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6 Stocks Ready to Bounce on a Trade Deal
When it comes to the stock market, U.S. President Donald Trump’sTwitter(NYSE:TWTR) account may be the crystal ball which can help investors predict what’s going to happen next.
Back in early May, Trump fired off a tweet in which he said that China “broke” the trade deal, and that new tariffs would be coming soon. That tweet shook markets. Stocks fell. Over the next month, trade tensions between the U.S. and China heated up. Stocks kept falling. From Trump’s tweet to the end of May, theS&P 500shed more than 6%.
Now, in late June, Trump has fired off another trade-related tweet. But this one has a far more positive tone. Inthis tweet, Trump said that he and China President Xi Jinping are going to have an “extended meeting” next week at the G-20 Summit in Japan. That tweet surprised markets, since most investors presumed the two nations were on such disagreeable terms that a meeting at G-20 wasn’t going to happen. Now, it’s going to happen. That’s good news for markets. The S&P 500 responded by rallying more than 1% that same day.
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In other words, a Trump tweet was the very thing which started a big meltdown in markets in May, because that tweet basically said trade talks are not going well. Now, a different Trump tweet could be the very thing which starts a melt-up in markets in late June, because this tweet basically says that a trade deal could be coming soon.
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With that in mind, let’s take a look at six stocks that are ready to bounce in a big way in the event a trade deal does get struck between the U.S. and China sometime soon.
Source: Shutterstock
If the U.S. and China strike a trade deal in the foreseeable future, one stock that will fly higher isAlibaba(NYSE:BABA).
Being the juggernaut in the Chinese e-commerce landscape, Alibaba goes as the China economy goes. When China’s economy is firing on all cylinders, so is Alibaba. Revenue growth is big, margins are healthy and BABA stock moves higher. On the flip side, when China’s economy is slowing, Alibaba slows, too. Revenue growth decelerates, margins compress and BABA stock moves lower.
China’s economy was firing on all cylinders in 2017. That’s why Alibaba stock went from $90 to $180. But, China’s economy slowed in 2018. That’s why BABA stock fell from $180 to $130. Shares rebounded to $190 in 2019 as China’s economy picked up steam against the backdrop of improving trade relations. But trade relations deteriorated in May, and since then, BABA stock has dropped back to $160.
It looks like trade relations are back on the “getting better” path. So long as they remain on that path, BABA stock will move higher. In the event that a trade deal is actually struck, this stock will soar to levels above $200.
Source: Shutterstock
One under-the-radar growth stock which is set to win big if the U.S. and China strike a trade deal isiRobot(NASDAQ:IRBT).
iRobot manufactures and sells consumer household robotic products, with the present focus on robotic vacuums. This is a growth market. Low-level automation is the first step of the automation revolution, and iRobot is king in the low-level-automation world, creating machines which automate simple tasks that most people don’t like to do (vacuuming, mowing the lawn, cleaning the pool, so on an so forth). As such, as the automation wave gains mainstream traction over the next several years, household robotic adoption will rise rapidly and iRobot’s sales and profits will march higher. That growth will ultimately push IRBT stock higher, too.
This secular growth narrative has hit a snag with the trade war. iRobot is a U.S. company. One of its biggest growth markets is China. As such, iRobot is at the epicenter of the U.S.-China trade war, and every tariff hike back and forth results in higher input prices for the company. In short, trade war tensions between the U.S. and China have put the secular iRobot growth narrative on hold.
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If a deal is struck between these two countries, that holding period will end, and it will be replaced by resumption of the iRobot secular growth narrative. That resumption will put IRBT stock back on a winning path.
Source: Shutterstock
One growth-oriented way to play a trade war resolution is through buying shares ofLuckin Coffee(NASDAQ:LK).
Luckin Coffee is China’s brand new, hyper-growth coffee shop chain, which is surging throughout China using a unique, small-store, digital-first model that resonates with China’s millennial urban consumers. At scale, this company could one day turn into theStarbucks(NASDAQ:SBUX) of China. Starbucks has a $100 billion market cap. Luckin’s market cap is at $5 billion. As such, the runway for long term growth in LK stock is quite promising.
But, this is a China growth story, and if the China economy isn’t doing well, the LK stock growth narrative won’t be smooth. China’s economy won’t do well if trade tensions continue to escalate. But if a trade deal is struck, China’s economy will get back to firing on all cylinders. If that happens, the Luckin stock growth narrative will fire on all cylinders, too.
As such, a trade war resolution could be the exact catalyst LK stock needs to get started on a long-term winning path.
Source:rodrigofranca via Flickr
One global apparel giant that stands to benefit tremendously from a trade deal isNike(NYSE:NKE).
Nike is the world’s leading athletic apparel brand. As the world’s leading athletic apparel brand, the company has a ton of exposure to China, trade and tariffs. Roughly 26% of Nike brand footwear and apparel is manufactured in China, and the Greater China geography accounted for 15% of Nike brand sales last year. As such, Nike has broad exposure to both U.S.-China tariffs and a trade-related China economic slowdown.
Remove these issues, though, and Nike looks really good right now. The company is simultaneously benefiting from a secular rise in global athletic apparel adoption and growing share in that market using rapid product innovation and a shift to a direct-sales model.
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Broadly, then, if trade war risks disappear, NKE stock should fly higher. The rest of this growth narrative is on fire right now. Remove the one headwind, and that creates runway for big gains in Nike stock.
Source: Shutterstock
Along the same lines as Nike, another athletic apparel stock that should run higher if a trade deal is struck isFoot Locker(NYSE:FL).
Things look good at Foot Locker right now. After spending a few quarters below zero, comparable-sales growth is back in positive territory again, and comps were up nearly 5% last quarter. Physical stores are comping positive. Digital sales are growing at a double-digit pace. Gross margins are expanding. Profits are up.
Net net, the numbers at Foot Locker are pretty good, supported by a secular rise in athletic apparel adoption and stabilization in the physical and wholesale retail markets. The only problem here is the trade war. Unfortunately, it’s abigproblem. Owing to the athletic footwear market’s broad exposure to imports from China, Foot Locker presently finds itself at the epicenter of the trade war. The higher tariffs go, the worse things will get for Foot Locker.
But, if those tariffs go away entirely, things will get way better for Foot Locker. FL stock is cheap enough right now (8 times forward earnings) that if things do get better, the stock will bounce in a big way.
Source: Shutterstock
One sector that has been killed by the U.S.-China trade war is the semiconductor market, and one stock in that market that could win big in the event of a trade war resolution isIntel(NASDAQ:INTC).
The semiconductor space has a lot of U.S.-Asia trade exposure, with big customers and manufacturers on both sides of the Pacific Ocean. Thus, as trade tensions between the U.S. and China escalated, global semiconductor demand weakened and production costs became an issue. Consequently, semiconductor stocks dropped.
Intel was one of those stocks. As one of the world’s largest semiconductor companies, Intel has huge exposure to China. But a trade resolution between the U.S. and China should re-stoke demand and ease rising cost pressures. If that happens, Intel’s revenue and margin growth trajectories will meaningfully improve.
• 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019
Much like FL stock, INTC stock is cheap enough today (10x forward earnings) that any positive news on the trade front should put significant upward pressure on shares.
As of this writing, Luke Lango was long BABA, IRBT, LK, NKE, FL, and INTC.
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Geopolitics & Fixed Income ETFs
Joyce Choi is director of fixed income product strategy at BlackRock and a panelist at this week’s Inside ETFs Canada conference in Montreal. ETF.com caught up with Choi ahead of the conference to get her take on the latest developments in the fixed income markets. [Note: This interview took place on Monday, June 17.]
ETF.com: Tell us a little bit about what you'll be discussing on your panel.
Joyce Choi:Our panel is titled "Fixed Income: Why Uncertainty Is the Worst Thing for Investors."To be honest, I'm not sure if that title is necessarily apt, because I certainly think that uncertainty equals opportunity, particularly in trades of volatility.
Most of the points that I'll be addressing relate to the fact that we're going to be entering into a potential regime change from a period of global quantitative easing to that of one that's dominated by geopolitics. I’ll be talking about deglobalization and how it may affect global markets and result in higher headline volatility, causing some price dislocations and creating opportunities.
ETF.com: This new regime of geopolitics you’re talking about, is that primarily due to the trade war?
Choi:Exactly. And not only the direct implications of that, but also the secondary impact of how it affects sentiment, confidence, etc.
ETF.com: The Fed is about to make a big rate decision this week on Wednesday [today]. Market expectations are that it won’t move at this meeting, but that it will move aggressively to lower rates later this year. Is that something you foresee also?
Choi:There were some technical drivers of the bigger moves in the front end of the curve. We do think the market moved a little bit too fast too soon.
However, there could be one or two rate cuts in the pipeline, depending on how the economic data points play out. They're going to be biased for more downward cuts from here.
ETF.com: One thing I find interesting is that last year there was a lot of chatter about interest rates going up. There was this expectation that they would continue going up and normalize back to where they were before the financial crisis. But it seems that whole scenario is out the window after what’s happened this year. Are 2% Treasuries the new normal?
Choi:The front end of the rate curve is certainly telling you that the Fed is likely to cut rates from where we are today. There’s probably about 90 basis points of rate cuts that are priced in for 2019 and 2020.
If you translate that into the effect on the two-year and 10-year, that suggests we're going to see lower rates for longer.
ETF.com: One piece of advice I heard a lot last year was investors should shorten the duration of their fixed income holdings because of rising interest rates. With the outlook for rates completely turning around, is that advice no longer valid?
Choi:Last year we did see fairly heavy inflows into the short end of the curve and short duration ETFs. Conversely, this year, we've actually seen flows into the long end, whether it's the Treasury 20-year-plus or even the seven- to 10-year. So clearly, the market is looking toward extending that duration.
This plays out with the idea of duration as a hedge to a portfolio. Risks certainly do look asymmetric at this point, just given the rally that we've had year-to-date in risk assets. I think it's prudent to take some chips off the table here. Preserve your returns and use that extension in duration to help protect your portfolio in the second half of the year.
ETF.com: Aside from extending duration, what other general advice do you have for fixed income investors?
Choi:We advocate having some broad fixed income exposure to provide the duration that you need in a multiasset portfolio. It provides a hedge and carry that’s vital, particularly in these times of volatility.
That said, we're not necessarily ruling out high yield debt. We see tactical opportunities within emerging markets and high yield. Fundamentals are still fairly solid. Our base case isn’t that we're going to head into recession in the U.S. anytime soon, so corporate fundamentals should remain fairly stable from here over the next 12 months.
With the increased volatility and resulting price dislocation, there may actually be opportunity to go long high yield and emerging market debt.
Email Sumit Roy atsroy@etf.comor follow him on Twitter@sumitroy2
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YouTube and Universal Music Group are remastering old music videos
YouTube is perhaps the single biggest public repository ofmusic videos,but many are bit outdated, with visuals and audio designed for old TVs with single speakers, and others that could use a bit of an upgrade too. Manyvideosfrom major artists will soon look and sound much better though, as YouTube and Universal Music Group areremasteringalmost 1,000 of them "to the highest possible standards."
You can check out more than 100 of them today, including from the likes ofBoyz II Men,George Strait,Janet Jackson,Lady Antebellum,Lionel Richie,Meat Loaf,No Doubt,Gwen Stefani,Smokey Robinson,KissandTom Petty. If you already have videos from them saved on YouTube orYouTube Musicplaylists, you won't have to worry about finding new links. The remastered videos are replacing the previous versions, maintaining the same URLs, view counts and like numbers. You'll notice when videos have had an HD upgrade when you see a "Remastered" label in their descriptions.
More videos will be upgraded each week, and YouTube and UMG plan to remaster all the 1,000 or so titles by the end of next year. Working with UMG means that YouTube should have access to high-quality recordings, and upgrades to the audio acuity should come as particularly welcome news for YouTube Music subscribers. Fingers crossed other labels sign up too, but in the meantime, you can check out some of the fruits of YouTube's labors below. |
Interested In Photon Control Inc. (TSE:PHO)? Here's What Its Recent Performance Looks Like
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After reading Photon Control Inc.'s (TSE:PHO) most recent earnings announcement (31 March 2019), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. As a long-term investor I tend to focus on earnings trend, rather than a single number at one point in time. Also, comparing it against an industry benchmark to understand whether it outperformed, or is simply riding an industry wave, is a crucial aspect. Below is a brief commentary on my key takeaways.
Check out our latest analysis for Photon Control
PHO's trailing twelve-month earnings (from 31 March 2019) of CA$7.9m has jumped 17% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 9.1%, indicating the rate at which PHO is growing has accelerated. What's enabled this growth? Let's see if it is solely attributable to industry tailwinds, or if Photon Control has experienced some company-specific growth.
In terms of returns from investment, Photon Control has fallen short of achieving a 20% return on equity (ROE), recording 15% instead. However, its return on assets (ROA) of 12% exceeds the CA Electronic industry of 7.0%, indicating Photon Control has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Photon Control’s debt level, has declined over the past 3 years from 32% to 16%.
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Photon Control gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Photon Control to get a more holistic view of the stock by looking at:
1. Financial Health: Are PHO’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here.
2. Valuation: What is PHO 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 PHO 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.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Will humans really be back on the moon by 2024? A Q&A with space experts
When Vice President Mike Pence announced earlier this year that NASA would send humans back to the moon in 2024 – four years earlier than planned – the call evoked President John F. Kennedy’s famous rallying speech that spurred Americans’ first lunar landing. But the days of the Apollo program are long over. Fifty years ago, a Cold War competition between two superpowers motivated the first moon mission. Today NASA is still trying to convince Congress to appropriate money for such a return. Plus, the field is wider now – new international players have since joined the race, and commercial companies have their own plans for space travel. We hosted a live chat on Reddit with space industry experts to answer questions about the new moon race. A key question the panelists answered: What can we gain from going back to the moon at all? We’ve reproduced some of the top Q&As below, edited slightly for brevity and clarity. Question: What are the chances of this actually happening? There are still a lot of hurdles to overcome before an American stands on the moon again. One of the biggest is the cost. NASA is asking for $1.6 billion in fiscal 2020, but NASA Administrator Jim Bridenstine said the total cost of sending humans to the moon by 2024 is likely to be between $20 to $30 billion . It's unclear if Congress will appropriate that money, or where it would come from. Democratic lawmakers seem determined not to cut NASA's other science and STEM missions to pay for exploration. There's also the question of the outcome of the 2020 election. President Donald Trump has been vocal about his space ambitions, but so far, Democratic nominees have not made space a key talking point. A new administration could change or completely kill the mission to the moon. — Jacqueline Feldscher, POLITICO national security reporter Question: What is the point of going to the moon? We've already been there. Mars should be next. Exploration of the moon and Mars shouldn't be thought of as two different endeavors. The moon is a testbed for Mars and lets us test technologies we need. These tests are critical to enable our trip to Mars — e.g., life support without “easy” Earth resupply, radiation effects on humans, etc. And we can eventually use the moon's resources to produce prop for the transit to Mars. Story continues — Dina Contella, NASA’s Gateway Operations Integration Office Manager at the Johnson Space Center Also, as we think about exploration and extending the human neighborhood into the solar system and beyond, it would make sense to use the locations closest to us to learn as much as possible. For example, when teaching the Girl and Boy Scouts about camping, one doesn't typically go to the Grand Canyon on the first camping trip. You learn the skills in camping trips nearer to home. — Daniel Dumbacher, executive director of the American Institute of Aeronautics and Astronautics Question: How is planting a few more fading flags going to improve life here on Earth? NASA Administrator Jim Bridenstine recently made the case to me that investment in NASA pays dividends for life on Earth. He talked specifically about space-based communications, especially the impact they've had on rural parts of the world, and how space is increasing crop yields and feeding more people through the use of GPS. There's also a lot of medical research currently going on on the International Space Station, including testing out new drugs in orbit to figure out long term effects faster. The Gateway space station orbiting around the moon would also likely include some medical science that would improve life on Earth. The high level of radiation the station would be exposed to could make it especially useful for cancer research, a National Institutes of Health official told me earlier this year. — Jacqueline Feldscher, POLITICO national security reporter Question: Can the U.S. build space tech as economically and effectively as it could the last time we went to the moon? I am not so sure it was "economically" done in the Apollo era, as we were just understanding the physics and fundamental technical challenges. Today we are working on economic answers to meet market needs. With the rise of the private enterprise space companies and the resulting competition, we are fundamentally moving to a more effective way to explore space, and you see that in how NASA is using the capabilities of industry. The competition will establish the best locations to do the work, the wages paid for the skills, etc. in order to meet the market demands. — Daniel Dumbacher, executive director of the American Institute of Aeronautics and Astronautics Question: If we were to establish a lunar colony, where would it most likely be located? We won't be seeing "colonies" any time soon — there are lots of problems to solve, including how we protect humans from radiation, how we manage dust (which is a huge problem - it fouls machinery and spacesuits and gets everywhere) — but NASA is targeting the south pole of the moon because it appears to have water trapped in regolith (lunar soil) among other things. Water is most likely to be found in craters that have never seen the sun, where the temperature could be as low as -385F, so we may need nuclear power to warm things up enough to operate equipment there. There's a lot to develop, but the south pole is definitely a good target from what we know now. — Mary Lynne Dittmar, president and CEO of the Coalition for Deep Space Exploration Question: What is Trump's view on space exploration, and how much does presidential support matter to the space program? To what extent is NASA support a party line issue? Presidential or vice presidential leadership on anything makes a big difference, for better or for worse. In the Trump administration, the vice president’s leadership on the National Space Council (and the reinvigoration of the National Space Council in the first place) made a huge difference in the energy, from all levels of government, being injected into the policy making process. You don't have to look very far to see that President Trump and Vice President Pence have a strong interest in civil, commercial and national security space policy. Whether or not you agree with them is a different question, but the ability of the government to mobilize for any large-scale effort like going to the moon is absolutely proportional to the amount of leadership at the top. Imagine, for example, if JFK had never made his Moonshot speech or called on Congress to fund it. As far as the party line part of this question, it was my experience as a congressional staffer and while at the National Space Council that space policy wasn’t partisan, it was sometimes parochial, but almost never partisan. I think there is an argument to be made that the fact that Trump made the Space Force and moon 2024 signature space policy items for his administration means that it automatically had detractors, but even there, it is really more of a debate of “how” rather than “if.” It is also worth pointing out that, at least as far back as I can remember, almost every single space policy related legislation has either received unanimous consent or garnered huge bipartisan majorities in both the House and Senate. — Jared Stout, policy advisor at Venable LLP Question: Is China actually going to the moon and racing with the U.S., or is that being exaggerated? How much are they spending and when do they plan to have their first landing? Yes, China is "going," and it's a race in that there are valuable resources to be found there for both the benefit of folks on Earth and future civilization in space. Establishing operational zones that can't be impinged by other nations around specific strategic areas particularly in the polar regions (ice, sunlight, a particularly large imbedded asteroid mass) is a clear strategic goal for both U.S. and China. What China is spending is totally opaque as their governmental structure doesn't exactly require public accountability. It appears they are on track to be there around early 2030s. They have been slow, careful and methodical. In my opinion, they are neither bold enough nor creative enough to be a threat to the U.S. effort if we embrace the strength of commercial partners and do not impede our own efforts. This isn't to insult their efforts, but if you look at the fact that we went from zero to humans on the moon in less than a decade and they started human spaceflight in the early 2000s and have still only made a handful of flights with a dozen or so astronauts, it’s not very ambitious or impressive, specifically considering they've had 50 years of Soviet and U.S. tech to copy. — Greg Autry, director of the Southern California Commercial Spaceflight Initiative at the Lloyd Grief Center for Entrepreneurial Studies at the University of Southern California |
The Zacks Analyst Blog Highlights: Prologis, Mid-America Apartment and NexPoint Residential
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 includePrologis, Inc.PLD,Mid-America Apartment Communities, Inc.MAA andNexPoint Residential Trust, Inc.NXRT.
Here are highlights from Tuesday’s Analyst Blog:
3 REITs to Buy in June
The stock market's impressive run over the last few years placed high-flying growth stocks, often from the technology sector, front and center. However, the late 2018 downturn helped remind some investors about the need to diversify and add income to their portfolios, which means now might be time for investors to look at real estate investment trusts or REITs.
REITs are companies that own, operate, or finance real estate properties that produce income, such as apartment complexes or retail locations. These companies are heavily regulated and must meet a number of qualifications to be classified as a REIT, but they do offer investors a few distinct advantages.
First, real estate can be a very profitable investment sector when certain economic conditions are present. What's more, REITs must pay at least 90% of their taxable income in dividends to shareholders, so they are a great option for income investors looking for steady payouts.
The presence of mortgage debt makes this a rate-sensitive industry. But many companies offset this through strong funds from operations (FFO) growth, or they stick out from the pack with large amounts of their debt already fixed at a low rate.
Luckily our proven Zacks Rank, which emphasizes earnings estimates and estimate revisions, works with REITs just as it does with any other company. We prefer to use FFO as the metric of profitability here, but the trends work the same otherwise.
The strongest REITs are going to be those with improving outlooks and great Zacks Ranks. So, let's check out the REITs that our model says are impressive options right now:
1. Prologis, Inc.
Prologis is a logistics real estate-focused REIT that leases distribution facilities to two core customer groups: retail/online fulfillment and business-to-business. The firm boasts that it operates in high-growth markets that also have high barriers to entry. Overall, Prologis, which operates in roughly 19 countries, seems to have found a solid niche within the real estate market, as delivery and e-commerce expands in the Amazon age. PLD shares have soared over 37% in 2019 to crush its industry's 20% average climb, and Prologis stock just hit a new 52-week intraday trading high of $82.04 on Tuesday.
Prologis is coming off a better-than-projected first quarter of 2019. Looking ahead, our current Zacks Consensus Estimate calls for the firm's second quarter revenue to jump nearly 30% to $705.5 million, which is projected to lift its FFO by 8.5% to $0.77. Prologis' adjusted full-year FFO is projected to jump 6.3% on the back of over 19% revenue growth. PLD has also seen a ton of positive bottom-line revisions recently to help the firm earn a Zacks Rank #2 (Buy) at the moment. Prologis currently pays an annualized dividend of $2.12, for a yield of 2.62%.
2. Mid-America Apartment Communities, Inc.
Mid-America Apartment Communities' business model is pretty evident from its name. The Germantown, Tennessee-based REIT operates apartment communities throughout 'high-growth' regions in the Southeast, Southwest, and Mid-Atlantic. In fact, as of the end of March, MAA held ownership interest in a total 101,954 apartment homes, which includes those in communities under development, across 17 states and D.C. Like Prologis, MAA is coming off top and bottom-line beats in Q1. Shares of Mid-America Apartment Communities are now up 24% in 2019 and 23% over the last 12 months.
Last quarter, the firm declared its 101st consecutive quarterly common dividend at an annual rate of $3.84 per common share, and MAA's dividend yield currently rests at an impressive 3.23%. MAA's P/E ratio of 19.1 also marks a slight discount compared to its industry's average. The company's current full-year revenue is projected to jump 3.5% to $1.63 billion, with the following year expected to come in 3% higher than our current-year estimate. At the bottom end, MAA's FFO is projected to pop 3% this year and 2.8% above that next year. Mid-America Apartment Communities has also seen its longer-term FFO estimate revision activity trend upward recently to help it earn a Zacks Rank #2 (Buy).
3. NexPoint Residential Trust, Inc.
NexPoint Residential is an externally advised REIT that operates in the multifamily space, mostly in the Southeast and Texas. The company aims to own and operate properties with well-paying jobs in the area that also have a limited supply of new affordable housing. This allows them to stand out through high-quality "life-style" amenities. Shares of the Dallas, Texas-based firm have soared 50% in the past year to destroy its industry's 11% average. NXRT stock opened at $40.71 per share Tuesday, just below its their 52-week intraday trading high of $41.91.
Moving on, NexPoint's full-year adjusted FFO is projected to climb 10.6% to $2.08 per share. Meanwhile, the company's fiscal 2019 revenue is expected to surge 17.1% to hit $171.62 million. NexPoint's price/sales ratio of 6.27 rests below its industry's average of 6.56. The firm currently pays an annualized dividend of $1.10 a share, for a yield of 2.71%. NexPoint is a Zacks Rank #1 (Strong Buy) right now that sports an "A" grade for Growth in our Style Scores system.
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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 reportNexPoint Residential Trust, Inc. (NXRT) : Free Stock Analysis ReportMid-America Apartment Communities, Inc. (MAA) : Free Stock Analysis ReportPrologis, Inc. (PLD) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
What Can We Learn From CRH Medical Corporation’s (TSE:CRH) Investment Returns?
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Today we'll evaluate CRH Medical Corporation (TSE:CRH) to determine whether it could have potential as an investment idea. To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business.
First up, we'll look at what ROCE is and how we calculate it. Second, we'll look at its ROCE compared to similar companies. Finally, we'll look at how its current liabilities affect its ROCE.
ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. In general, businesses with a higher ROCE are usually better quality. Overall, it is a valuable metric that has its flaws. Author Edwin Whitingsaysto be careful when comparing the ROCE of different businesses, since 'No two businesses are exactly alike.'
The formula for calculating the return on capital employed is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
Or for CRH Medical:
0.10 = US$20m ÷ (US$212m - US$15m) (Based on the trailing twelve months to March 2019.)
Therefore,CRH Medical has an ROCE of 10%.
Check out our latest analysis for CRH Medical
One way to assess ROCE is to compare similar companies. It appears that CRH Medical's ROCE is fairly close to the Healthcare industry average of 10%. Separate from CRH Medical's performance relative to its industry, its ROCE in absolute terms looks satisfactory, and it may be worth researching in more depth.
CRH Medical's current ROCE of 10% is lower than 3 years ago, when the company reported a 15% ROCE. This makes us wonder if the business is facing new challenges.
It is important to remember that ROCE shows past performance, and is not necessarily predictive. ROCE can be deceptive for cyclical businesses, as returns can look incredible in boom times, and terribly low in downturns. This is because ROCE only looks at one year, instead of considering returns across a whole cycle. Since the future is so important for investors, you should check out ourfreereport on analyst forecasts for CRH Medical.
Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. To check the impact of this, we calculate if a company has high current liabilities relative to its total assets.
CRH Medical has total liabilities of US$15m and total assets of US$212m. Therefore its current liabilities are equivalent to approximately 7.0% of its total assets. Low current liabilities have only a minimal impact on CRH Medical's ROCE, making its decent returns more credible.
This is good to see, and while better prospects may exist, CRH Medical seems worth researching further. CRH Medical shapes up well under this analysis,but it is far from the only business delivering excellent numbers. You might also want to check thisfreecollection of companies delivering excellent earnings growth.
If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Here's Why Green Plains Fell as Much as 12.5% Today
Shares ofGreen Plains(NASDAQ: GPRE)fell more than 12% today after the company suspended its dividend. The decision will save approximately $20 million per year for the business. While it's not exactly the type of news that shareholders want to hear, especially considering the annual dividend yield was just shy of 4%, management is making the right move for the long-term health of the company.
Well, sort of. Management intends to redirect the cash flow toward capital investments aimed at increasing operating efficiency by significantly lowering ethanol production costs. However, Green Plains said it would also prioritize an existing share repurchase program, which might raise some eyebrows among shareholders.
As of 11:59 a.m. EDT, the stock had settled to a 9.5% loss.
Image source: Getty Images.
Today's news isn't too surprising for investors that have beenfollowing along with business updatesfrom the ethanol leader in the last year. Ethanol prices have sunk to their lowest levels since 2002, which has forced Green Plains to divest assets, pay down debt, refocus on its core strengths, and attempt to drive ethanol production costs sharply lower. The dividend was likely to be a casualty of that financial reality sooner or later.
Management attempted to blunt the news of the suspended dividend by simultaneously announcing a debt offering for $105 million in gross proceeds. Roughly $58 million will be used to repurchase older debt notes that were about to come due, which will effectively push the maturity date to 2024. Another $40 million will be used to immediately repurchase Green Plains stock under an existing $100 million share repurchase program, of which $80 million remained.
On the one hand, Green Plains stock is relatively cheap right now. Shares trade at half of book value, so buying back stock could prove valuable. On the other hand, investors might be right to question why management isn't instead using the infusion of capital to accelerate operating efficiency plans.
Consider that management has for years talked about abolt-on technologyfor turning corn byproducts into high-protein animal feed products. The technology is expected to boost ethanol margins by as much as $0.10 per gallon, which would add up to a $110 million windfall across the company's 1.1-billion-gallon-per-year production footprint. However, the high-protein technology will only be installed at 1 of 13 ethanol manufacturing facilities owned by Green Plains by the end of 2019.
Are the cost savings now expected to be lower, or is management trying too hard to woo short-term thinking on Wall Street with share repurchases?
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Is It Too Late To Consider Buying GNC Holdings, Inc. (NYSE:GNC)?
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GNC Holdings, Inc. (NYSE:GNC), which is in the specialty retail business, and is based in United States, saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. As a small cap stock, which tends to lack high analyst coverage, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s take a look at GNC Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists.
View our latest analysis for GNC Holdings
Good news, investors! GNC Holdings is still a bargain right now. 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 GNC Holdings’s ratio of 2.92x is below its peer average of 14.53x, which suggests the stock is undervalued compared to the Specialty Retail industry. What’s more interesting is that, GNC Holdings’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of GNC Holdings, it is expected to deliver a highly negative earnings growth in the upcoming, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
Are you a shareholder?Although GNC is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. Consider whether you want to increase your portfolio exposure to GNC, or whether diversifying into another stock may be a better move for your total risk and return.
Are you a potential investor?If you’ve been keeping an eye on GNC for a while, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on GNC Holdings. You can find everything you need to know about GNC Holdings inthe latest infographic research report. If you are no longer interested in GNC Holdings, 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. |
CEOs of some U.S. firms to meet Chinese Premier Li this week - Bloomberg
June 19 (Reuters) - Top executives of at least five U.S. companies are scheduled to meet Chinese Premier Li Keqiang this week, Bloomberg reported on Wednesday, citing people familiar with the matter.
The U.S. firms whose chief executive officers would be attending the meeting in Beijing would include Dow Inc, United Parcel Service Inc, Pfizer Inc and Honeywell International Inc, Bloomberg reported https://www.bloomberg.com/news/articles/2019-06-19/u-s-ceos-to-meet-china-s-premier-this-week-as-trade-woes-simmer.
China and the United States, the world's two largest economies, have agreed to revive trade talks after a long lull in efforts to resolve a costly trade dispute that has put pressure on financial markets and damaged the global economy. (Reporting by Ismail Shakil in Bengaluru Editing by Susan Thomas) |
UPDATE 1-Privatisation of Slovenia's Abanka will see it merge with domestic rival
(Updates with quote, details)
By Marja Novak
LJUBLJANA, June 19 (Reuters) - Slovenia said on Wednesday that its second biggest bank Nova KBM (NKBM) will buy the country's No. 3 lender Abanka after submitting the winning bid in a scheme to privatise the lender.
Slovenia promised to sell Abanka, which is 100% state owned, in exchange for the European Commission's approval of state aid to the bank in 2013.
Slovenian Sovereign Holding (SDH), which is in charge of privatisations, said NKBM, which is owned by U.S. investment fund Apollo, put in the best bid. Details of the deal will be disclosed after the sales contract is signed, which is expected on Thursday.
"The (sales) procedure was quite long, transparent and competitive," Igor Krzan, president of the management board of SDH, told reporters.
Apollo could not be reached for comment.
According to local media, Hungarian bank OTP was the other bidder for Abanka. Daily Delo had reported that each bidder was offering about 400 million euros ($449 million) for the bank.
Abanka has a market share of about 9.6% when measured in balance sheet assets. With the takeover, Apollo will increase its share of Slovenia's banking market to around 22%.
Abanka received state aid worth 780 million euros in 2013 and 2014, which prevented it from collapsing under a large amount of bad loans.
The unlisted Abanka reported earlier on Wednesday that its net profit fell to 18.6 million euros in the first quarter of this year, from 25.5 million euros a year ago, mainly due to lower non-interest income this year.
It reduced its bad loans to 3.9% of all loans at the end of March, down by 0.7 percentage point since the end of 2018, it said. ($1 = 0.8916 euros) (Reporting by Marja Novak; editing by Susan Fenton) |
Uncertainty can follow grief when small business owner dies
NEW YORK (AP) — When Jim McLaughlin died suddenly from a heart attack at age 64, his family assumed they would have to close his homebuilding business. He'd made no plans for someone to succeed him at McLaughlin Construction, and there was no employee who could step in and take his place. But as McLaughlin's son-in-law, Chris Carr, started to wind down the Sea Isle City, New Jersey, company five years ago, he realized it was worth keeping open and that he, an accountant, should try to run it. "The main issue I had to deal with was, how in the world could we convince customers that it's a good idea to build a house with a guy who was an accountant 30 days before this," Carr says. Working with his wife Kristy, he also had to reassure employees and contractors worried about their livelihoods, and encourage them to stay with the company. Many small business owners have no plans for what will happen to their companies when they die. The spouses, children or other relatives who step into the breach have to quickly learn the business, sometimes after sorting through haphazard records, and, as Carr did, try to win the confidence of staffers and vendors. Surveys taken by banks and insurance companies in recent years found that most owners haven't created what's known as a succession plan that provides for who will own and run a business after the owner's death. But even those who have plans may not have written them or communicated them to anyone — including their chosen successors. "They don't want to think about it," says Jillyn Hess-Verdon, an attorney based in Newport Beach, California, who does estate and succession planning. "Most of my clients spend more time planning a two-week vacation than they do the succession of a business." At McLaughlin Construction, the transition was eased by the fact Jim McLaughlin kept good records. But as is the case at many small companies, he was the business; his personality and track record were what brought customers in. As Carr talked to employees and contractors, he got up to speed and ensured that the projects underway were completed. He then had to convince prospective customers he would deliver the same service and quality McLaughlin did. It took three years before he felt the business was back on the trajectory it had before McLaughlin's death. Story continues Succession planning involves legal as well as practical issues, Hess-Verdon says. When there isn't a plan, family members can end up fighting over a company in court; the ensuing time, money spent and strife can distract from running the business. In partnerships, the battle can be between the family and the surviving partner or partners. "It can be really damaging to the asset itself," Hess-Verdon says. The business can also suffer when practical matters aren't dealt with before a death. For example, if the person or people who take over the company's operations need to be licensed and aren't, legally they're not allowed to be running the business, Hess-Verdon says. There can be unpleasant surprises. When Randy Hansen was about to have a bone marrow transplant as he fought leukemia, he wrote down some basic information about his agricultural business and gave it to his wife, Sandy. Hansen thought he'd be OK, but three months later, in January 2003, he died at the age of 34. Soon after, his wife discovered that AgVenture Feed & Seed was close to bankruptcy; there was a bad farming economy at the time and Hansen had just bought out his former partner, burdening the Watkins, Minnesota, company with debt. "He was a typical entrepreneur who didn't have a lot of policies written down," Sandy Hansen-Wolff recalls. "I feel like I went on a daily journey, getting through the day, handling my grief and also figuring the company out." Hansen-Wolff found herself in difficult conversations with bankers and vendors about the company's financial position. She would hear third-hand that some suppliers publicly expressed doubts about her ability to keep the company going, saying, "she'll never be able to do it." As part of her learning curve, Hansen-Wolff developed a strategy of staying tough. "I told them, 'either you are working with us or you are working against us,'" she says. After about a year, the company was turning around. Trying to access online accounts including social media can be a nightmare for someone trying to keep a company going after the owner's death. David Lyon owned a publishing business that he used to sell his own engineering books. When he suddenly died from a heart attack in December 2017, his daughter Jen took over Raven Publishing Co., based in Pittsfield, Massachusetts. While David Lyon had left a binder with some important information, it didn't include the password to his email. Soon after his death, his social media accounts were hacked and Jen Lyon couldn't respond to requests from readers. "That's a lot of how he got business — people reached him on LinkedIn," she says. There were other problems. She had to search through his computer files to understand issues like keeping copyrights going and renewing her father's business licenses. In order to keep marketing the books, she had to learn where he sold them, and what he did to advertise them. "It's a matter of a lot detective work," she says. "I wish I had an opportunity to have a conversation with him before he passed away." _____ Follow Joyce Rosenberg at www.twitter.com/JoyceMRosenberg . Her work can be found here: https://apnews.com . |
Harley-Davidson will team with Chinese firm to make motorcycle for Asian market
Harley-Davidson Inc. and a Chinese firm will manufacture a "smaller, more accessible" Harley motorcycle for sale at Harley dealerships in China next year and eventually elsewhere in Asia, the Milwaukee company said Wednesday.
Harley is teaming with Zhejiang Qianjiang Motorcycle Co. Ltd in the effort. Together, the firms will develop a 338 cubic centimeter bike that Harley plans to sell in its dealerships in China by the end of 2020.
The motorcycles will be made in a Qianjiang factory in China.
Harley said the bike will be manufactured to its quality standards and testing processes and "will embody a distinctive look, sound and feel that will spark powerful connections with riders."
Qianjiang Motorcycle, founded in 1985, is a subsidiary of Geely Technology Group specializing in making and selling motorcycles, engines and components. In 2005, Qianjiang acquired Italian motorcycle manufacturer Benelli. Qianjiang’s products include motorcycles from 50 cc to 1130 cc and are exported to more than 130 countries and regions.
This article originally appeared on Milwaukee Journal Sentinel:Harley-Davidson will team with Chinese firm to make motorcycle for Asian market |
What Kind Of Share Price Volatility Should You Expect For The Children's Place, Inc. (NASDAQ:PLCE)?
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If you're interested in The Children's Place, Inc. (NASDAQ:PLCE), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. The first type is company specific volatility. Investors use diversification across uncorrelated stocks to reduce this kind of price volatility across the portfolio. The second type is the broader market volatility, which you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks on the market.
Some stocks are more sensitive to general market forces than others. Beta 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 below one is either less volatile than the market, or more volatile but not corellated with the overall market. In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.
Check out our latest analysis for Children's Place
Looking at the last five years, Children's Place has a beta of 0.86. The fact that this is well below 1 indicates that its share price movements haven't historically been very sensitive to overall market volatility. This means that -- if history is a guide -- buying the stock would reduce the impact of overall market volatility in many portfolios (depending on the beta of the portfolio, of course). 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 Children's Place's revenue and earnings in the image below.
Children's Place is a small company, but not tiny and little known. It has a market capitalisation of US$1.5b, which means it would be on the radar of intstitutional investors. Small companies often have a high beta value, but they can be heavily influenced by company-specific events. This might explain why this stock has a low beta.
One potential advantage of owning low beta stocks like Children's Place is that your overall portfolio won't be too sensitive to overall market movements. However, this can be a blessing or a curse, depending on what's happening in the broader market. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as Children's Place’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 PLCE’s future growth? Take a look at ourfree research report of analyst consensusfor PLCE’s outlook.
2. Past Track Record: Has PLCE 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 PLCE's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how PLCE 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. |
Cemtrex (CETX) Looks Good: Stock Adds 5.8% in Session
Cemtrex, Inc.CETX was a big mover last session, as the company saw its shares rise nearly 6% on the day. The move came on solid volume too with far more shares changing hands than in a normal session. This continues the recent uptrend for the company as the stock is now up 48.1% in the past one-month time frame.
The company has seen no estimate revisions over the past few weeks, while the Zacks Consensus Estimate for the current quarter remained unchanged. The recent price action is encouraging though, so make sure to keep a close watch on this firm in the near future.
Cemtrex currently has a Zacks Rank #3 (Hold) while its Earnings ESP is 0.00%.
Cemtrex Inc. price | Cemtrex Inc. Quote
A better-ranked stock in the Pollution Control industry is CECO Environmental Corp. CECE, which currently carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Is CETX going up? Or down? Predict to see what others think: Up or Down
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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 reportCECO Environmental Corp. (CECE) : Free Stock Analysis ReportCemtrex Inc. (CETX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Why U.S. Housing Market May Be Healthier Than We Think
The Census Bureau’s monthly report on new home construction is one of the most important economic indicators out there.
Since homebuilding, buying, and furnishing, fuel jobs in many industries, it’s a key metric to track to sound smart when talking about the economy with your friends—and make good financial decisions yourself.
Recap of Yesterday’s May 2019 Housing Starts & Building Permits Data:
– 1,294,000 building permits issued
– Construction started on 1,269,000 new homes
– 1,213,000 new homes finished in May
– Building permits up 0.3% from April to May, but down 0.5% from May 2018
– 3.7% increase in building permits for single-family homes from April to May
– 1,269,000 housing starts in May down 0.9% from April estimate*, down 4.7% from May 2018
– Housing completions down 9.5% from April estimate and down 2.8% from May 2018
Key Takeaways:
Some of these numbers might look nasty at first. May housing starts and completions both fell well below the government’s estimates from last month.
1.26 million is relatively low for housing starts—the modern historical norm for housing starts is between 1.3 and 1.5 million.
Is this a sign of a housing slump?
Not if you ask me.An increase in building permits (0.3%) and a notable increase in permits for single-family homes (3.7%) is a healthy economic indicator.It shows builders are still confident about demand for homes.
Housing starts are a leading indicator, meaning it shows us where the economy is going—not where it’s been. That’s why forward-looking numbers like permits are the most important part of this data.
If we saw consistent declines in permits and starts, that can tip off an economic slowdown or a recession. This data shows we have a slump in housing starts, but build permits are still growing.
Homebuyers are still hungry for their slice of the American Dream (and for what it’s worth,I don’t see this waning eitherbecause it’s part ofour American DNA).
If builders are building new homes, that means the homeowners are going to buy furniture, appliances, and all the tchotchkes that come with home ownership, fueling more economic activity.
Withmortgage rates at insane lows, former fence-sitting homebuyers might jump into the market, and this could continue to bolster building permits in the next few months.
We’ll keep watching and translating it for you, and below are a few other digestible economic updates.___Reference:
–The jobs report nobody talks about tells us 2 critical things about the economy
–7 Million U.S. Homeowners Can Refi Right Now. That’s 1 Million More Than Last Week.
–Weak May Jobs Growth Keeps Mortgage Rates Insanely Low
–*This comes with a ridiculous 12.9% margin of error, so as always, we have to wait until next month’s revisions to fully make sense of this number.
Linkage: real estate boom slowing doesn’t mean a bubble is busting
In work & life, you succeed on your strengths, not your weaknesses
Linkage: Why Brand Rules All Of Main Street & Wall Street |
Tom Hanks and Alec Baldwin Want You to Try Meat-Free Mondays
Photo credit: Getty Images From Men's Health Tom Hanks and Rita Wilson skip meat on Mondays, and they want you to try it, too. The couple joined the Meat Free Monday movement in honor of the non-profit's 10-year anniversary. The organization was launchd by Paul and Stella McCartney in 2009 to encourage people to eat less meat. The idea is to eat a plant-based diet at least one day a week. The couple shared their support of the movement on Tuesday in a video posted from Wilson’s Twitter account. The duo wished the non-profit a happy birthday and explained why they supported the cause. “Doing without meat is good for the planet, and the animals we share it with,” says Hanks. Wilson chimes in to say that plant-based diets also have health benefits. “It’s nice to do with less meat those who aren’t full-fledged vegans or vegetarians, no meat on Monday, it’s actually a simple and easy thing to do. Let's do it,” says Hanks. Why not try one day a week without meat? Good for the planet and your body. #MeatFreeMonday @PaulMcCartney @StellaMcCartney @maryamccartney pic.twitter.com/UJxROBbrpY - Rita Wilson (@RitaWilson) June 17, 2019 For their 10 year anniversary, Meat Free Monday launched its #MFMCountMeIn campaign that asks celebrities, businesses, nonprofits and other supporters to share how they go meat-free. Search the hashtag on Facebook , Twitter or Instagram to see how others support the movement. Other celebrity supporters include Alec Baldwin, Chris Martin of Coldplay and Katy Perry. All have shared their support on Instagram. Story continues View this post on Instagram Meat free Monday!! A post shared by Alec Baldwin (@alecbaldwininsta) on Jun 17, 2019 at 1:06pm PDT View this post on Instagram Happy 10th birthday to #MeatFreeMonday! #MFMCountMeIn Love c, w, g, j & p A post shared by Coldplay (@coldplay) on Jun 17, 2019 at 2:38pm PDT Of course, you shouldn't follow the movement just because a celebrity said so. Research consistently shows that plant-based diets are linked with a lower risk of cancer , heart disease, and blood pressure. If you want to reduce meat consumption without sacrificing protein, fill up on lentils, beans, quinoa and broccoli . ('You Might Also Like',) A Vegan Diet Helped This Man Lose 150 Pounds and Improve His Mental Health How to Cool Down After Your Hardest Workouts What Is The Lectin-Free Diet? |
Leaked email raises new questions about PolyMet water permit
MINNEAPOLIS (AP) — A leaked email shows that a senior official sought to keep the public from knowing federal Environmental Protection Agency staffers' concerns about the pollution risks of a planned PolyMet copper-nickel mine in northeastern Minnesota, critics of the project contend. In a March 2018 email that Shannon Lotthammer, who was then assistant commissioner of the Minnesota Pollution Control Agency, sent to EPA regional Chief of Staff Kurt Thiedel, she asked that EPA staffers not file written comments during the state's public comment period on the mine's water quality permit. This kept EPA staffers' concerns about the proposed project out of the public record, the Star Tribune reported Wednesday. "We have asked that EPA Region 5 not send a written comment letter during the public comment period and instead follow the steps outlined in the MOA, and wait until we have reviewed and responded to public comments and made associated changes," Lotthammer wrote in the email, which was released Tuesday by the union that represents employees of the EPA's Chicago office, which oversees Minnesota's enforcement of federal pollution laws. The term "MOA" refers to a memorandum of agreement the agencies signed decades ago delegating federal enforcement authority to the state. The state approved the water quality permit in December. Lotthammer, who is now an assistant commissioner at the state Department of Natural Resources, declined to comment about the email when contacted by the newspaper. But MPCA spokesman Darin Broton downplayed its significance, saying the two agencies spoke frequently about PolyMet's water permit, and that the MPCA "made substantive changes" to the permit based on those conversations. He called the process "rigorous" and "professional." Documents that the EPA tried to keep confidential before releasing them last week show that its staffers criticized how the MPCA drafted the permit and concluded that the permit would violate federal law because it lacked pollution limits based on the state's water quality standards. Instead of filing the documents into the public comment record, EPA staffers read the comments to MPCA staffers over the telephone. Story continues The EPA's inspector general's office said last week that in response to a hotline complaint, it had opened an investigation into whether EPA officials properly followed the appropriate regulations during the permit review process. It asked Region 5 Administrator Cathy Stepp for documents from all staff and management related to the permit, including the written comments for the permit. U.S. Rep. Betty McCollum, who has been critical of the EPA for failing to submit formal written comments and who chairs a subcommittee with jurisdiction over the EPA, faulted both agencies for a lack of transparency. "This e-mail communication appears to represent an absolutely intolerable breach of the public trust by two regulatory agencies," the Minnesota Democrat said in a statement. "The public has every right to question whether the PolyMet permitting process was rigged against the legitimate environmental and public health interests of Minnesotans." The union that released the email, American Federation of Government Employees Local 704, said the email was more evidence of malfeasance. "Folks are not following the rules at the MPCA and the EPA, and the public should know about it," Nicole Cantello, president of the local, told the Star Tribune. Environmental groups have been fighting PolyMet over the potential threat of acid drainage from the sulfide-bearing mine waste to downstream waters and are challenging the project in court. The company says the project's extensive environmental review established that the mine can operate safely within state and federal pollution control rules. PolyMet, whose largest investor is Swiss commodities giant Glencore AG, has secured all the state and federal permits it needs and is now raising nearly $1 billion for construction financing. The MPCA and the state Department of Natural Resources approved PolyMet's state permits late last year before Democratic Gov. Mark Dayton left office. Dayton supported the project, saying the risks were worth taking but that he would stay out of the permitting decisions. Dayton opposed another proposed copper-nickel mine that is still in the planning stages, Twin Metals near Ely, because it is in a watershed that flows into the Boundary Waters Canoe Area Wilderness. ___ Information from: Star Tribune, http://www.startribune.com |
'Borderlands 3' Brings Big Potential Profits, Big Potential Headaches to Take-Two
Video game maker Take-Two Interactive is no stranger to controversy.
In recent years, the publisherGrand Theft Autoserieshas had to defend itself innumerable times over that hit game’s often violent content. And now Take-Two must do so again over accusations against the independent company that is developing Take-Two’s highly-anticipated game,Borderlands 3, which is to premiere on Sept. 13.
In the past few months, Randy Pitchford, the head of Gearbox Software, the company developingBorderlands, has faced a number of accusations. Gearbox’s former general counsel filed a lawsuit accusing Pitchford of, among other things, taking a secret$12 million bonusthat risked reducing the royalties that other employees ultimately received from the latest installment in the series. (Pitchford has countersued.)
Meanwhile, a formerBorderlandsvoice actor has accused Pitchford ofassault, saying he was shoved during an altercation at the 2017 Game Developer’s Conference. However, the actor never reported it to authorities.
Gearbox has denied the accusations, but the gaming world is still talking about them. And that putsStrauss Zelnick, Take-Two’s CEO, in an awkward spot.Borderlands 3is expected to be critical to the company’s business this year, but even though Gearbox is an independent developer, Take-Two, as the game’s publisher, could suffer some damage to its reputation.
Zelnick, though, downplays the risk.
“Gearbox has said the complaints are without merit and we take them at their word,” he says. “The marketing of the game is all about the game, and shouldn’t be about the individual. … I don’t think a black and white perspective is helpful here. There are certain behaviors that, by their nature, are unacceptable and there are others that are less so. Allegations are different than facts. And everyone has to make their own decision.”
Zelnick says he “wouldn’t rule out” an independent investigation, but there are no plans to conduct one now.
“I think in the world of social media, everyone has a voice and there’s great power in that and I’d be the last to criticize it, but there are moments where reputations are unfairly tarnished,” he says. “I’m a big believer that allegations require a full hearing. … We stand behind what we do and that means we take responsibility for choices that are made on our watch.”
The troubles surroundingBorderlands 3come at the same time the overall video game industry is facing calls for developers to unionize, amid concerns over the long hours they put in at the end of a game’s development (known as “crunch” in the industry). At the annual E3 video game conference in Los Angeles last week, proponents handed out flyers to attendees about their unionization push.
Zelnick says Take-Two prides itself on having a great work environment, and will comply if employees decide to organize, but says he doesn’t see it as a necessary step.
“Most people who work in this industry are utterly passionate about what they do and are devoted to working hard to create the very best outcome,” he says. “Sometimes there are challenging moments, where you really have to put in extra effort. All of us do that. All of us at Take-Two do that and all of us in the industry do that.”
Take-Two’s Rockstar Games studio (makers ofGrand Theft Auto) have been in the center of the debate about unionization, with stories ofextended working hours during crunch times. Zelnick did not address those complaints.
He did, however, discuss in a very roundabout way what could be next for the superstar developer. Take-Two never talks about any element of Rockstar’s upcoming games until they’re revealed. And withRed Dead Redemption 2hitting shelves last year, it’s likely going to be a while before we hear about Rockstar’s next title.
Rockstar’sGrand Theft AutoV came out in 2013, but was still one of last year’s top sellers. The game’s multiplayer component, GTAOnline,has been atremendous profit driverfor Take-Two, and has typically been the single biggest contributor to repeat consumer spending each quarter.
However, when asked if Rockstar’s current focus was on single player games or the lucrative online components ofGTA OnlineandRed Dead, Zelnick hinted at a third, unknown option.
“Going forward, the Rockstar team sets the standard for recreating themselves and recreating everything that they’re working on,” he said. “And the last thing they are would be devoting themselves to slavishly recreating the past. To the contrary, I think they’re totally focused on anything they do, exploding expectations.”
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Sri Lanka's economy recovered in first-quarter but faces slump after April bombings
COLOMBO (Reuters) - Sri Lanka's economy grew at its fastest pace in nearly a year from January to March, before the Easter Sunday bomb attacks on April 21 killed over 250 people, crushing the island's tourism sector.
The economy gained 3.7% in the first quarter of 2019, accelerating from a growth rate of 1.8% the previous quarter - its slowest pace since early 2014, due to a political crisis.
Despite the recovery at the start of this year Sri Lanka's economy is expected to slump to a nearly two-decade low in 2019, a Reuters poll showed, as tourism, foreign investment and business activity eased sharply in the wake of the bombings.
"There was some recovery in the first quarter with the recovery in consumer demand but we expect a big hit in the second quarter due to the bomb attacks," said Dimantha Mathew, research head at First Capital Holdings.
"We expect zero or negative growth in the second quarter and around 1.5% growth in the third quarter but we expect a recovery in the fourth quarter which will help the full year growth to be less than 2%."
Last month, central bank Governor Indrajit Coomaraswamy said he expected the economy to grow by 3% or less this year, dented by the impact of the bombings. The bank had earlier projected 4% growth.
Sri Lanka's services sector, accounting for more than half of the economy, grew at 4.1% in the first quarter of 2019, compared to 4.4% in the same period last year, data issued by the statistics department showed on Wednesday.
The industrial sector, accounting for more than a quarter of the economy, grew by 3.0%, compared to 1.7% growth the previous period while agriculture grew 5.5%, compared to an earlier 5.1%.
Growth in 2018 hit a 17-year low of 3.2 percent, from 3.4 in 2017, due to a political crisis after President Maithripala Sirisena abruptly sacked his prime minister Ranil Wickremesinghe and dissolved parliament. That was later ruled unconstitutional, and Wickremesinghe was reinstated.
The crisis created panic and uncertainty among investors, who dumped Sri Lankan government bonds and other assets, sending the rupee currency to record lows.
Security in Sri Lanka has been ramped up since the April 21 attacks by Islamic militants, who killed over 250 people including 42 foreign nationals in churches and hotels across the country. Tourism, which accounts for 5% of the country's gross domestic product, has suffered as travellers from around the globe cancelled hotel and flight bookings.
The Islamic State had claimed responsibility for the attacks.
(Reporting by Ranga Sirilal; Editing by Alexandra Hudson) |
What Type Of Shareholder Owns PolarityTE, Inc.'s (NASDAQ:PTE)?
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The big shareholder groups in PolarityTE, Inc. (NASDAQ:PTE) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.'
PolarityTE is a smaller company with a market capitalization of US$146m, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about PTE.
View our latest analysis for PolarityTE
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
PolarityTE already has institutions on the share registry. Indeed, they own 47% of the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 PolarityTE's historic earnings and revenue, below, but keep in mind there's always more to the story.
PolarityTE is not owned by hedge funds. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our most recent data indicates that insiders own a reasonable proportion of PolarityTE, Inc.. It has a market capitalization of just US$146m, and insiders have US$55m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checkingif those insiders have been buying recently.
With a 11% ownership, the general public have some degree of sway over PTE. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Our data indicates that Private Companies hold 5.1%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
It's always worth thinking about the different groups who own shares in a company. But to understand PolarityTE better, we need to consider many other factors.
I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow, for free.
Ultimatelythe future is most important. You can access thisfreereport on analyst forecasts for the company.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Amazon Air adds another 15 cargo aircraft
This week, Amazon used the Paris Air Show to announce it's growing the number of aircraft it operates through Amazon Air with 15 new cargo planes.
Amazon already operates five Boeing 737-800 cargo aircraft, and is now set toadd 15 moreby leasing them from GE Capital Aviation Services (GECAS), which makes sense when you consider buying one costs over $100 million. All of the new aircraft will operate within the U.S. and each can carry roughly 79 tons of cargo.
Last December, Amazon announced Air hadexpanded from 40 to 50 aircraft, so why is it adding another 15 so quickly? Dave Clark, Senior Vice President of Worldwide Operations at Amazon, explains, "These new aircraft create additional capacity for Amazon Air, building on the investment in our Prime Free One-Day program."Read more...
More aboutAmazon Prime Air,Tech, andTransportation |
American Airlines deal boosts Airbus's new long-range jet
PARIS (AP) — American Airlines is buying 50 new long-range planes from Airbus, giving a big boost to the just-launched A321XLR model and spurring Boeing to push ahead to develop a rival aircraft. Airbus and the American Airlines — the world's largest carrier — announced the deal Wednesday at the Paris Air Show, upgrading a previous order for A321neo jets to the A321XLR. No price tag was put on the contract but it is likely worth billions of dollars. Airbus launched the A321XLR program on Monday, a long-range version of its popular single-aisle A320 range, and has already signed several customers for the yet-to-be-built plane. American Airlines is looking to replace its aging fleet of Boeing 757 jets, and the order for the A321XLR heightens pressure on Boeing . Boeing is studying a new jet dubbed New Midsize Airplane, or NMA, that would be a similar size to the A321XLR. The American Airlines deal with Airbus could give Boeing more incentive to push ahead with the NMA. Boeing came into the air show under a cloud of uncertainty as its 737 Max has been grounded worldwide for three months after new flight software played a role in two deadly plane crashes. There is no clear date for when the Max might fly again. The company got a boost on Tuesday, however, when International Airlines Group, the parent company of British Airways and other carriers, signed a letter of intent for 200 Boeing 737 aircraft. The deal is subject to final agreement, but is a vote of confidence in Boeing as it struggles to win back trust from airlines, pilots, regulators and the traveling public. Airbus has landed a string of orders at the show, including sales of the new A321XLR to Australia's Qantas, Saudi Arabian Airlines, the Philippines' Cebu Pacific and Arizona-based low-cost airline investor Indigo Partners. Boeing announced deals Wednesday with Qatar Airways, China Airlines and Turkmenistan Airlines. A slowing economy tempered the mood at the air show, one of the aviation industry's biggest events, but both Airbus and Boeing brought in more orders than expected. After several years of surging growth, passenger traffic in March grew at the weakest rate in nine years, although April was slightly better. The International Air Transport Association, a global airline trade group, blames a slowing global economy and damage from tariffs and trade fights. Plane makers are also under growing pressure from regulators and passengers to reduce carbon emissions. They are looking at hybrid, electric or hydrogen technology to eventually replace existing fuel. |
Us Dollar rallies Off Support But is this a Top Or Bottom?
The US dollar ralliednearly half a percent off recent support near $96.50. This upside price move confirms the capital shift we have been talking about.
This new upside move in the US dollar has established a new lower price channel that should continue to act as price support going forward. Fibonacci price structure dictates that a higher low and a higher high price rotation may follow. We would expect some resistance just below the $98 level and if the Fed lowers the rate the dollar will likely pullback and consolidate for a few weeks to digest the news, but investors will still see the USD as the strong currency and keep buying it longer term.
It is important to understand the strength in the US dollar and the US economy should continue unless something interrupts the growth and continued out what from the US. It is very likely capital will continue to seek out the best returns and the best safety which we believe is available only in the US right now. Eventually, things may change where foreign markets become more opportunistic for investors and capital begins to shift away from the US markets. Until that happens we believe the US markets will continue to drive higher and likely push towards new all-time highs.
The strength of the US dollar is muting theupside potential in precious metalsas well as the US stock market. We believe the underlying strength and opportunities resulting from the capital shift, where capital is rushing into US markets, will eventually override the strength of the US dollar. In other words, investors will continue to pour money into US stocks and into precious metals as a protection mechanism against risk while the US dollar continues to rise. If and when the US dollar does rate below the lower price channel, the US stock market may likely breakdown as well and precious metals should skyrocket higher. Until that time, we expect a moderate price advance to continue in the US stock market major and mid-cap sectors, the US dollar, and precious metals.
Gold will likely rally from the 1340 level to just below 1380 on the next leg. Then Gold will likely cause and rotate to near 1360, pause briefly, then rally to levels above 1400. We believe this rally may happen before July 12-15, 2019.
Follow our research to stay ahead of the market moves. We’ve been warning our followers for months that 2019 and 2020 will include incredible opportunities for skilled traders. We’ve also been calling these major moves very accurately. With the US elections only 15 months away, we urge all traders and investors to pay very close attention to our research and insights.
We have recently suggested that a major price may set up in late August or early September 2019. Once we get to this date or closer to this inflection point, we’ll provide more insight as to what our modeling systems are suggesting.
UNIQUE PHYSICAL SILVER OPPORTUNITY:
Now, I have a few silver rounds here at my desk I am going to give away and ship out to anyone who joins me with a 1-year, or 2-year subscription toWealth Trading Newsletter.
Chris Vermeulenwww.TheTechnicalTraders.com
Thisarticlewas originally posted on FX Empire
• Gold Price Prediction – Prices Surge and Continue to Break Out Reaching 5-year Highs
• AUD/USD Price Forecast – Australian dollar against lift from Federal Reserve
• Natural Gas Price Prediction – Prices Drop Sharply Following EIA Inventory Report
• Forex Daily Recap – Bond Yields Drop Beyond 2% as Powell Hinted a Rate Cut in July
• Soybeans on Recovery Mode, Coffee Performs its First Positive Day in June
• No Longer Patient, The FOMC Hints at Rate Cuts |
Securities settler Euroclear building a blockchain solution for commercial paper
Belgium-based securities settlement house Euroclear is developing an end-to-end blockchain solution for the issuance and settlement of European Commercial Paper (ECP).
Euroclearannouncedthe news Wednesday, saying that the proposed solution is being built in association with nonprofit lending institution European Investment Bank (EIB), Spanish commercial bank Banco Santander and “Big Four” professional consulting firm EY.
The blockchain solution aims to reduce operational costs and time taken to issue ECP, as well as to provide transparency and traceability of ECP issuance related activities, according to the announcement. An ECP is an unsecured, short-term loanissuedby a bank or corporation in the international money market.
“Our ambition is to deploy an efficient blockchain powered solution that supports further growth of intra-day issuance for ECP markets,” said Edwin De Pauw, head of data services and innovation at Euroclear.
The four firms have already completed a “proof of value” for issuing and settling of ECP. ”This proof of value further validates the potential impact of blockchain technology on the securities issuance process, where there is a huge opportunity to introduce efficiencies, reduce time-to-market and improve the experience for issuers and investors,” said John Whelan, head of digital investment banking, Banco Santander.
Euroclear further said that it plans to move the initiative to pilot phase "soon" based on its success and that other ECP issuance companies have also shown interest in joining the project. |
Is There An Opportunity With Regis Corporation's (NYSE:RGS) 27% Undervaluation?
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Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Regis Corporation (NYSE:RGS) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. This is done using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.
We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model.
See our latest analysis for Regis
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.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value:
[{"": "Levered FCF ($, Millions)", "2019": "$10.96", "2020": "$27.98", "2021": "$50.48", "2022": "$52.18", "2023": "$57.24", "2024": "$61.42", "2025": "$65.07", "2026": "$68.30", "2027": "$71.24", "2028": "$73.96"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x2", "2020": "Analyst x2", "2021": "Analyst x1", "2022": "Analyst x1", "2023": "Analyst x1", "2024": "Est @ 7.3%", "2025": "Est @ 5.93%", "2026": "Est @ 4.97%", "2027": "Est @ 4.3%", "2028": "Est @ 3.83%"}, {"": "Present Value ($, Millions) Discounted @ 8.09%", "2019": "$10.14", "2020": "$23.95", "2021": "$39.97", "2022": "$38.22", "2023": "$38.79", "2024": "$38.51", "2025": "$37.74", "2026": "$36.65", "2027": "$35.36", "2028": "$33.97"}]
Present Value of 10-year Cash Flow (PVCF)= $333.28m
"Est" = FCF growth rate estimated by Simply Wall St
The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (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 8.1%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$74m × (1 + 2.7%) ÷ (8.1% – 2.7%) = US$1.4b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$1.4b ÷ ( 1 + 8.1%)10= $650.66m
The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $983.94m. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of $25.02. Compared to the current share price of $18.29, the company appears a touch undervalued at a 27% 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.
The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Regis 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 8.1%, which is based on a levered beta of 0.900. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Although the valuation of a company is important, it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Regis, There are three additional aspects you should further examine:
1. Financial Health: Does RGS 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 RGS'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 RGS? 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. |
Corcept Therapeutics Incorporated (NASDAQ:CORT): Poised For Long Term Success?
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Looking at Corcept Therapeutics Incorporated's (NASDAQ:CORT) earnings update in March 2019, the consensus outlook from analysts appear fairly confident, with profits predicted to increase by 37% next year, though this is noticeably lower than the historical 5-year average earnings growth of 75%. By 2020, we can expect Corcept Therapeutics’s bottom line to reach US$104m, a jump from the current trailing-twelve-month of US$75m. Below is a brief commentary on the longer term outlook the market has for Corcept Therapeutics. Investors wanting to learn more about other aspects of the company shouldresearch its fundamentals here.
See our latest analysis for Corcept Therapeutics
The view from 4 analysts over the next three years is one of negative sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To understand the overall trajectory of CORT's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
From the current net income level of US$75m and the final forecast of US$40m by 2022, the annual rate of growth for CORT’s earnings is -13%. This leads to an EPS of $0.31 in the final year of projections relative to the current EPS of $0.65. Contraction in the bottom line seems to suggest cost outpacing top line growth of 0.05% over the next few years. With this high cost growth, margins is expected to contract from 30% to 16% by the end of 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Corcept Therapeutics, I've compiled three essential factors 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 Corcept Therapeutics 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 Corcept Therapeutics is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of Corcept Therapeutics? Exploreour interactive list of stocks with large growth potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Q&A: Five things to watch for from the Fed meeting
By Jason Lange
WASHINGTON (Reuters) - The U.S. Federal Reserve is expected to leave interest rates on hold on Wednesday but could flag whether it plans to cut rates later this year as U.S. President Donald Trump has demanded.
Below are questions and answers on what to look for when the U.S. central bank concludes a two-day policy meeting at 2 p.m. ET. (1800 GMT)
HOW DOES THE FED TELL US ABOUT INTEREST RATES?
The Federal Open Market Committee, the Fed's policy-setting arm, issues a written statement at the end of each of the eight scheduled meetings it holds in Washington every year. That describes the FOMC's sense of how the economy is doing and what it believes is the appropriate level of interest rates to foster maximum employment and price stability, its dual mandates assigned by Congress.
The Fed's current policy rate is set in a range of 2.25% to 2.5% and is a benchmark for the cost of credit throughout the U.S. economy and beyond. So the Fed's decision affects everything from the interest rate American consumers pay on a 30-year mortgage to how much it costs multinational corporations to raise money in the bond market.
Typically the FOMC discloses whether it has held rates the same or changed them in the second or third paragraph of the statement.
WHY IS THERE TALK ABOUT RATE CUTS?
The U.S. labor market looks strong by most measures and inflation isn't far from the central bank's 2% target, but some policymakers have flagged rising risks for the economy. Job growth is slowing, a global economic slowdown is hitting U.S. factories and America's trade war with China might be playing a role. Also, Trump is pressuring the Fed to reduce rates, saying in October the central bank had "gone crazy" under Fed Chair Jerome Powell.
Even if the Fed keeps rates steady on Friday, some Fed policymakers might signal they expect rate cuts by the end of the year or possibly in 2020. The Fed will publish alongside the policy statement an addendum of policymaker projections on where they think rates should be.
WAIT, IS IT NORMAL TO TALK ABOUT RATE CUTS?
Not at all, and there might be unintended consequences to signaling lower rates are around the corner. Some households and businesses might decide they are going to wait for lower borrowing costs before taking out a loan to by a car or a building, even if interest rates were already falling. Decisions to hold back on purchases could weigh on the economy. As key stewards of economic stability, central bankers usually avoid giving a tip that the economy is heading south.
SO HOW WILL THE FED TELL US IT'S WORRIED?
It has code words for that. When the Fed started a rate-rising campaign in 2015, it had signaled that more hikes remained in the pipeline. Its latest rate increase occurred exactly six months ago, on December 19, 2018.
Then, early this year as concerns rose about the economic outlook, the Fed began saying in its policy statement that it would be "patient" about rate changes, meaning that it was in no hurry to alter rates because of concerns about the economic outlook. The Fed has left rates unchanged at the three meetings since then.
Friday's statement might introduce a new code, perhaps borrowing from Powell's recent comments that the Fed would take actions "as appropriate" to keep the economy growing. That would be seen as a hint that it is ready to cut rates if it saw a slowdown on the horizon.
WHAT WILL TRUMP SAY?
It might depend on how the stock market reacts to the Fed's policy statement and to the answers that Powell gives reporters in a news conference scheduled for 2:30 p.m. (1830 GMT). A jump in equity prices could signal investors are more confident the Fed is going to keep the economy growing. Strong economic growth could support Trump's bid for re-election in 2020.
Reporters asked Trump on Tuesday if he wanted to demote Powell, following a report that day that White House lawyers had explored whether they could legally strip Powell of the Fed chairmanship. Trump responded: "Let's see what he does."
(Reporting by Jason Lange; Editing by Dan Burns) |
Imagine Owning Randolph Bancorp (NASDAQ:RNDB) And Wondering If The 13% Share Price Slide Is Justified
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Passive investing in an index fund is a good way to ensure your own returns roughly match the overall market. But if you buy individual stocks, you can do both better or worse than that. Investors inRandolph Bancorp, Inc.(NASDAQ:RNDB) have tasted that bitter downside in the last year, as the share price dropped 13%. That falls noticeably short of the market return of around 4.6%. Randolph Bancorp hasn't been listed for long, so although we're wary of recent listings that perform poorly, it may still prove itself with time.
View our latest analysis for Randolph Bancorp
Because Randolph Bancorp is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last year Randolph Bancorp saw its revenue grow by 15%. That's definitely a respectable growth rate. Unfortunately that wasn't good enough to stop the share price dropping 13%. You might even wonder if the share price was previously over-hyped. However, that's in the past now, and it's the future that matters most.
The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart.
We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. If you are thinking of buying or selling Randolph Bancorp stock, you should check out thisfreereport showing analyst profit forecasts.
While Randolph Bancorp shareholders are down 13% for the year, the market itself is up 4.6%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. With the stock down 1.9% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. It is all well and good that insiders have been buying shares, but we suggest youcheck here to see what price insiders were buying at.
Randolph Bancorp is not the only stock that insiders are buying. For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on 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. |
The Rebel's Handbook: All About High Times' New CEO And His Plans To Turn The Company Around
Over almost half a century, High Times has undergone radical transitions. Conceived as a single-issue lampoon of Playboy in 1974, High Times has since become a globally recognized cannabis brand.
In the last couple of years, however, the brand has seen periods of turbulence following bigmanagement changes, corporate restructuring efforts andaggressive M&A activity.
It seems, nonetheless, that the cannabis behemoth is finally coming out of the storm, as the team puts the finishing touches on what they expect will soon be a publicly-traded media and entertainment holdings company. To put it in the words of the company’s VP of Content, Jon Cappetta: “This rebel’s handbook is going to the frikin’ NASDAQ.”
The New Bossman
Nearing the close of its Reg A+, pre-IPO capital raise, High Times Holding Corp. announced media veteran Kraig Fox would take the reigns as CEO and President of High Times, replacing Adam Levin.
Fox previously held executive positions atLive Nation Entertainment, Inc.(NYSE:LYV),Eldridge Industriesand Core Media. Benzinga recently sat down with him to talk about his vision, expectations and High Times’ plans, including the anticipated going-public move.
Fox views High Times as “the only globally recognized cannabis brand.” If you’ve traveled the world enough, and talked cannabis with enough people, you will know this is likely true. There are many companies big in the U.S. and Canada, but most people outside of North America have never heard of them.
Owner of a number of brands, such as Dope Magazine, Green Rush Daily, CULTURE and Cannabis Cup Festivals, High Times can take advantage of its name recognition to connect consumers to brands and products, he explains.
“At the end of the day, that’s what High Times does and it does it really well: it uses the power of its brand and the marketing and licensing and all the money we can make from doing that going forward, to connect consumers.”
'The Times They Are a-Changin'
For 45 years, High Times has been focused on media and events. Fox considers the reason why High Times wasn’t used on more products, such as dispensaries, consumption lounges and hardware, is the illegal status of weed. However, things are changing and the cannabis industry around the world is coming out of the shadows.
“High Times has a place in that – people will want brand differentiation like in any other industry and High Times will be a part of that transformation that will offer people the ability to identify with our IP as they grow their businesses,” Fox said.
In the meantime, High Times is focusing on building the root of the brand itself instead of jumping into putting its name on various products. Once cannabis is legalized across the world, the company will be available “for some of the bigger opportunities.”
High Times’ Value Proposition
As a diversified company with a myriad of media holdings and a presence in the event space, High Times has a number of revenue streams.
Fox sees live events as the main source of revenue for High Times, but is also placing big bets on brand licensing. It’s all about margins.
“Everything we do works together, but if I had a pie chart in front of me, those would probably be the two biggest single buckets where revenue would come from,” he added.
When it comes to debt, High Times’ most debentures are convertible and most holders would rather convert it into equity, because “they believe in the story.”
From Outlaw To Vogue?
For over a year, High Times has been raising money from retail investors through a RegA+ offering. To date, more than 22,000 individual investors have chipped in over $15 million to make High Times’ Nasdaq debut a reality.
Now, it seems these investors might finally get their pay-off. Fox suggested the company’s stock will be on an exchange “soon enough,” with the Nasdaq still being the preferred outcome. Their plan is to complete the listing this quarter, but there might be some roadblocks along the way.
Once High Times is trading on an exchange, people looking to get exposure to the cannabis space, will have the opportunity to buy shares of a long-standing cannabis company with a large IP portfolio and a variety of revenue-generating businesses.
“I don’t think there’s a lot of businesses that have the bedrock that we have, that history, and foundational business. That’s the advantage for investors looking for something to invest in within the cannabis space – it’s very rare to be able to reach for that proverbial brass ring, but also have a seat up on the carrousel and that’s what I believe High Times provides,” Fox said.
Beyond its current businesses, High Times is looking into international expansion opportunities. Mexico, South America, and Europe are top priorities, Fox said.
Javier Hasse occasionally contributes to High Times and Dope Magazine. Benzinga staff writers Alex Oleinic and Eric TerBush contributed to this report.
Photos courtesy of High Times.
See more from Benzinga
• Meet The Newest Accelerator For Minority-Owned Cannabis Businesses
• The Week In Cannabis: Colorado Hits B In Sales, Harborside In Canada, Kroger Embraces CBD, And More
• How One Cannabis Company Drastically Reduced Plastic Waste By Childproofing Its Vapes
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
GBP/JPY Price Forecast – British pound showing signs of life
The British pound initially fell during the trading session on Wednesday againstthe Japanese yen, but as you can see we continue to see bullish pressure and it now looks as if we are going to continue to try to bounce from this region. If that’s going to be the case, this market could go as high as ¥138 above where we see a lot of resistance. However, we had broken down below the 61.8% Fibonacci retracement level, and that of course is normally assigned that we are going to go much lower.
It’s not until we break above the ¥138 level on a daily close that I would be convinced of a larger move. However, that’s not to say that you can’t take advantage of the short-term bounce, not only from the sell side, but also from the long side as well. I think that if you are nimble enough you could probably do both, but only if you are short-term incline. This marketplace continues to show a lot of noise, but I think if you are going to take this buy signal, you should probably do so with half of a position. However, I would become much more aggressive to the downside on signs of exhaustion as we are most obviously in a downtrend. That being said though, we are at extreme lows so the “easy money” has been made already. However, there are still trades to be made at this point.
Please let us know what you think in the comments below
Thisarticlewas originally posted on FX Empire
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Is Red Rock Resorts, Inc.'s (NASDAQ:RRR) CEO Overpaid Relative To Its Peers?
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Frank Fertitta has been the CEO of Red Rock Resorts, Inc. (NASDAQ:RRR) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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.
See our latest analysis for Red Rock Resorts
At the time of writing our data says that Red Rock Resorts, Inc. has a market cap of US$2.7b, and is paying total annual CEO compensation of US$2.0m. (This is based on the year to December 2018). That's just a smallish increase of 0.9% on last year. While we always look at total compensation first, we note that the salary component is less, at US$1.0m. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.2m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Red Rock Resorts, below.
Red Rock Resorts, Inc. has increased its earnings per share (EPS) by an average of 30% a year, over the last three years (using a line of best fit). It achieved revenue growth of 4.2% over the last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to checkthis free visual report onanalyst forecastsfor future earnings.
Red Rock Resorts, Inc. has generated a total shareholder return of 6.0% over three years, so most shareholders wouldn't be too disappointed. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
It appears that Red Rock Resorts, Inc. remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The total shareholder return might not be amazing, but that doesn't mean that Frank Fertitta is paid too much.
It's great to see a company that pays its CEO reasonably, even while growing. It would be an additional positive if insiders are buying shares. Whatever your view on compensation, you might want tocheck if insiders are buying or selling Red Rock Resorts shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out 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. |
USD/JPY Price Forecast – US dollar choppy against yen
The US dollar has gone back and forth againstthe Japanese yenfor several days now, leading up to the Federal Reserve Statement. That being the case, the market looks as if it is trying to figure out where to go next, and if the statement is dovish enough, we could see this pair rally as the risk appetite should push the market higher. However, if the Federal Reserve is a bit more hawkish, or at least not dovish enough, that could send this market back down towards the ¥180 level.
Overall, the best way to trade this market is to simply pay attention to the range that we are in and recognize that a breakout of that range tells us which direction we should go. That being the case, it’s very likely that the daily close will be crucial. If we can break above the ¥108.75 level on the daily close, then this pair should continue to go much higher, at least towards the ¥109.60 level. Alternately, if we break down below the ¥107.75 level, it would wipe out the 61.8% Fibonacci retracement level and open the door to the ¥105 level. Overall, this is a market that is simply waiting to see what the Federal Reserve is going to do and won’t react until we get that announcement. Be aware that the initial few moments after the announcement will be driven by headline reading algorithms, meaning that it will be extraordinarily volatile to say the least. This is why waiting for the daily close can be crucial.
Please let us know what you think in the comments below
Thisarticlewas originally posted on FX Empire
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Norwegian Islanders Want to End Conventional Time Keeping When Sun Doesn't Set
Residents of a Norwegian island where the sun doesn’t set for 69 days of the year want to go “time-free” and have more flexible school and working hours to make the most of their long summer days.
People on the island of Sommaroey are pushing to get rid of traditional business hours and “conventional time-keeping” during the midnight sun period that lasts from May 18 to July 26, resident Kjell Ove Hveding said Wednesday.
Hveding met with a Norwegian lawmaker this month to present a petition signed by dozens of islanders in support of declaring a “time-free zone” and to discuss any practical and legal obstacles to basically ignoring what it says on clocks.
“It’s a bit crazy, but at the same it is pretty serious,” he said.
Sommaroey, which lies north of the Arctic Circle, stays dark from November to January. The idea behind the time-free zone is that going off the clock would make it easier for residents, especially students, employers and workers, to make the most of the precious months when the opposite is true.
Having no clocks “is a great solution but we likely won’t become an entirely time-free zone as it will be too complex,” Hveding said. “But we have put the time element on the agenda, and we might get more flexibility … to adjust to the daylight.”
“The idea is also to chill out. I have seen people suffering from stress because they were pressed by time,” he said.
Sitting west of Tromsoe, the island has a population of 350. Fishery and tourism are the main industries.
Finland last year lobbied for the abolition of European Union daylight savings time after a citizens’ initiative collected more than 70,000 signatures. |
Investors Who Bought Conifer Holdings (NASDAQ:CNFR) Shares Three Years Ago Are Now Down 43%
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In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market index fund. But in any portfolio, there are likely to be some stocks that fall short of that benchmark. We regret to report that long termConifer Holdings, Inc.(NASDAQ:CNFR) shareholders have had that experience, with the share price dropping 43% in three years, versus a market return of about 48%. And more recent buyers are having a tough time too, with a drop of 37% in the last year. The falls have accelerated recently, with the share price down 12% in the last three months.
Check out our latest analysis for Conifer Holdings
Because Conifer Holdings is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last three years, Conifer Holdings saw its revenue grow by 6.1% per year, compound. That's not a very high growth rate considering it doesn't make profits. Indeed, the stock dropped 17% over the last three years. Shareholders will probably be hoping growth picks up soon. But ultimately the key will be whether the company can become profitability.
The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart.
We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. If you are thinking of buying or selling Conifer Holdings stock, you should check out thisfreereport showing analyst profit forecasts.
Over the last year, Conifer Holdings shareholders took a loss of 37%. In contrast the market gained about 4.6%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Shareholders have lost 17% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. Although Warren Buffett famously said he likes to 'buy when there is blood on the streets', he also focusses on high quality stocks with solid prospects. If you want to research this stock further, the data on insider buying is an obvious place to start. You canclick here to see who has been buying shares - and the price they paid.
If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on 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. |
Video surfaces of high school football players burning pride flag
High school football players were caught posting a video of them burning a pride flag and saying, "All gays die." (Credit: Twitter) Two football players were indefinitely suspended from their school team for distributing and shooting a video of a burning LGBTQ pride flag on Snapchat. The students, from Kearns High School in Kearns, Utah, made the video — in which someone is heard laughing and saying, “All gays die” — last week, according to Fox 13 . While the students were immediately removed from the football team, Granite School District officials are still determining what measures need to be taken beyond athletics. A Unified Police Department spokesperson tells Yahoo Lifestyle that while a report about the incident was filed with police, they will not be investigating the issue as a hate crime, as Utah law considers hate crimes as enhancements to criminal offenses. According to the spokesperson, “Burning a flag is not a crime — it’s a freedom of speech issue, and the school is handling it.” In an interview with Fox 13, Ben Horsley, communications director for Granite School District, confirmed administrators would handle the issue. "We want to make sure every student who walks through our doors feels safe and secure in the environment that they're in," Horsley told Fox 13. "Whether it was done intentionally with a threat in mind or for humor's sake, it's inappropriate. And we're going to address it in a very serious fashion." Head football coach Matt Rickards tells Yahoo Lifestyle that the school’s main priority in the program is to grow “men of character, integrity, be responsible, have empathy towards others and serve their community for good.” He added that the incident is out of the ordinary, and that the school is “very diverse,” adding that they have never had issues with players bullying anyone. “In fact, quite the opposite happens where our players stand up for those being bullied,” he says. “The athlete that made the video is an incoming freshman that I have had little contact with.” According to the Salt Lake Channel, the video is considered cyberbullying and a safe school violation. Story continues The Granite School District website outlines bullying and hazing policies, describing that students and school employees cannot engage in cyberbullying “on school property, at a school related or sponsored event, on a school bus, at a school bus stop or while the student or school employee is traveling to or from a location or event described above.” It is uncertain whether the video was shot or distributed in any of these situations. On Monday, the Kearns High School official Facebook page posted about the video, flagging it as “not acceptable from any student at KHS.” While the post confirms that an investigation has started, and the students involved will face consequences, community members and alumni spoke out about how concerning the video is, one even claiming that it is “definitely” a hate crime. “As the mother of a transgender student who will be attending your school this year, I am upset, embarrassed, and worried for my child,” commented one person. “The young men who made this decision have just ruined their football careers. Think about the consequences before you do something you might think is funny. While maybe you think it’s a joke, it may make someone else fear for their life! Burning the flag is one thing, saying ‘all gays die’ most definitely makes this a hate crime!” Another added, “Everyone should feel safe and free from this kind of discrimination and especially the most vulnerable! It doesn’t matter if it’s an American Flag, Pride Flag or Religious Flag this action speaks for itself and can’t be tolerated.” Some suggested that being removed from the football team wasn’t enough, and that more serious measures need to be taken. “Bare minimum: Kicked off of teams,” a community member commented. “Please hold these students accountable,” added another. “Otherwise you end up with bigots in high levels of power.” A former Kearns High School student Tweeted about the incident, affirming that if there isn’t an official investigation, “the gay kids of Kearns will riot,” to which Granite School District responded , reiterating that there will be appropriate steps and consequences. @GraniteSchools If there’s not an official investigation with police involvement about this video of kids from the Kearns Football team @KearnsFootball , the gay kids of kearns will riot ✌🏼 this will NOT be swept under the rug. This is NOT OKAY. (A thread) pic.twitter.com/e0BVlFqXjz — Tiarra (@Buddhist_chick) June 17, 2019 “I’m glad I put in the work to graduate a year early. But if I hadn’t, I’d be terrified to go to school,” the former student Tweeted. “There are a lot of queer people at Kearns high that’ll go there in fear, knowing that people on the top of the social food chain are getting away with anti-gay hate crimes.” Ben Horsely and representatives from Snapchat did not immediately respond to Yahoo Lifestyle’s request for comment. Read more from Yahoo Lifestyle: Man demands to hang up Confederate flag in protest over mayor's LGBTQ Pride tribute Dominique Jackson of 'Pose' on LGBTQ Pride and culture: 'Trans women have always been the nurturers' Special-needs teacher dies rock climbing in Yosemite: It 'went horribly wrong' Follow us on Instagram , Facebook , Twitter and Pinterest for nonstop inspiration delivered fresh to your feed, every day. |
How Should Investors Feel About Resources Connection, Inc.'s (NASDAQ:RECN) CEO Pay?
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Kate Duchene became the CEO of Resources Connection, Inc. (NASDAQ:RECN) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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.
Check out our latest analysis for Resources Connection
Our data indicates that Resources Connection, Inc. is worth US$516m, and total annual CEO compensation is US$1.6m. (This is based on the year to May 2018). While we always look at total compensation first, we note that the salary component is less, at US$583k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.8m.
That means Kate Duchene receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Resources Connection, below.
Resources Connection, Inc. has reduced its earnings per share by an average of 2.1% a year, over the last three years (measured with a line of best fit). Its revenue is up 18% over last year.
The lack of earnings per share growth in the last three years is unimpressive. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to checkthis free visual depiction ofwhat analysts expectfor the future.
Resources Connection, Inc. has generated a total shareholder return of 19% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
Remuneration for Kate Duchene is close enough to the median pay for a CEO of a similar sized company .
We feel that earnings per share have been a bit disappointing, but and we don't think the total returns are amazing. We wouldn't say the CEO pay is too high, but one might argue that the company should improve returns to shareholders before increasing it. Shareholders may want tocheck for free if Resources Connection insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out 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. |
Rosamund Pike to Star in Amazon's 'Wheel of Time' Series Adaptation
Gone Girl ‘s Rosamund Pike is taking the wheel of Amazon’s forthcoming series adaptation of The Wheel of Time , TVLine has learned. The actress will play the lead role of Moiraine in the project, which is based on Robert Jordan’s fantasy novels. The Wheel of Time , which was greenlit at Amazon last October , is set in a “sprawling, epic world where magic exists and only certain women are allowed to access it,” per the official logline. The story follows Pike’s Moiraine, “a member of the incredibly powerful all-female organization called the Aes Sedai, as she arrives in the small town of Two Rivers. There, she embarks on a dangerous, world-spanning journey with five young men and women, one of whom is prophesied to be the Dragon Reborn, who will either save or destroy humanity.” Related stories Amazon's Lord of the Rings Series Adds Game of Thrones Writer Bryan Cogman This Is Us: Jennifer Morrison Joining Season 4 Cast in Major Role Sneaky Pete Cancelled at Amazon Please welcome Rosamund Pike to the Wheel of Time family. Say hello to Moiraine. #WoTWednesday pic.twitter.com/577Hffwy6Y — Wheel of Time Writers’ Room (@WoTWritersRoom) June 19, 2019 Onetime Survivor contestant-turned-TV writer Rafe Judkins will serve as showrunner and executive producer. “For so many people, including me, this book series has served as a world to escape to, to lose yourself in, to devour and inhabit completely,” Judkins said in a statement last fall. “And I couldn’t be more honored to be the one finally bringing that world to life on screen, for old fans to lose themselves in all over again and new fans to discover for the very first time.” Pike most recently starred opposite Chris O’Dowd in SundanceTV’s short-form series State of the Union. Sign up for TVLine's Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram . |
Trump Sold Beverly Hills Estate to Foreign Business Partner for $13.5 Million
Donald Trump hasn’t completely given up the real estate business while he’s in the oval office.
The Trump Organization quietly sold a 5 bedroom, 6 bath Beverly Hills estate to an Indonesian business partner for $13.5 million. That’s nearly double what the President paid for the property in 2007, when he was in charge of the company. (Sons Don Jr. and Eric are overseeing the Trump Organization while their father is president.)
Hary Tanoesoedibjo, an Indonesian billionaire alsoknown as Hary Tanoe, purchased the property via an offshore entity called Hillcrest Asia Limited. He’s a Trump associate, who developed two Trump-branded resorts in Indonesia and attended the 2017 inauguration. Like Trump, he is said to havepolitical aspirationsin his country.
The two story, 5,395 square foot home, located at 809 N. Canon Dr. was sold off-market. Built in 1927, it sits on a 0.67 acre estate, with a swimming pool out back. It has been something of a headache for the Trump Organization since his election, as it has been repeatedly fined by the city of Beverly Hills for violating a city code on hedge height. (Fines, to date, havetopped $1,100.)
Tanoesoedibjo ran for vice president of the country in 2014 and has been organizing his own political party for a possible run in 2019. His possible political future has sparked concerns about potentialconflicts of interestif his business relationship with Trump becomes a diplomatic one as well.
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If You Had Bought CLPS Incorporation (NASDAQ:CLPS) Stock A Year Ago, You'd Be Sitting On A 62% Loss, Today
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Taking the occasional loss comes part and parcel with investing on the stock market. And unfortunately forCLPS Incorporation(NASDAQ:CLPS) shareholders, the stock is a lot lower today than it was a year ago. In that relatively short period, the share price has plunged 62%. CLPS Incorporation may have better days ahead, of course; we've only looked at a one year period. Furthermore, it's down 40% in about a quarter. That's not much fun for holders.
Check out our latest analysis for CLPS Incorporation
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
During the last year CLPS Incorporation saw its earnings per share drop below zero. Some investors no doubt dumped the stock as a result. We hope for shareholders' sake that the company becomes profitable again soon.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Thisfreeinteractive report on CLPS Incorporation'searnings, revenue and cash flowis a great place to start, if you want to investigate the stock further.
While CLPS Incorporation shareholders are down 62% for the year, the market itself is up 4.6%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. With the stock down 40% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. You might want to assessthis data-rich visualizationof its earnings, revenue and cash flow.
If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on 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. |
Natural Gas Price Forecast – Natural gas markets continue to lower value
Natural gas marketswent back and forth in relatively unchanged action during the trading session on Wednesday, as we are getting close to the inventory figure and perhaps even more importantly the Federal Reserve statement. With that being the case, it’s very likely that we will continue to see a lot of selling pressure, especially on rallies. In fact, that’s how I have been trading this market for some time, with the eye on a move down to the $2.25 level, perhaps even the $2.00 level after that.
Looking at this market, I think that any rally is an opportunity. The $2.40 level above is resistance, and if we can break above there it’s likely that the $2.50 level above is even more resistive and an opportunity to start selling. I have no interest in buying natural gas, as we are in the wrong time of year to do so. There is a lot of noise in the market, but I do believe that it’s only a matter of time before the sellers look to take advantage of the market.
Once we get closer to the fall, then it’s possible that natural gas may rally, but in the meantime it seems very unlikely. I think that simply being patient and waiting for an overbought condition is how you should play the natural gas market which of course is extraordinarily oversupplied. All things being equal, it’s very likely that we continue more of the same pattern, but the question now is whether or not we can break down below the $2.30 level? If we do, we will probably go straight down to the $2.25 level after that.
Please let us know what you think in the comments below
Thisarticlewas originally posted on FX Empire
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Silver Price Forecast – Silver markets continue to press resistance
Silver markets pulled backsignificantly during the trading session on Wednesday, as we await what happens with the Federal Reserve. At this point, the $15.00 level will continue to offer resistance but if we can break above the highs of the last couple of weeks, it’s very likely that we would go to the 200 day EMA at the $15.30 level. If we can break above the 200 day EMA, it’s likely that we could go to the $15.50 level.
Looking at this market, it’s very likely that the market has plenty of support underneath though, because even if the Federal Reserve doesn’t cut interest rates during the trading session, quite frankly there is more than enough support underneath at the 50 day EMA, plus on top of that we have the Federal Reserve looking likely to be dovish going forward. Remember, markets tend to focus on the future and not necessarily the present, so having said that it’s likely that the market will continue to try to push higher and look at the future as one that has plenty of soft central banks out there. It’s not just the Federal Reserve, but it is also the ECB, and many other central banks around the world.
Quite frankly, unless the Federal Reserve is extraordinarily hawkish, it’s hard to imagine a scenario in which precious metals off drastically. I look at dips as buying opportunities in the near term and would welcome some type of pullback in order to pick up some value in the metals markets. The $14.50 level is more than likely going to be a massive support level.
Please let us know what you think in the comments below
Thisarticlewas originally posted on FX Empire
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Rob Lowe's wife, Sheryl, joins him on the red carpet ahead of their 28th wedding anniversary
Rob Lowe and his wife are just weeks away from marking their 28th wedding anniversary, and what better place to celebrate than Monte Carlo?
The two met on a blind date in the early 1980s, and decades later, Sheryl Berkoff was by her husband's side on Tuesday at the Monte Carlo TV Festival. She was camera-ready in a glittering fringed dress while Lowe opted for a dark blue tux.
Although they first met in 1983, the romance didn't begin for another seven years when Berkoff was hired as Lowe's makeup artist on set of 1990's "Bad Influence." They wed on July 22, 1991.
Two years after they wed, the couple welcomed their first son, Matthew Edward. Now 26, he's a Duke University graduate while their younger son, John Owen,recently graduated from Stanford.
PHOTOS: Rob Lowe and wife Sheryl in the 1990s
It was two years before their marriage that Lowe turned his life around, quitting drugs and alcohol after a tumultuous wave of negative headlines and controversy. In May 2019, he celebrated 29 years of sobriety.
"Thank you to all those who have inspired me on this wonderful, challenging and life-changing journey," Lowe wrote on social media of his sobriety milestone. "If you, or someone you know, are struggling with alcohol or addiction, there CAN be a future of hope, health and happiness. And it comes one day at a time." |
L'Oreal's summer collection will turn you into a bronzed goddess
If you're looking to add a little bit (or a lot a bit) of a glow to your makeup routine this summer, look no further thanL'Oreal Paris' Summer Belle Collection!
This new collection, which is in collaboration withWalmart, promises to give you a "sun-kissed glow anytime with a universal range of bronzers, liquid luminizers, shimmering blushes, & dewy lip glosses." Each product retails for under $15.
While we are utterly obsessed with the collection's blushes and bronzers (there are two blush shades and three bronzer shades), the product we are most excited about is theBeach Bae Face & Body Liquid Luminizer.
This lightweight liquid luminizer comes in both light to medium and medium to deep shades, giving everyone the perfect added glow. Use it alone or add a small pump of the product to your favorite moisturizer or body lotion and you'll look like you just got back from a tropical vacation.
You can shop the entire collection(that is currently available for pre-order) above and find more of our beauty favorites below! |
China’s Biggest Payment Firms Have No Plans to Follow Facebook into Crypto
China’s internet giants appear unlikely to follow Facebook into the cryptocurrency space anytime soon – though you can be sure they’re paying attention.
PonyMa, the CEOofTencent, the parent company of social messaging and payments app WeChat, said Wednesdaythat he thinks regulation will be the deciding factor for the success of Facebook’s Libra initiative.
“The technology [of Facebook] is already mature enough so it’s not difficult [to implement]. Now it just depends on whether it can obtain regulatory approval,” Ma wrote on a private discussion on WeChat.
Related:Will Facebook’s Libra Be an On-Ramp or Dead End for Crypto?
The comment was screen captured and subsequently circulated on the platform. Tencent confirmed its authenticity to CoinDesk.
Tencent did not have further comment on the issue but referred CoinDesk to a remarkMa made in March 2018 about the firm’s stance on cryptocurrency. Masaidat the time:
“The greatness of blockchain technology depends on how it’s used. Issuing initial coin offerings or digital currencies still bear too much risks … Tencent will not issue a coin and does not consider to be involved in that.”
Similarly, Eric Jing, CEO of Ant Financial, the payments affiliate of e-commerce retailer Alibaba, hadalreadydeclaredlast year that the firm would stay away from digital currencies with no real value while focusing on the underlying blockchain technology.
Related:Senate Banking Committee Schedules July Hearing on Facebook’s Libra Crypto
“Our stance on this hasn’t changed,” a spokesperson for the company told CoinDesk Tuesday, hours before Facebook officially unveiled its vision for Libra.
While Ant Financial, which operates AliPay, is expanding to overseas markets, instead of issuing a cryptocurrency, it’s adopting a conventional strategy of partnering with regional payments providers one-by-one to offer services to local users.
The reasons as to why payment giants in China may not consider cryptocurrency useful could go beyond just regulatory issues as the country’s central bank banned cryptocurrency offerings in 2017.
Yan Meng, vice president of the Chinese Software Developer Network (CSDN), who focuses on token economic research for the country’s largest developer community, said Facebook’s fragmented user base across the world leaves it with no better choice but toborrowideas from blockchain and cryptocurrency in order to avoid a traditional way for launching a global payments network.
“Facebook just can’t do a global payments network via traditional methods, which require applying for a license and preparing foreign exchange reserves with local banking, one market after another,” Meng said.
Such methods may not be even replicable for payments firms in China, he argued, given their users predominantly come from one single economy using one type of fiat currency.
Based ondatafrom the People’s Bank of China, mobile payments volume in the country reached $41.51 trillion in 2018 alone, with Alipay and WeChat Pay accounting for more than 90% of the market. Currently, both firms have expanded payments service in several overseas markets including Japan, South Korea and Singapore.
“The advantage of WeChat and AliPay is they have already gained a significant number of users from just one giant economy that accounts for 20 percent of the world’s population,” Meng said. “China has already had a well-established payments settlement network so there may not be real demand for having a crypto stablecoin now.”
To be sure, Facebook’s services are still inaccessible under normal internet conditions for users based in China. It’s not clear whether or how Libra could be offered to users in the country.
Further, Mengwrotein an article published June 16 that Facebook’s long-term ambition could be even looking at becoming a stateless central bank that uses Libra as a base currency.
“With sufficient incentives, nodes of Facebook’s Libra network would represent Facebook to push for utility in various countries for its 2.7 billion users in business, investment, trade and financial services,” he wrote, going as far as arguing “these would help complete a full digital economy empire.”
But the move may not come easy in the views of regulators in different jurisdictions.
Indeed, immediately after Facebook released its Libra cryptocurrency plan, financial regulators in Europe have alreadyvoicedconcerns over the potential of Facebook running a “shadow bank.”
Meanwhile, a lawmaker who heads the House of Representatives Financial Services Committee in Facebook’s home country has alsoaskedthe firm to halt its development on Libra at least for now before hearings can be held.
Tencentimage via Shutterstock
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The biggest reason why NFL players don’t connect with fans
TheNational Football Leaguecan’t connect with fans. NFL Executive Vice President Tim Ellis believes it’s because they wear helmets.
“They don’t connect with logos – in fact, they don’t even connect with the league … They connect with their clubs, their teams and their players and they connect with people,” he told FOX Business’Maria Bartiromoon Wednesday. “So we have a bit of a disadvantage at the NFL compared to other leagues because they have their helmets on, right? So our audiences actually don’t see most of our players.”
The NFL’sTV ratings bounced backin 2018 after two consecutive seasons of decline.
Ellis, who previously served as the chief marketing executive for Activision Blizzard, joined the NFL during a tumultuous time, after former San Francisco 49ers quarterback Colin Kaepernick sparked debate during the 2016 season when he refused to stand for the national anthem to protest social injustice. After digging through data, Ellis found that the entire NFL ecosystem consists of about 750 million people, and he embarked upon a strategy to shed its negative image and “refocus and rejuvenate” the league by creating programs and content through the players.
“We really embarked upon a strategy to get helmets off and humanize and personalize these athletes because they have incredible stories to tell, they have wonderful lives, they’re super-cool to younger people and we knew that we had a chance to really connect in a very, you know, authentic and passionate way.”
Ellis said the NFL is using four pillars to draw a bigger and younger fan base.
“The more I dug into the data when I first started, the more I understood that there are basically three things that our fans really care about – it’s music, fashion and video games,” he said, adding “and to some degree the fourth was fitness … it just so happens our players care about the same things.”
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The 2019 NFL season kicks off on Sept. 5.
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A Look At The Intrinsic Value Of Clearfield, Inc. (NASDAQ:CLFD)
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Does the June share price for Clearfield, Inc. (NASDAQ:CLFD) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to their present value. I will be using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model.
Check out our latest analysis for Clearfield
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Seeing as no analyst estimates of free cash flow are available to us, we have extrapolate the previous free cash flow (FCF) from the company's last reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate:
[{"": "Levered FCF ($, Millions)", "2019": "$9.95", "2020": "$10.78", "2021": "$11.49", "2022": "$12.12", "2023": "$12.68", "2024": "$13.20", "2025": "$13.68", "2026": "$14.14", "2027": "$14.60", "2028": "$15.04"}, {"": "Growth Rate Estimate Source", "2019": "Est @ 10.69%", "2020": "Est @ 8.3%", "2021": "Est @ 6.63%", "2022": "Est @ 5.46%", "2023": "Est @ 4.64%", "2024": "Est @ 4.07%", "2025": "Est @ 3.67%", "2026": "Est @ 3.39%", "2027": "Est @ 3.19%", "2028": "Est @ 3.05%"}, {"": "Present Value ($, Millions) Discounted @ 9.07%", "2019": "$9.12", "2020": "$9.06", "2021": "$8.86", "2022": "$8.56", "2023": "$8.21", "2024": "$7.84", "2025": "$7.45", "2026": "$7.06", "2027": "$6.68", "2028": "$6.31"}]
Present Value of 10-year Cash Flow (PVCF)= $79.15m
"Est" = FCF growth rate estimated by Simply Wall St
We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 2.7%. We discount the terminal cash flows to today's value at a cost of equity of 9.1%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$15m × (1 + 2.7%) ÷ (9.1% – 2.7%) = US$244m
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$244m ÷ ( 1 + 9.1%)10= $102.19m
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $181.34m. To get the intrinsic value per share, we divide this by the total number of shares outstanding.This results in an intrinsic value estimate of $13.27. Relative to the current share price of $13.2, the company appears about fair value at a 0.5% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.
We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Clearfield as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 9.1%, which is based on a levered beta of 1.064. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Clearfield, There are three relevant aspects you should further research:
1. Financial Health: Does CLFD 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 CLFD'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 CLFD? 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. |
Marijuana Stocks: Akerna (KERN) Stock Soars on Nasdaq Debut
Good news for marijuana stocks comes today in the form ofAkerna(NASDAQ:KERN) debuting on the public market.
Source: Shutterstock
Akerna’s debut on the Nasdaq doesn’t come in the typical way. Instead of going through an IPO, the company used a different method. This had two companies merging together to create the new company.
The two companies that are part of this merger were MJ Feeway and MTech Acquisition. With the merger complete, the new company now goes under the name Akerna and is using the KERN stock ticker for its shares.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
So how exactly is Akerna connected to marijuana stocks? The company doesn’t actually deal in the drug itself. What it does do iscreate softwarethat legal retailers of the drug can use. This includes ways to track marijuana seeds from planting to final sale.
While many marijuana stocks are having trouble making it onto the public markets, KERN was able to do so through its unique acquisition. It also helps that it isn’t breaking any laws since it doesn’t deal with marijuana directly, reportsMarketWatch.
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The split up of KERN stock is between three parties. The first shareholders of MJ Feeway owning62.7%of the new company. After this its investors of Mtech Acquisition with a 27.7% stake in the company. The final bit of KERN shares belong to a private placement belonging to Mtech.
KERN stock was up 71% as of Wednesday morning.
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As of this writing, William White did not hold a position in any of the aforementioned securities.
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The postMarijuana Stocks: Akerna (KERN) Stock Soars on Nasdaq Debutappeared first onInvestorPlace. |
Why Gran Tierra Stock Is Down 16% on Wednesday
What happened Shares of Gran Tierra Energy (NYSEMKT: GTE) are down 16.2% as of 12:41 PM EDT on June 19, following a press release issued by the company before trading hours today. In the release the company gave investors an update on its operations results so far in the second quarter. In short, the update gave investors plenty of reason to be cautious, and based on today's sell-off, it was clearly enough of a reason for a lot of investors to move on. So what Gran Tierra started the update with a few positive items, including news of expansions at its Acordionero projects, its largest oil-producing assets. It has completed the installation of mechanical upgrades and expansions there, which it expects will help boost production in the second half of 2019. The company also said it recently completed drilling two wells in Acordionero in 9.5 and 7.4 days respectively, record times in the field. Oil pumpjack at sunset. Image source: Getty Images. It also announced a handful of new contracts in Ecuador and Colombia, which it expects will lead to increased production by 2020. The increase will depend on the success of its exploration wells, which it will start drilling near the end of 2019. Now the bad news: Buried near the bottom of the press release, the company disclosed that it had to shut in oil production from multiple oil wells in the Acordionero due to equipment failures, and that local farmers had set up blockades in Colombia, causing it to halt production in two of its oil plays in the region. The shut-in production caused the company's oil output to fall: It was 37,700 barrels of oil equivalent per day ( BOEPD ) from April 1 to May 23, and 29,000 BOEPD the five days before the press release was issued. The combination of political unrest and downtime is clearly causing investors to flee Gran Tierra stock today, but there's a chance the sell-off is a bit overdone. On one hand, management is steadfast that it expects discussions between locals and the Colombian government to result in an end to the blockade, and that production will resume relatively quickly. Moreover, despite the downtime in Acordionero, the company has multiple initiatives underway there that are set to grow production in the play while also driving down operating costs and improving reliability. Story continues One of the biggest steps will be bringing a 20-megawatt gas-to-power electricity generator online, which management says will both vastly improve power reliability and lower operating costs in the play. Now what Gran Tierra has been a bit of a rarity in the independent oil and gas producer space in that it has a proven track record of generating solid positive operating cash flows. GTE CFO Per Share (TTM) Chart GTE CFO Per Share (TTM) data by YCharts But since it operates in South America, the market is clearly fearful of political risk for the company, along with falling oil prices. The company's stock has tracked Brent crude spot prices relatively closely over the past year. GTE Chart GTE data by YCharts As a general rule, I'm not a fan of independent oil producers. It's a hard, capital-intensive business whose prospects are tied to an unpredictable commodity, and even the best producers often see their stock prices attached to crude prices, even when the results deserve better treatment. However, I think Gran Tierra looks like a unique opportunity right now; its results may be pretty ugly over the next quarter or two as it works through the production problems, but its management has a proven track record of cash flow generation, and I think investors willing to ride out some turbulence could end up making solid returns on this stock over the next several years. More From The Motley Fool 10 Best Stocks to Buy Today The $16,728 Social Security Bonus You Cannot Afford to Miss 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) What Is an ETF? 5 Recession-Proof Stocks How to Beat the Market Jason Hall has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy . |
The Latest: UK prime minister pool cut to 4, Johnson at top
LONDON (AP) — The Latest on Conservative Party voting to pick Britain's next prime minister (all times local): 6:05 p.m. The contest to become Britain's next prime minister is down to four candidates, with Boris Johnson building on his commanding lead in a Conservative Party vote. Johnson gained 143 of 313 votes cast by Conservative lawmakers Wednesday in their third round of voting. He's being chased by Foreign Secretary Jeremy Hunt, Environment Secretary Michael Gove and Home Secretary Sajid Javid. International Development Secretary Rory Stewart, a longshot candidate who energized the race, received the fewest votes and drops out. Two more votes are scheduled for Thursday to whittle the field down to two. The final two contenders will go to a by-mail ballot of all 160,000 Conservative Party members nationwide. The winner is due to be announced in late July, and will replace Theresa May as party leader and prime minister. ___ 11:05 a.m. Britain's Conservative Party is set to kick one more candidate out of the contest to become the country's next prime minister, as rivals scramble to catch front-runner Boris Johnson. The five-strong field will be narrowed in elimination votes by Tory lawmakers Wednesday and Thursday, with the two top candidates going to a runoff of party members across the country. One of the remaining candidates, International Development Secretary Rory Stewart, says he is talking to Environment Secretary Michael Gove about combining forces. He says the question is "who is best able to politely and respectfully defeat Boris Johnson." Foreign Secretary Jeremy Hunt and Home Secretary Sajid Javid are also in the race. The winner, due to be announced in late July, will replace Theresa May as Conservative leader and prime minister. ___ Follow AP's full coverage of Brexit and the Conservative Party leadership race at: https://www.apnews.com/Brexit |
These are the best U.S. cities to live in on a teacher's salary -- and the worst
Clarification: The graphics in this story have been updated to reflect that the salaries listed are for gross pay, before taxes, as reported by employers to the Bureau of Labor Statistics. You're an elementary school teacher with a few years in the system. Where in the country will your pay stretch the furthest? Our first-of-its-kind analysis of teacher pay vs. housing costs in almost every U.S. metro area sought to answer that question. We based our standard for "most affordable" and "least affordable" on finance experts' recommendation to spend no more than 30% of your salary on housing. For teachers earning a median wage, the following metro areas offered the best and worst cost of living. And for recent graduates: The most-affordable cities listed below were pretty affordable for new teachers, too. What about your city? See our map of teacher pay and housing costs for 291 U.S. metro areas Most affordable cities for teachers 1. Johnstown, Pennsylvania Ninety minutes from Pittsburgh, Johnstown offers healthy salaries in the local school district, set against very low local housing prices. That's largely because the city is in distress; it's a former steelworker town. Mid-career teachers here earn about $56,000 in gross pay and would need to spend just 16% of that salary to afford median rent in the area. 2. Springfield, Ohio There are many Springfields, and two made our list for most affordable cities. First, Springfield, Ohio. Educators with experience here earn almost $64,000 and need to pay only 17% of it to afford the median rent. Locals told us that most teachers, however, prefer to live in nearby Dayton or Columbus and commute. 3. Rockford, Illinois More than two hours from the Windy City in far northern Illinois, mid-career teachers in the Rockford area earn almost $79,000 in gross pay and spend less than 20% of it on the local median rent. Chicago teachers, you can turn and groan now. Story continues 4. Las Cruces, New Mexico If deserts are your thing and you want to be closer to the border between U.S. and Mexico, head to Las Cruces, where mid-career teachers make almost $74,000 and still put less than 20% of their pay toward the median rent. 5. Springfield, Missouri In the heart of the Ozarks, the second super-affordable Springfield captures the area around Missouri's third-largest city. Experienced teachers earn about $57,000 and need to spend 20% of it to afford the median rent. Now you can afford repeat tram rides through Fantastic Caverns. Where else? These teachers' jobs give fair salary, housing, respect. All they had to do was leave U.S. The least affordable cities for teachers TL;DR version: Avoid California. At least the coasts. And wine country. 1. Santa Cruz, California The metro that's the least affordable for teachers has it all for everyone else: lovely surfing, cute shops, delicious seafood. But experienced teachers in the area only earn about $63,000, and rent is so high that an individual would have to give up two-thirds of his or her salary to afford the median rent. At least lying on the beach is free. 2. San Jose, California You know it's bad when Facebook feels compelled to build affordable housing for teachers . Tech companies have driven home prices so high in Silicon Valley that a mid-career teacher would have to spend 64% of his or her $77,000 salary in the San Jose area to afford an apartment. 3. San Francisco This area has been beyond the budgets of most public school teachers for decades. You're still in big tech country. A mid-career teacher around here would spend 62% of his or her $77,000 salary on rent. 4. Honolulu You're on an island where everything is imported, and luxury high-rise condos dominate Honolulu's housing developments. All of it means a teacher earning a median wage here would have to spend more than half of his or her $61,000 salary to afford the median rent. Paradise?: 'Living with 2 roommates in a dump': Hawaii too expensive for teachers 5. Santa Rosa, California Yep. Back to California. Now you're spending all your money on wine instead of rent. Plus you're still getting expensive housing spillover from the San Francisco area. As a mid-career teacher, get ready to give up more than half your $75,000 salary to afford the median rent in Sonoma County. It's not just pay: No matter where they live or what they earn, teachers feel disrespect Education coverage at USA TODAY is made possible in part by a grant from the Bill & Melinda Gates Foundation. The Gates Foundation does not provide editorial input. This article originally appeared on USA TODAY: These are the best U.S. cities to live in on a teacher's salary -- and the worst |
Scandal-hit Steinhoff says will suffer more in 2019
By Nqobile Dludla
JOHANNESBURG (Reuters) - Steinhoff International warned of the lingering damage from a massive accounting scandal after the South African retail group reported a 1.2 billion euro ($1.3 billion) annual loss, sending its volatile shares down 8 percent.
Steinhoff first flagged holes in its accounts in December 2017 -- the warning shot for an accounting fraud since put at over $7 billion -- shocking investors that had backed its transformation from a small South African outfit to discount furniture retailer straddling four continents.
While it reduced losses by 70 percent compared to the 4 billion euro figure in 2017, Steinhoff warned that the reputational damage it had suffered and advisor and professional fees would weigh on its performance this year.
These would compound a number of other factors dragging on net sales, including asset disposals, a weaker global economy and increased competition, its CEO Louis du Preez said in message from management in the 328-page 2018 annual report posted on its website.
"The company and group continue to work hard to recover from the consequences of the announcement of 5 December 2017," the message added.
Shares in Steinhoff, which owns Mattress Firm in the U.S., Fantastic chains in Australia and Conforama in France, fell 8 percent in Johannesburg on Wednesday morning after the news, but had recovered to 1.42 rand per share by 0920 - a 5.3% decline.
In Frankfurt, where it has a secondary listing, its shares fell more than 10 percent but have since regained some ground.
DELAYED EARNINGS
Steinhoff, under new management and working to clean up its balance sheet after the fraud, blamed one-off expenses including professional fees of 117 million euros and impairments for its 2018 loss.
The consequences of the scandal had a "severely negative" impact on its results, the annual report said.
The retailer had to repeatedly delay the release of its results for 2017 and 2018 as it waited for the outcome of an investigation by auditor PwC into the scandal and for audits from external auditor Deloitte, which kept missing deadlines due to the complexity of the fraud.
PwC's probe found eight people, including former Steinhoff executives, were involved in a scheme where potential intercompany transactions worth 6.5 billion euros were fraudulently recorded as external income to prop up profits and hide costs in money-losing subsidiaries.
In the 2018 reporting period, Steinhoff said sales were affected by asset disposals to shore up liquidity as well as tough trading conditions, with revenue from continuing operations up 3% to 12.8 billion euros.
Asset disposals include a majority stake in a South African auto dealership unit, Conforama's 17% stake in online fashion retailer Showroomprive.com, Steinhoff's 13.5% stake in investment firm PSG Group, a 43% stake in KAP Industrial as well as property in Austria.
Its 2019 half-year results are scheduled for release on July 12. Net finance costs are expected to be higher than in 2018 as fees related to the probe and restructuring effort inflate expenses for another year.
($1 = 0.8929 euros)
(Reporting by Nqobile Dludla; Additional reporting by Emma Rumney; Editing by Chris Reese, Grant McCool and Keith Weir) |
Imagine Owning Cidara Therapeutics (NASDAQ:CDTX) And Trying To Stomach The 85% Share Price Drop
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As an investor, mistakes are inevitable. But you want to avoid the really big losses like the plague. So spare a thought for the long term shareholders ofCidara Therapeutics, Inc.(NASDAQ:CDTX); the share price is down a whopping 85% in the last three years. That would be a disturbing experience. The more recent news is of little comfort, with the share price down 71% in a year. The falls have accelerated recently, with the share price down 41% in the last three months.
While a drop like that is definitely a body blow, money isn't as important as health and happiness.
Check out our latest analysis for Cidara Therapeutics
With zero revenue generated over twelve months, we don't think that Cidara Therapeutics has proved its business plan yet. We can't help wondering why it's publicly listed so early in its journey. Are venture capitalists not interested? So it seems that the investors focused more on what could be, than paying attention to the current revenues (or lack thereof). For example, they may be hoping that Cidara Therapeutics comes up with a great new product, before it runs out of money.
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 go on to make revenue, profits, and generate value, others get hyped up by hopeful naifs before eventually going bankrupt. Some Cidara Therapeutics investors have already had a taste of the bitterness stocks like this can leave in the mouth.
When it reported in March 2019 Cidara Therapeutics had minimal cash in excess of all liabilities consider its expenditure: just US$37m 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 47% per year, over 3 years. You can click on the image below to see (in greater detail) how Cidara Therapeutics's cash levels have changed over time.
In reality it's hard to have much certainty when valuing a business that has neither revenue or profit. Would it bother you if insiders were selling the stock? It would bother me, that's for sure. It only takes a moment for you tocheck whether we have identified any insider sales recently.
Cidara Therapeutics shareholders are down 71% for the year, but the broader market is up 4.6%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Shareholders have lost 47% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. We would be wary of buying into a company with unsolved problems, although some investors will buy into struggling stocks if they believe the price is sufficiently attractive. Most investors take the time to check the data on insider transactions. You canclick here to see if insiders have been buying or selling.
If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on 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. |
Imagine Owning SCYNEXIS (NASDAQ:SCYX) And Trying To Stomach The 84% Share Price Drop
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It's nice to see theSCYNEXIS, Inc.(NASDAQ:SCYX) share price up 19% in a week. But will that repair the damage for the weary investors who have owned this stock as it declined over half a decade? Probably not. Indeed, the share price is down a whopping 84% in that time. While the recent increase might be a green shoot, we're certainly hesitant to rejoice. The real question is whether the business can leave its past behind and improve itself over the years ahead.
We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don't have to lose the lesson.
Check out our latest analysis for SCYNEXIS
With just US$257,000 worth of revenue in twelve months, we don't think the market considers SCYNEXIS to have proven its business plan. 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. It seems likely some shareholders believe that SCYNEXIS will significantly advance the business plan before too long.
As a general rule, if a company doesn't have much revenue, and it loses money, then it is a high risk investment. There is usually a significant chance that they will need more money for business development, putting them at the mercy of capital markets. So the share price itself impacts the value of the shares (as it determines the cost of capital). While some companies like this go on to deliver on their plan, making good money for shareholders, many end in painful losses and eventual de-listing. SCYNEXIS has already given some investors a taste of the bitter losses that high risk investing can cause.
SCYNEXIS had cash in excess of all liabilities of just US$5.3m when it last reported (March 2019). So if it hasn't remedied the situation already, it will almost certainly have to raise more capital soon. That probably explains why the share price is down 31% per year, over 5 years. You can see in the image below, how SCYNEXIS's cash levels have changed over time (click to see the values).
It can be extremely risky to invest in a company that doesn't even have revenue. There's no way to know its value easily. What if insiders are ditching the stock hand over fist? I'd like that just about as much as I like to drink milk and fruit juice mixed together. You canclick here to see if there are insiders selling.
Investors in SCYNEXIS had a tough year, with a total loss of 26%, 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. Unfortunately, longer term shareholders are suffering worse, given the loss of 31% doled out over the last five years. We'd need to see some sustained improvements in the key metrics before we could muster much enthusiasm. If you want to research this stock further, the data on insider buying is an obvious place to start. You canclick here to see who has been buying shares - and the price they paid.
There are plenty of other companies that have insiders buying up shares. You probably donotwant to miss thisfreelist of growing companies that insiders are buying.
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. |
Apple Might Move a Chunk of iPhone Production Out of China Thanks to Trump's Trade War
Few companies could get hurt by President Trump's ongoing trade war with China as badly asApple(NASDAQ: AAPL), given the Mac maker's sheer size and impact on both of the world's largest economies. If the tweeter in chief's tariffs take effect, Apple's iPhone margins could get crushed by anestimated 4 percentage points-- either that, or the company would have to jack up already-lofty iPhone prices by a 14% just to offset the expense. Of course, Trump would ideally like Apple to move iPhone production back to the U.S.,not understanding how unrealistic that is.
Apple is now reportedly exploring moving a chunk of iPhone production out of China, but those jobs wouldn't be coming stateside.
A production worker performing a quality check on an iPhone. Image source: Apple.
TheNikkei Asian Reviewreports that Apple has asked prominent suppliers to analyze moving 15% to 30% of iPhone production capacity out of China. Those suppliers includeFoxconn, Pegatron, Wistron, Compal, Inventec, and Quanta, among others. That production would not be coming to the U.S., however, instead likely going to other countries in Southeast Asia, such as India, Indonesia, Malaysia, or Vietnam, according to the report. The closest that production could come to the U.S. would be Mexico, but Trump recently threatened to start a trade war with Mexico by imposing taxes on U.S. importers over the unrelated issue of immigration.
India and Vietnam appear to be the most promising countries to diversify production into, according to theNikkei's sources. Apple has been slowlymoving some high-end iPhone production to India, which also has an added benefit of giving the company more leeway in opening retail stores. India hascomplex regulationsaround foreign multinationals owning and operating retail stores, and Apple is preparing to open its first store in the world's second-most-populous nation.
Shortly after Trump was elected but before he began waging trade wars the world over, Apple hadpreviously askedFoxconn and Pegatron to evaluate moving iPhone production to the U.S.
Tariffs are just one reason Apple is considering the transition, albeit a major one. The tech titan is now realizing that having its supply chain concentrated so heavily in China is also a risk, and diversifying the production base could be beneficial for other reasons as well. "A lower birthrate, higher labor costs and the risk of overly centralizing its production in one country," one source told theNikkei. "These adverse factors are not going anywhere."
The global consumer electronics supply chain has been consolidating in Asia for decades, so while Apple might try to move some of its operations out of China, it still needs to be nearby to leverage the logistical efficiencies that close proximity offers. That's why it is asking a constellation of suppliers to consider moving around, which would take years.
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Evan Niu, CFAowns shares of Apple. The Motley Fool owns shares of and recommends Apple. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool has adisclosure policy. |
'Sully' Sullenberger blasts U.S. aircraft certification process, says 737 MAX pilots need new simulator training
By David Shepardson
WASHINGTON (Reuters) - Chesley "Sully" Sullenberger, who in 2009 landed a US Airways flight safely on the Hudson River in New York, told a congressional panel on Wednesday that pilots of the now-grounded Boeing 737 MAX should get new simulator training before the plane returns to service.
Sullenberger, who has blasted Boeing Co and the Federal Aviation Administration for their roles in the two 737 MAX crashes since October that killed 346 people, also said the U.S. system of certifying new aircraft is not working.
"Our current system of aircraft design and certification has failed us," he said.
His testimony came during a hearing meant to give lawmakers looking into Boeing and the 737 MAX crashes a better understanding of views on the steps needed to prevent similar crashes, particularly given the rising use of automation on airplanes.
Boeing said in May it had completed an update to software, known as MCAS, which would stop erroneous data from triggering an anti-stall system that automatically turned down the noses of the two planes that crashed, despite pilot efforts to stop it.
Sullenberger told the U.S. House Transportation and Infrastructure Committee that "it is clear that the original version of MCAS was fatally flawed and should never have been approved."
Allied Pilots Association President Daniel Carey told the committee that getting all pilots in simulators before the 737 MAX returns to service poses logistical issues, with 4,200 737 MAX pilots at American Airlines and 9,000 737 MAX pilots at Southwest Airlines.
Boeing has said that simulator training is not necessary, and is recommending a mandatory computer-based course that explains MCAS and could be completed at a pilot’s home in about an hour, according to pilot unions.
Acting FAA Administrator Dan Elwell said in May he had not decided on whether or not to require simulator training, but some foreign governments have also expressed support for additional simulator training.
Carey said pilots could get computer- and video-based training before the plane returns to service and then all could get into simulators within 10 months.
Committee Chairman Peter DeFazio criticized Boeing for failing to disclose details about the MCAS system to pilots. "The pilots didn't know it existed," DeFazio said.
DeFazio said Wednesday he plans a future hearing with Boeing. Boeing did not immediately comment on Wednesday.
Two people briefed on the matter said Boeing is set to conduct a certification flight as early as next week before it formally submits its software upgrade and training proposal.
Sharon Pinkerton, a vice president at Airlines for America, an industry trade group that represents American and Southwest, said airlines are relying on the FAA and the independent flight standard board for guidance.
"We are confident that working with those independent experts, involving our pilots unions, they will come to the right decision about what kind of training is needed and we will provide that training," Pinkerton told the panel.
Federal prosecutors aided by the FBI, the National Transportation Safety Board, the Transportation Department's inspector general, congressional panels and a number of independent committees are reviewing the 737 MAX's certification. Some in Congress have criticized the long-standing FAA practice of designating some certification tasks to Boeing or other aircraft manufacturers.
In a commentary in March on CBS MarketWatch, Sullenberger said "there is too cozy a relationship between the industry and the regulators" for proper oversight to be assured.
Major U.S. airlines have cancelled flights into early September because of the grounding of the 737 MAX.
Sullenberger managed to glide his Airbus A320 to a safe landing on the Hudson River after hitting a flock of geese shortly after takeoff, saving all 155 on board, in what became known as the "Miracle on the Hudson."
(Reporting by David Shepardson; Editing by Sonya Hepinstall and Tom Brown) |
IBM Blockchain targets SMEs with launch of tiered ‘pay-as-you-grow’ model
IBM haslaunched"Version 2" of its enterprise-blockchain platform, but beneath the technical innovations lies a much-changed pricing model.
Until now, IBM offered a single "high value" blockchain service to enterprises at a premium rate. But this has been replaced with a "pay as you grow model," meaning companies will be to access more basic tools appropriate to their size and business model. It also suggests most major enterprises are nowhere near full-scale adoption.
Jerry Cuomo, VP of IBM Blockchain Technology, penned a blog announcing the "next-gen" upgrade, briefly nodding to the pricing changes, writing: "The platform features a new pricing model that allows you to start small and pay as you grow, pay for only what you need, and maintain full control over total cost of network ownership."
In an interview with The Block, Cuomo said in retrospect, trying to sell high-end technology before it proving its abilities may have been premature.
“Paying upfront before you’ve proven the success of the project has never been widely accepted. There’s a more established practice where. when you’re exploring, the price is lower. And when its ready to go into production, and you’ve shown you can provide value, it [the price] goes up," Cuomo said.
"Not everyone was ready for that," he added, confirming that the entry-point will now be much lower and there is now support for starting small. "We are meeting them where they are rather than making them coming to it."
Theoretically, the shift dramatically increases IBM's target audience, encompassing small and medium-sized enterprises (SMEs) rather than just major corporations - who have been slow to reach for their wallets.
IBM has amulti-pronged blockchain division, employing around 1,600 people globallyand counting; the biggest among its tech peers. Its star solution, currently under trial, is theIBM Food Trust Network,which aims to foster transparency in the food industry by documenting the supply chain via a blockchain. Meanwhile, the tech division that Jerry Cuomo leads offers enterprises the blockchain software itself (built upon the Hyperledger Fabric platform) so they don’t have to develop their own.
Now, IBM's blockchain software and its corresponding services will be broken up into distinct services rather than a complete package. Those services will include governance or privacy-focused offerings. Vertrax, a supply chain management solutions provider in the oil and gas industry, will be the first client of Version 2.
The other noteworthy change for Big Blue's Blockchain Platform is the addition of "multicloud architecture." Its distributed ledger can be deployed to public clouds like Amazon's AWS and Microsoft's Azure, or in private clouds, and it now offers a range of support for multiple smart contracts languages including JavaScript, Java, and Go. The blog summarised it was now a "fully-flexible blockchain platform," highlighting the need to remove the complexity that came with having multiple cloud vendors.
The move follows in the same footsteps as Digital Asset, whichyesterday revealedit was making its smart contract language compatible with enterprise blockchain-maker giants Hyperledger Fabric and R3 Corda. |
Should You Think About Buying CDK Global, Inc. (NASDAQ:CDK) Now?
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CDK Global, Inc. (NASDAQ:CDK), which is in the software business, and is based in United States, received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to $62.39 at one point, and dropping to the lows of $47.35. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether CDK Global's current trading price of $47.94 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at CDK Global’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for CDK Global
Great news for investors – CDK Global 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 CDK Global’s ratio of 16.21x is below its peer average of 50.52x, which suggests the stock is undervalued compared to the Software industry. Another thing to keep in mind is that CDK Global’s share price is quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. CDK Global’s earnings over the next few years are expected to increase by 27%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
Are you a shareholder?Since CDK is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic 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 CDK 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 CDK. 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 CDK Global. You can find everything you need to know about CDK Global inthe latest infographic research report. If you are no longer interested in CDK Global, 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. |
Migrants moved from Bosnian town to camp at former garbage dump
By Boris Kavic VUCJAK, Bosnia (Reuters) - Up to 700 migrants from Asia and the Middle East who had been sleeping rough in the Bosnian town of Bihac have been moved to a camp on the site of a former garbage dump near the Croatian border that has been criticized as inadequate by UN agencies. A few dozen newly-erected white tents could be seen on Wednesday in a meadow surrounded by trees and bushes and guarded by police. In scorching heat, migrants queued for food and used water from tanks to wash and shave themselves. "This is not (a) camp," said Mohammed Jamil, from Pakistan, "These are only tents, no facilities, no toilets, no proper food." United Nations agencies have criticized sanitary facilities at the Vucjak site and its location close to areas still peppered with landmines from the 1990s wars in Bosnia. The migrants themselves have complained about being moved to the isolated, snake-infested border area from Bihac, where they had access to shops, pharmacies and the internet. Authorities say the move was to ease the burden on Bihac, where citizens had protested that migrants sleeping in parks and abandoned houses posed security and health risks. Unlike many European countries, Bosnia did not experience significant migrant arrivals in 2015. But since European Union members Hungary, Slovenia and neighboring Croatia sealed their borders it has seen an influx of people trying to reach wealthier nations. About 25,000 migrants and refugees entered the Balkan country from Serbia and Montenegro last year, and about 9,000 have arrived this year. Around 6,000 are in Bihac and Velika Kladusa, two towns bordering Croatia, but only about 3,500 have been placed in four transit centers there. "We don't want to live here, we want to go to Italy, Germany," said 52-year-old Jamil. Mohammed Ahmad, 25, who is also from Pakistan, said police had treated the migrants roughly even though few of them were "troublemakers". Story continues Selam Midjic, the secretary of the local Red Cross, which has been distributing tents, food, clothes and personal hygiene items to the migrants, said the situation at Vucjak has been improving daily. "We have made a small tent settlement out of nothing in which we are trying to create ever better conditions for migrants," Midjic said. (Writing by Daria Sito-Sucic; Editing by Catherine Evans) |
Huawei Iran-Sanctions Evidence Deemed Too Risky for China to See
(Bloomberg) -- Some evidence used to charge Huawei Technologies Co. with bank fraud and violating U.S. sanctions on Iran was deemed so sensitive that the Chinese telecom giant’s lawyers must now take unusual steps to review the information -- and even then, the company may never see it.
While specific evidence wasn’t disclosed, prosecutors convinced a federal judge that releasing too much would pose a risk to national security and other governmental concerns. The U.S. already had banned the company’s technology and accused Huawei of aiding Beijing in espionage. Last week, the court imposed restrictions on when and how information in the criminal case gets shared, and who can see it.
“What underlies all of this is the allegation that there are deep and close connections between Huawei and the Chinese government,” said Ryan Fayhee, a former Justice Department national security lawyer. “That’s why this presents differently than a traditional fraud case.”
The Huawei prosecution has forced government lawyers to balance evidence rules and a defendant’s right to a fair trial, while safeguarding intelligence gathering. A similar dilemma has threatened to undermine a case brought by Special Counsel Robert Mueller against 16 individuals and companies in Russia over election meddling, because the government is refusing to disclose some sensitive evidence.
For now, the Huawei case is proceeding with disclosures to the company’s American defense lawyers under restrictions set June 10 by U.S. District Judge Ann Donnelly in Brooklyn, New York. On Wednesday, she scheduled a Sept. 4 hearing to decide whether one Huawei lawyer, James M. Cole, should be disqualified because he had access to classified data when he worked as a Deputy Attorney General of the U.S. from 2011 to 2015. Cole, now a partner at Sidley Austin LLP, has said he has no conflict.
Criminal Probe
As the criminal case against Huawei moves forward, the prosecution of its chief financial officer, Meng Wanzhou, remains on hold. She is fighting extradition from Vancouver, Canada, after being arrested at the request of the U.S. last year. She is accused of defrauding banks when she made a presentation to one of its major banking partners and lied about by lying Huawei’s business dealings in Iran, in violation of U.S. sanctions.
Prosecutor Alexander Solomon disclosed on Wednesday that the company’s defense lawyers, who have received at least 700,000 pages of evidence turned over by the U.S. in the New York case, want to share some of the information with Meng’s defense team. The U.S. has said that Meng wouldn’t be permitted to see evidence until a separate order is worked out with her lawyers.
Meng’s billionaire father, Huawei founder Ren Zhengfei, has rejected the U.S. accusations against the company and his daughter. On Monday, Ren said the U.S. sanctions against Huawei -- one of the world’s largest makers of smartphones and networking equipment -- could reduce revenue by about $30 billion over the next two years, wiping out any growth prospects by withholding critical American technology.
The indictment against Huawei and Meng also mentions Ren, a former engineer with the People’s Liberation Army before he founded the telecommunications company. Prosecutors say he lied to FBI agents in 2007 when he “falsely stated” it had no business dealings in Iran. He hasn’t been criminally charged. The same day Meng, Huawei and its U.S. subsidiaries where charged with violating sanctions, prosecutors filed a separate case in Seattle accusing the company with stealing trade secrets from American rival T-Mobile.
Under the restrictions imposed by Donnelly, some evidence labeled “sensitive” by the government can’t be distributed beyond Huawei’s legal team, can only be accessed by certain witnesses in the presence of American lawyers, and must remain in the U.S. If there are disputes over evidence handling, a separate group of government lawyers not involved in the prosecution can be consulted or the judge can get involved.
David Bitkower, a lawyer for Huawei, declined to comment on the case, as did John Marzulli, a spokesman for Brooklyn U.S. Attorney Richard Donoghue.
The rules are even tighter for classified information, and evidence gathered under the Foreign Intelligence Surveillance Act will require a separate process to determine what the defense will be able to view, prosecutors said in a court filing Monday.
Unusual Restrictions
Donnelly’s order includes unusual restrictions, even for sanctions cases, legal experts said.
Some of the evidence can only be reviewed by defense lawyers who are U.S. citizens, because the information could identify potential witnesses or contains “national security” material, prosecutors say. Those documents must be stored on a computer that isn’t connected to the Internet and can’t be taken or transmitted outside the country or shared with Huawei.
If Huawei lawyers want to share sensitive material with anyone outside the U.S., they must notify the government. There are also provisions for allowing foreign nationals to view the evidence in the U.S., including with safe-passage guarantees against arrest. There also are options for reviewing information outside the country, but only in the presence of U.S. defense lawyers.
Without such provisions, Huawei could accuse the U.S. of hampering its ability to defend itself, said Henry Mazurek, a partner at law firm Meister Seelig and Fein LLP in New York.
Huawei’s close ties to the Chinese government have impacted the willingness of the U.S. to share evidence with the company, but prosecutors are obligated to turn over evidence, said Fayhee, the former federal prosecutor.
“The government has the view, as also substantiated by its recent blacklisting, that Huawei is an arm of the Chinese government,” Fayhee said. “The founder of the company served nearly a decade as an engineer with the People’s Liberation Army, and continued connections have been regularly alleged. But that’s what the government signed up for when it decided to bring this case.”
The case is U.S. v. Huawei Technologies Co., 18-cr-457, U.S. District Court, Eastern District of New York (Brooklyn).
(Updates with Huawei wanting to show Meng evidence in seventh paragraph.)
To contact the reporter on this story: Patricia Hurtado in Federal Court in Manhattan at pathurtado@bloomberg.net
To contact the editors responsible for this story: David Glovin at dglovin@bloomberg.net, Steve Stroth, Peter Blumberg
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©2019 Bloomberg L.P. |
Why Shares of Jabil Jumped Today
Shares of manufacturing services providerJabil(NYSE: JBL)surged on Wednesday after the company reported fiscal third-quarter results that beat expectations. Earnings matched analyst estimates, but revenue was higher than expected. The stock was up about 8.4% at noon EDT, after jumping much as 11.4% earlier in the day.
Jabil reported third-quarter revenue of $6.14 billion, up 12.9% year over year and $130 million higher than analysts were expecting. The diversified manufacturing services segment suffered a 6% revenue decline, but this was more than offset by 26% growth in electronics manufacturing services.
Image source: Getty Images.
Non-GAAPearnings per share came in at $0.57, up from $0.46 in the prior-year period and in line with analyst expectations. GAAP EPS was $0.28, up from $0.25.
CEO Mark Mondello sees a strong fourth quarter ahead: "In the fourth quarter, our outlook for revenue, core EPS and cash flow is solid as we see robust demand in 5G / wireless, cloud, industrial, healthcare and packaging. Over the longer-term, we remain relentless in our commitment to drive margin expansion and strong cash flows through a well-balanced, diverse stream of income."
Jabil expects to produce fourth-quarter revenue between $6.3 billion and $6.9 billion, an increase of 14% year over year at the midpoint. The diversified manufacturing services segment is forecast to grow by 4%, and the electronics manufacturing service segment is expected to grow by 22%. The company guided for non-GAAP EPS between $0.76 and $0.96.
Jabil counted onApplefor 28% of its revenue in fiscal 2018, so disappointing results from Apple later this year could derail Jabil's own results. The company's guidance ranges are wide, which may reflect a higher-than-usual level of uncertainty.
Jabil's performance and guidance were solid, which was enough to push up the stock. But longer-term risks remain.
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The 11 Best Graduate Aerospace Engineering Programs
Take flight with an aerospace engineering grad degree. The incredible technology that allows aircraft to take off, fly through the skies and land safely has fascinated people for years. And for some, that fascination could shape their career goals. A secondary degree in engineering concentrated in aerospace could give individuals the boost they need to reach new career heights. With that in mind, here are the 22 best aerospace engineering graduate programs. 20 (tie). University of California--San Diego (Jacobs) Location: La Jolla, California Overall U.S. News Best Engineering Schools rank: 11 (tie) Percent of graduate engineering students who specialize in aerospace: 0.7% Number of aerospace engineering faculty members: 9 Learn more about UCSD's Jacobs School of Engineering . 20 (tie). University of Notre Dame Location: Notre Dame, Indiana Overall U.S. News Best Engineering Schools rank: 47 (tie) Percent of graduate engineering students who specialize in aerospace: 7.7% Number of aerospace engineering faculty members: 15 Learn more about Notre Dame's College of Engineering . 20 (tie). University of Southern California (Viterbi) Location: Los Angeles Overall U.S. News Best Engineering Schools rank: 9 Percent of graduate engineering students who specialize in aerospace: Information not provided Number of aerospace engineering faculty members: Information not provided Learn more about the Andrew and Erna Viterbi School of Engineering . 17 (tie). Ohio State University Location: Columbus, Ohio Overall U.S. News Best Engineering Schools rank: 27 (tie) Percent of graduate engineering students who specialize in aerospace: 3.7% Number of aerospace engineering faculty members: 21 Learn more about Ohio State's College of Engineering . 17 (tie). Pennsylvania State University--University Park Location: University Park, Pennsylvania Overall U.S. News Best Engineering Schools rank: 35 Percent of graduate engineering students who specialize in aerospace: 5.5% Number of aerospace engineering faculty members: 26 Story continues Learn more about Penn State's College of Engineering . 17 (tie). University of Washington Location: Seattle Overall U.S. News Best Engineering Schools rank: 27 (tie) Percent of graduate engineering students who specialize in aerospace: 8.3% Number of aerospace engineering faculty members: 24 Learn more about the University of Washington College of Engineering . 14 (tie). University of Maryland--College Park (Clark) Location: College Park, Maryland Overall U.S. News Best Engineering Schools rank: 22 (tie) Percent of graduate engineering students who specialize in aerospace: 8.6% Number of aerospace engineering faculty members: 49 Learn more about UMCP's A. James Clark School of Engineering . 14 (tie). University of Minnesota--Twin Cities Location: Minneapolis Overall U.S. News Best Engineering Schools rank: 27 (tie) Percent of graduate engineering students who specialize in aerospace: 5.3% Number of aerospace engineering faculty members: 22 Learn more about the University of Minnesota--Twin Cities College of Science and Engineering . 14 (tie). Virginia Tech Location: Blacksburg, Virginia Overall U.S. News Best Engineering Schools rank: 31 (tie) Percent of graduate engineering students who specialize in aerospace: Information not provided Number of aerospace engineering faculty members: 29 Learn more about Virginia Tech's College of Engineering . 13. University of California--Los Angeles (Samueli) Location: Los Angeles Overall U.S. News Best Engineering Schools rank: 16 Percent of graduate engineering students who specialize in aerospace: 2.3% Number of aerospace engineering faculty members: 40 Learn more about UCLA's Henry Samueli School of Engineering and Applied Science . 12. Cornell University Location: Ithaca, New York Overall U.S. News Best Engineering Schools rank: 14 Percent of graduate engineering students who specialize in aerospace: 1.6% Number of aerospace engineering faculty members: 36 Learn more about Cornell's College of Engineering . 10 (tie). Texas A&M University--College Station Location: College Station, Texas Overall U.S. News Best Engineering Schools rank: 15 Percent of graduate engineering students who specialize in aerospace: 4.7% Number of aerospace engineering faculty members: 50 Learn more about Texas A&M's College of Engineering . 10 (tie). University of Colorado--Boulder Location: Boulder, Colorado Overall U.S. News Best Engineering Schools rank: 31 (tie) Percent of graduate engineering students who specialize in aerospace: 19.7% Number of aerospace engineering faculty members: 40 Learn more about the University of Colorado--Boulder College of Engineering and Applied Science . 9. Princeton University (NJ) Location: Princeton, New Jersey Overall U.S. News Best Engineering Schools rank: 17 (tie) Percent of graduate engineering students who specialize in aerospace: 14.8% Number of aerospace engineering faculty members: 28 Learn more about Princeton's School of Engineering & Applied Science . 7 (tie). University of Illinois--Urbana-Champaign Location: Urbana, Illinois Overall U.S. News Best Engineering Schools rank: 10 Percent of graduate engineering students who specialize in aerospace: 3.8% Number of aerospace engineering faculty members: 19 Learn more about the University of Illinois--Urbana-Champaign College of Engineering . 7 (tie). University of Texas--Austin (Cockrell) Location : Austin, Texas Overall U.S. News Best Engineering Schools rank: 11 (tie) Percent of graduate engineering students who specialize in aerospace: 5.8% Number of aerospace engineering faculty members: 44 Learn more about the UT--Austin's Cockrell School of Engineering . 5 (tie). Purdue University--West Lafayette (IN) Location: West Lafayette, Indiana Overall U.S. News Best Engineering Schools rank: 8 Percent of graduate engineering students who specialize in aerospace: 13.2% Number of aerospace engineering faculty members: 36 Learn more about Purdue's College of Engineering . 5 (tie). University of Michigan--Ann Arbor Location: Ann Arbor, Michigan Overall U.S. News Best Engineering Schools rank: 5 (tie) Percent of graduate engineering students who specialize in aerospace: 6.4% Number of aerospace engineering faculty members: 32 Learn more about the University of Michigan--Ann Arbor College of Engineering . 4. Georgia Institute of Technology Location: Atlanta Overall U.S. News Best Engineering Schools rank: 7 Percent of graduate engineering students who specialize in aerospace: 9.5% Number of aerospace engineering faculty members: 43 Learn more about Georgia Tech's College of Engineering . 3. California Institute of Technology Location: Pasadena, California Overall U.S. News Best Engineering Schools rank: 5 (tie) Percent of graduate engineering students who specialize in aerospace: 12.3% Number of aerospace engineering faculty members: 22 Learn more about CalTech's Division of Engineering and Applied Science . 1 (tie). Massachusetts Institute of Technology Location: Cambridge, Massachusetts Overall U.S. News Best Engineering Schools rank: 1 Percent of graduate engineering students who specialize in aerospace: 7.2% Number of aerospace engineering faculty members: 36 Learn more about MIT's School of Engineering . 1 (tie). Stanford University (CA) Location: Stanford, California Overall U.S. News Best Engineering Schools rank: 2 Percent of graduate engineering students who specialize in aerospace: 6.4% Number of aerospace engineering faculty members: 14 Learn more about Stanford's School of Engineering . Learn more about the best graduate schools. Check out all of the 2020 Best Graduate Schools rankings, and learn about the various types of engineering degrees and engineering jobs . Stay up to date on education news by following U.S. News Education on Facebook , Twitter and LinkedIn . Here are the highest ranked aerospace engineering grad programs. -- 1 (tie). Massachusetts Institute of Technology -- 1 (tie). Stanford University -- 3. California Institute of Technology -- 4. Georgia Institute of Technology -- 5 (tie). Purdue University--West Lafayette -- 5 (tie). University of Michigan--Ann Arbor -- 7 (tie). University of Illinois--Urbana-Champaign -- 7 (tie). University of Texas--Austin (Cockrell) -- 9. Princeton University -- 10 (tie). Texas A&M University--College Station -- 10 (tie). University of Colorado--Boulder -- 12. Cornell University -- 13. University of California--Los Angeles (Samueli) -- 14 (tie). University of Maryland--College Park (Clark) -- 14 (tie). University of Minnesota--Twin Cities -- 14 (tie). Virginia Tech -- 17 (tie). Ohio State University -- 17 (tie). Pennsylvania State University--University Park -- 17 (tie). University of Washington -- 20 (tie). University of California--San Diego (Jacobs) -- 20 (tie). University of Notre Dame -- 20 (tie). University of Southern California (Viterbi) More From US News & World Report See the Best Graduate Computer Engineering Schools 10 College Majors With the Highest Starting Salaries See the Best Engineering Graduate Programs |
YouTube Is Considering Changes to Kids Content After Criticism
(Bloomberg) -- YouTube is considering more changes to how content for kids shows up on the world’s largest video site as criticism mounts that it’s unsafe for children.
YouTube, owned by Alphabet Inc.’s Google, is debating changes involving kids’ content, according to a person familiar with the discussions. The Wall Street Journal earlier reported that the company was mulling moving all videos for children to its separate YouTube Kids app. Such a drastic change is unlikely, according to the person, who asked not to be identified discussing in-house company deliberations.
The Google unit has long positioned itself as a neutral platform that lets anyone upload and watch whatever videos they want. But now the site is struggling to convince parents and advertisers that it can protect children from violent, upsetting and harmful content. On Monday, Bloomberg reported that children who use YouTube’s main site far outnumber those who stick to the safer, vetted YouTube Kids app.
YouTube has already made tweaks to the platform as it tries to create a safer site for children. The company banned comments on thousands of videos featuring kids after predators were found to be using the comment section to flag parts of the videos showing activities that could be twisted to be construed as sexual.
“We consider lots of ideas for improving YouTube and some remain just that -- ideas,” a YouTube spokeswoman said in an email. “Others, we develop and launch, like our restrictions to minors live streaming or updated hate speech policy.”
YouTube only recently made “responsible growth” its core metric, after years of focusing on engagement, even after employees flagged harmful and misleading videos to executives, Bloomberg reported earlier this year.
Major advertisers have frozen YouTube spending at various times out of fear their ads will be shown next to harmful videos. Still, the video site remains, with Facebook Inc. and Instagram, among the most popular places to advertise online.
To contact the reporters on this story: Gerrit De Vynck in New York at gdevynck@bloomberg.net;Lucas Shaw in Los Angeles at lshaw31@bloomberg.net
To contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Andrew Pollack, Robin Ajello
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
9/11 responder who appeared with Jon Stewart on Capitol Hill is now in hospice care
A cancer-stricken 9/11 first responder who testified alongside Jon Stewart at last weeks House Judiciary Committee hearing on reauthorizing the September 11th Victim Compensation Fund is now in hospice care. Lou Alvarez, a 53-year-old former NYPD bomb squad detective who appeared with other first responders at the Capitol, said in a Facebook post Wednesday that doctors informed him that his condition had worsened and there is nothing else they can do for him. The day after my trip I was scheduled for chemo, but the nurse noticed I was disoriented, he wrote. A few tests later they realized that my liver had completely shut down because of the tumors and wasnt cleaning out the toxins in my body and it was filling up with ammonia, hence the disorientation. Alvarez, who has colorectal cancer, told the House subcommittee on June 11 that he agreed to testify despite having his 69th round of chemotherapy scheduled for the next day. Jon Stewart, right, applauds following testimony from retired NYPD detective and 9/11 first responder Luis Alvarez during a House Judiciary Committee hearing last week on Capitol Hill. (Photo: Zach Gibson/Getty Images) You made me come down here the day before my 69th round of chemo, Alvarez told lawmakers. And Im going to make sure that you never forget to take care of the 9/11 responders. Stewart, who spoke after Alvarez, made an impassioned plea for Congress to reauthorize the fund , which is set to expire next year amid mounting claims from first responders, construction workers and others involved in operations at Ground Zero up through May 30, 2002. Im sorry if I sound angry and undiplomatic, Stewart said. I am angry, and you should be too. The subcommittee on Constitution, Civil Rights and Civil Liberties has 14 members, but fewer than half were present in the room at various points during his emotional testimony. And the former host of Comedy Centrals Daily Show berated those who failed to show up to the hearing. Sick and dying, they brought themselves down here to speak to no one, Stewart said. Shameful. Its an embarrassment to the country, and it is a stain on this institution. Alvarez testifies on Capitol Hill last week. (Photo: Zach Gibson/Getty Images) In his Facebook post , Alvarez said his transfer to hospice care had nothing to do with his trip to Washington, D.C. That was just coincidence, he wrote. Story continues Alvarez added: So now Im resting and Im at peace. I will continue to fight until the Good Lord decides its time. ___ Read more from Yahoo News: A furious Jon Stewart tells Congress to support 9/11 first responders McConnell on Stewart: I dont know why hes all bent out of shape Trump kicks off new campaign with airing of old grievances Orlando Sentinel endorses 'not Donald Trump' for president U.S. probably had excellent presidents who were gay, Buttigieg says |
Philippines government partners with blockchain company
The Philippines Department of Information and Communications Technology (DICT) has signed a Memorandum of Agreement (MOA) with U.S.-based blockchain company Monsoon,GMA News reports. DICT hopes the use of blockchain tech will facilitate business and help it with cybersecurity. Monsoon will provide DICT with “complimentary courtesy consultation, advice, cost-benefit, and socio-economic analysis” regarding Philippines’ use of blockchain technology.
“This partnership will directly benefit our continuous effort to address the country’s issues on ease of doing business and cybersecurity,” DICT Acting Secretary Eliseo Rio Jr. said. |
Microsoft’s Missteps Offer Antitrust Lessons for Tech’s Big Four
(Bloomberg) -- Of the five biggest tech companies in the U.S., Microsoft is the only one that isn't currently in the crosshairs of U.S. antitrust authorities. The software giant already took its turn through the regulatory wringer starting two decades ago, a years-long confrontation that resulted in the finding that the Redmond, Washington-based company had illegally maintained its monopoly for personal-computer operating-system software. The case dealt with the company's moves to kneecap the Netscape web browser by bundling its own product, Internet Explorer, into Windows, the dominant PC operating system.A federal judge ordered the company split in two in 2000, a fate Microsoft avoided when an appeals court reversed that part of the ruling and the company eventually settled. That 2002 settlement led to nine years of court supervision of the company's business practices and required Microsoft to give the top 20 computer makers identical contract terms for licensing Windows, and gave computer makers greater freedom to promote non-Microsoft products like browsers and media-playing software. Because observers and legal pundits almost uniformly agree the software giant did virtually everything wrong in the course of the investigation -- which had its start as early as 1990, followed by a 1998 Justice Department lawsuit -- in retrospect its story serves as a useful instruction manual of what not to do.
While no formal inquiries have yet been opened, the Federal Trade Commission and Justice Department carved up the territory of big tech -- Amazon.com Inc., Apple Inc., Alphabet Inc.’s Google and Facebook Inc. -- as they prepare to dig in on antitrust issues. The Department of Justice will look at Google, which dominates the online search and advertising spaces, and Apple, whose pervasive App Store is likely to be under examination. The FTC drew Facebook, with its behemoth social networking and messaging apps and a slew of recent privacy missteps, and e-commerce giant Amazon, which has been pushing into areas like grocery and health. As these companies build their legal teams and prepare strategies for the fight ahead, here are several lessons that Google, Amazon, Apple and Facebook can learn from Microsoft's battle with the feds.
Don't deny the obvious. Or don't even put up a fight about whether you have a monopoly. Microsoft, whose Windows software accounted for about 90% of the market for PC operating systems, opted to argue that the space was actually competitive. Parts of the argument included videos where Microsoft employees offered a straight-faced marketing pitch for the benefits of rival Linux programs with a tiny share of the market. The impulse is understandable -- monopoly sounds like a dirty word. But U.S. antitrust law doesn't expressly forbid having a monopoly; it outlaws doing certain things to establish, maintain or extend one. That led some legal scholars to argue that Microsoft would have been better served by copping to the Windows monopoly and establishing a legal beachhead against the idea that it did anything illegal to gain it or keep it. Arguing against something so self-evident via the company's very first witness strained credibility and started the case off on a bad footing.It's easy to imagine a similar issue applying to Google, which has more than 84% of the web-search market and controls 82% of mobile-phone operating systems. In the app-store business, Google and iPhone maker Apple together control more than 95% of all U.S. mobile app spending by consumers, according to Sensor Tower data. Apple CEO Tim Cook earlier this month told CBS that his company doesn’t have a dominant position in any market. But regulators may look at the power it wields through its app store. It could be more effective for these companies not to start by denying that leadership position -- if you have 80% or 90% percent of a market, arguing that you don't really dominate isn't the hill you want your legal reasoning to die on.
Don’t resort to spin. Microsoft's credibility with the press was no higher, hurt by constant counterfactual statements and spin. Each day, after a bruising in court as government lawyer David Boies poked holes in executive testimony and Judge Thomas Penfield Jackson alternated between chuckling at the witnesses and chastising them, Microsoft deployed a hapless PR person to the steps of the courthouse to recite the words, "Today was another good day for Microsoft." It never was.
Assume everything will be made public.Among the list of horrifying moments for Microsoft in court was the public showing of parts of the 20 hours of depositions of co-founder and Chief Executive Officer Bill Gates. The tapes (yes, they were tapes -- this was the 90s) showed an ill-lit, evasive and combative Gates engaging in Clintonian word-wrangling, such as asking about the definition of the word "definition" and arguing what "market share" meant. Microsoft claimed it had been assured the tapes would never be shown in court, or the company would have taken greater care with Gates’s appearance and manner. During their playback in court, the judge laughed at several points -- not the impression the software giant wanted to make on either Jackson or the public. Jackson told New Yorker reporter Ken Auletta that Gates came off as "arrogant" in the depositions.Just as bad for Microsoft, an array of internal emails were read aloud in court that contradicted the testimony of its executives, which further angered Jackson. The takeaway? Assume everything will be aired in the court of public opinion. If it was true 20 years ago, it’s even more apparent in the current era of oversharing, thanks to the tech companies’ own services.
Don't be condescending about the technology. Most lawyers, judges and regulators don't appreciate being told or having it implied that they lack the ability to apprehend certain tech concepts. Or that the reason they think there's been an antitrust violation is because they just don't "get" the technology. It was true that Jackson and Boies seldom used a computer at the time. But it didn't require a computer science doctorate to divine the legal merits of the case.
At the height of Microsoft's hubris (or carelessness, or both), the company sent Windows chief Jim Allchin to the stand with a doctored video that purported to show how computing performance would be degraded when the browser was removed from Windows on a single PC. It was actually done on several different computers and was an illustration of what might happen rather than a factual test, as the company initially claimed -- a fact that came to light only after several days of the government picking through every inconsistency in the video. Microsoft remade the simulation several times in an effort to save the testimony. The company seemed to think it could get away with baldy stating a technological claim and mocking up something that backed it up, perhaps reasoning that no one would know the difference, but it miscalculated badly (Joe Nocera, now a Bloomberg columnist but then writing for Fortune, recounts the whole cringeworthy story).Choose your lawyers wisely.Microsoft took on the U.S. government led by a combative Gates and an equally aggressive general counsel, Bill Neukom. Gates, the son of an attorney, was outraged, frustrated and convinced the company was being unfairly targeted. One of the company’s outside lawyers, from the firm Sullivan & Cromwell, said the company could put a ham sandwich into Windows if it wanted to. And throughout, Neukom not only failed to tamp down his executives’ worst impulses, he seemed to amp them up. His legal style led observers to point out that his last name -- pronounced `nuke 'em’ -- was quite fitting.The U.S. government’s latest antitrust targets should take heed: If your top executive's style tends towards waving a red flag in front of a bull, you may be wise to consider a top lawyer with a more conciliatory style. Google’s top executives have already raised the ire of lawmakers for refusing to appear before Congress, and no one has ever accused Jeff Bezos of being afraid of a fight. At Facebook, where Zuckerberg regards Gates as a mentor and observers see similarities in their styles and temperaments, this lesson might be particularly important.There are many different ways to lose.Right now, the companies are only at risk of an inquiry -- the agencies are deciding what, if any, action to take. But even at this stage, they should keep in mind that a loss doesn’t only mean a full-scale breakup or forced divestiture. Companies can avoid that extreme fate and still find, as Microsoft did, that the years of distraction from the fight have hampered their business and sucked up executive time and mental energy.In an interview last year at the Code Conference, Microsoft President and Chief Legal Officer Brad Smith lamented the distraction the case caused, and cited it as a reason the company missed out on the search market -- the business that fueled the runaway success of Google, now under the microscope itself. Others have pinned Microsoft’s abysmal performance in mobile computing partially on constraints and distractions from the case. Some of the company’s business missteps can fairly be attributed to poor execution and strategic errors that had nothing to do with the government dispute. Still, the notion that merely fighting an antitrust battle may do almost as much harm as losing one brings us to our last point.Consider settling early. It's hard to say with certainty what the late 1990s and early 2000s might have looked like for Microsoft had it found a way to settle with the government earlier than 2002. Still, for the government’s current targets, it's worth weighing a settlement against the impact of several years of investigation, a possible loss in court and potentially harsher restrictions or remedies. Amazon, Apple, Facebook and Google probably have a pretty good idea of what regulators may object to, and it’s worthwhile for them to consider ways to assuage those concerns while keeping the core of their businesses and future ambitions intact. The alternative is years of investigations, possibly damaging evidence and testimony, and ample distraction, all leading up to what could be a devastating loss in court.
(Updates with earlier comments from Tim Cook. A previous version of this story corrected the attribution of an anecdote about a ham sandwich.)
To contact the author of this story: Dina Bass in Seattle at dbass2@bloomberg.net
To contact the editor responsible for this story: Jillian Ward at jward56@bloomberg.net, Mark Milian
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
Revealed: The most peaceful countries in Europe
Cold day on Atlantic Ocean boat with misty mountains and Icelandic flag in foreground Iceland is the most peaceful country in Europe, it has been revealed. The Global Peace Index measures levels of safety and security in a society, along with the extent of ongoing domestic and international conflict, and the degree of militarisation. Europe, which is the most peaceful region in the world, is home to 17 of the 25 most peaceful countries and the only European nation to be considered among the most dangerous is Turkey - the 152nd safest in the world. The UK is ranked alongside Laos at 45th, five places safer than in the 2018 index. Iceland is followed by New Zealand in second place, Austria was ranked third, Portugal was fourth, followed by Denmark which had a reduction in terrorism impact in 2019. 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 EU Flag waving against blue Sky The remaining top 10 most peaceful countries were: Canada, Singapore, Slovenia, Japan and Czech Republic. Most aspects of the Safety and Security domain improved, especially political terror and the impact of terrorism. A total of 24 countries had a reduction in terrorism impact in 2019, chief among them Cyprus, Bosnia and Herzegovina, Greece, Spain, Denmark and Turkey. Turkey has the worst terrorism score in the region. Only eight countries recorded increases in terrorism, including the Netherlands, Latvia, Poland, Norway and Serbia. Afghanistan was ranked the most unsafe country, following closely by Syria, South Sudan, Yemen and Iraq. Watch the latest videos from Yahoo UK |
UPS Warns Training Regulations Will Hurt Its Long-Haul Driver Hiring
Entry-level driver training regulations going into force in 2020 will make it difficult for UPS to keep up with new driver demand, according to company documents.
UPS Inc(NYSE:UPS), one of the nation's largest less-than-truckload (LTL) freight carriers with over 20,000 long-haul trucks, has applied for an exemption from two requirements of the entry-level driver training (ELDT) final rule being administered by the Federal Motor Carrier Safety Administration (FMCSA).
The ELDT rule, which goes into effect on February 7, 2020, requires behind-the-wheel and theory driver training instructors have two years' experience and have held a commercial driver's license (CDL) for two years.
But in its exemption application – dated January 29, 2019 and made public on June 19 – UPS contends that under the regulations, no one at the company's in-house driver training school could be an instructor at the time the regulations go into effect unless he or she obtained a CDL and had started driving by February 7, 2018. "If it has to comply with the instructor qualification requirements, UPS would not be able to use a minimum of 25 percent of its current certified driver instructors," the company stated.
Forecasting out two years, that number would likely increase to 50 percent due to the company's changing workforce, it stated.
"UPS sees an increase in growth through volume demand, as well as an aging workforce which will lead to retiring CDL drivers and certified driver instructors. Without exemption from the trainer requirements, UPS's inability to use its skilled driver instructors will substantially impede its ability to meet the demand for new drivers."
The company argued that looking outside the company for instructors to fill those gaps was not an option. "UPS is committed to helping employees advance their careers as we maintain a ‘promote from within' culture," it stated. "This helps ensure employee engagement, advancement, and sustainability utilizing our current workforce in an industry that is being overwhelmed from a capacity standpoint."
UPS has also requested a five-year exemption from another ELDT requirement, that every training location be registered separately under the government program's Training Provider Registry. UPS claimed this would place a "significant administrative burden" on its in-house training if it were required to register as many as 1,800 UPS locations where a new driver could be trained.
"UPS estimates that the cost to register all of these locations would be $4,400/month, and that it would incur additional costs to keep track of the various registrations, file updates, and make new registrations when drivers will be trained by its skilled instructors in new locations," it stated.
Comments on UPS's exemption request must be received by July 19. UPS said that if granted, the exemption would allow it to employ an estimated 80 to 140 certified driver instructors and train 1,000 entry-level drivers annually.
Image Sourced From Pixabay
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© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
US economy is barely growing: Korn Ferry CEO
What better company to serve up the true pulse of the global economy than a top consultancy like Korn Ferry.
When the economy is humming along, major corporations contract with Korn Ferry to find strong talent to hire and assess the health of their businesses. Korn Ferry, which boasts 106 offices in 52 countries, also helps companies land best-in-class executive talent and design benefits programs. But when the economy isn’t performing up to snuff, its consultant services that often get cut off first by many large companies to quickly slash costs.
That said, it’s unlikely bulled-up investors want to hear what Korn Ferry CEO Gary Burnison said on Yahoo Finance’sThe First TradeWednesday.
“Clearly there is a disconnect between the equity markets and what’s happening in economies around the world. I wouldn’t be surprised if the U.S. economy is only growing at 1%. That’s why you see central banks taking a much more accommodative stance,” said Burnison, who is in New York City to celebrate a new sponsorship deal with the PGA Tour.
Burnison has a good point on there being a disconnect.
Economic data in the U.S. has worsened over the past month as the trade war with China has taken hold. Wall Street is back to looking toa near-term earnings recession. And the Federal Reserve is likely on the cusp of lowering interest rates in a bid to jumpstart growth and inflation.
Meanwhile, the data pertaining to the European and Chinese economies have been nothing to write home about this past month.
Despite the mixed to negative data backdrop, stocks are back to flirting with their record highs. Something is off — either a blinded Mr. Market who loves cheap money from the Fed or the assessments of leading CEOs such as Burnison.
“The Chinese economy has been hurt — there is no question about that,” Burnison added. “And we are seeing that in our business in China as well. The other thing that’s out there that nobody talks about is Brexit, which is happening slowly and it’s not going to be resolved by Halloween.”
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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2 big US coal companies combine Wyoming, Colorado operations
Two of the world's largest coal producers have announced they will combine mining operations in Wyoming and Colorado in an attempt to improve their competitiveness against natural gas and renewable energy sources. Arch Coal and Peabody Energy are based in St. Louis and announced the joint venture on Wednesday. It will be 66.5% owned by Peabody and 33.5% owned by Arch. The companies say the deal requiring approval from regulators could save about $120 million annually in mostly operational costs over 10 years. The plan involves the North Antelope Rochelle, Black Thunder, Caballo, Rawhide and Coal Creek mines in Wyoming and the West Elk and Twentymile mines in Colorado. The mines employed about 3,300 workers in 2018. The companies gave no guidance on future employment levels. View comments |
One Thing To Remember About The Origin Agritech Limited (NASDAQ:SEED) Share Price
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If you own shares in Origin Agritech Limited (NASDAQ:SEED) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. In finance, Beta is a measure of volatility. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. 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 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 below one is either less volatile than the market, or more volatile but not corellated with the overall market. In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.
Check out our latest analysis for Origin Agritech
Looking at the last five years, Origin Agritech has a beta of 0.81. The fact that this is well below 1 indicates that its share price movements haven't historically been very sensitive to overall market volatility. This suggests that including it in your portfolio will reduce volatility arising from broader market movements, assuming your portfolio's weighted average beta is higher than 0.81. Share price volatility is well worth considering, but most long term investors consider the history of revenue and earnings growth to be more important. Take a look at how Origin Agritech fares in that regard, below.
With a market capitalisation of US$18m, Origin Agritech is a very small company by global standards. It is quite likely to be unknown to most investors. Companies with market capitalisations around this size often show poor correlation with the broader market because market volatility is overshadowed by company specific events, or other factors. It's worth checking to see how often shares are traded, because very small companies with very low beta values are often only thinly traded.
One potential advantage of owning low beta stocks like Origin Agritech is that your overall portfolio won't be too sensitive to overall market movements. However, this can be a blessing or a curse, depending on what's happening in the broader market. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as Origin Agritech’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Financial Health: Are SEED’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here.
2. Past Track Record: Has SEED 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 SEED's historicalsfor more clarity.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Could The Green River Gold Corp. (CNSX:CCR) Ownership Structure Tell Us Something Useful?
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The big shareholder groups in Green River Gold Corp. (CNSX:CCR) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.
Green River Gold is not a large company by global standards. It has a market capitalization of CA$965k, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions don't own shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about CCR.
See our latest analysis for Green River Gold
Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.
There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to fund under management, so the institition does not bother to look closely at the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Green River Gold might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.
Hedge funds don't have many shares in Green River Gold. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Shareholders would probably be interested to learn that insiders own shares in Green River Gold Corp.. It has a market capitalization of just CA$965k, and insiders have CA$60k worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board, though I generally prefer to see bigger insider holdings. But it might be worth checkingif those insiders have been selling.
The general public, mostly retail investors, hold a substantial 87% stake in CCR, suggesting it is a fairly popular stock. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.
With a stake of 7.3%, private equity firms could influence the CCR board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
I always like to check for ahistory of revenue growth. You can too, by accessing this free chart ofhistoric revenue and earnings in thisdetailed graph.
Of 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. |
Hancock Jaffe Primary Investigator Dr. Jorge Hernando Ulloa to Present VenoValve Report at the Venous Summit at the C3 Global Conference
VenoValve Presentation on June 23, 2019 in Orlando, Florida
IRVINE, CA / ACCESSWIRE / June 19, 2019/ Hancock Jaffe Laboratories, Inc.(NASDAQ: HJLI, HJLIW), a developer of medical devices that restore cardiac and vascular health, announced today that Dr. Jorge Hernando Ulloa, HJLI's Primary Investigator for its first-in-human VenoValve study in Bogota, Colombia, will report on initial VenoValve data at the 2019 Venous Summit at the 15th annual C3 Global Conference on Sunday June 23, 2019 at the Hilton Bonnet Creek, in Orlando, Florida.
The C3 Conference draws over one thousand attendees and has been specifically designed for physicians who specialize in interventional cardiology, vascular surgery, and interventional radiology, as well as fellows, residents, and other healthcare professionals interested in atherosclerotic cardiovascular disease. The Venous Summit is a two (2) day course within the C3 Conference focusing on venous disease starting from Superficial Venous Disease, Pulmonary Embolism Treatment, DVT, Venous CTO & New Venous Stents.
Dr. Marc H. Glickman, Hancock Jaffe's Senior Vice President and Chief Medical Officer stated, "We are pleased to have this opportunity to introduce the VenoValve and present our initial VenoValve data to attendees of the C3 conference. The VenoValve is generating world-wide interest and the more clinicians that hear about our success, the better the prospects for the commercial success of the product."
Dr. Jorge Hernando Ulloa, the Primary Investigator for the VenoValve first-in-human trial stated, "We are receiving inquiries from all over the world to talk about the VenoValve as word of our early success is spreading throughout the vascular community. We will continue to present at select conferences and will seek to publish our data at the appropriate time."
The VenoValve is a bioprosthetic replacement for damaged native valves in the deep veins of the leg. Hancock Jaffe recently announced very positive initial data from its first-in-human, VenoValve study in Bogota, Colombia. Four out of the first five VenoValve recipients have experienced significant reductions in reflux, the main cause of severe chronic venous insufficiency ("CVI") of the deep vein system. Deep venous CVI afflicts approximately 2.6 million people in the U.S. and there are currently no FDA approved treatments for the disease. Hancock Jaffe's second lead product, the CoreoGraft, is a bioprosthetic graft for heart bypass surgeries, that is currently undergoing an animal feasibility study. Initial results from the CoreoGraft study are expected to be released at the end of this month.
About Hancock Jaffe Laboratories, Inc.
Hancock Jaffe Laboratories (HJLI) specializes in developing and manufacturing bioprosthetic (tissue based) medical devices to establish improved standards of care for treating cardiac and vascular diseases. Hancock Jaffe currently has two lead product candidates: the VenoValve®, a porcine based valve which is intended to be surgically implanted in the deep venous system of the leg to treat reflux associated with Chronic Venous Insufficiency; and the CoreoGraft®, a bovine tissue based off the shelf conduit intended to be used for coronary artery bypass surgery. Hancock Jaffe has a 20-year history of developing and producing FDA approved medical devices that sustain or support life. The current management team at Hancock Jaffe has been associated with over 80 FDA or CE marked medical devices. For more information, please visitHancockJaffe.com.
Cautionary Note on Forward-Looking Statements
This press release and any statements of stockholders, directors, employees, representatives and partners of Hancock Jaffe Laboratories, Inc. (the "Company") related thereto contain, or may contain, among other things, certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve significant risks and uncertainties. Such statements may include, without limitation, statements identified by words such as "projects," "may," "will," "could," "would," "should," "believes," "expects," "anticipates," "estimates," "intends," "plans," "potential" or similar expressions. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties, including those detailed in the Company's filings with the Securities and Exchange Commission. Actual results (including, without limitation, the performance of the new board members described herein) may differ significantly from those set forth or implied in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company's control). The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future presentations or otherwise, except as required by applicable law.
HJLI Press Contacts:
Amy CarmerTel: 949-261-2900Email:ACarmer@Hancock Jaffe.com
Media & Investor Relations Contact:
MZ North AmericaChris TysonManaging Director(949) 491-8235HJLI@mzgroup.uswww.mzgroup.us
SOURCE:Hancock Jaffe Laboratories, Inc.
View source version on accesswire.com:https://www.accesswire.com/549264/Hancock-Jaffe-Primary-Investigator-Dr-Jorge-Hernando-Ulloa-to-Present-VenoValve-Report-at-the-Venous-Summit-at-the-C3-Global-Conference |
Macro Enterprises Inc. Reports on Approval of the Trans Mountain Expansion Project and Engagement of Renmark Financial Communications Inc.
Fort St. John, British Columbia--(Newsfile Corp. - June 19, 2019) - MACRO ENTERPRISES INC. (TSXV: MCR) (" Macro " or the " Company ") is pleased to report the following: Trans Mountain Expansion Project The Government of Canada has announced its approval of the Trans Mountain pipeline expansion project, a crucial next step for the much-delayed pipeline project designed to carry oil from Alberta to British Columbia. The federal cabinet has affirmed the National Energy Board's conclusion that the project is in the national interest, and could contribute tens of billions of dollars to the economy and, create and sustain thousands of jobs. Engagement of Renmark Financial In addition, Macro has retained the services of Renmark Financial Communications Inc. to handle its investor relations activities. In consideration of the services to be provided, the monthly fees incurred by Macro Enterprises Inc. will be a cash consideration of up to $8,000 CDN, starting June 1st, 2019 for a period of six months ending on November 30th, 2019 and monthly thereafter. Renmark Financial Communications does not have any interest, directly or indirectly, in Macro Enterprises Inc. or its securities, or any right or intent to acquire such an interest. The Company Macro's core business is providing pipeline and facilities construction and maintenance services to major companies in the oil and gas industry in northeastern B.C. and northwestern Alberta. The Company's corporate office is in Fort St. John, British Columbia. Its shares are listed on the TSX Venture Exchange under the symbol MCR. Information on the Company's principal operations can be found on the Company's website at www.macroindustries.ca For further information please contact: Frank Miles President & Chief Executive Officer Tel: (250) 785-0033 frank@macroindustries.ca Jeff Redmond Chief Financial Officer Tel: (250) 785-0033 JRedmond@macroindustries.ca Renmark Financial Communications Inc. Bettina Filippone: bfilippone@renmarkfinancial.com Tel: (416) 644-2020 or (514) 939-3989 www.renmarkfinancial.com Story continues Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Corporate Logo To view the source version of this press release, please visit https://www.newsfilecorp.com/release/45740 |
All You Need To Know About Steven Madden, Ltd.'s (NASDAQ:SHOO) Financial Health
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Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as Steven Madden, Ltd. (NASDAQ:SHOO) with a market-capitalization of US$2.8b, rarely draw their attention. While they are less talked about as an investment category, mid-cap risk-adjusted returns have generally been better than more commonly focused stocks that fall into the small- or large-cap categories. This article will examine SHOO’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourselfinto SHOO here.
Check out our latest analysis for Steven Madden
A debt-to-equity ratio threshold varies depending on what industry the company operates, since some requires more debt financing than others. As a rule of thumb, a financially healthy mid-cap should have a ratio less than 40%. For SHOO, the debt-to-equity ratio is zero, meaning that the company has no debt. It has been operating its business with zero debt and utilising only its equity capital. Investors' risk associated with debt is virtually non-existent with SHOO, and the company has plenty of headroom and ability to raise debt should it need to in the future.
Given zero long-term debt on its balance sheet, Steven Madden has no solvency issues, which is used to describe the company’s ability to meet its long-term obligations. But another important aspect of financial health is liquidity: the company’s ability to meet short-term obligations, including payments to suppliers and employees. At the current liabilities level of US$204m, it seems that the business has been able to meet these obligations given the level of current assets of US$661m, with a current ratio of 3.24x. The current ratio is the number you get when you divide current assets by current liabilities. However, many consider a ratio above 3x to be high, although this is not necessarily a bad thing.
SHOO has zero-debt as well as ample cash to cover its near-term liabilities. Its safe operations reduces risk for the company and its investors, though, some degree of debt could also boost earnings growth and operational efficiency. I admit this is a fairly basic analysis for SHOO's financial health. Other important fundamentals need to be considered alongside. I suggest you continue to research Steven Madden to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for SHOO’s future growth? Take a look at ourfree research report of analyst consensusfor SHOO’s outlook.
2. Valuation: What is SHOO 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 SHOO 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. |
Chick-Fil-A Is Really About To Pass Starbucks As The Second Largest Chain In The Country
Photo credit: Chick-fil-A / Facebook From Delish Despite backlash following Chick-fil-A's continued anti-LGBTQ controversies , Americans can't stay away from those beloved chicken nugs . Even now, while still embroiled in scandal , the brand is on track to surpass Starbucks as the second largest restaurant chain in the U.S. Monday's National Restaurant News (NRN) analysis ranked the fan-fav fast food joint at number three, behind both Starbucks and McDonalds. ICYMI, that's a huge jump. Last year, Chick-fil-A was seventh in line. The whole ranking system is based on sales. According to the site, Micky D's scored a whopping $38+ billion while Sbux had more than $20 billion in total sales. Chick-fil-A's $10.5 billion places them ahead Burger King, Taco Bell, Wendy's, and Subway, b ut it looks like they just might swipe that coveted number two slot from their coffee giant rival. The company reported 16.7 percent sales growth in 2018, and though scandal has seemingly muddled its reputation, it hasn't slowed business. Experts are predicting an overthrow. "Can they reach $30 billion? I think that's also a realistic goal if you give them enough time," Mark Kalinowsi of Kalinowski Equity Research told Business Insider : "And that should put them ahead of Starbucks." View this post on Instagram Don't your ears perk up when you hear: "We're going to Chick-fil-A!" Photo Credit: @VeroChicky on Twitter. A post shared by Chick-fil-A, Inc. (@chickfila) on Jun 19, 2019 at 8:31am PDT But how exactly has Chick-fil-A remained on that fast track? Constant expansion. "They're severely under-penetrated," Kalinowski continued. "Once you start looking at all these other big metropolitan areas in all these states, there's room for growth for, not just years and years to come but potentially decades to come." @ Starbs, I'd be shaking in my boots if I were you. ('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 |
Why This Airline CEO Just Bought 200 Boeing 737 MAX Planes—Despite Recent Issues
So much for the 737 MAX hangover. After a quiet Day 1 at the Paris Air Show, Boeing announced a trio of deals Wednesday that stunned the aviation sector. The aircraft manufacturer has new orders lined up from airline customers on three continents for its widebody 787 Dreamliner and its beleaguered narrowbody 737 MAX. The deal haul carries a potential value of $31.8 billion if you go by list prices. (There are always discounts). Analysts had been voicing concern about the poor early showing for Boeing at the biennial show, the most prestigious in the industry, chalking up the slow deal flow to the woes of its workhorse model, the 737 MAX. On the eve of the show, CEO Dennis Muilenburg told the press Boeing had no timetable for the 737 MAX to take to the skies again. The global fleet of roughly 400 has been grounded since the fatal March crash of Ethiopian Airlines Flight 302. The announcement of yesterday’s deal with International Airlines Group couldn’t have come at a more opportune moment. IAG, the sixth largest airline group in the world with carriers such as Aer Lingus, British Airways, Iberia and Vueling, signed a letter of intent to buy 200 737 MAX planes, carrying a list price of $24 billion. Boeing shares skyrocketed more than 5 percent on Tuesday. At a press conference, IAG CEO Willie Walsh, shrugged off the plane’s uncertain future. “We’re partnering with the Boeing brand,” he said. “That’s the brand that I’m doing business with. That’s the brand that I’ve worked with for years. And it’s a brand that I trust.��� Sitting beside him, Kevin McAllister, CEO of Boeing Commercial Airplanes, looked as if he wanted to hug Walsh. “We can’t thank you enough for the confidence you place in the 737 MAX family, and in all of us,” he replied, beaming. Industry observers point out that it’s a fairly safe hedge for IAG as deliveries aren’t planned until 2023 and 2027, which should give Boeing plenty of time to work through the flight trials and inspections regulators around the world are demanding. Boeing also announced separate deals with Korean Air and Air Lease Corporation on the delivery of 787 Dreamliners worth a combined $7.8 billion at list price. Story continues Boeing rival Airbus stole the show on Day 1 when it said Air Lease Corp. had ordered 27 of its new longer-range, narrow-body model, the A321XLR. While the price tag was less of an eye-catcher, that deal may be the most significant commercial aviation news of the Paris Air Show. There’s huge global demand for narrow-body, long-range aircrafts like A321XLR. The new Airbus model has a range of 4,700 nautical miles with 30% less fuel-burn per seat, an important industry metric. This morning, Airbus added Australia’s Qantas to its customer list for the new long-distance aircraft. Qantas and Airbus announced a deal for 10 new A321XLR models, part of a 36-plane deal. Airbus’s shares took a nice jump on Monday as news came in from Le Bourget air field, north of Paris. The stock was down this morning. Analysts, meanwhile, are still hoping to hear more about Boeing’s answer to the A321XLR. More must-read stories from Fortune : —A red flag to investors: The stock market may be hitting the “triple top” —The Renault deal is dead , but Fiat Chrysler still needs a partner —Many economists think the next recession will be before the 2020 election —The S&P 500 has performed far worse under Trump than Obama —Listen to our new audio briefing, Fortune 500 Daily Don’t miss the daily Term Sheet , Fortune ‘s newsletter on deals and dealmakers. |
Chinese Tech Moguls Cite Regulation as Chief Crypto Concern
ByCCN Markets: The China Ledger quoted Pony Ma (Ma Huateng) as saying that blockchain technology is mature, but regulation needs to allow for it. Binance CEO Changepeng Zhao took the opportunity to expand on the idea including the government’s role in crypto.
Zhao believes that governments should encourage their tech giants to build crypto tokens and that blockchain should be embraced.
Dealing with regulatory uncertainty in many countries, numerous companies have fled to jurisdictions like Bermuda, the Bahamas, Malta, and Estonia to establish their global brand.
Read the full story on CCN.com. |
Subscription services make life easier, but costs can add up
Sure it's nice to have your groceries delivered now and then. Ditto dinner. Want to stream your favorite movies? Why not. Curated clothes and books sent to your home? Yes please. But too much convenience can cost you. "It's very easy for consumers to lose track of what they are purchasing," said Kate Ryan, a director with TIAA Financial Solutions. There has been a proliferation of subscription services in recent years. Throw in auto-billing and the ease of mobile payments, and you can see how some expenses can fall under a consumer's radar. About 15% of online shoppers have signed up for one or more subscriptions to receive products on a recurring basis, according to a study released last year by McKinsey & Co. More than half of U.S. consumers streamed video content via subscription last year, according to NPD Group. And nearly 2 billion foodservice deliveries took place for the year that ended in March, according to NPD. Here are a few tips on how to get a grip on it all. DO AN AUDIT If you aren't already tracking your spending, do so. Pay close attention to all the payments you make — recurring or not — and to the forms of payment: credit cards, Venmo, etc. Don't guess. Research by Waterstone Management Group found that 84% of consumers underestimate how much they spend on subscriptions. Waterstone looked at 2,500 American budgets and found that while consumers estimated they paid almost $80 a month on certain subscriptions, they actually paid closer to $240. Subscription services are attractive because they're easy to sign up for and come with minimal monthly financial commitment, said researcher Dhaval Moogimane. But small costs can add up, and prices can increase over time. "I've never worked with someone who after we calculated their expenses is spending less than they thought," said Ryan. However, she said that sticker shock can often be a good call to action. CONSIDER THE VALUE Story continues It's time to decide if all these costs are worth it. This is a highly personal decision. Grant McOmie of Portland, Oregon said that he and his wife began to cut back last year to focus on paying down student loans. They decided ridesharing didn't have a spot in their aggressive budget and they ditched Amazon Prime, Netflix and various music streaming services as well. "Ultimately none of these services were worth it," he said. He estimates that over the past 18 months — through taking the bus instead of Lyft or Uber, or making a meal instead of ordering delivery — they've saved around $5,000. In some cases, however, convenience can pay off. Sarah McLaughlin moved to Austin about a year ago and has yet to set foot inside a grocery store. She relies primarily on Instacart for her groceries and estimates she's cut her monthly grocery spending by $200 by curtailing her impulse spending. Instead of picking up extras like magazines, makeup and prepared meals, she buys only what is on her list and is able to use online coupons to maximize her savings. So calculate what your convenience spending may be a substitute for and which is more costly — Stitchfix versus shopping at the mall, for example; or Hulu and Netflix versus cable. Consider other benefits too: A time-starved parent may be thrilled to pay extra for food delivery. A pricey at-home workout subscription might be worth it to a fitness junkie. While these types of services sometimes get a bad rap, experts say many people are happy with the benefits they get. So how can you decide the value (financial and otherwise) for yourself? Utpal Dholakia, a professor of marketing at Rice University, has a simple suggestion. Ask yourself: If I didn't have this service today, would I buy it again? If no, toss it. If yes, keep it and enjoy. Still not sure? Then consider whether you would pay cash each time these charges occurred. There's plenty of research to show that a consumer is likely to spend more if they use a credit card, versus the inconvenience that comes with paying cash. Companies have made paying for these services and products nearly frictionless. So ask yourself whether you would hand over $50 cash for that last Uber ride or peel off a Ben Franklin every month for barre classes and see how that feels. MAKE CHANGE There are some actions you can consider to adjust your habits: — If you know you are ready to ditch something, unsubscribe or delete your account. Be prepared — they will try to lure you back. — Add some friction. Even small steps to make payments less easy may curb your spending, such as eliminating auto billing or deleting an app on your phone. — Put all your subscription or convenience spending on one card to better monitor it, Moogimane suggests. Or try his more draconian suggestion: Cancel your credit card, forcing you to only update billing for the services you truly want. — Set an alternative goal. If there is something you want, such as money for a car or a down payment on a house, remember that when you are tempted to make a purchase. That can help keep your spending focused. — Go on vacation or do something else to disrupt your life. Dholakia says research shows the best way to break a habit is to change the context in which the habit was developed. So if you get meal kits each week, a vacation may change your routines and help shake your reliance on them. In the end, it all comes down to you. "You have to be in charge of saying this is something I am not enjoying or using," Dholakia said. "You can't have someone else do it for you." __ Do you use services such as music streaming, grocery delivery and ride-hailing? And do you have a plan for managing the costs of those services? Email your responses to apmoney@ap.org and AP could use them for future stories. |
GSK kicks off sale of $1.2 billion consumer health drugs: sources
By Pamela Barbaglia and Ludwig Burger
LONDON (Reuters) - GlaxoSmithKline (GSK) has kicked off the sale of some consumer health brands as it seeks to raise about 1 billion pounds ($1.26 billion) before pressing ahead with a spinoff of its consumer healthcare business, sources told Reuters.
The drugmaker has bundled the non-core drugs into three different portfolios and has hired boutique investment bank Greenhill to market the products to separate bidders, said three sources familiar with the matter, speaking on condition of anonymity.
Information packages for two portfolios consisting of Latin American drugs and Physiogel skin care products were sent out to prospective bidders earlier this week, the sources said.
The sale of a third portfolio of European drugs will kick off after the summer, with a much higher price tag attached due to strong interest from private equity investors, they said.
GSK declined to comment.
GSK is streamlining its product offering as it prepares to fold its consumer business into a joint venture with Pfizer in the second half of this year, creating a market leader that will primarily look to the United States and China for growth.
The FTSE 100 drugs maker said that within three years of closing the Pfizer deal it wanted to demerge and float the consumer health business.
If successful, GSK will split into two distinct businesses: one focused on consumer, the other on pharmaceuticals and vaccines.
GSK, whose consumer brands include Sensodyne, has secured a controlling stake in the Pfizer partnership of 68%, with the U.S. drug giant holding the balance.
When the Pfizer joint venture was unveiled, GSK said it was targeting net divestment proceeds of about 1 billion pounds over the 2019-2020 period.
One of the sources said the three portfolios which are up for sale have combined revenues of 200 million-300 million pounds, with the European portfolio representing about 40 percent of the combined sales.
Private equity funds including Advent - which bought generic drug firm Zentiva last year - are expected to bid for the European assets, the sources said.
Other prospective bidders may include CVC Capital Partners, which backs Italian drug firm Recordati, the sources said, along with a consortium of Bain Capital and Cinven, which control Germany's Stada, the owner of UK consumer products maker Thornton & Ross.
On June 7 Stada said it would buy a smaller portfolio of six, mainly Britain-focused brands from GSK to bolster its presence in Europe.
Another source said the Latin American portfolio, which has a strong presence in countries like Mexico and Argentina with revenues of about 90 million pounds, is expected to be sold to local industry players.
The Physiogel portfolio may draw interest from Asian companies as it consists of GSK's branded skincare products which have a strong presence across Asia in countries including South Korea, China, Malaysia and Thailand.
($1 = 0.7914 pounds)
(Reporting by Pamela Barbaglia and Ludwig Burger; additional reporting by Arno Schuetze; Editing by Susan Fenton) |
Mark Hamill nominates Carrie Fisher to replace Donald Trump on Hollywood Walk of Fame
It’s been almost one year since the West Hollywood City Council voted to approve a proposal calling for the removal of Donald Trump’s star from the Hollywood Walk of Fame back in August 2018. And although it hasn’t yet happened, people on Twitter are banding together to suggest that another celebrity take the president’s place — Carrie Fisher . The trending hashtag #AStarForCarrie was born on Wednesday morning when Fisher’s “ Star Wars ” co-star Mark Hamill addressed last year’s city council vote and suggested she’d be a perfect permanent addition to the famed walk. People on Twitter are suggesting that Donald Trump's Walk of Fame star gets replaced with one for Carrie Fisher. (Photo: Getty Images) Good riddance! (and I know just who should replace him....) #AStarForCarrie ⭐️ https://t.co/DF53fOxshK — Mark Hamill (@HamillHimself) June 19, 2019 “Good riddance!” the actor wrote . “I know just who should replace him.” Hours later, tens of thousands of people have joined in support, noting that there’s “no one more deserving” than Fisher. I can think of no one more deserving than one of the stars of Hollywood’s First Franchise and one of its all time best script doctors. She was a gift. #AStarForCarrie — Tresspassers William (@TheAmazingMcWil) June 19, 2019 She deserves an entire galaxy of stars....💞💞 — Flying Lizards (@flyinglizards) June 19, 2019 A. That's gonna hurt and B. I'm stunned that Carrie Fisher doesn't have a star already. — Sanjeev Bhaskar (@TVSanjeev) June 19, 2019 Never understood why #DumpTrump had a star in the first place!! He has had a few cameos, as himself, and nowhere near displaying star status!! 😖 #AStarForCarrie — Elizabeth McRoberts (@Gisen27) June 19, 2019 Somebody even deemed the viral discussion its own kind of “Star Wars.” Story continues All this talk about a star... are we really going to turn this into some sort of... Star Wars? Okay, now that this terrible pun is out of my system, where do I sign to give Carrie her star? #AStarForCarrie — Gorthian Hellwind (@Aquila009) June 19, 2019 The Hollywood Walk of Fame hasn’t publicly responded to the pleas and didn’t immediately reply to Yahoo Lifestyle’s request for comment. However, it might just be time to remove the president’s star after it has been destroyed multiple times . Read more from Yahoo Entertainment: Bette Midler writes anti-Trump poem: 'There once was a girl from Slovenia' Kathy Griffin pens tribute post to Gloria Vanderbilt despite falling out with Anderson Cooper Kevin Sorbo goes off on Democratic party over abortion, immigration: 'Build the wall' Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle's newsletter. |
These Fundamentals Make Continental Building Products, Inc. (NYSE:CBPX) Truly Worth Looking At
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I've been keeping an eye on Continental Building Products, Inc. (NYSE:CBPX) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe CBPX has a lot to offer. Basically, it is a financially-robust company with a a great track record of performance, trading at a great value. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at thereport on Continental Building Products here.
CBPX delivered a satisfying double-digit returns of 23% in the most recent year Unsurprisingly, CBPX surpassed the Building industry return of 14%, which gives us more confidence of the company's capacity to drive earnings going forward. CBPX's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that CBPX has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. CBPX seems to have put its debt to good use, generating operating cash levels of 0.49x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
CBPX's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if CBPX's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, CBPX's share price is trading below the group's average. This bolsters the proposition that CBPX's price is currently discounted.
For Continental Building Products, I've compiled three pertinent factors you should further research:
1. Future Outlook: What are well-informed industry analysts predicting for CBPX’s future growth? Take a look at ourfree research report of analyst consensusfor CBPX’s outlook.
2. Dividend Income vs Capital Gains: Does CBPX return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Ourhistorical dividend yield visualizationquickly tells you what your can expect from CBPX as an investment.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of CBPX? 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. |
Survey: Owners having problems with driver-assist systems
DETROIT (AP) — As auto companies continue to fix buggy touch-screen infotainment systems, a survey of new-vehicle buyers has found there's a different technology posing problems: driver assist systems such as automatic emergency braking.
The annual survey by J.D. Power found that as the electronic safety systems find their way into more mainstream models, buyers are reporting more issues in their first three months of ownership. The problems are more than just a pain for new-vehicle owners. They affect systems that are "critical for building consumer trust in future automated vehicles," said Dave Sargent, J.D. Power's vice president of global automotive.
Overall, the number of problems reported by owners held steady from last year at a record-low 93 per 100 vehicles. The survey also found that Korean brands Genesis, Kia and Hyundai claimed the top three spots for the second year in a row, and the gap between them and the rest of the field is growing.
Ford, Lincoln, Chevrolet, Nissan, Dodge, Lexus and Toyota rounded out the top 10. Jaguar had the most problems followed by Land Rover, Mitsubishi, Alfa Romeo, Volvo, Volkswagen, Subaru, Chrysler, Acura and Mini, the survey found.
U.S.-based brands generally were close to or better than the industry average, while European brands performed below average due to problems with infotainment systems and other electronics.
The Korean brands have been plagued by a series of recalls and service campaigns to fix engine failures and potential fire problems, but that didn't show in the survey.
Sargent said J.D. Power has not found a correlation between recalls and perception of quality. "The vast majority of consumers whose car has been recalled has never had the problem show up in their vehicle," he said. "Instead, their vehicle has been recalled and the problem has been fixed before it ever manifests itself."
Traditional problems such as paint imperfections, brake and suspension noises, engines not starting and illumination of the "check engine" light are starting to creep back into the survey, J.D. Power found.
Genesis, Hyundai's luxury brand, had only 63 problems per 100 vehicles, while Kia had 70 and Hyundai had 71, according to the survey. Jaguar had 130 problems. Land Rover was most improved, shedding 37 problems from last year to hit a still-high 123.
Of the eight categories measured in the survey, infotainment was the most improved, but still caused the most problems. Owners reported fewer issues with Bluetooth connections and voice recognition.
Vehicle quality has been improving since 2014 when the survey turned up 116 problems per 100 vehicles. Quality was worst in 1998, when problems per 100 vehicles peaked at 176, according to the survey.
The 33rd-annual survey questioned 76,256 owners of 2019 model year vehicles from February through May about the problems they had in the first 90 days of ownership. |
MetLife’s LumenLab Using Blockchain to Automate Life Insurance Claims
MetLife subsidiary LumenLab is usingblockchaintechnology to automate lifeinsuranceclaims, according to a news releasepublishedon June 17.
Known as “Lifechain,” the collaboration withSingaporePress Holdings and NTUC Income will enable bereaved families who place obituaries in a local newspaper to instantly trigger searches to see whether their loved one had a life insurance policy.
This month, 1,000 Income policyholders will be randomly selected to take part in a pilot scheme.
The technology works by submitting the deceased’s National Registration Identity Card to Lifechain as hashed data once consent from the family has been obtained. Families are notified within one business day when a matching policy is found, and a notification is automatically sent to the insurer so the claims process can commence.
Julian Tan, the chief of digital business at Singapore Press Holdings (SPH,) said:
“SPH hopes to expand Lifechain to include more insurers in time to come to bring greater convenience to family members attending to the deceased’s administrative matters securely.”
Insurance companies are increasingly turning to blockchain technology. Earlier this week, tech firm BlockClaimreceived$627,000 in funding for a platform that uses blockchain to automate car insurance claims.
Meanwhile,Britishinsurance agency Legal & Generalrecentlyannounced it has teamed up withAmazonto create a blockchain system for managing pension deals.
At theSynchronize Europeconference inLondonon June 18, attended by a Cointelegraph correspondent,Accenturemanaging director Sarah Hazzledine said there were “huge opportunities for digitization” in the paper-based sector. She also confirmed that the global accounting giant is part of an insurance consortium building a distributed ledger (DLT) platform with two use cases that are scheduled to launch within the next six to 12 months.
• Insurtech Platform to Apply Blockchain to Auto Claims With New Funding
• Legal & General Partners With Amazon to Use Blockchain for Pension Deals
• IBM’s Blockchain Division Largely Unscathed After Layoffs of 1,700: Report
• KuCoin Lists Binance Coin, Supports Binance Chain Projects |
What Type Of Shareholder Owns Sientra, Inc.'s (NASDAQ:SIEN)?
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If you want to know who really controls Sientra, Inc. (NASDAQ:SIEN), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that used to be publicly owned tend to have lower insider ownership.
Sientra is a smaller company with a market capitalization of US$336m, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholder can tell us about SIEN.
Check out our latest analysis for Sientra
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
We can see that Sientra does have institutional investors; and they hold 42% of the stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Sientra, (below). Of course, keep in mind that there are other factors to consider, too.
It would appear that 5.5% of Sientra shares are controlled by hedge funds. 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
I can report that insiders do own shares in Sientra, Inc.. As individuals, the insiders collectively own US$5.7m worth of the US$336m company. It is good to see some investment by insiders, but it might be worth checkingif those insiders have been buying.
The general public holds a 45% stake in SIEN. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
With a stake of 5.5%, private equity firms could influence the SIEN board. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow.
But ultimatelyit is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look atthis free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Watchdogs issue warning about NASA’s SLS moon rocket plan, but Boeing CEO stays the course
An artist’s conception shows NASA’s Space Launch System in flight. (NASA Illustration) The federal government’s watchdog agency says getting NASA’s heavy-lift Space Launch System rocket off the ground is likely to take longer and cost more than the space agency says it will. Any issues that crop up in the months ahead could push the first uncrewed SLS launch, known as Artemis 1, from its planned mid-2020 timetable to mid-2021, the Government Accountability Office said in a study issued today . What’s more, the GAO says NASA has been shifting costs forward to make it look as if expenses for the first launch have grown by $1 billion, when the actual adjusted cost growth is $1.8 billion. Schedule and cost issues for SLS are particularly problematic because the rocket has been selected to carry NASA astronauts to the moon by 2024. When Vice President Mike Pence, who heads the White House’s National Space Council, announced the 2024 deadline in March, he issued a veiled warning to the Boeing Co. and other SLS contractors about the consequences of missing the date. “If our current contractors can’t meet this objective, then we’ll find ones who will,” Pence said. “If commercial rockets are the only way to get American astronauts to the moon in the next five years, then commercial rockets it will be,” During a conference held today in Boston at the John F. Kennedy Presidential Library and Museum to mark the 50th anniversary of the Apollo 11 moon mission, Boeing CEO Dennis Muilenburg insisted that SLS was on track for 2020. “First launch is next year,” he said. “We’re looking forward to making that happen.” Muilenburg acknowledged that “the technology challenges are very significant.” “The first rocket is now about 80% assembled, and we’re going through the detailed system integration,” he said. “These are very complex, sophisticated machines, so the technology itself is a challenge. I think it’s manageable. It’s work we know how to do. But it’s tough, challenging work, and we have to do it in a way that ensures safety in the end.” Story continues Muilenburg said having consistent political and funding support for such a big space project was at least as challenging. “We’ve seen that to date on the Space Launch System,” he said. “If we’re going to get back to the moon by 2024, we can do that, but we can’t if we don’t have stable, consistent support and funding. So the political and funding side of this, I would say, is actually the greater risk.” In its report, the GAO noted that between 2014 and 2018, NASA paid more than $200 million in award fees relating to contractor performance on the SLS stages and the Orion deep-space crew capsule. “But the programs continue to fall behind schedule and overrun costs,” the GAO said. “Ongoing contract negotiations with Boeing for the SLS and Lockheed Martin for the Orion program provide NASA an opportunity to re-evaluate its strategy to incentivize contractors to obtain better outcomes.” In its response to the study, NASA said it agreed with the recommendation to re-evaluate how it paid out incentives to Boeing and other contractors. NASA is gradually moving away from a “cost plus” model and favoring a model that specifies a fixed price and development milestones for space projects. That’s the way its contracts with SpaceX and Northrop Grumman for cargo resupply missions to the International Space Station are structured, for example. Muilenburg discussed other space issues as well: Boeing is shifting the headquarters of its Space and Launch division from Arlington, Va., to Titusville, Fla., not far from NASA’s Kennedy Space Center. Muilenburg said the move made sense not only because of SLS activities, but also because of Boeing’s work on its CST-100 Starliner space taxi, X-37B and Phantom Express space planes, as well as its role as the prime contractor for the International Space Station. Muilenburg noted that the Starliner is due to have its first uncrewed launch to the space station this summer, with the first crewed flight currently set for the end of this year . Boeing test pilot Chris Ferguson is due to fly on the inaugural crewed mission, and would become the first American commercial space pilot to go into orbit. Starliner could take on half a dozen missions a year, Muilenburg said. “So what we need is more destinations” in addition to the International Space Station, he said. Last month, Boeing and other commercial ventures laid out concepts for putting new outposts in low Earth orbit . “As we have more destinations come online — space factories, space hotels — that’ll add to it,” Muilenburg said. Another possibility is to take tourists on a short spaceflight and then bring them back to where they started. “You’re going to do a space tour, to do three orbits around the world, right?” Muilenburg said. “That could be an exciting afternoon activity. You say, ‘Let’s go down to Kennedy, do a few orbits, come back and have lunch.’ That’ll happen.” More from GeekWire: NASA watchdogs blame SLS rocket snags on Boeing missteps and poor oversight NASA fires shuttle rocket engine to the max during test for Space Launch System NASA considers shifting a key test flight beyond the moon to commercial rockets VP Mike Pence sets 5-year deadline for landing Americans at moon’s south pole |
Buy on the Dip Prospects: June 19 Edition
Below is a look at ETFs that currently offer attractive buying opportunities.
The ETFs included in this list are rated as buy candidates for two reasons. First, each of these funds is deemed to be in an uptrend based on the fact that its 50-day moving average is above its 200-day moving average, which are popular indicators for gauging long-term and medium-term trends, respectively.
Second, each of these ETFs is also trading below its five-day moving average, thereby offering a near-term ‘buy on the dip’ opportunity, given the longer-term uptrend at hand. Note that this prospects list also features a liquidity screen by excluding ETFs with average trading volumes below the one million shares mark. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques.
To get access to all ETFdb.com premium content, sign up for afree 14-day trial to ETFdb.com Pro.
Only two ETFs made it to the list of buy on the dip prospects this month. The three major U.S. indices moved higher during this month. iShares Floating Rate Bond ETF (FLOTB+) which seeks to track the investment results of an index composed of U.S. dollar-denominated, floating rate bonds (with remaining maturities between one month and five years) featured on the list of buy on the dip prospects this month. Investor sentiment on floating rate bonds has turned positive as floating rate notes are offering higher yields than their fixed-rate counterparts. As bond yields plunge, investors are buying more floating-rate corporate debt. SPDR Bloomberg Barclays Investment Grade Floating Rate ETF (FLRNB) which tracks an index of U.S. dollar-denominated, investment-grade floating rate notes (with remaining maturities between 1 month and 5 years) also ranked amongst the buy on the dip contenders this month. Check out the different Bond ETFs by clicking “here:”https://etfdb.com/etfdb-categories/
To compare this month’s list with the one published on May 22, click "here.”:https://etfdb.com/news/2019/05/22/buy-on-dip-may-22-edition/
[{"Ticker": "(FLOTB+)", "Name": "iShares Floating Rate Bond ETF", "Price": "$50.85", "1-YearReturn": "-0.16%", "Leverage": "Long"}, {"Ticker": "(FLRNB)", "Name": "SPDR Bloomberg Barclays Investment Grade Floating Rate ETF", "Price": "$30.66", "1-YearReturn": "-0.26%", "Leverage": "Long"}]
Please note that this list is updated on a monthly basis.
For more ETF analysis, make sure to sign up for ourfree ETF newsletter.
Disclosure: No positions at time of writing.
Click here to read the original article on ETFdb.com. |
Markets are still getting the Trump trade war wrong
There will be a meeting. The presidents of China and the United States will talk. They’ll both probably say it was a nice chat. But the upcoming confab between Presidents Donald Trump and Xi Jinping is very unlikely to break an impasse on trade between the two countries that is rattling the global economy. Trump and Xi will convene during a gathering of global leaders , called the G20, in Japan on June 28 and 29. This is the first thaw between the two countries since Trump raised tariffs on Chinese imports on May 10, and China retaliated with punitive measures of its own. Stocks rose when Trump announced the meeting with Xi, as if two proud and stubborn autocrats will hash out their differences and fix everything. Some analysts recalled a similar meeting between the two men last November , which led to a delay in threatened tariffs and a temporary respite in trade hostilities. But three things are different this time, which is why hopes for a breakthrough are unrealistic. First, negotiators for the two nations plucked the low-hanging fruit earlier this year, leaving only the thorniest problems to work out. Second, both sides have escalated, leaving less room to maneuver. And third, Trump is now fully embroiled in the 2020 presidential campaign, with politics driving his agenda—something Xi is fully aware of, and likely to exploit. Trump has so far managed to hurt China with tariffs , without wrecking the U.S. economy. But his tariffs are a tax on U.S. consumers and businesses that has caused harm on the margins, with manufacturing activity on the decline and businesses growing reluctant to invest amid trade hostilities. A breakthrough is ‘unlikely’ Trump’s next threatened step —imposing 25% tariffs on $300 billion worth of consumer goods imported from China—could trigger a more serious downturn and possibly a U.S. recession. Will he do it? Probably not all at once. The recent on-and-off tariffs on Mexican imports, which began at 5%, could tip Trump’s hand on China. Ed Mills of Raymond James & Associates predicts that if there’s no breakthrough in the meeting with Xi, there’s a 75% chance Trump will resort to new tariffs on Chinese imports in July. But Mills thinks the tariffs will more likely start at 5% and rise gradually than start at 25% right off the bat. Story continues Chinese President Xi Jinping raises his glass and proposes a toast at the end of his speech during the welcome banquet, after the welcome ceremony of leaders attending the Belt and Road Forum at the Great Hall of the People in Beijing, China, April 26, 2019. Nicolas Asfour/Pool via REUTERS The sticking points between the two countries aren’t likely to be resolved just because the two leaders meet. A trade breakthrough at the meeting is “very unlikely,” says economist Paul Sheard of Harvard’s Kennedy School. “The current trade dispute between the U.S. and China is not amenable to a quick or easy solution. To satisfy the Trump administration would require China to change fundamental aspects of its Party-dominated State-led capitalism model.” The Trump administration for instance, wants China to stop stealing U.S. technology, end subsidies for huge state-owned companies and let U.S. firms operate more freely in China. And it wants China to pass new laws that would formalize such changes. China does cheat on trade, but it is nonetheless unlikely to cave to outside pressure to change the basic nature of its economy. So even a pleasant meeting between Trump and Xi is unlikely to produce much. This means Trump will most likely be in the unenviable position of escalating tariffs and other measures that hurt American business and consumers—while running for reelection. The political timing might even compel Xi to string Trump along and dare him to escalate in the run-up to the 2020 election , perhaps contributing to Trump’s defeat if American voters revolt. Instead of paving the way to a breakthrough, the upcoming Trump-Xi meeting might even cement 2019 as the Year of the Tariff. A trade breakthrough “will be harder to attain than most realize,” Mills of Raymond James wrote recently to clients. “We do not expect China trade risk to be resolved in 2019.” That leaves 2020—or never. Confidential tip line: rickjnewman@yahoo.com . Encrypted communication available. Click here to get Rick’s stories by email . Read more: Meet the 2020 presidential candidates How China could meddle in the 2020 election Elizabeth Warren’s best and worst economic ideas Your paltry savings from the Trump tax cuts Medicare for all won’t work. This might Rick Newman is the author of four books, including “ Rebounders: How Winners Pivot from Setback to Success .” Follow him on Twitter: @rickjnewman Read the latest financial and business news from Yahoo Finance |
Momentum builds for EU leaders to agree carbon neutral 2050 pledge at summit
By Alissa de Carbonnel and Daphne Psaledakis
BRUSSELS, June 19 (Reuters) - A push by Germany, France and other EU nations for the bloc to go carbon neutral by mid-century looks likely to be endorsed by EU leaders on Thursday, despite resistance from eastern European nations worried it could cost jobs.
A majority of the European Union's 28 members have signed up to the lofty target ahead of the two-day summit of EU leaders - hoping to lead by example at this year's U.N. climate talks in September abandoned by U.S. President Donald Trump.
Their support underscores the growing political prominence of the fight against global warming.
Months of youth climate protests and bleak warnings from U.N. scientists helped propel Green parties to their strongest showing yet in May's European Parliament elections.
But opposition remains including from Czech Republic and Poland, whose economies rely on coal. Hesitating states want funding and other assurances that their economies will not suffer from a steeper pace of emissions reductions.
Draft conclusions for the EU leaders' summit were amended late on Wednesday in a last ditch effort to address those concerns.
The EU document, seen by Reuters, calls for the bloc "to determine how to ensure a transition to a climate-neutral EU by 2050."
It adds, however, that such efforts must "preserve European competitiveness, be just and socially balanced, take account of Member States' national circumstances and respect their right to decide on their own energy mix."
An EU diplomat from a nation reluctant to back the 2050 target said that, amid such strong momentum in favour, they did not want to be in the minority blocking it.
An EU-wide endorsement of the mid-century target, backed by the EU's climate chief and European Parliament, would allow the bloc to tighten its nearer-term pledge under the Paris climate accord to limit warming to well below 2 degrees Celsius.
Although the EU is on track to meet its goal of cutting emissions by 40% by 2030, climate campaigners say that is not enough to help avert the most extreme weather, rising sea levels and the loss of plant and animal species.
U.N. Secretary-General Antonio Guterres has called on the bloc to aim for a 55% cut in greenhouse gas emissions by 2030.
'OVERWHELMING MAJORITY'
EU leaders meeting on Thursday could yet convince reluctant members to join the ambitious goal if enough is done to reassure them that "no one is left behind," one EU diplomat said.
"An overwhelming majority of member states are moving in that direction," another senior EU official said. "I hope that the trend continues and we get unanimity."
But discussions could also be pushed back to after the U.N. climate meeting in September.
Even among nations in favour of going carbon neutral by 2050, doubts remain over how to pay for the economic shift to low-carbon technology in big employment sectors such as transport, farming and building and remain competitive.
Germany, mindful of its powerful automotive sector, had long been hesitant.
To achieve net-zero emissions, the world's largest economic bloc would have to invest billion of euros annually in energy infrastructure, alternatives to fossil fuels and measures to absorb carbon dioxide.
It would also likely entail tightening a cap in the EU's Emission Trading System (ETS). (Additional reporting by Gabriela Baczynska; Francesco Guarascio, Jan Strupczewski and Sabine Siebold in Brussels, Michel Rose in Paris, Belen Carreno in Madrid Writing by Alissa de Carbonnel Editing by Alexandra Hudson) |
Beyond Meat Stock Has Finally Lost Its Sizzle
Shares ofBeyond Meat(NASDAQ:BYND) briefly passed the $200 level yesterday before ultimately closing lower on the day. Beyond Meat stock is now up an eye-popping 580% from the IPO price of $25 in early May. While momentum can take stocks well past any semblace of sanity, ultimately valuations do matter. The insane rally in BYND stock has finally come to an end.
Source: Shutterstock
Analysts are seeing Beyond Meat stock price as way too expensive. On June 11, J.P. Morgan analyst Ken Goldmancut his rating on BYNDto neutral from overweight, citing valuation concerns. Since the downgrade, Beyond Meat has actually risen 45 points, or nearly 35%, in the past week.Other firmsare also leery on Beyond Meat stock at these levels with price targets well beyond the latest closing price of $169.89.
Tellimer Research chimed in yesterday with a tweet highlighting just how extreme valuations have become.
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Competition is beginning to mount in the fake meat space as both Tyson and Nestle have made a big push over the past month. This should lead to lower margins and provide a headwind for growth … both definite negatives for Beyond Meat.
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Sky high valuations, as we know, can last longer than expected. This is especially true for heavily shorted, momentum-driven stocks like BYND. Once the momentum is broken, though, reality tends to set in. Yesterday was the day that we finally saw things get real.
BYND stock made a new high and briefly broke above the $200 level yesterday before reversing in a big way to close slightly lower on the day. This type of price action, called a key reversal day, is a reliable indication that the previous trend has come to an end. It is even more powerful given the magnitude of the rally preceding the pullback.
It also smacks of an epic short squeeze, with the shorts forced to capitulate and cover. The Chaikin Oscillator, which is a measure of momentum, has also turned negative.
Click to Enlarge
The combination of ridiculous valuations and a momentum massacre points to $200 as being a intermediate-term top for Beyond Meat stock. BYND, however, is virtually impossible to borrow to short the shares. Fortunately the options market provides a viable, defined risk alternative to take a bearish stance.
Buy BYND July $210 calls and sell BYND July $200 calls for a $1.50 net credit.
Maximum gain on the trade is $150 per spread with maximum risk of $850 per spread. Return on risk is 17.64%. The short $200 strike price provides a 17% upside cushion to the $169.39 closing price of BYND stock.
As of this writing, Tim Biggam did not hold a position in any of the aforementioned securities. Anyone interested in finding out more about option-based strategies or for a free trial of theDelta Desk Research Reportcan email Tim at timbiggam@gmail.com.
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Our Take On CBL Associates Properties, Inc's (NYSE:CBL) CEO Salary
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Stephen Lebovitz became the CEO of CBL & Associates Properties, Inc (NYSE:CBL) in 2010. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for CBL & Associates Properties
According to our data, CBL & Associates Properties, Inc has a market capitalization of US$234m, and pays its CEO total annual compensation worth US$3.5m. (This number is for the twelve months until December 2018). That's a notable increase of 34% on last year. While we always look at total compensation first, we note that the salary component is less, at US$707k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.1m.
Thus we can conclude that Stephen Lebovitz receives more in total compensation than the median of a group of companies in the same market, and of similar size to CBL & Associates Properties, Inc. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at CBL & Associates Properties has changed from year to year.
On average over the last three years, CBL & Associates Properties, Inc has shrunk earnings per share by 84% each year (measured with a line of best fit). Its revenue is down -8.0% over last year.
Few shareholders would be pleased to read that earnings per share are lower over 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. It could be important to checkthis free visual depiction ofwhat analysts expectfor the future.
Since shareholders would have lost about 82% over three years, some CBL & Associates Properties, Inc shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We examined the amount CBL & Associates Properties, Inc pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
Arguably worse, investors are without a positive return for the last three years. This contrasts with the growth in CEO remuneration, year on year. In our opinion the CEO might be paid too generously! Shareholders may want tocheck for free if CBL & Associates Properties insiders are buying or selling shares.
If you want to buy a stock that is better than CBL & Associates Properties, 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. |
25 Discontinued Trader Joe’s Items That Should Come Back
No other store creates fans of particular items like Trader Joe’s . But the store will break your heart again and again. TJ’s will invent the perfect treat that you’ll always have in your freezer or pantry, something that will become your go-to solo dinner craving, or the one thing that your kids will eat without fail. You’ll buy it every week, sometimes for years. And then, one day, it happens. It’s gone . At first, you think they are just out that day. So, you return later in the week. But there, on the shelf where it has always been, nothing. Or even worse, a product that is similar but slightly different. Case in point, the Thai Lemongrass Chili Peanuts. Apparently, they now make a cashew version, but the peanuts, discontinued ten years ago, were a next-level snack, and are missed by many to this day. WATCH: The Best and Worst Olive Oil from the Grocery Store I polled some groups on Facebook asking who was missing particular items. In one day, I got so many responses I had to create a spreadsheet to keep up with them. One friend said, “I use a lot of Trader Joe’s stuff as building blocks for dinners, and when they take something away, I really have to scramble.” Here are the top 25 items people are missing the most, divided into categories. And just in case someone from Trader Joe’s is reading this: you could make a lot of people happy if you would consider rebooting some of these long gone, but not forgotten, treats. Dips No one makes a dip like Trader Joe’s, and no one is quicker to pull them the moment everyone is addicted. Here are the top heartbreaks: Herbed Brie Dip . Jamie says “It was seasonal, and then discontinued. I literally teared up when they told me.” Masala Lentil Dip . Caren and others remember it wistfully as having “The perfect amount of kick, and it was non-dairy. A great alternative to hummus.” The Three Layer Hummus left a big hole for many. Gabbie said “The cilantro layer was divine.” and Laura “loved having a variety of hummus in one container.” There was a big outcry over the Roasted Garlic Salsa , which several people touted as having the perfect amount of garlic. Cauliflower Cheese and Onion Dip . It was a riff on the classic spinach artichoke heat-and-eat dip, which they still carry, but several people said the cauliflower version was better and their parties haven’t been the same. Story continues Read more: 7 Trader Joe’s Hostess Gifts Under $10—That Aren't Wine Side dishes A lot of busy folks rely on Trader Joe’s to provide quick, easy, and delicious side dishes to round out their meals, only to have those rugs pulled out from under them. The Biriyani Rice was a fond memory for several. It’s apparently been unavailable for over five years and people still talk about it as being the holy grail of frozen sides. The Harvest Hodgepodge frozen veggie mix was also a fan favorite. Wendy said, “I’m bereft. It was my go-to for quick stir-fries, it was the perfect size and mix of veggies.” Instant Garlic Mashed Potatoes seemed to be mourned especially by parents who called it the perfect easy side, because kids loved them, but they were also good enough for the grown-ups. The Frozen Brown Rice/Quinoa Blend in a microwavable pouch was also a serious contender for most-missed in this category. Many people loved that it was both fast and delicious, and a step up from plain rice or plain quinoa. Polenta Provencal inspired much love. Sarah referred to it as “My undoing. So good.” And Ashley “still craves it.” Read more: The Best Item at Trader Joe's Is Just .99 Cents Snacks If I am having a large party or a houseful of guests for the weekend, there is no better place to stock up on nibbles, cocktail party snacks, or little sweet treats to have on hand. Here were the ones that the most people wish would come back: The Frozen Phyllo Cigars with brie and raspberry. The ideal thing to keep in the freezer for spontaneous guests or an easy start to a dinner party. The Black Bean Taquitos apparently made a big impression, especially since they were a great appetizer, but also worked as an after-school snack, or even a light lunch or dinner in a pinch. Many said they were their go-to option for vegetarians at parties. Japanese Frozen Sticky Rice snacks were apparently very popular with parents and kids alike. Celise said, “We were heartbroken when they were discontinued.” Vegetable Shumai was another global favorite, people praised the ease of preparation and everyone said that they were always the first thing to disappear off the buffet, and many mentioned them as being the “vegetarian dish that the meat lovers loved.” Ginger Cat Cookies still have a lot of fans out there. Anna said “they were a decades-long staple in our house, and one of the only cookies we were allowed growing up. Still mourning their loss after five years.” Read more: Your Next Cheese Board Needs These Trader Joe's Finds Meals So many people tout Trader Joe’s as saving them from eating too much takeout. Their frozen and jarred meals and sauces apparently kept many on the semi-homemade cooking kick and were the first thing to reach for after a busy day of work or to have the babysitter heat up for the kids. Artichoke Gnocchi was a surprising fave, most mentioned making it with the TJ jarred vodka sauce for a dinner that was elegant, easy, and delicious. The Pre-Cooked Chicken Breasts and Chicken Sausages were both huge losses. Many people said that they made for quick and easy lunch items or the beginning of dinner dishes. The Greens, Beans and Grains Salad was mentioned a lot for being great on its own, or as the base for an added protein like a can of tuna or a grilled chicken breast as the perfect take to work lunch that was the opposite of a sad desk salad. The Frozen Stuffed Salmon and Stuffed Chicken Breasts were touted as the centerpiece of many a dinner party or quick family meal. Faith and many others still mourn the passing some 15 years hence of the Duck Sausages and Lamb Merguez . “Full of flavor and very versatile, used in everything from cassoulet type dishes to impromptu paellas. I still look for them.” Read more: Over 100 Ways to Use Trader Joe’s Everything Bagel Seasoning Blend Miscellaneous So many things fall into this category that it could have been its own article. More than a few people said that they have been known to search on sites like eBay to try and find these lost items. Lovey Gummy Tummies used to be the seasonal item that helped many people get through February. Emily said “My favorite gummies ever. I would stock up every February, and then they never came back. The penguins are no replacement. I think about them every time I am there.” I never would have suspected that Apricot Puree would have so many fans, but people mentioned doing everything from pouring it over yogurt at breakfast, to putting on cheese platters, to glazing holiday hams with it. The Cocoa Coffee was also a huge hit with people, and Shannon in particular shared a bond with her mother-in-law over it, and they are both devastated that it was discontinued. My personal loss is the Frozen Carrot Balls , little half-inch spheres of frozen carrot, they were amazing for soups, or made a fun side dish when glazed with ginger jam or miso maple butter. I loved how they looked and used to always keep a couple of bags in my freezer. And a loss for many in general, and my husband in specific, was the Frozen Plain Unsweetened Steel Cut Oatmeal Pucks . These personal-size servings of cooked oatmeal took only a minute in the microwave to heat up and were a part of my husband’s healthy breakfast for years before they discontinued them. They will still occasionally have the brown sugar or maple flavors, but we have not seen the unsweetened plain version in about five years. Trader Joe’s is a constant reminder that life is fleeting and nothing is promised to us. A permanent example of how important it is to live in the moment and stop and smell the roses—or the yogurt kale dip. And if your kids will only eat vegetables in the form of one of their treats, you might want to consider a chest freezer. Because once the spinach and kale parmesan balls are gone, they might never come back. Read more: Trader Joe's Is Selling Kunefe, a Super Cheesy Middle Eastern Dessert |
Business Lessons From Berkshire's Nebraska Furniture Mart
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GameStop Wants to Be the 'Local Church' of Gaming
It’s not exactly shocking news thatGameStopseems to beat riskof facing game over.
After disappointing first-quarter earnings (comparable store sales fell 10.3%) and the announcement it was suspending its dividend earlier this month, the company’s stock plunged 37% in a single day. Shares are down roughly 60% year to date, amidcontinuing bad newsandgrowing competition. And some analysts arewarning investorsto stay away, with Mike Hickey of The Benchmark Company, saying he was reducing his price target to $5 “as [the] business burns to the ground.”
That makes Frank Hamlin’s job a tough one. As EVP and chief customer officer, it’s part of his job to convince both players and investors the company is still relevant—and not following the well trodden path of Sears,J.C. Penney, and so many other casualties of the retail downturn. And so far, he hasn’t had a lot of ammunition, as GameStop’s new management team prepares its turnaround plan.
Speaking withFortuneat theE3 video game trade show last week,Hamlin offered a few hints of what the company wants to be—and do—moving forward.
“We had a massive diversification strategy [previously], but the new management team, under George Sherman, our new CEO, is myopically and maniacally focused on gaming,” he says. “We need to…focus on becoming a cultural center for gaming….If [E3] is the Vatican [of gaming], why aren’t we the local church?”
Hamlin says game publishers, aware of GameStop’s future plans, are supporting the company, recognizing the need for a gathering spot where players can discover new games and enjoy the real-world company of other enthusiasts.
Not too long ago, that’s exactly the role GameStop played. Big game releases were celebrated with midnight launch parties, with lines to enter often numbering several hundred people deep. Developers signed copies of their games and offered giveaways to players. GameStop cash registers overflowed.
However, midnight launches mean players have to stay up late, which doesn’t fit today’s gamer demographics. The average gamer is nowbetween 32 and 34 years old. So it’s no surprise the rise of digital game downloads sounded a death knell for late-night product extravaganzas.
Video games are on the edge of a new paradigm shift, as game-streaming services prepare to launch, letting people play instantly—and potentially changing how many gamers get their new titles.
GameStop, says Hamlin, is seeking to adjust to the evolving landscape.
“We’re in this interesting friction of change for everyone,” he says. “Nobody knows how it’s going to end up, but we know that streaming services and subscription services are the future. The question is: How do you reconfigure and rethink the ecosystem to accommodate that in the best way for players? Our whole role is to be player focused.”
The company, with 2018 global sales of $8.3 billion—a 3.1% annual decline, with comparable store sales off 0.3%—is hoping its nearly 3,700 stores and 40,000 employees are the key to future success. They’re enthusiasts themselves and can be valuable sources of information for both hardcore players and shoppers who know nothing about the industry.
“We’re not selling widgets,” says Hamlin. “We’re not selling commodity items….This is something where there is a real passion around it. All we have to do is capture that in a retail experience.”
Some analysts are cautious about the long-term success of the strategy, but say the return to focusing on core values seems wise.
“We actually believe that the team is on the right path, although 5½ years late,” says Michael Pachter of Wedbush. “Had GameStop done this in late 2013, the company would be debt free and would have had significantly more cash available to return to shareholders….While we are not particularly optimistic that GameStop’s new management will accomplish a lot with its new business initiatives, we are quite optimistic that they will manage the business and harvest cash.”
Hickey takes a more dire approach, saying in a note the management team “lacked any coherent articulation of a tangible vision on how to transform the business.”
While digital distribution and streaming are both expected to continue to grow, neither of the upcoming consoles fromMicrosoftand Sony will forego the physical drive, meaning there’s still a market for game discs. Pachter notes that major game publishers still sell 50% of console games in physical form.
That’s a wedge GameStop hopes it can use, as it also helps keep the company’s used game business alive—traditionally its chief revenue source. Customers who still buy those regularly, says Hamlin, could be key to the retailer’s chance for turning things around.
“Something Wall Street doesn’t understand is lower income gamers are a massive, massive audience and GameStop does a yeoman’s service in serving that customer,” he says. “That customer typically pays in cash. That customer doesn’t have massive bandwidth in their home. That customer is a value shopper.”
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If You Had Bought ShaMaran Petroleum (CVE:SNM) Stock Five Years Ago, You'd Be Sitting On A 76% Loss, Today
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Long term investing works well, but it doesn't always work for each individual stock. We don't wish catastrophic capital loss on anyone. For example, we sympathize with anyone who was caught holdingShaMaran Petroleum Corp(CVE:SNM) during the five years that saw its share price drop a whopping 76%.
Check out our latest analysis for ShaMaran Petroleum
Because ShaMaran Petroleum is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).
If you are thinking of buying or selling ShaMaran Petroleum stock, you should check out thisFREEdetailed report on its balance sheet.
Investors in ShaMaran Petroleum had a tough year, with a total loss of 20%, against a market gain of about 1.4%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, longer term shareholders are suffering worse, given the loss of 25% doled out over the last five years. We'd need to see some sustained improvements in the key metrics before we could muster much enthusiasm. Before spending more time on ShaMaran Petroleumit 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 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. |
Beware These China Stocks in the Short Term
UpbeatU.S.-China trade headlinesfueled buying on Wall Street on Tuesday, lifting Chinese stocksBilibili Inc (NASDAQ:BILI)andIQIYI Inc (NASDAQ:IQ). However, both names are down today, and, unlike cloud concernTwilio (TWLO), seasonality suggests the shares of BILI and IQ could be headed even lower -- a move some speculators have been bracing for.
Per data from Schaeffer's Quantitative Analyst Chris Prybal, Bilibili has been one of the worst stocks to own during calendar weeks 25 through 28, averaging a loss of 32.4% since inception -- though that encompasses just one year of data. The shares of the video sharing website have already shed 30% since their Feb. 28 annual high of $21.50, with a recent rally quickly contained by the equity's 200-day moving average.
Based on BILI's current perch at $15.10, down 0.4% today, another move of this magnitude would put the shares back near $10 by this time next month. The move would certainly be welcome by options traders. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day put/call volume ratio of 1.36 ranks in the 89th annual percentile, meaning puts have been bought to open over calls at a quicker-than-usual clip.
Iqiyi stock is down 3.2% today to trade at $17.89, but still maintains a 20% year-to-date lead. The shares could be set for even more short-term losses, if history is any guide. Data from Prybal shows IQ has averaged a loss of 14.5% through calendar weeks 25 through 28, though the Chinese stock first began trading on the Nasdaq in March 2018.
Options traders at the ISE, CBOE, and PHLX have been buying to open IQ puts relative to calls at an accelerated clip, per the stock's 10-day put/call volume ratio of 0.61, in the elevated 84th annual percentile. Shorts have been increasing their bearish exposure, too, with short interest up 10.6% in the two most recent reporting periods, to 56.82 million shares -- a healthy 18.2% of IQ's float, or six times the average daily pace of trading. |
Are Insiders Buying Contact Gold Corp. (CVE:C) Stock?
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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares inContact Gold Corp.(CVE:C).
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia Universitystudyfound that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
View our latest analysis for Contact Gold
President Matthew Lennox-King made the biggest insider purchase in the last 12 months. That single transaction was for CA$75k worth of shares at a price of CA$0.29 each. That means that an insider was happy to buy shares at above the current price of CA$0.25. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 968k shares worth CA$255k. In the last twelve months Contact Gold insiders were buying shares, but not selling. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably donotwant to miss thisfreelist of growing companies that insiders are buying.
We saw some Contact Gold insider buying shares in the last three months. Insiders shelled out CA$57k for shares in that time. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Contact Gold insiders own about CA$1.9m worth of shares (which is 9.2% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Contact Gold stock. To put this in context, take a look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
What Kind Of Investor Owns Most Of Sonoco Products Company (NYSE:SON)?
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If you want to know who really controls Sonoco Products Company (NYSE:SON), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.
With a market capitalization of US$6.5b, Sonoco Products is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. Taking a look at our data on the ownership groups (below), it's seems 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 SON.
Check out our latest analysis for Sonoco Products
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors own 79% of Sonoco Products. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Sonoco Products, (below). Of course, keep in mind that there are other factors to consider, too.
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don't have many shares in Sonoco Products. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
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.
I can report that insiders do own shares in Sonoco Products Company. This is a big company, so it is good to see this level of alignment. Insiders own US$126m worth of shares (at current prices). It is good to see this level of investment by insiders. You cancheck here to see if those insiders have been buying recently.
The general public holds a 19% stake in SON. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
It's always worth thinking about the different groups who own shares in a company. But to understand Sonoco Products better, we need to consider many other factors.
Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow.
Ultimatelythe future is most important. You can access thisfreereport on analyst forecasts for the company.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Do Insiders Own Lots Of Shares In General Capital Limited (NZSE:GEN)?
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The big shareholder groups in General Capital Limited (NZSE:GEN) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.'
With a market capitalization of NZ$7.7m, General Capital is a small cap stock, so it might not be well known by many institutional investors. In the chart below below, we can see that institutional investors have not yet purchased shares. Let's delve deeper into each type of owner, to discover more about GEN.
See our latest analysis for General Capital
We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.
There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. General Capital's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.
We note that hedge funds don't have a meaningful investment in General Capital. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our most recent data indicates that insiders own a reasonable proportion of General Capital Limited. It has a market capitalization of just NZ$7.7m, and insiders have NZ$3.6m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checkingif those insiders have been buying recently.
The general public holds a 30% stake in GEN. 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.
Our data indicates that Private Companies hold 23%, of the company's shares. 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.
I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
If You Like EPS Growth Then Check Out CBRE Group (NYSE:CBRE) Before It's Too Late
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Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. But as Warren Buffett has mused, 'If you've been playing poker for half an hour and you still don't know who the patsy is, you're the patsy.' When they buy such story stocks, investors are all too often the patsy.
So if you're like me, you might be more interested in profitable, growing companies, likeCBRE Group(NYSE:CBRE). While profit is not necessarily a social good, it's easy to admire a business than can consistently produce it. Conversely, a loss-making company is yet to prove itself with profit, and eventually the sweet milk of external capital may run sour.
View our latest analysis for CBRE Group
The market is a voting machine in the short term, but a weighing machine in the long term, so share price follows earnings per share (EPS) eventually. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. As a tree reaches steadily for the sky, CBRE Group's EPS has grown 25% each year, compound, over three years. As a general rule, we'd say that if a company can keep upthatsort of growth, shareholders will be smiling.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. While we note CBRE Group's EBIT margins were flat over the last year, revenue grew by a solid 13% to US$22b. That's progress.
The chart below shows how the company's bottom and top lines have progressed over time. Click on the chart to see the exact numbers.
The trick, as an investor, is to find companies that aregoing toperform well in the future, not just in the past. To that end, right now and today, you can checkour visualization of consensus analyst forecasts for future CBRE Group EPS100% free.
We would not expect to see insiders owning a large percentage of a US$17b company like CBRE Group. But we do take comfort from the fact that they are investors in the company. Indeed, they have a glittering mountain of wealth invested in it, currently valued at US$195m. I would find that kind of skin in the game quite encouraging, if I owned shares, since it would ensure that the leaders of the company would also experience my success, or failure, with the stock.
Given my belief that share price follows earnings per share you can easily imagine how I feel about CBRE Group's strong EPS growth. I think that EPS growth is something to boast of, and it doesn't surprise me that insiders are holding on to a considerable chunk of shares. Fast growth and confident insiders should be enough to warrant further research. So the answer is that I do think this is a good stock to follow along with. Of course, identifying quality businesses is only half the battle; investors need to know whether the stock is undervalued. So you might want to consider thisfreediscounted cashflow valuationof CBRE Group.
You can invest in any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here isa list of companies with insider buying in the last three months.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
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