early May.
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 demands for a rate cut and softer-than-expected economic data on monetary policy thinking.
Fed Chair Jerome Powell will hold a press conference at 2:30 p.m. ET (1830 GMT).
The U.S. central bank will likely leave rates unchanged but is likely to indicate whether it plans to cut rates later this year. The financial sector gained 0.63%, with bank stocks rising 0.76%.
"Expectations remain elevated over a rate cut in July and investors will be closely scrutinizing the statement for confirmation of a cut next month," said Lukman Otunuga, a research analyst at ForexTime Limited in London.
"Should the Fed sound less dovish than expected or completely omit any hints about taking action next month, it could send equity markets sliding."
Global financial markets have been fired up by European Central Bank President Mario Draghi's Tuesday volte-face on policy easing and as investors bet on a worldwide wave of central bank stimulus.
At 9:56 a.m. ET, the Dow Jones Industrial Average was up 58.02 points, or 0.22%, at 26,523.56 and the S&P 500 was up 2.17 points, or 0.07%, at 2,919.92.
The Nasdaq Composite was down 6.74 points, or 0.08%, at 7,947.14.
The healthcare sector rose 0.4%, helped by gains in UnitedHealth Group Inc, Pfizer Inc and Allergan Plc.
Shares of Allergan gained 3.7% after the drugmaker said its constipation drug, jointly developed with Ironwood Pharmaceuticals Inc, improved symptoms of bloating, pain and discomfort in patients suffering from irritable bowel syndrome with constipation.
Adobe Inc jumped 3.7% after the Photoshop software provider beat analysts' estimates for quarterly profit and revenue.
TripAdvisor Inc gained 1.2% after SunTrust Robinson upgraded the company's stock to "buy."
Declining issues outnumbered advancers for a 1.00-to-1 ratio on the NYSE and for a 1.01-to-1 ratio on the Nasdaq.
The S&P index recorded 12 new 52-week highs and one new low, while the Nasdaq recorded 24 new highs and 23 new lows. (Reporting by Shreyashi Sanyal and Aparajita Saxena in Bengaluru; Editing by Sriraj Kalluvila) |
UPDATE 2-Embattled Brazil minister assails authenticity of leaked texts in corruption probe
(Adds details of comments, background on investigations)
By Ricardo Brito
BRASILIA, June 19 (Reuters) - Brazilian Justice Minister Sergio Moro said on Wednesday that a criminal organization was responsible for alleged leaks of his private messages as a federal judge, which raised questions about his ethics while overseeing a major corruption probe.
Moro is facing calls for his resignation after text messages published by news website The Intercept allegedly showed he pushed prosecutors to turn public opinion against former president Luiz Inacio Lula da Silva, whom he convicted of bribery last year.
In Senate committee testimony on Wednesday, Moro questioned the authenticity of the messages attributed to him and said some may have been doctored by those seeking to overturn convictions in the record-setting "Car Wash" corruption investigation.
Moro said he had nothing to hide and blamed organized crime for what he called a hacking attack.
"They are doing this to undermine the anti-corruption drive, which was not an achievement by me or prosecutors, but by Brazilian society," he said. "I have nothing to hide."
Moro said he always acted within the law during "Car Wash," which he oversaw until last year. In November he became justice minister under right-wing President Jair Bolsonaro, who won the presidency after Lula was barred from running because of his conviction.
Moro has said he will not resign, and Bolsonaro has said there is "no chance, zero" of Moro being forced out.
The texts, allegedly exchanged over the Telegram messaging app, appear to show Moro suggesting to prosecutors in May 2017 that they mount a public campaign against Lula, the defendant he was judging.
Lula's lawyers demanded a retrial, saying the messages raised doubts about Moro's impartiality in the trial that led to a 12-year prison sentence for Lula.
Lula's was the highest-profile conviction in what U.S. prosecutors have called the world's largest graft investigation, which has brought down scores of businessmen and politicians in Brazil and across Latin America since 2014.
Investigators uncovered billions of dollars in bribes paid in schemes mostly involving sweetheart contracts with state-run firms such as oil company Petroleo Brasileiro SA. (Reporting by Ricardo Brito; Writing by Jamie McGeever and Anthony Boadle; Editing by Chizu Nomiyama, Bill Trott and Jeffrey Benkoe) |
British Gas owner to cut 700 management and back-office jobs
A British Gas thermostat. Owner Centrica said it was planning to cut 700 office jobs. Pic: PA Centrica ( CNA.L ), the owner of British Gas, said on Wednesday that it was planning to cut around 700 management and back-office jobs in response to the growing challenges that it faces. They will come as part of previously announced reductions, the company said. In February 2018, the company, which also supplies energy in North America and Ireland, announced that it would cut around 4,000 jobs worldwide, with the majority of the losses falling within its UK energy supply business. That announcement came right after it revealed a slump in earnings, with profits in the group falling 17% to £1.25bn in 2017. More than 2,200 employees lost their jobs in 2018, and it detailed a further 500 job cuts in April 2019. A spokesperson for Centrica said that it will discuss the proposed job cuts with employees over the next 45 days. The company had already said in February 2019 that it expected to complete the efficiencies by the end of the year. GMB Union condemned Wednesdays announcement, saying that British Gas cannot just cut its way out of a crisis by slashing jobs. Centricas still falling share price tells you everything you need to know about the state of the company and how it has been run over the past few years, it said in a statement. Shares in the company, which have declined 33% since the beginning of the year, fell 0.83% on Wednesday. In 2018, its most recent financial year, Centrica reported a 12% rise in operating profits, to £1.39bn. But it described its performance as mixed and warned that its 2019 profits would be hit by the new energy price cap. Energy regulator Ofgem on 1 January introduced an energy cap for consumers in England, Scotland, and Wales, which limits the cost of each unit of energy that they pay. While some 11 million people are expected to save around £76 a year, Centrica in December mounted a legal challenge against the cap, arguing that it had not been calculated fairly. This difficult decision was made because we need to respond to the growing challenges we face, Centrica said on Wednesday. The energy market is going through continued rapid change, competition is fierce, our energy customers are leaving us and were operating under a price cap. |
Has National Oilwell Varco, Inc. (NYSE:NOV) Got Enough Cash?
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Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as National Oilwell Varco, Inc. (NYSE:NOV), with a market cap of US$8.0b, often get neglected by retail investors. However, generally ignored mid-caps have historically delivered better risk adjusted returns than both of those groups. This article will examine NOV’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourselfinto NOV here.
View our latest analysis for National Oilwell Varco
NOV's debt levels surged from US$2.7b to US$3.3b over the last 12 months – this includes long-term debt. With this increase in debt, the current cash and short-term investment levels stands at US$1.3b to keep the business going. Additionally, NOV has produced cash from operations of US$612m during the same period of time, leading to an operating cash to total debt ratio of 18%, indicating that NOV’s debt is not covered by operating cash.
With current liabilities at US$2.1b, it seems that the business has been able to meet these obligations given the level of current assets of US$6.9b, with a current ratio of 3.3x. The current ratio is the number you get when you divide current assets by current liabilities. However, a ratio greater than 3x may be considered high by some.
With a debt-to-equity ratio of 20%, NOV's debt level may be seen as prudent. This range is considered safe as NOV is not taking on too much debt obligation, which may be constraining for future growth. Investors' risk associated with debt is very low with NOV, and the company has plenty of headroom and ability to raise debt should it need to in the future.
NOV’s cash flow coverage indicates it could improve its operating efficiency in order to meet demand for debt repayments should unforeseen events arise. However, the company exhibits proper management of current assets and upcoming liabilities. Keep in mind I haven't considered other factors such as how NOV has been performing in the past. I suggest you continue to research National Oilwell Varco to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for NOV’s future growth? Take a look at ourfree research report of analyst consensusfor NOV’s outlook.
2. Valuation: What is NOV 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 NOV 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. |
Biotech Stock Roundup: Amgen Gets FDA Nod for Kanjinti, Regeneron Presents Data
It was a busy week for the biotech sector. The FDA approved Amgen’s AMGN biosimilar for a leading breast cancer drug, Herceptin. Meanwhile, Alexion’s ALXN Ultomiris was approved in Japan. Regeneron(REGN) presented positive data on an investigational bispecific monoclonal antibody for lymphoma.
Recap of the Week’s Top Stories:
Amgen Gets Approval for Biosimilar Kanjinti: Amgen and its biosimilar collaboration partner, Allergan AGN announced that the FDA has approved Kanjinti (trastuzumab-anns), their biosimilar of Roche’s blockbuster breast cancer drug, Herceptin. The biosimilar was approved for all approved indications of the reference drug, Herceptin — HER2 overexpressing adjuvant and metastatic breast cancer, and HER2 overexpressing metastatic gastric cancer or gastroesophageal junction adenocarcinoma.
Amgen has a collaboration agreement with Allergan for the worldwide development and commercialization of four oncology antibody biosimilars. Kanjinti is the second drug to receive FDA approval under this agreement.
In addition, Amgen announced five-year overall survival (OS) analysis from the single-arm, phase II BLAST study on leukemia drug, BLINCYTO. The study evaluated Blincyto in patients with minimal residual disease (MRD)-positive acute lymphoblastic leukemia (ALL). Results from the study showed a median OS of 36.5 months for Blincyto-treated patients with a median follow-up of 59.8 months. More than half of the patients who achieved a complete MRD response following the first cycle of Blincyto treatment were alive at five years.
Amgen currently carries a Zacks Rank #3 (Hold). You can seethe complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Regeneron Presents Positive Data on Lymphoma Candidate: Regeneron announced positive early-stage data for pipeline candidate, REGN1979. The data will be presented at the 24th Congress of the European Hematology Association (EHA). REGN1979, an investigational bispecific monoclonal antibody, is being evaluated in patients with relapsed or refractory (R/R) B-cell non-Hodgkin lymphoma (B-NHL). The data also includes patients with R/R diffuse large B-cell lymphoma (DLBCL), who had progressed after CAR-T therapy. The primary objective was to assess the safety, tolerability and dose-limiting toxicities of the candidate. High response rates observed with REGN1979 in both relapsed or refractory diffuse large B-cell lymphoma and follicular lymphoma were encouraging. Moreover, two patients, who failed CAR-T therapy and received REGN1979 80 mg, achieved complete response.
The R/R follicular lymphoma (FL) grades 1 to 3a treatment arm showed an overall response rate of 93% (13 of 14 patients) in patients, who received doses of 5 mg or more, with a complete response rate of 71% (10 of 14 patients). In DLBCL patients treated with REGN1979 80 mg to 160 mg, an overall response rate of 57% was observed. In R/R DLBCL patients, whose disease progressed after CD-19 directed CAR-T therapy, two out of four achieved a complete response. The company will initiate a phase II program later in the month for a potential registration, and proactively evaluate active REGN1979 doses in indolent and aggressive non-Hodgkin lymphoma.
Alexion’s Ultomiris Gets Approval in Japan: Alexion announced that Japan’s Ministry of Health, Labour and Welfare (MHLW) has approved Ultomiris (ravulizumab), the first and only long-acting C5 complement inhibitor administered every eight weeks, for the treatment of adult patients with paroxysmal nocturnal hemoglobinuria (PNH). The drug is already approved in the United States. The approval was based on comprehensive results from two phase III studies, which included 441 patients who had either never been treated with a complement inhibitor before, or who had been stable on Alexion’s lead drug Soliris. Results showed that the efficacy of Ultomiris administered every eight weeks was non-inferior to the efficacy of SOLIRIS administered every two weeks on all 11 endpoints.
Earlier, Alexion announced positive, long-term data from the extension of the phase III study on Ultomiris and Soliris in complement inhibitor-naïve, adult patients with PNH. The data demonstrated that Ultomiris administered every eight weeks provided consistent efficacy and safety through 52 weeks, with no cases of breakthrough hemolysis associated with incomplete C5 complement inhibition. The data was presented at the Annual Congress of the European Hematology Association. Ultomirus was studied in the largest-ever phase III program in PNH.
Savara Crashes on Late-Stage Study Failure: Savara SVRA crashed after it announced that its lead pipeline candidate, Molgradex, failed to meet the primary endpoint in the pivotal phase III study — IMPALA — evaluating it in autoimmune alveolar pulmonary proteinosis (aPAP), a rare lung disorder. The IMPALA study evaluated Molgradex, an inhaled formulation of recombinant human granulocyte-macrophage colony-stimulating factor (GM-CSF), in patients with aPAP compared to placebo for improvement in alveolar-arterial oxygen gradient (A-aDO2) as its primary endpoint. The study evaluated two dose administrations — once daily continuous administration of and once daily in seven-day intermittent cycles — of 300 µg Molgradex over 24 weeks. Data from the study demonstrated average improvement of 12.1 mmHg in patients who were administered Molgradex once daily continuously compared with an improvement of 8.8 mmHg for placebo. However, the treatment difference of 4.6 mmHg failed to meet the primary endpoint.
Molgradex also failed to achieve improvement of statistical significance in two key secondary endpoints – the six-minute walk distance (6MWD) and requirement for whole lung lavage (“WLL”).
Abeona Gets FDA Fast Track Designation for Gene Therapy: Abeona Therapeutics ABEO announced that the FDA has granted Fast Track designation to its gene therapy ABO-202 program. ABO-202 is administered as a one-time adeno-associated virus 9 (AAV9) gene therapy that delivers a functional copy of the PPT1 gene to cells of the central nervous system and peripheral organs. It is being evaluated for CLN1 disease, which is also known as Infantile Neuronal Ceroid Lipofuscinosis or infantile Batten disease. The company is planning to initiate a phase I/II study evaluating ABO-202 in patients with CLN1 disease and will provide guidance on the timing of the study later in the year.
Performance
Medical - Biomedical and Genetics Industry 5YR % Return
Medical - Biomedical and Genetics Industry 5YR % Return
The NASDAQ Biotechnology index gained 4.67% in the last five trading sessions. Among the major biotech giants, Alexion gained 4.46% in the period. Over the past six months, shares of Celgene have surged 45.81% whereas Biogen stock has lost 20.95%. (See the last biotech stock roundup here:Biotech Stock Roundup: Celgene Submits MS Drug to FDA, INSY & CBAY Crash)
What's Next in Biotech?
Stay tuned for more pipeline and regulatory updates.
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 reportAllergan plc (AGN) : Free Stock Analysis ReportRegeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis ReportAmgen Inc. (AMGN) : Free Stock Analysis ReportAlexion Pharmaceuticals, Inc. (ALXN) : Free Stock Analysis ReportAbeona Therapeutics Inc. (ABEO) : Free Stock Analysis ReportMast Therapeutics, Inc. (SVRA) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
What Kind Of Investor Owns Most Of First Citizens BancShares, Inc. (NASDAQ:FCNC.A)?
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A look at the shareholders of First Citizens BancShares, Inc. (NASDAQ:FCNC.A) 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. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.
First Citizens BancShares has a market capitalization of US$4.9b, 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. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about FCNC.A.
See our latest analysis for First Citizens BancShares
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
First Citizens BancShares already has institutions on the share registry. Indeed, they own 51% of the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see First Citizens BancShares's historic earnings and revenue, below, but keep in mind there's always more to the story.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. First Citizens BancShares is not owned by hedge funds. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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 a reasonable proportion of First Citizens BancShares, Inc.. It has a market capitalization of just US$4.9b, and insiders have US$1.7b worth of shares in their own names. That's quite significant. Most would be pleased to see the board is investing alongside them. You may wish toaccess this free chart showing recent trading by insiders.
With a 14% ownership, the general public have some degree of sway over FCNC.A. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
It's always worth thinking about the different groups who own shares in a company. But to understand First Citizens BancShares better, we need to consider many other factors.
I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph.
Of coursethis may not be the best stock to buy. Therefore, you may wish to see ourfreecollection of interesting prospects boasting favorable financials.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
CVM: No Free Samples on Facility Tour
ByJohn Vandermosten, CFANYSE:CVMIn late May 2019, Zacks was treated to an onsite tour of CEL-SCI’s (CVM) 73,000 square foot manufacturing facility in Elkridge, Maryland. As we drove to the industrial park southwest of Baltimore, we came upon CEL-SCI’s facility, nestled among warehouses and light manufacturing enterprises. With multiple delivery bays and administrative offices up front, we entered to meet with Chief Scientific Officer Dr. Eyal Talor who introduced us to the staff and provided background on the facility in preparation for our walk through.View Exhibit I- Facility Exterior1We began our visit in a conference room and were shown floor plans highlighting both open and built-out space along with the various cleanroom classifications within the clean manufacturing envelope. Dr. Talor provided a description of the various areas in the building and reviewed high level details of the manufacturing process with us. After the 45 minute introduction and review, we prepared to enter the manufacturing area. Our initial entry was into the first clean-unclassified area, a corridor that surrounds the manufacturing classified areas. We were required to step on a sticky mat and don elastic shoe covers in a positive pressure airlock. Thus began our walk around the outer perimeter of the manufacturing area. While we did not enter into the restricted cleaner areas, EU regulations require that personnel step up in stages of cleanliness as they move in (example:ISO-8 to ISO-7 to ISO-6 and ISO-5) and then step-down in cleanliness as they move out (ISO, 5, 6, 7 and 8) from areas with different requirements. Entry into these cleaner spaces requires the addition of gloves, gowns, hoods, facemasks, coveralls and other protective items. Entry into classed areas requires one to be “Gown-Certified”.The genesis of the project to build a dedicated manufacturing facility for Multikine began during CEL-SCI’s Phase II trials, when management realized that they needed to have strict control over the manufacturing process. The need was brought into relief during the end of Phase II meeting with the FDA when the agency emphasized the benefits of a dedicated facility for a biological product. Not only would a facility under the control of CEL-SCI enable the company to maintain its trade secrets, it would allow the company to have control of the process and employ the strict requirements for biologics that were not widely available at the time.Ground was first broken in 2007 and the build out was completed in 2008. Following the build out, CEL-SCI took possession of the facility and began the validation of both the facility and the manufacturing processes.The European Medicines Agency (EMA) requires that processes and facilities that manufacture product for use in human clinical trials be inspected. To address this requirement, CEL-SCI prepared for a visit from a qualified person (QP). The QP performed an onsite inspection in 2010 and subsequently every two year thereafter to ensure the facility was in compliance and to approve the lots to be used in the Phase III trial.Prior to the availability of manufacturing at CEL-SCI’s own facility, Multikine was produced by CEL-SCI staff at Chesapeake Bio Lab (CBL) and later at Cambrex Bioscience while fill and finish was performed at CBL, in Baltimore. With the completion of the manufacturing facility, all work can now be performed in one location under one roof, and the option exists to double the capacity of the facility into the undeveloped space inside the same building.View Exhibit II- Interior of the Facility (RO/DI Water)2The facility has at four different cleanroom classifications corresponding to ISO Class 5, 6, 7 and 8 which is roughly equivalent to EU Grades A, B, C and D. Below we provide an exhibit comparing the particulate size allowed for each classification.View Exhibit III- ISO Maximum Concentration LimitsWe were impressed with the facility, detailed protocols, security requirements and the cleanroom procedures. The strict rules limit the likelihood of cross contamination and allow only authorized access by qualified personnel. While we were not permitted to enter beyond the clean unclassified area into the classified spaces where the production takes place, strategically placed windows allowed us to see into these areas and the machinery used in the manufacturing process.View Exhibit IV- Interior View of Facility (Manufacturing Staging Area)3The entirety of the second floor of the facility is devoted to climate control, air filtration, air conditioning and other utilities. The system enables the facility to maintain the temperature in some areas of the facility as low as 4° Celsius and filter extremely small particulate matter from the air.View Exhibit V- Facility HVAC and Ventilation System MachineryThe maintenance of cold temperatures in the process limits deterioration of the biologic produced, which occurs when it is exposed to higher temperatures. This process maintains the highest level possible of biologic activity in the manufactured treatment. It allows for the least volume, but same amount of active biologic, to be used per treatment, as it has maintained its initial level of biological activity. Cold production provides for greater potential production capacity as product deterioration during manufacture is limited and minimizes the amount of biologic that needs to be injected.We provide a rudimentary outline of the manufacturing process for Multikine below:‣ Source leukocytes (an FDA approved product for the further manufacture of biologics) obtained only from US-based and FDA certified sources, is the source of peripheral blood mononuclear cells (PBMCs)◦ PBMCs used in process must conform to higher standard than that for blood transfusion‣ PBMCs are evaluated and tested against specifications in the facility and only then are released for use in a proprietary tissue culture‣ The tissue culture is harvested and then undergo various purification steps◦ Virus removal4◦ Testing for other contaminants‣ Multiple additional purification steps‣ Proprietary formulation‣ Aseptic fill and finishManagement estimates that current capacity is approximately 10,000 treatments per year; however, only half the available space is currently built out. A further build out could at least double the capacity and create redundancies that can eliminate bottlenecks if part of the manufacturing process is down for maintenance or repair.The manufacturing area is isolated from the rest of the building by creating a divide in the slab foundation. This is important as it limits vibrations that can affect the precise measurements that take place during manufacture. The pillars that support the building have materials that isolate vibrations as well. The manufacturing envelope is thus vibration isolated from the HVAC and other equipment protecting the ability to make precise measurements and maintaining the calibration of sensitive machinery. Auxiliary power is also available from a generator which can maintain operations if the power goes out.View Exhibit VI- Satellite View of CEL-SCI Manufacturing Facility5We gained an additional measure of respect for the work that CEL-SCI has done after visiting their manufacturing facility. Based on our observations, management has been very attentive to detail regarding the design of the facility and ensuring that its capabilities are able to be optimized in a variety of circumstances. Following a successful Phase III trial result, approval by the FDA and the hiring of additional staff, we see no obstacles in the way of a quick ramp up of production and commercialization. As a companion to this discussion of the manufacturing facility, see ourinitiation, which provides an in-depth review of CEL-SCI, Multikine and the indication the company is pursuing.SUBSCRIBE TO ZACKS SMALL CAP RESEARCHto receive our articles and reports emailed directly to you each morning. Please visit ourwebsitefor additional information on Zacks SCR.DISCLOSURE: Zacks SCR has received compensation from the issuer directly or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks provides and Zacks receives quarterly payments totaling a maximum fee of $30,000 annually for these services. Full DisclaimerHERE._________________________1. Source: Google maps2. Source: CEL-SCI3. Source: CEL-SCI4. This is the second viral removal process as source leukocytes are tested and must be negative for a FDA mandated panel of known viruses, before the source leukocytes can be used to extract PBMCs which are then used in the manufacture process.5. Source: Google Maps |
Dow Outperforming in June: 5 of the Best Stocks in the ETF
The Dow Jones is on track to record its best June in 80 years, having gained nearly 7% so far this month. The impressive rally came on the back of hopes of monetary easing policies at home and abroad that re-instilled confidence in riskier assts.In its FOMC meeting set to conclude later in the day, the Fed is expected to lay the foundation of interest rate cut this year given the effects of a trade war on the economy. Lower interest rates will keep borrowing cost down, thereby resulting in higher consumer spending and rise in economic activities. Additionally, recovery in U.S. housing market, U.S.-Mexico deal and wave of mergers and acquisitions added to the strength.Further, possible resumption of trade talks between the United States and China later this month have driven sentiments lately (read: Best ETF Ideas for the Second Half of 2019).Given this,SPDR Dow Jones Industrial Average ETF DIAtracking the Dow Jones has gained nearly 7% so far this month. Let’s take a closer look at the fundamentals of DIA and its performance.DIA in FocusWith AUM of $20.8 billion, DIA holds 30 stocks in its basket with each security holding no more than 9.2% share. The fund is widely spread across sectors with industrials, information technology and financials being the top three. It charges 17 basis points in fees per year from investors and trades in heavy volume of around 4.1 million shares a day on average. The fund has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.Though most of the stocks in the fund’s portfolio pushed the ETF up, we have highlighted the ones that have led from the front. Here are the five best-performing stocks in the ETF with their respective positions in the fund’s basket:Top Performing Stocks of DIAApple Inc. AAPL:The stock has jumped 13.3% so far this month and holds the fifth position in DIA, accounting for 5% share. It carries a Zacks Rank #3 (Hold) and has a VGM Score of B. The stock has seen no earnings estimate revision for the current fiscal year (ending September 2019) over the past month. Its earnings are expected to decline 3.6%. The stock falls under a top-ranked Zacks industry (top 21%) (read: Tech Stocks Log Seven-Year Best Spell: ETF Winners).The Boeing Company BA:The stock has gained about 9.4% so far this month. It has seen negative earnings estimate revision of six cents in a month for this year. Its earnings are expected to decline 10.2%. The stock belongs to a top-ranked Zacks industry (top 27%) and takes the top spot in DIA portfolio with 9.2% exposure. Boeing currently has a Zacks Rank #3 and VGM Score of C.Home Depot Inc. HD:This stock holds the third spot in the fund’s basket with 5.4% allocation and has gained 9.3% so far this month. The stock has seen positive earnings estimate revision of 4 cents for the fiscal year (ending Jan 2020) over the past month and has an estimated year-over-year earnings growth of 2.12%. HD belongs to a top-ranked Zacks industry (top 27%). It has a Zacks Rank #3 and a VGM Score of A (read: U.S. Homebuilder Sentiment Data Soft in June: ETFs in Focus).Microsoft Corporation MSFT:This stock takes the thirteenth spot and accounts for 3.4% of the assets in the fund’s basket. It has gained 9.3% and witnessed positive earnings estimate revision of a penny for the current fiscal year (ending Jun 2020) in a month. Its earnings are expected to increase 11.24% year over year. Microsoft has a Zacks Rank #2 (Buy) and a VGM Score of C. It belongs to a bottom-ranked Zacks industry (bottom 35%). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.NIKE Inc. NKE:The stock has risen 9.2% so far this month and has 2.1% exposure in the fund’s basket. It has seen negative earnings estimate revision of a penny for the fiscal year (ending May 2020) in a month and has an expected earnings growth of 18.72%. The company has a Zacks Rank #4 (Sell) and a VGM Score of C. It belongs to a top-ranked Zacks industry (top 35%).Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportThe Boeing Company (BA) : Free Stock Analysis ReportThe Home Depot, Inc. (HD) : Free Stock Analysis ReportApple Inc. (AAPL) : Free Stock Analysis ReportMicrosoft Corporation (MSFT) : Free Stock Analysis ReportSPDR Dow Jones Industrial Average ETF (DIA): ETF Research ReportsNIKE, Inc. (NKE) : Free Stock Analysis ReportTo 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 |
What Type Of Shareholder Owns Jernigan Capital, Inc.'s (NYSE:JCAP)?
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The big shareholder groups in Jernigan Capital, Inc. (NYSE:JCAP) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see lower insider ownership in companies that were previously publicly owned.
Jernigan Capital is not a large company by global standards. It has a market capitalization of US$465m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about JCAP.
Check out our latest analysis for Jernigan Capital
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors own 72% of Jernigan Capital. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Jernigan Capital, (below). Of course, keep in mind that there are other factors to consider, too.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Jernigan Capital 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.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
We can see that insiders own shares in Jernigan Capital, Inc.. As individuals, the insiders collectively own US$21m worth of the US$465m company. This shows at least some alignment. You canclick here to see if those insiders have been buying or selling.
With a 24% ownership, the general public have some degree of sway over JCAP. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph.
But ultimatelyit is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look atthis free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
What Kind Of Shareholders Own NRC Group Holdings Corp. (NYSEMKT:NRCG)?
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If you want to know who really controls NRC Group Holdings Corp. (NYSEMKT:NRCG), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that used to be publicly owned tend to have lower insider ownership.
NRC Group Holdings is a smaller company with a market capitalization of US$336m, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about NRCG.
View our latest analysis for NRC Group Holdings
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors own 13% of NRC Group Holdings. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see NRC Group Holdings's historic earnings and revenue, below, but keep in mind there's always more to the story.
Our data indicates that hedge funds own 5.3% of NRC Group Holdings. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
I can report that insiders do own shares in NRC Group Holdings Corp.. It has a market capitalization of just US$336m, and insiders have US$13m worth of shares, in their own names. This shows at least some alignment. You canclick here to see if those insiders have been buying or selling.
With a 12% ownership, the general public have some degree of sway over NRCG. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
With a stake of 27%, private equity firms could influence the NRCG board. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.
Our data indicates that Private Companies hold 39%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
It's always worth thinking about the different groups who own shares in a company. But to understand NRC Group Holdings better, we need to consider many other factors.
I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow, for free.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss thisfreereport on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
MSEX or GWRS: Which Water Utility is a Better Pick Now?
The U.S. water infrastructure is aging and massive funding is needed to upgrade the quality of the U.S. water infrastructure. Per an American Water Works Association ("AWWA") report, the cost of restoring aging underground water pipelines in the United States will be at least $1 trillion in the next 25 years. The AWWA report indicates more than 200,000 water line breaks per year in the United States with more than 7 billion gallons of water leaking out of aging pipes every year.Amid such a backdrop, in this article, we run a comparative analysis of two water utilities — Middlesex Water Company MSEX and Global Water Resources, Inc. GWRS — to ascertain which one performed better and is a suitable investment option right now.All the regulated water utilities are investing to strengthen operations and recoup the same through rate hikes. Consolidation is the need of the hour in the fragmented U.S. water utility space. U.S. water utility operation is highly fragmented and there are a large number of small operators serving only a few hundred customers. It becomes very difficult for small operators or municipalities to make large investments to upgrade and expand their water and wastewater infrastructure.One of the primary reasons for weakening water infrastructure is the gradual decline in the Federal government funding for water infrastructure projects. Per the U.S. Water Alliance, the federal government funded 63% of spending in water infrastructure four decades ago, which has come down to 9% now.However, large water companies are continuously making arrangement for funds to carry out these major overhauls. Consolidation in this highly fragmented water industry would therefore drive the necessary infrastructure overhauls that have become imperative for the industry at large.Let’s ascertain, which water utility is a better pick nowEarnings & Surprise TrendGlobal Water Resources’ first-quarter 2019 adjusted earnings beat the Zacks Consensus Estimate by 200%. The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average being 39.58%.Middlesex Water Company’s first-quarter 2019 operating earnings surpassed the Zacks Consensus Estimate by 25.81%. The company’s average positive surprise in the trailing four trailing quarters is 19.52%.Price MovementShares of Middlesex Water Company and Global Water Resources have gained 45.6% and 7.4%, respectively, compared with the industry’s 35.9% rally in the past 24 months. The price movement of Middlesex Water Company is better than that of Global Water Resources.
Price Performance
Return on Equity (ROE)ROE is a measure of a company's efficiency in utilizing its shareholders' funds. ROE for Global Water Resources and Middlesex Water Company stands at 13.74% and 14.14%, respectively. Notably, the industry's ROE currently stands at 10.25%.Debt/CapitalMiddlesex Water Company and Global Water Resources’ debt/capital ratio stands at 38.17% and 80.90%, respectively, compared with its industry’s average of 39.90% and the Zacks S&P 500 composite’s 41.72%.Estimates MovementIn the past 60 days, the Zacks Consensus Estimate for Global Water Resources’ 2019 earnings has moved up 15.4% to 15 cents. The Zacks Consensus Estimate for Middlesex Water Company’s 2019 earnings has moved up 5.9% in the said period to $2.17.Zacks RankCurrently, Middlesex Water sports a Zacks Rank #1 (Strong Buy) and Global Water Resources GWRS carries a Zack #2 (Buy).You can seethe complete list of today’s Zacks #1 Rank stocks here.The VerdictMiddlesex Water and Global Water Resources are operators in the U.S. water industry, and are investing on an ongoing basis to strength their infrastructure, with an objective to provide better services to customers.Global Water Resources is ahead of Middlesex Water in some of the parameters mentioned above. However, our verdict goes to Middlesex Water, given its better rank and ROE compared with Global Water Resources.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 reportGlobal Water Resources, Inc. (GWRS) : Free Stock Analysis ReportMiddlesex Water Company (MSEX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
China’s Job Market Faces Pressure Amid Trade Deal Impasse with U.S.
This article was originally published onETFTrends.com.
Persisting trade tensions with the U.S. are starting to affect China's job market, according to China’s top economic planning body. As a result of the trade war impasse, companies could be scaling back on hiring new college graduates.
“Due to (the) impact from the continued increase of China-U.S. economic trade frictions and other uncertainties, recruitment demand for university graduates is tightening in internet, finance and other industries,”according toa statement to CNBC from a spokesperson for the National Development and Reform Commission (NDRC).
“Some companies have postponed their campus recruiting (efforts), among which some companies may have reduced or suspended recruitment,”saidthe Chinese-language statement, according to CNBC’s translation.
Bearish exchange-traded funds (ETFs) like theDaily FTSE China Bear 3X Shares (YANG) could see strength if a languishing job market has broader effects on the country's economy. Meanwhile, May saw volatility rain down on U.S. equities as U.S. President Donald Trump threatened to impose increased tariffs on Chinese goods on Friday with the hope that it would force China's hand in relenting to a trade deal.
Of course, YANG traders are rejoicing the latest events on the U.S.-China trade deal impasse. The fund seeks daily investment results equal to 300 percent of the inverse (or opposite) of the daily performance of the FTSE China 50 Index. The index consists of the 50 largest and most liquid public Chinese companies currently trading on the Hong Kong Stock Exchange ("SEHK").
Further market in China could occur as the job market faces further pressures.
“That’s why we are asking local governments to work out and to find out the detailed information at factories, so the way to cope with such a situation is to reduce production, but not lay off staff,”saidLiang Ming, director of the Institute of International Trade under the Ministry of Commerce.. “There may be slighter pay or less workload, but we need ensure that no workers are laid off.”
Whether a trade deal will happen by year's end or not will certainly put China-focused ETFs in the spotlight. Any sliver of positive news could send the bulls back into the forefront.
As such, other leveraged ETFs to play include theDirexion Daily FTSE China Bull 3X ETF (YINN) ,Direxion Dly CSI 300 China A Share Br 1X ETF (CHAD) ,Direxion Daily CSI 300 CHN A Share Bl 2X ETF (CHAU) , andDirexion Daily CSI CHN Internet Bull 2X Shares (CWEB) .
For more market trends, visitETF Trends.
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Why Dow Jones Industrial Average 30,000 may come very soon
The Dow 30,000 happening sometime within the next 12 months may not be as insane as it initially sounds. Even though you can’’t blame one for choking on their fifth Red Bull at the sound of Dow 30,000 looming large. U.S. trade tensions with China (and Europe, too) continue to run hot. President Donald Trump continues to trash Federal Reserve Chair Jerome Powell seemingly daily on Twitter . And the entire scope of that rhetoric is making it quite hard for Corporate America to invest in growth initiatives. Nevertheless, here we are — the Dow Jones Industrial Average ( ^DJI ) is within spitting distance of its fall 2018 record highs. At 26,501 on Wednesday, the blue-chip index is only 13.2% away from a large round number the bulls would love to see (they love round numbers). There is at least a 25% probability of Dow 30,000 occurring by the first quarter of 2020, Skybridge Co-Chief Investment Officer Troy Gayeski said on Yahoo Finance’s The First Trade . That call is in large part due to the low interest rate backdrop and a healthy Corporate America pushing investors more into stocks for fear of missing out on gains. Investors certainly have the cash to pile into stocks. Fund managers’ are now aggressively overweight cash , according to a new survey from Bank of America Merrill Lynch. To be fair, Gayeski then sees the chance of a U.S. recession by the third quarter of 2020. That would suggest that the Dow 30,000 could mark a short-term peak. Others on Wall Street agree with Gayeski’s medium-term bullish assessment. “I think we can make new highs. The window could be when corporations report second quarter earnings in July and August and give third quarter outlooks, if there is a little bit of promise on the trade front that allows businesses to plan and spend I think we can have a good runway going into the end of the year and into 2020,” contends 50-plus year market veteran Jim Awad of Clearstead Advisors. “We can make a new high in the markets somewhere between July 30 and the end of the year if there are no surprise events or wounds,” Awad adds. Story continues Brian Sozzi is an editor-at-large and co-host of ‘ The First Trade ’ at Yahoo Finance. Follow Brian Sozzi him on Twitter @BrianSozzi Read the latest financial and business news from Yahoo Finance Trump's trade war with China may shock investors this summer 2 black swans could come out of nowhere and kill stocks this summer Why scrapping Trump's corporate tax cuts could crush businesses Follow Yahoo Finance on Twitter , Facebook , Instagram , Flipboard , SmartNews , LinkedIn , YouTube , and reddit . |
Russia says findings of MH17 crash investigation are groundless
MOSCOW, June 19 (Reuters) - Russia's Foreign Ministry said on Wednesday that it regretted the findings of the Malaysia Airlines flight MH17 crash investigation and called murder charges against Russian suspects groundless.
Three Russians and a Ukrainian will face murder charges for the 2014 downing of the MH17 jet over eastern Ukraine which killed 298 people, in a trial to start in the Netherlands next March, an investigation team said earlier on Wednesday .
"Once again, absolutely groundless accusations are being made against the Russian side, aimed at discrediting the Russian Federation in the eyes of the international community", the Russian Foreign Ministry said on its website. (Reporting by Christian Lowe Writing by Andrey Kuzmin) |
Huge iPhone X Plus Looks Like the One to Beat
Apple is betting that its biggest upcoming iPhone might just prove to be the most popular. Credit: Tom's Guide Credit: Tom's Guide The tech giant has ordered 45 million 6.5-inch OLED panels and 25 million 5.8-inch OLED panels, according to a report from Korean news outlet The Bell . Apple has also placed an order for 30 million 6.1-inch LCD panels for a cheaper version of its iPhone X, according to the report, which was earlier discovered by 9to5Mac . While the orders don't necessarily translate to sales predictions and can change over time, if they're accurate, it would suggest that Apple believes its iPhone X Plus will be the most popular version of all the handsets it releases this year. It also suggests that the iPhone X follow-up will be its least-popular model. Rumors have been swirling for months that Apple is working on three new iPhones for this year. The base model is expected to be a 6.1-inch LCD-based handset that will feature an iPhone X-like design and come with the most affordable price tag of the bunch. Apple's iPhone X, which is equipped with a 5.8-inch screen, is also getting a refresh, according to reports. And Apple will complement those handsets with the 6.5-inch iPhone X Plus , which will come with the same design as the iPhone X, but have a much larger screen. MORE: Case Maker Just Leaked the iPhone of Our Dreams There had been speculation that Apple would sell more LCD models this year than any other. After all, the company's iPhone X has its biggest screen of all time and its highest price tag but isn't as popular as the cheaper iPhone 8 and iPhone 8 Plus . Some had suggested the same might happen with this year's slate of iPhones. But Apple appears to be basing its decision on older iPhone launches that saw the larger versions attract more shoppers than the smaller and cheaper models. Apple ostensibly believes that customers will follow the same path with the iPhone Xs this year and opt for a larger version if it's available. Story continues Of course, price also matters here. And it's believed that Apple will keep all of its models under the $1,000 mark to start, with the iPhone X going for $899 and iPhone X Plus retailing for $999. The base LCD model will be less, but exactly how cheap is unknown. See also : Best iPhone X Alternatives The Most Anticipated Smartphones - New Phones Coming Out The Best iOS Apps You're Not Using (But Should Be) 9 New iOS 12 Features That Make Your iPhone Better |
Explainer: Can European steel forge a strategy to withstand U.S. tariffs?
By Barbara Lewis and Eric Onstad
LONDON (Reuters) - Steelmakers in Europe have been hit by falling demand and rising supply as auto-sector consumption has fallen and U.S. steel tariffs have disrupted shipments.
Britain's second biggest steel producer British Steel, which collapsed in May, is a high-profile casualty.
Days later, the world's biggest steelmaker ArcelorMittal cut European production for a second time in a month.
Industry leaders meet on June 26 in Brussels to assess what next.
The following addresses some of the questions.
WHY IS EUROPEAN STEEL IN CRISIS?
Higher raw material prices have squeezed steelmakers' profit margins. A Vale dam collapse in Brazil in January led to reduced iron ore output, needed for steelmaking, fuelling a doubling of iron ore prices over the last 12 months, while coking coal is about 10% more expensive.
At the same time, steel rebar prices on the London Metal Exchange have shed more than a fifth and steel company shares in May sank to their lowest since 2016. EU steel output is also down, slipping by 4% in April.
Meanwhile, Washington's 25% import tariffs have effectively closed the U.S. market, pushing steel shipments to Europe. Despite EU safeguard measures designed to prevent excess shipments from abroad, imports accounted for 10% of the EU market in 2018, double the share the year before.
WHO'S DOING WELL, BADLY?
The collapse of British Steel is an extreme example of the impact of the European steel crisis.
The company's liquidation in May followed the combination of higher input costs and a miscalculation on the EU carbon market.
Analysts say the uncertainty surrounding Britain's departure from the European Union aggravated the misfortunes of British Steel, which relied on the EU for 70% of its sales. European rivals are better placed to supply for instance Germany's car manufacturers.
The Official Receiver has said it is working with "interested parties to explore how to preserve the company as a going concern". A mid-June deadline for firm bids has been extended until at least the end of the month.
Moody's ratings agency lowered its outlook on the European steel industry in May to negative from stable citing poor demand, high imports and falling steel prices.
Analysts say, however, ArcelorMittal has a strong balance sheet and its global reach means it is well-placed to benefit from any wider recovery in steel demand and any strengthening of EU measures to counter imports.
Austria's Voestalpine is insulated from the steel cycle by its high-end product portfolio sold on long-term contracts.
WHAT CAN EUROPE DO?
The European Commission, the EU executive, is reviewing its safeguard measures designed to counter the U.S. tariffs.
Quotas are set at the average level of imports in 2015-2017 plus 5%, with further 5% hikes envisaged on July 1 and a year later. Beyond these quotas, 25% tariffs apply.
The industry says tougher steps are needed. It says the U.S. tariffs have pushed more steel into Europe, especially from Turkey, which has overtaken China as the EU's biggest foreign steel supplier.
ArcelorMittal in an emailed statement said market conditions were "incredibly challenging".
"The unfortunate reality is the EU safeguard measures have not proved effective in countering a re-direction of trade flows as a result of the Section 232 tariffs introduced in the U.S., and urgently need strengthening," a company spokesman said.
STRATEGIC INDUSTRY?
The British government has so far stopped short of a clear industrial strategy.
The European Commission has said steel is a strategic industry, but some industry representatives question whether the Commission is doing enough.
Its decision in June to block Thyssenkrupp's and Tata Steel's plan to form a landmark joint venture, has deprived the sector of the consolidation many analysts say is essential to survival. The Commission was concerned the deal would have pushed up prices and reduced competition.
($1 = 0.7976 pounds)
(Reporting by Barbara Lewis; editing by Emelia Sithole-Matarise) |
Trump administration rolls back Obama rule targeting coal-fired power plants, issues less ambitious replacement
WASHINGTON (AP) Trump administration rolls back Obama rule targeting coal-fired power plants, issues less ambitious replacement. |
If You Had Bought Everton Resources (CVE:EVR) Stock Five Years Ago, You'd Be Sitting On A 75% Loss, Today
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Everton Resources Inc.(CVE:EVR) shareholders will doubtless be very grateful to see the share price up 50% in the last week. But spare a thought for the long term holders, who have held the stock as it bled value over the last five years. In fact, the share price has tumbled down a mountain to land 75% lower after that period. The recent bounce might mean the long decline is over, but we are not confident. The real question is whether the business can leave its past behind and improve itself over the years ahead.
View our latest analysis for Everton Resources
With zero revenue generated over twelve months, we don't think that Everton Resources has proved its business plan yet. This state of affairs suggests that venture capitalists won't provide funds on attractive terms. So it seems shareholders are too busy dreaming about the progress to come than dwelling on the current (lack of) revenue. It seems likely some shareholders believe that Everton Resources will find or develop a valuable new mine before too long.
We think companies that have neither significant revenues nor profits are pretty high risk. You should be aware that there is always a chance that this sort of company will need to issue more shares to raise money to continue pursuing its business plan. While some 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 Everton Resources investors have already had a taste of the bitterness stocks like this can leave in the mouth.
Our data indicates that Everton Resources had CA$413,871 more in total liabilities than it had cash, when it last reported in January 2019. That puts it in the highest risk category, according to our analysis. But with the share price diving 24% per year, over 5 years, it's probably fair to say that some shareholders no longer believe the company will succeed. You can see in the image below, how Everton Resources's cash levels have changed over time (click to see the values).
In reality it's hard to have much certainty when valuing a business that has neither revenue or profit. Given that situation, would you be concerned if it turned out insiders were relentlessly selling stock? It would bother me, that's for sure. It costs nothing but a moment of your time tosee if we are picking up on any insider selling.
Everton Resources shareholders are down 14% for the year, but the market itself is up 1.4%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, longer term shareholders are suffering worse, given the loss of 24% doled out over the last five years. We'd need to see some sustained improvements in the key metrics before we could muster much enthusiasm. Before spending more time on Everton Resourcesit might be wise to click here to see if insiders have been buying or selling shares.
But note:Everton Resources 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 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. |
Deutsche Bank seeks to shed risky assets as part of overhaul: sources
By Tom Sims and Hans Seidenstuecker
FRANKFURT (Reuters) - Deutsche Bank is aiming to cut up to a quarter of its riskiest assets in the next few years, people familiar with the matter said, shedding more light on how the German lender is trying to overhaul its business and revive profitability.
The plan provides more detail on a restructuring expected since Chief Executive Officer Christian Sewing promised shareholders "tough cutbacks" to turn the bank around after it botched an attempted merger with rival Commerzbank.
The bank's shares, which have hit record lows in June, have perked up on expectations that a major overhaul is underway.
Deutsche is expected to talk to top investors within days to elaborate on its plans, a person with direct knowledge of the matter said. The group will unveil the strategy in July, other people say.
The bank has struggled to bounce back after the 2008 financial crisis and has been plagued by failed regulatory stress tests, multi-billion dollar fines and management upheavals and most recently a failed merger.
Deutsche's biggest business by revenues is its investment bank, which holds swathes of high-risk assets such as complex derivatives. Cutting back on risky assets would in theory allow Deutsche to hold less capital and use this money for other purposes to try to boost profit.
Under the plan, Deutsche will reduce its so-called risk-weighted assets by between 20% and 25% over the next three-to-five years, the people said, speaking on condition of anonymity.
Risk weighting is where a bank assigns a risk of losses to an asset, such as a derivative or loan. That, in turn, determines how much capital it needs to cover such a loss.
The bank held 347 billion euros ($388.61 billion) in such assets at the end of the first quarter, according to Deutsche's quarterly results. A 25% reduction would bring assets to about 260 billion euros.
Deutsche Bank declined to comment but said it was working on measures to accelerate its transformation so as to improve its sustainable profitability. "We will update all stakeholders if and when required," the bank said.
Other changes include shrinking or shutting equity and rates trading businesses outside of Europe. Deutsche is also planning to create a "bad bank" for non-core assets, which can be a way to reduce risky assets over time. In an internal bad bank, risk weighted assets remain on the bank's balance sheet until they are wound down.
One of the big open questions is how many jobs Deutsche will cut. The bank has already pledged to reduce headcount to under 90,000, from the current 91,463.
Analysts and some investors would like to see a staff reduction of more than 10% for the overhaul to be credible.
Deutsche management is also in flux. Pressure to step down has been building on Garth Ritchie, head of the investment bank, and Sylvie Matherat, chief regulatory officer, according to people with direct knowledge of the matter.
The bank has declined to comment on the possible shake-up.
The revamp will delay further some of the bank's goals. Deutsche is widely expected to miss its key profitability target - a return on tangible equity of 4% - in 2019.
Swiss banks UBS and Credit Suisse have already restructured by paring down their investment banks and are today on stronger footing, providing hope for Deutsche Bank, analysts say.
But competition is heating up on Deutsche's home turf. Standard Chartered earlier this year opened its new European Union headquarters in Frankfurt next door to Deutsche's head office.
The bank aims to take on Deutsche's core clientele - big German corporations - by offering them services in far flung countries, Standard Chartered CEO Bill Winters told reporters on Tuesday.
(Reporting by Tom Sims. Editing by Jane Merriman) |
Is Nortech Systems Incorporated (NASDAQ:NSYS) Investing Your Capital Efficiently?
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Today we'll evaluate Nortech Systems Incorporated (NASDAQ:NSYS) to determine whether it could have potential as an investment idea. To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business.
First of all, we'll work out how to calculate ROCE. Next, we'll compare it to others in its industry. Last but not least, we'll look at what impact its current liabilities have on its ROCE.
ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business. Generally speaking a higher ROCE is better. Overall, it is a valuable metric that has its flaws. Author Edwin Whitingsaysto be careful when comparing the ROCE of different businesses, since 'No two businesses are exactly alike.'
The formula for calculating the return on capital employed is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
Or for Nortech Systems:
0.03 = US$1.3m ÷ (US$70m - US$28m) (Based on the trailing twelve months to March 2019.)
Therefore,Nortech Systems has an ROCE of 3.0%.
See our latest analysis for Nortech Systems
When making comparisons between similar businesses, investors may find ROCE useful. Using our data, Nortech Systems's ROCE appears to be significantly below the 12% average in the Electronic industry. This could be seen as a negative, as it suggests some competitors may be employing their capital more efficiently. Regardless of how Nortech Systems stacks up against its industry, its ROCE in absolute terms is quite low (especially compared to a bank account). It is likely that there are more attractive prospects out there.
Our data shows that Nortech Systems currently has an ROCE of 3.0%, compared to its ROCE of 0.2% 3 years ago. This makes us think about whether the company has been reinvesting shrewdly.
Remember that this metric is backwards looking - it shows what has happened in the past, and does not accurately predict the future. ROCE can be misleading for companies in cyclical industries, with returns looking impressive during the boom times, but very weak during the busts. ROCE is only a point-in-time measure. You can check if Nortech Systems has cyclical profits by looking at thisfreegraph of past earnings, revenue and cash flow.
Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual. To counter this, investors can check if a company has high current liabilities relative to total assets.
Nortech Systems has total assets of US$70m and current liabilities of US$28m. As a result, its current liabilities are equal to approximately 40% of its total assets. In light of sufficient current liabilities to noticeably boost the ROCE, Nortech Systems's ROCE is concerning.
There are likely better investments out there. Of course,you might also be able to find a better stock than Nortech Systems. So you may wish to see thisfreecollection of other companies that have grown earnings strongly.
I will like Nortech Systems better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Don't expect a quick decision on who gets the EU's top jobs
French president Emmanuel Macron and German chancellor Angela Merkel at a meeting of European Union leaders, 2019. Photo: Ludovic Marin/Pool via Reuters Leaders of 28 European nations sit down in Brussels on Thursday to discuss who to nominate for the top jobs in the European Union. Posts to be filled include presidencies of the EU parliament, the council, the central bank, the foreign policy chief. The biggie is, of course, who gets to be the next president of the European commission. European council president Donald Tusk said he was hoping leaders would agree on nominees on Thursday. But that seems optimistic since the EU’s two largest members Germany and France are still in a stalemate over candidates. French president Emmanuel Macron is not a fan of the “lead candidate” (Spitzenkandidat) system, which means the head candidate of the party group that won most seats gets nominated by the European council and then approved by the parliament. Macron believes the choice of president needs to reflect the election results — his liberal centrist group came in third. He is also pushing for a fair split of men and women in the top roles. The lead candidate this time is Manfred Weber of the center-right European People’s Party. Weber has Angela Merkel’s backing, but Macron is unimpressed with him, saying he lacks political experience and is not well known. A government official in Berlin said on Wednesday that Germany planned to stick with the lead candidate system, and that Merkel and Macron would discuss before the summit. The official also said that it could well happen that the 28 leaders fail to agree on nominations on Thursday — that “would not be the end of the world” — but there would definitely be a solution by July 2, when the parliament convenes. The official noted that while there needs to be a compromise between Germany and France, there also needs to be consensus between all member states, who as yet have not definitively stated their positions. “There is no sense of urgency as yet,” a Brussels diplomat told Reuters this week. “We need a European parliamentary majority. None of that is there as yet, it’s too early for people to show their hand.” Story continues Macron said last week he would back Merkel for commission president if she wanted it, but the German leader has said that she has no desire to have another job in politics once she leaves office in 2021. “While the German politician Manfred Weber has the backing of the largest party in the European parliament, there is growing resistance against Weber,” said ING Germany chief economist Carsten Brzeski. “This could open the door for the Danish-born competition commissioner for the EU, Margrethe Vestager or the centre-left Dutch politician Frans Timmermans.” Vestager belongs to the Liberal ALDE group, and Timmermans is from the Dutch Labour Party. The nomination process is already trickier this time around as the two largest parliamentary groups, the centre-right European People’s Party (EPP) and the centre-left Progressive Alliance of Socialists and Democrats (S&D) lost their combined majority in the May elections. READ MORE: Macron would back Merkel for EU's top job |
Why Trump's EPA Rollback to End 'War on Coal' Won't Rescue the Industry
President Donald Trump is scaling back sweeping Obama-era curbs on greenhouse gas emissions from power plants burning coal, his biggest step yet to fulfill his campaign promise to stop a “war” on the fossil fuel.
Yet the Environmental Protection Agency’s rewrite of the Clean Power Plan — which is being unveiled Wednesday — will do little to halt a nationwide shift away from coal and toward cheaper electricity generated by the wind, the sun and natural gas.
The U.S. is experiencing “a wave of coal retirements — and we don’t think we’re near the end of it,” said Nicholas Steckler, head of U.S. power for BloombergNEF. “Coal is inferior to natural gas in many ways today — it’s less flexible, it’s higher cost, even its fuel is generally more expensive, and, of course, it’s dirty. It has so many reasons stacked against it.”
Where the new plan focuses on what can be achieved at individual coal plants, the Clean Power Plan it is replacing aimed to drive broader changes in the U.S. electric mix and threatened to spur a wave of coal plant closures. That measure — one of former President Barack Obama’s signature initiatives to combat climate change — compelled states to make systemwide changes in the name of cutting emissions, from bolstering energy efficiency and adding renewables to shutting coal-fired plants altogether.
The EPA’s final “Affordable Clean Energy” rule is designed to pare carbon dioxide emissions by encouraging efficiency upgrades at individual power plants. Like an earlier proposal released last October, the final rule will empower states to develop performance standards for plants based on assumptions about the kind of efficiency gains — known as heat-rate improvements — that can be eked out by plugging duct leaks, installing advanced soot blowers and making other upgrades at the sites.
Environmentalists have already vowed to battle the replacement rule in federal court, setting up potential legal wrangling that could last years.
Industry advocates say the Trump administration is curbing federal government overreach and leveling the playing field.
“It won’t necessarily be the saving grace for coal,” but “this regulation gives coal a fighting chance,” said Nick Loris, an economist with the Heritage Foundation. The EPA is following the rule of law and removing “government-imposed barriers that will lead to increased innovation, competition and efficiency that will ultimately drive down pollution.”
The EPA’s new approach is rooted in Clean Power Plan foes’ arguments that the agency does not have legal authority to regulate emissions beyond the boundaries of existing plants. In some cases, efficiency gains spurred by the new rule could encourage utilities to run their coal power plants more often, undercutting potential environmental benefits.
The flexibility for states in the final rule should help stave off premature coal plant closures, said Michelle Bloodworth, president of the American Council for Clean Coal Electricity. “These improvements to coal plant competitiveness will help to increase the longevity of the existing fleet,” she said.
The Obama initiative also was seen by some as discouraging electricity made from natural gas.
“Besides exceeding EPA’s legal authority, the Clean Power Plan was also written to reduce gas and nuclear generation,” said Christopher Guith, acting president of the Chamber of Commerce’s Global Energy Institute. “That’s counterproductive climate policy and bad energy policy.”
Environmentalists attacked the Trump administration proposal, saying the EPA was shirking its responsibility to protect public health and the environment. The power plant measure comes as the agency separately moves to ease rules curbing greenhouse gas emissions from automobiles and oil wells.
“Any rule that resembles the proposal would amount to a do-nothing program that fails to protect Americans from climate change and fails to fulfill EPA’s responsibilities under the Clean Air Act,” said Sean Donahue, a lawyer representing the Environmental Defense Fund.
On the campaign trail in 2016, Trump promised to revive the coal industry and restore mining jobs — a message that resonated with the working-class voters who helped elect him. In coal-rich West Virginia, a once reliably Democratic state, Trump won 68% of the vote.
The Clean Power Plan rewrite is the Trump administration’s most tangible move to deliver on that promise, though the EPA has also proposed lifting a de facto requirement that any new coal power plants be built with expensive carbon-capture technology. The agency also has proposed that limits on mercury pollution from power plants are no longer “appropriate and necessary.”
Yet state regulations are also encouraging utilities to adopt more renewable wind and solar power. At the same time, the lower cost and cleaner-burning profile of natural gas has encouraged a shift toward that fossil fuel.
Power plant owners are unlikely to make dramatic shifts in their plans and portfolios based on the Trump administration policy change, especially given the prospects a new president could reverse course as soon as 2021 and amid competing pressure from state policies, said Bloomberg Intelligence analyst Kit Konolige.
“The economics and the desire in many jurisdictions for clean power continue to be the strong drivers of what gets done on the ground,” Konolige said.
While states and utilities with a significant amount of coal will have “more flexibility,” under the Trump administration approach, “everyone’s moving in the direction of eventually eliminating coal plants,” he said.
Some 65 gigawatts of coal-fired electric generating capacity have gone offline since 2011 — with another 41 gigawatts pending retirement and 105 gigawatts at risk of closure, according to BloombergNEF.
The Clean Power Plan never actually went into effect, having been halted by the Supreme Court in February 2016. Even without it, the U.S. is on track to meet its original goals of reducing greenhouse gas emissions 32% from 2005 levels by 2030, BNEF’s Steckler said.
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Here’s What Hedge Funds Think About MicroStrategy Incorporated (MSTR)
Hedge funds and large money managers usually invest with a focus on the long-term horizon and, therefore, short-lived dips or bumps on the charts, usually don't make them change their opinion towards a company. This time it may be different. During the fourth quarter of 2018 we observed increased volatility and small-cap stocks underperformed the market. Things completely reversed during the first quarter. Hedge fund investor letters indicated that they are cutting their overall exposure, closing out some position and doubling down on others. Let’s take a look at the hedge fund sentiment towards MicroStrategy Incorporated (NASDAQ:MSTR) to find out whether it was one of their high conviction long-term ideas.
MicroStrategy Incorporated (NASDAQ:MSTR)has seen a decrease in support from the world's most elite money managers in recent months. Our calculations also showed that mstr isn't among the30 most popular stocks among hedge funds.
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
We're going to review the new hedge fund action encompassing MicroStrategy Incorporated (NASDAQ:MSTR).
Heading into the second quarter of 2019, a total of 20 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -13% from the previous quarter. The graph below displays the number of hedge funds with bullish position in MSTR over the last 15 quarters. With hedge funds' sentiment swirling, there exists an "upper tier" of notable hedge fund managers who were boosting their stakes significantly (or already accumulated large positions).
Among these funds,Hawk Ridge Managementheld the most valuable stake in MicroStrategy Incorporated (NASDAQ:MSTR), which was worth $29.9 million at the end of the first quarter. On the second spot was Echo Street Capital Management which amassed $23.5 million worth of shares. Moreover, Lynrock Lake, D E Shaw, and GLG Partners were also bullish on MicroStrategy Incorporated (NASDAQ:MSTR), allocating a large percentage of their portfolios to this stock.
Seeing as MicroStrategy Incorporated (NASDAQ:MSTR) has witnessed falling interest from hedge fund managers, we can see that there were a few fund managers who were dropping their entire stakes heading into Q3. Interestingly, Ricky Sandler'sEminence Capitalcut the biggest position of the 700 funds followed by Insider Monkey, worth an estimated $11.5 million in stock, and Benjamin A. Smith's Laurion Capital Management was right behind this move, as the fund dropped about $2.1 million worth. These moves are important to note, as total hedge fund interest was cut by 3 funds heading into Q3.
Let's check out hedge fund activity in other stocks similar to MicroStrategy Incorporated (NASDAQ:MSTR). These stocks are Central Garden & Pet Co (NASDAQ:CENT), Park National Corporation (NYSE:PRK), MRC Global Inc (NYSE:MRC), and Calavo Growers, Inc. (NASDAQ:CVGW). This group of stocks' market values match MSTR's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CENT,16,124562,-8 PRK,5,12810,-2 MRC,18,105875,3 CVGW,12,46900,-2 Average,12.75,72537,-2.25 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 12.75 hedge funds with bullish positions and the average amount invested in these stocks was $73 million. That figure was $185 million in MSTR's case. MRC Global Inc (NYSE:MRC) is the most popular stock in this table. On the other hand Park National Corporation (NYSE:PRK) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks MicroStrategy Incorporated (NASDAQ:MSTR) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately MSTR wasn't nearly as popular as these 20 stocks and hedge funds that were betting on MSTR were disappointed as the stock returned -7.3% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2.
Disclosure: None. This article was originally published atInsider Monkey.
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Hedge Funds Have Never Been This Bullish On Sleep Number Corporation (SNBR)
Hedge funds and other investment firms run by legendary investors like Israel Englander, Jeffrey Talpins and Ray Dalio are entrusted to manage billions of dollars of accredited investors' money because they are without peer in the resources they use to identify the best investments for their chosen investment horizon. Moreover, they are more willing to invest a greater amount of their resources in small-cap stocks than big brokerage houses, and this is often where they generate their outperformance, which is why we pay particular attention to their best ideas in this space.
Sleep Number Corporation (NASDAQ:SNBR)has experienced an increase in enthusiasm from smart money of late. Our calculations also showed that snbr isn't among the30 most popular stocks among hedge funds.
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
[caption id="attachment_745225" align="aligncenter" width="473"]
Noam Gottesman, GLG Partners[/caption]
Let's take a peek at the new hedge fund action surrounding Sleep Number Corporation (NASDAQ:SNBR).
At the end of the first quarter, a total of 20 of the hedge funds tracked by Insider Monkey were long this stock, a change of 11% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards SNBR over the last 15 quarters. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds,D E Shawheld the most valuable stake in Sleep Number Corporation (NASDAQ:SNBR), which was worth $57.6 million at the end of the first quarter. On the second spot was GLG Partners which amassed $26.8 million worth of shares. Moreover, Renaissance Technologies, Millennium Management, and Arrowstreet Capital were also bullish on Sleep Number Corporation (NASDAQ:SNBR), allocating a large percentage of their portfolios to this stock.
As aggregate interest increased, some big names have been driving this bullishness.Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, created the most valuable position in Sleep Number Corporation (NASDAQ:SNBR). Arrowstreet Capital had $19.8 million invested in the company at the end of the quarter. Lee Ainslie'sMaverick Capitalalso initiated a $1.7 million position during the quarter. The other funds with brand new SNBR positions are Matthew Hulsizer'sPEAK6 Capital Management, Hoon Kim'sQuantinno Capital, and Joel Greenblatt'sGotham Asset Management.
Let's go over hedge fund activity in other stocks - not necessarily in the same industry as Sleep Number Corporation (NASDAQ:SNBR) but similarly valued. We will take a look at Noble Midstream Partners LP (NYSE:NBLX), MOGU Inc. (NYSE:MOGU), Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA), and ICF International Inc (NASDAQ:ICFI). All of these stocks' market caps are similar to SNBR's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position NBLX,4,7623,-2 MOGU,1,440,-1 MNTA,18,259500,-2 ICFI,17,44992,0 Average,10,78139,-1.25 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $78 million. That figure was $192 million in SNBR's case. Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA) is the most popular stock in this table. On the other hand MOGU Inc. (NYSE:MOGU) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks Sleep Number Corporation (NASDAQ:SNBR) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately SNBR wasn't nearly as popular as these 20 stocks and hedge funds that were betting on SNBR were disappointed as the stock returned -25.8% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2.
Disclosure: None. This article was originally published atInsider Monkey.
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Hedge Funds Have Never Been This Bullish On Stemline Therapeutics Inc (STML)
Reputable billionaire investors such as Jim Simons, Cliff Asness and David Tepper generate exorbitant profits for their wealthy accredited investors (a minimum of $1 million in investable assets would be required to invest in a hedge fund and most successful hedge funds won't accept your savings unless you commit at least $5 million) by pinpointing winning small-cap stocks. There is little or no publicly-available information at all on some of these small companies, which makes it hard for an individual investor to pin down a winner within the small-cap space. However, hedge funds and other big asset managers can do the due diligence and analysis for you instead, thanks to their highly-skilled research teams and vast resources to conduct an appropriate evaluation process. Looking for potential winners within the small-cap galaxy of stocks? We believe following the smart money is a good starting point.
Stemline Therapeutics Inc (NASDAQ:STML)was in 20 hedge funds' portfolios at the end of March. STML has experienced an increase in support from the world's most elite money managers lately. There were 15 hedge funds in our database with STML positions at the end of the previous quarter. Our calculations also showed that STML isn't among the30 most popular stocks among hedge funds.
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Let's take a glance at the fresh hedge fund action encompassing Stemline Therapeutics Inc (NASDAQ:STML).
Heading into the second quarter of 2019, a total of 20 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 33% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in STML over the last 15 quarters. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey's hedge fund database,Adage Capital Management, managed by Phill Gross and Robert Atchinson, holds the largest position in Stemline Therapeutics Inc (NASDAQ:STML). Adage Capital Management has a $45 million position in the stock, comprising 0.1% of its 13F portfolio. The second largest stake is held byRubric Capital Management, led by David Rosen, holding a $38.6 million position; the fund has 3.6% of its 13F portfolio invested in the stock. Remaining professional money managers that hold long positions encompassFarallon Capital, Brian Ashford-Russell and Tim Woolley'sPolar Capitaland Manoneet Singh'sKavi Asset Management.
With a general bullishness amongst the heavyweights, specific money managers have jumped into Stemline Therapeutics Inc (NASDAQ:STML) headfirst.Rubric Capital Management, managed by David Rosen, assembled the largest position in Stemline Therapeutics Inc (NASDAQ:STML). Rubric Capital Management had $38.6 million invested in the company at the end of the quarter.Farallon Capitalalso made a $25.7 million investment in the stock during the quarter. The following funds were also among the new STML investors: Manoneet Singh'sKavi Asset Management, Nathaniel August'sMangrove Partners, and Noam Gottesman'sGLG Partners.
Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Stemline Therapeutics Inc (NASDAQ:STML) but similarly valued. We will take a look at HarborOne Bancorp, Inc. (NASDAQ:HONE), Ingles Markets, Incorporated (NASDAQ:IMKTA), Comtech Telecommunications Corp. (NASDAQ:CMTL), and Universal Logistics Holdings, Inc. (NASDAQ:ULH). This group of stocks' market caps match STML's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position HONE,4,7730,0 IMKTA,11,43072,1 CMTL,20,90216,6 ULH,10,21608,-1 Average,11.25,40657,1.5 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 11.25 hedge funds with bullish positions and the average amount invested in these stocks was $41 million. That figure was $189 million in STML's case. Comtech Telecommunications Corp. (NASDAQ:CMTL) is the most popular stock in this table. On the other hand HarborOne Bancorp, Inc. (NASDAQ:HONE) is the least popular one with only 4 bullish hedge fund positions. Stemline Therapeutics Inc (NASDAQ:STML) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Hedge funds were also right about betting on STML as the stock returned 3.7% during the same period and outperformed the market by an even larger margin. Hedge funds were rewarded for their relative bullishness.
Disclosure: None. This article was originally published atInsider Monkey.
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Here’s What Hedge Funds Think About Weight Watchers International, Inc. (WW)
Before we spend days researching a stock idea we'd like to take a look at how hedge funds and billionaire investors recently traded that stock. S&P 500 Index ETF (SPY) lost 2.6% in the first two months of the second quarter. Ten out of 11 industry groups in the S&P 500 Index lost value in May. The average return of a randomly picked stock in the index was even worse (-3.6%). This means you (or a monkey throwing a dart) have less than an even chance of beating the market by randomly picking a stock. On the other hand, the top 20 most popular S&P 500 stocks among hedge funds not only generated positive returns but also outperformed the index by about 3 percentage points through May 30th. In this article, we will take a look at what hedge funds think about Weight Watchers International, Inc. (NASDAQ:WW).
IsWeight Watchers International, Inc. (NASDAQ:WW)a buy right now? Prominent investors are in a bearish mood. The number of long hedge fund positions fell by 3 lately. Our calculations also showed that ww isn't among the30 most popular stocks among hedge funds.WWwas in 20 hedge funds' portfolios at the end of the first quarter of 2019. There were 23 hedge funds in our database with WW holdings at the end of the previous quarter.
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Let's take a look at the fresh hedge fund action encompassing Weight Watchers International, Inc. (NASDAQ:WW).
At the end of the first quarter, a total of 20 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -13% from the previous quarter. By comparison, 32 hedge funds held shares or bullish call options in WW a year ago. With the smart money's sentiment swirling, there exists a select group of key hedge fund managers who were upping their stakes significantly (or already accumulated large positions).
The largest stake in Weight Watchers International, Inc. (NASDAQ:WW) was held byAQR Capital Management, which reported holding $52.9 million worth of stock at the end of March. It was followed by Renaissance Technologies with a $38.7 million position. Other investors bullish on the company included D E Shaw, Stadium Capital Management, and Millennium Management.
Since Weight Watchers International, Inc. (NASDAQ:WW) has witnessed declining sentiment from the entirety of the hedge funds we track, it's safe to say that there lies a certain "tier" of hedge funds who were dropping their positions entirely by the end of the third quarter. Intriguingly, Peter S. Park'sPark West Asset Managementsaid goodbye to the biggest investment of the 700 funds tracked by Insider Monkey, comprising close to $34.7 million in stock, and Ted White and Christopher Kiper's Legion Partners Asset Management was right behind this move, as the fund said goodbye to about $9.8 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 3 funds by the end of the third quarter.
Let's now review hedge fund activity in other stocks - not necessarily in the same industry as Weight Watchers International, Inc. (NASDAQ:WW) but similarly valued. These stocks are Corcept Therapeutics Incorporated (NASDAQ:CORT), Cardiovascular Systems Inc (NASDAQ:CSII), EnPro Industries, Inc. (NYSE:NPO), and Kite Realty Group Trust (NYSE:KRG). This group of stocks' market valuations are closest to WW's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CORT,18,132235,-1 CSII,18,119140,-3 NPO,17,146717,2 KRG,6,38694,-1 Average,14.75,109197,-0.75 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 14.75 hedge funds with bullish positions and the average amount invested in these stocks was $109 million. That figure was $210 million in WW's case. Corcept Therapeutics Incorporated (NASDAQ:CORT) is the most popular stock in this table. On the other hand Kite Realty Group Trust (NYSE:KRG) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Weight Watchers International, Inc. (NASDAQ:WW) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately WW wasn't nearly as popular as these 20 stocks and hedge funds that were betting on WW were disappointed as the stock returned -13% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2.
Disclosure: None. This article was originally published atInsider Monkey.
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Here’s What Hedge Funds Think About Extreme Networks, Inc (EXTR)
Investing in hedge funds can bring large profits, but it’s not for everybody, since hedge funds are available only for high-net-worth individuals. They generate significant returns for investors to justify their large fees and they allocate a lot of time and employ a complex analysis to determine the best stocks to invest in. A particularly interesting group of stocks that hedge funds like is the small-caps. The huge amount of capital does not allow hedge funds to invest a lot in small-caps, but our research showed that their most popular small-cap ideas are less efficiently priced and generate stronger returns than their large- and mega-cap picks and the broader market. That is why we pay special attention to the hedge fund activity in the small-cap space.
Extreme Networks, Inc (NASDAQ:EXTR)shares haven't seen a lot of action during the first quarter. Overall, hedge fund sentiment was unchanged. The stock was in 20 hedge funds' portfolios at the end of the first quarter of 2019. The level and the change in hedge fund popularity aren't the only variables you need to analyze to decipher hedge funds' perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That's why at the end of this article we will examine companies such as Continental Building Products Inc (NYSE:CBPX), Mr. Cooper Group Inc. (NASDAQ:COOP), and AK Steel Holding Corporation (NYSE:AKS) to gather more data points.
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
[caption id="attachment_735675" align="aligncenter" width="473"]
Didric Cederholm of Lion Point Capital[/caption]
Let's view the new hedge fund action surrounding Extreme Networks, Inc (NASDAQ:EXTR).
At Q1's end, a total of 20 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from one quarter earlier. By comparison, 18 hedge funds held shares or bullish call options in EXTR a year ago. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds,D E Shawheld the most valuable stake in Extreme Networks, Inc (NASDAQ:EXTR), which was worth $24.6 million at the end of the first quarter. On the second spot was Renaissance Technologies which amassed $19.1 million worth of shares. Moreover, Millennium Management, Citadel Investment Group, and Lion Point were also bullish on Extreme Networks, Inc (NASDAQ:EXTR), allocating a large percentage of their portfolios to this stock.
Seeing as Extreme Networks, Inc (NASDAQ:EXTR) has faced a decline in interest from hedge fund managers, logic holds that there were a few hedge funds that slashed their full holdings heading into Q3. At the top of the heap, Eric Singer'sVIEX Capital Advisorssaid goodbye to the largest position of the 700 funds watched by Insider Monkey, comprising about $14.2 million in stock, and Paul Marshall and Ian Wace's Marshall Wace LLP was right behind this move, as the fund said goodbye to about $5.8 million worth. These moves are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Let's also examine hedge fund activity in other stocks - not necessarily in the same industry as Extreme Networks, Inc (NASDAQ:EXTR) but similarly valued. These stocks are Continental Building Products Inc (NYSE:CBPX), Mr. Cooper Group Inc. (NASDAQ:COOP), AK Steel Holding Corporation (NYSE:AKS), and Chase Corporation (NYSE:CCF). This group of stocks' market values resemble EXTR's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CBPX,20,87312,4 COOP,27,310225,-1 AKS,13,29045,-2 CCF,9,89059,4 Average,17.25,128910,1.25 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 17.25 hedge funds with bullish positions and the average amount invested in these stocks was $129 million. That figure was $97 million in EXTR's case. Mr. Cooper Group Inc. (NASDAQ:COOP) is the most popular stock in this table. On the other hand Chase Corporation (NYSE:CCF) is the least popular one with only 9 bullish hedge fund positions. Extreme Networks, Inc (NASDAQ:EXTR) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately EXTR wasn't nearly as popular as these 20 stocks and hedge funds that were betting on EXTR were disappointed as the stock returned -23.2% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2.
Disclosure: None. This article was originally published atInsider Monkey.
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Have Insiders Been Buying Esperion Therapeutics, Inc. (NASDAQ:ESPR) Shares This Year?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares inEsperion Therapeutics, Inc.(NASDAQ:ESPR).
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
Check out our latest analysis for Esperion Therapeutics
Over the last year, we can see that the biggest insider purchase was by President Timothy Mayleben for US$244k worth of shares, at about US$48.73 per share. That implies that an insider found the current price of US$51.01 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider bought shares at close to current prices. Timothy Mayleben was the only individual insider to buy over the year.
Timothy Mayleben bought 15000 shares over the last 12 months at an average price of US$44.07. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at thisfreelist of companies. (Hint: insiders have been buying them).
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 2.7% of Esperion Therapeutics shares, worth about US$37m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Esperion Therapeutics insiders are well aligned, and that they may think the share price is too low. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check thisfreereport showing analyst forecasts for its future.
Of courseEsperion Therapeutics may not be the best stock to buy. So you may wish to see thisfreecollection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Here’s What Hedge Funds Think About SeaDrill Limited (SDRL)
The market has been volatile in the last 6 months as the Federal Reserve continued its rate hikes and then abruptly reversed its stance and uncertainty looms over trade negotiations with China. Small cap stocks have been hit hard as a result, as the Russell 2000 ETF (IWM) has underperformed the larger S&P 500 ETF (SPY) by nearly 9 percentage points. SEC filings and hedge fund investor letters indicate that the smart money seems to be paring back their overall long exposure since summer months, though some funds increased their exposure dramatically at the end of Q4 and the beginning of Q1. In this article, we analyze what the smart money thinks of SeaDrill Limited (NYSE:SDRL) and find out how it is affected by hedge funds' moves.
SeaDrill Limited (NYSE:SDRL)investors should be aware of a decrease in hedge fund sentiment recently. Our calculations also showed that sdrl isn't among the30 most popular stocks among hedge funds.
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Let's review the latest hedge fund action encompassing SeaDrill Limited (NYSE:SDRL).
At the end of the first quarter, a total of 20 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -9% from the previous quarter. The graph below displays the number of hedge funds with bullish position in SDRL over the last 15 quarters. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey's hedge fund database, Mark T. Gallogly'sCenterbridge Partnershas the most valuable position in SeaDrill Limited (NYSE:SDRL), worth close to $65.4 million, amounting to 9% of its total 13F portfolio. The second largest stake is held byKing Street Capital, managed by Brian J. Higgins, which holds a $55.3 million position; 2.7% of its 13F portfolio is allocated to the stock. Other peers with similar optimism contain Robert Henry Lynch'sAristeia Capital, Crispin Odey'sOdey Asset Management Groupand David Einhorn'sGreenlight Capital.
Due to the fact that SeaDrill Limited (NYSE:SDRL) has witnessed declining sentiment from the entirety of the hedge funds we track, it's easy to see that there exists a select few money managers that decided to sell off their positions entirely by the end of the third quarter. Intriguingly, Andy Redleaf'sWhitebox Advisorsdropped the biggest investment of the "upper crust" of funds monitored by Insider Monkey, totaling close to $5.8 million in stock, and Kenneth Tropin's Graham Capital Management was right behind this move, as the fund said goodbye to about $0.5 million worth. These transactions are important to note, as total hedge fund interest fell by 2 funds by the end of the third quarter.
Let's now take a look at hedge fund activity in other stocks similar to SeaDrill Limited (NYSE:SDRL). We will take a look at AdvanSix Inc. (NYSE:ASIX), Coeur Mining, Inc. (NYSE:CDE), Connecticut Water Service, Inc. (NASDAQ:CTWS), and Newpark Resources Inc (NYSE:NR). This group of stocks' market valuations are similar to SDRL's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ASIX,19,147109,0 CDE,11,25132,-2 CTWS,4,22160,-1 NR,15,42423,5 Average,12.25,59206,0.5 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 12.25 hedge funds with bullish positions and the average amount invested in these stocks was $59 million. That figure was $249 million in SDRL's case. AdvanSix Inc. (NYSE:ASIX) is the most popular stock in this table. On the other hand Connecticut Water Service, Inc. (NASDAQ:CTWS) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks SeaDrill Limited (NYSE:SDRL) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately SDRL wasn't nearly as popular as these 20 stocks and hedge funds that were betting on SDRL were disappointed as the stock returned -48.1% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2.
Disclosure: None. This article was originally published atInsider Monkey.
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Hedge Funds Have Never Been This Bullish On Collegium Pharmaceutical Inc (COLL)
How do we determine whether Collegium Pharmaceutical Inc (NASDAQ:COLL) makes for a good investment at the moment? We analyze the sentiment of a select group of the very best investors in the world, who spend immense amounts of time and resources studying companies. They may not always be right (no one is), but data shows that their consensus long positions have historically outperformed the market when we adjust for known risk factors.
IsCollegium Pharmaceutical Inc (NASDAQ:COLL)a bargain? Investors who are in the know are taking a bullish view. The number of long hedge fund positions moved up by 7 lately. Our calculations also showed that COLL isn't among the30 most popular stocks among hedge funds.COLLwas in 20 hedge funds' portfolios at the end of March. There were 13 hedge funds in our database with COLL holdings at the end of the previous quarter.
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Let's take a glance at the latest hedge fund action surrounding Collegium Pharmaceutical Inc (NASDAQ:COLL).
At the end of the first quarter, a total of 20 of the hedge funds tracked by Insider Monkey were long this stock, a change of 54% from one quarter earlier. By comparison, 14 hedge funds held shares or bullish call options in COLL a year ago. With hedge funds' capital changing hands, there exists a few key hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).
Among these funds,Frazier Healthcare Partnersheld the most valuable stake in Collegium Pharmaceutical Inc (NASDAQ:COLL), which was worth $28.6 million at the end of the first quarter. On the second spot was Rock Springs Capital Management which amassed $23.9 million worth of shares. Moreover, Sectoral Asset Management, Maverick Capital, and Cormorant Asset Management were also bullish on Collegium Pharmaceutical Inc (NASDAQ:COLL), allocating a large percentage of their portfolios to this stock.
Consequently, key hedge funds were leading the bulls' herd.Maverick Capital, managed by Lee Ainslie, assembled the most valuable position in Collegium Pharmaceutical Inc (NASDAQ:COLL). Maverick Capital had $6 million invested in the company at the end of the quarter. D. E. Shaw'sD E Shawalso initiated a $2.1 million position during the quarter. The other funds with new positions in the stock are Paul Marshall and Ian Wace'sMarshall Wace LLP, Andrew Feldstein and Stephen Siderow'sBlue Mountain Capital, and Peter Algert and Kevin Coldiron'sAlgert Coldiron Investors.
Let's now review hedge fund activity in other stocks - not necessarily in the same industry as Collegium Pharmaceutical Inc (NASDAQ:COLL) but similarly valued. We will take a look at Ciner Resources LP (NYSE:CINR), Assembly Biosciences Inc (NASDAQ:ASMB), Barings BDC, Inc. (NYSE:BBDC), and Forty Seven, Inc. (NASDAQ:FTSV). This group of stocks' market valuations resemble COLL's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CINR,1,6943,-1 ASMB,19,132468,1 BBDC,12,17484,2 FTSV,8,28475,2 Average,10,46343,1 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $46 million. That figure was $87 million in COLL's case. Assembly Biosciences Inc (NASDAQ:ASMB) is the most popular stock in this table. On the other hand Ciner Resources LP (NYSE:CINR) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks Collegium Pharmaceutical Inc (NASDAQ:COLL) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately COLL wasn't nearly as popular as these 20 stocks and hedge funds that were betting on COLL were disappointed as the stock returned -23.6% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2.
Disclosure: None. This article was originally published atInsider Monkey.
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Here’s What Hedge Funds Think About Enova International Inc (ENVA)
It seems that the masses and most of the financial media hate hedge funds and what they do, but why is this hatred of hedge funds so prominent? At the end of the day, these asset management firms do not gamble the hard-earned money of the people who are on the edge of poverty. Truth be told, most hedge fund managers and other smaller players within this industry are very smart and skilled investors. Of course, they may also make wrong bets in some instances, but no one knows what the future holds and how market participants will react to the bountiful news that floods in each day. The Standard and Poor’s 500 Index returned approximately 12.1% in the first 5 months of this year (through May 30th). Conversely, hedge funds’ top 20 large-cap stock picks generated a return of 18.7% during the same 5-month period, with the majority of these stock picks outperforming the broader market benchmark. Coincidence? It might happen to be so, but it is unlikely. Our research covering the last 18 years indicates that hedge funds' stock picks generate superior risk-adjusted returns. That's why we believe it isn't a waste of time to check out hedge fund sentiment before you invest in a stock like Enova International Inc (NYSE:ENVA).
Enova International Inc (NYSE:ENVA)was in 20 hedge funds' portfolios at the end of March. ENVA has experienced a decrease in activity from the world's largest hedge funds lately. There were 23 hedge funds in our database with ENVA holdings at the end of the previous quarter. Our calculations also showed that enva isn't among the30 most popular stocks among hedge funds.
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
We're going to take a peek at the key hedge fund action surrounding Enova International Inc (NYSE:ENVA).
At the end of the first quarter, a total of 20 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -13% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards ENVA over the last 15 quarters. With hedgies' positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were adding to their stakes substantially (or already accumulated large positions).
More specifically,Renaissance Technologieswas the largest shareholder of Enova International Inc (NYSE:ENVA), with a stake worth $59 million reported as of the end of March. Trailing Renaissance Technologies was Prescott Group Capital Management, which amassed a stake valued at $23 million. 683 Capital Partners, Osterweis Capital Management, and Huber Capital Management were also very fond of the stock, giving the stock large weights in their portfolios.
Because Enova International Inc (NYSE:ENVA) has witnessed falling interest from hedge fund managers, it's safe to say that there exists a select few money managers who were dropping their entire stakes by the end of the third quarter. At the top of the heap, Louis Navellier'sNavellier & Associatesdropped the biggest position of the "upper crust" of funds tracked by Insider Monkey, worth an estimated $1 million in stock. Paul Marshall and Ian Wace's fund,Marshall Wace LLP, also dumped its stock, about $0.7 million worth. These bearish behaviors are interesting, as total hedge fund interest fell by 3 funds by the end of the third quarter.
Let's now review hedge fund activity in other stocks - not necessarily in the same industry as Enova International Inc (NYSE:ENVA) but similarly valued. These stocks are Och-Ziff Capital Management Group Inc. (NYSE:OZM), Seabridge Gold, Inc. (NYSE:SA), Falcon Minerals Corporation (NASDAQ:FLMN), and FARO Technologies, Inc. (NASDAQ:FARO). This group of stocks' market valuations are similar to ENVA's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position OZM,8,57143,-1 SA,8,36717,0 FLMN,17,137801,-1 FARO,7,39156,-1 Average,10,67704,-0.75 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $68 million. That figure was $157 million in ENVA's case. Falcon Minerals Corporation (NASDAQ:FLMN) is the most popular stock in this table. On the other hand FARO Technologies, Inc. (NASDAQ:FARO) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Enova International Inc (NYSE:ENVA) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately ENVA wasn't nearly as popular as these 20 stocks and hedge funds that were betting on ENVA were disappointed as the stock returned -4.1% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2.
Disclosure: None. This article was originally published atInsider Monkey.
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Here’s What Hedge Funds Think About Extraction Oil & Gas, Inc. (XOG)
Before we spend days researching a stock idea we'd like to take a look at how hedge funds and billionaire investors recently traded that stock. S&P 500 Index ETF (SPY) lost 2.6% in the first two months of the second quarter. Ten out of 11 industry groups in the S&P 500 Index lost value in May. The average return of a randomly picked stock in the index was even worse (-3.6%). This means you (or a monkey throwing a dart) have less than an even chance of beating the market by randomly picking a stock. On the other hand, the top 20 most popular S&P 500 stocks among hedge funds not only generated positive returns but also outperformed the index by about 3 percentage points through May 30th. In this article, we will take a look at what hedge funds think about Extraction Oil & Gas, Inc. (NASDAQ:XOG).
Extraction Oil & Gas, Inc. (NASDAQ:XOG)has experienced a decrease in enthusiasm from smart money of late.XOGwas in 20 hedge funds' portfolios at the end of the first quarter of 2019. There were 22 hedge funds in our database with XOG holdings at the end of the previous quarter. Our calculations also showed that xog isn't among the30 most popular stocks among hedge funds.
Today there are several formulas market participants can use to value their holdings. Some of the most under-the-radar formulas are hedge fund and insider trading moves. Our experts have shown that, historically, those who follow the best picks of the top investment managers can beat the S&P 500 by a solid margin (see the details here).
We're going to take a look at the fresh hedge fund action regarding Extraction Oil & Gas, Inc. (NASDAQ:XOG).
At Q1's end, a total of 20 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -9% from one quarter earlier. On the other hand, there were a total of 17 hedge funds with a bullish position in XOG a year ago. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey,Luminus Management, managed by Jonathan Barrett and Paul Segal, holds the biggest position in Extraction Oil & Gas, Inc. (NASDAQ:XOG). Luminus Management has a $47.4 million position in the stock, comprising 1% of its 13F portfolio. The second most bullish fund manager isPoint72 Asset Management, led by Steve Cohen, holding a $21.5 million position; 0.1% of its 13F portfolio is allocated to the stock. Some other peers that are bullish comprise Paul Marshall and Ian Wace'sMarshall Wace LLP, Israel Englander'sMillennium Managementand Carl Goldsmith and Scott Klein'sBeach Point Capital Management.
Seeing as Extraction Oil & Gas, Inc. (NASDAQ:XOG) has faced falling interest from the aggregate hedge fund industry, it's easy to see that there exists a select few hedgies who sold off their positions entirely last quarter. It's worth mentioning that Joshua Friedman and Mitchell Julis'sCanyon Capital Advisorsdumped the biggest position of the 700 funds tracked by Insider Monkey, totaling an estimated $11.9 million in stock, and Lee Ainslie's Maverick Capital was right behind this move, as the fund dumped about $5.6 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest fell by 2 funds last quarter.
Let's go over hedge fund activity in other stocks similar to Extraction Oil & Gas, Inc. (NASDAQ:XOG). We will take a look at Forestar Group Inc. (NYSE:FOR), Opera Limited (NASDAQ:OPRA), Horizon Bancorp, Inc. (NASDAQ:HBNC), and Resolute Forest Products Inc (NYSE:RFP). This group of stocks' market caps resemble XOG's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position FOR,7,71999,1 OPRA,5,6930,0 HBNC,10,19043,4 RFP,23,311236,-4 Average,11.25,102302,0.25 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 11.25 hedge funds with bullish positions and the average amount invested in these stocks was $102 million. That figure was $130 million in XOG's case. Resolute Forest Products Inc (NYSE:RFP) is the most popular stock in this table. On the other hand Opera Limited (NASDAQ:OPRA) is the least popular one with only 5 bullish hedge fund positions. Extraction Oil & Gas, Inc. (NASDAQ:XOG) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately XOG wasn't nearly as popular as these 20 stocks and hedge funds that were betting on XOG were disappointed as the stock returned -18.4% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2.
Disclosure: None. This article was originally published atInsider Monkey.
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Here is What Hedge Funds Think About Invacare Corporation (IVC)
How do you pick the next stock to invest in? One way would be to spend hours of research browsing through thousands of publicly traded companies. However, an easier way is to look at the stocks that smart money investors are collectively bullish on. Hedge funds and other institutional investors usually invest large amounts of capital and have to conduct due diligence while choosing their next pick. They don't always get it right, but, on average, their stock picks historically generated strong returns after adjusting for known risk factors. With this in mind, let’s take a look at the recent hedge fund activity surrounding Invacare Corporation (NYSE:IVC).
IsInvacare Corporation (NYSE:IVC)a sound investment right now? Money managers are in a bullish mood. The number of long hedge fund positions moved up by 5 in recent months. Our calculations also showed that IVC isn't among the30 most popular stocks among hedge funds.
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
Let's analyze the latest hedge fund action regarding Invacare Corporation (NYSE:IVC).
At Q1's end, a total of 20 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 33% from the fourth quarter of 2018. On the other hand, there were a total of 21 hedge funds with a bullish position in IVC a year ago. With the smart money's sentiment swirling, there exists an "upper tier" of noteworthy hedge fund managers who were increasing their holdings considerably (or already accumulated large positions).
Among these funds,Royce & Associatesheld the most valuable stake in Invacare Corporation (NYSE:IVC), which was worth $17.8 million at the end of the first quarter. On the second spot was Millennium Management which amassed $10.1 million worth of shares. Moreover, D E Shaw, Marshall Wace LLP, and Pura Vida Investments were also bullish on Invacare Corporation (NYSE:IVC), allocating a large percentage of their portfolios to this stock.
As aggregate interest increased, some big names have jumped into Invacare Corporation (NYSE:IVC) headfirst.Pura Vida Investments, managed by Efrem Kamen, assembled the largest position in Invacare Corporation (NYSE:IVC). Pura Vida Investments had $6.6 million invested in the company at the end of the quarter. Howard Marks'sOaktree Capital Managementalso initiated a $3.1 million position during the quarter. The other funds with new positions in the stock are Thomas Ellis and Todd Hammer'sNorth Run Capital, Howard Marks'sOaktree Capital Management, and Andrew Feldstein and Stephen Siderow'sBlue Mountain Capital.
Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Invacare Corporation (NYSE:IVC) but similarly valued. These stocks are Verrica Pharmaceuticals Inc. (NASDAQ:VRCA), Dean Foods Company (NYSE:DF), UFP Technologies, Inc. (NASDAQ:UFPT), and Calumet Specialty Products Partners, L.P (NASDAQ:CLMT). All of these stocks' market caps match IVC's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position VRCA,4,56409,-1 DF,17,19399,0 UFPT,9,69220,1 CLMT,4,10140,-1 Average,8.5,38792,-0.25 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 8.5 hedge funds with bullish positions and the average amount invested in these stocks was $39 million. That figure was $67 million in IVC's case. Dean Foods Company (NYSE:DF) is the most popular stock in this table. On the other hand Verrica Pharmaceuticals Inc. (NASDAQ:VRCA) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Invacare Corporation (NYSE:IVC) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately IVC wasn't nearly as popular as these 20 stocks and hedge funds that were betting on IVC were disappointed as the stock returned -25.1% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2.
Disclosure: None. This article was originally published atInsider Monkey.
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Here’s What Hedge Funds Think About BGC Partners, Inc. (BGCP)
Insider Monkey has processed numerous 13F filings of hedge funds and successful investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and successful investors' positions as of the end of the first quarter. You can find write-ups about an individual hedge fund's trades on numerous financial news websites. However, in this article we will take a look at their collective moves and analyze what the smart money thinks of BGC Partners, Inc. (NASDAQ:BGCP) based on that data.
BGC Partners, Inc. (NASDAQ:BGCP)investors should be aware of an increase in support from the world's most elite money managers lately. Our calculations also showed that BGCP isn't among the30 most popular stocks among hedge funds.
So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio.
Let's take a glance at the new hedge fund action encompassing BGC Partners, Inc. (NASDAQ:BGCP).
At Q1's end, a total of 26 of the hedge funds tracked by Insider Monkey were long this stock, a change of 13% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards BGCP over the last 15 quarters. With hedge funds' positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were increasing their stakes significantly (or already accumulated large positions).
More specifically,Point72 Asset Managementwas the largest shareholder of BGC Partners, Inc. (NASDAQ:BGCP), with a stake worth $70.6 million reported as of the end of March. Trailing Point72 Asset Management was Cardinal Capital, which amassed a stake valued at $70.4 million. Rubric Capital Management, AQR Capital Management, and Alyeska Investment Group were also very fond of the stock, giving the stock large weights in their portfolios.
With a general bullishness amongst the heavyweights, key money managers have jumped into BGC Partners, Inc. (NASDAQ:BGCP) headfirst.Soros Fund Management, managed by George Soros, assembled the most outsized position in BGC Partners, Inc. (NASDAQ:BGCP). Soros Fund Management had $7.8 million invested in the company at the end of the quarter. Brandon Haley'sHolocene Advisorsalso made a $0.4 million investment in the stock during the quarter. The other funds with new positions in the stock are Roger Ibbotson'sZebra Capital Management, David Harding'sWinton Capital Management, and Matthew Tewksbury'sStevens Capital Management.
Let's check out hedge fund activity in other stocks - not necessarily in the same industry as BGC Partners, Inc. (NASDAQ:BGCP) but similarly valued. These stocks are TowneBank (NASDAQ:TOWN), Livent Corporation (NYSE:LTHM), Tenneco Inc (NYSE:TEN), and Varonis Systems Inc (NASDAQ:VRNS). This group of stocks' market values are similar to BGCP's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position TOWN,7,33308,-1 LTHM,25,358707,15 TEN,26,195221,1 VRNS,25,272768,4 Average,20.75,215001,4.75 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 20.75 hedge funds with bullish positions and the average amount invested in these stocks was $215 million. That figure was $253 million in BGCP's case. Tenneco Inc (NYSE:TEN) is the most popular stock in this table. On the other hand TowneBank (NASDAQ:TOWN) is the least popular one with only 7 bullish hedge fund positions. BGC Partners, Inc. (NASDAQ:BGCP) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately BGCP wasn't nearly as popular as these 20 stocks and hedge funds that were betting on BGCP were disappointed as the stock returned -8% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2.
Disclosure: None. This article was originally published atInsider Monkey.
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Hedge Funds Have Never Been This Bullish On Audentes Therapeutics, Inc. (BOLD)
The elite funds run by legendary investors such as David Tepper and Dan Loeb make hundreds of millions of dollars for themselves and their investors by spending enormous resources doing research on small cap stocks that big investment banks don't follow. Because of their pay structures, they have strong incentives to do the research necessary to beat the market. That's why we pay close attention to what they think in small cap stocks. In this article, we take a closer look at Audentes Therapeutics, Inc. (NASDAQ:BOLD) from the perspective of those elite funds.
IsAudentes Therapeutics, Inc. (NASDAQ:BOLD)a safe investment now? Investors who are in the know are betting on the stock. The number of long hedge fund positions went up by 2 in recent months. Our calculations also showed that BOLD isn't among the30 most popular stocks among hedge funds.
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
We're going to go over the latest hedge fund action regarding Audentes Therapeutics, Inc. (NASDAQ:BOLD).
At Q1's end, a total of 26 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 8% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards BOLD over the last 15 quarters. With the smart money's positions undergoing their usual ebb and flow, there exists an "upper tier" of noteworthy hedge fund managers who were adding to their holdings significantly (or already accumulated large positions).
The largest stake in Audentes Therapeutics, Inc. (NASDAQ:BOLD) was held byRedmile Group, which reported holding $106.7 million worth of stock at the end of March. It was followed by Partner Fund Management with a $79.2 million position. Other investors bullish on the company included OrbiMed Advisors, Baker Bros. Advisors, and Great Point Partners.
As one would reasonably expect, some big names have been driving this bullishness.Adage Capital Management, managed by Phill Gross and Robert Atchinson, initiated the most outsized position in Audentes Therapeutics, Inc. (NASDAQ:BOLD). Adage Capital Management had $6.5 million invested in the company at the end of the quarter. Michael S. Weiss and Lindsay A. Rosenwald'sOpus Point Partners Managementalso made a $0.7 million investment in the stock during the quarter. The other funds with brand new BOLD positions are Minhua Zhang'sWeld Capital Managementand Andrew Feldstein and Stephen Siderow'sBlue Mountain Capital.
Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as Audentes Therapeutics, Inc. (NASDAQ:BOLD) but similarly valued. We will take a look at BancFirst Corporation (NASDAQ:BANF), Steelcase Inc. (NYSE:SCS), Meritor Inc (NYSE:MTOR), and The E.W. Scripps Company (NYSE:SSP). This group of stocks' market valuations resemble BOLD's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position BANF,11,46268,2 SCS,24,57456,2 MTOR,18,295077,-2 SSP,25,228660,11 Average,19.5,156865,3.25 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 19.5 hedge funds with bullish positions and the average amount invested in these stocks was $157 million. That figure was $598 million in BOLD's case. The E.W. Scripps Company (NYSE:SSP) is the most popular stock in this table. On the other hand BancFirst Corporation (NASDAQ:BANF) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Audentes Therapeutics, Inc. (NASDAQ:BOLD) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately BOLD wasn't nearly as popular as these 20 stocks and hedge funds that were betting on BOLD were disappointed as the stock returned -7.6% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2.
Disclosure: None. This article was originally published atInsider Monkey.
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Hedge Funds Have Never Been This Bullish On Vitamin Shoppe Inc (VSI)
Investing in small cap stocks has historically been a way to outperform the market, as small cap companies typically grow faster on average than the blue chips. That outperformance comes with a price, however, as there are occasional periods of higher volatility. The last 8 months is one of those periods, as the Russell 2000 ETF (IWM) has underperformed the larger S&P 500 ETF (SPY) by nearly 9 percentage points. Given that the funds we track tend to have a disproportionate amount of their portfolios in smaller cap stocks, they have seen some volatility in their portfolios too. Actually their moves are potentially one of the factors that contributed to this volatility. In this article, we use our extensive database of hedge fund holdings to find out what the smart money thinks of Vitamin Shoppe Inc (NYSE:VSI).
IsVitamin Shoppe Inc (NYSE:VSI)a superb investment right now? The best stock pickers are betting on the stock. The number of long hedge fund positions rose by 5 recently. Our calculations also showed that VSI isn't among the30 most popular stocks among hedge funds.
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
[caption id="attachment_747612" align="aligncenter" width="473"]
Eric Singer of VIEX Capital[/caption]
We're going to analyze the recent hedge fund action encompassing Vitamin Shoppe Inc (NYSE:VSI).
Heading into the second quarter of 2019, a total of 20 of the hedge funds tracked by Insider Monkey were long this stock, a change of 33% from the fourth quarter of 2018. By comparison, 10 hedge funds held shares or bullish call options in VSI a year ago. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey, Himanshu H. Shah'sShah Capital Managementhas the number one position in Vitamin Shoppe Inc (NYSE:VSI), worth close to $29.4 million, comprising 15.3% of its total 13F portfolio. Sitting at the No. 2 spot isD E Shaw, led by D. E. Shaw, holding a $5.7 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining members of the smart money that hold long positions encompass Peter Rathjens, Bruce Clarke and John Campbell'sArrowstreet Capital, Jim Simons'sRenaissance Technologiesand Matthew Hulsizer'sPEAK6 Capital Management.
As aggregate interest increased, specific money managers have jumped into Vitamin Shoppe Inc (NYSE:VSI) headfirst.PEAK6 Capital Management, managed by Matthew Hulsizer, created the largest position in Vitamin Shoppe Inc (NYSE:VSI). PEAK6 Capital Management had $1.4 million invested in the company at the end of the quarter. Andrew Feldstein and Stephen Siderow'sBlue Mountain Capitalalso made a $1 million investment in the stock during the quarter. The other funds with new positions in the stock are Eric Singer'sVIEX Capital Advisors, Ken Griffin'sCitadel Investment Group, and Bradley Louis Radoff'sFondren Management.
Let's go over hedge fund activity in other stocks similar to Vitamin Shoppe Inc (NYSE:VSI). We will take a look at Medallion Financial Corp. (NASDAQ:MFIN), Medley Capital Corp (NYSE:MCC), Mackinac Financial Corporation (NASDAQ:MFNC), and Energous Corporation (NASDAQ:WATT). This group of stocks' market caps resemble VSI's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position MFIN,8,5212,-2 MCC,9,19308,0 MFNC,7,14523,2 WATT,4,3055,0 Average,7,10525,0 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $11 million. That figure was $51 million in VSI's case. Medley Capital Corp (NYSE:MCC) is the most popular stock in this table. On the other hand Energous Corporation (NASDAQ:WATT) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Vitamin Shoppe Inc (NYSE:VSI) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately VSI wasn't nearly as popular as these 20 stocks and hedge funds that were betting on VSI were disappointed as the stock returned -48.3% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2.
Disclosure: None. This article was originally published atInsider Monkey.
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Here’s What Hedge Funds Think About Callaway Golf Company (ELY)
We at Insider Monkey have gone over 738 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st. In this article, we look at what those funds think of Callaway Golf Company (NYSE:ELY) based on that data.
IsCallaway Golf Company (NYSE:ELY)an excellent investment right now? Prominent investors are becoming more confident. The number of long hedge fund positions improved by 3 lately. Our calculations also showed that ELY isn't among the30 most popular stocks among hedge funds.ELYwas in 26 hedge funds' portfolios at the end of March. There were 23 hedge funds in our database with ELY positions at the end of the previous quarter.
So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio.
We're going to take a look at the fresh hedge fund action encompassing Callaway Golf Company (NYSE:ELY).
At Q1's end, a total of 26 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 13% from the fourth quarter of 2018. On the other hand, there were a total of 17 hedge funds with a bullish position in ELY a year ago. With hedgies' capital changing hands, there exists a few notable hedge fund managers who were adding to their holdings substantially (or already accumulated large positions).
The largest stake in Callaway Golf Company (NYSE:ELY) was held byDaruma Asset Management, which reported holding $24.9 million worth of stock at the end of March. It was followed by Marshall Wace LLP with a $19.2 million position. Other investors bullish on the company included Millennium Management, 1060 Capital Management, and Arrowstreet Capital.
Now, specific money managers were leading the bulls' herd.1060 Capital Management, managed by Brian Gustavson and Andrew Haley, established the largest position in Callaway Golf Company (NYSE:ELY). 1060 Capital Management had $16.2 million invested in the company at the end of the quarter. Sander Gerber'sHudson Bay Capital Managementalso initiated a $4.3 million position during the quarter. The other funds with new positions in the stock are Peter Muller'sPDT Partners, Steve Cohen'sPoint72 Asset Management, and Minhua Zhang'sWeld Capital Management.
Let's now review hedge fund activity in other stocks - not necessarily in the same industry as Callaway Golf Company (NYSE:ELY) but similarly valued. We will take a look at Ebix Inc (NASDAQ:EBIX), Freshpet Inc (NASDAQ:FRPT), Eventbrite, Inc. (NYSE:EB), and Wageworks Inc (NYSE:WAGE). This group of stocks' market caps are similar to ELY's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position EBIX,22,154046,4 FRPT,25,117770,4 EB,16,356225,8 WAGE,21,160164,8 Average,21,197051,6 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $197 million. That figure was $145 million in ELY's case. Freshpet Inc (NASDAQ:FRPT) is the most popular stock in this table. On the other hand Eventbrite, Inc. (NYSE:EB) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks Callaway Golf Company (NYSE:ELY) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately ELY wasn't nearly as popular as these 20 stocks and hedge funds that were betting on ELY were disappointed as the stock returned -7.1% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2.
Disclosure: None. This article was originally published atInsider Monkey.
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Slack's Chairman Was Raised in a Log Cabin. Now He's Worth $1.3 Billion
Canadian entrepreneur Stewart Butterfield helped found Slack Technologies Inc. after selling his earlier startup, Flickr, to Yahoo for more than $20 million. The latest venture is bringing a bigger windfall.
His 8% stake in the workplace communication company would be worth $1.3 billion if Slack goes public this week at $16 billion, the low end of Wall Street’s expected range. Slack co-founder Cal Henderson, 38, owns 3% worth about $533 million.
Butterfield, the 46-year-old chairman and chief executive officer, has come a long way from the log cabin where he lived without electricity and running water for the first few years of his life. He was introduced to computers in the second grade but lost interest in the technology as he got older and went on to study philosophy in college.
“By the time I finished my master’s degree I really had no idea of what I was going to do except for be an academic because, you know, the big five philosophy firms aren’t always hiring,” Butterfield told Bloomberg last year.
After brief stints in the startup world at Communicate.com and Gradfinder.com, Butterfield came up with the idea for Flickr, a photo and video hosting service that he sold to Yahoo in 2005. Butterfield worked at Yahoo until 2008 and later founded Glitch, which became the multibillion-dollar company now called Slack.
Slack, an acronym for “Searchable Log of All Conversation and Knowledge,” will begin trading Thursday on the New York Stock Exchange under the ticker symbol WORK.
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How NexGen Energy Ltd. (TSE:NXE) Can Impact Your Portfolio Volatility
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Anyone researching NexGen Energy Ltd. (TSE:NXE) might want to consider the historical volatility of the share price. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market.
Some stocks are more sensitive to general market forces than others. Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). However, Warren Buffett said 'volatility is far from synonymous with risk' in his 2014 letter to investors. So, while useful, beta is not the only metric to consider. To use beta as an investor, you must first understand that the overall market has a beta of one. A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.
View our latest analysis for NexGen Energy
Given that it has a beta of 1.81, we can surmise that the NexGen Energy share price has been fairly sensitive to market volatility (over the last 5 years). Based on this history, investors should be aware that NexGen Energy are likely to rise strongly in times of greed, but sell off in times of fear. Many would argue that beta is useful in position sizing, but fundamental metrics such as revenue and earnings are more important overall. You can see NexGen Energy's revenue and earnings in the image below.
With a market capitalisation of CA$720m, NexGen Energy is a small cap stock. However, it is big enough to catch the attention of professional investors. It has a relatively high beta, which is not unusual among small-cap stocks. Because it takes less capital to move the share price of a smaller company, actively traded small-cap stocks often have a higher beta that a similar large-cap stock.
Since NexGen Energy tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as NexGen Energy’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Future Outlook: What are well-informed industry analysts predicting for NXE’s future growth? Take a look at ourfree research report of analyst consensusfor NXE’s outlook.
2. Past Track Record: Has NXE 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 NXE's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how NXE measures up against other companies on valuation. You could start with thisfree list of prospective options.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor 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. |
Hexo: When the Bulls Aren’t Bullish Enough
Do you own shares of Canadian cannabis company Hexo (HEXO)? If so we've got good news and bad news. (And when we say "we," what we really mean is Canadian investment bank BMO Capital).
BMO'sTamy Chenput out a new research report on Hexo, the upshot of which was that Hexo was doing both better, and also worse, than anticipated -- depending on which aspects of Hexo's business you focused on. The analyst reiterates a Market Perform rating on ACB stock, with $9.00 price target. (To watch Chen's track record,click here)
Good news first: Hexo's new one million square foot greenhouse (Number 89) is ramping production "better than ... expectations," and also better than greenhouses operated by other licensed producers of marijuana (LPs). Chen explains that this is because, in contrast to other LPs, which have generally created their greenhouses by repurposing existing structures to the cultivation of marijuana, Hexo's "89" facility is a "greenfield build" -- a new structure, purpose-built for cultivating cannabis. Its "climate control infrastructure" is therefore more efficient. On top of that, Hexo has built up "multiyear" experience growing in greenhouses, whereas some of its competitors are still learning the ropes.
On the surface, this seems like unadulterated good news for Hexo. It's one reason Chen believes that Hexo will hit its target of doubling its revenue between Q3 and Q4 2019, and why the analyst has raised her Q4 sales estimate for the company to C$26 million -- and her FY 2019 sales estimate to C$58 million. Chen also raised her estimate for volume of marijuana to be sold in Q4 2019, and 2019 as a whole -- to 5,640 kilograms and 12,342 kg, respectively.
But here's where we get to the bad news: While Chen is raising her estimates for 2019 production, she is lowering estimates for 2020 to C$266 million -- up from 2019 levels, but not up as much as the analyst previously expected.
Why is that?
Simply put: Because Hexo's marijuana-cultivation is going so well, there's a risk that it may not have the ability to process this marijuana into higher value-added cannabis derivatives (such as oils for vaping). Here, Chen echoes fears voiced by other analysts recently, to the effect that Hexo's new Belleville processing facility may experience delays in obtaining the necessary licenses to begin production, and/or delays in ramping production. And if such delays do occur at Belleville, at the same time as "89" ramps marijuana production, Hexo's existing processing facilities in Quebec may be unable to cope with the supply coming out of "89."
Is this something that should worry investors, too? Perhaps.
Consider that Chen is currently modeling a significant increase in marijuana retail prices -- from average prices of C$4.50 per gram for recreational marijuana and C$7.94 per gram for medical marijuana in 2019, to C$5.30 for recreational, and C$8.75 for medical, in 2021. (That's about an 18% increase in expected prices for recreational pot, and 10% for medical, in two years' time).
And yet, with pot production ramping all across Canada, you'd ordinarily expect prices to fall as supplies increase, not rise, right? But that's not what the analyst is predicting!
In order for this to make sense, it seems likely the analyst is hoping Hexo will shift to processing and selling more value-added cannabis derivatives over time -- at higher prices, earning fatter profits. If, however, Hexo is prevented from processing all the marijuana it would like to, into these higher value-added products it wants to sell, then logically Hexo would be forced to sell more of the marijuana being produced at "89" as simple dried flower -- and at lower prices, with smaller profits.
When you think about the dynamics this way, Chen's decision to keep Hexo stock rated only "market perform" makes a lot of sense -- at least, until the uncertainty surrounding Belleville is resolved.
To read more on the nitty gritty of what’s going on in the rising cannabis industry,click here.
Read more on HEXO:
• A HEXO Bear Says the Stock Has More Room to Fall
• Should Cannabis Stock HEXO Be Bought on Weakness?
• Analyst Puts the “Hex” on Hexo Stock Ahead of Earnings
• Cannabis Stock Hexo Can Go a Bit Higher Here, but Caution Is Warranted
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BZH, PSMT & BE - Bronstein, Gewirtz & Grossman, LLC Class Action Reminder
NEW YORK NY / ACCESSWIRE / June 19, 2019 / Bronstein, Gewirtz & Grossman, LLC reminds investors that a class action lawsuit has been filed againstthe following publicly-traded companies. You can review a copy of the Complaints by visiting the links below or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss, you can request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. Beazer Homes USA, Inc. ( BZH ) Class Period: August 1, 2014 - May 2, 2019 Deadline: July 15, 2019 For more info: www.bgandg.com/bzh The complaint alleges throughout the Class Period, defendants made false and/or misleading statements regarding the Company's business, operational and compliance policies. Specifically the complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose the Registration Statement issued in connection with the IPO was materially false and misleading and failed to disclose material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading. The complaint continues to allege that Defendants failed to disclose the following adverse facts, which were known to Defendants or recklessly disregarded by them as follows: (1) Beazer Homes' California assets classified as land held for future development were deteriorating in value or improperly valuated; (2) the foregoing created a foreseeable risk of an eventual substantial impairment that would negatively impact the profitability of the Company; and (3) as a result, the Company's public statements were materially false and misleading at all relevant times. Story continues PriceSmart, Inc. (NASDAQ: PSMT) Class Period: October 26, 2017 and October 25, 2018 Deadline: July 22, 2019 For more info: www.bgandg.com/psmt The complaint alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company's omni-channel business strategy had failed to reach key operating goals; (2) the Company's South America distribution strategy had failed to realize key cost saving goals; (3) the Company had invested Trinidad and Tobago dollars into certificates of deposits with financial institutions; (4) these investments had been improperly classified as cash and cash equivalents; (5) the relevant corrections would materially impact financial statements; (6) there was a material weakness in the Company's internal controls over financial reporting; (7) increasing competition negatively impacted the Company's revenue and profitability; and (8) as a result, PriceSmart's public statements were materially false and misleading at all relevant times. Bloom Energy Corporation (BE) Class Period: Bloomsecurities pursuant or traceable to the Form S-1 Registration Statement and Prospectus (collectively, the "Registration Statement") issued in connection with Bloom Energy's July 2018 initial public stock offering (the "IPO" or "Offering") Deadline: July 29, 2019 For more info: www.bgandg.com/be The complaint alleges that the Registration Statement was materially misleading as it failed to disclose known events and trends that were severely affecting the Company's business and that made investment in Bloom significantly riskier than presented in the Registration Statement. Specifically, the complaint alleges that the Registration Statement failed to disclose that the Company was experiencing material construction delays. These construction delays would cause system deployments (or "acceptances" as Defendants referred to them) to fall significantly below even the low end of the Company's previously announced guidance. Contact: Bronstein, Gewirtz & Grossman, LLC Peretz Bronstein or Yael Hurwitz 212-697-6484 | info@bgandg.com SOURCE: Bronstein, Gewirtz & Grossman, LLC View source version on accesswire.com: https://www.accesswire.com/548919/BZH-PSMT-BE--Bronstein-Gewirtz-Grossman-LLC-Class-Action-Reminder |
Schwarzman, Never an Oxford Student, Gives School $188 Million
(Bloomberg) -- Stephen Schwarzman gave the University of Oxford its largest donation since at least the Renaissance, even though the Blackstone Group LP co-founder never studied there.
The 150 million pounds ($188 million) contribution will help pay for a new humanities building and the creation of an institute to study the ethics of artificial intelligence, Oxford said in a statement. The Schwarzman Centre will be within the Radcliffe Observatory Quarter, just north of the city center, and will feature a 500-seat concert hall and 250-seat auditorium.
The ethics institute “won’t just use the humanities, which are an unusual asset of Oxford,” Schwarzman said in a Bloomberg TV interview Wednesday. “We’ll use the other major parts of the university. If you can bring all that to bear, we’ll have better outcomes.”
The private equity billionaire studied at Yale University and then got an MBA from Harvard Business School. He emerged as a major philanthropist in 2008 with a $100 million gift to the New York Public Library. In October, he gave $350 million to help establish a college of computing at the Massachusetts Institute of Technology. His name also will be on a campus center at Yale, and he created the Schwarzman Scholars program at Tsinghua University in Beijing to educate future global leaders about China.
Fundraising Efforts
The size of the donation is unusual for U.K. universities, whose fundraising efforts trail their counterparts in the U.S. When hedge fund manager David Harding gave 100 million pounds to Cambridge University in February, it was at the time the biggest single private gift to a U.K. college from a British philanthropist. The nation’s universities have collectively received about $1 billion a year on average from donors since 2007, according to data compiled by Bloomberg.
Schwarzman’s gift exceeds the 75 million pounds that British venture capitalist Michael Moritz donated to Oxford in 2012. Microsoft Corp. co-founder Bill Gates and his wife, Melinda, hold the title for the biggest private donation to a U.K. university after giving $210 million to Cambridge in 2001 to fund a scholarship program.
Schwarzman, 72, is worth $15.2 billion, according to the Bloomberg Billionaires Index. Since founding Blackstone in 1985 with former Lehman Brothers Holdings Inc. boss Peter Peterson, he’s collected more than $5 billion alone from a combination of stock sales, dividends and compensation. Blackstone had more than $500 billion of assets under management at the end of March, according to its website.
Oxford History
Teaching in Oxford dates back to at least 1096, according to the university’s website. It was formally recognized by the early 13th century and has educated 27 British prime ministers, including Theresa May and her potential successor Boris Johnson. Oxford has an endowment fund with almost 3.5 billion pounds of assets under management.
The donation is designed to also launch a fundraising campaign. Schwarzman said Brexit won’t affect the work his gift is intended to foster.
“Things in the short term are not nearly as important as what we’re trying to do in the long term,” he said. “From my perspective on this gift, what’s important is we set up the right structure for 100 years, 200 years.”
--With assistance from Francine Lacqua.
To contact the reporters on this story: Ben Stupples in London at bstupples@bloomberg.net;Heather Perlberg in Washington at hperlberg@bloomberg.net
To contact the editors responsible for this story: Pierre Paulden at ppaulden@bloomberg.net, Patrick Henry, Steven Crabill
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
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