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Is Evolution Petroleum Corporation (NYSEMKT:EPM) Trading At A 37% Discount?
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How far off is Evolution Petroleum Corporation (NYSEMKT:EPM) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to today's 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. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model.
See our latest analysis for Evolution Petroleum
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": "$16.60", "2020": "$16.70", "2021": "$18.40", "2022": "$19.87", "2023": "$21.14", "2024": "$22.26", "2025": "$23.27", "2026": "$24.20", "2027": "$25.07", "2028": "$25.91"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x1", "2020": "Analyst x1", "2021": "Est @ 10.21%", "2022": "Est @ 7.96%", "2023": "Est @ 6.39%", "2024": "Est @ 5.29%", "2025": "Est @ 4.53%", "2026": "Est @ 3.99%", "2027": "Est @ 3.61%", "2028": "Est @ 3.35%"}, {"": "Present Value ($, Millions) Discounted @ 8.33%", "2019": "$15.32", "2020": "$14.23", "2021": "$14.48", "2022": "$14.43", "2023": "$14.17", "2024": "$13.77", "2025": "$13.29", "2026": "$12.75", "2027": "$12.20", "2028": "$11.64"}]
Present Value of 10-year Cash Flow (PVCF)= $136.26m
"Est" = FCF growth rate estimated by Simply Wall St
After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (2.7%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.3%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$26m × (1 + 2.7%) ÷ (8.3% – 2.7%) = US$475m
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$475m ÷ ( 1 + 8.3%)10= $213.29m
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $349.55m. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of $10.59. Relative to the current share price of $6.67, the company appears quite undervalued at a 37% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.
We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Evolution Petroleum as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.3%, which is based on a levered beta of 0.940. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Whilst important, DCF calculation shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Evolution Petroleum, I've compiled three additional factors you should look at:
1. Financial Health: Does EPM 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 EPM'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 EPM? 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. |
Sanofi plans 466 job cuts as part of R&D reshuffle
PARIS (Reuters) - Sanofi on Wednesday said a reorganization of its research and development operation in Germany and France would result in 466 job cuts in the two countries.
In an emailed statement, a spokesman with the French drugmaker said the reshuffle aimed at enabling Sanofi to concentrate its research efforts in cancer, immunology, rare diseases and vaccines.
The company would end new research efforts in cardiology, the spokesman added, solely keeping existing research programs.
The 466 job cuts are to be implemented on a voluntary basis, Sanofi said. The company currently employs 15,000 in R&D worldwide out of a total staffing of more than 100,000.
(Reporting by Matthias Blamont; Editing by Leigh Thomas) |
Southwest boosts guidance, Dish close to major deal, CBS may get back together with Viacom: Companies to watch
Here are the companies Yahoo Finance is watching today.
Southwest Airlines(LUV) is raising its guidance, even as the grounding of those Boeing 737 Max jets weighs on capacity. It now expects revenue per seat mile to rise between 6.5% and 7.5% this quarter. However, it's removing all Max flights through September 2 because the timeline for those jets returning to the air remains uncertain.
Another name has emerged as the potential buyer of some assets fromSprint(S) andT-Mobile(TMUS).Dish Network(DISH) is reportedly close to a $6 billion dollar deal to buy Boost mobile and some wireless spectrum from the two carriers. It's part of an agreement with the U.S. Justice Department to clear a Sprint-T-Mobile merger.
CBS(CBS) andViacom(VIA) could again be getting back together. The Wall Street Journal said the companies have had preliminary talks about a merger, and CBS is preparing to make an offer in the coming weeks. Both are controlled by Sumner Redstone's National Amusements. If this sounds familiar, Viacom bought CBS back in 2000, before they were split up in 2006.
PG&E(PCG) just agreed to a $1 billion dollar deal to compensate more than a dozen California cities for the losses caused by their equipment during the deadly wildfires. The company estimates it could face more than $30 billion dollars in costs for the fires in 2017 and 2018. The agreement is the first major settlement for PG&E since it sought bankruptcy protection earlier this year.
You can now play video games inside yourTesla's(TSLA). The automaker just debuted Tesla Arcade — a game hub found across its line of electric cars. One of the games included is Vector Unit's “Beach Buggy Racing 2,” which is available on Android phones and tablets, and uses the car’s steering wheel as a controller while in park. |
Tired of treading softly, Turkey's Erdogan back on election warpath
* Erdogan resumes confrontationl style ahead of Istanbul vote * Turkish president had kept low profile ahead of mayoral election * Strategy risks alienating voters who dislike polarizing rhetoric By Orhan Coskun, Humeyra Pamuk and Jonathan Spicer ANKARA/ISTANBUL, June 19 (Reuters) - Turkish President Tayyip Erdogan has gone on the warpath against the main opposition days ahead of a re-run of a mayoral vote in Istanbul, scrapping plans to avoid divisive rhetoric that some officials in his ruling AK Party believed would alienate voters. Standing atop a bus in Istanbul on Tuesday, Erdogan claimed the opposition's mayoral candidate Ekrem Imamoglu aligned with coup plotters, without presenting evidence, and later warned of unspecified actors targeting Turkey's independence. After weeks of keeping an uncharacteristically low profile, the president re-inserted himself into the campaign with his usual confrontational style. The switch is a risk for Erdogan and the AK Party (AKP), which suffered a shock defeat in Istanbul in March local elections – a loss that some in his party believed was in part due to the president's uncompromising style. The loss marked one of his biggest setbacks in 16 years in power, and the AKP challenged the result. According to interviews with five party officials, as well as their advisers, Erdogan and his party had decided in recent weeks to effectively air-brush the president from the campaign ahead of the June 23 Istanbul vote, including erasing his face from highway-side billboards and cancelling dozens of planned rallies across the city. AKP officials had concluded that Erdogan's uncompromising approach had become a liability with some key voters in Istanbul, especially Kurds and AKP supporters who were turned off by his polarizing rhetoric, the party insiders said. By laying low, Erdogan also could have distanced himself in the event of another defeat, advisers added. But things changed earlier this week with internal party polling showing Imamoglu slightly ahead, prompting Ergodan to intervene, according to two of the people. In recent days, "Erdogan had asked party officials if it is possible to arrange a meeting or a rally to make a speech every day in Istanbul" ahead of the vote, a senior AKP official said. "That's the new strategy." Defeat on Sunday for Erdogan's hand-picked mayoral candidate, former prime minister Binali Yildirim, would serve as a further embarrassment for the president after the AKP succeeded in annulling the March result. It would also weaken what only three months ago appeared to be his iron grip on power as Turkey battles recession, jockeys in war-torn Syria, and balances its U.S. and Russian ties. It may embolden challengers to his rule, although it wouldn't immediately affect the balance of power in Ankara. An AKP spokesman declined to comment on the shifting strategy. In public appearances in recent days, Erdogan urged supporters to help him rally voters this weekend. "We can't hand our Istanbul to these liars," Erdogan said in a speech on Tuesday, referring to the main opposition Republican People's Party (CHP) and its mayoral candidate Imamoglu. Imamoglu has denied any links with the coup plotters. "I know things will be said," Imamoglu said in an interview with state broadcaster TRT Haber late Tuesday. He added: "These attacks are the attacks of those who cannot digest that we are ready for the task." STRATEGY 'BACKFIRED' Erdogan, the country's most dominant political figure since the modern Turkish state's founder Mustafa Kemal Ataturk, launched his own career in Istanbul and had served as its mayor. The AKP and its Islamist predecessors had for 25 years controlled the city, which has a budget of close to $4 billion and accounts for a third of the country's economic output. Ahead of Turkey's local elections in March, Erdogan held up to eight rallies a day addressing thousands of voters and millions more on live television. He delivered tough nationalist messages, asking voters to support the AKP as "a matter of survival." "The Erdogan campaign strategy backfired, especially among Kurds and middle-class conservatives," in part because of his polarizing rhetoric said Galip Dalay, a visiting scholar at the University of Oxford. After Erdogan's Istanbul mayoral candidate Yildirim lost by some 13,000 votes, the AKP complained that the election was marred by irregularities. Last month, Turkey's High Election Board scheduled the re-run, a move that opponents said was politically influenced and heightened concerns about eroding rule of law and institutional independence. According to AKP officials and insiders, the party is targeting the 1.7 million voters who stayed home on March 31, particularly conservative Kurds and AKP supporters looking for more focus on fixing the country's stalled economy. "People who didn't vote and disenchanted voters, as well as Kurdish voters, will be a major factor," said one AKP official, who added that the party was looking to boost turnout from an already high 84 percent in March to 94 percent. The party had in recent weeks emphasized a face-to-face campaign in areas that had relatively low overall turnout and high Kurdish populations, officials say. That included bringing several elderly Kurdish leaders from the country's southeast to the city to build support in small neighborhood gatherings, sources close to the pro-Kurdish Peoples' Democratic Party (HDP) told Reuters. But a return to a prominent role for Erdogan in the campaign in the past few days followed fresh polling data and a debate on Sunday between the two mayoral candidates. Imamoglu, who won the March vote, was gaining momentum, according to figures published Monday by polling firm Mak Danismanlik. Internal polls from the two leading parties showed the CHP candidate enjoying a narrow lead over the AKP's Yildirim as of last week. "Erdogan looked at the internal polls and saw that Yildirim still lagged behind, so he decided to go all in," said one source close to the party with knowledge of the recent polling. "But it could have the opposite impact on voters and push them away." COURTING KURDS In Istanbul's working-class Esenyurt district, where turnout was low in March and the CHP ousted the AKP, resident Halil Cetin said Erdogan should step back. "This survival rhetoric was too much at the center and people were annoyed by this, saying 'This is a municipal vote, what kind of a survival issue could there be?'" said Cetin, originally from Turkey's predominantly Kurdish Diyarbakir region. Yildirim "resonates," he added. Among the overtures the AKP has made to Kurds in recent weeks was lifting a years-long ban on lawyers visiting jailed Kurdish militant leader Abdullah Ocalan, a move that prompted several Kurdish lawmakers and thousands of prison inmates to end hunger strikes. But such gestures were unlikely to make a meaningful impact on Kurdish voters, said HDP Group Chairman Saruhan Oluc. "These little acts have no chance of creating a positive response," he said in an interview. The economy remains another key challenge for AKP and Erdogan, who have seen support hurt by last year's currency crisis that tipped Turkey's economy into recession, devalued the lira by 30% and sent inflation soaring. "The economy is problematic. The voters are heavily influenced by the developments in the economy and we see the impact of that by them not going to the ballot box," the senior AKP official said. (Additional reporting by Ali Kucukgocmen in Istanbul and Ece Toksabay and Tuvan Gumrukcu in Ankara; Editing by Jonathan Spicer and Cassell Bryan-Low) |
4 Burning Questions for the Owners of Alibaba Stock
In May,Alibaba(NYSE:BABA) reported what appeared to be blowout earnings. The report topped expectations by a mile, but it did nothing for Alibaba stock. BABA stock price barely advanced following the earnings release, and it is still down 9% over the last three months.
Source: Shutterstock
What’s going on? Surely, some of the struggles of Alibaba stock are related to the trade war. The longer it drags on, the more the Chinese economy will continue to slump. But Alibaba faces some unique issues of its own, namely that people are increasingly questioning the company’s accounting. BABA is now trying to sell more stock to the public, while its short interest has ballooned to 9% of its available shares. That’s a massive number for a company of its size.
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The shorts have been encouraged by the internet posts of a person who claims to be a financial professionalThese posts, made under the name Deep Throat IPO,contain allegations about Alibaba’s accounting, leading many investors to conclude that BABA can’t be trusted.
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For last quarter, Alibaba reported a huge jump in its net income. In fact, on both a GAAP and non-GAAP basis, Alibaba crushed analysts’ average expectation. It reported non-GAAP earnings per share for the quarter of $1.28 against the consensus outlook of just 95 cents. Meanwhile, its GAAP EPS of $1.47 absolutely annihilated analyst estimates of just 51 cents per share.
What explains the huge disparity? Most of Alibaba’s reported profits for the quarter came from marking up the value of its investments rather than from its operating businesses. For the quarter, its reported net income soared 252% year-over-year to $3.5 billion. However, its actual profits from its operating businesswent down5% to just $1.3 billion, though it would have posted a modest gain if it hadn’t had to pay a lawsuit settlement.
Still, its worth asking what’s going on. Alibaba reports phenomenal revenue growth rates, yet its core retail profits are essentially flat. And its much-touted cloud and digital media divisions continue to lose money. Take out the increased profits from its investments – which doesn’t mean much unless BABA can turn that paper into actual cash in the future – and BABA stock is absurdly expensive compared to its actual cash earnings.
There’s long been a great deal of dispute over whether Alibaba and other Chinese retailers inflate their GMVs (Gross Merchandise Volume). The SEC probed Alibaba’s sales reporting a few years ago, and investorshave made allegations aboutother Chinese firms likePinDuoDuo(NASDAQ:PDD) inflating their revenue.
In the case of Alibaba, the numbers get more and more questionable as time goes on. Alibaba claims its GMV has soared more than tenfold from 2012 to today, with that figure jumping from $80 billion then to more than $800 billion now. For comparison sake, that’s more thanWalmart(NYSE:WMT) andAmazon(NASDAQ:AMZN) handle annually combined! You might say that Alibaba’s business could be that big because China is so huge. Remember, though, that Walmart is a leading retailer in 25 countries and Amazon has a huge overseas businesses as well. It strains credibility to believe that Alibaba is larger than Walmart and Amazon put together.
There’s also the matter of how much each company generates per employee. That is a common check for fraud, and Alibaba comes out looking rather peculiar. Deep Throat IPO puts it well:
The other ratio I find fascinating is GMV per employee. Walmart’s GMV per employee is $284,000. Amazon’s is $428,000. Alibaba’s is $8,366,000 per employee. They are truly masters at doing more with less.
Is it realistic for Alibaba’s employees to be 20 times more efficient than Amazon’s? If you own BABA stock, you better hope so.
Supposedly, Alibaba’s Ant Financial, a digital payments facilitator, is worth $150 billion, which would make up around a third of the overall $400 billion market cap of Alibaba stock. In fact, Ant Financial was valued at $150 billion when itraised moneylast year. However, there is reason to be skeptical about that valuation. Specifically, it scrapped plans for an IPO last year, and it was supposed to launch an IPO this year, but the offering appears to be delayed again.
Meanwhile, Ant Financial, which is supposed to be such a dominant global payments player, doesn’t appear to be doing so well. Last year, Alibaba, which has a profit-sharing agreement with Ant Financial, did not receive any distributions from Ant because Ant didn’t make any profits. This past quarter, however, Alibaba earned $77 million from Ant Financial. $77 million seems like a pittance, given Ant Financial’s supposed $150 billion valuation. Perfectly normal.
For all of Alibaba’s purported profits, the company keeps needing more money. There’s probably good reason for that, since most of its “profits” don;t come in the form of cash while it is investing money in a nearly endless list of start-ups both in China and overseas. As mentioned above, Ant Financial did a big fundraising push last year, and now Alibaba is trying to unload a cool $20 billion of its stock in a secondary offering in Hong Kong.
All this brings up the trade war and the weakening yuan. The yuan is near seven per dollar, its lowest level in years, and pressure appears to be growing for a major devaluation of the currency. What happens to Alibaba’s ability to raise more money to keep its investing carousel spinning if China’s capital markets freeze up? Also, the valuations of all these nascent businesses Alibaba has invested in will implode if the IPO window shuts down for these sorts of firms.
It’s been interesting watching Alibaba andJD.com(NASDAQ:JD) over the past year or two. As the Chinese economy has slowed, many of China’s retailers have seen their growth rates sharply drop. JD, for example, has gone from 50% annual growth to just 20% recently. Alibaba’s growth rate, however, appears totally unaffected by the deepening Chinese malaise. It keeps pumping out 50% annual revenue growth, rain or shine. Does Alibaba have a special sauce that keeps it immune to economic weakness?
So far, BABA stock has been a winner. But how long can it keep up? Alibaba already claims to be larger than Amazon and Walmart put together. If the numbers are real, surely BABA will run out of people to sell to fairly soon; there are, after all, limits to a company’s growth once it dominates a market. And if the numbers aren’t real…
At the time of this writing, Ian Bezek owned JD.com stock. You can reach him on Twitter at @irbezek.
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The post4 Burning Questions for the Owners of Alibaba Stockappeared first onInvestorPlace. |
Have Insiders Been Selling New York Mortgage Trust, Inc. (NASDAQ:NYMT) Shares?
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We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sellNew York Mortgage Trust, Inc.(NASDAQ:NYMT), 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.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
Check out our latest analysis for New York Mortgage Trust
Over the last year, we can see that the biggest insider sale was by the Lead Director, Alan Hainey, for US$63k worth of shares, at about US$6.27 per share. That means that even when the share price was slightly below the current price of US$6.31, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 6.5% of Alan Hainey's holding. The only individual insider seller over the last year was Alan Hainey.
You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that New York Mortgage Trust insiders own 0.7% of the company, worth about US$8.7m. We do generally prefer see higher levels of insider ownership.
An insider hasn't bought New York Mortgage Trust stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we're not rushing to buy, to say the least. Of course,the future is what matters most. So if you are interested in New York Mortgage Trust, you should check out thisfreereport on analyst forecasts for the company.
But note:New York Mortgage Trust may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Renault CEO Bollore has no plans to reduce Nissan stake
By Munsif Vengattil
NEW DELHI (Reuters) - Cutting its stake in alliance partner Nissan is not on Renault's agenda, the French carmaker's chief executive Thierry Bollore said on Wednesday after a global vehicle launch in New Delhi.
Renault and Fiat Chrysler (FCA) are looking for ways to resuscitate a failed merger plan and secure Nissan's approval, Reuters reported this month.
As part of the fallout of the collapse of talks, Nissan is poised to urge Renault to significantly cut its 43.4% stake in the Japanese carmaker, two people told Reuters.
"This is not at all our agenda," Bollore told reporters in New Delhi on Wednesday when asked if Renault would reduce its stake in Nissan to get a deal with FCA.
"For us it is so important that we continuously improve our alliance. Not only for now, but also for the future and this is the mindset which we are in, and these are the discussions we have with our partners," Bollore said after the global launch of Renault's Triber multi-purpose vehicle.
Bollore said the alliance partners planned to meet in early July and while he declined to disclose the agenda, he added that it would be "massive".
The 20-year-old partnership between Nissan and Renault has been strained since the alliance's former chairman Carlos Ghosn was arrested for suspected financial misconduct in November. Ghosn denies any wrongdoing.
The alliance was plunged further into crisis this month as Renault's demand for a greater say in Nissan's governance drew rare public censure by the Japanese automaker.
Nissan is due to hold a shareholder meeting to vote on its overhauled governance structure on June 25. Bollore said Renault would participate, but the talks were private.
Renault and FCA were in $35 billion merger talks until the Italian-American carmaker withdrew after the French government, Renault's biggest shareholder, blocked a vote by its board and demanded more time to win Nissan's backing.
Bollore said there is no offer from FCA on the table and declined to comment on the role of the French government.
(Reporting by Munsif Vengattil; Writing by Aditi Shah; Editing by Alexander Smith) |
Brits to miss out on £64bn by choosing not to have summer jobs
Retail assistant is the job Brits most see themselves in this summer. Photo: Blake Wisz/Unsplash Brits stand to miss out on over £64bn ($80.8bn) of income by passing up summer jobs this year, new research shows. A survey of over 2,000 people by Gumtree found just a third (34%) of Brits are planning to get a summer job this year. According to ONS figures, Brits earn an average of £1,832 from each summer job meaning £33.7bn is being made across the UK from seasonal opportunities. READ MORE: Here are some smart ways to invest the money from your first summer job However, two thirds (66%) of people said they have decided not to work meaning they could be missing out on a collective £64.3bn. Just a quarter of Brits said they recognise the long-term benefits of a summer job, with 26% agreeing it equips them with excellent life skills, and 8% planning on having more than one role this season. The study also revealed Brits top 10 dream summer jobs with working on an animal conservation project (23%) and being a pet or house sitter (21%) topping the list of most sought-after roles. READ MORE: The teenage summer jobs that shaped leaders David Attenboroughs Our Planet appears to have inspired the nation, as working as a tropical island care taker (21%) and working on a safari (20%) also made the list. But the job Brits most likely see themselves working in this season is a retail assistant or a volunteer. Almost one in five (19%) Brits who is planning on working this summer said they expect to be in a shop or volunteering. READ MORE: Why that summer job won't hurt your financial aid Another 18% said they will probably take up dog-walking, while 13% plan to get a job as a member of hospitality staff. And just a third (34%) of Brits plan to save their seasonal earnings, with most spending the money on clothes (29%) food and drink (27%) or and holidays (23%), while a quarter need it for rent. |
Here is What Hedge Funds Think About Marriott Vacations Worldwide Corporation (VAC)
Hedge funds run by legendary names like George Soros and David Tepper make billions of dollars a year for themselves and their super-rich accredited investors (you’ve got to have a minimum of $1 million liquid to invest in a hedge fund) by spending enormous resources on analyzing and uncovering data about small-cap stocks that the big brokerage houses don’t follow. Small caps are where they can generate significant outperformance. That's why we pay special attention to hedge fund activity in these stocks.
Hedge fund interest inMarriott Vacations Worldwide Corporation (NYSE:VAC)shares was flat at the end of last quarter. This is usually a negative indicator. 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 J2 Global Inc (NASDAQ:JCOM), Ryman Hospitality Properties, Inc. (NYSE:RHP), and Taro Pharmaceutical Industries Ltd. (NYSE:TARO) to gather more data points.
To most stock holders, hedge funds are perceived as slow, old investment tools of years past. While there are greater than 8000 funds trading at present, We choose to focus on the aristocrats of this club, about 750 funds. These money managers administer most of the smart money's total capital, and by following their inimitable investments, Insider Monkey has uncovered a number of investment strategies that have historically exceeded Mr. Market. Insider Monkey's flagship hedge fund strategy surpassed the S&P 500 index by around 5 percentage points annually since its inception in May 2014 through the end of May. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 30.9% since February 2017 (through May 30th) even though the market was up nearly 24% during the same period. We just shared a list of 5 short targets in ourlatest quarterly updateand they are already down an average of 11.9% in less than a couple of weeks whereas our long picks outperformed the market by 2 percentage points in this volatile 2 week period.
We're going to take a look at the new hedge fund action regarding Marriott Vacations Worldwide Corporation (NYSE:VAC).
Heading into the second quarter of 2019, a total of 26 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards VAC 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.
Among these funds,Rima Senvest Managementheld the most valuable stake in Marriott Vacations Worldwide Corporation (NYSE:VAC), which was worth $181.7 million at the end of the first quarter. On the second spot was Nantahala Capital Management which amassed $57.3 million worth of shares. Moreover, Waratah Capital Advisors, Newbrook Capital Advisors, and Point72 Asset Management were also bullish on Marriott Vacations Worldwide Corporation (NYSE:VAC), allocating a large percentage of their portfolios to this stock.
Seeing as Marriott Vacations Worldwide Corporation (NYSE:VAC) has experienced bearish sentiment from the entirety of the hedge funds we track, we can see that there is a sect of funds who sold off their full holdings by the end of the third quarter. Intriguingly, John Khoury'sLong Pond Capitalsaid goodbye to the biggest position of all the hedgies monitored by Insider Monkey, comprising about $15.1 million in call options. Jeffrey Pierce's fund,Snow Park Capital Partners, also dumped its call options, about $4.4 million worth. These transactions are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as Marriott Vacations Worldwide Corporation (NYSE:VAC) but similarly valued. We will take a look at J2 Global Inc (NASDAQ:JCOM), Ryman Hospitality Properties, Inc. (NYSE:RHP), Taro Pharmaceutical Industries Ltd. (NYSE:TARO), and The Goodyear Tire & Rubber Company (NASDAQ:GT). This group of stocks' market valuations are similar to VAC's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position JCOM,22,264086,5 RHP,18,477090,0 TARO,10,74462,2 GT,19,348140,-11 Average,17.25,290945,-1 [/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 $291 million. That figure was $400 million in VAC's case. J2 Global Inc (NASDAQ:JCOM) is the most popular stock in this table. On the other hand Taro Pharmaceutical Industries Ltd. (NYSE:TARO) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Marriott Vacations Worldwide Corporation (NYSE:VAC) 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. Hedge funds were also right about betting on VAC, though not to the same extent, as the stock returned -1% during the same period and outperformed the market as well.
Disclosure: None. This article was originally published atInsider Monkey.
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Hedge Funds Have Never Been This Bullish On Emcor Group Inc (EME)
Most investors tend to think that hedge funds and other asset managers are worthless, as they cannot beat even simple index fund portfolios. In fact, most people expect hedge funds to compete with and outperform the bull market that we have witnessed in recent years. However, hedge funds are generally partially hedged and aim at delivering attractive risk-adjusted returns rather than following the ups and downs of equity markets hoping that they will outperform the broader market. Our research shows that certain hedge funds do have great stock picking skills (and we can identify these hedge funds in advance pretty accurately), so let’s take a glance at the smart money sentiment towards Emcor Group Inc (NYSE:EME).
Emcor Group Inc (NYSE:EME)was in 26 hedge funds' portfolios at the end of the first quarter of 2019. EME investors should be aware of an increase in hedge fund interest recently. There were 18 hedge funds in our database with EME positions at the end of the previous quarter. Our calculations also showed that eme 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 peek at the key hedge fund action encompassing Emcor Group Inc (NYSE:EME).
Heading into the second quarter of 2019, a total of 26 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 44% from one quarter earlier. By comparison, 22 hedge funds held shares or bullish call options in EME a year ago. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically,AQR Capital Managementwas the largest shareholder of Emcor Group Inc (NYSE:EME), with a stake worth $56.3 million reported as of the end of March. Trailing AQR Capital Management was GLG Partners, which amassed a stake valued at $48.2 million. Carlson Capital, Citadel Investment Group, and ACK Asset Management were also very fond of the stock, giving the stock large weights in their portfolios.
As industrywide interest jumped, key money managers were leading the bulls' herd.ACK Asset Management, managed by Richard S. Meisenberg, created the most outsized position in Emcor Group Inc (NYSE:EME). ACK Asset Management had $15.9 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell'sArrowstreet Capitalalso made a $11.8 million investment in the stock during the quarter. The other funds with brand new EME positions are Joel Greenblatt'sGotham Asset Management, Dmitry Balyasny'sBalyasny Asset Management, and Minhua Zhang'sWeld Capital Management.
Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Emcor Group Inc (NYSE:EME) but similarly valued. We will take a look at Rayonier Inc. (NYSE:RYN), Eastgroup Properties Inc (NYSE:EGP), Tribune Media Company (NYSE:TRCO), and LogMeIn Inc (NASDAQ:LOGM). This group of stocks' market values are closest to EME's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position RYN,14,318375,-5 EGP,7,31107,0 TRCO,28,1320785,-12 LOGM,27,483334,-1 Average,19,538400,-4.5 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $538 million. That figure was $249 million in EME's case. Tribune Media Company (NYSE:TRCO) is the most popular stock in this table. On the other hand Eastgroup Properties Inc (NYSE:EGP) is the least popular one with only 7 bullish hedge fund positions. Emcor Group Inc (NYSE:EME) 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 EME as the stock returned 11.5% 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 Amedisys Inc (AMED)
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 Amedisys Inc (NASDAQ:AMED) based on that data.
IsAmedisys Inc (NASDAQ:AMED)a splendid stock to buy now? Hedge funds are becoming less confident. The number of bullish hedge fund positions fell by 6 in recent months. Our calculations also showed that amed 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.
[caption id="attachment_745225" align="aligncenter" width="473"]
Noam Gottesman, GLG Partners[/caption]
We're going to check out the recent hedge fund action surrounding Amedisys Inc (NASDAQ:AMED).
Heading into the second quarter of 2019, a total of 26 of the hedge funds tracked by Insider Monkey were long this stock, a change of -19% from one quarter earlier. By comparison, 14 hedge funds held shares or bullish call options in AMED a year ago. With the smart money's sentiment swirling, there exists a select group of noteworthy hedge fund managers who were adding to their holdings considerably (or already accumulated large positions).
The largest stake in Amedisys Inc (NASDAQ:AMED) was held byD E Shaw, which reported holding $45.7 million worth of stock at the end of March. It was followed by Citadel Investment Group with a $43.8 million position. Other investors bullish on the company included GLG Partners, Two Sigma Advisors, and Millennium Management.
Due to the fact that Amedisys Inc (NASDAQ:AMED) has witnessed falling interest from the aggregate hedge fund industry, we can see that there lies a certain "tier" of funds that slashed their full holdings last quarter. Intriguingly, Benjamin A. Smith'sLaurion Capital Managementcut the largest stake of the "upper crust" of funds monitored by Insider Monkey, worth an estimated $31 million in call options. Matthew Hulsizer's fund,PEAK6 Capital Management, also dumped its call options, about $3.5 million worth. These transactions are interesting, as total hedge fund interest was cut by 6 funds last quarter.
Let's now review hedge fund activity in other stocks similar to Amedisys Inc (NASDAQ:AMED). We will take a look at IBERIABANK Corporation (NASDAQ:IBKC), Agios Pharmaceuticals Inc (NASDAQ:AGIO), Teladoc Health, Inc. (NYSE:TDOC), and CoreSite Realty Corp (NYSE:COR). This group of stocks' market valuations match AMED's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position IBKC,26,194750,2 AGIO,22,316343,5 TDOC,17,166690,-2 COR,13,226074,-2 Average,19.5,225964,0.75 [/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 $226 million. That figure was $296 million in AMED's case. IBERIABANK Corporation (NASDAQ:IBKC) is the most popular stock in this table. On the other hand CoreSite Realty Corp (NYSE:COR) is the least popular one with only 13 bullish hedge fund positions. Amedisys Inc (NASDAQ:AMED) 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 AMED wasn't nearly as popular as these 20 stocks and hedge funds that were betting on AMED were disappointed as the stock returned -8.9% 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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Rita Ora cancels headline performance at Secret Solstice Festival
Rita Ora has been forced to cancel her appearance at the Secret Solstice Festival in Iceland (Photo by Lyvans Boolaky/imageSPACE/MediaPunch) /IPX Rita Ora has been forced to cancel her appearance as the headline act at the Secret Solstice Festival. The singer was due to perform at the event in Reykjavík, Iceland, but has had to pull out due to ill health. Announcing the bad news on her official Facebook page, Ora explained that a re-occurring chest infection was the reason for her absence from the music festival. Read more: Krept and Konan: drill music is being scapegoated In a heartfelt post, she said: “I'm very sad to have to let all those attending the Solstice in Iceland know that I'm not going to be able to headline as planned. “I've been struggling with a re-occurring chest infection and have been advised by my Doctors to take time out to recover.” Revealing how heartbroken she is by the cancellation, Ora continued: “I was so excited to spend time in Iceland and be part of this festival. I never take any cancellation lightly as I'm always hugely grateful for all the opportunities I have to perform as I love performing. “I'm especially disappointed and heartbroken when it means letting down my wonderful fans.” She concluded the post by promising that she would be at the event next year. “I'm so sorry to not be there! I love you all and thank you for your support. I look forward to celebrating Solstice 2020 with you!” The singer broke the news to her fans on her official Facebook page (Photo: Rita Ora/Facebook) Fans were quick to send their get well wishes to the star. “Get well soon Rita. It is important to take the doctors advice on things like this,” wrote one concerned fan. Read more: Isle of Wight festival bans Jess Glynne for life after last-minute cancellation Whilst another commented on the social media site: “Get well soon love, rest rest rest and plenty more rest.” “Get well Rita. We all are human and understand that,” a third user posted underneath her announcement. It is not known who will replace Ora as the headline act. However, festival goers can still expect to see performances from acts including Jonas Blue, Black Eyed Peas and Robert Plant and the Sensational Spaceshifters. |
Here’s What Hedge Funds Think About Tegna Inc (TGNA)
At Insider Monkey, we pore over the filings of nearly 750 top investment firms every quarter, a process we have now completed for the latest reporting period. The data we've gathered as a result gives us access to a wealth of collective knowledge based on these firms' portfolio holdings as of March 31. In this article, we will use that wealth of knowledge to determine whether or not Tegna Inc (NYSE:TGNA) makes for a good investment right now.
IsTegna Inc (NYSE:TGNA)a buy here? The best stock pickers are getting more bullish. The number of bullish hedge fund positions moved up by 4 recently. Our calculations also showed that tgna isn't among the30 most popular stocks among hedge funds.
To most traders, hedge funds are viewed as unimportant, outdated investment vehicles of years past. While there are greater than 8000 funds in operation today, We look at the elite of this group, around 750 funds. These hedge fund managers have their hands on bulk of the smart money's total capital, and by shadowing their finest investments, Insider Monkey has found numerous investment strategies that have historically outpaced the broader indices. Insider Monkey's flagship hedge fund strategy outrun the S&P 500 index by around 5 percentage points annually since its inception in May 2014 through the end of May. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 30.9% since February 2017 (through May 30th) even though the market was up nearly 24% during the same period. We just shared a list of 5 short targets in ourlatest quarterly updateand they are already down an average of 11.9% in less than a couple of weeks whereas our long picks outperformed the market by 2 percentage points in this volatile 2 week period.
Let's check out the key hedge fund action regarding Tegna Inc (NYSE:TGNA).
At the end of the first quarter, a total of 26 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 18% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards TGNA over the last 15 quarters. With the smart money's capital changing hands, there exists a select group of key hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).
The largest stake in Tegna Inc (NYSE:TGNA) was held byAQR Capital Management, which reported holding $131.8 million worth of stock at the end of March. It was followed by Ariel Investments with a $97.7 million position. Other investors bullish on the company included Diamond Hill Capital, Cove Street Capital, and Arrowstreet Capital.
As aggregate interest increased, key hedge funds have jumped into Tegna Inc (NYSE:TGNA) headfirst.Renaissance Technologies, managed by Jim Simons, created the largest position in Tegna Inc (NYSE:TGNA). Renaissance Technologies had $23.2 million invested in the company at the end of the quarter. Jamie Zimmerman'sLitespeed Managementalso made a $6.2 million investment in the stock during the quarter. The following funds were also among the new TGNA investors: Mario Gabelli'sGAMCO Investors, David Harding'sWinton Capital Management, and Matthew Tewksbury'sStevens Capital Management.
Let's now take a look at hedge fund activity in other stocks similar to Tegna Inc (NYSE:TGNA). These stocks are Boyd Gaming Corporation (NYSE:BYD), Moog Inc (NYSE:MOG), Kennametal Inc. (NYSE:KMT), and Q2 Holdings Inc (NYSE:QTWO). This group of stocks' market values are closest to TGNA's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position BYD,28,404116,-2 MOG,17,90968,4 KMT,20,271144,-1 QTWO,15,67077,3 Average,20,208326,1 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $208 million. That figure was $470 million in TGNA's case. Boyd Gaming Corporation (NYSE:BYD) is the most popular stock in this table. On the other hand Q2 Holdings Inc (NYSE:QTWO) is the least popular one with only 15 bullish hedge fund positions. Tegna Inc (NYSE:TGNA) 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 TGNA as the stock returned 9.3% 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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Is Global Blood Therapeutics Inc (GBT) A Good Stock To Buy?
Before we spend countless hours researching a company, we'd like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors' consensus returns have been exceptional. In the following paragraphs, we find out what the billionaire investors and hedge funds think of Global Blood Therapeutics Inc (NASDAQ:GBT).
Global Blood Therapeutics Inc (NASDAQ:GBT)investors should be aware of an increase in hedge fund interest in recent months.GBTwas in 26 hedge funds' portfolios at the end of March. There were 25 hedge funds in our database with GBT positions at the end of the previous quarter. Our calculations also showed that gbt 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 peek at the latest hedge fund action surrounding Global Blood Therapeutics Inc (NASDAQ:GBT).
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 4% from the fourth quarter of 2018. The graph below displays the number of hedge funds with bullish position in GBT over the last 15 quarters. So, let's review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
When looking at the institutional investors followed by Insider Monkey,Perceptive Advisors, managed by Joseph Edelman, holds the number one position in Global Blood Therapeutics Inc (NASDAQ:GBT). Perceptive Advisors has a $292.5 million position in the stock, comprising 8.3% of its 13F portfolio. The second most bullish fund manager isCamber Capital Management, managed by Stephen DuBois, which holds a $95.3 million position; the fund has 4.7% of its 13F portfolio invested in the stock. Other members of the smart money that hold long positions comprise Thomas Steyer'sFarallon Capital, Jeffrey Jay and David Kroin'sGreat Point Partnersand Behzad Aghazadeh'svenBio Select Advisor.
As one would reasonably expect, key hedge funds have jumped into Global Blood Therapeutics Inc (NASDAQ:GBT) headfirst.Brookside Capital, managed by Bain Capital, established the most outsized position in Global Blood Therapeutics Inc (NASDAQ:GBT). Brookside Capital had $9.3 million invested in the company at the end of the quarter. Noam Gottesman'sGLG Partnersalso made a $2.1 million investment in the stock during the quarter. The other funds with brand new GBT positions are Gavin Saitowitz and Cisco J. del Valle'sSpringbok Capital, Philip Hempleman'sArdsley Partners, and Michael S. Weiss and Lindsay A. Rosenwald'sOpus Point Partners Management.
Let's also examine hedge fund activity in other stocks similar to Global Blood Therapeutics Inc (NASDAQ:GBT). We will take a look at Cedar Fair, L.P. (NYSE:FUN), Exponent, Inc. (NASDAQ:EXPO), CommVault Systems, Inc. (NASDAQ:CVLT), and Tenet Healthcare Corp (NYSE:THC). All of these stocks' market caps match GBT's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position FUN,8,56848,-2 EXPO,18,111457,2 CVLT,29,390000,6 THC,24,916260,-11 Average,19.75,368641,-1.25 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 19.75 hedge funds with bullish positions and the average amount invested in these stocks was $369 million. That figure was $730 million in GBT's case. CommVault Systems, Inc. (NASDAQ:CVLT) is the most popular stock in this table. On the other hand Cedar Fair, L.P. (NYSE:FUN) is the least popular one with only 8 bullish hedge fund positions. Global Blood Therapeutics Inc (NASDAQ:GBT) 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 GBT as the stock returned 17.3% 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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Hedge Funds Have Never Been This Bullish On HMS Holdings Corp. (HMSY)
A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended March 31, so let’s proceed with the discussion of the hedge fund sentiment on HMS Holdings Corp. (NASDAQ:HMSY).
IsHMS Holdings Corp. (NASDAQ:HMSY)a bargain? Money managers are getting more bullish. The number of bullish hedge fund positions moved up by 4 lately. Our calculations also showed that hmsy isn't among the30 most popular stocks among hedge funds.HMSYwas in 26 hedge funds' portfolios at the end of the first quarter of 2019. There were 22 hedge funds in our database with HMSY holdings at the end of the previous quarter.
In today’s marketplace there are several indicators stock traders use to value their holdings. Two of the most useful indicators are hedge fund and insider trading moves. We have shown that, historically, those who follow the best picks of the elite investment managers can trounce the market by a healthy margin (see the details here).
Let's analyze the key hedge fund action encompassing HMS Holdings Corp. (NASDAQ:HMSY).
Heading into the second quarter of 2019, a total of 26 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 18% from the fourth quarter of 2018. On the other hand, there were a total of 11 hedge funds with a bullish position in HMSY a year ago. With hedgies' positions undergoing their usual ebb and flow, there exists an "upper tier" of key hedge fund managers who were upping their holdings considerably (or already accumulated large positions).
The largest stake in HMS Holdings Corp. (NASDAQ:HMSY) was held byD E Shaw, which reported holding $32.9 million worth of stock at the end of March. It was followed by Citadel Investment Group with a $26.6 million position. Other investors bullish on the company included Renaissance Technologies, Point72 Asset Management, and AQR Capital Management.
With a general bullishness amongst the heavyweights, key hedge funds have been driving this bullishness.PEAK6 Capital Management, managed by Matthew Hulsizer, initiated the most valuable position in HMS Holdings Corp. (NASDAQ:HMSY). PEAK6 Capital Management had $0.9 million invested in the company at the end of the quarter. Ronald Hua'sQtron Investmentsalso initiated a $0.5 million position during the quarter. The other funds with new positions in the stock are Louis Navellier'sNavellier & Associates, Michael Platt and William Reeves'sBlueCrest Capital Mgmt., and Jeffrey Talpins'sElement Capital Management.
Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as HMS Holdings Corp. (NASDAQ:HMSY) but similarly valued. We will take a look at Cogent Communications Holdings, Inc. (NASDAQ:CCOI), Switch, Inc. (NYSE:SWCH), John Wiley & Sons Inc (NYSE:JW), and Kosmos Energy Ltd (NYSE:KOS). This group of stocks' market values match HMSY's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CCOI,19,264412,2 SWCH,16,175891,2 JW,17,77690,0 KOS,18,118384,4 Average,17.5,159094,2 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 17.5 hedge funds with bullish positions and the average amount invested in these stocks was $159 million. That figure was $179 million in HMSY's case. Cogent Communications Holdings, Inc. (NASDAQ:CCOI) is the most popular stock in this table. On the other hand Switch, Inc. (NYSE:SWCH) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks HMS Holdings Corp. (NASDAQ:HMSY) 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. Hedge funds were also right about betting on HMSY as the stock returned 4% during the same period and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
Disclosure: None. This article was originally published atInsider Monkey.
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Here’s What Hedge Funds Think About Huntington Bancshares Incorporated (HBAN)
Is Huntington Bancshares Incorporated (NASDAQ:HBAN) a good equity to bet on right now? We like to check what the smart money thinks first before doing extensive research. Although there have been several high profile failed hedge fund picks, the consensus picks among hedge fund investors have historically outperformed the market after adjusting for known risk attributes. It's not surprising given that hedge funds have access to better information and more resources to predict the winners in the stock market.
Hedge fund interest inHuntington Bancshares Incorporated (NASDAQ:HBAN)shares was flat at the end of last quarter. This is usually a negative indicator. At the end of this article we will also compare HBAN to other stocks including WPP plc (NYSE:WPP), STMicroelectronics N.V. (NYSE:STM), and The J.M. Smucker Company (NYSE:SJM) to get a better sense of its popularity.
Why do we pay any attention at all to hedge fund sentiment? 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.
We're going to analyze the key hedge fund action surrounding Huntington Bancshares Incorporated (NASDAQ:HBAN).
Heading into the second quarter of 2019, a total of 28 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from one quarter earlier. By comparison, 33 hedge funds held shares or bullish call options in HBAN a year ago. With the smart money's positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were upping their stakes significantly (or already accumulated large positions).
Among these funds,Balyasny Asset Managementheld the most valuable stake in Huntington Bancshares Incorporated (NASDAQ:HBAN), which was worth $33.1 million at the end of the first quarter. On the second spot was White Elm Capital which amassed $15.7 million worth of shares. Moreover, Stelliam Investment Management, GLG Partners, and EJF Capital were also bullish on Huntington Bancshares Incorporated (NASDAQ:HBAN), allocating a large percentage of their portfolios to this stock.
Seeing as Huntington Bancshares Incorporated (NASDAQ:HBAN) has witnessed a decline in interest from hedge fund managers, it's easy to see that there is a sect of funds who were dropping their positions entirely by the end of the third quarter. At the top of the heap, Israel Englander'sMillennium Managementcut the largest position of all the hedgies monitored by Insider Monkey, worth close to $12 million in stock. Peter Rathjens, Bruce Clarke and John Campbell's fund,Arrowstreet Capital, also said goodbye to its stock, about $6.2 million worth. These bearish behaviors are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let's check out hedge fund activity in other stocks similar to Huntington Bancshares Incorporated (NASDAQ:HBAN). These stocks are WPP plc (NYSE:WPP), STMicroelectronics N.V. (NYSE:STM), The J.M. Smucker Company (NYSE:SJM), and Telecom Italia S.p.A. (NYSE:TI). This group of stocks' market values are similar to HBAN's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position WPP,11,52078,0 STM,14,120394,3 SJM,26,574357,6 TI,1,4809,-2 Average,13,187910,1.75 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $188 million. That figure was $100 million in HBAN's case. The J.M. Smucker Company (NYSE:SJM) is the most popular stock in this table. On the other hand Telecom Italia S.p.A. (NYSE:TI) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks Huntington Bancshares Incorporated (NASDAQ:HBAN) 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. Hedge funds were also right about betting on HBAN as the stock returned 2.1% during the same period and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
Disclosure: None. This article was originally published atInsider Monkey.
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Is Apache Corporation (APA) A Good Stock To Buy?
We at Insider Monkey have gone over 738 13F filings that hedge funds and famous value 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 investors think of Apache Corporation (NYSE:APA).
Apache Corporation (NYSE:APA)shareholders have witnessed a decrease in hedge fund interest lately.APAwas in 28 hedge funds' portfolios at the end of the first quarter of 2019. There were 29 hedge funds in our database with APA holdings at the end of the previous quarter. Our calculations also showed that apa 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.
We're going to review the latest hedge fund action encompassing Apache Corporation (NYSE:APA).
At Q1's end, a total of 28 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -3% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards APA over the last 15 quarters. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey,Orbis Investment Management, managed by William B. Gray, holds the largest position in Apache Corporation (NYSE:APA). Orbis Investment Management has a $502.3 million position in the stock, comprising 3.4% of its 13F portfolio. On Orbis Investment Management's heels isTwo Sigma Advisors, managed by John Overdeck and David Siegel, which holds a $37.8 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining members of the smart money that hold long positions consist of Ken Griffin'sCitadel Investment Group, D. E. Shaw'sD E Shawand Brandon Haley'sHolocene Advisors.
Judging by the fact that Apache Corporation (NYSE:APA) has faced declining sentiment from hedge fund managers, we can see that there were a few money managers that slashed their entire stakes by the end of the third quarter. At the top of the heap, Steve Cohen'sPoint72 Asset Managementcut the biggest stake of all the hedgies tracked by Insider Monkey, worth close to $26.8 million in stock. Matthew Tewksbury's fund,Stevens Capital Management, also said goodbye to its stock, about $4.8 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest dropped by 1 funds by the end of the third quarter.
Let's also examine hedge fund activity in other stocks similar to Apache Corporation (NYSE:APA). We will take a look at Arch Capital Group Ltd. (NASDAQ:ACGL), W.P. Carey Inc. (NYSE:WPC), Extra Space Storage, Inc. (NYSE:EXR), and Teck Resources Ltd (NYSE:TECK). This group of stocks' market caps resemble APA's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ACGL,12,1100250,-1 WPC,13,55062,3 EXR,17,162191,-7 TECK,27,1078134,1 Average,17.25,598909,-1 [/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 $599 million. That figure was $616 million in APA's case. Teck Resources Ltd (NYSE:TECK) is the most popular stock in this table. On the other hand Arch Capital Group Ltd. (NASDAQ:ACGL) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Apache Corporation (NYSE:APA) 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 APA wasn't nearly as popular as these 20 stocks and hedge funds that were betting on APA were disappointed as the stock returned -24% 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 Akamai Technologies, Inc. (AKAM)
The 700+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the first quarter, which unveil their equity positions as of March 31. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Akamai Technologies, Inc. (NASDAQ:AKAM).
Akamai Technologies, Inc. (NASDAQ:AKAM)investors should pay attention to a decrease in enthusiasm from smart money of late.AKAMwas in 28 hedge funds' portfolios at the end of the first quarter of 2019. There were 34 hedge funds in our database with AKAM positions at the end of the previous quarter. Our calculations also showed that akam 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_745225" align="aligncenter" width="473"]
Noam Gottesman, GLG Partners[/caption]
We're going to take a peek at the recent hedge fund action regarding Akamai Technologies, Inc. (NASDAQ:AKAM).
Heading into the second quarter of 2019, a total of 28 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -18% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in AKAM 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 increasing their holdings substantially (or already accumulated large positions).
The largest stake in Akamai Technologies, Inc. (NASDAQ:AKAM) was held byAQR Capital Management, which reported holding $314 million worth of stock at the end of March. It was followed by GLG Partners with a $59.7 million position. Other investors bullish on the company included D E Shaw, Renaissance Technologies, and Millennium Management.
Because Akamai Technologies, Inc. (NASDAQ:AKAM) has faced bearish sentiment from the entirety of the hedge funds we track, logic holds that there exists a select few hedge funds that decided to sell off their positions entirely in the third quarter. Interestingly, Paul Singer'sElliott Managementcut the largest position of all the hedgies monitored by Insider Monkey, worth an estimated $145.6 million in stock, and Howard Marks's Oaktree Capital Management was right behind this move, as the fund said goodbye to about $68.7 million worth. These transactions are important to note, as total hedge fund interest was cut by 6 funds in the third quarter.
Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Akamai Technologies, Inc. (NASDAQ:AKAM) but similarly valued. These stocks are Molson Coors Brewing Company (NYSE:TAP), Brookfield Infrastructure Partners L.P. (NYSE:BIP), Comerica Incorporated (NYSE:CMA), and Masco Corporation (NYSE:MAS). This group of stocks' market valuations are closest to AKAM's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position TAP,27,317583,-1 BIP,7,28125,-1 CMA,36,579378,0 MAS,40,1105245,6 Average,27.5,507583,1 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 27.5 hedge funds with bullish positions and the average amount invested in these stocks was $508 million. That figure was $764 million in AKAM's case. Masco Corporation (NYSE:MAS) is the most popular stock in this table. On the other hand Brookfield Infrastructure Partners L.P. (NYSE:BIP) is the least popular one with only 7 bullish hedge fund positions. Akamai Technologies, Inc. (NASDAQ:AKAM) 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 AKAM as the stock returned 7.1% 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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Hedge Funds Have Never Been This Bullish On Teledyne Technologies Incorporated (TDY)
It was a rough fourth quarter for many hedge funds, which were naturally unable to overcome the big dip in the broad market, as the S&P 500 fell by about 4.8% during 2018 and average hedge fund losing about 1%. The Russell 2000, composed of smaller companies, performed even worse, trailing the S&P by more than 6 percentage points, as investors fled less-known quantities for safe havens. Luckily hedge funds were shifting their holdings into large-cap stocks. The 20 most popular hedge fund stocks actually generated an average return of 18.7% so far in 2019 and outperformed the S&P 500 ETF by 6.6 percentage points. We are done processing the latest 13f filings and in this article we will study how hedge fund sentiment towards Teledyne Technologies Incorporated (NYSE:TDY) changed during the first quarter.
IsTeledyne Technologies Incorporated (NYSE:TDY)an exceptional investment right now? Investors who are in the know are taking a bullish view. The number of bullish hedge fund positions increased by 8 recently. Our calculations also showed that tdy isn't among the30 most popular stocks among hedge funds.
If you'd ask most stock holders, hedge funds are seen as underperforming, old investment tools of years past. While there are over 8000 funds in operation at the moment, Our experts hone in on the upper echelon of this club, about 750 funds. Most estimates calculate that this group of people manage the lion's share of the hedge fund industry's total asset base, and by following their inimitable investments, Insider Monkey has found many investment strategies that have historically outrun the market. Insider Monkey's flagship hedge fund strategy outperformed the S&P 500 index by around 5 percentage points annually since its inception in May 2014 through the end of May. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 30.9% since February 2017 (through May 30th) even though the market was up nearly 24% during the same period. We just shared a list of 5 short targets in ourlatest quarterly updateand they are already down an average of 11.9% in less than a couple of weeks whereas our long picks outperformed the market by 2 percentage points in this volatile 2 week period.
Let's take a look at the new hedge fund action surrounding Teledyne Technologies Incorporated (NYSE:TDY).
At the end of the first quarter, a total of 28 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 40% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards TDY over the last 15 quarters. With hedgies' positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).
More specifically,AQR Capital Managementwas the largest shareholder of Teledyne Technologies Incorporated (NYSE:TDY), with a stake worth $158.8 million reported as of the end of March. Trailing AQR Capital Management was Cardinal Capital, which amassed a stake valued at $89.6 million. Fisher Asset Management, Select Equity Group, and Scopus Asset Management were also very fond of the stock, giving the stock large weights in their portfolios.
As one would reasonably expect, key money managers have been driving this bullishness.Citadel Investment Group, managed by Ken Griffin, assembled the biggest position in Teledyne Technologies Incorporated (NYSE:TDY). Citadel Investment Group had $19.7 million invested in the company at the end of the quarter. Ken Grossman and Glen Schneider'sSG Capital Managementalso initiated a $19.4 million position during the quarter. The other funds with new positions in the stock are Michael Platt and William Reeves'sBlueCrest Capital Mgmt., Ben Levine, Andrew Manuel and Stefan Renold'sLMR Partners, and Noam Gottesman'sGLG Partners.
Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Teledyne Technologies Incorporated (NYSE:TDY) but similarly valued. We will take a look at Pearson PLC (NYSE:PSO), Allegion plc (NYSE:ALLE), Tata Motors Limited (NYSE:TTM), and Sarepta Therapeutics Inc (NASDAQ:SRPT). This group of stocks' market valuations resemble TDY's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position PSO,4,13571,-1 ALLE,21,496364,-4 TTM,12,115269,3 SRPT,44,1207021,3 Average,20.25,458056,0.25 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 20.25 hedge funds with bullish positions and the average amount invested in these stocks was $458 million. That figure was $597 million in TDY's case. Sarepta Therapeutics Inc (NASDAQ:SRPT) is the most popular stock in this table. On the other hand Pearson PLC (NYSE:PSO) is the least popular one with only 4 bullish hedge fund positions. Teledyne Technologies Incorporated (NYSE:TDY) 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 TDY, though not to the same extent, as the stock returned 0% during the same time frame and outperformed the market as well.
Disclosure: None. This article was originally published atInsider Monkey.
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The Zacks Analyst Blog Highlights: Chart Industries, Dover, Flowserve, AZZ and Manitowoc
For Immediate Release
Chicago, IL – June 19, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog includeChart Industries Inc.GTLS,Dover Corp.DOV,Flowserve Corp.FLS,AZZ Inc.AZZ andThe Manitowoc Co Inc.MTW.
Here are highlights from Tuesday’s Analyst Blog:
5 Top Picks on Strong Industrial Production
U.S. industrial production recorded its highest gain in May since December 2018. Most importantly, U.S. manufacturing output registered its first monthly gain of 2019. A strong and broad-based gain in U.S. factory output provided some respite to concern that the manufacturing sector is cooling in the face of a lingering trade war with China and slowdown in the global economy.
Moreover, capacity utilization edged up in overall industrial production and the manufacturing sector, indicating higher industrial activities. At this stage, it will be prudent to invest in manufacturing stocks with a favorable Zacks Rank and strong growth potential.
Robust Industrial Production Data in May
On Jun 14, the Federal Reserve reported that U.S. industrial production increased by 0.4% in May, highest in six months. The figure was also above the consensus estimate of growth of 0.2%. In April, industrial production contracted by 0.4%. Industrial Production rose 2% year over year in May.
Across the board, all major market groups, such as, consumer goods, business equipment, nonindustrial supplies, construction and materials rose 0.5%, 0.2%, 0.4%, 0.2% and 0.3%, respectively. Sector wise, manufacturing, mining and utilities grew 0.2%, 0.1% and 2.1%, respectively.
Overall capacity utilization was 78.1% in May compared with 77.9% in April. However, capacity utilization is still 1.7% below the average figure of 79.8% for the 1972-2018 period. This indicates that a solid ground for growth of industrial production still exists without affecting inflation. This is a key metric for the Fed to consider while taking decisions on interest rate.
Manufacturing Output Returns to Growth Trajectory
The most-important inference from the industrial production data of May is the rebound of U.S. manufacturing sector. This sector registered growth of 0.2%, marking its first monthly gain in 2019. In January and February, U.S. manufacturing declined by 0.6%. In March, this sector remained unchanged only to decline again in April by 0.5%.
In May, solid 2.4% growth of motor vehicles and parts more than offset 1.9% decline in primary metals and 0.1% drop in fabricated metals. Light truck assemblies increased to 8.43 million from 7.84 million in April. Auto assemblies grew to 2.56 million from 2.44 million in April. Capacity utilization of manufacturing sector also edged up to 75.7% from 75.6% in the previous month. However, the figure still 2.6% behind its average 78.3% for the period 1972-2018.
Notably, the manufacturing sector constituted nearly 12% of U.S. GDP. A weak ISM manufacturing index for May and tepid industrial production data of China in May, which fell to its 17-year low level, compelled several economists to consider that manufacturing activities are slowing globally, which is affecting U.S. industrial products. However, the industrial production data for May eased the concerns to some extent.
Our Top Picks
Considering the above-mentioned factors, we narrowed down our search to five manufacturing stocks with a strong growth potential. Each of these stocks carry either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can seethe complete list of today's Zacks #1 Rank stocks here.
The chart below shows price performance of our five picks year to date.
Chart Industries Inc.manufactures and sells engineered equipment and packaged solutions and provides value-add services for the energy and industrial gas industries worldwide. It sports a Zacks Rank #1. The company has expected earnings growth rate of 51.5% for the current year. The Zacks Consensus Estimate for the current year has improved 3.7% over the last 60 days.
Dover Corp.provides equipment and components, specialty systems, consumable supplies, software and digital solutions, and support services worldwide. It carries a Zacks Rank #2. The company has expected earnings growth rate of 16.9% for the current year. The Zacks Consensus Estimate for the current year has improved 1% over the last 60 days.
Flowserve Corp.designs, develops, manufactures, distributes, and services industrial flow management equipment in the United States, Europe, the Middle East, Africa, Asia and internationally. It carries a Zacks Rank #2. The company has expected earnings growth rate of 25.1% for the current year. The Zacks Consensus Estimate for the current year has improved 2.3% over the last 60 days.
AZZ Inc.provides galvanizing and metal coating services, welding solutions, specialty electrical equipment and highly engineered services to the power generation, transmission, distribution, refining and industrial markets. It has a Zacks Rank #2. The company has expected earnings growth rate of 32.1% for the current year. The Zacks Consensus Estimate for the current year has improved 2.8% over the last 60 days.
The Manitowoc Co Inc.provides engineered lifting equipment for the construction industry in the Americas, Europe, Africa, the Middle East, and the Asia Pacific. It has a Zacks Rank #2. The company has an expected earnings growth rate of 117.2% for the current year. The Zacks Consensus Estimate for the current year has improved 6.1% over the last 60 days.
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Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAZZ Inc. (AZZ) : Free Stock Analysis ReportThe Manitowoc Company, Inc. (MTW) : Free Stock Analysis ReportFlowserve Corporation (FLS) : Free Stock Analysis ReportChart Industries, Inc. (GTLS) : Free Stock Analysis ReportDover Corporation (DOV) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
18,000 pieces of balloon waste found in Great Lakes: 'When you let go of a balloon, you're littering'
Pregnancies. Births. Birthdays. Graduations. Anniversaries. Promotions. Retirements. Even deaths. Balloons are used to decorate, celebrate or commemorate almost every major life event. But there's a growing awareness that balloons released to the sky come down to Earth , somewhere, as litter, 100% of the time. And that litter, in addition to polluting the environment, can be deadly to animals that eat the balloons or get tangled in them. Volunteer trash pickups found more than 18,000 balloons, balloon pieces or balloon strings along Great Lakes shorelines between 2016 and last year. That's according to surveys from such events sponsored by environmental nonprofit Alliance for the Great Lakes. Heightened understanding of problems tied to balloon litter has led five states to limit or ban intentional releases. At least eight others are considering restrictions. Those who release thousands of balloons for a visual spectacle have come under particular fire: Clemson University, in 2018, after years of urging from environmental groups, agreed to stop its long-standing release of thousands of balloons as its football team took the field for home games. IMS photographer Chris Jones stands on the top of the media center as the balloons are released behind him before the start of the Indianapolis 500 at Indianapolis Motor Speedway on Sunday, May 26, 2019. A master's student at the University of Michigan wants to better understand the scope of the problem on the Great Lakes, and raise awareness about the issue at locations where large numbers of balloons are sometimes released. Lara O'Brien, who studies in the university's School for Environment and Sustainability, created a web survey form for volunteer citizen-scientists to report balloon debris findings along the Great Lakes: when, where and what kind of debris. "I've seen a lot of people come together, gather and celebrate graduations, weddings, other celebrations, and they release balloons — and don't really consider the consequences when the balloons come down," she said. O'Brien cited a March study from the University of Tasmania that found balloons are the highest-risk plastic debris item for seabirds — 32 times more likely to kill them than ingesting hard plastics. Story continues 'We can do better': 10 tons of trash left on Virginia beach after weekend event The Alliance for the Great Lakes' shoreline cleanup program has found between 4,400 and 7,200 pieces of balloon waste on Great Lakes beaches each of the last three years — and the variation in the numbers can likely be attributed to the number of volunteers in a certain year, not less balloon waste, said Alliance spokeswoman Jennifer Caddick. "It's really dramatic and troubling," she said. "It paints a picture of the bigger plastic pollution problem plaguing the Great Lakes, our oceans, and really the entire planet." As winds generally blow west-to-east across the U.S., balloon litter is a particularly chronic issue on the Atlantic coast. "It's a huge problem — washed-up balloons on the beach are huge," said Pamela Denmon, a U.S. Fish and Wildlife Service biologist at the Eastern Shore of Virginia National Wildlife Refuge, on Chesapeake Bay in Cape Charles, Virginia. "Every day we could go out and pick up balloons. We actually have people that write on balloons their phone number because they want somebody to call when they find it." Christina Trapani, a beach cleanup volunteer at the refuge, has helped track balloon waste in Virginia. One balloon found in Chesapeake Bay was marked as coming from Kansas, about 1,400 miles away, and was still partially inflated, she said. In December 2012, an elementary school class in Derby, England, released 300 balloons with notes. The balloons were found in The Netherlands, Denmark — and one made it to New South Wales, Australia, more than 10,500 miles away , three months later. "People don't think about it as being litter," Trapani said. "(But) if it goes up, it's going to come down sooner or later." And if it comes down in or along an ocean, it can look like food to a seabird, a sea turtle, dolphin or other marine animal. "We would do a necropsy on a bird or turtle or other marine mammal and it would have entangled balloon ribbon all throughout its guts," Denmon said. She also has encountered dead seabirds, hanging from power lines or choked around the neck by balloon strings. Air pollution deaths: Corn farming causes '4,300 premature deaths' each year, study finds Balloon restrictions are still rare Only five U.S. states have laws regulating the intentional release of balloons: California, Connecticut, Florida, Tennessee and Virginia. At least eight other state legislatures are considering such laws: Arizona, Connecticut, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island and Maine. A number of cities also have ordinances against intentional balloon releases, including San Francisco, Baltimore and Louisville, Kentucky. While those actions are helpful, the nature of balloons limits how effective restrictions can be, Trapani said. "There might be balloon bans in some places and not in others," she said. "But it doesn't matter when you release it — they can end up in these places." Danielle Vosburgh and her sister, Chelsea, on their frequent walks along the beach near their home in southeast Florida, kept finding balloons. Online research led them to learn about balloons' harm to wildlife. It also led them to comments from the balloon industry referencing "biodegradable" and "safe" balloons. The sisters formed the environmental nonprofit Balloons Blow , "just to put the facts out there because a lot of the information out there was coming from the balloon industry, pushing their 'biodegradable' propaganda," Danielle Vosburgh said. While many balloon types will ultimately break down, the degradation process can take months or even years, meaning the risk to animals remains for all that time. On Balloons Blow's website, the sisters have a "backyard biodegradability test," where they placed two latex balloons that washed up on the shore in 2012. More than five years later, the broken down balloons are still visible — and their ribbons are in great shape, photos show. "They are almost 7½ years old now," Danielle Vosburgh said. "They are breaking down a little bit, but they're still here." Balloons Blow also works with other organizations to get large-scale balloon releases stopped. Clemson University, in 2018, ended a 35-year tradition of releasing thousands of balloons as its football players entered their stadium for home games. One of the remaining big balloon-releasing events in the country is in Balloons Blow's and others' sights: The Indianapolis 500, which, since 1947, has included a "Balloon Spectacle," where up to 40,000 colorful balloons are released to the sky before the race. "Hopefully, when people become aware, they will want to become part of the solution, whether it's illegal or not," Vosburgh said. "Do we really need laws to be responsible citizens?" Cruise line pollution: Carnival pleads guilty to pollution, violations and is fined $20M Don't demonize balloons, industry says The balloon industry squirms a little whenever a state or city talks about banning balloons. The Balloon Council, a Trenton, New Jersey-based organization of balloon retailers, distributors and manufacturers, has spent more than $1 million nationwide lobbying to change or stop proposed laws to restrict balloons. "We've never supported or sponsored any balloon releases," council executive director Lorna O'Hara said. "We want people to continue to be able to use balloons, enjoy them, and then dispose of them properly." O'Hara says her group is "not opposing balloon release bans, but we would prefer educational programs," encouraging actions such as putting all helium-filled balloons on weights and using biodegradable strings, or no attachments at all. "When we oppose a bill, we might only oppose certain lines in the bill," she said. "We're concerned about the negative stigma associated with the product. Bans on the sale and use side, we oppose that, because we have a lot of small operators — decorators, a lot of women-owned, family-owned small businesses — that would really be harmed." Trapani said she's encouraged that the word is getting out on balloon litter, and behaviors are changing. "The bottom line is, when you let go of a balloon, you're littering," she said. "You wouldn't dump a bunch of uninflated balloons on the ground." Follow Keith Matheny on Twitter: @keithmatheny Mountains, too: Blown by the wind, 'microplastic' pollution discovered on pristine peaks This article originally appeared on Detroit Free Press: 18,000 pieces of balloon waste found in Great Lakes: 'When you let go of a balloon, you're littering' |
Can We See Significant Insider Ownership On The Diversicare Healthcare Services, Inc. (NASDAQ:DVCR) Share Register?
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The big shareholder groups in Diversicare Healthcare Services, Inc. (NASDAQ:DVCR) have power over the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.
Diversicare Healthcare Services is not a large company by global standards. It has a market capitalization of US$17m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about DVCR.
Check out our latest analysis for Diversicare Healthcare Services
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
Diversicare Healthcare Services already has institutions on the share registry. Indeed, they own 26% 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 Diversicare Healthcare Services's historic earnings and revenue, below, but keep in mind there's always more to the story.
Our data indicates that hedge funds own 6.8% of Diversicare Healthcare Services. 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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
It seems insiders own a significant proportion of Diversicare Healthcare Services, Inc.. Insiders have a US$4.8m stake in this US$17m business. 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.
With a 22% ownership, the general public have some degree of sway over DVCR. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
It seems that Private Companies own 16%, of the DVCR stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow.
Of coursethis may not be the best stock to buy. So take a peek at thisfreefreelist of interesting companies.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Stock Market News: Southwest Sees More MAX Delays; Harley Heads to China
The stock market didn't make huge moves on Wednesday morning, as most investors had their eyes squarely focused on the Federal Reserve. The central bank's Federal Open Market Committee concludes a two-day meeting later today, and many expect that the Fed will either cut interest rates outright or signal its intent to do so in the near future. Pending final word, stocks generally treaded water. As of 10:45 a.m. EDT, theDow Jones Industrial Average(DJINDICES: ^DJI)was up 39 points to 26,504. TheS&P 500(SNPINDEX: ^GSPC)was unchanged at 2,918, while theNasdaq Composite(NASDAQINDEX: ^IXIC)fell 9 points to 7,944.
In company-specific news,Southwest Airlines(NYSE: LUV)lost some altitude in the wake of issuing new guidance for the coming months. Meanwhile,Harley-Davidson(NYSE: HOG)followed up on a controversial move that will take some of its new production into the Chinese market.
Shares of Southwest Airlines were down 1% after the airline made adjustments to its forecasts for the second quarter of 2019. The moves included some positive changes on the earnings front, but they also reflected realistic expectations about the likely fate of its fleet of 737 MAX aircraft.
Image source: Southwest Airlines.
Southwest's changes to its guidance on operating revenue per available seat mile were encouraging. The company raised the lower end of its range on that measure by a percentage point, expecting a solid 6.5% to 7.5% increase for the second quarter.
However, there will be some downward pressure on other financial results from the ongoing grounding of the 737 MAX. Southwest said that it has now extended its projections to account for its 34 MAX aircraft being out of operation through early September. That will result in less fuel-efficient operations, as well as lower overall capacity, with available seat miles to fall 3.5% versus prior projections of a 2% to 3% drop.
Southwest has worked hardto try to manage its flight schedule to deal with the lack of availability of the MAX model. Yet the longer the problems persist, the more difficult it'll be for the airline to keep its focus squarely on fostering long-term growth.
Harley-Davidson's stock moved higher by almost 1% as investors reacted to news that the iconic motorcycle manufacturer will make a strategic move that should result in more production happening overseas. The decision also highlights an interesting decision that the company has made with respect to its product line.
Harley announced that it will enter into a partnership with Chinese company Qianjiang Motorcycle, with the intent of providing smaller motorcycles to consumers in the fast-growing Chinese market. With an engine size that's barely half what many of its larger motorcycles in the U.S. market have, Harley's new entrant in China will fit better with the wide range of motorcycles and mopeds that compete for business in the world's most populous nation.
Harley has seen success in the Chinese market, but it's come at the cost ofpolitical controversy. The White House hasn't approved of the motorcycle giant's decision to move manufacturing capacity to serve foreign markets directly, as it arguably runs counter to the intent of its imposition of tariffs and other trade restrictions.
With motorcycle sales having been under pressure in its domestic market, Harley-Davidson's efforts to drum up business internationally make perfect sense. Harley fans might not like the idea of what they'd consider toy-sized bikes compared to the motorcycles that they ride, but they'll appreciate it if success overseas allows the company to keep building the vehicles they prefer.
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Dan Caplingerhas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Southwest Airlines. The Motley Fool has adisclosure policy. |
Better Buy: PepsiCo vs. Verizon
We're over 10 years into the current bull market, and while no one can predict when the next recession will occur, many investors, especially those nearing retirement, might be looking toward relatively "safe" dividend-paying stocks that will hold up in an economic downturn. Two such largelow-betanames areVerizon Communications(NYSE: VZ)andPepsiCo(NASDAQ: PEP).
Verizon is the nation's largest consumer mobile communications service provider, and it's often cited as having the best network. It operates in a U.S. oligopoly, alongside competitorsAT&T(NYSE: T),T-Mobile(NASDAQ: TMUS), andSprint(NYSE: S). Verizon also has smaller operations in wireline broadband and cable through its Fios segment and a small digital media arm called Oath, made up of past acquisitions Yahoo! and AOL. Still, Verizon's main profit center is overwhelmingly its consumer mobile services.
Meanwhile, PepsiCo is one of the world's largest packaged-food conglomerates. Though it's best known for its namesake soft drink, PepsiCo is much more diversified, to the extent that it garners a plurality of its operating profit from its Frito-Lay snack subsidiary. In addition, Pepsi has been aggressively innovating its drink portfolio away from sodas. It recently brought a new sparkling-water brand called Bubly to market, and it extended that market reach bybuying SodaStream, an Israeli-based producer of home carbonated beverage machines, last August for $3.2 billion.
So which looks like the better buy today?
Image source: Getty Images.
People usually buy large, stable, and relatively low-growth conglomerates like these two companies for safety and their dividends, so let's look at each company's payout:
PEP Dividend Yield (TTM)data byYCharts
Buying Verizon will get you a much bigger 4.2% annual payout, whereas PepsiCo's dividend yield stands at a lower, albeit decent, 2.8%. That said, Pepsi has traditionally grown its payout at a higher rate, last year boosting its dividend by 13.2%, compared with just 2.2% dividend growth for Verizon. PepsiCo also has more room to continue raising its dividend, with apayout ratiojust north of 40%, as opposed to Verizon's 61.5%.
Therefore, those looking for more dividends today may look toward Verizon, whereas those with a longer-term horizon and who would like more capital appreciation might opt for PepsiCo.
Both PepsiCo and Verizon are currently struggling for growth, but Verizon more so. New CEO Hans Vestburg, who took over the company in August 2018, set Verizon on a course ofcost-cuts and writedowns– an attempt to retrench and refocus the company on its core wireless operations.
Last quarter, Verizon grew its overall revenue by 1.1% and adjusted earnings per share by 2.6%. However, its most important consumer retail segment exhibited higher growth, with subscribers up 1.5% year over year, revenue up 3.7%, and adjusted EBITDA up 2.7%.
While Pepsi's growth looks similarly lackluster, Pepsi took a large hit from foreign currency headwinds, as it's much more of an overseas player than Verizon. So while the company reported only 2.6% revenue growth, currency and acquisition-adjusted "organic" revenue growth was a much better 5.2%, and "core organic" operating profit grew 10%.
While currency was a headwind last quarter, international markets are a potential growth engine for Pepsi, as these markets are less penetrated than the mature U.S. market. Last quarter, PepsiCo's Latin America, European, and Asian segments grew 10%, 8%, and 10%, respectively, adjusted for currency and acquisitions. Therefore, it appears Pepsi might have the better growth prospects.
On the other hand, Verizon is investing heavily in 5G networks, which will power many future applications and could very well lead to pricing growth for the telecom giant in the future. Nevertheless, the impact and timing of 5G growth is still unclear at this point and in fact mayunderperform expectations. So while Verizon may seem like a more exciting technology play, it still appears Pepsi has an easier path to growth, both organically, through bolt-on acquisitions like SodaStream, and through international markets.
It's a bit difficult to compare Pepsi and Verizon's valuations, as Pepsi traditionally garners a much higher consumer-staples multiple and currently trades at a high 24 times forward earnings. In contrast, Verizon's low forward P/E ratio of around 12 is indicative of its low-growth, capital-intensive business. So while Verizon is the "cheaper" of the two stocks, that has always been the case, and it hasn't stopped Pepsi from outperforming Verizon over the past three years.
PEP PE Ratio (Forward)data byYCharts
With its low growth but higher payout, Verizon is akin to a fixed-income equivalent, whereas Pepsi offers at least a modicum of growth and price appreciation. Therefore, unless you need the extra 140 basis points of yield, PepsiCo would be my pick.
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Billy Dubersteinowns shares of AT&T. His clients may own shares of the companies mentioned. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has adisclosure policy. |
Why your Avengers UHD Blu-rays aren’t actually 4K
Welcome to the latest episode of Upscaled, our explainer show where we look at the components and parts that make our favorite tech better. In this week, we're actually taking a step away from components to talk about 4K movies and TV.As companies push higher resolution screens and cameras, 4K resolution has become the standard for high-quality content. Distributors have also embraced high-resolution, with 4K streaming becoming more common on platforms like Netflix and Amazon, and Ultra HD Blu-Rays generally considered to be the best video quality you can get at home.
But despite these advances, an open secret of the film industry is that almost no film is really produced in true 4K. Even for movies and shows shot with 6K or 8K cinema cameras, nearly every finished film was edited at standard HD resolution, and then artificially enlarged to 4K. With all the buzz around high-res footage, why do filmmakers work this way, and should you even bother with 4K content? Watch the video to find out.
Upscaled is available in 4Kon YouTube. |
What You Must Know About Dril-Quip, Inc.'s (NYSE:DRQ) Beta Value
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Anyone researching Dril-Quip, Inc. (NYSE:DRQ) 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. First, we have company specific volatility, which is the price gyrations of an individual stock. Holding at least 8 stocks can reduce this kind of risk across a portfolio. The second 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. Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.
View our latest analysis for Dril-Quip
Looking at the last five years, Dril-Quip has a beta of 1.4. The fact that this is well above 1 indicates that its share price movements have shown sensitivity to overall market volatility. If this beta value holds true in the future, Dril-Quip shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. Beta is worth considering, but it's also important to consider whether Dril-Quip is growing earnings and revenue. You can take a look for yourself, below.
With a market capitalisation of US$1.6b, Dril-Quip is a small cap stock. However, it is big enough to catch the attention of professional investors. It is quite common to see a small-cap stock with a beta greater than one. In part, that's because relatively few investors can influence the price of a smaller company, compared to a large company.
Since Dril-Quip has a reasonably high beta, it's worth considering why it is so heavily influenced by broader market sentiment. For example, it might be a high growth stock or have a lot of operating leverage in its business model. In order to fully understand whether DRQ is a good investment for you, we also need to consider important company-specific fundamentals such as Dril-Quip’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 DRQ’s future growth? Take a look at ourfree research report of analyst consensusfor DRQ’s outlook.
2. Past Track Record: Has DRQ 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 DRQ's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how DRQ 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. |
Erik Voorhees thinks Libra may become the ‘whipping boy of crypto’
In a mammoth 20-post thread on Twitter, ShapeShift CEO Erik Voorhees celebrated the fact that the “biggest companies in the world are now launching cryptocurrencies”, but is concerned that Facebook’s new Libra coin will become the “whipping boy of cryptocurrency”. The exchange boss started out by stating that Libra may or may not be a cryptocurrency depending on the context. He said: “Relative to PayPal or to the US dollar, Libra is very much a cryptocurrency. Relative to Bitcoin or ZCash or DAI, Libra is not all that crypto-y.” 1/ Thoughts on Libra (and my first tweetstorm!): first, zoom out for a second and realize how far this industry has come. The biggest companies in the world are now launching cryptocurrencies. BOOM. — Erik Voorhees (@ErikVoorhees) June 18, 2019 Voorhees believes this shows that “digital assets and blockchains have *many* attributes – optimising for certain ones can detract from others”. He said: “Lots of blockchain projects will be created and played with while the world rebuilds the financial system upon this new technology. Different assets will serve different markets, at different times, in different ways. Libra will serve the mass market, and be the single largest bridge toward decentralised finance that has ever been built. Prior to this, the largest bridge was Coinbase, which has played an integral role in crypto’s rise.” The good Starting with the good aspects of the launch, Erik said one positive is that Libra is built on an actual blockchain, where most of the important components are open source and can be built on in a permissionless way. He went on to say that “Libra made the (great) decision to NOT back itself solely with USD”. According to Voorhees, this has profound implications as Libra could arguably become a “medium-term replacement to any single government fiat currency”. Story continues He lavished praise on whomever bravely navigated Facebook to create a currency above the US dollar, saying “kudos to you” as “that took balls, and probably a lot of work”. Voorhees believes Libra has the potential to go from “a little decentralised” on day one to “moderately decentralised” within a few years of launch. He thinks the plan is clearly to gradually decentralise with time, but that the proof would be “if they can actually do it”. “Libra has a good chance of helping hundreds of millions of people avoid middlemen fees and increase their wealth and financial sovereignty.” The bad Kicking off the negative side of Facebook’s launch, he wrote that Libra “is clearly not a pure cryptocurrency”, saying that “nobody should expect privacy by using it” and “nobody should expect the true borderless standard of most cryptos”. As an example, he predicted that the coin will never be allowed to be used in places like Iran. He believes the governing consortium may also have the power to “explicitly block/prevent txs” and that “you won’t find unstoppable finance here”. He reiterated that “traditional cryptos are far superior” and it is unthinkable that Facebook would create a truly unstoppable coin in its first phase. On the topic of its stability mechanism, Voorhees said that backing the coin with a basket of government fiat and government debt (bonds) is “a bad move” as “any currency based on fiat will fail relative to hard assets (Bitcoin, gold)”. “Politicians debase currency as their modus operandi, and thus if Libra maintains fiat backing, it will tend toward zero long term. BTC and ‘real’ cryptos will crush it long term.” He predicted that over the short/medium term, the relative stability derived by fiat/bond backing will enable Libra to capture market share and onboard literally hundreds of millions of people. However, he does think that long term, Libra “will be moving partially away from banks, and partially toward truly decentralised finance”. Whipping boy of crypto Voorhees believes that the social media giant’s native coin will come up against many of the legal/regulatory challenges that real cryptos and crypto companies do today. But on the positive side, he thinks Facebook “has the resources (and hopefully the balls) to fight some of the battles”. He added: “Libra may also become the whipping boy of cryptocurrency. As the politicians of the world get irate at having their fiat supremacy challenged, they will call on FB to answer for it. These struggles, playing out over the coming years, will be fascinating.” In a positive conclusion, he said that Libra has a chance of succeeding, and if Facebook is brave and tactical over many years, it may eventually move away from a fiat basket toward either a real basket of BTC and/or gold. He said: “Ultimately, Libra’s relationship with those of us in crypto will be mixed. It will be a love/hate relationship, and that’s okay. Libra is challenging the status quo of fiat more than it challenges true crypto, and will pull millions toward sound-er money long term.” “Anything that causes normal people to consider new forms of money (apart from their default position of ‘my nation, my currency’) is a good thing. Libra will crack open further global discussion about what money is, and that sunshine will hurt fiat and help all sound monies.” For more news, guides, and cryptocurrency analysis, click here . The post Erik Voorhees thinks Libra may become the ‘whipping boy of crypto’ appeared first on Coin Rivet . |
Income needed to afford a mortgage in 35 major US cities
If you don’t make $200,000 per year, you might have a hard time buying a home in San Francisco. A recent home affordability report from Unison, a homeownership investment company, analyzed the income would-be homeowners would need to earn in order to afford a mortgage in 35 major U.S. cities. A homeowner would need to make six figures to pay a mortgage on a home valued at the median price in San Francisco, San Jose, urban Honolulu, Los Angeles, San Diego, Seattle, Washington and New York City. Those income estimations were calculated to include funds you'd need to make a 20 percent down payment and pay a 4.45 percent interest rate or a 3.99 percent interest rate — the average annual Freddie Mac 30-year fixed rates for 2018 and 2017, respectively. On the flip side, a mortgage in some cities is much more affordable. Under the same conditions, a homeowner in Detroit would only need to earn $10,033 per year to afford the $251 monthly payment, which Unison’s report calculated assuming payments wouldn’t exceed 30 percent of a homebuyer’s gross income. Homebuyers in Milwaukee, Wichita, Indianapolis and Columbus, Ohio could also afford a mortgage with an income of less than $30,000, according to the report. It could take a homebuyer decades just to afford a down payment in the cities with the highest monthly payments, Unison said. For example, in San Francisco, where the median home value is more than $1 million, it would take someone earning the median income there 40 years to save a down payment. That same person would then need to earn $202,094 per year to make mortgage payments, assuming they put down 20 percent, according to the report. If that person put down a smaller down payment of 10 percent, they would need to earn $239,539. If they put down 5 percent, they would need to earn $252,846 in order to afford monthly payments. In Detroit, it would take someone earning the median income just seven years to save up a 20 percent down payment under the same conditions, according to the report. Story continues Despite the expensive conditions in some cities, most would-be homeowners might actually have a better shot at affording a mortgage than they believe. Earlier this month, Fannie Mae released the results of a nationwide study that found most people think it’s harder to qualify than it really is. CLICK HERE TO GET THE FOX BUSINESS APP People overestimate the minimum credit score they need to qualify for a mortgage, as well as the minimum down payment, which is about 3 percent. Most people in the study said it's 10 percent. Here’s how much money you’ll need to earn in order to afford mortgage payments in 35 major U.S. cities, according to Unison: San Francisco: $202,094 San Jose: $152,697 Urban Honolulu: $140,555 Los Angeles: $121,939 San Diego: $116,652 Seattle: $114,217 Washington, D.C.: $112,106 New York City: $109,313 Boston: $95,344 Portland: $74,137 Denver: $68,983 Miami: $61,634 Salt Lake City: $57,248 Atlanta: $54,266 Chicago: $51,031 Minneapolis: $49,122 Las Vegas: $45,998 Phoenix: $42,937 Richmond: $42,700 Charlotte: $40,710 Nashville: $40,210 Tampa: $39,407 Albuquerque: $39,407 Dallas: $35,670 Columbia: $34,435 Hartford: $34,200 Houston: $32,510 Louisville: $32,181 Philadelphia: $31,108 Kansas City: $30,528 Columbus: $29,618 Indianapolis: $26,922 Wichita: $25,547 Milwaukee: $25,383 Detroit: $251 $10,033 Fox Business' Brittany De Lea contributed to this report. Related Articles 10 Tips Most First-Time Home Buyers Don't Consider 11 Tips Every Home Owner Needs to Know About Insurance 5 Things You Need to Know About Home Equity Loans |
Samsung QLED TVs are on sale at Walmart — save over $500 on this 75-inch model
TL;DR:Samsung's game-changing QLED TVs are on sale at Walmart — included in the bunch is this75-inch modelfor $504 off, bringing it down to just $1,793.93.
Picking up a brand-new4K TVis an exciting prospect, but what’snotso exciting is the massive chunk of change you’re going to have to get rid of to bring one home. While spending a pretty penny is basically unavoidable when it comes to a really niceTV(itisan investment, after all), you can still find some pretty killer sales on the web that will end up saving you some precious cash. And if you’re like us, every cent counts.
Although a good sale isn’t always a simple find, fear not, because Walmart is listing some greatsavings on Samsung QLED 4K TVsin various shapes and sizes. One of our favorites of the whole bunch? This75-inch model— which you can grab for just $1,793.93 (that’s over $500 off the original price).Read more...
More aboutSamsung,Tvs,Smart Tv,Mashable Shopping, andShopping Solo |
GLOBAL MARKETS-Stocks, yields edge higher as investors brace for Fed
* Fed likely to leave rates steady, despite market outlook
* MSCI global stocks index hits six-week high
* Fed decision comes after ECB's Draghi hints at stimulus
* Benchmark yields rise after day-earlier tumble (Updates with open of U.S. markets; changes dateline, previous LONDON)
By Lewis Krauskopf
NEW YORK, June 19 (Reuters) - A gauge of global stock markets gained modestly on Wednesday to reach six-week highs and benchmark government bond yields rose from multiyear lows as investors awaited a decision on monetary policy from the U.S. Federal Reserve later in the session.
Investor hopes that the Fed would soon cut interest rates were fed on Tuesday when European Central Bank President Mario Draghi hinted at economic stimulus, comments that drove up stocks and weakened yields.
The Fed is due to give its policy statement at 2 p.m. EDT (1800 GMT) followed by a news conference from Chairman Jerome Powell, and "there's not a lot of incentive for traders to be really directionally betting" ahead of time, said Mark Hackett, chief of investment research at Nationwide.
The Fed is expected to leave rates on hold at Wednesday's meeting, but the market is factoring in a cut as soon as next month.
"Equity markets have already placed their bets," Hackett said. "The issue is Powell needs to reinforce that."
MSCI's gauge of stocks across the globe gained 0.37%.
The Dow Jones Industrial Average rose 37.65 points, or 0.14%, to 26,503.19, the S&P 500 lost 0.79 points, or 0.03%, to 2,916.96 and the Nasdaq Composite dropped 9.64 points, or 0.12%, to 7,944.25.
The pan-European STOXX 600 index lost 0.05%.
Aside from Draghi's comments, equity markets got a boost on Tuesday when U.S. President Donald Trump confirmed he would meet with Chinese counterpart Xi Jinping at next week's G20 meeting, as the two sides rekindled trade talks.
U.S. Treasury yields rose on Wednesday, tracking the European market after steep falls the previous day, as investors rebalanced positions ahead of the Fed decision.
Benchmark 10-year notes last fell 10/32 in price to yield 2.0906%, from 2.058% late on Tuesday.
U.S. benchmark 10-year yields on Tuesday fell to their lowest since early September 2017. German yields climbed after falling deep into negative territory on Tuesday.
"People are mostly position-squaring ahead of the Fed today," said Justin Lederer, Treasury analyst at Cantor Fitzgerald in New York. "Everything in some shape or form will change at 2 p.m. when the Fed announces its decision."
The dollar index fell 0.17%, with the euro up 0.16% to $1.1209.
U.S. crude rose 0.35% to $54.09 per barrel and Brent was last at $62.29, up 0.24% on the day.
(Additional reporting by Gertrude Chavez-Dreyfuss in New York and Sujata Rao in London; Editing by Hugh Lawson and Jonathan Oatis) |
Did You Manage To Avoid Dios Exploration's (CVE:DOS) Painful 62% Share Price Drop?
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It's nice to see theDios Exploration Inc.(CVE:DOS) share price up 11% in a week. But that doesn't change the fact that the returns over the last three years have been disappointing. Tragically, the share price declined 62% in that time. Some might say the recent bounce is to be expected after such a bad drop. Perhaps the company has turned over a new leaf.
See our latest analysis for Dios Exploration
Dios Exploration hasn't yet reported any revenue yet, so it's as much a business idea as an actual business. You have to wonder why venture capitalists aren't funding it. So it seems shareholders are too busy dreaming about the progress to come than dwelling on the current (lack of) revenue. For example, investors may be hoping that Dios Exploration finds some valuable resources, before it runs out of money.
We think companies that have neither significant revenues nor profits are pretty high risk. There is usually a significant chance that they will need more money for business development, putting them at the mercy of capital markets. So the share price itself impacts the value of the shares (as it determines the cost of capital). While some such companies go on to make revenue, profits, and generate value, others get hyped up by hopeful naifs before eventually going bankrupt. It certainly is a dangerous place to invest, as Dios Exploration investors might realise.
When it reported in March 2019 Dios Exploration had minimal cash in excess of all liabilities consider its expenditure: just CA$372k to be specific. So if it has not already moved to replenish reserves, we think the near-term chances of a capital raising event are pretty high. That probably explains why the share price is down 27% per year, over 3 years. You can click on the image below to see (in greater detail) how Dios Exploration's cash levels have changed over time.
Of course, the truth is that it is hard to value companies without much revenue or profit. What if insiders are ditching the stock hand over fist? 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.
Dios Exploration shareholders are down 29% 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. On the bright side, long term shareholders have made money, with a gain of 7.4% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. Most investors take the time to check the data on insider transactions. You canclick here to see if insiders have been buying or selling.
We will like Dios Exploration better if we see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
The Zacks Analyst Blog Highlights: Broadcom, Amgen, NVIDIA, Bristol-Myers and Restaurant Brands
For Immediate Release
Chicago, IL – June 19, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog includeBroadcomAVGO,AmgenAMGN,NVIDIANVDA,Bristol-MyersBMY andRestaurant BrandsQSR.
Here are highlights from Tuesday’s Analyst Blog:
Top Analyst Reports for Broadcom, Amgen and NVIDIA
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Broadcom, Amgen and NVIDIA. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can seeall oftoday's research reports here >>>
Broadcom's shares have underperformed the Zacks Electronics - Semiconductors industry over the past year, gaining +9.1% vs. a +13.4% increase. Broadcom reported mixed second-quarter results, wherein the bottom line surpassed expectations, but the top line missed the same.
Notably, revenues increased on a year over year basis. The Zacks analyst thinks the company is benefiting from strong demand of its wireless solutions and expanding product portfolio, which makes it well-positioned to address the needs of rapidly growing technologies like IoT and 5G. Strong ties with leading OEMs across multiple target markets will help the company to gain key insights into the requirements of customers.
Further, Broadcom is a leading player in the semiconductor market based on its multiple target markets, accretive acquisitions and strong cash flow. However, the company lowered its fiscal 2019 revenues outlook. Further, intensifying competition, integration risks and leveraged balance sheet adds to the woes.
(You canread the full research report on Broadcom here >>>).
Shares ofAmgenhave gained +4.6% year to date, underperforming the Zacks Biomedical and Genetics industry's increase of +10.2%. The Zacks analyst thinks that while Amgen's newer drugs — Prolia, Xgeva, Blincyto, Kyprolis — will drive sales, biosimilar and brand competition faced by its legacy products will create pressure on the top line in 2019.
Meanwhile, uptake of key drug Repatha has been slow due to payer restrictions. However, recently launched products including Aimovig, biosimilars and international expansion provide incremental growth opportunities. Amgen is also progressing with its pipeline and the approval of Evenity was a boost.
In the past five years, Amgen has launched nine products, including two in new therapeutic areas. Amgen boasts a strong biosimilars pipeline, which could be an important long-term growth driver. Amgen's restructuring plan is making it leaner and more cost efficient.
(You canread the full research report on Amgen here >>>).
NVIDIA's shares have underperformed the Zacks General Semiconductor industry over the past year (down -44.3% vs. -21.5%). The Zacks analyst thinks NVIDIA has been making concerted efforts to strengthen its position in the several emerging markets. Growth across Professional Visualization and Automotive segments is expected to be a key catalyst.
Increasing deal wins for autonomous vehicle development and the solid uptake of AI-based smart cockpit infotainment solutions are a tailwind. Further, the company's latest acquisition of Mellanox is likely to be its main driver as it will fortify its datacenter footprint and lend a competitive edge. Rising traction of GeForce laptops and RTX GPUs in the market is a positive.
However, weakness in the data center business persists to be an overhang. A pause in hyperscale spending and softness in demand from some enterprise clients remain major concerns. Further, CPU shortages are a drag on gaming business.
(You canread the full research report on NVIDIA here >>>).
Other noteworthy reports we are featuring today include Bristol-Myers and Restaurant Brands.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They're also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119%and +164%in as little as 1 month. The stocks in this report could perform even better.
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Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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 reportBristol-Myers Squibb Company (BMY) : Free Stock Analysis ReportBroadcom Inc. (AVGO) : Free Stock Analysis ReportAmgen Inc. (AMGN) : Free Stock Analysis ReportRestaurant Brands International Inc. (QSR) : Free Stock Analysis ReportNVIDIA Corporation (NVDA) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Why Microsoft Stock Will Keep On Climbing Higher in 2019
Microsoft (NASDAQ: MSFT ) is the world’s most valuable publicly traded company. After a downturn at the end of May, Microsoft stock has continued to climb through June, including a 1.74% gain on Tuesday that set yet another new high and gave the company a $1.04 trillion market cap. With growth of over 30% for 2019, why are investors so bullish on MSFT? This Is Why Microsoft Stock Will Stay On Top in 2019 Source: Shutterstock When trading closed on Tuesday, Microsoft stock was at $135.16, up 1.74% for the day. The company has been firing on all cylinders for most of June, climbing back above the $1 trillion market cap it hit for the first time on April 25 . That makes MSFT more valuable than other tech giants like Apple (NASDAQ: AAPL ) at $913.08 billion and Amazon (NASDAQ: AMZN ) at $936.11 billion. That raises a few questions. For a tech company that’s shut-out of the smartphone market altogether, a non-player in the red-hot smart speaker category and being soundly trounced by the competition in video game console sales, MSFT is doing extraordinarily well these days. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Earnings Anticipation Microsoft is expected to release its Q4 earnings on July 18, and investors are clearly expecting to hear good news. The company’s Q3 earnings were better than expected and showed especially strong growth in the company’s Azure cloud computing division, which saw 73% year-over-year revenue growth. Gartner is predicting cloud computing will grow “exponentially” for the next several years , for total global revenue of $331 billion by 2022. MSFT is positioning itself to be a key player in this huge market and investors are anticipating those Q4 results show not just double-digit revenue and earnings growth, but continued acceleration of the company’s cloud computing revenue. In the aftermath of Microsoft’s Q3 earnings report, MSFT stock rose nearly 4% and the company passed a $1 trillion market valuation for the first time — only the third U.S. company to do so, after Apple and Amazon. The performance of MSFT through June clearly shows an expectation that those Q4 earnings are going to be just as impressive. Story continues Fall Product Launches While much of the Microsoft news in recent weeks has been focused on the Xbox Project Scarlet, that game console won’t be arriving until 2020. However, there are more product launches expected this fall, and they have potential upside for MSFT stock. 10 'Buy-and-Hold' Stocks to Own Forever The first is Project xCloud , the streaming gaming service set to take on Stadia from Alphabet’s (NASDAQ: GOOG , NASDAQ: GOOGL ) Google division. Project xCloud leverages all that Azure cloud hardware and it starts public testing this October. Cloud gaming has the potential to be huge. It may not just take a chunk of the current $138 billion global video game industry, it could significantly increase the size (and value) of the video game market by allowing consumers to play on devices like tablets and smartphones without the need for expensive consoles. Also expected this fall is new Surface hardware, including a new Surface Pro tablet. In Q3, MSFT’s Personal Computing revenue was $10.7 billion and the biggest gains were Surface hardware revenue — up 21%. Not in the Regulation Spotlight Finally, unlike virtually every other big tech company, government regulators don’t appear to be taking aim at MSFT. It hasn’t been singled out for skewing search results, sharing user data, influencing elections or running a monopoly . The company has already gone through antitrust proceedings , but that was several decades ago. With regulators increasingly looking at Apple, Amazon, Facebook (NASDAQ: FB ) and Google, MSFT is a relatively safe bet for investors who want to own a piece of a tech giant without a lot of risks. As of this writing, Brad Moon did not hold a position in any of the aforementioned securitie s. More From InvestorPlace 4 Top American Penny Pot Stocks (Buy Before June 21) 7 Value Stocks to Buy for the Second Half 7 Hot Stocks to Buy for a Seemingly Sleepy Summer 6 Chip Stocks Staring At Big Headwinds in 2019 Compare Brokers The post Why Microsoft Stock Will Keep On Climbing Higher in 2019 appeared first on InvestorPlace . |
Beyond Meat short sellers still lining up to bet against the stock despite massive losses
The appetite of short sellers, who are betting against vegan meat company Beyond Meat (BYND), is insatiable.
Despite Beyond Meat shares carrying insanely high borrowing costs relative to other packaged foods and meat stocks, short sellers continue to line up to bet against the El Segundo, California-based company that has rallied more than 600% since its May initial public offering.
As of Tuesday’s open, that incredible rally meant short sellers had racked up $739 million in total mark-to-market losses since Beyond’s IPO, according to S3 Analytics.
“For the most part short sellers are not capitulating in the face of expensive financing costs and large mark-to-market losses,” wrote S3 Analytics Managing Director Ihor Dusaniwsky. “Even when shorts do close out their positions, there is another short standing right behind them ready to take the returned stock borrow and short the stock in their place.”
Despite a 63% increase in Beyond Meat’s share price so far in June adding to the short seller carnage, Dusaniwsky said short interest has remained little changed with short interest still comprising about 46% of Beyond Meat’s public float.
One of the first investors to short Beyond Meat,Atlanta-based Harrington Alpha Fund founder Bruce Cox, told Yahoo Finance that attempts to re-open his short position on the stock had been unsuccessful due to a lack of share availability.
Dusaniwsky predicted that outsized short interest would likely push Beyond Meat borrowing fees from the current 82% fee back up above 100%, which would be much higher than the 0.30% borrowing fee attached to shares of its heavily-shorted peers Hormel Foods (HRL) and McCormick (MKC).
Dusaniwsky also predicted that the outsized short interest could further fuel an extended rally in Beyond Meat’s share price should traders be forced to cover their positions in what’s known as a short squeeze.
“A BYND short squeeze and a short covering (buying) rally may be just around the corner,” he wrote. “Many short sellers are getting closer to the tipping point of closing out their positions due to expensive stock borrow rates, stock loan recalls and massive mark-to-market losses.”
Through mid-May,total mark-to-market losses amounted to just over $96 million— a far cry from the $739 million as of Tuesday’s open.
Zack Guzman is the host ofYFi PMas well as a senior writer and on-air reporter covering entrepreneurship, startups, and breaking news at Yahoo Finance. Follow him on Twitter@zGuz.
Read more:
Beyond Meat shares soar 7% on Europe production plans and JPMorgan rating
Blue Moon's creator launched a cannabis beer that sold out in 4 hours
Sam Adams founder Jim Koch says the Dogfish Head merger is about more than beer
Read the latest financial and business news from Yahoo Finance
Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,SmartNews,LinkedIn,YouTube, andreddit. |
‘Satoshi’s Useful Idiot’ Zuckerberg Will Boost Bitcoin Price Beyond $20,000: Max Keiser
ByCCN Markets: Crypto bull Max Keiser has predicted that Facebook’s cryptocurrency Libra will help boost the bitcoin price to new all-time highs.
According to Keiser, this is because Libra will increase the awareness and appeal of cryptocurrencies in general. Consequently, this will raise Bitcoin’s hash rate up leading to a new record price.
Currently, Bitcoin’s hash rate is slightly above 60,036,687 TH/s according to statistics obtained fromBlockchain.com.
Read the full story on CCN.com. |
Does Market Volatility Impact Daseke, Inc.'s (NASDAQ:DSKE) Share Price?
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Anyone researching Daseke, Inc. (NASDAQ:DSKE) might want to consider the historical volatility of the share price. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. The first type is company specific volatility. Investors use diversification across uncorrelated stocks to reduce this kind of price volatility across the portfolio. The 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 mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). However, Warren Buffett said 'volatility is far from synonymous with risk' in his 2014 letter to investors. So, while useful, beta is not the only metric to consider. To use beta as an investor, you must first understand that the overall market has a beta of one. A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.
Check out our latest analysis for Daseke
Looking at the last five years, Daseke has a beta of 1.61. The fact that this is well above 1 indicates that its share price movements have shown sensitivity to overall market volatility. If the past is any guide, we would expect that Daseke shares will rise quicker than the markets in times of optimism, but fall faster in times of pessimism. 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 Daseke's revenue and earnings in the image below.
With a market capitalisation of US$256m, Daseke is a very small company by global standards. It is quite likely to be unknown to most investors. Relatively few investors can influence the price of a smaller company, compared to a large company. This could explain the high beta value, in this case.
Since Daseke 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. In order to fully understand whether DSKE is a good investment for you, we also need to consider important company-specific fundamentals such as Daseke’s financial health and performance track record. I urge you to continue your research by taking a look at the following:
1. Future Outlook: What are well-informed industry analysts predicting for DSKE’s future growth? Take a look at ourfree research report of analyst consensusfor DSKE’s outlook.
2. Financial Health: Are DSKE’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Elbit eyes acquisition opportunities from Raytheon-UTC deal
PARIS, June 19 (Reuters) - Israel-based Elbit Systems on Wednesday said it would keep an eye out for possible acquisitions if the proposed merger of U.S. aerospace companies Raytheon Co and United Technologies Corp triggers certain divestments.
"We could have several opportunities coming from that kind of merger," Ran Kril, executive vice president for International Marketing & Business Development, told Reuters at the Paris Airshow.
Kril said Elbit was committed to expanding in the United States, and would keep a close eye on any possible divestments ordered by U.S. authorities reviewing the proposed merger.
He said Elbit expected to wrap up the purchase of the night vision business of Harris Corp in the autumn. Antitrust authorities had ordered the sale of that business as a condition for approving Harris's merger with L3 Technologies.
"We’ve decided to grow in America and after the Harris acquisition, we will always find opportunities to expand our portfolio and our presence in the U.S.," Kril said. (Reporting by Andrea Shalal, editing by Deepa Babington) |
Wyclef Jean says Haiti presidential upset taught him this 'rule' about politics
Wyclef Jean’s run forpresidentof Haiti has ended, but the Grammy Award-winningrapper and producersaid it was worth the very valuable life lessons he learned along the way.
“There's a thing about politics,” he said to FOX Business'Maria Bartiromoon Wednesday. “This is a rule -- if you fail and you don't succeed, try, try again.”
Jean, 49, ran for president nine years ago, after a disastrous earthquake left “250,000 people under rubble.” The Haitian-born entertainer felt that there was a good chance to “reconstruct the country” through carbon credit.
“One of my ideas in moving this country forward would be, you know, an environmental fund which is actually there,” he said.
Another idea Jean had was to create jobs through agricultural banks.
“I believe in job creation,” he said. “So we were talking about the idea of agro banks -- empowering farmers -- you know what I mean?” he said, adding that “I have mixed emotion about microloans because at the end of the day if I don't have money, how you expect me to pay you back?”
Ultimately, Jean's bid for president was rejected over residency requirements, but he still believes “in moving forward in the future.”
“Whether you’re a third-world island, a third-world country, let’s strengthen [the] private sector because … when you look at it, the private sector, the stronger they are, the more jobs that could be provided for the people.”
CLICK HERE TO GET THE FOX BUSINESS APP
Jean said his next venture includes building the first hip-hop guitar.
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Facebook’s Cryptocurrency Will Face ‘Regulatory Hurricane,’ Canaccord Analysts Say
Analysts at investment bank Canaccord Genuity think Facebook’s new cryptocurrency might benefit the world – if regulators allow it.
In a note to clients Wednesday, analyst Michael Graham wrote that Facebook’s Libra Network, unveiled on Tuesday, would seemingly benefit the blockchain space, unbanked individuals and (to some “modest” amount) Facebook’s bottom line.
However, he highlighted that the project must first receive a seal of approval, or at least no resistance, from national governments worldwide.
Related:China’s Biggest Payment Firms Have No Plans to Follow Facebook into Crypto
Indeed, lawmakers and regulators are already pushing back against the project. In the U.S., Representatives Maxine Waters and Patrick McHenry, respectively the chair and ranking member of the House Financial Services Committee, havecalled for a hearingwith Facebook executives to discuss libra, with Waters going as far as to ask Facebook to cease development – at least temporarily.
Elsewhere, Markus Ferber, a German member of the European Parliament, said Facebook should not be “allowed to operate in a regulatory nirvana,” while French Finance Minister Bruno Le Maire said the libra cannot become a sovereign currency.
Mark Carney, governor of the Bank of England,also weighed in, saying he held an open mind but that the libra should be examined closely.
Related:‘I Don’t Trust Facebook With Anything:’ The World Reacts to Facebook’s Libra
Regulatory hurdles aside, Graham appeared to be bullish about both the libra and the effect it may have worldwide.
“We see Libra as socially conscientious leverage of the company’s global clout to bring financial inclusion to billions of Earth’s citizens for the first time,” he wrote.
As for the libra’s implications for the blockchain space, he noted that Facebook’s goal is to only hold 1/100 of the votes for the Libra Association, the governing council that will make decisions about the protocol. In his view, this is “the right level of centralization.”
More importantly, if the libra succeeds, it might validate the blockchain payments model. He went so far as to suggest it may become the most valuable cryptocurrency, writing:
“However, if Libra fulfills its ambitions, it could potentially displace bitcoin and other existing digital assets that are primarily used as a payments vehicle or store of value.”
The note also touched on secondary benefits that Facebook’s launch partners may see. Merchants that utilize the libra may see lower fees and an increased number of customers, he wrote, specifically mentioning Lyft, Uber, eBay, PayPal and Spotify.
On the other hand, companies like PayPal may also face issues if the libra model succeeds.
Graham returned to the potential number of users in his closing summary, writing that “billions of potential Libra adopters can be targeted in minutes,” if unbanked individuals suddenly gain access to financial services. He said:
“The scale of reach here is unprecedented.”
Facebookimage via Shutterstock
• Bank of England Governor Says Facebook’s Libra Crypto Will Be Scrutinized
• Watch Facebook’s Libra Videos: An Inside Look At the Calibra Wallet |
Is Dycom Industries, Inc.'s (NYSE:DY) ROE Of 7.3% Concerning?
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While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. To keep the lesson grounded in practicality, we'll use ROE to better understand Dycom Industries, Inc. (NYSE:DY).
Over the last twelve monthsDycom Industries has recorded a ROE of 7.3%. One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.073 in profit.
View our latest analysis for Dycom Industries
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Dycom Industries:
7.3% = US$60m ÷ US$821m (Based on the trailing twelve months to April 2019.)
It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. 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.
ROE looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the yearly profit. A higher profit will lead to a higher ROE. So, all else equal,investors should like a high ROE. 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. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As is clear from the image below, Dycom Industries has a lower ROE than the average (9.2%) in the Construction industry.
Unfortunately, that's sub-optimal. It is better when the ROE is above industry average, but a low one doesn't necessarily mean the business is overpriced. 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 first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. That will make the ROE look better than if no debt was used.
Dycom Industries does use a significant amount of debt to increase returns. It has a debt to equity ratio of 1.07. The company doesn't have a bad ROE, but it is less than ideal tht it has had to use debt to achieve its returns. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
Return on equity is useful for comparing the quality of different businesses. A company that can achieve a high return on equity without debt could be considered a high quality business. All else being equal, a higher ROE is better.
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. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So I think it may be worth checking thisfreereport on analyst forecasts for the company.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
The Zacks Analyst Blog Highlights: Malibu Boats, MEDIFAST, OptimizeRx, Synergy Resources and Pioneer Natural
For Immediate Release
Chicago, IL – June 19, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog includeMalibu Boats, Inc.MBUU,MEDIFAST INCMED, OptimizeRx Corp.OPRX,Synergy Resources CorporationSRCI andPioneer Natural Resources CompanyPXD.
Here are highlights from Tuesday’s Analyst Blog:
Brokers Just Love These 5 Stocks
Sometimes you come across stocks that are just perfect, companies that seem to be doing everything right, growing revenue and earnings at strong double-digit rates and projecting solid sales and earnings growth ahead. Brokers just love these stocks and end up raising their estimates on them. But even with all these positives, for some reason, prices remain reasonable. There seems to be no reason to remain at the sidelines then. So it makes perfect sense to dive right in-
Malibu Boats, Inc.
Malibu Boats, Inc. operates as a designer, manufacturer and marketer of sport boats primarily in the United States. The Company sells its boats under two brands: Malibu and Axis Wake Research. Its sport boats used for water sports including water skiing, wakeboarding and wake surfing as well as for general recreational boating use.
Average broker rating 1
Zacks Rank #1 (Strong Buy)
VGM score A
Sales growth in the last fiscal year ending June was 76.28%
Expected sales growth this year 35.85% and next year 12.50%
EPS growth in the last fiscal year was 66.67%
Expected EPS growth this year 40.00% and next year 13.74%
Fiscal 2019 EPS estimate up 4.30%, 2020 EPS up 2.73% in the last 60 days
Valuation: The forward 12 months' P/E of 9.08X trails the 16.69X for the S&P 500
MEDIFAST INC
Medifast is a leading manufacturer and distributor of clinically proven weight loss and healthy living products and programs. Distribution is through websites, telemarketing, franchised weight loss clinics, medical professionals and multi-level marketing.
Average broker rating 1
Zacks Rank #2 (Buy)
VGM score B
Sales growth in the last fiscal year was 66.14%
Expected sales growth this year 47.72% and next year 24.98%
EPS growth in the last fiscal year was 101.75%
Expected EPS growth this year 47.19% and next year 26.91%
Valuation: The forward 12 months' P/E of 18.25X trails the 16.69X for the S&P 500. But whereas the S&P 500 is trading at its median value, MED is trading well below its median value of 23.68X.
OptimizeRx Corp.
OptimizeRx Corporation provides marketing and advertising solutions that seek to increase patient awareness and education about its clients' brands and then helps patients adhere to their routines. It is believed that this approach, facilitated through a platform connecting patients, physicians and pharmaceutical manufacturers, ultimately lowers cost for patients.
Average broker rating 1
Zacks Rank #1
Growth score A
Sales growth in the last fiscal year was 74.87%
Expected sales growth this year 35.17% and next year 29.65%
EPS growth in the last fiscal year was 223.8%
Expected EPS growth this year 61.54% and next year 55.16%
Valuation: The forward 12 months' P/E of 49.73X is below its median value of 90.67X and is at a significantly higher level than the S&P 500.
Synergy Resources Corporation
SRC Energy Inc. is an oil and natural gas exploration and production company. It engages in the acquisition, development, exploitation, exploration and production of oil and natural gas properties, primarily located in the Wattenberg field in the D-J Basin of northeast Colorado.
Average broker rating 1.4
Zacks Rank #2
VGM score A
Sales growth in the last fiscal year was 78.1%
Expected sales growth this year 18.27% and next year 10.22%
EPS growth in the last fiscal year was 63.77%
Expected EPS growth this year -11.50% and next year 14.79%
Valuation: The forward 12 months' P/E of 4.07X is below its median value of 5.82X and trails the S&P 500
Pioneer Natural Resources Company
Pioneer Natural Resources Company is a large, Texas-based independent exploration and production company that is focused on helping to meet the world's energy needs. Pioneer Natural Resources deliver industry-leading production and reserve growth through onshore, unconventional, oil and gas resource development in the United States, while providing opportunities for growth and enrichment for business partners, employees and the communities in which operate. The company provides administrative, financial and management support to United States and foreign subsidiaries that explore for, develop and produce oil, natural gas liquid and natural gas reserves.
Average broker rating 1.19
Zacks Rank #2
VGM score B
Sales growth in the last fiscal year was 72.59%
Expected sales growth this year 6.86% and next year 13.16%
EPS growth in the last fiscal year was 192.13%
Expected EPS growth this year 48.81% and next year 18.69%
Valuation: The forward 12 months' P/E of 14.18X is below its median value of 17.17X and trails the S&P 500.
Also seethe complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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 reportOptimizeRx Corp. (OPRX) : Free Stock Analysis ReportMEDIFAST INC (MED) : Free Stock Analysis ReportMalibu Boats, Inc. (MBUU) : Free Stock Analysis ReportPioneer Natural Resources Company (PXD) : Free Stock Analysis ReportSynergy Resources Corporation (SRCI) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Man becomes first person convicted of making a 3D printed gun in the UK
Tendai Muswere who has been convicted of making a gun using a 3D printer in a UK legal first. Muswere, 26, of Pimlico, central London, admitted the offence at Southwark Crown Court on Wednesday. (PA) A man has been convicted of making a gun using a 3D printer in what is thought to be a UK legal first. Tendai Muswere, 26, of Tachbrook Street, Pimlico, central London, admitted the offence at Southwark Crown Court on Wednesday. He pleaded guilty to one count of manufacturing a firearm, namely a 3D printed gun . Police found the components for the weapon, which was usable, during a drugs raid on Muswere’s home in October 2017, when they also found cannabis plants. A 3D printed gun made by Tendai Muswere, 26, of Pimlico, central London. Muswere was convicted of one count of manufacturing a firearm at Southwark Crown Court on Wednesday. (PA) Undated handout photo issued by the Metropolitan Police of a 3D printed gun made by Tendai Muswere, 26, of Pimlico, central London. Muswere was convicted of one count of manufacturing a firearm at Southwark Crown Court on Wednesday. (PA) He claimed that he was doing a university film project and was not aware that the parts he had made would be capable of firing. But his internet search history showed he had viewed instruction videos on how to use a 3D printer to make a functioning gun. A second police raid in February 2018 found more firearm components. 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 Acting Detective Sergeant Jonathan Roberts, who led the investigation, said: “Muswere claimed that he was printing the firearms for a ‘dystopian’ university film project but he has not explained why he included the component parts necessary to make a lethal barrelled weapon. “We know that Muswere was planning to line the printed firearms with steel tubes in order to make a barrel capable of firing. “This conviction, which I believe is the first of its kind relating to the use of a 3D printer to produce a firearm, has prevented a viable gun from getting into the hand of criminals.” Watch the latest videos from Yahoo UK |
Minimum wage hasn't been raised for the longest time in history
June 16 marked the 12th year that Congress hadn’t raised the federal minimum wage, the longest amount of time the minimum wage has remained unchanged since it was first established in 1938. The last time the U.S. government raised the minimum wage was in May 2007 — that decision increased wages to $7.25 an hour starting July 24, 2009.
Since the minimum wage was created in 1938, it has been irregularly increased at the will of Congress. According to theEconomic Policy Institute(EPI), the minimum wage has received a boost nine times since 1938. In the last 81 years, the minimum wage has increased from 25 cents to $7.25.
AJanuary poll found that 55% of registered voterssaid they would support raising the minimum wage to $15 per hour, and another 27% said it should be increased but to a lesser amount.
But despite the popularity of raising the minimum wage, Congress hasn’t acted on any measures in over a decade. EPI’s Senior Economic Analyst David Cooper says there has been “no openness” to do so among Republicans in Congress.
Until 1980, Cooper says, Congress increased the minimum wage “relatively regularly — every five years or so.” But in the last 40 years, he explained, Republicans started to strongly oppose minimum wage increases.
“It wasn’t raised at all during the Reagan administration,” he said. “That’s when we saw nine, 10 years between increases.”
While inflation levels are holding steady the purchasing power of the current minimum wage has steadily eroded over the last decade. Since the minimum wage was raised to $7.25, its purchasing power has declined by 17%. That’s a loss of $3,000 in annual earnings for full-time minimum wage workers. Since reaching its buying power peak in 1968, the minimum wage has lost 31% in purchasing power. That means that effectively, minimum wage workers are “earning” more than $6,800 less than they would have in 1968 — when the minimum wage was only $1.60.
“Imagine if someone took 30% out of your paycheck,” Cooper said. “They can afford 31% less than their counterparts five decades ago. That’s huge.”
But he explains this also has negative impacts on the economy, because the lowest-paid workers tend to inject their extra money right back into the economy.
“On a macro level, it’s also damaging,” Cooper said. “Seventy percent of the economy is consumer spending. We are shooting ourselves in the foot from a growth perspective.”
Raising the minimum wage has been a priority for many politicians, particularly as the 2020 elections draw nearer. Rep. Alexandria Ocasio-Cortez (D-NY) recently attacked Amazon and its CEO Jeff Bezos for paying workers“starvation wages.” Amazon, which raised its minimum wage to all workers to $15 per hour, responded to the congresswoman,calling her allegations “just wrong.”
Presidential candidates Kamala Harris, Joe Biden, Bernie Sanders, Elizabeth Warren, Amy Klobuchar, Beto O’Rourke, Julian Castro and John Hickenlooper have all publicly declared to fight for a $15 minimum wage if they were to win the White House.
According to EPI’sanalysis, raising the federal minimum wage to $15 would boost the pay for roughly 40 million workers — more than a quarter of the wage-earning workforce.
And with those boosted wages, Cooper says there would be a “modest stimulative effect” on the economy as consumer spending increased. But the real question is: Are businesses able to handle paying workers more without laying off employees?
“A fair reading on all the literature on this is that past increases of the minimum wage have had their intended effect,” he said. “If there is an impact on employment, it’s so small the benefits outweigh the negatives.”
There would also be knock-on effects to social welfare systems, already facingbudget cuts.
“It definitely would reduce the number of people that rely on public assistance, without a doubt,” Cooper said. “This would save money in terms of social assistance savings.” While Cooper argues this money should be reinvested back into those programs, he admits that it would “free up dollars.”
But the best way to solve the problem is by implementing an automatic annual minimum wage increase, also called indexing, Cooper said. It’s already in place in 18 states and the District of Columbia.
Earlier this year a federal bill wasproposed to raise the minimum wageto $15 by 2024. Called the Raise the Wage Act of 2019, the bill would raise the minimum wage and then index wages in 2025 to median wage growth.
Currently, most states index wages by tying them to prices. This way, the minimum wage would increase by the same amount as inflation in the state. By indexing to median wage growth, the minimum wage adjusts automatically at the same rate as the growth in the median wage. According to EPI, the bill would also increase the minimum wage for tipped workers, “which has been fixed at $2.13 per hour since 1991, until it reaches parity with the regular minimum wage.”
Kristin Myers is a reporter at Yahoo Finance. Follow heron Twitter.
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Wall Street on Pace for Best June in Decades: 5 Best ETFs
After the May swoon, Wall Street staged a strong comeback on hopes of monetary easing across the globe. Early this month, Fed hinted at rate cuts given the implications of the trade tensions on the economy. Aggravating trade disputes, global recession fears and bouts of weak data triggered speculation of rate cuts.The European Central Bank also pledged stimulus if economic condition in Europe does not improve. Australia’s central bank recently slashed benchmark rates to a record low of 1.25%. Last month, New Zealand’s central bank cut its benchmark interest rate for the first time in two-and-a-half years. India also cut interest rates for the third time this month. Many other countries are also expected to cut rates in the coming weeks or months.The U.S.-Mexico deal, slew of mergers and acquisitions and expectation of resuming U.S.-China trade talks next week added to the strength (read: ETFs & Stocks From Top-Ranked Sector to Buy).
Notably, the Dow Jones is on track to post its best June gain of nearly 7% since 1938 while the S&P 500 is on pace for the best gain since 1955, climbing about 6% so far. Meanwhile, the Nasdaq Composite Index would represent its best June since 2000 with a return of 6.8%. The S&P 500 is within 1% of its Apr 30 record, while the Dow is short 1.4% of its all-time closing peak.While there have been winners in every corner of the space, several ETFs have easily crushed the market by wide margins. Below, we have presented a bunch of top-performing ETFs so far this month that will continue to outperform if the current trends continue.Global X Genomics & Biotechnology ETF GNOM – Up 12.5%This is a new entrant in the space having accumulated $4.4 million since its inception on Apr 5. It seeks to invest in companies that potentially stand to benefit from further advances in the field of genomic science, such as companies involved in gene editing, genomic sequencing, genetic medicine/therapy, computational genomics, and biotechnology. The product follows the Solactive Genomics Index, charging 68 bps in annual fees. It holds 40 stocks in its basket.Invesco DWA Healthcare Momentum ETF PTH – Up 9.7%This fund targets the broad healthcare sector by tracking the DWA Healthcare Technical Leaders Index. With AUM of $145.5 million, it holds a basket of 46 U.S. companies and charges 60 bps in annual fees. Healthcare equipment and supplies take the largest share at 36%, while biotechnology, and healthcare providers and services round off the next two spots with double-digit exposure each. PTH has a Zacks ETF Rank #3 (Hold) with a High risk outlook (read: ETF Winners & Losers of Last Week).Sprott Gold Miners ETF SGDM - Up 9.4%This fund follows the Sprott Zacks Gold Miners Index, which aims to track the performance of large to mid-capitalization gold companies whose stocks are listed on major U.S. exchanges. It holds 27 stocks in its basket with Canadian firms taking the largest allocation at 79.4%. The fund has amassed $154.7 million in its asset base and charges 57 bps in annual fees from investors (read: Gold Mining ETFs & Stocks That Crushed the Market in May).ETFMG Prime Junior Silver ETF SILJ – Up 9.2%This product provides a true small-cap play on the silver mining space by tracking the Prime Junior Silver Miners & Explorers Index. It holds 30 stocks in its basket with heavy concentration on the top four firms. The fund has managed assets worth $49.7 million and charges 69 bps in annual fees.Materials Select Sector SPDR XLB – Up 8.7%This is the most popular material ETF that follows the Materials Select Sector Index. It manages about $4.2 billion in its asset base and charges investors 13 bps in annual fees. The fund holds about 28 securities in its basket. In terms of industrial exposure, chemicals dominates the portfolio with three-fourth share, while containers & packaging, and metals & mining round off the top three positions. The product has a Zacks ETF Rank #4 (Sell) with a Medium risk outlook (read: Materials Sector Leading in June: 5 ETF Winners).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 reportInvesco DWA Healthcare Momentum ETF (PTH): ETF Research ReportsMaterials Select Sector SPDR Fund (XLB): ETF Research ReportsSprott Gold Miners ETF (SGDM): ETF Research ReportsGLBL-X GEN&BIO (GNOM): ETF Research ReportsETFMG Prime Junior Silver ETF (SILJ): 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 |
FreightWaves Forecast Video: More Flooding Possible, Barges Waiting
Severe storms to strike again: Strong/severe storms containing large hail and damaging winds are likely today and tonight from central Texas to the Ohio and Tennessee River valleys. This includes, but is not limited to Abilene and Dallas-Ft. Worth (Texas), Shreveport, Little Rock, Memphis, St. Louis, Nashville, Louisville and Jackson (Mississippi). I can't rule out a few tornadoes, too. Isolated severe storms could pop up in other spots such as Midland, Springfield (Missouri), Birmingham, Chattanooga and Cincinnati, as well as from the Texas Panhandle to the Dakotas and Wyoming. Roadblocks are possible due to localized flash flooding, and the National Weather Service (NWS) has issued Flash Flood Watches for several areas. Flooding continues along the Mississippi River: Barges from the upper Mississippi are still not allowed through the port of St. Louis due to ongoing high water. The goods they're carrying won't be able to go to ports at the Gulf of Mexico for export until the river drops below 38 feet, which may not be until this weekend. Highways back open: Good news! The sections of I-29 that have been closed for weeks due to flooding — from St. Joseph, Missouri to US-34 in western Iowa, and from Council Bluffs to Loveland, Iowa — are open. Just a few ramps remain closed. Same goes for I-680 from the Nebraska-Iowa border to the I-29 junction. However, several sections of BNSF and Union Pacific Corporation (NYSE: UNP ) rail subdivisions remain out of service in parts of Illinois, Iowa, Kansas, Missouri and Nebraska. Image sourced from Pixabay See more from Benzinga Mississippi Flooding's Impact On Freight, Economy Spreads Downstream Darigold Expands Mexico Operations, Aims To Export 50 Percent Of Its Products South Of The Border Efficiency And Social Responsibility Go Together For Shipper Of Choice Kraft Heinz © 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
EPA Rollback of Obama-Era Rule for Coal-Fired Plants: What Happens Next
The Trump administration on Wednesday completed one of its biggest rollbacks of environmental rules, replacing a landmark Obama-era effort that sought to wean the nation’s electrical grid off coal-fired power plants and their climate-damaging pollution.
Environmental Protection Agency chief Andrew Wheeler, a former coal industry lobbyist, signed a replacement rule that gives states leeway in deciding whether to require efficiency upgrades at existing coal plants.
Wheeler said coal-fired power plants remained essential to the power grid, something that opponents deny. “Americans want reliable energy that they can afford,” he said at a news conference. There’s no denying “the fact that fossil fuels will continue to be an important part of the mix,” he said.
Rep. David McKinley, a West Virginia Republican, was one of several coal country lawmakers on hand for the signing. He argued that power from the sun and wind was not yet reliable enough to depend on. “We’re not ready for renewable energy … so we need coal.”
President Donald Trump campaigned partly on a pledge to bring back the coal industry, which has been hit hard by competition from cheaper natural gas and renewable energy.
The rule will go into effect shortly after publication in the Federal Register. Environmental groups pledge court challenges.
“The Trump administration’s outrageous Dirty Power Scam is a stunning giveaway to big polluters, giving dirty special interests the greenlight to choke our skies, poison our waters and worsen the climate crisis,” House Speaker Nancy Pelosi, D-Calif., said in a statement.
Joseph Goffman, an EPA official under President Barack Obama, said he feared that the Trump administration was trying to set a legal precedent that the Clean Air Act gives the federal government “next to no authority to do anything” about climate-changing emissions from the country’s power grid.
The Obama rule, adopted in 2015, sought to reshape the country’s power system by encouraging utilities to rely less on dirtier-burning coal-fired power plants and more on electricity from natural gas, solar, wind and other lower or no-carbon sources.
Burning of fossil fuels for electricity, transportation and heat is the main human source of heat-trapping carbon emissions.
Supporters of the revised rule say the Obama-era plan overstepped the EPA’s authority.
“This action is recalibrating EPA so it aligns with being the agency to protect public health and the environment in a way that respects the limits of the law,” said Mandy Gunasekara, a former senior official at the EPA who helped write the replacement rule. She now runs a nonprofit, Energy45, that supports President Donald Trump’s energy initiatives.
“The Clean Power Plan was designed largely to put coal out of business,” Gunasekara said. Trump’s overhaul is meant to let states “figure out what is best for their mission in terms of meeting modern environmental standards” and providing affordable energy, she said.
Democrats and environmentalists say the Trump administration has ignored scientific warnings about climate change as it sought to protect the sagging U.S. coal industry.
“The growing climate crisis is the existential threat of our time and President Trump’s shameful response was to put lobbyists and polluters in charge of protecting your health and safety,” Pelosi said.
With coal miners at his side, Trump signed an order in March 2017 directing the EPA to scrap the Obama rule. It was one of the first acts of his presidency.
His pledge to roll back regulation for the coal industry helped cement support from owners and workers in the coal industry, and others. Despite his promise, market forces have frustrated Trump’s efforts. Competition from cheaper natural gas and renewable fuel has continued a yearslong trend driving U.S. coal plant closings to near-record levels last year, according to the U.S. Energy Information Administration.
By encouraging utilities to consider spending money to upgrade aging coal plants, environmental groups argue, the Trump rule could prompt the companies to run existing coal plants harder and longer rather than retiring them.
“It’s a rule to increase emissions because it’s a rule to extend the life of coal plants,” said Conrad Schneider, advocacy director of the Clean Air Task Force. “You invest in updating an old coal plant, it makes it more economic” to run it more to pay off that investment.
An Associated Press analysis Tuesday of federal air data showed U.S. progress on cleaning the air may be stagnating after decades of improvement. There were 15% more days with unhealthy air in America both last year and the year before than there were on average from 2013 through 2016, the four years when America had its fewest number of those days since at least 1980.
Trump has repeatedly claimed just the opposite, saying earlier this month in Ireland: “We have the cleanest air in the world, in the United States, and it’s gotten better since I’m president.”
Along with an initiative requiring tougher mileage standards for cars and light trucks, the Clean Power Plan was one of Obama’s two legacy efforts to slow climate change. The Trump administration also is proposing to roll back the Obama-era mileage standards, with a final rule expected shortly. Environmental groups promise court challenges to both rollbacks.
Trump has rejected scientific warnings on climate change, including a report this year from scientists at more than a dozen federal agencies noting that global warming from fossil fuels “presents growing challenges to human health and quality of life.”
TheEPA’s own regulatory analysis last yearestimated that Trump’s replacement ACE rule would kill an extra 300 to 1,500 people each year by 2030, owing to additional air pollution from the power grid. |
Algorand raises over $60M in token sale at an implied valuation of $24B
Algorand, the proof-of-stake based blockchain protocol, has raised over$60 millionin a token sale conducted on CoinList, according to the Algorand Foundation. This raise was on top of the $66 million in equity funding the firm has raised over the past year from investors including Union Square Ventures and Pillar Venture Capital.
Founded by MIT professor and Turing Award winner, Silvio Micali, Algorand is a blockchain platform focused on scaling and improving user consensus. According to the Algorand Foundation, in its first five years of operation, the total supply of Algorand's native asset, Algos, will grow to 10 billion, with the Foundation auctioning off 600 million Algos per year. The recent token sale valued Algos at $2.40 per token, so investors are valuing the Algorand network at a fully diluted market cap of $24 billion. For comparison, Ethereum is valued at $28 billion at the time of this writing. |
Does Elanco Animal Health Incorporated's (NYSE:ELAN) Debt Level Pose A Problem?
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The size of Elanco Animal Health Incorporated (NYSE:ELAN), a US$12b large-cap, often attracts investors seeking a reliable investment in the stock market. One reason being its ‘too big to fail’ aura which gives it the appearance of a strong and stable investment. But, the health of the financials determines whether the company continues to succeed. I will provide an overview of Elanco Animal Health’s financial liquidity and leverage to give you an idea of Elanco Animal Health’s position to take advantage of potential acquisitions or comfortably endure future downturns. Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourselfinto ELAN here.
View our latest analysis for Elanco Animal Health
ELAN has increased its debt level by about US$2.5b over the last 12 months accounting for long term debt. With this increase in debt, ELAN currently has US$272m remaining in cash and short-term investments to keep the business going. Additionally, ELAN has generated cash from operations of US$446m over the same time period, leading to an operating cash to total debt ratio of 18%, signalling that ELAN’s operating cash is less than its debt.
At the current liabilities level of US$708m, it appears that the company has been able to meet these obligations given the level of current assets of US$2.3b, with a current ratio of 3.22x. The current ratio is calculated by dividing current assets by current liabilities. However, a ratio greater than 3x may be considered by some to be quite high, however this is not necessarily a negative for the company.
With a debt-to-equity ratio of 47%, ELAN can be considered as an above-average leveraged company. This isn’t surprising for large-caps, as equity can often be more expensive to issue than debt, plus interest payments are tax deductible. Accordingly, large companies often have lower cost of capital due to easily obtained financing, providing an advantage over smaller companies. We can check to see whether ELAN is able to meet its debt obligations by looking at the net interest coverage ratio. A company generating earnings after interest and tax at least three times its net interest payments is considered financially sound. In ELAN's case, the ratio of 7.22x suggests that interest is well-covered. Large-cap investments like ELAN are often believed to be a safe investment due to their ability to pump out ample earnings multiple times its interest payments.
At its current level of cash flow coverage, ELAN has room for improvement to better cushion for events which may require debt repayment. However, the company exhibits an ability to meet its near-term obligations, which isn't a big surprise for a large-cap. This is only a rough assessment of financial health, and I'm sure ELAN has company-specific issues impacting its capital structure decisions. I recommend you continue to research Elanco Animal Health to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for ELAN’s future growth? Take a look at ourfree research report of analyst consensusfor ELAN’s outlook.
2. Valuation: What is ELAN 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 ELAN 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. |
Another Controversial Chemical Found in Popular Blood Pressure Medication
For the fourth time in the past year, a widely used blood pressure medication is under review amid concerns it could contain chemicals that could potentially cause cancer.
Valisure, an online pharmacy licensed in 37 states, hasalerted the Food and Drug Administrationof high levels of dimethylformamide (DMF) in valsartan, which is produced by several pharmaceutical companies and often combined with other medicines into a single pill.
DMF is classified as a probable human carcinogen by the World Health Organization and theAmerican Cancer Society.
The pharmacy is asking a recall for the pills and requesting the FDA revise its acceptable intake levels of DMF from thecurrent levelof 8,800,000 nanograms to under 1,000 nanograms. The FDA has not yet responded to that request. The government agency is evaluating the findings.
Patients are being advised to continue taking the medicine for now, since abruptly discontinuing the pills can have negative effects.
Valisure says it found excessive DMF levels in valsartan products from six companies.
Blood pressure medications have been put under increasing scrutiny of late, with several recalls in the past year. In February, the FDAexpanded its recallonLosartan. Irbesartan doses wererecalled last November. And companies including Major Pharmaceuticals, Solco Healthcare, and Teva Pharmaceuticals haverecalled numerous lots of medications that contain valsartan, andTeva has now recalled all non-expired valsartan-containing productsit sells on the U.S. market, including amlodipine-valsartan and amlodipine-valsartan-hydrochlorothiazide combination tablets. |
RRMine.com Subverting Conventional Bitcoin Mining: to Facilitate Mining Bitcoin for Everyone
NEW YORK, NY / ACCESSWIRE /June19, 2019 /RRMine.com as a brand new B-FinTech distributed cloud hashrate sharing platform, it sets up an antenna all over the world with the concept of creating a safe environment for BTC miners.
Bitcoin, the key to cryptocurrency world, has gradually caught more attention and recognition. Regular accessing to Bitcoin generally has two ways, buying coins and mining. While regarding the risk of buying Bitcoin, Bitcoin mining become a popular alternative.
However, conventional model of 'purchasing miners and hosting' requires highly configured hardware and professional maintenance, which is costly. Although 'cloud mining' solved the high initial input issue for individuals, it still encounters the concern of security and asset liquidity.
RRMine.coma next-generation type of Bitcoin mining
Luckily, as a brand new B-FinTech distributed cloud hashrate sharing platform, RRMine.com brings out its innovative pattern of 'hashrate tokenized mining'.
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Cancer/Gene Therapy Biotechs in Focus After Pfizer-Array Deal
Shares of many biotech companies have rallied following the announcement of the Pfizer PFE – Array BioPharma ARRY deal. Announced earlier this week, the deal has an enterprise value of approximately $11.4 billion. The deal is likely to strengthen Pfizer’s oncology portfolio as Array BioPharma is focused on developing targeted small molecule drugs for treating cancer and other high-burden diseases. Its first commercial therapy, Braftovi plus Mektovi, approved as a treatment for BRAF-mutant melanoma, was approved July last year and has shown encouraging uptake. Cancer has become the area of focus of several pharmaceutical companies due to unmet needs and lucrative market opportunities.
In a move to bolster their oncology pipelines, several pharmaceuticals companies may acquire or collaborate to gain rights to prospective cancer treatments. Major drug/biotech players struggling with organic growth need an infusion of new growth drivers into their pipeline/product portfolios — either from internal development or from the purchase of assets. Amgen, Biogen and Gilead are the forerunners with huge cash pile. These companies are also looking to expand their pipeline to continue on growth path.
As expected, there has been an accelerated pace of merger and acquisitions (M&A) activity in pharma space this year, especially in cancer. We have already seen some major deals this year. In January, Bristol-Myers offered to buy Celgene for $74 billion, followed by Lilly’s acquisition of Loxo Oncology for $8 billion in February.
Apart from cancer-focused stocks, pharmaceuticals companies are also targeting biotechs with transformative, next-generation gene therapies in their pipeline. Gene therapies targeting rare diseases are expected to achieve better efficacy. Moreover, rare diseases with high unmet need can also lead to high asking price for these therapies.
The performance of the Zacks Biomedical and Genetics industry has not been impressive as a whole. However, the industry has gained 4% so far this year, after falling more than 25% in 2018, driven by increased M&A activity this year, pipeline successes and frequent new drug approvals. Moreover, certain stocks in the sector with innovative pipelines or commercial drugs with significant sales potential have seen their share price rise. Some of these companies have already been acquired.
We have chosen four companies among the stocks that surged following the Pfizer-Array BioPharma deal and have an encouraging cancer/gene therapy pipeline or portfolio of drugs, making them potential acquisition targets.
Incyte INCY)
Incyte’s strong oncology portfolio makes it a lucrative target for companies like Gilead, Amgen and Bristol Myers. The market cap of Incyte is around $14 billion.
The primary reason behind Incyte being a strong buyout target is its key marketed product, Jakafi, a JAK inhibitor. It is the first and the only product to be approved for polycythemia vera (PV) and myelofibrosis (“MF”) — two rare blood cancers. Jakafi is seeing strong sales performance driven by strong patient demand for both indications. In order to expand the patient population and increase commercial potential of the drug, the company is working on expanding its label further.
Another asset of interest to investors is Olumiant, also a JAK inhibitor, marketed in the EU and the United States (only the lower 2 mg dose) for rheumatoid arthritis (RA). Meanwhile, Incyte’s pipeline boasts interesting targeted therapies like pemigatinib, itacitinib and capmatinib among others.
Incyte currently carries a Zacks Rank #3 (Hold). The stock is up 32.5% so far this year and up 8.5% so far this week. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Incyte Corporation Price
Incyte Corporation price | Incyte Corporation Quote
Blueprint MedicinesBPMC
Blueprint Medicines’ lead pipeline candidate, avapritinib, is being developed for various oncology indications. The candidate has been successful in three pivotal studies. Earlier this month, Blueprint Medicines announced encouraging data from the registration-enabling NAVIGATOR study, which evaluated avapritinib for treating patients with PDGFRA Exon 18 mutant gastrointestinal stromal tumors (“GIST”). The company is planning to file a new drug application later this month, seeking approval for avapritinib as a treatment for the aforementioned indication. The company is also developing avapritinib in combination with Pfizer’s Sutent and Bayer’s Stivarga for second-line and third or fourth-line GIST, respectively, in phase III studies.
The company has other pipeline candidates – BLU-667 and BLU-554 – which are being developed for carcinoma and other cancer indications. The company intends to submit an NDA for BLU-667 for the NSCLC indication in the first quarter of 2020 while the NDA for the MTC indication is expected to be filed during the first half of 2020.
So far this year, shares of the company are up 81.4% and up 7.8% so far this week. Blueprint Medicines currently carries Zacks Rank #3.
Blueprint Medicines Corporation Price
Blueprint Medicines Corporation price | Blueprint Medicines Corporation Quote
VerastemVSTM
Verastem is a small biotech company, which focuses on developing treatments targeting oncology indications. The company has one commercial drug, Copiktra, and an oncology candidate in its pipeline. Copiktra was approved for relapsed or refractory chronic lymphocytic leukemia/small lymphocytic lymphoma and refractory follicular lymphoma in September 2018. The drug targets a patient population with significant unmet need. The company is also developing the drug to support its label expansion in non-Hodgkin lymphoma, T-cell lymphoma, lung cancer, mesothelioma, ovarian cancer and pancreatic cancer. Data from studies have shown promising efficacy in patients.
The company’s pipeline candidate defactinib is an oral small molecule kinase inhibitor, which is being developed for ovarian cancer, pancreatic cancer, mesothelioma, NSCLC, and other solid tumors. The candidate also enjoys orphan drug designation in ovarian cancer and mesothelioma.
Meanwhile, shares of Verastem have been on a downtrend in 2019, which makes the price attractive for potential bidders. The stock was however up 30% so far this week for its buyout potential. The company currently carries a Zacks Rank #3.
Verastem, Inc. Price
Verastem, Inc. price | Verastem, Inc. Quote
uniQure N.V.QURE
The company is a promising player in the gene therapy space. It is engaged in creating a pipeline of innovative gene therapies that have been developed both internally and through its collaboration, focused on cardiovascular diseases, with Bristol Myers-Squibb.
The company’s lead candidate AMT-061, an experimental AAV5-based gene therapy incorporating the FIX-Padua variant, is being evaluated in the phase III HOPE-B pivotal study for the treatment of patients with severe and moderately severe hemophilia B. In January 2019, the company received clearance from the FDA to initiate clinical study for AMT-130 for the treatment of Huntington’s disease.
uniQure’s stock has surged 170.6% so far this year and up 7.5% so far this week. The company currently carries a Zacks Rank #3.
uniQure N.V. Price
uniQure N.V. price | uniQure N.V. Quote
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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 reportPfizer Inc. (PFE) : Free Stock Analysis ReportuniQure N.V. (QURE) : Free Stock Analysis ReportBlueprint Medicines Corporation (BPMC) : Free Stock Analysis ReportArray BioPharma Inc. (ARRY) : Free Stock Analysis ReportVerastem, Inc. (VSTM) : Free Stock Analysis ReportIncyte Corporation (INCY) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
UPDATE 1-Southwest sees higher Q2 unit revenues, and costs, due to 737 MAX groundings
(Rewrites throughout, adds analyst and pilot comment)
By Tracy Rucinski
June 19 (Reuters) - Southwest Airlines Co expects higher unit revenues, and costs, in the second quarter than previously forecast due to the ongoing grounding of Boeing's 737 MAX aircraft, which has led to more than a hundred flight cancellations per day.
The global MAX grounding, which followed two deadly crashes in Indonesia and Ethiopia, has meant that airlines have fewer seats to sell, even though costs remain.
But because planes are flying near capacity, airlines can charge more for available seats, driving up the closely-watched metric of revenues per available seat mile, or unit revenues.
Southwest last week joined larger rival American Airlines in extending its removal of the MAX planes from its schedules until the start of September.
The low-cost carrier said https://www.sec.gov/Archives/edgar/data/92380/000009238019000073/coverpage06-19x19.htm in a regulatory filing it now expects second quarter unit revenues to increase in the 6.5% to 7.5% range compared with its previous forecast of 5.5% to 7.5%.
It sees unit costs, excluding fuel and profitsharing expenses, rising 11.5% to 12.5% versus previous guidance for 10.5% to 12.5%.
However, Cowen analyst Helane Becker said investors are concerned about the impact of additional seat capacity from the eventual return to service of the MAX. With more seats and low fuel costs, airlines may struggle to raise fares, she said.
Southwest continues to expect second quarter fuel costs in the range of $2.10 to $2.20 per gallon, but said its fuel efficiency will decline more than expected due to the absence of its most fuel-efficient aircraft, the MAX.
Airlines are widely expected to seek compensation from Boeing for the MAX grounding once it returns to service.
Southwest Airlines Pilots Association (SWAPA) said on Wednesday it will also seek compensation from Boeing for expenses related to its cooperation with the U.S. Justice Department's criminal probe into the MAX crashes.
Pilots were testifying at a U.S. House Transportation and Infrastructure Committee panel on the status of Boeing 737 Max on Wednesday. (Reporting by Tracy Rucinski in Chicago and Sanjana Shivdas in Bengaluru Editing by Patrick Graham and Sonya Hepinstall) |
Markets see long fight ahead as ECB battles low inflation expectations
By Dhara Ranasinghe
LONDON (Reuters) - Mario Draghi's dramatic Tuesday hints of further monetary easing by the European Central Bank has stabilized collapsing euro zone inflation expectations, but the departing ECB chief will struggle to calm market fears of Japan-style economic stagnation.
Draghi shocked the markets by saying the ECB bank would ease policy again if inflation fails to accelerate. That sparked the biggest one-day fall in euro area bond yields in years as investors bet that yet another cut in its sub-zero deposit rate was in the offing, and possibly even a resumption of its 2.6 trillion euro bond-buying stimulus.
His broadside arrested the relentless fall in investor inflation expectations that at its core reflects doubts about the ECB's ability to achieve its near 2% target with a toolkit now depleted by years of monetary stimulus.
Having slid since the June 6 ECB meeting to almost half the ECB's medium-term target, a key long-term market inflation gauge - the five-year, five-year breakeven forward rate - posted its biggest ever one-day jump after Draghi spoke on Tuesday.
But that 10 basis-point pop to a two-week high of 1.29% on Wednesday still leaves the rate more than half a percentage point shy of where the ECB is targeting.
"Given that inflation expectations essentially drive realised future inflation...we can see that Draghi is trying to avert the prospect of deflation," said Justin Onuekwusi, portfolio manager at Legal & General Investment Management.
Strategists reckon the behavior of this key gauge shows both that Draghi was correct to be more aggressive about promising "whatever it takes" to avoid falling prices and that the ECB has much more work to do.
"The five-year, five-year forward inflation rising is a sign that the ECB is regaining some credibility in achieving its goals. But action will have to follow," said Benjamin Schroeder, senior rates strategist at ING in Amsterdam.
The measure is tracked by the ECB and so followed closely by market watchers and economists.
A 10 bps ECB rate cut is now fully priced in by October, and another is anticipated in 2020. Commerzbank expects the ECB to move as early as July.
The shift echoes a dramatic change globally in rate expectations for major central banks in the last six months.
The ECB is not the only central bank battling both low inflation and low expectations for inflation.
A key long-term gauge of U.S. inflation expectations has also fallen sharply in recent months and is now below 2% and close to its lowest since 2016.
In Japan, struggling with deflation for much of the last quarter-century, the central bank has pushed back its forecast for hitting its own inflation target numerous times over the years, and inflation expectations remain low.
Part of the problem for central banks is that changes such as technology point to a structural shift lower in inflation.
Just 9% of investors expect higher global inflation in the next year, down 30 percentage points from last month, according to Bank of America Merrill Lynch's June fund manager survey.
For sure, not all inflation indicators send the same worrying signals as the five-year, five-year forward, leading to some concern that the ECB is too focused on market indicators.
Euro zone wages rose in the first quarter of the year at the highest pace recorded since the data was first collected.
In addition, UniCredit Bank head of macro research Marco Valli estimates that price gauges from the real economy are currently in line with or above their long-term averages. That contrasts with the end of 2014 and early 2016 - when the ECB last ramped up quantitative easing.
And while Germany's ZEW economy sentiment index, which takes into consideration inflation expectations, has fallen in recent months, it remains well off the lows plumbed during the 2012 euro zone debt crisis.
The ECB's job in boosting long-term inflation is much harder because even after years of quantitative easing, which it only ended in December, and record low interest rates, inflation -- at just 1.2% -- remains well below target.
In fact, it has consistently undershot the ECB's target since 2013.
"The problem is that the ECB is so near to the end of their monetary policy instruments, it is clear that they cannot cut interest rates more than one or maximum two times anymore," said Ulrich Leuchtmann, head of FX & EM Research at Commerzbank in Frankfurt.
"The ECB, like every other central bank, is near the end of its means, which means every step is less effective than it normally would be."
And the slide in the five-year, five-year gauge -- down 30 bps this year alone -- is a concern because of what it says about investor faith in the ECB's ability to meet its mandate.
Low inflation is damaging to economic growth because if consumers and corporates think price rises will be slow or even move down they may hold off on the spending activity that boosts an economy.
"Inflation expectations are an important input," said Hermes Investment Management economist Silvia Dall'Angelo.
"They provide a pull for inflation toward target and because now inflation expectations are no longer consistent with target, it's very hard for the ECB to bring inflation back."
(Reporting by Dhara Ranasinghe, Karin Strohecker, Helen Reid, Sujata Rao; Graphics by Saikat Chatterjee and Sujata Rao; Editing by Mike Dolan and Hugh Lawson) |
Lord Alan Sugar dodged death after fatal heart condition discovery
Lord Alan Sugar revealed how he dodged death (Photo: ITV) Lord Alan Sugar has revealed how he dodged death when doctors detected a fatal artery blockage in his heart. Appearing on Piers Morgan’s Life Stories , the Apprentice star recalled how the discovery was made hours after he had completed a 25 mile bike ride with his wife Ann. Sugar told Morgan how his wife thought he was overreacting due to the lack of symptoms before the revelation about the condition - dubbed the widow maker - was made following a scan. Read more: 'The Apprentice' star Lord Alan Sugar defends the show in wake of aftercare debate “She came with me and she said, ‘What are we doing wasting our bleeding time here? You are a bloody hypochondriac. There is nothing wrong with you. You have got a little tweak over there and a little pain. We are standing here wasting blooming time’. “I said, ‘Don’t worry. I just want to check it out’,” he recalled of his hospital visit. “Anyway I go and have this thing and see the doctor, who is reading the scans, and the pair of us nearly passed out because he said to me, ‘You better go straight to A&E’. “It was dangerous. He said it was on something called the widow’s. It was scary. Ann was shocked by it all, like I was. I understand why she felt I was being a bit of a hypo.” “That morning Ann and I went out on the tandem. We rode 25 miles,” he added. Lord Alan Sugar appears in the latest series of Piers Morgan's Life Stories (Photo: ITV) Read more: Lord Sugar backs Boris for PM - just months after saying he should be jailed for misleading public After being asked by Morgan if he was at risk of death, the business mogul replied: “Well, maybe.” Despite his health scare, Sugar insisted that he was feeling well and has no plans to retire in the future. “I’m happy. I’m 72, what can I say? I am very fit...I will not retire. Ann knows I’d get under her feet. “She knows I’ve got to be busy. I’d be at home, worried about fixing the curtain rail.” |
Akari's Lead Candidate Found Safe, Effective In Treating Eye Inflammation
Shares ofAkari Therapeutics PLC(NASDAQ:AKTX) — a thinly traded nano-cap biotech focusing on therapies for autoimmune and inflammatory diseases — were soaring Wednesday.
What Happened
Akari announced positive results for Part A of a Phase 1/2 study dubbed TRACKER that evaluated the safety and efficacy of its topicalnomacopanin moderate to severe atopic keratoconjunctivitis.
The Part A portion of the midstage study evaluated three patients who were administered nomacopan eye drops twice daily in addition to cyclosporin, the standard of care, for up to 56 days.
The nomacopan drops were found to be comfortable and well-tolerated throughout the trial of three patients, with no serious adverse events reported.
The secondary objective of efficacy was assessed using a standard composite scoring system. The company noted an overall improvement in clinical scores of 55%, with a 62% improvement in symptoms such as discomfort and itching and a 52% improvement in signs such as conjunctival redness and microscopic damage to the corneal surface.
Why It's Important
Atopic keratoconjunctivitis is a serious corneal and eye surface disease which ultimately leads to visual impairment.
No drug has been approved for the disease. The standard of care is based on topical and immunosuppression, does not prevent progression of the disease and causes pain and irritation, according to Akari.
What's Next
Based on the results of the Part B portion of the study, the independent safety committee has given its nod for proceeding with the Part B study, for which enrollment has begun.
Akari shares were up 6.53% at $2.28 at the time of publication Wednesday.
Related Links:
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The Daily Biotech Pulse: Positive Readouts From Adamas And Ironwood, Sesen Bio To Offer Shares, Stoke Therapeutics Debut
See more from Benzinga
• The Week Ahead In Biotech: Conferences, PDUFA Dates, Clinical Trial Readouts And IPOs
• The Daily Biotech Pulse: FDA Greenlights AbbVie's Psoriasis Drug, Novartis Earnings, Patent Notification For MediciNova
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Canarc Reviews Results of Airborne Geophysical Surveys Flown Over the Hard Cash Property in Nunavut
VANCOUVER, BC / ACCESSWIRE / June 19, 2019 / Canarc Resource Corp. (TSX: CCM, OTC-QB: CRCUF, Frankfurt: CAN)reviews the results of the airborne magnetic and radiometric geophysical surveys flown by Geotech Airborne Geophysical Surveys late last year over the Hard Cash Property in Nunavut.
Geophysical modelling and interpretation were recently completed by Geotech, followed by geological and structural interpretation by company geologists. The results have clarified the broad geological and structural controls on gold mineralization and will help guide the Phase 1 exploration program planned for this summer to identify and prioritize drill targets.
Magnetics
The Total Magnetic Intensity (TMI,link 1) is used to broadly interpret lithological units and structural fabric. It shows a strong northeast-striking linear structural fabric that coincides with the strike of the main metavolcanic and metasedimentary units.
Five main magnetic domains trend northeasterly across the property and can generally be correlated with the main rock units shown on the Geological Survey of Canada regional geological map of the area. From northwest to southeast, these are:
• Domain 1 - broad belt of high magnetics mapped as metasediments and paragneiss
• Domain 2 - broad belt of low magnetics mapped as felsic and mafic metavolcanics
• Domain 3 - narrow belt of high to very high magnetics mapped as mafic metavolcanics bounded to the south by a major linear interpreted as a major structure or break
• Domain 4 - broad belt of very low to moderate magnetics mapped as mafic and felsic metavolcanics
• Domain 5 - three irregular ellipsoids with high to very high magnetics mapped as granitic intrusions
The First Vertical Derivative (FVD,link 2) is used to interpret primary and secondary structures or breaks and it shows four main linear trends:
• Trend 1 - southwest-northeast (NE) overall trend of lithologies and structures, including a major break dividing Domain 3 and Domain 4, which marks the northern margin of the main Swamp high grade gold vein zone
• Trend 2 - west-northwest (WNW) transverse structures, including one main linear feature which crosses the main Swamp high grade gold vein zone and coincides with the southwest margin of the granitic intrusion south of the Swamp zone
• Trend 3 - east-west (EW) transverse structures, including one main linear feature which marks the northern edge of the southwestern ellipsoid and bisects the southern ellipsoid of Domain 5
• Trend 4 - north-south (NS) transverse structures that mark the western and eastern margins of the three ellipsoid features of Domain 5, and crosscut the other Domains
The main Swamp high grade gold vein zone sits within a NE trending, strongly foliated, quartz-sericite-carbonate altered shear zone along a linear magnetic low, paralleling the major break that separates the highly magnetic Domain 3 mafic metavolcanics north of the Swamp zone from the highly magnetic Domain 5 northeastern granitic intrusion south of the Swamp zone.
A prominent WNW transverse linear appears to intersect the major NE break at the Swamp zone. The Swamp zone, 4600 and Pond showings appear to lie along the margins of a large rhomboidal magnetic feature defined by intersecting NE and NS linears. The 4600 gold prospect lies 800 metres (m) southwest of the Swamp zone at the intersection of NS and WNW structures just south of the main NE break. The Pond gold prospect is located 1.8 kilometres (km) southwest of the Swamp zone along the main NE break. These two gold vein prospects may significantly extend the Swamp zone to the southwest.
A secondary linear zone of copper-arsenic-tungsten-gold prospects is situated 3.5 km west of the Swamp zone along the southern margin of a linear magnetic high marking the contact of Domain 2 felsic metavolcanics and felsic metavolcanics, also crossed by the main WNW structure.
One other magnetic feature worth noting is a 2.5 km long ovoid magnetic low whose core is marked by a linear of spot magnetic highs located about 6 km west of the Swamp zone within the Domain 2 felsic metavolcanics. No geological information is known about this feature.
Radiometrics
The total count (TC), uranium (U), thorium (Th) and potassium (K) channels are all anomalously high over the Domain 1 paragneiss and Domain 5 granitic intrusions and confirm the magnetic interpretations of these lithologies. Radiometrics may be useful in confirming intrusions or alteration zones at the local scale identified by more detailed mapping. Elemental radiation is detected over land and is masked by water and overburden, so given the lakes and glacial overburden covering much of the property, radiometrics do not provide complete coverage in interpreting structures.
Ore Deposit Model
The Hard Cash property exhibits many of the characteristics of Archean orogenic gold deposits (link 3) typical of greenstone belts in Canada and elsewhere. Hard Cash has several geological characteristics similar to the new Dixie Property discovery (Great Bear Resources) near Red Lake as well as the operating gold mines of Agnico Eagle (Meliadine and Meadowbank) in Nunavut. These characteristics include:
[{"Characteristic": "Major Greenstone Belt", "Hard Cash": "Y"}, {"Characteristic": "Metavolcanic Host Rocks", "Hard Cash": "Y"}, {"Characteristic": "Large Granitic Intrusions", "Hard Cash": "Y"}, {"Characteristic": "Mafic-Felsic Volcanic Contact", "Hard Cash": "Y"}, {"Characteristic": "Multi-Phase Deformation", "Hard Cash": "Y"}, {"Characteristic": "Major Structural Break", "Hard Cash": "Y"}, {"Characteristic": "Secondary Fault Splays", "Hard Cash": "Y"}, {"Characteristic": "Tertiary Shear Zones", "Hard Cash": "Y"}, {"Characteristic": "Quartz-Sericite-Carbonate Alteration", "Hard Cash": "Y"}, {"Characteristic": "Stacked Quartz-Sulfide Veins", "Hard Cash": "Y"}, {"Characteristic": "High Grade Gold", "Hard Cash": "Y"}]
Gold Mineralization
At Hard Cash, the main Swamp high grade gold vein zone (link 4) has been traced continuously over 1.3 km and the secondary 4600 and Pond prospects have the potential to extend it by another 2 km to the southwest. This gold trend is open-ended.
Quartz-sulphide veins at Swamp occur within a 100-metre-wide quartz-sericite-carbonate altered shear zone. Historic bedrock chip samples returned grades up to 125 gpt gold and float samples returned grades up to 174 gpt gold and 1,192 g/t silver.
Historic bedrock grab samples at the 4600 and Pond prospects assayed up to 27.7 gpt and 11.4 gpt gold respectively. Historic float samples from two boulders located over 2 km south and southwest of the Swamp zone returned grades up to 6.81 gpt (Malachite prospect) and 12.45 gpt (PD2 prospect) gold respectively and a large boulder 450 metres southeast of the Swamp zone returned a grade of 95.7 gpt gold.
At the Nigel property (part of the Hard Cash property option) located 12 km west of Hard Cash, two structurally hosted Archean lode gold vein occurrences report historical assays up to 464.9 gpt gold. Confirmatory surface sampling by Silver Range Resources in 2016 returned grab samples assaying 398 gpt gold and 178 gpt gold from two of these showings.
Canarc considers all of the above assay results to be historical, Canarc's consulting geologist visited the property for a day in 2018 and sampled similar high-grade gold assays in rock chip samples including 72.6 gpt gold in float and 14.6 gpt gold in bedrock at the Swamp zone, but Canarc has not completed sufficient work to independently verify all of these historical results.
Phase 1 Exploration Program
Canarc plans to commence a CAD$200,000 Phase 1 exploration program in July to include reconnaissance prospecting of the Hard Cash property and detailed geological mapping, geochemical rock and soil sampling along the main Swamp high grade gold vein zone and southwest along the main break for a total of four km (link 5).
The goals of the Phase 1 exploration program are to evaluate the many gold prospects and related geological and geophysical features on the property, gain a detailed understanding of the lithological and structural controls on gold mineralization and define top priority targets for drilling.
Qualified Person
Dr. Jacob Margolis is a qualified person, as defined by National Instrument 43-101, and has approved the technical information in this news release. Dr. Margolis is engaged as a consultant to Canarc Resource Corp as Vice President of Exploration.
"Scott Eldridge"____________________Scott Eldridge, Chief Executive OfficerCANARC RESOURCE CORP.
About Canarc- Canarc Resource Corp. is a growth-oriented gold exploration company focused on generating superior shareholder returns by discovering, exploring and developing strategic gold deposits in North America. The Company is currently advancing two core assets, each with substantial gold resources, and has initiated a high impact exploration strategy to acquire and explore new properties that have district-scale gold discovery potential. Canarc shares trade on the TSX: CCM and the OTCQB: CRCUF.
For More Information- Please contact:Scott Eldridge, CEOToll Free: 1-877-684-9700 | Tel: (604) 685-9700 | Cell: (604) 722-5381Email:scott@canarc.net| Website:www.canarc.net
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of the United States private securities litigation reform act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. Statements contained in this news release that are not historic facts are forward-looking information that involves known and unknown risks and uncertainties. Forward-looking statements in this news release include, but are not limited to, statements with respect to the future performance of Canarc, and the Company's plans and exploration programs for its mineral properties, including the timing of such plans and programs. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "has proven", "expects" or "does not expect", "is expected", "potential", "appears", "budget", "scheduled", "estimates", "forecasts", "at least", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will be taken", "occur" or "be achieved".
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. Such risks and other factors include, among others, the Company's ongoing due diligence review in relation to the Acquisition, risks related to the uncertainties inherent in the estimation of mineral resources; commodity prices; changes in general economic conditions; market sentiment; currency exchange rates; the Company's ability to continue as a going concern; the Company's ability to raise funds through equity financings; risks inherent in mineral exploration; risks related to operations in foreign countries; future prices of metals; failure of equipment or processes to operate as anticipated; accidents, labor disputes and other risks of the mining industry; delays in obtaining governmental approvals; government regulation of mining operations; environmental risks; title disputes or claims; limitations on insurance coverage and the timing and possible outcome of litigation. Although the Company has attempted to identify important factors that could affect the Company and may cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, do not place undue reliance on forward-looking statements. All statements are made as of the date of this news release and the Company is under no obligation to update or alter any forward-looking statements except as required under applicable securities laws.
SOURCE:Canarc Resource Corp.
View source version on accesswire.com:https://www.accesswire.com/549241/Canarc-Reviews-Results-of-Airborne-Geophysical-Surveys-Flown-Over-the-Hard-Cash-Property-in-Nunavut |
Why Shares of Axalta Coating Systems Are Soaring on Wednesday
Shares ofAxaltaCoatingSystems(NYSE: AXTA)climbed more than 14% on Wednesday morning after the supplier of liquid and powder coatings said its board is reviewing strategic options. In layman's terms, the company is seeking a buyer.
Before markets opened on Wednesday, Axalta said that its board had formed a committee to review strategic alternatives, including the potential sale of the company, changes in capital allocation strategies, and changes to its strategic plan.
CEO Robert Bryant, who will be part of the committee, in a statement noted Axalta's progress bringing down costs and returning more than $380 million to shareholders over the past two years. He said the time is right to explore interest in the company.
Image source: Getty Images.
"Given Axalta's progress in recent years and its leading position as a global coatings company -- with 90% of 2018 sales derived from end markets where we have either the #1 or #2 global position -- we believe that now is the right time to review a full range of options in an effort to maximize value for all shareholders," Bryant said.
This is the second time in recent years Axalta has put out the "for sale" sign. Shares of Axaltaspikedin October 2017 on reports the company was in talks with Dutch coatings companyAkzo Nobelabout a potential deal, and the company was also rumored to have held talks with Nippon Paints around the same time.
Axalta in its statement noted that there are no assurances this time around that the company will strike a deal. But given how recently Axalta went through this process without finding a deal, management appears to be under significant pressure to find a way to boost shareholder value this time around or risk a blow to its credibility.
The company seemingly has some options. Warren Buffett'sBerkshire Hathaway(NYSE: BRK-A)(NYSE: BRK-B)is always on the hunt and alreadyowns about 10% of Axalta. It could also return to some of its suitors from two years ago, or reach out toSherwin-Williams(NYSE: SHW)to gauge its interest in a deal.
Investors have every reason to be excited but would be wise to keep the lessons learned from 2017 in mind. It's one thing to explore options; it's quite another to actually find a deal.
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Introducing Almadex Minerals (CVE:DEX), The Stock That Dropped 25% In The Last Year
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Investors can approximate the average market return by buying an index fund. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. Unfortunately theAlmadex Minerals Ltd.(CVE:DEX) share price slid 25% over twelve months. That's well bellow the market return of 1.4%. Almadex Minerals hasn't been listed for long, so although we're wary of recent listings that perform poorly, it may still prove itself with time. Even worse, it's down 11% in about a month, which isn't fun at all. Importantly, this could be a market reaction to the recently released financial results. You can check out the latest numbers inour company report.
View our latest analysis for Almadex Minerals
Almadex Minerals hasn't yet reported any revenue yet, so it's as much a business idea as an actual business. This state of affairs suggests that venture capitalists won't provide funds on attractive terms. 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 Almadex Minerals will find or develop a valuable new mine before too long.
Companies that lack both meaningful revenue and profits are usually considered high risk. You should be aware that there is always a chance that this sort of company will need to issue more shares to raise money to continue pursuing its business plan. While some companies like this go on to deliver on their plan, making good money for shareholders, many end in painful losses and eventual de-listing.
When it last reported its balance sheet in March 2019, Almadex Minerals could boast a strong position, with cash in excess of all liabilities of CA$9.7m. This gives management the flexibility to drive business growth, without worrying too much about cash reserves. But with the share price diving 25% in the last year, it could be that the price was previously too hyped up. You can see in the image below, how Almadex Minerals'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. Would it bother you if insiders were selling the stock? I'd like that just about as much as I like to drink milk and fruit juice mixed together. It only takes a moment for you tocheck whether we have identified any insider sales recently.
Given that the market gained 1.4% in the last year, Almadex Minerals shareholders might be miffed that they lost 25%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. With the stock down 3.5% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. If you would like to research Almadex Minerals in more detail then you might want totake a look at whether insiders have been buying or selling shares in the company.
We will like Almadex Minerals better if we see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Some Emerita Resources (CVE:EMO) Shareholders Have Taken A Painful 79% Share Price Drop
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As an investor, mistakes are inevitable. But you have a problem if you face massive losses more than once in a while. So take a moment to sympathize with the long term shareholders ofEmerita Resources Corp.(CVE:EMO), who have seen the share price tank a massive 79% over a three year period. That would certainly shake our confidence in the decision to own the stock. And over the last year the share price fell 79%, so we doubt many shareholders are delighted. Even worse, it's down 41% in about a month, which isn't fun at all. This could be related to the recent financial results - you can catch up on the most recent data by readingour company report.
See our latest analysis for Emerita Resources
With zero revenue generated over twelve months, we don't think that Emerita Resources has proved its business plan yet. You have to wonder why venture capitalists aren't funding it. As a result, we think it's unlikely shareholders are paying much attention to current revenue, but rather speculating on growth in the years to come. It seems likely some shareholders believe that Emerita Resources will find or develop a valuable new mine before too long.
Companies that lack both meaningful revenue and profits are usually considered high risk. You should be aware that there is always a chance that this sort of company will need to issue more shares to raise money to continue pursuing its business plan. While some such companies 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). Emerita Resources has already given some investors a taste of the bitter losses that high risk investing can cause.
Our data indicates that Emerita Resources had CA$1,900,850 more in total liabilities than it had cash, when it last reported in March 2019. That puts it in the highest risk category, according to our analysis. But with the share price diving 40% per year, over 3 years, it's probably fair to say that some shareholders no longer believe the company will succeed. You can click on the image below to see (in greater detail) how Emerita Resources's cash levels have changed over time.
Of course, the truth is that it is hard to value companies without much revenue or profit. What if insiders are ditching the stock hand over fist? I would feel more nervous about the company if that were so. It only takes a moment for you tocheck whether we have identified any insider sales recently.
Investors in Emerita Resources had a tough year, with a total loss of 79%, against a market gain of about 1.4%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 21% over the last half decade. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality businesses. Most investors take the time to check the data on insider transactions. You canclick here to see if insiders have been buying or selling.
For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on 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. |
NBA free agency: Julius Randle tops free-agent power-forward class
The best free agents on the market: Centers Even though the NBA has shifted toward a wing-oriented game, having a great power forward is often a precursor to success. Both NBA Finals teams had versatile fours in Draymond Green and Pascal Siakam and that was no coincidence. The modern power forward can ideally step out and score from the perimeter and at the rim, while also rebounding and offering some inside-outside defense with switch ability. This free-agent class of fours isnt deep on stars, but features quality depth and several undervalued role players. Here are the top potential free-agent power forwards on the market, with the negotiating period opening on June 30: 1. Julius Randle Age: 24 Randle quietly blew up in New Orleans. Despite the drama that swirled around Anthony Davis for half the season, Randle put up a 21/8/3 stat line. He also became a dependable shooter, which opens up his market in todays game. Hes not a great defender, so pairing him with a rim protector is necessary. But his offensive game fits just about anywhere. With Zion Williamson overlapping positions, Randle is likely on the move this summer. Fits with: Nets, Knicks, Clippers Julius Randle is coming off a low-key great year for the Pelicans. (Photo by Quinn Harris/Getty Images) 2. Kristaps Porzingis (restricted) Age: 24 Porzingis is coming off a lost year, missing the entire season while rehabbing from a torn ACL in 2018. Despite that, the Dallas Mavericks gave up a considerable package of picks and players to acquire Porzingis. There was buzz he could have returned late in the season, but with the Mavs out of the playoff picture, they took the conservative approach. Its not exactly Dallas or bust for Porzingis this summer, but considering the Mavericks investment in acquiring him, hes not going anywhere. Fits with: Mavericks 3. JaMychal Green Age: 29 Green was seen as a steal by the Memphis Grizzlies when they snagged him from the San Antonio Spurs in 2015. He grew into his own in Memphis, especially by adding range to his jumper. He fit in almost perfectly with the Los Angeles Clippers after they acquired him at the trade deadline because of his lunch-pail work ethic. L.A. would love to keep him, but bigger plans for its cap space could cause Green to be on the move. If so, hell become a target for many teams. Fits with: Clippers, Nets, Knicks, Lakers, Jazz 4. Thaddeus Young Age: 31 Young has been a good, but not great, player for years. He came into the NBA as a run-and-jump player, but has slowly rounded out his offensive game. Hes still able to get to the rim, but hes also added a reliable jumper. And his defense has always been good, especially with his ability to guard either forward spot. The Pacers value Young, but have a chance to make noise in free agency. That could free him up to be an undervalued steal for someone else. Story continues Fits with: Pacers, Jazz, Nets, Knicks, Lakers 5. Nikola Mirotic Age: 28 Mirotic has had quite the odyssey over the last couple of years. He was traded from Chicago to help New Orleans make a playoff push last season, and this year was flipped to Milwaukee to fill the same role. Now, Mirotic is a free agent and can pick his next destination. While his defense doesnt really allow for him to be a starter, Mirotics ability to stretch defenses makes him a fit for any contender. With the Bucks facing a large tax bill, they may not be able to pay the market rate to keep Mirotic. Fits with: Bucks, Jazz, Nets, Knicks Al-Farouq Aminu offers subtle, underappreciated value. (Getty Images) 6. Al-Farouq Aminu Age: 28 When Aminu was a priority, first-day signing for the Portland Trail Blazers in 2015, many around the league said, Huh? Four years later, everyone gets what Neil Olsheys play was. Aminu became the Blazers starting four and played a part in continuing the teams sustained period of success. Portland will try to retain the versatile forward, but a continuously mounting payroll could come into play. If it does, expect Aminu to have no shortage of offers. Fits with: Trail Blazers, Jazz, Nets 7. Taj Gibson Age: 34 Gibson is probably the most old-school power forward on this list. He doesnt really stretch the floor on offense, and his defense is best in and around the paint. But Gibson stays within himself and does what he does. Because he can defend both the bigger power forwards and centers equally well, Gibson has value to contenders as a backup big man. That alone will get him his next deal. Fits with: Jazz, Nets, Knicks, Lakers 8. Markieff Morris Age: 29 Its been a long, strange trip for Morris. He was hurt and ultimately traded at the deadline as a disappointing Wizards team looked to avoid paying the luxury tax. The Pelicans waived Morris because his acquisition was a straight salary dump. He then caught on with the Thunder, but never had the impact that was hoped for. Now, Morris is looking at getting his career back on track. Hell probably look at short-term deals with contenders, as he tries to rebuild his value in hopes of another big payday. Fits with: Lakers, Nets, Knicks 9. Bobby Portis (restricted) Age: 24 Portis is coming off the best season of his young career. He averaged career highs nearly across the board, but his most impressive improvement came as a shooter. Portis knocked down 39.3 percent of his 3-point shots on 3.8 attempts per game. Thats three straight years of incremental improvement for Portis, who we can now say is a good shooter. His career year came at the right time now that hes a free agent for the first time. While the Wizards have a hole at power forward, they also have some serious cap and tax concerns. If a team crafts a big, creative offer sheet, it could steal Portis from Washington. Fits with: Wizards, Nets, Knicks, Jazz 10. Kevon Looney Age: 23 Looney went from a player for whom the Warriors declined a rookie-scale team option to a critical rotation player on an NBA Finals team. His improvement offensively and toughness to play through fractures in his shoulder/chest during the playoffs has a lot of teams interested. Looney is an easy fit for any team because of his plug-and-play defensive ability and improving offensive game. Fits with: Warriors, Nets, Lakers, Celtics Other notable free agents: Ed Davis, Jared Dudley, Jeff Green, Rondae Hollis-Jefferson, Maxi Kleber (restricted), Kevon Looney, Mike Scott, Anthony Tolliver, Noah Vonleh More from Yahoo Sports: CP3, Harden relationship deemed unsalvageable From mid-major to NBA draft: Morant's historic rise Coach K on Zions NBA potential: 'Hes a gift from God' Why D-Wade supported son at Miami Pride View comments |
Why Facebook's Libra cryptocurrency isn't a bad thing: former FTC chief
What, you thought Facebook (FB) was going to dive deep into the cryptocurrency market without catching serious heat from lawmakers increasingly calling for breakups of Big Tech?
Think again.
Facebook took the wraps off its long awaitedcryptocurrency projecton Tuesday. Dubbed Libra, the crypto will let people buy things or send money with no fees. Several big-name companies such as Uber, Lyft and PayPal are on board to support the rollout of the platform, which is expected to go live in the first half of 2020.
Interestingly, one prominent figure in Washington DC offers up a somewhat contrarian take on Facebook’s crypto push.
“My thoughts are it might be a new form of competition in the marketplace,” former Federal Trade Commission (FTC) Commissioner Maureen Ohlhausen said on Yahoo Finance’sThe First Trade. As part of a week-long series on ‘The First Trade’ called ‘The Breakup’, we asked Ohlausen — who led the FTC from 2012 to 2017 — her thoughts on Facebook’s newest venture.
“Just because it’s being offered by a big company doesn’t necessarily make it a bad thing. It has to kind of stand on its own. I am concerned about going to a system in the U.S. where if you are a big company you can’t move to a new area of competition,” Olhausen said. “That has never been the law in the U.S. for general antitrust purposes. I would be concerned to say a company just has to stay in its lane and can’t change — I think ultimately that would have a negative impact on competition.”
Suffice it to say, not everyone well-versed in DC politics shares Ohlausen’s view on Facebook’s budding crypto platform. With Big Tech breakup talk the new flavor of the month in DC, the last thing many vote-seeking politicians want to see is Facebook getting into another potentially big business.
For example, take outspoken Senator Maxine Waters (D-Calif.).
“With the announcement that it [Facebook] plans to create a cryptocurrency, Facebook is continuing its unchecked expansion and extending its reach into the lives of its users,” Waters said in a statement on Tuesday.
“The cryptocurrency market currently lacks a clear regulatory framework to provide strong protections for investors, consumers, and the economy. Regulators should see this as a wake-up call to get serious about the privacy and national security concerns, cybersecurity risks, and trading risks that are posed by cryptocurrencies. Given the company’s troubled past,” Waters continued. “I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action. Facebook executives should also come before the Committee to provide testimony on these issues.”
Meanwhile, Republican Senator Josh Hawleystruck a negative tone on Facebook’s cryptocurrency in an interview with Yahoo Finance. Hawley said the announcement is akin to Facebook “expanding its monopoly.”
“I am very concerned about Facebook’s behavior,” Hawley said, adding he is hoping the company is investigated by the FTC.
Brian Sozzi is an editor-at-large and co-host of ‘The First Trade’ at Yahoo Finance. Follow Brian Sozzi him on Twitter@BrianSozzi
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NFL star Myles Jack's candle business is heating up
Jacksonville Jaguarslinebacker Myles Jack has tried his hand at candle-making and the results are hot.
Jack, 23, toldUSA Today Sportsthat he started making candles during the offseason to kill some time. He learned how to make them through YouTube tutorials and articles.
“I always take baths with candles … so I made my own little lavender candle. I lit it, and I was reading in the bath, and I was like, ‘Oh, OK. This candle’s actually all right,’” Jack said.
After posting a story about his candle to his Instagram, people became interested. The athlete said he became inspired to start his own business after seeing a commercial with former Tennessee Titans players Michael Griffin and Brian Orakpo, who have a cupcake shop together.
Jack started taking orders through his personal Instagram account but then decided to make a business account after he received an abundance of requests. The NFL star said some of his teammates teased him at first about the candles but became more interested after seeing what a success he had made his business into.
"Some people tried to partner up with me on the business, and some people were giving me ideas. I’m like, ‘No, you were being haters at first. Now you want to team up with me.’ It's just funny how they switched from one side to the other," Jack said.
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Jack used his proceeds to give back to the community, including buying pizza, juice and cookies for Jacksonville’s River City Science Academy. He said he was in talks with the Boys & Girls Club and has visited veterans, children’s hospitals and retirement homes.
As of June 3, Jack said he has sold about $11,870 worth of candles that come with a price tag of $20.
As for the future, Jack has no plans on stopping. He said he aims to only “get bigger” from here. As for now, he handles the business but will likely call in help once the NFL season begins.
Like Jack, some NFL players have side hustles. Philadelphia Eagles safety Malcom Jenkins has his own designer menswear store in Philadelphia while Houston Texans linebacker Whitney Mercilus and chef Chris Shepherd opened their restaurant One Fifth in 2017.
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Tread Carefully With Leveraged Gold ETF
This article was originally published onETFTrends.com.
TheDirexion Daily Gold Miners Index Bull 3X Shares (NUGT), one of the most heavily traded leveraged exchange traded funds, is on a tear. NUGT is up 13.45% over the past week and higher by more than 45% this month, prompting some market observers to speculate the fund could be poised for a breather.
NUGT seeks daily investment results, before fees and expenses, of 300% of the daily performance of the NYSE Arca Gold Miners Index, according to the fund’sfact sheet. “The NYSE Arca Gold Miners Index (GDMNTR) is a modded market capitalization weighted index comprised of publicly traded companies that operate globally in both developed and emerging markets, and are involved primarily in mining for gold and, to a lesser extent, in mining for silver.”
Some traders believe NUGT could be in for a near-term decline, which could bring opportunity with NUGT's bearish counterpart, theDirexion Daily Gold Miners Bear 3x Shares (DUST) .
“First, consider that last week's gain for the ETF, totaling 5.8%, was its third consecutive weekly advance -- marking NUGT's longest weekly win streak since around the time of the stock market's late-December lows,”according to Schaeffer's Investment Research. “As a result, the bullishly leveraged ETF notched a Friday close above its descending 80-week moving average for the first time since the week prior to the November 2016 U.S. presidential election. Previously, this long-term trendline had acted as stiff resistance for all NUGT rally attempts since February.”
NUGT Vs. DUST
DUST seeks daily investment results before fees and expenses of 300 percent of the inverse of the daily performance of the NYSE Arca Gold Miners Index. The fund invests in swap agreements, futures contracts, short positions or other financial instruments that, in combination, provide inverse or short leveraged exposure to the index equal to at least 80% of the fund’s net assets.
“What's more, NUGT intensified an ongoing assault on its 320-day moving average,” notes Schaeffer's. “The fund closed four straight days above this level for the third time in 2018, and has closed eight of the last nine trading days above this trendline. Again, the leveraged gold mining tracker hasn't enjoyed a streak like that above its 320-day since the fourth quarter of 2016.”
While NUGT may look due for a pullback, geopolitical headlines could give the ETF the fuel it needs to keep surging.
“In the short term, any sentiment-rattling headlines regarding Iran, trade, or the Fed's future rate path could easily -- but, perhaps, surprisingly to some -- give NUGT the momentum boost needed to extend its fledgling breakout above long-time resistance levels,” according to Schaeffer's.
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Joe Biden on racist colleague: 'He never called me boy'
Joe Biden dismissed criticism from the new New Left wing of his party that his approach to politics is old-fashioned by fondly recalling his experience of civility in the Senate as he served with two segregationist senators. Democratic presidential candidate Biden, 76, speaking at a fundraiser in New York City Tuesday evening, waxed nostalgic for the times of political fellowship when he was a senator in the 1970s and 1980s, contrasting it to today when political rivals are considered the enemy. To emphasize his point, Biden cited his ability to work with staunch supporters of racial segregation like the senators James O. Eastland of Mississippi and Herman Talmadge of Georgia, who Biden said was "one of the meanest guys I ever knew. I was in a caucus with James O. Eastland, Biden said and then, imitating a Southern accent, added that the senator never called me boy, a racial epithet used against black men. James O. Eastland and Joe Biden. (Photo illustration: Yahoo News; photos: AP) He always called me son, said Biden. Another 2020 hopeful, Senator Cory Booker, D-New Jersey, tore into Biden comments in a statement released Wednesday, saying, You dont joke about calling black men boys. Men like James O. Eastland used words like that, and the racist policies that accompanied them, to perpetuate white supremacy and strip black Americans of our very humanity. Vice President Bidens relationships with proud segregationists are not the model for how we make America a safer and more inclusive place for black people, and for everyone, he continued. pic.twitter.com/pZ7RRxQzfM Cory Booker (@CoryBooker) June 19, 2019 Eastland, who was often referred to as the the Godfather of Mississippi Politics, was a wealthy plantation owner who opposed integration the ''mongrelization'' of the races as he called it and the civil rights movement during his long tenure as chairman of the Senate Judiciary Committee, which he led when Biden, a young self-proclaimed liberal from Delaware, was sworn in in 1973. Story continues From 1956 through to his retirement in 1978, Eastland insisted on the blue-slip process, requiring that judicial nominees receive positive recommendations from both of their states senators before the nomination could be considered by the committee. The policy has been criticized as abusive and employed by Eastland to give veto power to himself and his fellow Southern senators to block nominees who were in favor of desegregation and civil rights. Previously, when campaigning for Alabama Democrat Doug Jones in October 2017, Biden, in a call for bipartisanship, invoked his relationship with Eastland, who he said addressed the former lawmaker as son instead of senator. Even in the days when I got there, the Democratic Party still had seven or eight old-fashioned Democratic segregationists, Biden said. Youd get up and youd argue like the devil with them. Then youd go down and have lunch or dinner together. The political system worked. We were divided on issues, but the political system worked. "At least there was some civility, he said Tuesday, on the eve of Juneteenth, which commemorates the end of slavery. We got things done. We didnt agree on much of anything. We got things done. We got it finished. But today you look at the other side and youre the enemy. Not the opposition, the enemy. We dont talk to each other anymore. I know the new New Left tells me that Im this is old-fashioned, the former vice president and Democratic frontrunner continued. Well, guess what: If we can't reach a consensus in our system, what happens? It encourages and demands the abuse of power by a president. That's what it does. You have to be able to reach consensus under our system our constitutional system of separation of powers." On the campaign trail, Biden has been forced to explain to progressive voters not only what he called his old-fashioned social behavior, especially around women, but also past actions such as supporting the infamous 1994 crime bill that has been blamed for the mass incarceration of black men and his stance against busing students to desegregate schools in the mid-1970s. Although Biden ran for the Senate in 1972 as a supporter of desegregating U.S. schools, in office he opposed busing students out of their local districts to promote racial integration. In 1975 he sponsored a major anti-busing amendment. The courts have gone overboard in their interpretation of what is required to remedy unlawful segregation, Biden said in a 1975 interview. It is one thing to say that you cannot keep a black man from using this bathroom and something quite different to say that one out of every five people who use this bathroom must be black. Bidens position pitted him against the chambers only black senator at the time, Edward Brooke, R-Mass., who called one of Bidens anti-busing amendments the greatest symbolic defeat for civil rights since the passage of the Civil Rights Bill in 1964. During that time, Biden defended his support for anti-busing policies in an interview with NPR , describing busing as a means to integrate people so that they all have the same access and they learn to grow up with one another, but all the rest is a rejection of the whole movement of black pride. In his 2007 autobiography, "Promises to Keep," Biden wrote that the anti-busing debate was a "liberal train wreck and recalled how a few of my colleagues pulled me aside to ask how and when the racists had gotten to me. _____ Read more from Yahoo News: Trump wants his next press secretary to be a cable news 'street fighter' For politicians, the D.C. elite and even a presidential candidate, a Navy program has been an attractive fast-track path to military service Trump admits his Cabinet had 'some clinkers' Confronted with multiple errors in his new Trump book, a testy Michael Wolff says, 'You have to trust me' Why are people willing to risk death for a selfie? PHOTOS: Dancing under the stars |
Bridge the disconnect: 3 strategies to make your home-based employees feel less remote
Question:I have been in business for myself for quite a while and am encountering a new problem. These days, employees increasingly want to work remotely, which is OK with me. While they generally get their work done, getting them to be engaged and be part of the team is increasingly difficult. What can I do? – Stephen
Answer:Back when I had my first real job, I was commuting over three hours a day, so I eventually asked if I could “telecommute,” as it was called then. My boss agreed, and it sort of worked, but not really, and within a year I quit and found a job closer to home.
Frankly, not only did I lack motivation those three days a week I worked from home, but I, too, felt disconnected.
The good news is that remote working has become far more commonplace today than when I helped blaze that trail, and there is a lot of evidence on how to make it work for all involved.
Not everyone is cut out to be a remote employee. It takes a certain amount of self-discipline and internal motivation. You will head problems off at the pass if you begin by hiring the right people. What does that mean?
• You want people who are action-oriented and who can take initiative.
• You also want people who are independent and do not need constant supervision and reinforcement.
• As well, the best remote workers are those who can live without the daily social aspect of work.
• You will definitely want employees who can express themselves and who write well, as so much of what they will do will be communicated via email.
As we know all too well, email can quickly become a cumbersome, clunky tool, especially when folks begin to reply-all. Instead, you want to get some digital tools that allow you to check in with your remote worker and vice versa. Slack, for instance, is a great virtual chat room that often obviates the need for email.
More:Are you hoping to work remotely? Here's what hiring managers are looking for
More:Want $10,000 to move to Vermont? Get your application ready now
More:How can I get my company to let me work from home? Ask HR
Similarly, remote work works better when there is some sort of central hub that helps manage things. Project management sites include places like Basecamp, Monday.com and Zoho.
Finally, with regard to digital tools, you also need to integrate video chat into your remote workforce tool chest. Skype is my favorite, but other options might include GoToMeeting, Facetime, Facebook Messenger and Zoom.
Whatever video chat tool you choose, studies show that remote workers are happier and more productive when they are engaged during online conferences. Ask them questions, get their take, ask for feedback.
All workers, not just remote ones, work best when they have a crystal-clear idea about what is expected of them, and yet that is not always the strong suit of small-business owners and managers. When you run a small shop, getting your team to understand what their job and tasks is easier. Not so when they work outside the shop.
That is why, when it comes to remote work, much of the onus falls on the owner/manager. It is their job to let the crew know what is expected of them, how work needs to be delivered, where and when, and so on. Employees are not mind readers; if you don’t communicate expectations and processes clearly, you can’t expect that the employee will somehow know.
In the end, remote workers get disengaged because they don’t feel part of the team. Obviously then, an important way to keep them in the fold is to meet up in person on a regular basis.
That way, they won’t up and quit one day, looking for greener pastures closer to home.
Steve Strauss is an attorney, popular speaker, and the bestselling author of 17 books, including "The Small Business Bible." You can learn more about Steve atMrAllBiz.com, get even more tips at his siteTheSelfEmployed, and connect with him on Twitter at@SteveStraussand on Facebook atTheSelfEmployed.
This article originally appeared on USA TODAY:Bridge the disconnect: 3 strategies to make your home-based employees feel less remote |
Trump supporters in Florida say the president needs a third term
Tens of thousands of President Trumps supporters descended upon the Amway Center in Orlando on Tuesday to hear the president launch his 2020 campaign . Their positions were in sync. Many said they have enjoyed the presidents time in office thus far and tout the strong economy. Supporters also said that illegal immigrants have no place in the country and that if Trump can have a third term, theyre all for it. Maybe the Democrats would get it right during the third term and leave him alone so he could do even more, said one Trump supporter. Rally-goers waited on line for more than 30 hours ahead of the doors opening for the main event, dealing with heavy rain to secure a prime spot to hear the president speak. Outside the venue there was live music, food trucks and frequent chants of U-S-A, U-S-A. Inside, attendees bonded over their excitement about seeing the president. Our patriotic movement has been under assault from the very first day, Trump said in front of the energized crowd. We accomplished more than any other president has in the first two and a half years of a presidency and under circumstances that no president has had to deal with before. (Photo by Eva Marie Uzcategui T./Anadolu Agency/Getty Images) The rally served as the official starting point of Trumps reelection campaign against a crowded Democratic field that already has 23 proposed candidates. Florida, which holds 29 Electoral College votes, is the biggest swing state in the nation and a must-win for the president. While thousands of supporters packed the arena to express their praise for Trump, not all of Orlando is behind another four years under the current administration. The Orlando Sentinel, the citys most widely distributed newspaper, put out a scathing editorial just hours before the rally in which it endorsed anyone but Trump. Its only the fifth time in the papers history that it hasnt supported the GOP candidate. Enough of the chaos, the division, the schoolyard insults, the self-aggrandizement, the corruption, and especially the lies, said the editorial. The nation must endure another 1½ years of Trump. But it neednt suffer another four beyond that. Story continues But the presidents team doesnt care too much about what the Sentinel has to say. Kayleigh McEnany, the national press secretary of the Trump 2020 campaign, said Americans are smart and dont depend on newspapers. Newspaper endorsements are meaningless, she said. People dont need to be told by a newspaper who to vote for. They need to know whos going to be more affordable for my kids to go to college, whos going to make this economy better
and they dont depend on the Orlando Sentinel for that. (Photo by Eva Marie Uzcategui T./Anadolu Agency/Getty Images) Despite the papers critique, Trump supporters at the rally were pleased with the presidents first two and a half years in office. They are confident a wall is being built and said they would welcome having him serve a third term in office. If he could come into a third term just like Mayor Bloomberg had a third term in New York City had a third term, [Im down], said one supporter. We got him. _____ Read more from Yahoo News: Trump wants his next press secretary to be a cable news 'street fighter' For politicians, the D.C. elite and even a presidential candidate, a Navy program has been an attractive fast-track path to military service Trump admits his Cabinet had 'some clinkers' Confronted with multiple errors in his new Trump book, a testy Michael Wolff says, 'You have to trust me' Why are people willing to risk death for a selfie? PHOTOS: Dancing under the stars |
The Latest: Retired pilot says iPad training not enough
WASHINGTON (AP) — The Latest on the House aviation subcommittee hearing on the Boeing 737 Max (all times local):
11:35 a.m.
Retired pilot Chesley "Sully" Sullenberger says pilots should practice the failure of Boeing flight-control software on simulators, not planes full of passengers.
Sullenberger told a congressional panel Wednesday that he used a simulator to recreate the scenario that occurred — an automatic nose-down pitch of the plane, based on a faulty sensor reading — before Boeing 737 Max jets crashed in Indonesia and Ethiopia.
The "Miracle on the Hudson" pilot said the "startle factor" when the software misfired was real and confusing, and he understood the difficulty the crews faced to regain control.
Sullenberger said all 737 Max pilots should get detailed training on flight simulators.
"Reading about it on an iPad is not even close to sufficient," he told the House aviation subcommittee.
Boeing is proposing computer-based training, and technical experts at the Federal Aviation Administration hold the same view, although FAA officials have not made a final decision.
Sullenberger was a US Airways pilot in 2009 when he safely landed an Airbus jet on New York's Hudson River after bird strikes knocked out the engines during takeoff from nearby LaGuardia Airport.
___
9:25 a.m.
The head of the pilots' union at Southwest Airlines says that his group will seek compensation from Boeing for lost flying assignments and the costs of complying with a Justice Department subpoena for its records, which are part of the government's criminal investigation into Boeing.
The statement comes as a House aviation subcommittee holds its third hearing into the Boeing 737 Max. The plane has been grounded after two crashes killed a total of 346 people.
Wednesday's hearing will include testimony from pilots and flight attendants, who will speak of a loss of trust in aviation safety. The previous two hearings have focused on the Federal Aviation Administration oversight of Boeing, and whether it has been tough enough.
___
12 a.m.
The president of the pilots' union at American Airlines says Boeing made mistakes in its design of the 737 Max and not telling pilots about new flight-control software on the plane.
Daniel Carey says it won't be easy to restore trust in aviation safety. He is scheduled to testify about the matter Wednesday at a congressional hearing.
Chesley "Sully" Sullenberger, the captain who safely landed a disabled jetliner on the Hudson River in 2009, is also expected to testify. He has said that Boeing was more focused on protecting its product, the Max, than protecting the people who use it.
The comments underscore the challenges Boeing faces in winning the confidence of pilots — and eventually passengers — that the Max can be made safe to fly after accidents that killed 346 people. |
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More aboutLaptops,Dell,Mashable Shopping,Inspiron, andTech |
Oil Dips as Trade War Fears Pip U.S. Crude Draw, Potential Rate Cut
By Barani Krishnan
Investing.com - Even a crude drawdown and potential U.S. rate cut down the road couldn’t help oil bulls.
Crude prices settled down on Wednesday after the Energy Information Administration reported the first U.S. crude stockpile draw in three weeks.
The market also bucked expectations for a late rebound by remaining down after the Federal Reserve indicated it was open to an interest rate cut if needed. Monetary easing basically weakens the U.S. dollar and stimulates investments in dollar-denominated alternatives like oil, gold and other commodities.
New York-traded West Texas Intermediate crude settled down 14 cents, or 0.3%, at $53.76 a barrel. The U.S. crude benchmark rallied almost 4% on Tuesday, its biggest one-day gain in five months, after President Donald Trump tweeted that he would be meeting his Chinese counterpart Xi Jinping next week at the G-20 to resume trade talks.
The president’s tweet raised hopes that the two leaders would find a way to resolve the escalation of tariffs in both countries, which businesses fear could spark a global recession.
London-traded Brent crude, the benchmark for oil outside of the U.S., closed the official trading session down 29 cents, or 0.5%, at $61.85 per barrel.
Crude oil inventoriesdecreased by 3.11 million barrels in the week to June 14, according to the EIA. That easily beat the 1.08-million-barrel draw analysts had expected for last week, though it was nowhere close to offsetting the combined build of nearly 9 million barrels in two previous weeks.
Gasoline inventoriesunexpectedly decreased by 1.69 million barrels, compared to expectations for a gain of 0.94 million barrels.Stockpiles of distillates, which include heating oil, diesel and other premium transport fuels such as jet and rail fuel, dropped by 0.55 million barrels, compared to forecasts for a build of 0.71 million.
Prior to its latest dataset, the EIA reported a net growth of some 33 million barrels in crude over the past 12 weeks that crossed into the current peak driving season in the United States. Combined with recession fears generated by the U.S.-China trade war, oil prices lost about 20%from April’s highs, falling into a bear market.
“The trade war is what’s throttling the market now for oil,” said John Kilduff, partner at New York energy hedge fund Again Capital. “We had an EIA report with good crude, gasoline and products drawdowns, but with all the builds we’ve had in past weeks, the market’s thinking is that one swallow does not a summer make.”
“Basically, if we want to get this market and any other going, you’re going to need to resolve this trade war,” Kilduff said. “Rate cuts and stimulus alone might not help the situation we have right now.”
Federal Reserve Chairman Jerome Powell told a news conference that there was not much support from his fellow central bankers for a rate cut this month.
“A number of people wrote down rate cuts, but all of those but apparently one felt that it would be better to see more before moving,” Powell said.FOMC member James Bullard was the lone dissenter.
The Fed's monthly policy statement said that while it expected sustained expansion economic activity, strong labor market conditions, and inflation near its symmetric 2% objective, “uncertainties about this outlook have increased”.
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Women's Sex Toy Startup Sues New York City MTA Over 'Double Standard' in Advertising Rules
New York’s Metropolitan Transit Authority has never allowed advertising of sex toys—but it’s run plenty of sexually suggestive ads, notably for products addressing male-oriented issues like erectile dysfunction.
Sex toy startup Dame, which manufactures products geared toward women, developed an ad campaign featuring small vibrators and phrases including, “Toys, for sex.” The campaign was rejected by the MTA in December, and now Dame is suing the transit authority for damages. The rejection “reveals the MTA’s sexism, its decision to privilege male interests in its advertising choices, and its fundamental misunderstanding of Dame’s products,” the company said in its complaint.
“Just because we are talking about sex in public, doesn’t mean we are saying you should have sex in public,” Dame CEO Alexandra Fine says, “and just because we are talking about sex doesn’t mean it has to be arousing.”
The five-year-old, Brooklyn-based startup says it invested $150,000 in the defunct ad campaign and “suffered substantial economic losses” from the MTA’s decision. Its lawsuit in the Southern District of New York cites the MTA’s approval of ads for the Museum of Sex, birth control pills, and treatment for erectile dysfunction.
The MTA’s guidelines on advertising in this category—a marketprojected to reach$35.5 billion worldwide by 2023—specifically prohibit “advertisements for sex toys or devices for any gender.”
“The MTA’s advertising is in no way gender-based or viewpoint discriminatory,” MTA Chief External Affairs Officer Maxwell Young said in a statement.
Dame’s lawsuit arrived the same week that women’s co-working spaceThe Wing had an ad campaign rejected by Boston’s transit authority. In that campaign, the phrases “Want to mute the mansplainers and start your own conversation?” and “The World was built for men. The Wing is built for you.” were flagged as “political issues or matters of public debate” in violation of the Massachusetts Bay Transportation Authority’s advertising policy.
Fine hopes Dame’s lawsuit will address both the MTA’s stance on advertising sex toys and what she sees as a gender-based bias and double standard in what is and is not permitted to appear around New York.
“I was very much willing to work with them,” Fine says. “In life and sex, you know it’s always about a push and a pull.”
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—Listen to our new audio briefing,Fortune500 Daily
Keep up with the world’s most powerful women withFortune‘sBroadsheetnewsletter. |
How Much Did OMNOVA Solutions Inc.'s (NYSE:OMN) CEO Pocket Last Year?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Anne Noonan became the CEO of OMNOVA Solutions Inc. (NYSE:OMN) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for OMNOVA Solutions
According to our data, OMNOVA Solutions Inc. has a market capitalization of US$253m, and pays its CEO total annual compensation worth US$2.3m. (This is based on the year to November 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$699k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.1m.
As you can see, Anne Noonan is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean OMNOVA Solutions Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at OMNOVA Solutions has changed over time.
On average over the last three years, OMNOVA Solutions Inc. has shrunk earnings per share by 30% each year (measured with a line of best fit). Its revenue is down -3.5% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested inthisfreevisualization of analyst forecasts.
Given the total loss of 15% over three years, many shareholders in OMNOVA Solutions Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
We examined the amount OMNOVA Solutions Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
Over the same period, investors would have come away with nothing in the way of share price gains. Some might well form the view that the CEO is paid too generously! Whatever your view on compensation, you might want tocheck if insiders are buying or selling OMNOVA Solutions shares (free trial).
Important note:OMNOVA Solutions may not be the best stock to buy. You might find somethingbetterinthis list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
The Zacks Analyst Blog Highlights: Keane, C&J, Phillips 66, Encana and Royal Dutch
For Immediate Release
Chicago, IL – June 19, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog includeKeane Group Inc.FRAC,C&J Energy ServicesCJ,Phillips 66PSX,Encana CorporationECA andRoyal Dutch Shell plcRDS.A.
Here are highlights from Tuesday’s Analyst Blog:
Oil & Gas Stock Roundup: CJ, FRAC, PSX and More
It was a week where oil prices hit its lowest in five months. Meanwhile, natural gas futures erased some of the steep losses that have taken the commodity to lows not seen since June 2016.
On the news front, oilfield service providersC&J Energy ServicesandKeane Group Inc.have agreed to merge in an all-stock deal worth $746 million, while diversified energy companyPhillips 66unveiled plans to form two pipeline project joint ventures for crudfe oil transportation.
Overall, it was a mixed week for the sector. While West Texas Intermediate (WTI) crude futures fell 2.7% to close at $52.51 per barrel, natural gas prices moved up 2.1% for the week to finish at $2.387 per million Btu (MMBtu). (See the last 'Oil & Gas Stock Roundup' here: Comstock's Acquisition, Shell's Strategy Update & More)
The U.S. crude benchmark hit the lowest settlement level since January following the U.S. Energy Department's latest inventory release. The report showed that crude stockpiles recorded a much bigger-than-anticipated weekly build, ballooning to their highest since July 2017. On a further bearish note, the report revealed that gasoline inventory increased from its previous week level.
Analysts and industry watchers are also worried over signs of worsening oil demand growth as the U.S.-China trade spat continue to threaten a major slowdown in global economy.
On the other hand, natural gas prices recovered from previous week's sharp retreat after a government report showed a smaller-than-expected increase in supplies. However, the commodity remained close to the lowest levels in three years because of growing fears that soaring production is outpacing demand growth
Recap of the Week's Most Important Stories
1. In a bid to improve pricing power in the oilfield service space, C&J Energy Servicesand Keane Group Inc. have announced a merger agreement. Energy investors are overwhelmed with the announcement as reflected by the C&J Energy and Keane stock jump of roughly 20% and 7%, respectively, on Jun 17.
The combination will create a diversified and leading oilfield services company. The combined firm, where each of C&J Energy and Keane will have 50% ownership, will have a pro-forma enterprise value of $1.8 billion, added C&J Energy and Keane. The all-stock agreement is likely to consummate by the December quarter of 2019 and companies expect the deal to prove immediately accretive to cashflow.
Following cheaper rates and intense competition in the oilfield service space, companies are looking for mergers and consolidations to expand market share and improve pricing power. Synergies from mergers will enable oilfield service companies improve operational efficiency and lower capital spending requirements, per an analyst quote. (Read more Can Consolidation Help Revive Oilfield Service Stocks?)
2. Phillips 66 recently announced that it has formed separate joint ventures (JVs) with Bridger Pipeline LLC and Plains All American Pipelineto create two pipelines in key shale plays.
Phillips 66 formed a 50-50 JV with Bridger Pipeline LLC, namely Liberty Pipeline LLC, which will build the 24-inch Liberty Pipeline. The pipeline is designed to provide crude oil shipping services from shale production sites in the Rockies and Bakken regions to Cushing, OK. The Liberty Pipeline, which is backed by long-term volume commitments, is expected to help producers or clients to reach several Gulf Coast markets in Corpus Christi, Ingleside and Houston, TX. The pipeline is expected to come online in first-quarter 2021.
The midstream giant also created a 50-50 JV with Plains All American, namely Red Oak Pipeline LLC, to build the Red Oak Pipeline system. This pipeline will connect producers in Cushing and the Permian Basin with the markets in Corpus Christi, Ingleside, Houston, and Beaumont of Texas. Given dearth of takeaway capacity haunting producers in the Permian Basin for the last few quarters, the Red Oak Pipeline system is expected to serve as an oasis.(Read more Phillips 66 Creates 2 JVs for Liberty & Red Oak Pipelines)
3. Canadian energy playerEncana Corporationrecently provided an update on second-quarter-to-date production, underscoring strength of operations.
The Zacks Rank #2 (Buy) company expects second-quarter output within 585-595 thousand barrels of oil equivalent per day (MBOE/d), higher than 338 MBOE/d and 566.6 MBOE/d recorded in the year-ago period and the last reported quarter, respectively. Encana expects liquids to account for 54% of the total output in the second quarter.
You can seethe complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Canadian energy behemoth reiterated its 2019 capex and output guidance. The company expects capital spending in the band of $2.7-$2.9 billion. Full-year production is anticipated within 560-600 MBOE/d.(Read more Encana to Gain From Output Growth, Maintains 2019 View)
4.Royal Dutch Shell plcrecently shipped its first liquified natural gas (LNG) cargo from the Prelude floating liquefied natural gas (FLNG) facility in Australia. The startup of one of the world's most anticipated LNG projects marks a milestone for the European energy giant. Notably, the flagship project is a joint venture among Shell, Inpex Corporation, Korea Gas Corporation and Taiwan's CPC Corporation, with Shell being the chief operator, owning a 67.5% stake.
The Prelude project will further bolster Australia's LNG exports, which overtook Qatar as the largest LNG exporting country in 2018. Prelude, on becoming fully functional, will aid Australia in retaining its current position as the world's largest LNG exporter. Australia's LNG export is likely to total 80 million metric tons per year.
Prelude will handle production, liquefaction, storage and transfer of LNG at sea, along with processing, exporting and condensation of liquefied petroleum gas. The facility has a production capacity of around 5.3 million tons per annum (mtpa) of liquids, with LNG accounting for 3.6 mtpa or 68% of the total capacity. Markedly, Shell dispatched its first NGL cargo from Prelude in March 2019.(Read more Shell Ships 1st LNG From Prelude, To Sell Martinez Refinery)
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportPhillips 66 (PSX) : Free Stock Analysis ReportEncana Corporation (ECA) : Free Stock Analysis ReportRoyal Dutch Shell PLC (RDS.A) : Free Stock Analysis ReportC&J Energy Services, Inc. (CJ) : Free Stock Analysis ReportKeane Group, Inc. (FRAC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
'Avengers: Endgame' willing to do whatever it takes to top 'Avatar' at the box office
Disney (DIS)and Marvel Studioswill be adding a deleted sceneand post-credit tribute to “Avengers: Endgame,” Screen Rant reports.
“Not an extended cut, but there will be a version going into theaters with a bit of a marketing push with a few new things at the end of the movie,” Marvel Studios President Kevin Feige told Screen Rant. “If you stay and watch the movie, after the credits, there’ll be a deleted scene, a little tribute, and a few surprises. Which will be next weekend.”
The re-release on June 28 may entice more consumers to head back to theaters and help the film come closer to beating “Avatar’s” box office world record of $2.788 billion.
But can “Avengers” take out a foe that seems to be even tougher than Josh Brolin’s “Thanos”?
“‘Endgame’ is only about $45 million away from ‘Avatar’ right now,” Jeremy Conrad, a media influencer and founder of the websiteMCU Cosmic, told Yahoo Finance.
“With the current box office slump, they may be uniquely positioned to pick up that slack; even though it will be the second weekend of ‘Toy Story 4,’” added Conrad, whose site covers the “Marvel Cinematic Universe.”
“Endgame” has already grossed over $2.7 billion and is the second highest grossing movie of all time. It took out another James Cameron film in early May: “Titanic,” which grossed over$2.1 billion.
“Avatar added $33 million during its re-release. Endgame could do more,”Daniel Richtman, a movie commentator and Twitter influencer, told Yahoo Finance. “Plus [Spiderman] ‘Far From Home’ will give it another boost and vice versa.”
Donovan Russo is a writer for Yahoo Finance. Follow him@Donovanxrusso.
Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,LinkedIn, andreddit. |
Web Server Security Firm Cloudflare Announces Launch of Ethereum Gateway
Web serversecurityservice firm Cloudflare announced the launch of its Ethereum gateway in ablog poston June 19.
Per the announcement, the gateway — which is part of the company's broader Distributed Web Gateway toolset — lets users “interact with the Ethereum network without installing any additional software.”
The system purportedly allows one to access the network and interact withsmart contractsthrough a custom hostname. Furthermore, the new tool can be used in combination with the firm’s Interplanetary File System (IPFS) gatewaylaunchedin September 2018:
“In conjunction with the IPFS gateway, this allows hosting websites and resources in adecentralizedmanner.”
Cloudflare also notes that while its gateway is centralized, it makes the number of companies offering such services greater, thus increasing the overall reliability of the ecosystem.
The company noted that it supports technologies that distribute trust, and that it hopes the gateway will facilitate decentralization.
The issue of centralizationhas previously been raisedabout Infura, the infrastructure-as-a-service arm of Ethereum-focused development companyConsenSysthat allows decentralized app (DApp) developers to deploy their DApps without hosting their own full node. Some have argued that, in using Infura, developers rely on infrastructure entirely operated by ConsenSys and hosted by Amazon Web Services, which creates a single point of failure.
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The Opus Bank (NASDAQ:OPB) Share Price Is Down 41% So Some Shareholders Are Getting Worried
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As an investor its worth striving to ensure your overall portfolio beats the market average. But the risk of stock picking is that you will likely buy under-performing companies. Unfortunately, that's been the case for longer termOpus Bank(NASDAQ:OPB) shareholders, since the share price is down 41% in the last three years, falling well short of the market return of around 48%. And over the last year the share price fell 29%, so we doubt many shareholders are delighted. The silver lining is that the stock is up 2.5% in about a week.
Check out our latest analysis for Opus Bank
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Opus Bank saw its EPS decline at a compound rate of 28% per year, over the last three years. This fall in the EPS is worse than the 16% compound annual share price fall. So the market may not be too worried about the EPS figure, at the moment -- or it may have previously priced some of the drop in.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
Thisfreeinteractive report on Opus Bank'searnings, revenue and cash flowis a great place to start, if you want to investigate the stock further.
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Opus Bank, it has a TSR of -39% for the last 3 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted thetotalshareholder return.
Investors in Opus Bank had a tough year, with a total loss of 27% (including dividends), against a market gain of about 4.6%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 5.7% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. Before spending more time on Opus Bankit might be wise to click here to see if insiders have been buying or selling shares.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss thisfreelist of companies that have proven they can grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Ford Calls Mustang Shelby GT500 Its 'Most Powerful Street-Legal' Vehicle Ever
Fordis looking to corner the muscle car market with the new Mustang Shelby GT500.
The automaker announced Wednesday the forthcoming vehicle will be “themost powerful street-legal Ford ever,” with 760 horsepower and 625 lb.-ft of torque. And rather than filling the press release with corporate speak, Ford simply added “Enough said.”
The Mustang Shelby GT500 will go from 0-to-60in three secondsand is designed to rival Chevrolet’s top muscle car, the Camaro ZL1 1LE, as well as exotic European sports cars.
It’s notably faster than the 2018 Ford Mustang GT, which takes aleisurely four secondsto go from 0-to-60. That model features a 5.0-liter V8 engine that produces 460 horsepower and 420 pounds of torque.
TheFord Mustangis, comparably, one of the automaker’s smaller brands, especially when its annual sales are compared to its flagship F-Series. But it’s a recognizable name among both auto enthusiasts and casual car fans, making it an important brand for the company, regardless of sales. |
Why CoreCivic, Inc. (NYSE:CXW) Could Be Worth Watching
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CoreCivic, Inc. (NYSE:CXW), which is in the reits business, and is based in United States, saw a significant share price rise of over 20% in the past couple of months on the NYSE. As a US$2.9b market-cap stock, it seems odd CoreCivic is not more well-covered by analysts. Although, there is more of an opportunity for mispricing in stocks with low coverage, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Let’s examine CoreCivic’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
Check out our latest analysis for CoreCivic
Great news for investors – CoreCivic is still trading at a fairly cheap price. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that CoreCivic’s ratio of 16.73x is below its peer average of 33.3x, which suggests the stock is undervalued compared to the REITs industry. What’s more interesting is that, CoreCivic’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. CoreCivic’s earnings growth are expected to be in the teens in the upcoming year, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.
Are you a shareholder?Since CXW is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor?If you’ve been keeping an eye on CXW for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy CXW. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on CoreCivic. You can find everything you need to know about CoreCivic inthe latest infographic research report. If you are no longer interested in CoreCivic, you can use our free platform to see my list of over50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
3 Large-Cap Biotech Stocks to Buy for Massive Gains
Do you want to find the nextApple(NASDAQ:AAPL) orAmazon(NASDAQ:AMZN)? My advice is that you should set your sights lower, not higher and put some cash to work in three down, but not out heavyweight biotech stocks for the next big thing in investing. Let me explain.
It has been a good week so far for the broader markets. TheNasdaq Composite,S&P 500andDow Jones Industrial Averagehave broken out of short bases barely discernible on the weekly chart and back within spitting distance of their respective all-time-highs following May’s abrupt correction. It has been a nice period for biotech stocks as well.
TheVaneck Vectors Biotech ETF(NYSEARCA:BBH) is up nearly 3.50% through Tuesday’s close compared to gains of roughly 1% to 2% for the broader averages. But as any investor with a passing interest in the markets knows, the outperformance in biotech stocks has been anything but a recurring theme these past couple years.
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The good news is markets are cyclical. Even legendary investments such as AMZN or the sacrosanct AAPL stock have been known to correct for periods lasting not weeks, but months and even years. With that in mind, it’s time to consider adding these three large-cap biotech stocks into your portfolio.
Click to Enlarge
Amgen(NASDAQ:AMGN) is a biotech heavyweight that also happens to be the sector’s largest capitalization outfit with a valuation of about $110 billion.
Following a recentsales and earnings beat, this reasonably-priced biotech giant, which pays investors nearly 3.5% in quarterlydividends, has now put together a bottom on the monthly price chart.
Specifically, AMGN stock has formed a confirmed pivot low, which reaffirms its longstanding uptrend after a correction of several months. And with plenty of lateral, angular and Fibonacci price supports, as well as an oversold crossover signal to confirm the bottom, this biotech stock is a buy today.
The Trade
Buy AMGN stock at current prices. Set a stop-loss beneath support below $160, but expect shares to hit new highs in 2019’s second half.
Click to Enlarge
It has been a rough few years forGilead Sciences(NASDAQ:GILD), one the sector’s largest names, but things are looking up for GILD stock lately.
A recent earnings report that reiterated the company’s full-year guidance and offered a modest year-over-year uptick in sales and profitslooks promising for Gilead shares, which have been absolutely pummeled over the last four years.
Technically, shares are trading slightly above multiple inside candlesticks following a double bottom pattern of about one and a half years. With the formation finding support off the 50% retracement level and a supportive-looking stochastics set-up signaling better months and years ahead, GILD stock looks good to buy right now.
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The Trade
Buy GILD stock at current levels with an initial stop-loss below $59. On the upside, $85 – $90 looks like a good area for profit-taking while allowing this down-and-out value stock some room to run.
Click to Enlarge
Much like GILD stock, shares of sector heavyweightBiogen(NASDAQ:BIIB) have been under extreme technical duress the past few years.
Most recently, the pain in BIIB stock came after the company’s announcement that it wasaxing a drug to treat Alzheimer’s following poor results.The suffering came despite the fact that BIIB posted stronger-than-forecast results in late April.
On the price chart, this biotech stock’s technical beating since 2015 has resulted in a possible four-year long double-bottom pattern that’s finding support in-between the 50% and 62% retracement levels. Coupled with an oversold stochastics that is a hair’s breadth away from signaling a bullish crossover, confirmation of the pivot low looks imminent.
The Trade
Buy BIIB stock above May’s candle high of $238.17 to confirm the pattern bottom. I’d suggest an initial stop beneath $214 and to take partial profits in-between $300 – $310.
Disclosure: Investment accounts under Christopher Tyler’s management currently do not own positions in any of the securities mentioned in this article. The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter@Options_CATandStockTwits.
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Jerome Karam: The 'Dr. Impossible' of the Louisiana and Texas Real Estate
FRIENDSWOOD, TX / ACCESSWIRE / June 19, 2019 /Jerome M. Karam, the former private injury lawyer turned real estate developer, has been, in recent years, the most significant persona in the real estate scenario of Texas and Southwestern Louisiana. JKM5 HOLDINGS, the real estate and investment firm owned by Karam, has been responsible for revolutionizing the way real estate renovation and development is thought throughout this entire area. His numerous award-winning renovation projects bear ample witness to this fact.
Jerome Karam: Early Career
Having obtained his undergraduate degree from Louisiana State University, Mr. Karam then moved to Texas Southern University to earn his Juris Doctor Degree from there in the year of 1990. Following this,Jerome Karamlaunched on an extremely successful career as a private attorney specializing in personal injury related affairs. In 2007, he established his own law firm in Friendswood, Texas. The law firm of Karam primarily offers assistance for personal injury cases as well as for resolving business disputes.
In the meantime, however, Karam had already launched his career in the field of real estate and it is in this field that the man's unique vision and his enormous talent for innovation where to find their full realization. To cite but one example, Karam has been instrumental in giving a new lease of life to the business community that used to thrive around the Mall of the Mainland in Texas City. The mall (as well as many other parts of the city) was hit hard by the Hurricane of 2008 and gradually fell into disuse. However, since Karam acquired this floundering and dilapidated property, he has already redeveloped part of the old property as a number of thriving commercial units. These include The High Altitude, to date the largest trampoline park in the US; the sumptuous Plaza Royal Executive Suites; as also the World Gym, the largest gym facility in the state of Texas. For the remaining part of the property, Karam has envisioned a multi-unit Indoor Climate Controlled storage facility that is expected to bring back the erstwhile mall business into effect again.
This is also Karam's way of giving back to society since putting the mall on the wheels again would mean financial independence for many people who had suffered from loss of business and income since the closure of the mall. Similarly, Karam's vision has been the key to bring life back to the hurricane-damaged Falstaff Breweries in Galveston, Texas. The place had fallen to complete disuse before Karam acquired the property and remodeled it as a boutique hotel and a set of condominiums. The latter have answered the demand for affordable housing in the area and Karam's commercial endeavors in general have been instrumental in revitalizing the economic health of the area. So, one can see that it is not for nothing that Karam has been complimented with the flattering sobriquet of 'Dr. Impossible' by no less than the Mayor of the Galveston County, Mr. Jim Yarborough. We may as well mention in this connection Karam's numerous philanthropic projects, especially among the Catholic Community in his home state of Louisiana.
Other notable achievements of Karam and his JKM5 Holdings include the rehabilitation work carried out by the company in the Historic Downtown District of Galveston. In 2018, The Galveston Historic Foundation voted this project as The Rehabilitation Project of the year. Equally commendable isJerome Karam'spurchasing and remodeling the old YMCA building located in the East Downtown area, yet another building left in a badly damaged state by Hurricane Harvey. However, thanks to the efforts of Karam's team, the property has been redeveloped into a state of the art health facility and equipment center offering a variety of sports and health routines including Yoga, Kickboxing, Body Pump and more.
CONTACT:
contact@jeromekaram.com
SOURCE:Jerome Karam
View source version on accesswire.com:https://www.accesswire.com/548979/Jerome-Karam-The-Dr-Impossible-of-the-Louisiana-and-Texas-Real-Estate |
Did Changing Sentiment Drive Potbelly's (NASDAQ:PBPB) Share Price Down A Worrying 68%?
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This week we saw thePotbelly Corporation(NASDAQ:PBPB) share price climb by 10%. But don't envy holders -- looking back over 5 years the returns have been really bad. In that time the share price has delivered a rude shock to holders, who find themselves down 68% after a long stretch. So is the recent increase sufficient to restore confidence in the stock? Not yet. We'd err towards caution given the long term under-performance.
Check out our latest analysis for Potbelly
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
We know that Potbelly has been profitable in the past. On the other hand, it reported a trailing twelve months loss, suggesting it isn't reliably profitable. Other metrics may better explain the share price move.
In contrast to the share price, revenue has actually increased by 6.9% a year in the five year period. A more detailed examination of the revenue and earnings may or may not explain why the share price languishes; there could be an opportunity.
The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values).
If you are thinking of buying or selling Potbelly stock, you should check out thisFREEdetailed report on its balance sheet.
Potbelly shareholders are down 62% for the year, but the market itself is up 4.6%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 20% per year over five years. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality businesses. If you would like to research Potbelly in more detail then you might want totake a look at whether insiders have been buying or selling shares in the company.
For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Zacks.com featured highlights include: North American Construction, Malibu Boats, Great Lakes Dredge and Argo Group
For Immediate Release
Chicago, IL – June 18, 2019 - Stocks in this week’s articleNorth American Construction Group Ltd.NOA,Malibu Boats, Inc.MBUU,Great Lakes Dredge & Dock Corp.GLDD andArgo Group International Holdings, Ltd.ARGO.
Scoop Up Big Gains with 4 Stocks Enjoying Rising Cash Flows
Cash is the lifeblood of any business. It offers the flexibility to make decisions, the means to make potential investments and the fuel to run its growth engine. In fact, it holds the key to a company's existence, development and success.
In fact, to invest in the right stocks, one must go beyond profit numbers and look at a company's efficiency in generating cash flows. This is because even a profit-making company can have a dearth of cash flow and fail to meet its obligations. But a company's resiliency can be fairly judged when its efficacy in generating cash flows is assessed.
To find this efficiency, one needs to consider a company's net cash flow figure. While in any business cash moves in and out, it is net cash flow that explains how much money a company is actually generating.
If a company is experiencing a positive cash flow then it denotes an increase in its liquid assets, which gives it the means to meet debt obligations, shell out for expenses, reinvest in business, endure downturns and finally return wealth to shareholders. On the other hand, a negative cash flow indicates a decline in the company's liquidity, which in turn lowers its flexibility to support these moves.
However, having a positive cash flow merely does not secure a company's future growth. To ride on the growth curve, a company must have its cash flow increasing because that indicates management's efficiency in regulating its cash movements and less dependency on outside financing for running its business.
Therefore, keep yourself abreast with the following screen to bet on stocks with rising cash flows.
For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/430970/scoop-up-big-gains-with-4-stocks-enjoying-rising-cash-flows
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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 reportGreat Lakes Dredge & Dock Corporation (GLDD) : Free Stock Analysis ReportMalibu Boats, Inc. (MBUU) : Free Stock Analysis ReportNorth American Construction Group Ltd. (NOA) : Free Stock Analysis ReportArgo Group International Holdings, Ltd. (ARGO) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
US STOCKS-Wall Street takes a breather with all eyes on Fed meeting
(For a live blog on the U.S. stock market, click or type LIVE/ in a news window.)
* Fed policy statement expected at 2 p.m. ET
* Healthcare rises most among 11 major S&P sectors
* Adobe gains on quarterly results beat
* Dow up 0.15%, S&P off 0.01%, Nasdaq down 0.05% (Updates prices, comments)
By Shreyashi Sanyal
June 19 (Reuters) - Wall Street's main indexes took a pause on Wednesday, after a rally the previous day, as investors held back from making big bets ahead of the Federal Reserve's policy statement that is expected to lay the groundwork for future interest rate cuts.
Markets have climbed this month, with the S&P 500 index gaining 6% so far and 1% away from its all-time high hit in early May, fueled by hopes of a rate cut.
The Fed's statement and new economic projections are scheduled to be released at 2 p.m. ET (1800 GMT), providing investors an opportunity to gauge the impact of a prolonged U.S.-China trade conflict, President Donald Trump's demands for a rate cut and softer-than-expected economic data on monetary policy thinking.
The U.S. central bank will likely leave rates unchanged but the market is factoring in a cut as soon as next month. Fed Chairman Jerome Powell will hold a press conference at 2:30 p.m. ET (1830 GMT).
"I think the potential for the Fed to disappoint today is significantly higher than the market expects," said Yousef Abbasi, global market strategist at INTL FCStone Financial Inc in New York.
"The Fed has already told us that it's ready to act but with the metrics we've seen in the economy - yes, they're mixed, but they're still growing - it just becomes very difficult for someone to say we absolutely need a rate cut."
U.S. Treasury yields rose on Wednesday, tracking the European market, after steep falls the previous day, as investors rebalanced positions ahead of the Fed decision.
The financial sector gained 0.40%, with bank stocks rising 0.15%.
At 11:18 a.m. ET, the Dow Jones Industrial Average was up 39.27 points, or 0.15%, at 26,504.81 and the S&P 500 was down 0.23 points, or 0.01%, at 2,917.52.
The Nasdaq Composite was down 3.74 points, or 0.05%, at 7,950.15.
The healthcare sector rose 0.44%, the most among the 11 major S&P sectors, helped by gains in UnitedHealth Group Inc, Pfizer Inc and Allergan Plc.
Allergan climbed 4.03% 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 4.43% after the Photoshop software provider beat analysts' estimates for quarterly profit and revenue.
Advancing issues outnumbered decliners by a 1.10-to-1 ratio on the NYSE and by a 1.30-to-1 ratio on the Nasdaq.
The S&P index recorded 15 new 52-week highs and one new low, while the Nasdaq recorded 35 new highs and 43 new lows. (Reporting by Shreyashi Sanyal and Aparajita Saxena in Bengaluru; Editing by Sriraj Kalluvila) |
Candidates reveal their — very slightly — embarrassing moments to the Times
Presidential candidates are thrown all sorts of hardball questions about their positions, policies and past. In a recent set of video interviews, the New York Times had tough questions for 21 Democratic presidential candidates, but one was fairly innocent: When was the last time you were embarrassed? Sen. Amy Klobuchar, D-Minn., was ready with an anecdote that was both embarrassing and endearing. In May, she boarded a plane on her way to a Fox News town hall in Wisconsin. She squeezed her bag into an overhead compartment and sat down. A man behind Klobuchar told her she had dropped something in the aisle. “It was my rather brightly colored underwear,” Klobuchar told the Times. None of the other responses rose to that level of embarrassment, although New York Mayor Bill de Blasio came close with an account of being photographed working out at the gym in cargo shorts. Photo illustration: Yahoo News; photos: AP, Getty Images) Notably absent from the video interviews is former vice president and frontrunner Joe Biden, who is well known for his gaffes. In December, Biden admitted at a rally that he can be “a gaffe machine.” Sen. Cory Booker, D-N.J., confessed to being embarrassed by some songs on his Spotify account. Posing for a photo, Sen. Elizabeth Warren, D-Mass., told a child, “It’s really important that we girls stick together.” But he was a boy. Most of the other questions were more serious, dealing with issues including climate change, Mideast policy and health care. But the candidates were also asked about their sleeping habits and favorite comfort food. In answering the question “When did your family first arrive in the United States and how?”, Warren, who has gotten into trouble with her disputed accounts of Native American ancestry, didn’t fall for the trap of saying, “12,000 years ago across the Bering land bridge.” She focused her answer on her father’s side of the family, which came from “Europe” four generations ago. Some candidates, like Sens. Kamala Harris and Bernie Sanders, said the campaign trail is filled with embarrassing moments, but managed not to mention any specific ones. Story continues “I just think it’s so important not to take yourself too seriously,” Harris said, laughing. But Sanders showed he wasn’t afraid to risk taking himself too seriously. His entire response, as recorded by the Times was: “I get embarrassed every day when I don’t do things. I have high expectations of myself and others, and too often I don’t fulfill my own expectations.” Mayor Pete Buttigieg, of South Bend, Ind., said his last embarrassing moment was a humbling one. On a recent trip to the Capitol to meet a senior member of Congress, Buttigieg was standing to the side as his staff checked in. A woman behind the check-in desk asked if he was with the staff, not recognizing him as a presidential candidate. “It was a reminder that every day you can get cut down to size in a way that’s probably pretty healthy when you find yourself on the news all the time,” Buttigieg said. Other candidates’ embarrassing moments involved family members, often their children. In his interview, former Colorado Gov. John Hickenlooper recalled using a “crude” phrase to describe flatulence around his 16-year-old son. He paused after saying it, and his son pitied him for being embarrassed. “Do you want to say the term now?” a Times reporter asked. “I was talking about farting,” Hickenlooper said. _____ Read more from Yahoo News: Trump wants his next press secretary to be a cable news 'street fighter' For politicians, the D.C. elite and even a presidential candidate, a Navy program has been an attractive fast-track path to military service Trump admits his Cabinet had 'some clinkers' Confronted with multiple errors in his new Trump book, a testy Michael Wolff says, 'You have to trust me' Why are people willing to risk death for a selfie? PHOTOS: Dancing under the stars |
Investors Who Bought Clarmin Explorations (CVE:CX) Shares A Year Ago Are Now Down 40%
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Clarmin Explorations Inc.(CVE:CX) shareholders should be happy to see the share price up 20% in the last quarter. But that is minimal compensation for the share price under-performance over the last year. After all, the share price is down 40% in the last year, significantly under-performing the market.
View our latest analysis for Clarmin Explorations
Clarmin Explorations didn't have any revenue in the last year, so it's fair to say it doesn't yet have a proven product (or at least not one people are paying for). We can't help wondering why it's publicly listed so early in its journey. Are venture capitalists not interested? So it seems that the investors focused more on what could be, than paying attention to the current revenues (or lack thereof). For example, investors may be hoping that Clarmin Explorations finds some valuable resources, before it runs out of money.
We think companies that have neither significant revenues nor profits are pretty high risk. There is usually a significant chance that they will need more money for business development, putting them at the mercy of capital markets. So the share price itself impacts the value of the shares (as it determines the cost of capital). While some companies like this go on to deliver on their plan, making good money for shareholders, many end in painful losses and eventual de-listing.
When it last reported its balance sheet in January 2019, Clarmin Explorations could boast a strong position, with cash in excess of all liabilities of CA$382k. That allows management to focus on growing the business, and not worry too much about raising capital. But with the share price diving 40% in the last year, it could be that the price was previously too hyped up. You can click on the image below to see (in greater detail) how Clarmin Explorations's cash levels have changed over time.
Of course, the truth is that it is hard to value companies without much revenue or profit. Given that situation, would you be concerned if it turned out insiders were relentlessly selling stock? I would feel more nervous about the company if that were so. It only takes a moment for you tocheck whether we have identified any insider sales recently.
Given that the market gained 1.4% in the last year, Clarmin Explorations shareholders might be miffed that they lost 40%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. It's great to see a nice little 20% rebound in the last three months. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). You could get a better understanding of Clarmin Explorations's growth by checking outthis more detailed historical graphof earnings, revenue and cash flow.
We will like Clarmin Explorations better if we see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
[UPDATE] Cap’n Crunch Is Releasing Red White And Blue Crunch Cereal Just In Time For Fourth Of July
Photo credit: Instagram @candyhunting From Delish Update, 6/19/19: Coming to Cap'n Crunch's lineup of cereals this summer are actually two new flavors, and (spoiler alert!) they’re tailor-made for the Fourth of July. First up is indeed Cap’n Crunch’s Red, White & Blue Crunch, which will be available for a limited time. Never felt comfortable enough to straight-up bring a spoon and bowl of milk to the beach? Now, you can brand yourself patriotic and crunch the colors to your heart’s content. Another summertime delight you can expect soon? Cap’n Crunch’s Cotton Candy Crunch. It’s reportedly the company’s “first new flavor discovery in four years,” which is reason enough to tear into a box. As to be expected, the creation is pink, blue, and what it loses in fluffiness, it makes up for in novelty. Photo credit: Quaker Oats Both flavors can be spotted parent company Quaker Oats' website , so you can crunch into a cool bowl of puffs immediately. Original post, 5/6/19: Between Memorial Day, July 4th, and Labor Day, we have a lot of red, white, and blue outfits to gather. Just as we follow a theme with our clothes, we think the same should go with our food. That’s why it’s guaranteed that we’ll be scooping up the Cap’n Crunch’s limited-edition Red, White & Blue Crunch cereal for the holidays. The sweetened corn and oat cereal features red, white, and blue puffs in a firework-covered box. As far as flavor goes, the box just says that it’s “red, white & blue berries.” But Cap’n Crunch flavors have never let us down before, and we don’t expect that to start now. View this post on Instagram NEW DROP 🎤 🥄 🇺🇸 🥄 Special thanks to @raresnacks_toronto for the tip! #CerealLife #CaptainCrunch #capncrunch #funtoeat #tastytreat #yum #yummy #morning #breakfast #foodporn #instafood #foodstagram #foodgasm #foodshare #buzzfeedfood #huffposttaste #sweet #eats #cereal #cerealbowl #cerealbar #cerealworld #america #usa #patriotic #redwhiteandblue #newcereal #freedom #unitedstates #4thofjuly A post shared by Cereal Life (@cereallife) on May 5, 2019 at 9:01am PDT Apparently, Cap’n Crunch was supposed to put out (and kind-of put out? ) a Freedom Crunch cereal in 2018. It looks very similar to the Red, White, & Blue box, featuring Cap’n Crunch in the salute position. Story continues Quaker has yet to confirm the flavor, but you know we’ll be keeping you updated with any additional info we find. ('You Might Also Like',) Crave Carbs? We Created This 21-Day Keto Plan Just for You Insanely Easy Weeknight Dinners To Try This Week 29 Insanely Delicious Vodka Cocktails |
Crypto asset manager launches new indices tracking groups of privacy and smart contract platform tokens
MVIndex Solutions and Crescent Crypto, a U.S. digital asset manager, has announced the launch of three new cryptocurrency indices, each combining tokens from a different genre; including smart contracts and anonymity. The CCSMART index tracks “the performance of a market capitalization weighted basket of the largest smart contract platform assets.” Currently, Ethereum takes the first spot, followed by EOS and Stellar. Meanwhile, CCDARK ranks assets by their level of technical anonymity, while CCALT tracks the performance of all the largest cryptocurrencies excluding bitcoin. To be included, tokens need to fulfill sufficient liquidity and security requirements specific to each index. Meanwhile, eligible exchanges are determined by Crescent Crypto’s investment committee. To be eligible to trade the indices, an exchange must have substantial trading volumes, a strong history of security controls, availability for U.S. investors, and local regulatory compliance. "The introduction of sector indexes allows investors to stay informed on the performance of specific themes within the digital asset ecosystem," said Christopher Matta, Co-Founder at Crescent. Last year, MVIndex Solutions and Crescent Crypto teamed up to publish a broad-based investable index which encompasses all of the largest and most liquid cryptocurrencies. |
Should You Consider PFSweb, Inc. (NASDAQ:PFSW)?
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PFSweb, Inc. (NASDAQ:PFSW) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of PFSW, it has a an impressive track record of performance as well as a buoyant future outlook going forward. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the fullreport on PFSweb here.
Over the past few years, PFSW has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, PFSW also outperformed its industry, which delivered a growth of 8.5%. This is an optimistic signal for the future.
For PFSweb, there are three pertinent aspects you should look at:
1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Valuation: What is PFSW 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 PFSW is currently mispriced by the market.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of PFSW? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
3rd generation Echo Dots are $20 off on Amazon
TL;DR:The voice-controlled 3rd generationEcho Dotis Amazon's most popular smart speaker made better — pick one up on Amazon for just $29.99 and save $20.
Having all of your smart devices operating separately issoold-school now — if you really want to join the present, you’ll need some sort of central hub that can act as your epicenter for all things “smart,” like yourtablet,lights, thermostat, and more. It may sound complicated, but you only actually need one thing to achieve this: Asmart speaker.
And luckily, Amazon’s Echo Dot is a great option that will barely make a dent in your wallet — you can pick up a3rd generation Echo Dot for just $29.99, saving you $20 off of its original listing.Read more...
More aboutAmazon Echo,Voice Controls,Echo Dot,Mashable Shopping, andShopping Solo |
Women's World Cup: Why has USWNT's Lindsey Horan gone unnoticed?
DEAUVILLE, France — For anyone who watched the National Women’s Soccer League last season, it wasn’t hard to pick up on who was going to be voted the league’s MVP. Lindsey Horan was seemingly everywhere for the Portland Thorns – dishing line-breaking passes to set up her teammates, scoring goals, winning 50/50 balls, stamping out oncoming attacks, and just about everything else the Thorns did well. But tune into a U.S. women’s national team game, and it’s not quite the same Horan. That’s not to say she isn’t influential, but she isn’t the heart of everything the U.S. does in the midfield in the same way. Part of that is by design. Mark Parsons, the coach of the Portland Thorns, recognizing that Horan is good at everything, has put her in a position where she can do everything. A structure has been built around Horan so she is free to feel a game out and make an impact where she sees fit while the rest of the team ensures the fundamentals are handled. “She is a player that has got it all,” Parsons says. “She can pass, she can shoot, she can dribble, she’s box-to-box, she’s everywhere, great short passer, long passer, medium passer, she can score with her feet, with her head. Because of all that, along with her strong mentality, you’ve got a player that can run midfield and run a game.” Lindsey Horan is asked to play a different role with the USWNT than in the NWSL, where she was league MVP last season with the Portland Thorns. (Getty) For the U.S. women’s national team, including here in France where the Americans are vying to defend their World Cup title, Horan’s role is a bit more limited. She shares the central midfield with players who tend to take over games as well, like Julie Ertz, with her marauding disruptive abilities, and Rose Lavelle, with her creative flair. “For Mark, it’s been a very easy thing to see,” Horan says. “He wants the ball to go through me on the field and he does give me this free role to go get on the ball whenever I want, to be wherever I want and to join the attack. He’s made that very clear to our team, which has been cool for me because it’s a different role than I’ve ever had.” Story continues “Then you come here and it’s a bit different,” Horan continues, referring to the USWNT. “You’re playing on the national team and you can’t do everything absolutely the same.” In that sense, Horan is more a cog in the USWNT midfield rather than the key influencer tying everything together. That is apparent when looking at data from Opta Sports , the official stats keeper of the NWSL, which also tracks the USWNT. Horan hasn’t had much time in the NWSL this year due to the World Cup, but last year she led the league in a host of categories, including touches on the ball per 90 minutes, number of passes per-90, duels won per-90, and shot conversion. But for the USWNT, even despite the blowout games the team tends to have, Horan’s influence hasn’t been quite so outsized. Stats courtesy of Opta Sports The numbers tell a story where Horan isn’t asked to be the star of the national team. She shoots the ball less and more often assists her teammates, who on the USWNT are better goal-scorers than the Thorns have. But the attack also isn’t flowing through her as much either. Horan generally occupies the same space for both teams, although she is more mobile and roams more with the Thorns. But these charts from Opta show how different her ball movement is, and how differently each team moves the ball generally. These charts, which are snapshots of one Thorns games and one USWNT game, show every players’ aggregate position on the field (Horan is No. 10 for Portland and No. 9 for the USWNT) and the width of the bands represents the amount of passes between those players. Portland Thorns vs. Reign FC, Sept. 7, 2018 USWNT vs. Australia, April 4, 2019 The USWNT likes to move the ball along the wide channels, whereas the Thorns are more likely to work the ball centrally, where Horan can be involved. That’s not necessarily a problem, but there is a lingering concern that the USWNT may be too one-dimensional in its attack. A player like Horan could prove useful. Then again, just like the Thorns, which reached the NWSL Championship last season, the USWNT has figured out an approach that works. Ranked No. 1 in the world, the Americans have looked like the best team thus far in the World Cup and are favorites to lift the trophy again. Still, Parsons believes that the USWNT would be best off getting the most out of Horan, who he says is the best midfielder in the world. He declines to critique what U.S. coach Jill Ellis is doing but says his own approach would be simple. “What’s absolutely crucial for the U.S. women’s national team to be at their best is for Lindsey Horan to be at her best,” he says. “The view from (Portland) is: trying to get the best out of the best midfielder in the world who has been doing it every single week in the most competitive league makes sense to me.” Caitlin Murray is a contributor to Yahoo Sports and her book about the U.S. women’s national team, The National Team: The Inside Story of the Women Who Changed Soccer , is out now. Follow her on Twitter @caitlinmurr . More from Yahoo Sports: CP3, Harden relationship deemed ‘unsalvageable’ From mid-major to NBA draft: Morant's historic rise Coach K on Zion’s NBA potential: 'He’s a gift from God' Why D-Wade supported son at Miami Pride |
Low Risk, High Return ETF Trap
A recentMarketWatch articlecaught my attention. It said, “This actively managed ETF has a novel approach that can cut risk and lead to higher returns.”
I’m always looking for a higher risk-adjusted return, so I thought I’d check it out.
According to the article, the actively managedTrimTabs All Cap U.S. Free-Cash-Flow ETF (TTAC)was the answer. The article interviewed the ETF manager, Janet Johnston, and went on to say:
“Johnston’s stock selection begins with the Russell 3000 Index which includes large-cap, mid-cap and small-cap companies. She narrows the list to an equal-weighted group of about 100 companies using computer models to screen for various factors. The companies are limited to those that are expected by analysts to show large increases in free cash flow (FCF) over the next several years.”
Indeed, from inception on Sept. 28, 2016 through June 7, 2019, the article was correct in its assertion that TTAC outperformed the Russell 3000. But it seems the article compared the total return of this fund to the raw Russell 3000 index, stripped of dividends. The article also didn’t mention it had underperformed over the past year.
Logic Check
It’s not my intention to single out this one ETF or even the MarketWatch article, as I’ve heard claims like this literally hundreds of times. (To be clear, TrimTabs doesn't make the claims the reporter does.)
Yet if you compare TTAC to a broad ETF like theVanguard Total Stock Market Index ETF (VTI), you might wonder, as I do, how an ETF with expenses 17 times that of VTI (0.59% vs 0.035%), and about 3% of the holdings (100 vs. 3,574), boosts returns and cuts risk? (I attempted to contact the author but did not hear back.)
You decide which of these two ETFs will likely cut risk and boost returns over time:
Past Failures
The promise of higher returns with less risk is alluring and downright irresistible. But past failures, such as the following, offer important lessons we should consider:
• Master limited partnerships (MLPs) were billed as safe alternative to bonds, as they collect tolls for oil and gas that must go through the pipelines. TheAlerian MLP ETF (AMLP)has returned negative 4.62% annually over the five years ended June 13, 2019.
• Equal-weighted funds like theInvesco S&P 500 Equal Weight ETF (RSP)boosts returns, as it doesn’t overweight large growth stocks. It has underperformed the S&P 500 cap-weighted return by 2.84 percentage points annually over the same five-year period.
• Smart beta funds such as small cap value tilted funds are a free lunch. Small cap value has underperformed large cap growth by almost 10 percentage points annually over that five-year period.
Lessons Learned
Investing is about maximizing returns while minimizing risk. Here’s my definition of investing, in eight simple words: “Minimizing expenses and emotions; maximizing diversification and discipline.”
All of these so-called higher risk-adjusted return promises failed to meet this definition. They had far lower diversification and fees many times higher than low-cost alternatives. They outperformed on a back-tested basis, and investors lacked the emotional fortitude and discipline not to chase performance.
The next time you’re promised less risk with greater returns, ask yourself if it met the eight-word investing test.
My advice? If it doesn’t, don’t follow the herd.
Allan Roth is the founder ofWealth Logic LLC, an hourly based financial planning firm. He has been a nonpaid panelist at one of NGPF's conferences for high-school teachers, but is not part of its organization. He is required by law to note that his columns are not meant as specific investment advice. Roth also writes for the Wall Street Journal, AARP and Financial Planning magazine. You can reach him atar@DareToBeDull.comor follow him on Twitter atAllan Roth (@Dull_Investing) · Twitter.
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IBM to win unconditional EU okay for $34 billion Red Hat deal: sources
By Foo Yun Chee
BRUSSELS (Reuters) - U.S. tech giant International Business Machines Corp is set to secure unconditional EU approval for its $34 billion bid for software company Red Hat, people familiar with the matter said on Wednesday.
IBM is seeking to expand its subscription-based software offerings via the deal, its biggest to date, to counter slowing software sales and waning demand for mainframe servers.
It would also help it catch up with Amazon, Alphabet Inc and Microsoft in the fast growing cloud computing business.
The European Commission, which is scheduled to decide on the deal by June 27, and IBM declined to comment.
Founded in 1993, Red Hat specializes in Linux operating systems, the most popular type of open-source software and an alternative to proprietary software made by Microsoft.
U.S. regulatory authorities gave the green light to the deal last month without demanding concessions.
(Reporting by Foo Yun Chee; Editing by Alissa de Carbonnel and Elaine Hardcastle) |
A Closer Look At CPI Aerostructures, Inc.'s (NYSEMKT:CVU) Uninspiring ROE
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Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). We'll use ROE to examine CPI Aerostructures, Inc. (NYSEMKT:CVU), by way of a worked example.
Our data showsCPI Aerostructures has a return on equity of 2.7%for the last year. Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.027.
See our latest analysis for CPI Aerostructures
Theformula for return on equityis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for CPI Aerostructures:
2.7% = US$2.6m ÷ US$95m (Based on the trailing twelve months to March 2019.)
Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is the capital paid in by shareholders, plus any retained earnings. The easiest way to calculate shareholders' equity is to subtract the company's total liabilities from the total assets.
Return on Equity measures a company's profitability against the profit it has kept for the business (plus any capital injections). The 'return' is the profit over the last twelve months. A higher profit will lead to a higher ROE. So, all else being equal,a high ROE is better than a low one. Clearly, then, one can use ROE to compare different companies.
Arguably the easiest way to assess company's ROE is to compare it with the average in 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 CPI Aerostructures has a lower ROE than the average (14%) in the Aerospace & Defense industry classification.
That's not what we like to see. It is better when the ROE is above industry average, but a low one doesn't necessarily mean the business is overpriced. Still,shareholders might want to check if insiders have been selling.
Virtually all companies need money to invest in the business, to grow profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the use of debt will improve the returns, but will not change the equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
Although CPI Aerostructures does use debt, its debt to equity ratio of 0.31 is still low. Its ROE is quite low, and the company already has some debt, so surely shareholders are hoping for an improvement. Judicious use of debt to improve returns can certainly be a good thing, although it does elevate risk slightly and reduce future optionality.
Return on equity is one way we can compare the business quality of different companies. In my book the highest quality companies have high return on equity, despite low debt. If two companies have the same ROE, then I would generally prefer the one with less debt.
But when a business is high quality, the market often bids it up to a price that reflects this. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So you might want to check this FREEvisualization of analyst forecasts for the company.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
‘Pose’ and ‘Russian Doll’ Lead 2019 TCA Award Nominations
Freshman seasons of “ Pose ” and “ Russian Doll ” lead the list of nominees for the 2019 TCA Awards , the Television Critics Assn. announced Wednesday. Both series scored four nominations each. FX’s ballroom culture drama “ Pose ” appears on the ballot in the categories of individual achievement in drama (for lead actor Billy Porter), outstanding achievement in drama, outstanding new program and program of the year. In the latter two categories “Pose” and Netflix’s dark comedy “ Russian Doll ” are competing against each other. “Russian Doll” also scored nominations for individual achievement in comedy (for lead actress Natasha Lyonne) and outstanding comedy series. These series join 46 others as the nominees for the 35th Annual TCA Awards . These awards are designed to celebrate the best series, creators and performers of the 2018-19 television season, with more than 220 professional television critics and journalists from the U.S. and Canada voting. Despite not having a series that earned the most nominations, HBO as a network scored the most overall with 15. Netflix picked up the second-most nominations with 14, while FX received eight, Amazon received five; CBS and PBS each received four; NBC and Showtime each received three; BBC America and Pop TV each received two; and AMC, Comedy Central, Disney Jr., Lifetime, MSNBC, Starz and TBS each scored one. As previously announced, Desus Nice and the Kid Mero of Showtime’s “Desus & Mero” will host the awards this year, taking place Saturday, August 3 at the Beverly Hilton Hotel in Beverly Hills, Calif. The career achievement and heritage awards recipients will be announced at a later date. See below for the list of 2019 TCA Award nominees: Individual Achievement in Drama Amy Adams, “Sharp Objects” – HBO Patricia Arquette, “Escape at Dannemora” – Showtime Christine Baranski, “The Good Fight” – CBS All Access Jodie Comer, “Killing Eve” – BBC America Billy Porter, “Pose” – FX Michelle Williams, “Fosse/Verdon” – FX Story continues Individual Achievement in Comedy Pamela Adlon, “Better Things” – FX Bill Hader, “Barry” – HBO Julia Louis-Dreyfus, “Veep” – HBO (2014 Winner in Category) Natasha Lyonne, “Russian Doll” – Netflix Catherine O’Hara, “Schitt’s Creek” – Pop TV Phoebe Waller-Bridge, “Fleabag” – Amazon Outstanding Achievement in News and Information “60 Minutes” – CBS (2012 Winner in Category) “America To Me” – Starz “Leaving Neverland” – HBO “Our Planet” – Netflix “The Rachel Maddow Show” – MSNBC “Surviving R. Kelly” – Lifetime Outstanding Achievement in Reality “The Great British Baking Show” – PBS “Making It” – NBC “Nailed It!” – Netflix “Queer Eye” – Netflix “Salt, Fat, Acid, Heat” – Netflix “Tidying Up with Marie Kondo” – Netflix Outstanding Achievement in Youth Programming “Arthur” – PBS Kids “Carmen Sandiego” – Netflix “Daniel Tiger’s Neighborhood” – PBS Kids (2016 Winner in Category) “Muppet Babies” – Disney Junior “Odd Squad” – PBS Kids “Sesame Street” – HBO (2018, 2011, 2001 Winner in Category) Outstanding Achievement in Sketch/Variety “Desus & Mero” – Showtime “Full Frontal With Samantha Bee” -TBS “I Think You Should Leave With Tim Robinson” – Netflix “Last Week Tonight With John Oliver” – HBO (2018 Winner in Category) “Late Night With Seth Meyers” – NBC “The Late Show With Stephen Colbert” – CBS Outstanding Achievement in Movie or Miniseries “Chernobyl” – HBO “Deadwood: The Movie” – HBO “Escape at Dannemora” – Showtime “Fosse/Verdon” – FX “Sharp Objects” – HBO “When They See Us” – Netflix Outstanding New Program “Dead to Me” – Netflix “The Other Two” – Comedy Central “Pose” – FX “Russian Doll” – Netflix “Succession” – HBO “What We Do in the Shadows” – FX Outstanding Achievement in Drama “Better Call Saul” – AMC “The Good Fight” – CBS All Access “Homecoming” – Amazon “Killing Eve” – BBC America “Pose” – FX “Succession” – HBO Outstanding Achievement in Comedy “Barry” – HBO “Fleabag” – Amazon “The Good Place” – NBC (2018 Winner in Category) “The Marvelous Mrs. Maisel” – Amazon “Russian Doll” – Netflix “Schitt’s Creek” – Pop TV “Veep” – HBO (2014 Winner in Category) Program of the Year “Chernobyl” – HBO “Fleabag” – Amazon “ Game of Thrones ” – HBO (2012 Winner in Category) “Pose” – FX “Russian Doll” – Netflix “When They See Us” – Netflix Related stories: Janet Mock Signs Landmark Overall Netflix Deal (EXCLUSIVE) 'Pose' Star MJ Rodriguez Says Simply Being Trans Is Activism 'Pose' Renewed for Season 3 at FX Sign up for Variety’s Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram . |
Ahold Delhaize issues its first Sustainability Bond
Zaandam, the Netherlands, June 19, 2019- Ahold Delhaize today announced that it successfully issued its first Sustainability Bond, amounting to €600 million with a term of 6 years, maturing on June 26, 2025. The transaction, which makes Ahold Delhaize the first retailer to issue a euro-denominated Sustainability Bond, highlights the company`s commitment to accelerate the transition to sustainable food systems.
The bond`s proceeds will be used to finance Ahold Delhaize`s new or existing environmentally friendly projects and community initiatives in three categories: procurement of sustainably produced products; reduction of climate impact; and promotion of healthier eating. These projects support the company`s "healthy and sustainable" growth driver as part of its Leading Together strategy.
Ahold Delhaize has published aSustainability Bond Frameworkto detail the quality of the projects to be financed through the issuance of these types of bonds. Sustainalytics, an independent provider of environmental, social and governance research and ratings, prepared a second-party opinion on the credentials and management of the first bond, which is available on Ahold Delhaize`swebsite. The allocation of the proceeds will be overseen by the Ahold Delhaize Sustainability Bond Committee and will be reported.
Frans Muller, Chief Executive Officer, said: "The issuance of our first Sustainability Bond is a vital step in creating and sharing sustainable value for all stakeholders. It not only can have a positive environmental and social impact, it also helps us accelerate our promise to help our customers and communities eat well, save time and live better."
The issuance is priced at 99.272 per cent and carries an annual coupon of 0.250 per cent. The notes will settle on June 26, 2019, and shall be listed on Euronext Amsterdam. J.P. Morgan acted as Sustainability Bond Structuring agent and BNP Paribas, BofA Merrill Lynch, ING, J.P. Morgan and Rabobank acted as joint bookrunners.
Cautionary notice
This communication is not for release, distribution or publication, whether directly or indirectly and whether in whole or in part, into or in the United States, Australia, Canada or Japan or any (other) jurisdiction where any of such activities would constitute a violation of the relevant laws of such jurisdiction.
The offer of notes referred to in this communication was limited to qualified investors only. The notes have not been and will not be registered under the US Securities Act of 1933, as amended (the "US Securities Act") and will also not be registered with any authority competent with respect to securities in any state or other jurisdiction of the United States of America. The notes may not be offered or sold in the United States of America without either registration of the securities or an exemption from registration under the US Securities Act being applicable.
This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words such as to be, will, shall or other similar words or expressions are typically used to identify forward-looking statements.
Forward-looking statements are subject to risks, uncertainties and other factors that are difficult to predict and that may cause actual results of Koninklijke Ahold Delhaize N.V. (the "Company, or "Ahold Delhaize") to differ materially from future results expressed or implied by such forward-looking statements. Such factors include, but are not limited to the risk factors set forth in the Company`s public filings and other disclosures. Forward-looking statements reflect the current views of the Company`s management and assumptions based on information currently available to the Company`s management. Forward-looking statements speak only as of the date they are made and the Company does not assume any obligation to update such statements, except as required by law.
Ahold Delhaize issues its first Sustainability Bond
This announcement is distributed by West Corporation on behalf of West Corporation clients.The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.Source: Ahold Delhaize via GlobeNewswireHUG#2246269 |
Zacks.com featured highlights include: Citigroup, DSW, Celgene and Zions
For Immediate Release
Chicago, IL – June 19, 2019 - Stocks in this week’s articleCitigroup Inc.C,DSW Inc.DBI,Celgene CorporationCELG andZions BancorporationZION.
4 High Earnings Yield Stocks to Enhance Your Portfolio
If you are not sure whether to invest your money in bonds or stocks, an important parameter that can show you the right direction is earnings yield. It is the reciprocal of the price-to-earnings (P/E) ratio. This ratio is very effective for determining undervalued stocks. Also, this ratio is useful for comparing stocks with the market or fixed income securities.
Earnings yield can be calculated as (annual earnings per share/market price) x 100. While comparing similar stocks, the one with high earnings yield should fetch higher returns.
The ratio is handy for comparing the performance of the market with the 10-year Treasury yield. When the yield of the market index exceeds the 10-year Treasury yield, stocks can be said to be undervalued in comparison to bonds. This implies that investing in the stock market is a better choice for a value investor.
However, while T-bills are free of risks, investing in stocks always involves some inherent risks. Hence, it will be wise to add a risk premium to the Treasury yield while comparing with the earnings yield of a stock or the broader market.
For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/430986/4-high-earnings-yield-stocks-to-strengthen-your-portfolio
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
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Strong Stocks that Should Be in the News
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportCitigroup Inc. (C) : Free Stock Analysis ReportZions Bancorporation (ZION) : Free Stock Analysis ReportCelgene Corporation (CELG) : Free Stock Analysis ReportDSW Inc. (DBI) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Did Changing Sentiment Drive Progenics Pharmaceuticals's (NASDAQ:PGNX) Share Price Down By 46%?
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This week we saw theProgenics Pharmaceuticals, Inc.(NASDAQ:PGNX) share price climb by 14%. But that is minimal compensation for the share price under-performance over the last year. In fact the stock is down 46% in the last year, well below the market return.
Check out our latest analysis for Progenics Pharmaceuticals
Because Progenics Pharmaceuticals is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last year Progenics Pharmaceuticals saw its revenue grow by 33%. That's definitely a respectable growth rate. Unfortunately that wasn't good enough to stop the share price dropping 46%. This implies the market was expecting better growth. However, that's in the past now, and it's the future that matters most.
Depicted in the graphic below, you'll see revenue and earnings over time. If you want more detail, you can click on the chart itself.
It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. You can see what analysts are predicting for Progenics Pharmaceuticals in thisinteractivegraph of future profit estimates.
Investors in Progenics Pharmaceuticals had a tough year, with a total loss of 46%, against a market gain of about 4.6%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 2.3%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought.You can find out about the insider purchases of Progenics Pharmaceuticals by clicking this link.
Progenics Pharmaceuticals is not the only stock insiders are buying. So take a peek at thisfreelist of growing companies with insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor 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. |
Visa Set to Join the Expanding Field of Blockchain-Based International Payment Providers
Visahas launched apaymentsystem for business-to-business (B2B)transactionspartially based onblockchaintechnology. TheUnited Statespayment behemoth says its platform, calledVisa B2B Connect, offers seamless cross-border payment processing for institutional clients without going through the complex web of third-party intermediaries.
In doing so, Visa becomes the latest entrant into the blockchain-based payment processing arena. This move brings the company into direct competition withcryptocurrencystartups like Ripple and mainstream players, such as Barclays and BNY Mellon with theirUtility Settlement Coin(USC) project under the aegis of the Fnality Consortium.
Visa first announced plans to build a blockchain-based network for business payments back in 2016. At the time, the credit/debit card payment giant said the service would be developed in partnership with blockchain startup Chain.
According to astatementissued by the former executive president for strategic partnerships and innovation, Jim McCarthy:
“The time has never been better for the global business community to take advantage of new payment technologies and improve some of the most fundamental processes needed to run their businesses. We are developing our new solution to give our financial institution partners an efficient, transparent way for payments to be made across the world.”
Visa’s initial timeline included a pilot launch in 2017, but the company had to navigate a more complicated route than initially envisaged. The company replaced Chain as its partner on the project, electing instead to go withfintechfirm FIS, e-payment operator Bottomline Technologies andIBM.
Starting in 2017, the company began to announcejob vacanciesfor crypto and blockchain experts to work on a new payment gateway. In March 2019, the company also published another job listing for specialists in crypto payment solutions.
Three years on, Visa has finally gone ahead with the launch of its payment service, which promises near-real-time settlement for B2B transactions. In a blog post published by Visa on June 11, the company described its platform as the answer to the issues plaguing cross-border transactions for businesses.
An excerpt from the company’s statementreads:
“Visa B2B Connect takes a different approach, turning weeks into one to two days. The non-card-based platform — the first of its kind — removes friction from the process by expediting transactions directly from the origin bank to the beneficiary bank — no intermediaries necessary.”
According to the company, the newly developed system aims to simplify the process of business payments around the world, eliminating the convoluted transaction flow process involved ininterbanksettlements for commercial payments.
Kevin Phalen, head of Visa’s Global Business Solutions, hailed the project as one capable of establishing a new paradigm for international business payments. “With Visa B2B Connect, we are making commercial payments quicker and simpler, while enhancing transparency and consistency of data,” Phalendeclared.
In the June 11 launch announcement, the company revealed that the Visa B2B Connect platform is now available in 30 markets across the globe. Visa has plans to triple the reach of the service, making the platform operational in 90 markets around the world before the end of 2019.
From a technology standpoint, the platform isn’t a fully realized blockchain network. Rather, Visa B2B Connect takes certain elements of distributed ledger technology (DLT) to create an interbank network for business transaction settlement. The development team utilized the open-sourceHyperledgerblockchain base layer, created by theLinux Foundation.
Details released by Visa show that the platform is a non-card-based network made up of companies and participating banks. It allows businesses to transact directly with one another across the globe via their banks, with the Visa B2B Connect acting as the single connection between all transacting entities.
In a phone interview with Cointelegrah, Marta Piekarska, director of Hyperledger ecosystem at the Linux Foundation, explained the role of the company in the project, saying:
“We [Linux Foundation] provide the base layer on top of which developers can build their projects. Visa has integrated with the Hyperledger Fabric 1.0 to create the B2B Connect platform. They [Visa] partnered with IBM to implement the payment technology infrastructure.”
In legacy interbank transactions, there can be as many as three third-party intermediaries, each with their own fees and contribution to the throughput time of the process. Rather than a settlement occurring in 24 to 48 hours, interbank payments for business can take much longer.
A typical flow process for a payment transaction from Company A in Country Y to Company B in Country Z would look like the image below.
First, the funds move from Company A’s bank to a domestic correspondent bank (the first link in the intermediary chain). The next “handshake” involves a transfer to the main transaction authenticator (the second link in the intermediary chain) — which is most likely a regional clearing house — before arriving at the account held by the foreign correspondent bank in Country Z. Finally, the funds will move to the Company B’s bank account.
The Visa B2B Connect platform eliminates unnecessary handshake procedures and replaces them with a centralized service that connects companies and their banks across the world. Aside from reducing cost and throughput time for interbank payments, Visa says its platform solves the problem of inconsistencies in the flow of data.
By employing elements of DLT, the payments giant believes Visa B2B Connect creates an infrastructure with immutable record-keeping capabilities. If this proves true, participating businesses can utilize the predictable cost matrix inherent in the system to improve upon the accuracy of their cost and budgeting documentation. Furthermore, the system will have all the fee calculations indicated before the commencement of each transaction.
According to Visa, the new service even provides far greater payment flexibility for “one-to-many” business transactions. In such instances, Company A would wish to transfer funds to multiple businesses around the world at the same time. With so many participants involved, the usual flow process would become even more convoluted with a geometric increase in the number of intermediaries and handshakes involved.
However, with the Visa B2B Connect system, the company would need only interface with a centralized platform that handles the disbursement of payments to the receiving entities in the different banks across the globe. Participants will also be able to track the progress of the transactions in real-time, which could vastly improve the transparency of international business payments.
Visa is the latest mainstream actor in the payment processing arena to announce a product that utilizes DLT in its settlement infrastructure. At the start of the year, JPMorgan Chase (JPM) unveiled the launch of its blockchain-based platform for institutional payment settlements.
Asreportedby Cointelegraph at the time, the U.S. banking giant also plans to launch its own cryptocurrency, dubbed “JPM Coin,” which will serve as a stablecoin facilitator of transactions between major corporations. Reports also indicate that the early iterations of the project will involve internal settlements between JPM clients.
The decision by the Wall Street behemoth struck a chord across the industry, given the sentiments previously espoused by its CEO, Jamie Dimon. Back in 2017, Dimon infamously characterizedbitcoin as a fraud.
Apart from JPM, banking giants fromJapan, Europe and the U.S. recently launched the Fnality Consortium with a $63 million Series A funding round. Fnality will utilize a system of USCs to facilitate cross-border payments involving many of the major fiat currencies in the world today.
Related:Bank to Basics: USC Project Seeks to Disrupt Traditional Wholesale Banking
The USC project extends even beyond payment settlement, as it aims to establish a network of blockchain-powered distributed Financial Market Infrastructures (dFMIs). These dFMIs will allow for full-spectrum value exchange transactions.
Much like Visa B2B Connect, the USC project has been four years in the making, andreports indicatethat the system will be up and running by mid-2020. Some of the major banks involved in the project include some big companies, as seen below.
However, not everyone believes that decentralized technology can disrupt the global payments arena.Tweetingon June 14, Henry Blodget, the CEO of Business Insider, maintained that the legacy digital payment systems worked fine and do not need to be replaced with cryptocurrency and blockchain technology. For Blodget, decentralized technology could find some application in cross-border payments, but beyond that, the mainstream avenues were still the more superior technology.
Given the target markets of these newly emerging payment networks, there is a question of whether these projects might constitute serious competition for cryptocurrency startup Ripple. Since it began operations, Ripple has consistently reiterated its intention of becoming the de facto global standard for international payment processing.
Ripple continues to sign partnerships with banks across the globe, encouraging the use of not only its ledger and payment products, but also theXRPcryptocurrency — in so, boosting its utility. With Wall Street banks and major corporations entering the blockchain-based payments arena, Ripple could face increasing competition for relevance in the evolving digital payments arena. It is, however, too soon to say which company will establish dominance when the landscape becomes fully realized.
The question could ultimately be decided by the strength of the technology offered by these different projects. Settlement layers that offer faster, cheaper, more efficient and moresecurepayment environments should see increased patronage, irrespective of the pedigree of the companies offering the technology.
For example, the Visa B2B Connect platform promises transaction settlement in 24 to 48 hours. This throughput time is significantly slower than that being offered by SWIFT’s Global Payment Initiative (GPI), which settles payments within an average of 24 hours.
Still, even SWIFT, the international payment network, has its sights set on blockchain technology adoption to further improve the operational capabilities of its GPI. In January, SWIFTannounced a partnershipwith R3 to develop a blockchain-powered upgrade to its GPI technology in the hopes of further reducing the throughput time for international payments.
On the Ripple ledger, the average settlement time is around four seconds, and it can handle close to 1,500 on-chain transactions per second. Ripple also charges significantly lower fees — even when compared to other blockchain networks — with a median transaction cost of about $0.0004.
• Visa Launches Global Cross-Border Network Based on Certain Aspects of Blockchain
• IBM Announces New Multicloud Update to Blockchain
• Global Banking Giant HSBC Launches Tokenization-Based Receivables System for India
• IBM, Hyperledger Blockchain ID System for Banks Launches in Brazil |
4 Things Investors Need to Know About Slack's Direct Listing
Slack is finally going public this week—but don’t expect an IPO.
The workplace messaging company is opting instead for a so-called direct listing.
Unlike an ordinary IPO, a direct listing means the company doesn’t issue any new shares and doesn’t raise additional capital. It’s primarily a way for company insiders to sell some of their holdings to investors, while bypassing the formidable fees and requirements of using an underwriter. AsFortunehas reported, only companies that are in excellent financial shape and already have widespread name recognition aregood candidates for direct listings.
According to the most recent reports, the collaboration software company will be seeking a $16 billion to $17 billion valuation—over double their value during their most recent private valuation of $7 billion.
However unlike IPOs, direct listings carry a unique set of challenges and considerations. Here’s what investors should look for.
Although Slack’s listing won’t have the same kind of investor hype as other stocks that went the traditional IPO route like Lyft or Zoom, analysts suggest watching for volatility to gauge the true market value of the company’s stock.
“Clearly what we’re going to be looking for on the day of is how stable the stock is in the immediate trading, because obviously there are no professional underwriters and market makers that are paid to stabilize the stock,” says Jane Leung, the managing director and chief investment officer at Scenic Advisement, a bank for private companies.
In terms of volatility, Leung thinks Spotify—which debuted last year via a direct listing—set a good precedent for Slack stock to follow. She says that investors saw the Spotify direct listing as very orderly compared to other more traditional IPOs.
But investors likely shouldn’t be too concerned about another Lyft or Zoom situation in terms of market volatility.
According to Eric Jensen, a partner at Cooley LLP, investors shouldn’t be seeing a lot of “fireworks” with the Slack debut.
With the pure supply-and-demand nature of listings like Slack, investors should monitor—but likely not be too concerned about—volatility in the first few days of trading.
Although analysts are speculative about Slack’s future plans, some suggest the company may do a so-called follow-on offering—a sort of second issuing of stock typically a few months after its first release to the public.
“It’s possible that anybody that does a direct listing just does a follow-on offering a month from now and it just looks like an IPO, it’s just a funky-looking IPO,” Deloitte & Touche Partner Barrett Daniels said. If Slack were to go down the follow-on offering route, Daniels suggests, other concerns about the possible short-sighted nature of foregoing the opportunity to raise cash—especially in an uncertain market when an extra billion couldn’t hurt—would be reduced.
And other analysts like Jensen suggest that if Slack sees an increase in trading prices from their $16 to $17 billion target, then “they’d be crazy not to say, ‘well, even if we don’t want to take too much dilution, … at these prices, why not raise an extra x billion.’”
If investor demand is high, as several analysts suggest it may be, Slack could see a subsequent debut as an option.
“There is a lot of investor appetite for [collaboration software],” said Rishi Jaluria, the senior vice president and senior research analyst at D.A. Davidson & Co.
Regardless, Slack’s already ample cash in the bank, a reported $841 million in 2018, according to the company’sS-1 filing, could last the company an additional 8.6 years at its current burn rate.
One thing to watch, say analysts, is the company’s growth.
Although growth declined slightly from the previous year, Slack’s revenues still grew about 82% in 2018. And most analysts remain bullish.
“The growth story and aftermarket performance of recent workplace collaboration businesses should give investors something positive to latch onto,” Cameron Stanfill, VC analyst at PitchBook, wrote in a note. And Stanfill isn’t alone.
While Slack’s growth has slowed slightly, Leung says that is typical for maturing companies. “They do have a lot of growth prospects…but even if they end up losing some of the value or don’t make quite a $16 or $17 billion valuation, they’ll still be a very strong tech company with a lot of headway,” Leung said.
According to the company’s latest projections, Slack expects to generate at least $590 million in revenue in the 2020 fiscal year—which would give the company a growth rate of 50% compared to the previous year.
In fact, Bloomberg Intelligence estimates Slack could generate up to 65% of their revenue in the next year from free-to-premium conversion—something investors bullish on the workplace communication system should keep an eye on.
But despite the nature of the listing, Slack’s decision to go with a direct listing over the traditional IPO stirs up questions on Wall Street—including the viability of ditching underwriters (and their standard 180-day lockups) altogether.
Some analysts see the path companies like Spotify and now Slack are blazing as a new direction for unicorns.
“I do think that it will be a bit of a milestone in the journey of how the IPO window has changed,” Leung said. “A lot of tech companies are not that keen on the traditional banking fees, and I think that the times are really changing.”
Leung says that since more and more money is being raised from the private markets in recent years, direct listings are entirely feasible for the right candidates (i.e. those with the right cash flows).
But despite the hype, plenty of other analysts see the Spotify (and potentially Slack) success story as a one-off.
“I think direct listings of these significant unicorns is still a bit of a new world,” Daniels said. Daniels believes traditional IPOs aren’t going anywhere, and that they’ll be “a significant part of the capital markets for the foreseeable future.”
“Two is a trend, but it’s not a terribly meaningful trend,” Daniels said.
With the universe of “unicorns” (private companies valued at $1 billion or more) now around 400 according to Daniels, he estimates only about 10—or roughly 2.5%—will be good candidates for the direct listing approach.
We’re guessing some of them will be side-slacking about that very topic tomorrow.
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How Should Investors React To Cintas Corporation's (NASDAQ:CTAS) CEO Pay?
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Scott Farmer has been the CEO of Cintas Corporation (NASDAQ:CTAS) since 2003. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Cintas
According to our data, Cintas Corporation has a market capitalization of US$24b, and pays its CEO total annual compensation worth US$9.8m. (This figure is for the year to May 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.2m. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
That means Scott Farmer receives fairly typical remuneration for the CEO of a large company. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Cintas has changed over time.
Over the last three years Cintas Corporation has grown its earnings per share (EPS) by an average of 28% per year (using a line of best fit). It achieved revenue growth of 6.8% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to checkthis free visual depiction ofwhat analysts expectfor the future.
Boasting a total shareholder return of 154% over three years, Cintas Corporation has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Scott Farmer is paid around what is normal the leaders of larger companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want tocheck for free if Cintas insiders are buying or selling shares.
If you want to buy a stock that is better than Cintas, thisfreelist of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
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