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A conversation with make-up artist, Larry Yeo
SINGAPORE — Meet freelance make-up artist, Larry Yeo, who’s been in the beauty business for close to 20 years. Educated in Biotechnology and Cosmetic Science, he’s passionate about educating, correcting make-up misconceptions and bringing out people’s beauty.
There’s no such thing as a typical day
It can start as early as 2.30am or as late as 8pm for a shoot. I also conduct workshops where I present to people about skincare and make-up on behalf of beauty brands, imparting practical skills as well as clear up any skincare or make-up myths.
He’s always well-prepared
I like to be prepared, so I usually double check and get ready three or four hours before an event. I run through my notes and rehearse if I’m doing a workshop. If it is an early job, I definitely need a caffeine kick from my local coffeeshop.
I gradually learnt when I first started freelancing in 2006 that it’s important to be fully prepared and well-equipped. My kit contains the whole works: skincare, make-up remover, make-up and brushes, right down to cotton buds and also a first-aid kit. #TrustNoOne
He’s a homebody
The longer I work in the industry, the more introverted I have become. Some have misinterpreted my desire to be alone as being antisocial, but in fact it’s because my daily work requires a lot of energy and plenty of interaction. During my time off, I prefer chilling with a small group of close friends at home or simply sleep, nap, or laze around.
Men and make-up? He’s all for it
As long as it empowers them. I do put on make-up for special occasions. Start with a little concealer under the eye, blot that grease away and maybe hide the love bites on your neck!
Teaching is one of his passions
I love teaching and conducting workshops because education is power. Various brands confine people (like their staff) to their stipulated ways of application techniques, while some are limited in what they are willing to attempt because they don’t have the confidence and experience to experiment. My greatest thrill is to hear from the participants that they have benefitted immensely at the end of a workshop or a presentation, and they are eager to put what they have learnt to good use.
New to make-up?
First, embrace your face shape. Secondly, it’s make-up, so explore. When was the last time you tried something new? Are you stuck with the same look year on year? Is your make-up style becoming more and more generic? Give yourself a challenge from time to time to try something different and think out of the box. If it doesn’t work out, no big deal – clean your face, and start again.
Fake news is not his thing
The most challenging part of my job is fighting through the white noise and the sea of misinformation regarding make-up. That’s why I enjoy conducting beauty workshops and getting the right message across to the public. The new make-up video series I’m working on with Yahoo TV is another platform for me to spread this message.
Catch Yahoo TV’s make-up series with Larry, “Can Make It Make-up”, starting 25 June. |
Who's Getting Rich From Slack's Direct Listing: Term Sheet
1. GETTING RICHAs Slack makes its public debut today, let’s take a look at who stands to win big.Venture capital firm Accel is known for its early Facebook bet — its $12.2 million stake became worth over $9 billion on the day of the company’s IPO.Now, at Slack’s debut, Accel stands to make about $3.1 billion at a reference price of $26 thanks to its 23.8% stake in the workplace messaging company. Hold on, you may think. Wasn’t Accel also an investor in cybersecurity CrowdStrike, which recently had a wildly successful IPO?Yes. Accel was the second-biggest shareholder in CrowdStrike, owning stock worth $2.8 billion. In 2013, Accel led CrowdStrike’s $30 million Series B funding round.From CNBC:Those are huge hauls, particularly for a firm that has traditionally raised sub-billion-dollar funds, and they account for two of the biggest venture returns of 2019, a year that’s included the debuts of Uber and Lyft. Unlike those high-profile IPOs, Slack is choosing to go public through a direct listing, meaning the company won’t raise fresh capital but is letting existing shareholders convert their shares into stock that can be traded.Here’s who else stands to benefit from Slack’s direct listing:— Andreessen Horowitz owns 13% (worth $1.7 billion at the reference price)— Social Capital controls 10% ($1.3 billion)— Slack CEO Stewart Butterfield is the biggest individual shareholder, owning an 8.4% stake ($1.1 billion)— Co-founder and CTO Cal Henderson owns 3.3% ($431 million)More commentary to come tomorrow.BRAINSTORM FINANCE HIGHLIGHTS:It was a full day yesterday atFortune’sBrainstorm Finance. Some highlights from the conference:LIBRA GOVERNANCE:Everyone is talking about Libra, Facebook’s big splash in the cryptocurrency space. But venture capital firm Andreessen Horowitz made one thing clear: It will have just as much power as Facebook in overseeing the governance of the new digital currency. Kathryn Haun, managing partner at Andreessen, said a consortium of 28 founding members, called the Libra Association, will spend the next few months debating decisions around how the new digital currency will be overseen. And all of those members will have a seat at the table in determining the direction.Read more.OPTIMISM ABOUT LIBRA:Facebook’s ambitious plan to release its own cryptocurrency dubbed Libra has been met with an avalanche of concern from regulators worldwide. But the CEO of Tala, a mobile lending company that focuses on the under- and unbanked around the world, sees a more optimistic possibility.“The promise of it is exciting. What it could do for a company like ours is it could accelerate our ability to go horizontally very quickly,” Tala CEO Shivani Siroya said. “Right now when going into a new country, we are having to build all our own connections.”Read more.THE FUTURE OF MOBILE PAYMENTS:Hikmet Ersek, president and CEO of The Western Union Company, said the new Libra venture has considerable work ahead having developing a full payment and money transmission system, especially when considering so-called unbanked people who may need to pay and receive actual cash, not just a transaction on a mobile phone.“The real cost is serving the customer in the last mile,” he said, referring to accepting and delivering money in local currencies, whether electronically or in person. “You have to be in the streets of Cairo, the streets of Nairobi. It took us many, many years to build a global system that moves $300 billion every year.”Read more.‘KILLING IT WITH MILLENNIALS:’Charles Schwab CEO Walt Bettinger disputed the conventional wisdom that his legacy brokerage firm was at a disadvantage in serving the hoodies-and-Allbirds crowd. “The math backs it up: We’re bringing in hundreds of thousands of millennials every year,” Bettinger said. What’s more, “If you map out [the investing needs] of Gen Y and Gen X, they don’t look very different” in the products and services they seek. “The behavior of millennials is quite consistent with other generations.”Read more.A CASHLESS SOCIETY:Bank of America CEO Brian Moynihan emphasized that the importance of, and reliance on, technology has “changed the way money works,” not only improving the customer experience but also allowing banks to cut billions of dollars of costs. In that respect, the shift to a “cashless society” is one that Bank of America is embracing. “We want a cashless society,” he said. “We have more to gain than anybody from a pure operating costs [perspective].”Read more.
2. VENTURE DEALS•Postman, a San Francisco-based collaboration platform for API development, raised $50 million in Series B funding.CRVled the round, and was joined by investors includingNexus Venture Partners.•Valimail, a San Francisco-based provider of trust-based anti-phishing technologies, raised $45 million in Series C funding. Investors includeInsight Partners.•SmartRent,a Scottsdale, Ariz.-based smart home automation platform company for multifamily property managers and renters, raised $32 million in Series B funding.Bain Capital Venturesled the round.•Everactive, a Santa Clara, Calif.-based developer of IoT sensors, raised $30 million in funding.Future Fundled the round, and was joined by investors includingBlue Bear Capital, ABB Technology Ventures, New Enterprise AssociatesandOsage University Partners.•Bitwise Industries, a Fresno, Calif.-based tech ecosystem, raised $27 million in Series A funding.Kapor CapitalandNew Voices Fundled the round.•DouxMatok, an Israel-based food tech company, raised $22 million in Series B funding.BlueRed Partnersled the round.•Bitrise, a London-based mobile continuous integration and delivery platform, raised $20 million Series B funding.Partechled the round, and was joined by investors includingZobito, OpenOcean, Y Combinator,andFiedler Capital.•Valtix, a Santa Clara, Calif.-based provider of a cloud-native network security platform, raised more than $14 million in funding. Investors includeTrinity Ventures, Vertex VenturesandWing Venture Capital.•Vynca, a Palo Alto, Calif.-based provider of advance care planning solutions, raised $10.3 million in Series B funding. Investors includeFirst Trust Capital Partners, OCA Ventures, Spectrum Health Ventures, Generator Venturesand theZiegler LinkAge Longevity Fund.•ZeaKal, a San Diego, Calif.-based plant trait technology company, raised $10 million in funding fromCanopy Rivers.•Humanising Autonomy,a London-based developer of software for self-driving vehicles, raised $5.3 million in funding.Anthemisled the round, and was joined by investors includingGlobal Brain,AmplifierandSynapse Partners.•Whitebox, a Baltimore-based ecommerce automation and fulfillment technology company, raised $5 million in Series A funding. Investors includeTDF Venturesled the round.•Defendify, a cybersecurity startup, raised $1.6 million in funding. Investors includeMaine Technology Instituteand3dot6 Ventures.
3. HEALTH AND LIFE SCIENCES DEALS•Vida Health,a San Francisco-based personalized virtual care platform for physical and behavioral health, raised $30 million in Series C funding. Investors includeGuideWell Mutual Holding Corporation, Teladoc HealthandWorkday Ventures.•Comet Therapeutics,a Cambridge-based company focused on rare genetic diseases and inborn errors of metabolism, raised $28.5 million in Series A funding.CanaanandSofinnova Partnersled the round.
4. PRIVATE EQUITY DEALS•Thomas H. Lee Partnersagreed to acquireAutoStore, a Norway-based robotics and software company. Financial terms weren’t disclosed.•Wynnchurch CapitalacquiredMPL, a Fairland, Ind.-based provider of cultured marble products for the hospitality and multifamily housing markets. Financial terms weren’t disclosed.•Quorum Software, a portfolio company ofThoma Bravo, acquiredArcheio Technologies, a Dallas-based provider of oil and gas document classification and smart search technology. Financial terms weren’t disclosed.
5. OTHER DEALS•FAT Brands Inc. (NASDAQ: FAT) acquiredElevation Burger, a West Coast-based chain specializing in grass-fed, free-range options, for $10 million which was funded through a combination of sellers’ notes and cash.
6. IPOs•Personalis, a Menlo Park, Calif.-based maker of a cancer genome sequencing platform for cancer research, raised $135 million in an IPO of 7.9 million shares priced between at $17. It posted revenue of $38 million in 2018 and loss of $19.9 million.Lightspeed(27.8%)Abingworth Bioventures(25%) backs the firm. Morgan Stanley, BofA Merrill Lynch, and Cowen are underwriters. It plans to list on the Nasdaq as “PSNL.”Read more.•Atreca, a Redwood City,-Calif-based preclinical biotech for immunotherapies focused on solid tumors, raised $125 million in an IPO of 7.4 million shares priced at $17. It has yet to post a revenue, and posted a loss of $37.9 in 2018.Baker Brothers(22.8%),Bill and Melinda Gates(9%) andWellington Management(12.5%) back the firm. Cowen, Evercore ISI and Stifel are underwriters. It plans to list on the Nasdaq as “BCEL.”Read more.•Prevail Therapeutics, a New York-based early stage gene therapy maker focused on neurodegenerative diseases, raised $125 million in an IPO of 7.4 million shares priced at $17. It has yet to post a revenue, and posted a loss of $19.1 million in 2018.OrbiMed(48.6%) backs the firm. Morgan Stanley, BofA Merrill Lynch, and Cowen are underwriters. It plans to list on the Nasdaq as “PRVL.”Read more.•Akero Therapeutics Inc, a Cambridge, Mass.-based biotechnology company focused on treating non-alcoholic steatohepatitis and other serious metabolic diseases, raised$135 million in an IPO of 7.9 million shares priced between $14 to $16 .Apple Tree Partners(20.2% pre-offering), Atlas Venture (17.4%), venBio Partners(17.4%),andVersant Ventures(17.4%). and it plans to list on the Nasdaq under the symbol AKRO. J.P. Morgan, Jefferies, and, Evercore ISI are underwriters. It plans to list on the Nasdaq as “AKRO.”Read more.
7. FIRMS + FUNDS•Sequoia Capital India, an India-based venture capital firm, raised $694.5 million for its sixth fund, according toan SEC filing.•Revelstoke Capital Partners,a Denver-based private equity firm, raised more than $437 million for its second fund, according toan SEC filing.
8. SHARE TODAY’S TERM SHEETView this email in your browser.Polina Marinovaproduces Term Sheet, andLucinda Shencompiles the IPO news. Send deal announcements to Polinahereand IPO news to Lucindahere. |
Does The Gorman-Rupp Company's (NYSE:GRC) 21% Earnings Growth Make It An Outperformer?
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Measuring The Gorman-Rupp Company's (NYSE:GRC) track record of past performance is a useful exercise for investors. It enables us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess GRC's recent performance announced on 31 March 2019 and weigh these figures against its long-term trend and industry movements.
Check out our latest analysis for Gorman-Rupp
GRC's trailing twelve-month earnings (from 31 March 2019) of US$38m has jumped 21% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 0.7%, indicating the rate at which GRC is growing has accelerated. How has it been able to do this? Let's take a look at if it is merely owing to an industry uplift, or if Gorman-Rupp has experienced some company-specific growth.
In terms of returns from investment, Gorman-Rupp has fallen short of achieving a 20% return on equity (ROE), recording 13% instead. However, its return on assets (ROA) of 10% exceeds the US Machinery industry of 7.6%, indicating Gorman-Rupp has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Gorman-Rupp’s debt level, has increased over the past 3 years from 11% to 14%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 2.0% to 0.09% over the past 5 years.
Gorman-Rupp's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research Gorman-Rupp to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for GRC’s future growth? Take a look at ourfree research report of analyst consensusfor GRC’s outlook.
2. Financial Health: Are GRC’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
These 22 new vehicles are the highest-quality models of the year, according to J.D. Power
The three Korean automotive brands are producing the highest-quality vehicles in the U.S., according to an influential annual survey by J.D. Power.
Genesis, Kia and Hyundai – all part of the same Korean manufacturing group – took the first, second and third slots, respectively,for the second straight yearin the J.D. Power Initial Quality Study (IQS). Their electronics performance was especially strong.
But if you want the highest-quality vehicle on the market, you'll have to save up for the Porsche 911, a luxury sport coupe that ranked No. 1 among all models. (Scroll down or click through the gallery above to see the full list of the 22 vehicles to win their categories.)
The 2019 J.D. Power IQS survey gauges how new vehicles are faring in their first 90 days. The study plays an influential role in shaping public perceptions of automotive brands and vehicles, as automakers typically tout their performance to customers.
It doesn't gauge long-term reliability, value or popularity. Instead, it tracks defects and shortcomings, such as poorly performing infotainment and problems with advanced safety systems.
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Is cash on borrowed time?What's the future for cold, hard money?
Land Rover and Jaguar, luxury British brands owned by India-based Tata Motors, placed second to last and last, respectively. (See the full list of brands below.)
Overall, vehicle quality stayed flat for the 2019 model year, marking the first time it hasn't improved in five years, J.D. Power said.
2018 J.D. Power IQS results:Genesis, Kia, Hyundai come out on top
“Automakers continue to make progress in areas like infotainment that attract a lot of consumer attention,” Dave Sargent, vice president of global automotive at J.D. Power, said in a statement. “However, some traditional problems crept up this year including paint imperfections, brake and suspension noises, engines not starting and the ‘check engine’ light coming on early in the ownership experience."
He also said more people are having issues with their advanced driver assistance systems, which are critical for building consumer trust in future automated vehicles.
• Genesis (63)
• Kia (70)
• Hyundai (71)
• Ford (83)
• Lincoln (84)
• Chevrolet (85)
• Nissan (86)
• Dodge (90)
• Lexus (90)
• Toyota (90)
• Buick (92)
• GMC (94)
• Mazda (94)
• Mercedes-Benz (94)
• Porsche (96)
• Honda (98)
• Cadillac (100)
• Jeep (100)
• Infiniti (101)
• BMW (102)
• Ram (105)
• Audi (106)
• Mini (107)
• Acura (110)
• Chrysler (113)
• Subaru (113)
• Volkswagen (113)
• Volvo (114)
• Alfa Romeo (118)
• Mitsubishi (121)
• Land Rover (123)
• Jaguar (130)
One automaker was not measured: Tesla.
"For certain states, we need the manufacturer’s permission for us to contact their customers," J.D. Power said in a statement. "These states make up approximately 70% of Tesla’s sales volume, and Tesla does not give us approval in these states. (All other automakers do give permission.) Therefore we only have responses from states which comprise about 30% of Tesla’s sales volume, and our current rules preclude us from reporting publicly on what may be an unrepresentative sample of customers."
Top overall model: Porsche 911
Small car: Kia Rio (runners up: Hyundai Accent, Nissan Versa)
Small premium car: BMW 2 Series
Compact car: Kia Forte (runners up: Hyundai Elantra, Toyota Corolla)
Compact sporty car: MINI Cooper (runner up: Hyundai Veloster)
Compact premium car: Genesis G70 (runners up: BMW 4 Series, Kia Stinger)
Midsize car: Chevrolet Malibu and Ford Fusion (runners up: Hyundai Sonata, Kia Optima)
Midsize sporty car: Dodge Challenger
Midsize premium car: Mercedes-Benz CLS (runners up: Genesis G80, Audi A7)
Large car: Nissan Maxima (runners up: Toyota Avalon Chrysler 300)
Small SUV: Kia Sportage (runners up: Hyundai Tuscon, Hyundai Kona)
Compact SUV: Chevrolet Equinox (runners up: Ford Escape, Honda CR-V, Nissan Rogue)
Compact premium SUV: BMW X4 (runners up: Lincoln MKC, Mercedes-Benz GLC)
Midsize pickup: Ford Ranger (runners up: Nissan Frontier, Toyota Tacoma)
Midsize SUV: Hyundai Santa Fe (runners up: Ford Flex, Jeep Grand Cherokee, Kia Sorento, Nissan Murano)
Midsize premium SUV: Lexus RX (runners up: Mercedes-Benz GLE)
Minivan: Kia Sedona (runners up: Dodge Grand Caravan, Toyota Sienna)
Large SUV: Chevrolet Tahoe (runners up: Toyota Sequoia, Ford Expedition)
Large premium SUV: Cadillac Escalade (runner up: Lincoln Navigator)
Large light-duty pickup: Nissan Titan (runner up: Ford F-150, Toyota Tundra)
Large heavy-duty pickup: Chevrolet Silverado HD (runner up: Ford Super Duty)
Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.
This article originally appeared on USA TODAY:These 22 new vehicles are the highest-quality models of the year, according to J.D. Power |
Putin faces gripes in call-in show about living standards
MOSCOW (AP) — President Vladimir Putin faced a litany of complaints about low living standards during a marathon call-in show Thursday, promising to boost wages and pensions and boost social programs. More than 1.5 million people have sent their questions by phone, video calls or email. For the people across the vast country, the tightly-choreographed annual show provides a rare opportunity to take their grievances to the very top. The call-in is dominated by complaints about low wages, potholed roads, decrepit schools, overfilled hospitals and other social issues. Putin noted that Russia has been hurt by a drop in energy prices and international sanctions, but added that the economy has improved. Putin acknowledged that U.S. and the European Union sanctions have cost Russia an estimated $50 billion since 2014, but he claimed that the EU nations have suffered even greater damage because of the restrictions. The Russian leader said that the sanctions have encouraged Moscow to launch its own production of ship engines and other key industrial products and develop its agricultural sector. He said Russia's agricultural exports topped $25 billion last year and will keep growing. Putin charged that the Western sanctions represent an attempt to curb Russia's growing power, adding that U.S. trade restrictions against China serve a similar purpose. He pointed at U.S. sanctions against Chinese telecommunications company Huawei, describing it as part of U.S. efforts to "contain the development of China as a global power." "The same thing is happening with regard to Russia and it will keep going, so if we want to win a place under the sun we simply need to get stronger, primarily in the economic sphere," he said. Anchors said that during the show the call-center came under a cyberattack, which was successfully fended off. |
Was NuVasive, Inc.'s (NASDAQ:NUVA) Earnings Growth Better Than The Industry's?
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After looking at NuVasive, Inc.'s (NASDAQ:NUVA) latest earnings announcement (31 March 2019), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. As a long term investor, I pay close attention to earnings trend, rather than the figures published at one point in time. I also compare against an industry benchmark to check whether NuVasive's performance has been impacted by industry movements. In this article I briefly touch on my key findings.
View our latest analysis for NuVasive
NUVA's trailing twelve-month earnings (from 31 March 2019) of US$49m has jumped 17% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 23%, indicating the rate at which NUVA is growing has slowed down. To understand what's happening, let's examine what's transpiring with margins and whether the rest of the industry is facing the same headwind.
In terms of returns from investment, NuVasive has fallen short of achieving a 20% return on equity (ROE), recording 5.8% instead. Furthermore, its return on assets (ROA) of 4.9% is below the US Medical Equipment industry of 6.8%, indicating NuVasive's are utilized less efficiently. However, its return on capital (ROC), which also accounts for NuVasive’s debt level, has increased over the past 3 years from 6.5% to 7.1%.
NuVasive's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that have performed well in the past, such as NuVasive gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research NuVasive to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for NUVA’s future growth? Take a look at ourfree research report of analyst consensusfor NUVA’s outlook.
2. Financial Health: Are NUVA’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Putin, hit by ratings drop, tells Russians a better life awaits
By Gabrielle Tétrault-Farber and Andrew Osborn
MOSCOW, June 20 (Reuters) - President Vladimir Putin told Russians on Thursday there were signs that years of falling real wages, which have dented his popularity, were drawing to an end and that a government programme would deliver higher living standards.
Putin, 66, in power as president or prime minister since 1999, was re-elected by a landslide last year but his high ratings have slipped over pension reforms.
The government raised the retirement age to 65 from 60 for men and to 60 from 55 for women, a deeply unpopular move that has aggravated grumbling over six years of falling real incomes.
Putin's own approval rating has suffered, falling from a record high of almost 90 percent in 2015 to 64 percent now.
In his annual televised question and answer session, Putin said low living standards, low wages, poor healthcare and worries about how rubbish was being disposed of were now the most acute problems for Russians.
One caller from the Samara region complained about the difficulty of raising a family on just 10,000 roubles ($158.07) a month. "When will life get better?," the caller asked.
"It's true that real incomes have been falling for several years," responded Putin. "The biggest fall was in 2016, but now incomes have gradually started to recover," he said, blaming past volatility in energy markets.
A major public spending programme called National Projects would boost living standards, he pledged.
"The results of this should be being felt this year and next year," Putin said.
Former finance minister Alexei Kudrin, now head of the Audit Chamber, said on Sunday he was concerned about the risk of "a social explosion" if poverty levels were not cut, a comment the Kremlin criticised as emotional.
Putin, whose term is not due to end until 2024, does not face an imminent political threat despite some indications of simmering discontent.
Plans to open waste disposal facilities near populated areas have sparked protests in places, while the case of a journalist wrongly accused of drugs charges triggered a protest in Moscow this month and a rare and swift U-turn from the authorities.
In a sign of Kremlin nervousness, Russia's state pollster last month introduced a new methodology for canvassing public opinion after the Kremlin questioned its earlier findings. They had shown trust in Putin falling to 31.7% - its lowest in 13 years - because of people's economic disenchantment.
Under the new methodology, VTsIOM, the state pollster, showed public trust in Putin surging to 72.3%, a figure it said dropped slightly this month to 71.7%. ($1 = 63.2650 roubles) (Reporting by Moscow Bureau Writing by Andrew Osborn Editing by Jon Boyle) |
Is It Worth Buying FedEx Corporation (NYSE:FDX) For Its 1.6% Dividend Yield?
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Dividend paying stocks like FedEx Corporation (NYSE:FDX) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments.
A slim 1.6% yield is hard to get excited about, but the long payment history is respectable. At the right price, or with strong growth opportunities, FedEx could have potential. The company also bought back stock equivalent to around 4.0% of market capitalisation this year. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this.
Click the interactive chart for our full dividend analysis
Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. Looking at the data, we can see that 19% of FedEx's profits were paid out as dividends in the last 12 months. We'd say its dividends are thoroughly covered by earnings.
In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Of the free cash flow it generated last year, FedEx paid out 46% as dividends, suggesting the dividend is affordable. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.
Remember, you can always get a snapshot of FedEx's latest financial position,by checking our visualisation of its financial health.
From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. For the purpose of this article, we only scrutinise the last decade of FedEx's dividend payments. The dividend has been stable over the past 10 years, which is great. We think this could suggest some resilience to the business and its dividends. During the past ten-year period, the first annual payment was US$0.44 in 2009, compared to US$2.60 last year. Dividends per share have grown at approximately 19% per year over this time.
With rapid dividend growth and no notable cuts to the dividend over a lengthy period of time, we think this company has a lot going for it.
While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. Earnings have grown at around 10.0% a year for the past five years, which is better than seeing them shrink! With a decent amount of growth and a low payout ratio, we think this bodes well for FedEx's prospects of growing its dividend payments in the future.
Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. Firstly, we like that FedEx has low and conservative payout ratios. Next, growing earnings per share and steady dividend payments is a great combination. Overall, we think there are a lot of positives to FedEx from a dividend perspective.
Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 23 analysts we track are forecasting for FedExfor freewith publicanalyst estimates for the company.
If you are a dividend investor, you might also want to look at ourcurated list of dividend stocks yielding above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Is VWITX a Strong Bond Fund Right Now?
If you've been stuck searching for Muni - Bonds funds, consider Vanguard Intermediate-Term Tax-Exempt Investor (VWITX) as a possibility. VWITX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
Zacks categorizes VWITX as Muni - Bonds, which is a segment packed with options. Muni - Bonds funds invest in debt securities issued by states or local municipalities. These are generally used to finance construction of infrastructure, pay for schools, or other government functions. Some are backed by taxes (revenue bonds), while others are " general obligation " and may not be backed by a defined source. Investors usually appreciate the tax benefits that come with many municipal bonds, which are especially impressive for those in high tax brackets.
History of Fund/Manager
Vanguard Group is based in Malvern, PA, and is the manager of VWITX. Vanguard Intermediate-Term Tax-Exempt Investor made its debut in September of 1977, and since then, VWITX has accumulated about $3.52 billion in assets, per the most up-to-date date available. James M. D'Arcy is the fund's current manager and has held that role since June of 2013.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. VWITX has a 5-year annualized total return of 3.02% and it sits in the middle third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 2.6%, which places it in the middle third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of VWITX over the past three years is 3.13% compared to the category average of 5.98%. The standard deviation of the fund over the past 5 years is 2.7% compared to the category average of 6.05%. This makes the fund less volatile than its peers over the past half-decade.
Bond Duration
Modified duration is a measure of a given bond's interest rate sensitivity, and is a metric that's a good way to judge how fixed income securities will respond in a shifting rate environment.
For those that believe interest rates will rise, this is an important factor to consider. VWITX has a modified duration of 5.16, which suggests that the fund will decline 5.16% for every hundred-basis-point increase in interest rates.
Income
Income is often a big reason for purchasing a fixed income security, so it is important to consider the fund's average coupon. Average coupon is a look at the average payout by the fund in a given year. For example, this fund's average coupon of 4.82% means that a $10,000 investment should result in a yearly payout of $482.
If you are looking for a strong level of current income, a higher coupon is a good choice, though it could pose a reinvestment risk; these risks can occur if rates are lower in the future when compared to the initial purchase date of the bond.
Because income is only one part of the bond picture, investors should also consider risk relative to broad benchmarks. This fund has a beta of 0.88, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, VWITX has a negative alpha of -0.29, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, VWITX has 67.44% in high quality bonds rated at least 'AA' or higher, while 30.55% are of medium quality, with ratings of 'A' to 'BBB'. The fund has an average quality of AA, and focuses on high quality securities.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, VWITX is a no load fund. It has an expense ratio of 0.17% compared to the category average of 0.85%. VWITX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $3,000, and each subsequent investment should be at least $1.
Bottom Line
Overall, Vanguard Intermediate-Term Tax-Exempt Investor ( VWITX ) has a high Zacks Mutual Fund rank, similar performance, average downside risk, and lower fees compared to its peers.
Don't stop here for your research on Muni - Bonds funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare VWITX to its peers as well for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportGet Your Free (VWITX): Fund Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Bitcoin Price Rally Stalls as Open Futures Hit Record Highs
• The bitcoin price rally seems to have stalled near $9,300 with the price-volume analysis suggesting scope for a minor pullback to $9,000-$8,700.
• Record open interest in bitcoin futures listed on the Chicago Mercantile Exchange indicates a surge in institutional interest. So, pullbacks, if any, will likely be short-lived.
• The long-term technical charts indicate scope for a rally to $10,000 and above.
Bitcoin (BTC) is struggling to find acceptance above $9,300 even as futures listed on the Chicago Mercantile Exchange (CME) are witnessing record open bets.
The top cryptocurrency by market value is currently trading at $9,250, having hit a high of $9,362 earlier today, according to data sourceCoinMarketCap.
Notably, the cryptocurrency has failed at least two times in the last four days to hold on to gains above $9,300.
Related:‘Hard Core Fund’ Collects 50 BTC to Support Bitcoin Developers
For instance, prices hit a high of $9,318 at 08:00 UTC on June 16 only to fall back to $9,040 by 10:00 UTC. Similarly, the rise to $9,366 seen in the U.S. trading hours on June 17 was short-lived with prices falling back to $9,000.
While bitcoin bulls seem to be having a breather, the open bets in CME futures have hit record highs for two consecutive days.
The open interest – the number of contracts or commitments outstanding in futures at a given point of time – jumped to a record high of 5,311 contracts or $250 million on June 17 and hit a new lifetime of 5,391 on the following day.
It is worth noting that open bets have continued to risealong withthe price this year and are currently up almost 80 percent from the levels seen in June 2018.
Related:Bitcoin’s Price Snaps Longest Daily Win Streak Since 2018
A rise in open interest along with the rise in price mostly indicates long (buy) positions are being built up. As a result, bitcoin’srecent rallylooks sustainable – more so, as the CMEhas associatedrecord open bets with an increased institutional interest in the leading cryptocurrency.
Further, JPMorgan Chaserecently pointedto the difference between trading volumes on cryptocurrency exchanges and CME as a sign of increased institutional activity in bitcoin.
Therefore, the cryptocurrency looks set to test $10,000 and may possibly break higher, as suggested by long-term technical charts below.
The falling channel breakout confirmed in April indicates the path of least resistance is to the higher side. It is worth noting that a similar bearish channel breakout in October 2015 was followed by a 2.3-year bull run.
Also supporting the case for a rise to $10,000 and above is the bullish crossover of the 5- and 10-day moving averages.The long-term bullish outlook would be invalidated if the price finds acceptance below May’s low of $5,350, although that looks unlikely.
That said, the rise to $10,000 could be preceded by a temporary price pullback.
The above chart shows sell volumes (red bars) have been bigger than buy volumes (green bars) over the last four days on major exchanges included in the calculation ofBitwise’s“real” bitcoin trading volume.
As a result, the price may fall back below the support at $9,000. That would expose the ascending trendline, currently located at $8,690.
The case for a pullback would weaken if the price finds acceptance above $9,300 on the back of high volumes.
Disclosure:The author holds no cryptocurrency at the time of writing
Bitcoinimage via CoinDesk archives; charts byTradingView
• A New Bitcoin Exchange On the Colombian-Venezuelan Border Will Help Refugees
• 70% of Crypto Exchanges Have Complied With CoinMarketCap’s Transparency Initiative |
Blockchain lawyer Celine Moille says being a woman is ‘no obstacle’
Female engagement in Bitcoin recently hit a record high at 9.1% . This is good news for us women who made up just 3% of the Bitcoin pie last year. And it’s one of the many indicators that women in blockchain are on the rise. We may still be woefully outnumbered by the men, but awareness is spreading, and that’s the point. Coin Rivet spoke to blockchain lawyer Celine Moille to find out her take on the space. Stepping into the world of blockchain With a background in law, what was it that compelled Moille to get involved in emerging tech and specifically in blockchain? It turns out that she’s always had a passion for international issues and all things tech. She says: “I did a PhD in private international law, so I have always been interested in international regulatory issues. Blockchain and crypto are a new playground for me.” Moille spent several years working as a lawyer for companies and start-ups focused on new technologies before she became the co-founder of a legal tech firm focusing on debt recovery called DODOBANK . And when it comes to circling in on blockchain in particular, it was a no-brainer. Moille’s partner is the Honorary Consul of Malta. “As you know,” she says, “Malta is the ‘Blockchain Island’, one of the first countries in the world who decided to create rules for blockchain and crypto.” The greatest challenges of working with companies in this industry Moille reflects that perhaps the hardest part about working with companies in this space is that you must know “how to reconcile technology and law”. As the debate rages on over whether regulators even have any place in the cryptocurrency space, I ask what she thinks of the cypherpunk argument that KYC and Bitcoin are incompatible bedfellows. She doesn’t agree. “Even if at the beginning the idea was not to be regulated, we don’t live in the times of the Wild West anymore. Rules are essential if we want the community to trust this technology. The democratisation of the blockchain will happen through regulation.” It’s an interesting point that no single Bitcoin maximalist would agree with. However, as a legal professional in this space, it makes sense that Moille believes in regulation for good. On that note then, which countries does she think are getting it right when it comes to regulating the space? “Malta has opened the way in the European Union”, she replies in no uncertain terms. “France is now positioning itself very well since the adoption of the PACTE law . It’s very exciting! We have some well-known partners in Malta, Switzerland, and the US, and we want to work together in the blockchain space.” Story continues Will France succeed in thrusting its regulatory model on the rest of the EU? Moille calls the regulatory steps in her country “exciting”. But does she believe that there is one model, such as the French model, that other countries should accept? “It was a part of my thesis topic,” she replies. “Countries cannot remain insensitive to what happens in the international scene. There is an inevitable influence in local legislation.” So, in other words, each individual country will have the final say in how they regulate cryptocurrencies and blockchain technology. However, Moille believes that they will take inspiration and guidance from other jurisdictions. Right now, it happens to be France and Malta that are leading the way. How does Celine Moille feel about being a woman in this space? Just like anyone in this industry, male or female, her learning curve has been steep. After all, it takes some time to digest the concept of an alternative financial system with a censorship-resistant technology, as well as all the implications of that. She reflects: “It took a lot of time with the specialists to understand and learn. But we spent so much time exchanging that they became real coworkers, and we keep getting better and better!” And when it comes to being a female in a male-dominated space, well, Moille is just used to that, and isn’t intimidated in the slightest. “I do not think it’s an obstacle. You have to be a good professional, that’s all!” As for what can be done to encourage more women to get into blockchain, she says: “We must not believe that new technologies are reserved for men. I work with fantastic female lawyers who are often much more curious and imaginative than men! When you’re a young woman, with blond hair with a baby at home, and you want to be a lawyer in business law and new technologies, I have just one piece of advice: be yourself, be professional, and everything will be fine!” The post Blockchain lawyer Celine Moille says being a woman is ‘no obstacle’ appeared first on Coin Rivet . View comments |
Market Morning: Iran Downs Drone, Gold Breaks Through, Mexico Approves USMCA
The Persian Gulf is Boiling
Iranshot downa US drone in the Straits of Hormuz, the narrowest point of the Persian Gulf, the biggest oil shipping lane in the world. The Iran Revolutionary Guards claimed credit for the move, the first time the country has admitted to playing a role in blowing something up belonging to another country since tensions started to rise in the area ever since the Trump Administration reinstituted sanctions against the country. The hit happened in international airspace, which could intensify any excuse to strike back, since the US is allowed to fly drones over international airspace and shooting them down is a technically a “provocation”. The drone was an RQ-4 Global Hawk according to Iran, and a US Navy MQ-4C Triton according to the US. Iran claims it was shot down over Iranian airspace, and the US demurs. Oil is up on the news past $55 a barrel. (NYSEARCA:USO)
Gold Breaks Through 5-Year Resistance
Although rates were held steady yesterday after the Federal Open Market Committee meeting, the Federal Reserve clearly signaled to markets that rates would be cut after the next meeting. At least if they aren’t, stocks are going to crash, given the dovish wording and the universally noticed lack of the word “patience” when addressing possible rate cuts in its press statement. In response to this, in addition to the biggest month in terms of government spending in US history, and equal signals of easing coming out of the European Central Bank, gold pushed through 5-year resistance at $1390 last night, hitting a high of $1397, though has since pulled back to the mid-$1380’s. Gold is now up about 9% in a month. (NYSEARCA:GLD)
Call the Village People, Mexico Approves the USMCA
Mexicoapprovedthe United States Mexico Canada Agreement (USMCA), a rehash of the North American Free Trade Agreement (NAFTA), except it has the letters that President Trump wants in it instead. The deal was approved by a vote of 114-4, with three abstentions. Apparently, the threat of tariffs against Mexico made 2 weeks ago are now completely forgotten. With Mexico ratifying the agreement, the United States and Canada still have to give it the go-ahead. In order for that to happen, Democrats in the House of Representatives will have to resist the urge to mess up Trump’s plans, a prospect too tantalizing for them to bypass.
Blackstone Says that China Trade War Won’t Cause Recession
Blackstone (NYSE:BX) CEO Stephen Schwarzmanisn’t all that concernedabout the trade war with China and doesn’t think that it will cause a recession, though conceding that the whole ordeal is a “high-wire act,” though he seems to think that there are pillows to break the fall if they trip. “It’s not that big of a game to throw us into recession,” he told CNN Business in an interview. In one sense he may be right, in that the tariffs may not by themselves cause a recession, but if one is already coming, the tariffs will definitely make the situation that much worse. Schwarzman believes that upcoming talks between Trump and Xi, which were confirmed recently, would help reshape the relationship. Blackstone is at all time highs, and if Schwarzman is wrong, that means the stock could take a beating if he is positioning the investment group according to his positive economic outlook.
Gundlach Says Trump May Not Run for Reelection
If he’s down enough in the polls,he may not run, and he’s pretty down. If the economy goes into the crapper, “…there’s very little for him to run on ,” said the newly crowned “Bond King” Jeffrey Gundlach, who has apparently taken title from Bill Gross, the previous Bond King. Trump is trailing every Democratic candidate currently running, and even struggling to keep Texas, a typical GOP stronghold, against Joe Biden. “I am not even sure he’s going to really run,” said Gundlach to Fox’s Neil Cavouto, hedging his bets and not quite predicting that he will necessarily bow out. However, Trump is known to bail from fights that he thinks he cannot win. If he drops out, Vice President Mike Pence may take the baton, though China would certainly cheer if this were to be the case, since the trade war would quickly evaporate.
Deutsche Bank Get Punched in Gut, Again
Duetsche Bank (NYSE:DB), not having a particularly good decade, isbeing investigatedyet again for alleged crimes of money laundering. Shares are down 2.2% in the premarket in Germany, though the ADR is trading about 0.9% up in the wee hours in the United States. The situation is a bit complicated by the fact that Deutsche is a big lender to Donald Trump, which probably doesn’t want any more information out about his finances than is already exposed. The stock is skirting all time lows and has already publicized plans to stuff some of its bad assets into a bad bank and get out of the investment banking business, in favor of concentrating on transaction banking. Some of the problematic transactions being investigated have to with Trump’s son-in-law Jared Kushner, another thing the President has to worry about.
Facebook Libra bad for Bank Stocks
Speaking of bad banks, Facebook’s (NASDAQ:FB) new Libra cryptocurrency is particularly bad news for transaction banking, provided that banking regulatory authorities allow the project to go forward. Since the crypto will be backed by a basket of government fiat currencies, the price will be much more stable relative to these currencies than bitcoin (BTC-USD) is currently. Facebook will eventually allow libra to be transferred between people on the social networks, and since the Libra would represent currencies, it can earn a yield, allowing Facebook to become ade factoat much lower transaction costs, displacing the business of many a big bank.
The postMarket Morning: Iran Downs Drone, Gold Breaks Through, Mexico Approves USMCAappeared first onMarket Exclusive. |
UK interest rates: Bank of England holds rates at 0.75%
Bank of England governor Mark Carney speaks during an Inflation Report press conference in May. Photo: MATT DUNHAM/AFP/Getty Images The Bank of England on Thursday held the headline UK interest rate at 0.75%. The central bank delivered its June interest rate decision at 12pm on Thursday. The 9-person Monetary Policy Committee (MPC) voted unanimously to hold the bank borrowing rate at 0.75%. Analysts and economists had widely forecast this outcome. The MPC said UK economic growth appears to have “weakened slightly in the first half of the year” and said “downside risks to growth have increased.” “Globally, trade tensions have intensified,” the MPC said in a statement. “Domestically, the perceived likelihood of a no-deal Brexit has risen. Trade concerns have contributed to volatility in global equity prices and corporate bond spreads, as well as falls in industrial metals prices. Forward interest rates in major economies have fallen materially further.” Pound falls on decision The pound fell against the dollar and the euro in the immediate aftermath of the Bank’s decision, although not significantly. The pound was down about 0.1% against the euro at €1.123 10 minutes after the decision, having traded at €1.125 just before the announcement. Sterling was up 0.4% against the dollar at $1.269 but had been as high as $1.272 earlier in the morning. The drop-off came as investors judged that Thursday’s update meant a future interest hike from the Bank of England looked less likely. The Bank of England and governor Mark Carney have consistently said they plan to gradually raise the UK interest rate. The MPC said on Thursday that if the economy develops “broadly in line” with forecasts and there is a smooth Brexit, then “an ongoing tightening of monetary policy over the forecast period, at a gradual pace and to a limited extent, would be appropriate.” However, analyst and economists say the failure to resolve Brexit means the bank is unlikely to make any major changes this year. “Despite a growing number of hawkish signals coming from the Monetary Policy Committee, in reality the Bank’s room for manoeuvre is limited until Brexit uncertainty clears,” Tej Parikh, chief economist at the Institute of Directors, said in a statement. The MPC admitted on Thursday: “The economic outlook will continue to depend significantly on the nature and timing of EU withdrawal.” Brexit cloud hangs over the Bank Despite the Bank’s signals about raising rates, Investors believe the Bank of England is more likely to cut interest rates than raise them, according to market data ahead of Thursday’s announcement. The backdrop to Thursday’s decision was a mixed economic picture for the UK. Jobs and wage data has held up well so far in 2019, but GDP growth is sluggish and recent manufacturing data suggests it could remain that way. Story continues The MPC said on Thursday that recent data has been “volatile, in large part due to Brexit-related effects on financial markets and businesses.” However, the committee repeated the statement that its “response to Brexit, whatever form it takes, will not be automatic and could be in either direction.” Carney has in the past said that the Bank could raise interest rates in response to a no-deal Brexit, although economists and investors largely think he is bluffing. Central banks load the ‘bazookas’ The Bank of England’s decision to hold rates steady came as other major central banks this week signalled intentions to loosen monetary policy. European Central Bank chief Mario Draghi said earlier this week that more stimulus may be needed in the eurozone if conditions do not improve. The US Federal Reserve held its benchmark interest rate unchanged at 2.5% on Wednesday but signalled a future interest rate cut looks increasingly likely. READ MORE: Fed remains unchanged on rates, pledges to 'sustain the expansion' IMF head Christine Lagarde warned in January that “the world economy is growing more slowly than expected and risks are rising.” Conditions have not improved markedly since then, with key issues such as the US-China trade war and Brexit yet to be resolved. Bank of England governor Mark Carney will give a speech at the annual Mansion House dinner in London on Thursday evening. Carney could give more details on his outlook for the UK economy and future rate movements. View comments |
Mother lay dead in airing cupboard 'unnoticed' for 15 months
Victoria Cherry's body was found badly decomposed in a cupboard at boyfriend Andrew Reade's house 15 months after she disappeared (GETTY) A mother-of-three's body was left undiscovered for over a year before it was discovered due to 'serious failings'of professionals. Victoria Cherry went missing but her body was discovered 15 months later at boyfriend Andrew Reade's house in Bolton in January 2017. Ms Cherry's body was so badly decomposed that investigators were unable to determine a cause of death. Andrew Reade was initially charged with murder but prosecutors had insufficient evidence to charge (PA) The Manchester Evening News reports how Reade was at first arrested for her murder. But the decomposition of her body was so bad that prosecutors had little evidence to prosecute. Reade was initially arrested on suspicion of her murder. Read more on Yahoo News UK: Man, 52, dies after bar brawl at Butlin's holiday camp Black cab rapist John Worboys admits four additional sex attacks Teen suffers shattered jaw after vape explodes in his mouth But the state of her body left detectives with insufficient evidence to prosecute. In June 2017, Reade was sentenced to 4 years in prison for preventing the unlawful burial of a body and perverting the course of justice. A Domestic Homicide Review was launched to find out how Ms Cherry’s disappearance went unnoticed by police and other services for so long. A review found mother of three Victoria Cherry was not discovered due to a lack of communication between protection agencies (PA) The review found agencies involved with the couple did not communicate, and that no sign of domestic violence had been found. Report author David Mellor, who is a retired police officer, said: “The failure of agencies in contact with [Reade and Ms Cherry] to enquire about and share concerns in respect of Michelle’s sudden disappearance contributed to the delay in discovering [Ms Cherry’s] body. “The delay in discovering [Ms Cherry’s] body meant that it was not possible to determine the cause of her death. “If [Reade] did in fact murder her, the delay in finding her body enabled him to evade justice.” General view of Bolton Crown Court, Bolton. A series of 42 recommendations are made in the report for improvements by nine of the agencies involved with Ms Cherry and Reade and five multi-agency recommendations. Responding to the review and recommendations. Chief Supt Stuart Ellison, chairman of Be Safe Bolton Strategic Partnership, said: “This is a very tragic case and on behalf of the partnership, I would like to express our sincere condolences to the family. Story continues “We commissioned the review to see if there were any lessons to be learned to improve the way we work together to protect victims of domestic abuse. “The panel’s findings and recommendations have been shared with all the agencies involved in the review. Clearly there are things that could have been done better. |
Slack stock surges at debut, values company at more than $23 billion
By Carl O'Donnell and Joshua Franklin
NEW YORK (Reuters) - Shares of Slack Technologies Inc, the fast-growing workplace messaging and communication platform, soared nearly 50% in their public trading debut on Thursday, valuing the company at more than $23 billion.
The strong performance helped validate the unusual direct listing model the company used to go public as well as underscoring investor demand for business software makers. The stock closed at $38.62, compared with the New York Stock Exchange's reference price of $26 apiece.
Trade opened midday at $38.50.
Slack's direct listing differs from a traditional IPO because it does not raise fresh funds. The method was pioneered last year by music streaming business Spotify Technology SA.
Slack's trading price gave it a valuation of more than 50 times revenue. That multiple is lower than for other tech companies' IPOs like Zoom Video Communications Inc, which trades at 88 times revenue, but is very high considering that Slack is not yet profitable, said Kathleen Smith, a principal and manager of IPO ETFs at Renaissance Capital.
"They are going to have to do an awful lot to get the company's fundamentals to justify that kind of valuation," she said.
Slack is a business-focused messaging and communications platform, similar to group chatrooms, with the ability to collaborate on documents and order conversations by groups and themes.
The Slack tool began as an internal project to improve communications at video game company Tiny Speck, which eventually became Slack Technologies and focused on developing the communications software.
Slack's listing opened with about 40 million shares trading to outside investors, providing better-than-expected liquidity for the stock, a person familiar with the matter said.
The debut follows a spate of high-profile technology IPOs, some of which, including Uber Technologies Inc and Lyft Inc, had disappointing starts to trading.
The direct listing model offers Slack an opportunity to save significantly on investment banking fees and avoid restrictions on insider stock sales.
"We think a direct listing is a more effective and efficient way to get to a normalized level of supply and demand without the constraints of an IPO,” said Allen Shim, Slack's chief financial officer.
Slack's direct listing could have implications for other large technology companies such as Airbnb Inc, which is considering going public through a similar approach, one person familiar with the matter said.
The strong open built on a string of successful IPOs for enterprise software companies, said Alejandro Ortiz, a principal analyst at SharesPost.
"Investors have a love affair with enterprise software companies, and with good reason. They continue to perform very well," he said.
Recent enterprise software IPOs include Crowdstrike Holdings Inc and Zoom. Enterprise software IPOs over the past 12 months are trading, on average, at more than 100% above their IPO price, Ortiz said.
Spotify's direct listing in April 2018 was perceived as a success at the time, although shares have fallen as the company sacrifices profit margins for growth.
"Direct listings are still a pretty new vehicle," Fiverr International Ltd Chief Executive Officer Micha Kaufman said in an interview last week after the Israel-based company, which offers an online marketplace for freelance services, went public.
"But it's definitely more appropriate for companies that have raised larger sums for longer periods of time in the private market, and are really wanting to give their investors an upside or an exit."
Revenues for San Francisco-based Slack soared more than 80% to $400 million in 2018, but it reported losses from operations of $143.85 million. It has more than 90 million users but so far has only around 100,000 paid customers.
"We are in a growth phase right now and we are continuing to invest, but we expect to hit breakeven cash flow soon," CFO Shim said.
(Reporting by Joshua Franklin and Carl O'Donnell in New York; additional reporting by Aparajita Saxena in Bengaluru; Editing by Peter Henderson, Cynthia Osterman, Jeffrey Benkoe and Tom Brown) |
Bank of England chops second-quarter growth forecast, sees bigger global and Brexit risks
By Andy Bruce and William Schomberg
London, Reuters - The Bank of England cut its growth forecast for Britain's economy to zero in the second quarter of 2019 and highlighted risks from global trade tensions and growing fears of a no-deal Brexit.
BoE officials voted unanimously to hold interest rates at 0.75%, as expected, and stuck to their message that rates would need to rise in a limited and gradual fashion, assuming Britain can avoid a damaging no-deal Brexit.
However, the BoE noted on Thursday a darkening global outlook that has already prompted the European Central Bank, U.S. Federal Reserve and Bank of Japan to signal this week that more stimulus could be on the way.
Britain's economy is now on track to stagnate in the second quarter, the BoE said, rather than grow 0.2% quarter-on-quarter as it had predicted last month, citing the run-up in stockpiling earlier this year by many companies ahead of an original Brexit deadline in March.
"Globally, trade tensions have intensified. Domestically, the perceived likelihood of a no-deal Brexit has risen," the BoE said in its policy statement.
Former foreign secretary Boris Johnson is the front-runner in the race to succeed Prime Minister Theresa May. He and other contenders have said they are prepared to lead Britain out of the European Union without a deal, if necessary.
The BoE said financial conditions in Britain had loosened since last month, which mechanically would feed through into stronger forecasts for economic growth, excess demand and inflation.
But it highlighted a mixed picture for inflation pressures. There are increasing signs that wage growth is levelling off, the BoE said, although the labour market remained tight
(uk.economics@reuters.com) |
HIGHLIGHTS-Vladimir Putin's annual question and answer session
(Adds quotes)
MOSCOW, June 20 (Reuters) - Following are highlights of Russian President Vladimir Putin's annual question and answer session which was broadcast live on state television on Thursday.
See stories here:
ON DUTCH ALLEGATIONS RUSSIA WAS LINKED TO 2014 DOWNING OF MH17 PASSENGER PLANE OVER UKRAINE
"Russia has never evaded responsibility when responsibility lay on its shoulders. What was presented as proof of Russia's responsibility does not satisfy us at all. There is no proof there. Eveyrthing that was presented does not say anything. We have our own version, we have presented it. But unless we have normal dialogue, we won't find the right answer to the questions that remain unanswered."
ON POSSIBLE U.S. MILITARY ACTION AGAINST IRAN
"This would be a catastrophe for the region, at the very least. Because this would lead to a surge in violence and, maybe, an increase in the number of refugees from the region. For those who would make such attempts, it could also have gloomy consequences, because it's very difficult to work out in advance what may follow the use of military force."
"We would not want this scenario to unfold."
ON ALLEGED CYBER ATTACKS AGAINST RUSSIAN INFRASTRUCTURE
"First of all we more than once offered our American partners to start a dialogue to come up with cyber space regulations, including those that have impact on strategic infrastructure and the media. But we haven't received any cohesive response yet.
ON TIES WITH WASHINGTON
"Dialogue is always good and needed. If the American side shows interest, of course we are ready for such dialogue. We see what is happening in U.S. domestic politics. There are many restrictions from different institutions, so I think it won't be that easy... We have things to discuss, both in the field of international security and the economy, among other things."
ON CAPTURED UKRAINIAN SAILORS
"The release of the Ukrainian sailors who were detained as part of an incident near the Kerch Strait.... issues like this should not be resolved in isolation. Before resolving these issues, we should think about how to resolve the fate of people we are concerned about, including Russian citizens who are in a similar situation in Ukraine."
ON SANCTIONS
"We are accused of occupying Donbass (in Ukraine) - That's complete nonsense and lies. But China has nothing to do with it (Ukraine). (U.S.) tariffs on its goods are essentially sanctions as well. They are growing and growing."
"As for sanctions, my point of view is that it's a big mistake from the American side. I hope that one day the realisation will come and that this will be fixed."
ON U.S. RESTRICTIONS ON HUAWEI
"An attack on Huawei. Where did it come from? And what is the point of it? The only point is to hold back China's development, which has become a global competitor for another global power - the United States. The same thing is happening in respect of Russia and will be happening going forward."
ON RUSSIANS' REAL DISPOSABLE INCOMES
"It's true that real incomes have been falling for several years. The biggest fall was in 2016, but now incomes have gradually started to recover."
ON CONSUMER LENDING
"One of the significant elements of (household) expenses today are loan repayments. Banks today give out loans that are secured against 40 percent of wages, which is risky. In my opinion, the central bank should pay attention to this, because we don't want to create these bubbles in the economy."
ON RUSSIA'S NEW INTERNET LAW
"This has nothing to do with restrictions on the Internet. We have already spoken about Chinese firm Huawei. The United States took a decision and restricted its operations. Most servers are abroad. I hope it won't come to this (the U.S. switching off servers to hurt Russia), that they won't go that far because it would destroy their own system... but in theory, if these servers were switched off and their operations compromised, then we have to ensure that the "Runet," the Russian segment of the Internet, functions in a reliable way." (Reporting by Moscow bureau) |
QuadrigaCX CEO Set Up Fake Crypto Exchange Accounts With Customer Funds
QuadrigaCX’s late founder and CEO used customers’ funds to trade for his own account on other cryptocurrency exchanges, the Canadian firm’s bankruptcy trustee said.
In a bombshell 70-pagereportreleased Wednesday, Ernst & Young claimed that Gerald Cotten, who apparently died last December, transferred millions of dollars in crypto out of customer accounts and into other exchanges, with the funds being used to furnish Cotten’s personal lifestyle and trading habits. Overall, it appears that Cotten effectively stole more than $200 million USD from his customers.
“Significant volumes of Cryptocurrency were transferred off Platform outside Quadriga to competitor exchanges into personal accounts controlled by Mr. Cotten,” the report said. “It appears that User Cryptocurrency was traded on these exchanges and in some circumstances used as security for a margin trading account established by Mr. Cotten.”
Related:Binance to Launch Bitcoin-Pegged Token on Its Own Blockchain
Fees and trading losses “appear to have adversely affected Quadriga’s cryptocurrency reserves,” while other sums were sent to wallets whose owners EY could not confirm.
Between 2016 and the end of 2018, Cotten transferred 9,450 bitcoin, 387,738 ethereum and 239,020 litecoin out of his exchange’s accounts (respectively, $88 million, $105 million and $33 million USD at present market prices, though their values have fluctuated – and increased dramatically – over that time).
Cotten also appears to have created fake accounts on Quadriga, credited them with fiat amounts that did not actually exist, and use this fake fiat to purchase actual crypto from customers, with the largest account using the nameChris Markay.
Later, the report says that Cotten margin traded zcash, dash, dogecoin and omisego, where he “generated substantial losses.”
Related:Korean Crypto Exchanges Update Terms to Accept Liability for Hacks
An unidentified third exchange received 21,501 bitcoin ($201 million in today’s prices) into an account under Cotten’s name. All but 8 bitcoin were liquidated, netting some $80 million CAD ($60.4 million USD).
While this exchange is not cooperating with EY, it is cooperating with local authorities in its jurisdiction. EY is now looking to open “formal channels” with these authorities.
Evan Thomas, a litigator with Osler Hoskin & Harcourt in Canada, told CoinDesk that “based on the report, what [Cotten] did was clearly fraudulent and betrayed the trust of Quadriga users.”
Cotten’s actions could not have been an accident, Thomas indicated, saying:
“It’s possible that he got in over his head and was trying to trade his way out out of a deficit using other people’s money, but given that the fake accounts have existed since at least 2016 and he misappropriated funds for luxury travel and real estate investments, it seems more likely that this was a calculated and deliberate fraud.”
QuadrigaCX filed for protection from creditors in January,owing customers $190 millionworth of crypto and fiat, most of which it could not access because only its late CEO Gerald Cotten knew where the private keys were.
EY’s hunt for the missing funds, first as court-appointed monitor and then as trustee when QuadrigaCXformally entered bankruptcyin April, has largely been fruitless.
As of May, the estate had just$21 million of assets to cover $160 millionin remaining liabilities, though the most recent report brings the sum closer to $24.5 million.
TheU.S. FBIis looking into the losses, as areCanadian authorities.
EY’s report also detailed rampant mismanagement and poor practices, noting that Quadriga did not keep administrative logs and had no contingency plan for the loss of funds or its leader.
What’s more, the exchange seemingly engaged in poor accounting practices.
For example, the exchange paid two of its nine payment processors $11.8 million CAD (roughly $9 million USD) in fees alone.
Quadriga did not maintain any documentation, however.
“The Monitor has been unable to locate any accounting with respect to the pooled Quadriga Funds,” the report said. “The Monitor notes the TPP accounts were used to process User Fiat transactions, fund general Quadriga operating costs and on multiple occasions funds were directed to Mr. Cotten, parties related to Mr. Cotten or counsel/parties acting on his behalf.”
It went on to add:
“It appears that as and when operating expenses were required to be paid, or when Mr. Cotten desired funds to be transferred to himself or related parties, he simply instructed TPPs to issue payments with no oversight.”
EY also believes that properties in Nova Scotia, properties in British Columbia, investment securities, cash holdings, a boat, an aircraft, luxury vehicles and gold and silver coins that purportedly belonged to Cotten, and now belong to his widow Jennifer Robertson were paid for using Quadriga’s customers’ funds, and therefore should be liquidated.
“As Mr. Cotten’s and Ms. Robertson’s personal expenditures and the accumulation of their personal assets since 2015 was sourced from Quadriga funds, the Trustee intends to seek the recovery of the Preserved Assets subject to the Asset Preservation Order back to the Estate for immediate liquidation on the basis that the funds which Mr. Cotten directed be paid to them constitute preferences or transactions at under value under the BIA and may be subject to other causes of action asserted by the Trustee,” EY wrote.
The proceeds from these sales, if successful, will go to the creditors’ estate, and could total as much as $12 million CAD ($9 million USD).
In a separate filing, EY outlined the process that former QuadrigaCX users who lost money when the exchange went belly-up should follow to file claims.
“Users will be requested to complete and deliver their Proofs of Claim to the Trustee prior to 5:00 p.m. (Halifax time) on August 31, 2019 (the ‘Claims Submission Date’),” EY said.
EY acknowledged in the filing that creditors have encountered difficulty finding the information they need to prepare claims because Quadriga’s website has beendown since January.
A committee and lawyers representing users “have expressed concern with the platform site being offline as Users cannot access statement details or information necessary to complete their claims,” EY said.
In response, EY says it worked with the creditors’ lawyer to help users find ways to retrieve account balance information.
That process involves anonline portalwhere users are asked to type in their QuadrigaCX account number and first name.
“If a match is found, your balances will be displayed,” the EY-built web page says, warning: “Be sure to print or screen capture the results.”
EY added that it is “mindful of User privacy concerns which [were] also taken into account in preparing the claims process.”
The auditing firm has also modified the standard form for bankruptcy claims “in order to fit Quadriga’s unique circumstances of having claims against it denominated in Cryptocurrency and Fiat,” EY said.
The form, which misspells the word “ethereum” and is interrupted by a page break in the filing, looks like this:
Thomas told CoinDesk that based on the new reports, there may not be much for customers to recover.
“Right now, it looks like the primary source of recovery for creditors will be the fiat and the frozen assets,” he said, concluding:
“The report doesn’t address potential damages claims against other parties but that may be something the trustee will consider.”
Nova Scotia Supreme Court image via Nikhilesh De for CoinDesk
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Announcing: Planet 13 Holdings (CNSX:PLTH) Stock Increased An Energizing 175% In The Last Year
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Unless you borrow money to invest, the potential losses are limited. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, thePlanet 13 Holdings Inc.(CNSX:PLTH) share price had more than doubled in just one year - up 175%. On top of that, the share price is up 48% in about a quarter. The company reported its financial results recently; you can catch up on the latest numbers by readingour company report. We'll need to follow Planet 13 Holdings for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
See our latest analysis for Planet 13 Holdings
Planet 13 Holdings isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Planet 13 Holdings grew its revenue by 175% last year. That's well above most other pre-profit companies. And the share price has responded, gaining 175% as we previously mentioned. That sort of revenue growth is bound to attract attention, even if the company doesn't turn a profit. The strong share price rise indicates optimism, so there may be a better opportunity for buyers as the hype fades a bit.
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.
Thisfreeinteractive report on Planet 13 Holdings'sbalance sheet strengthis a great place to start, if you want to investigate the stock further.
It's nice to see that Planet 13 Holdings shareholders have gained 175% over the last year. A substantial portion of that gain has come in the last three months, with the stock up 48% in that time. This suggests the company is continuing to win over new investors. Before spending more time on Planet 13 Holdingsit might be wise to click here to see if insiders have been buying or selling shares.
For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Aerospace executives look on bright side of United Tech, Raytheon deal
By Andrea Shalal
PARIS, June 19 (Reuters) - Aerospace executives see potential benefits from the surprise merger of Raytheon Co and United Technologies, including the prospect for better margins for suppliers and perhaps the chance to bid for any units put up for divestment.
Most dismissed any suggestion that the merger could trigger similar moves among players in the more fragmented European industry, noting that national loyalties and different market conditions will limit cross-border transactions on such a scale.
The $121 billion merger, announced last week, would reshape the competitive landscape by forming a U.S. conglomerate which spans commercial aviation and defense procurement.
United Technologies provides primarily commercial plane makers with electronics, communications and other equipment, whereas Raytheon mainly supplies the U.S. government with military aircraft and missile equipment.
Airpane makers Airbus and Boeing have said they will study the merger carefully, but other U.S. and European executives said they did not expect a significant impact to their businesses.
Alessandro Profumo, chief executive of Italy's Leonardo SpA , which builds helicopters and is a partner in the Eurofighter Typhoon consortium, told Reuters there could be some consolidation along business lines, but not in the near future.
"The aerospace and defence sector in Europe ... is a completely different competitive landscape," he said at the Paris Airshow.
"So the consolidation process will face difficulty because the capabilities are still very nation-based."
Michael Schreyoegg, chief programme officer at Germany's MTU Aero Engines, said MTU viewed the Raytheon-UTC merger as positive since it would strengthen the ability of United Technologies to invest in future joint projects.
He said he did not expect any impact on MTU's longstanding strategic partnership with United Tech's Pratt & Whitney engine making unit, which is mirrored by the partnership France's Safran has with General Electric.
"In sum, we see it positively. We expect to have a larger and stronger partner at our side, who can make decisions beyond the business cycles," Schreyoegg told reporters at the Airshow. "In the end, I'd rather have a stronger partner than someone who is limited in their ability to invest."
In fact, he said, to the extent that the combined company was able to negotiate better terms with Airbus and Boeing, that would also benefit MTU and other second-tier suppliers.
Aerospace consultant Richard Aboulafia said the merger would boost pressure for further consolidation in the overall aerospace market, including in Europe, but the pace of change might not be fast.
"It's been a very slow multi-decade process. It's not like you're suddenly at a competive disadvantage, but it's inexorable," he said.
Israel's Elbit Systems said the merger could also result in possible acquisition targets that could boost its bid to expand in the United States, if regulators insisted on any divestments.
Elbit already scooped up the night vision business of Harris Corp as a result of divestments ordered as a result of its merger with L3 Technologies. (Reporting by Andrea Shalal Editing by Keith Weir) |
Sparkly unicorn ice cream: Kroger’s bid to win grocery wars
(This June 20 story is refiled to correct typographical error in paragraph five.)
By Emma Thomasson and Richa Naidu
BERLIN/CHICAGO (Reuters) - Kroger Co has room to improve on sales and is looking to its Deluxe Unicorn Swirl ice cream and other store-brand products to boost growth, Chief Executive Rodney McMullen said on Thursday.
Multicolored, sparkly ice cream is an unlikely battleground in U.S. grocery stores. But Kroger Co believes trendy house-brand items like Unicorn Swirl will help it win market share from Walmart Inc, Aldi and Amazon.com Inc.
"We know we can do better when it comes to identical sales results," McMullen told analysts after Kroger posted quarterly same-store sales below Wall Street estimates, sending its shares down 2.5%.
The grocer's store-brand business was one of its most powerful tools, McMullen said.
Kroger's own brand sales for the quarter rose 3.3%. Unicorn ice cream, pork belly bites and artisan jerky were among 219 new store brand items that boosted sales by $225 million.
By churning out new house-brand items, Kroger hopes to tap into broad sales growth for private labels. The push comes as grocers compete fiercely on price and race to expand online ordering and delivery, an area where the biggest U.S. grocery chain has lagged.
Kroger added 1,022 "own brand" items in 2018, and each supermarket on average stocks more than 15,000 private-label products such as pet food, clothes, furniture, meal kits and office supplies. Kroger's 16 house brands account for more than 30% of unit sales, the company said in March.
"We don't see this slowing down at all," McMullen had told Reuters in a separate interview in May.
Cincinnati-based Kroger has long made store brands that compete with name brands from Kraft Heinz Co, Nestle and others. But it started focusing more on its own brands in 2012 and flagged them as key to reviving sales growth when introducing its “Restock Kroger” plan two years ago.
Graphic on store brand growth: https://tmsnrt.rs/31Ff7UN
Kroger's Simple Truth line hit $2.3 billion in annual sales to become the biggest U.S. natural and organic brand, the grocer said in March. Sales of its Kroger range and premium Private Selection food line are also growing, with the total own brand portfolio expanding 45% since 2011.
Starbucks Corp kicked off the unicorn food craze in 2017, sparking a social media frenzy with its pink and blue Unicorn Frappuccino. Breakfast cereal and cake followed, and Target Corp launched a cherry-flavored Unicorn Magic ice cream last year.
Kroger debuted its cake batter-flavored Unicorn Swirl in March, and saw more than 2.5 million likes and shares on social media for the product on National Unicorn Day on April 9.
"Kroger has been very clever about expanding into rapidly growing categories," said Neil Saunders, who heads retail consultancy GlobalData, highlighting brands like Simple Truth and Home Chef meal kits.
Simple Truth has likewise benefited from a social media boost. Kayla Schneider, 28, a vegan receptionist and beauty advisor from Fenton, Michigan, has 11,000 Twitter followers and earlier this year tweeted when Simple Truth vegan ice cream went on sale.
“I have a lot of followers who also share my type of diet and I like sharing new finds/yummy products so they can try them out as well,” Schneider said in a Twitter direct message.
Almost half of Kroger's private-label grocery lines, including bakery and dairy items, are produced in its 37 plants, giving it an advantage when it comes to creating and testing out items.
Kroger makes more in-house than other U.S. retailers, with Walmart outsourcing all store-brand production until very recently, when it opened a dairy in Indiana, retail consultant Roger Davidson said.
"They (Kroger) are very serious about private label and in my opinion better than any consumer goods company in the U.S.," said Davidson, who used to oversee food procurement at Walmart. "Big CPG companies are really struggling," he said, referring to consumer packaged goods makers.
Kroger has been looking for ways to claw back market share from Walmart, the world's biggest retailer, and German discount chain Aldi. It also has to grapple with Amazon's fast-growing private-label sales, both online and in Whole Foods.
MARGIN PRESSURES
Soaring commodities and freight costs have pressured margins at companies like Procter & Gamble Co and Unilever PLC in recent years, making it harder for them to compete.
Meanwhile, Kroger's private-label margin is typically 600 to 800 basis points higher than that of big consumer brands, McMullen said on Thursday.
Private-label products on average are about 20% less expensive than branded goods, according to data from market research firm IRI.
At a Kroger-owned Mariano's in Chicago, 24 bottles of own-brand water cost $2.50 versus $4.99 for Nestle's Pure Life, for instance. The world’s No.1 consumer company said in April there was no point in Pure Life trying to outcompete private-label bottled water.
Own-brand products made up 14.9% of U.S. store sales in 2018, up half a percentage point, with frozen, pet and baby products growing fastest and millennials buying most, according to IRI.
That compares with an international average of 39.4%. The share is highest in Britain at 52.5%, in part due to discounters like Aldi.
Aldi is expanding rapidly in the United States and seeks to become the No.3 U.S. grocery chain with 2,500 stores by 2022. It sells products that are almost entirely house brand.
KETO, PALEO, FLEXITARIAN
Kroger has a 400-person team developing its brands. The company poached Gil Phipps in 2012 from Texas-based retailer H-E-B, which has sought to emulate British store brand leaders like Sainsbury's since the 1990s.
But Walmart has also been adding private labels, while already squeezing Kroger on price and outperforming on e-commerce and automation.
In March, Walmart launched its Hello Bello line of plant-based baby products with actor couple Kristen Bell and Dax Shepard. A month later, it introduced Unicorn Sparkle ice cream selling for $2.24 for 48 ounces, compared to $2.50 for Kroger's Unicorn Swirl.
As part of the "Restock Kroger" drive, the company is also investing in store revamps and delivery, although a joint venture with British online grocer Ocado is taking time to ramp up.
"I worry whether Kroger is really keeping the end consumer in mind. They have so many irons in the fire," said consultant Davidson.
(Additional reporting by Siddharth Cavale in Bengaluru and Nandita Bose in Washington; Editing by Meredith Mazzilli) |
Olivia Newton-John is auctioning her iconic outfit from 'Grease' for her cancer charity
Olivia Newton-John and John Travolta in Grease (Credit: Paramount) Olivia Newton-John is putting her iconic outfit from Grease up for auction, with the proceeds going to her cancer charity. It's expected that the leather jacket and skin-tight trousers, which Newton-John had to be sewn into on set, could fetch up to £160,000 when they go under the hammer. Read more: New Adam Sandler movie breaks Netflix records The items are among a lot of 200 costumes and other items that the actress is auctioning, to raise money for the Olivia Newton-John Cancer Wellness & Research Centre in Melbourne, Australia, her hometown, which provides cancer treatment and education. She's also selling off her original script from the movie, which is thought could make over £3000, and a 10-times platinum record for the film's soundtrack album. Olivia Newton-John (Credit: AP) Elsewhere, there's a custom-made Pink Ladies jacket, which was presented to Newton-John on set by the film's cast and crew, likely worth £3150. The auction happens on November 2 in Beverly Hills, via Julien’s Auctions . Speaking to Nine.com , she said: “I’ve decided it’s the right time to do some good and auction them off to benefit the Olivia Newton-John (ONJ) Cancer Wellness & Research Centre in Melbourne, Australia. Read more: Disney unveils new Pixar movie Soul “It’s exciting to know that the costume will have a bigger purpose. Grease changed my life, and now it can help change the lives of others too.” Newton-John is currently undergoing treatment for breast cancer, after first beating it in the 90s. She recently spoke out about her use of cannabis, grown by her husband, a natural health entrepreneur, to treat her symptoms. She told People : “My husband hands me all these herbs every morning and makes me a green algae drink. “He grows the plants and makes them into liquid for me. I take drops maybe four to five times a day. It has helped incredibly with pain maintenance and sleep. It’s an amazing plant, a maligned plant, but it’s helping so many people.” |
Are Dover Corporation's (NYSE:DOV) Interest Costs Too High?
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The size of Dover Corporation (NYSE:DOV), a US$14b large-cap, often attracts investors seeking a reliable investment in the stock market. Big corporations are much sought after by risk-averse investors who find diversified revenue streams and strong capital returns attractive. However, the key to extending previous success is in the health of the company’s financials. Let’s take a look at Dover’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysisinto DOV here.
See our latest analysis for Dover
Over the past year, DOV has maintained its debt levels at around US$3.5b – this includes long-term debt. At this constant level of debt, DOV's cash and short-term investments stands at US$243m , ready to be used for running the business. Additionally, DOV has generated cash from operations of US$788m during the same period of time, leading to an operating cash to total debt ratio of 23%, meaning that DOV’s operating cash is sufficient to cover its debt.
At the current liabilities level of US$1.9b, the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.3x. The current ratio is the number you get when you divide current assets by current liabilities. Usually, for Machinery companies, this is a suitable ratio as there's enough of a cash buffer without holding too much capital in low return investments.
With total debt exceeding equities, Dover is considered a highly levered company. This is not unusual for large-caps since debt tends to be less expensive than equity because interest payments are tax deductible. Consequently, larger-cap organisations tend to enjoy lower cost of capital as a result of easily attained financing, providing an advantage over smaller companies. We can assess the sustainability of DOV’s debt levels to the test by looking at how well interest payments are covered by earnings. Ideally, earnings before interest and tax (EBIT) should cover net interest by at least three times. For DOV, the ratio of 7.98x suggests that interest is well-covered. Large-cap investments like DOV are often believed to be a safe investment due to their ability to pump out ample earnings multiple times its interest payments.
At its current level of cash flow coverage, DOV has room for improvement to better cushion for events which may require debt repayment. However, the company exhibits proper management of current assets and upcoming liabilities. This is only a rough assessment of financial health, and I'm sure DOV has company-specific issues impacting its capital structure decisions. I suggest you continue to research Dover to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for DOV’s future growth? Take a look at ourfree research report of analyst consensusfor DOV’s outlook.
2. Valuation: What is DOV 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 DOV 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. |
Is Barrick Gold Stock Must-Buy Recession Insurance?
Barrick Gold(NYSE:GOLD) has been coming back to life in recent weeks. While GOLD stock was flirting with a fall below $11.50 just a few weeks ago, it’s now trying to hold onto a potential breakout over $14. Is this 23% rally in just a few weeks too much, or is Barrick Gold stock set to continue running?
Source:Bullion Vault via Flickr (Modified)
Simply put, GOLD stockgenerally acts as a proxyto gold prices. When uncertainty, fear and recession worries climb, often times the yellow metal does too. Currently, there’s a lot of that going around.
Even though stocks are near all-time highs and the labor market is strong, worries about a recession persist.The odds of a recessionare on the rise, increasing the probability, but far from guaranteeing an economic retreat. Those odds are based on the yield curve. As the curve compresses, it raises the odds for a recession. When it inverts it has an eerie ability to foreshadow a recession.
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These trends get more complex when considering the Fed’s role alongside global central banks. Because the global economy has maintained such low rates, it’s created immense demand for longer-dated U.S. Treasury bonds. They are safer from a credit perspective and have a far more attractive yield than all of its peers. For instance, why buy a French 10-year bond with a slightly lower rating yielding close to 0%, when you can buy a 10-year Treasury yielding ~2.1% right now?
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While U.S. rates are historically low, they are high a global basis at the moment.
That’s driving long-term rates down at a time where the Fed was raising rates, helping to fuel an inversion. Now, odds call for a rate cut. And in fact, not just one but several.The market is pricingin a 94% chance that the Fed cuts rates by its September meeting. Investors are pricing in an almost 50% chance oftwocuts by the same meeting.
Wow.
So what does all of that have to do with Barrick Gold stock? A lot, actually.
If the Federal Reserve cuts rates, it could give a boost to gold prices. That’s as it weakens the U.S. dollar and causes commodities to rise. Think of a company likeExxon Mobil(NYSE:XOM) orChevron(NYSE:CVX) when oil prices catch a boost. The same can happen for GOLD stock.
As long as there are worries — think: trade war or recession related — they could also act as catalyst for gold prices.
As it relates to GOLD stock, analyst estimates aren’t bad, but are far from robust. Analysts expect revenue to grow 14.5% this year to $8.3 billion. Earnings are expected to grow 8.6% to 38 cents per share. That leaves GOLD stock with a price-to-earnings ratio in the mid-30s, which is not exactly value territory.
At the start of the year, Barrick completed its merger with Randgold Resources. This formed a $25 billion precious metal conglomerate. However, it didn’t take long for the new entity to pursueNewmont Mining(NYSE:NEM). Newmont rejected the bid, and the two eventually decided on a joint-venture partnership instead. But it’s clear that GOLD management has margin improvement and synergies in mind.
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Even with $5.5 billion in long-term debt and $2.15 billion in cash, GOLD stock has a solid balance sheet. The fact that investors can collect any kind of dividend yield is nice too, given that they don’t receive any income from gold. Currently that yield is about 1.1%. Barrick is far from a mega-income generator, but it’s better than nothing
Click to Enlarge
So where do we stand in all of this? Barrick Gold stock has decent but not great growth, a good balance sheet and a so-so, earnings-based valuation. But at the end of the day, it’s a gold miner and that means it depends on the price of gold to drive its share price. It’s worth pointing out that GOLD stock tends to outperform gold during the good times, but underperforms during the bad times.
That’s no surprise to anyone that follows theVanEck Vectors Gold Miners ETF(NYSEARCA:GDX) or theVanEck Vectors Junior Gold Miners ETF(NYSEARCA:GDXJ). These follow a similar pattern when tracking against theSPDR Gold Trust ETF(NYSEARCA:GLD).
With GOLD stock price, we can see thatshares broke out over range resistance at $14. Shares ran up to almost $14.50, where Barrick Gold stock topped out at in March. The trade now is simple — and simple is good.
Over $14 and investors can stay long the breakout. Below $14 and GOLD stock may need to reset. Perhaps that’s with a test of the 20-day moving average. Maybe it’s the 50-day. It may even fall back into its prior range and probe the range lows near $11.50 to $12.
But over $14 could get us a run to $15 and possibly much higher should gold prices really take off.
Bret Kenwell is the manager and author ofFuture Blue Chipsand is on Twitter@BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.
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India says in talks with U.S. on H-1B visas, no official word on limits
By Neha Dasgupta
NEW DELHI (Reuters) - India is in talks with the United States on H-1B work visas but has not heard anything official from Washington on capping such permits for Indians, the foreign ministry said on Thursday.
Reuters reported on Wednesday the United States had told India it was considering caps on H-1B work visas for countries that force foreign companies to store data locally, according to sources familiar with the matter.
Asked about the report during a news conference, foreign ministry spokesman Raveesh Kumar said there had been no official communication from the United States on the issue.
"We have not heard anything officially from the U.S. government. We continue to reiterate and engage with the U.S. government on this matter," Kumar said, without elaborating.
News of the U.S. plan to restrict H-1B visas comes days before a visit to India by U.S. Secretary of State Mike Pompeo. Disagreements between the countries over trade have resulted in tit-for-tat tariffs in recent weeks.
Two senior Indian officials said they were briefed last week on the U.S. plan to cap the number of H-1B visas given annually to Indians at between 10% and 15% of the total number issued.
There is no country-specific limit on the 85,000 H-1B work visas that the United States grants each year, and an estimated 70% of them go to Indians.
Indian IT stocks fell on Thursday following concern about any work visa curbs. Indian tech lobby group Nasscom said such a U.S. plan would imply a "further crunch" for businesses in the United States getting skilled workers.
Sources said the U.S. proposal was linked to a push by many governments for "data localisation", in which a country places restrictions on data flows to gain better control over it, and curb the power of foreign firms. The plan, if implemented, would also apply to countries other than India, the sources said.
U.S. firms have lobbied hard against data localisation rules around the world.
India's data storage rules announced last year upset U.S. payment companies such as Mastercard.
India is also working on a broad data protection law that would impose strict rules for domestic processing of data it considers sensitive.
Kumar said the Indian government remained in talks with the United States on the issue of data localisation.
The government would also take a decision on involvement of Chinese telecom giant Chinese telecom giant Huawei Technologies Co in 5G trials, based on India's economic and security interests, Kumar said.
The global roll out of 5G technology has been complicated by U.S. sanctions against Huawei. U.S. officials have lobbied allies not to use Huawei network equipment in their 5G networks.
The United States has stepped up pressure on its big trading partners since President Donald Trump took office.
Trump has made use of tariffs to punish trading partners like China, the European Union, Canada and Mexico, saying they flood the United States with cheap products and put up unfair economic barriers at home.
Kumar said the overall direction of ties with the United States was positive. Defence relations have expanded with the United States becoming one of India's top arms suppliers, replacing traditional partner Russia.
(Reporting by Neha Dasgupta; Writing by Aditya Kalra; Editing by Sanjeev Miglani, Robert Birsel) |
AMD Stock Is Down 15% in Five Days so Now Is the Time to Buy
It was a fun ride up, butAdvanced Micro Devices(NASDAQ:AMD) is already on the way back down. AMD stock ripped higher to start the month, racing from $27.50 at the start of June to $34.30 just last week.
Source: AMD
That’s a more than 24% rally in just a few sessions! But just like that, AMD stock has given back most of those gains, falling 15% in five days. It’s got a number of investors asking, “Now what?”
The company announced new chips during the E3 video game conference. Additionally, it was announcedthat the next-gen Xbox consolefromMicrosoft(NASDAQ:MSFT) would also carry AMD chips. There’s also themobile tie-upwithSamsung(OTCMKTS:SSNLF) that sent shares ripping.
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In short? There have been a lot of positive catalysts for the company lately and management has shown that it can get the job done. There have been doubts all along AMD’s run from $2 in 2015 to the recent high above $34. But so far those doubters are turning out to be long-term losers. I think AMD can keep proving those doubters wrong.
• 7 Value Stocks to Buy for the Second Half
While it will remain a volatile stock, AMD has been one to buy on major dips. Let’s take a closer look.
I really likeNvidia(NASDAQ:NVDA) over the long term. The company has the best GPUs and makes top-of-the-line products. Not long after AMD introduced the Radeon RX 5700 XT and RX 5700 GPUs (its new chips to compete with Nvidia) reports emerged of Nvidia having a new set of chips too. The company’sreported “Super” line of GPUscrushed the market yet again.
And that’s just on the GPU front. Never mind the continuous flow of other news, whether it’s ray tracing or advances in autonomous driving. But is this to say that Nvidia is a better pick than AMD?
Not necessarily.
Over the long term, I believe NVDA and AMD will both be big winners as technology continues to improve. That said, AMD is winning the short-term battle. Over the past year, AMD is up 82%. Nvidia stock isdown44% in the same span. The year-to-date is a thumping too, with AMD up 61% to NVDA’s 10% advance.
So it’s not just AMD’s run from $2 to $20+ that’s fueling these big percentage gains. AMD is here and it’s here to stay.
Plus, the numbers make sense.
Current estimates call for revenue growth of 6.2% this year and 21% next year. That’s alongside estimates for almost 40% earnings growth in 2019 and 56% growth in 2020. Not only is it impressive to see accelerating growth from 2019 to 2020, but it’s even more impressive when considering the growth rates vs. its peers. Estimates for both metrics in both years top the growth rates from both NVDA andIntel(NASDAQ:INTC).
Click to Enlarge
The financials and the technological trends for AMD check out, but what does the chart look like?
As we pointed out at the top of the article, we’ve seen a quick 15% haircut in AMD’s stock price. That’s giving investors an opportunity to get long this name at more advantageous prices.
While AMD broke below the 20-day moving average on Monday, it quickly reclaimed it on Tuesday. Although it’s off its session highs — rallying over 5% at one point — the move was powerful. A tweet from President Trump hinting at a possible trade-war resolution woke up the chip space. If it comes to fruition, we will see these stocks fly higher.
For now though, AMD stock is holding its 50-day moving average and uptrend support. Back over $30 and the 20-day moving average bodes well for bulls, although volatility is almost always present in a name like this.
Against the $29 breakout, I feel comfortable owning Advanced Micro Devices stock. For those that can withstand a bit more heat, they can own AMD against the rising 50-day moving average.
If the markets cooperate and the narrative around trade improves rather than worsens, it’s not unreasonable to believe AMD can return to $33+ in the near term. Although it’s also clear that $33.50 to $34 is resistance at the moment.
Bret Kenwell is the manager and author ofFuture Blue Chipsand is on Twitter@BretKenwell. As of this writing, Bret Kenwell is long NVDA and AMD.
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Is Griñó Ecologic, S.A. (BME:GRI) Investing Your Capital Efficiently?
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Today we'll evaluate Griñó Ecologic, S.A. (BME:GRI) to determine whether it could have potential as an investment idea. To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business.
First of all, we'll work out how to calculate ROCE. Next, we'll compare it to others in its industry. Finally, we'll look at how its current liabilities affect its ROCE.
ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Generally speaking a higher ROCE is better. Overall, it is a valuable metric that has its flaws. Renowned investment researcher Michael Mauboussinhas suggestedthat a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'.
Analysts use this formula to calculate return on capital employed:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
Or for Griñó Ecologic:
0.021 = €737k ÷ (€54m - €18m) (Based on the trailing twelve months to December 2018.)
Therefore,Griñó Ecologic has an ROCE of 2.1%.
Check out our latest analysis for Griñó Ecologic
ROCE can be useful when making comparisons, such as between similar companies. Using our data, Griñó Ecologic's ROCE appears to be significantly below the 9.6% average in the Commercial Services industry. This performance is not ideal, as it suggests the company may not be deploying its capital as effectively as some competitors. Putting aside Griñó Ecologic's performance relative to its industry, its ROCE in absolute terms is poor - considering the risk of owning stocks compared to government bonds. There are potentially more appealing investments elsewhere.
When considering ROCE, bear in mind that it reflects the past and does not necessarily predict the future. Companies in cyclical industries can be difficult to understand using ROCE, as returns typically look high during boom times, and low during busts. ROCE is, after all, simply a snap shot of a single year. You can check if Griñó Ecologic has cyclical profits by looking at thisfreegraph of past earnings, revenue and cash flow.
Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills 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 counter this, investors can check if a company has high current liabilities relative to total assets.
Griñó Ecologic has total liabilities of €18m and total assets of €54m. Therefore its current liabilities are equivalent to approximately 34% of its total assets. In light of sufficient current liabilities to noticeably boost the ROCE, Griñó Ecologic's ROCE is concerning.
So researching other companies may be a better use of your time. Of course,you might also be able to find a better stock than Griñó Ecologic. So you may wish to see thisfreecollection of other companies that have grown earnings strongly.
For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Should iShares Russell Top 200 Value ETF (IWX) Be on Your Investing Radar?
Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the iShares Russell Top 200 Value ETF (IWX) is a passively managed exchange traded fund launched on 09/22/2009.
The fund is sponsored by Blackrock. It has amassed assets over $451.67 M, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.20%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.98%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 21.60% of the portfolio. Healthcare and Energy round out the top three.
Looking at individual holdings, Jpmorgan Chase & Co (JPM) accounts for about 4.07% of total assets, followed by Berkshire Hathaway Inc Class B (BRKB) and Exxon Mobil Corp (XOM).
The top 10 holdings account for about 31.72% of total assets under management.
Performance and Risk
IWX seeks to match the performance of the Russell Top 200 Value Index before fees and expenses. The Russell Top 200 Value Index is a style factor weighted index that measures the performance of the largest capitalization value sector of the U.S. equity market.
The ETF has gained about 13.79% so far this year and is up roughly 7.98% in the last one year (as of 06/20/2019). In the past 52-week period, it has traded between $44.99 and $54.71.
The ETF has a beta of 0.93 and standard deviation of 11.72% for the trailing three-year period, making it a medium risk choice in the space. With about 139 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell Top 200 Value ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IWX is a reasonable option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $38.48 B in assets, Vanguard Value ETF has $48.34 B. IWD has an expense ratio of 0.20% and VTV charges 0.04%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportiShares Russell Top 200 Value ETF (IWX): ETF Research ReportsJPMorgan Chase & Co. (JPM) : Free Stock Analysis ReportVanguard Value ETF (VTV): ETF Research ReportsiShares Russell 1000 Value ETF (IWD): ETF Research ReportsExxon Mobil Corporation (XOM) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Japan’s Line Reportedly Close to Obtaining FSA License for Japanese Crypto Exchange
LVC Corporation, the digital asset- and blockchain-focused arm ofJapanesemessaging giant Line, is allegedly close to obtaining a crypto exchange operating license from Japan’s financial regulator. The news wasreportedby Cointelegraph Japan on June 20.
According to the report, Japan’s Financial Services Agency (FSA) could issue the company with an exchange license as early as this month.
The trading service, to be dubbed BitMax, would enable Line’s80 million usersin Japan to buy and sell multiple major cryptocurrencies, as well as Line’s native token Link, CT Japan notes.
Per a press release recentlysharedwith Cointelegraph, Line counts 187 million global users monthly, with an estimated 50 million usersregisteredits mobile payment service, Line Pay.
BitMax will reportedly use the same back-end infrastructure as the Singapore-based, global user-focused crypto exchange BitBox, which waslaunchedby Line in July 2018.
BitBox notably remains inaccessible for Japanese users given the country’s exchange license requirements. The license has been mandatory for all crypto exchanges operating within Japan since theamendmentof the country’s Payment Services Act back in April 2017, and the FSA has since then continued toratchet uprequirements for applicants.
Areportfrom local English-language newspaper The Japan Times has today contextualized Line’s accelerating foray into cryptocurrencies and blockchain against a backdrop of sluggish user growth which has ostensibly driven the firm’s shares to their lowest since listing in 2016.
Meanwhile, the firm awaits a banking license that would authorize deeper integration of cryptocurrencies with its other services, including e-commerce, The Japan Times notes, but it is allegedly only likely to be issued in 2020.
As previously reported, Linerolled outits Link cryptocurrency in late summer 2018, and has continued todevelopits token ecosystem based on the firm’s in-house service-orientedblockchain, Link Chain. The blockchain network also enables decentralized applications to be directly applied to Line’s messaging platform.
Earlier this month, Line partnered withAmericanpaymentservices firmVisaon new blockchain and digital payments solutions.
American social media behemothFacebookhas meanwhile this weekunveiledits white paper for its libra cryptocurrency, which would — according to earlier reports —prospectivelybe used by the 2.7 billion monthly users of WhatsApp, Messenger and Instagram.
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Is First Trust Dow Jones Global Select Dividend Index Fund (FGD) a Strong ETF Right Now?
The First Trust Dow Jones Global Select Dividend Index Fund (FGD) made its debut on 11/21/2007, and is a smart beta exchange traded fund that provides broad exposure to the Broad Developed World ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is managed by First Trust Advisors. FGD has been able to amass assets over $504.80 M, making it one of the average sized ETFs in the Broad Developed World ETFs. FGD, before fees and expenses, seeks to match the performance of the Dow Jones Global Select Dividend Index.
This Index is an indicated annual dividend yield weighted index of 100 stocks selected from the developed-market portion of the Dow Jones World Index.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.58%, making it one of the more expensive products in the space.
FGD's 12-month trailing dividend yield is 8.67%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Standard Life Aberdeen Plc (SLA.LN) accounts for about 1.75% of the fund's total assets, followed by Harvey Norman Holdings Limited (HVN.AU) and Csr Limited (CSR.AU).
The top 10 holdings account for about 13.95% of total assets under management.
Performance and Risk
Year-to-date, the First Trust Dow Jones Global Select Dividend Index Fund has added about 7.89% so far, and is down about -3.30% over the last 12 months (as of 06/20/2019). FGD has traded between $21.06 and $25.54 in this past 52-week period.
FGD has a beta of 0.80 and standard deviation of 12.79% for the trailing three-year period, which makes the fund a low risk choice in the space. With about 101 holdings, it effectively diversifies company-specific risk.
Alternatives
First Trust Dow Jones Global Select Dividend Index Fund is not a suitable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
IShares MSCI ACWI ETF (ACWI) tracks MSCI All Country World Index and the Vanguard Total World Stock ETF (VT) tracks FTSE Global All Cap Index. IShares MSCI ACWI ETF has $10.57 B in assets, Vanguard Total World Stock ETF has $12.42 B. ACWI has an expense ratio of 0.31% and VT charges 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Developed World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportFirst Trust Dow Jones Global Select Dividend Index Fund (FGD): ETF Research ReportsiShares MSCI ACWI ETF (ACWI): ETF Research ReportsVanguard Total World Stock ETF (VT): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment Research |
Mobvoi TicPods Free review: An excellent alternative to Apple AirPods
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The Good
Comfortable • solid sound quality • good battery life • Affordable
The Bad
No customization • Bright red color
The Bottom Line
Mobvoi’s TicPods Free are a solid mid-range option for anyone looking for a decent pair of truly wireless earbuds.
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Should You Invest in the Invesco KBW High Dividend Yield Financial ETF (KBWD)?
If you're interested in broad exposure to the Financials - Broad segment of the equity market, look no further than the Invesco KBW High Dividend Yield Financial ETF (KBWD), a passively managed exchange traded fund launched on 12/02/2010.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Financials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 8, placing it in top 50%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $297.18 M, making it one of the average sized ETFs attempting to match the performance of the Financials - Broad segment of the equity market. KBWD seeks to match the performance of the KBW Nasdaq Financial Sector Dividend Yield Index before fees and expenses.
The KBW Nasdaq Financial Sector Dividend Yield Index is a dividend yield weighted index seeking to reflect the performance of approximately 24 to 40 publicly listed financial companies engaged in the business of providing financial services and products, including banking, insurance and diversified financial services, in the US.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 2.42%, making it one of the most expensive products in the space.
It has a 12-month trailing dividend yield of 7.44%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Financials sector--about 96.10% of the portfolio.
Looking at individual holdings, New York Mortgage Trust Inc (NYMT) accounts for about 4.38% of total assets, followed by Orchid Island Capital Inc (ORC) and Two Harbors Investment Corp (TWO).
The top 10 holdings account for about 38.19% of total assets under management.
Performance and Risk
The ETF has added roughly 11.67% and is down about -2.63% so far this year and in the past one year (as of 06/20/2019), respectively. KBWD has traded between $18.90 and $23.79 during this last 52-week period.
The ETF has a beta of 0.89 and standard deviation of 11.50% for the trailing three-year period, making it a medium risk choice in the space. With about 40 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco KBW High Dividend Yield Financial ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, KBWD is a reasonable option for those seeking exposure to the Financials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Financials ETF (VFH) tracks MSCI US Investable Market Financials 25/50 Index and the Financial Select Sector SPDR Fund (XLF) tracks Financial Select Sector Index. Vanguard Financials ETF has $7.54 B in assets, Financial Select Sector SPDR Fund has $24.09 B. VFH has an expense ratio of 0.10% and XLF charges 0.13%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportInvesco KBW High Dividend Yield Financial ETF (KBWD): ETF Research ReportsOrchid Island Capital, Inc. (ORC) : Free Stock Analysis ReportFinancial Select Sector SPDR Fund (XLF): ETF Research ReportsVanguard Financials ETF (VFH): ETF Research ReportsTwo Harbors Investments Corp (TWO) : Free Stock Analysis ReportNew York Mortgage Trust, Inc. (NYMT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
MACOM Lays Off 250 Employees as Part of Restructuring Plan
MACOM Technology Solutions Holdings, Inc.MTSI announced the approval of a restructuring plan. This plan constitutes the elimination of around 20% of its total workforce and closing of several development facilities.
The company plans to terminate around 250 employees from several departments. The layoffs cover broad areas of operations, including research and development, production, sales and marketing, as well as general and administrative.
As part of restructuring endeavors, the company also plans to close seven product development facilities, including locations in France, Japan, the Netherlands, Florida, Massachusetts, New Jersey and Rhode Island. In addition, it will no longer invest in the design and development of optical modules, along with subsystems for Data Center applications.
Once this restructuring measure is implemented, the company will save about $50 million annually. However, it expects to incur approximately $14 million in restructuring charges, including $7 million for employee severance obligations.
MACOM Technology Solutions Holdings, Inc. Price and Consensus
MACOM Technology Solutions Holdings, Inc. price-consensus-chart | MACOM Technology Solutions Holdings, Inc. Quote
Fiscal Q3 GuidanceUpdated
MACOM now expects sales within $107-$109 million, down from the previous guided range of $120-$124 million. The Zacks Consensus Estimate for revenues is pegged at $122.5 million
On a non-GAAP basis, the company downwardly revised its gross margin guidance to the range of 39-41% from 53-55%. This guidance includes approximately $14 million in inventory reserves.
MACOM now estimates non-GAAP adjusted loss in the range of 41-45 cents per share versus 8-4 cents expected earlier. The corresponding Zacks Consensus Estimate is pegged at a loss of 6 cents per share.
Bottom Line
Weakness in the company’s datacenter business led to weaker-than-expected fiscal second-quarter results. Dim prospects across the customers of MACOM’s white box solutions, owing to cloud operators’ lack of initiatives toward improvement of new module suppliers, remain an overhang.
Ongoing macro-economic headwinds in China might continue to impact the company’s growth. Moreover, weak performance in the telecom market is a drag.
Therefore, MACOM’s efforts to implement a restructuring plan and improve financial position encourage us. Moreover, the company’s focus on expanding product offerings for customers bodes well for the long term.
Zacks Rank & Stocks to Consider
Currently, MACOM has a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the broader technology sector include Itron, Inc. ITRI, Teradyne, Inc. TER and AXT, Inc. AXTI, each carrying a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for Itron, Teradyne and AXT is currently projected at 25%, 9.8% and 15%, respectively.
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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 reportAXT Inc (AXTI) : Free Stock Analysis ReportMACOM Technology Solutions Holdings, Inc. (MTSI) : Free Stock Analysis ReportItron, Inc. (ITRI) : Free Stock Analysis ReportTeradyne, Inc. (TER) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Emerging Market Bond ETF (EMB) Hits New 52-Week High
For investors seeking momentum,iShares J.P. Morgan USD Emerging Markets Bond ETF EMBis probably on radar now. The fund just hit a 52-week high, and is up 11.1% from its 52-week low price of $102.15 per share.
But are more gains in store for this ETF? Let's take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
EMB in Focus
The underlying J.P. Morgan EMBI Global Core Index is a broad, diverse U.S. dollar-denominated emerging markets’ debt benchmark that tracks the total return of actively traded external debt instruments in emerging market countries. It charges investors 39 basis points a year in fees and yields 5.54% annually (see: all Emerging Market Bond ETFs here).
Why the Move?
As the Fed hints at policy easing in 2019, the greenback remains subdued. This is a great scope for the outperformance of the emerging market bond fund EMB. Investors are betting on it due to its high dividend payments in a low-rate environment.
More Gains Ahead?
The fund has a positive weighted alpha of 7.80, which hints at more gains. So, there is definitely still some promise for those who want to ride on this ETF a little longer.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportiShares J.P. Morgan USD Emerging Markets Bond ETF (EMB): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report |
How Discovery Harbour Resources Corp. (CVE:DHR) Can Impact Your Portfolio Volatility
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If you're interested in Discovery Harbour Resources Corp. (CVE:DHR), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. The first type is company specific volatility. Investors use diversification across uncorrelated stocks to reduce this kind of price volatility across the portfolio. The second sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market.
Some stocks see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated 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. Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.
See our latest analysis for Discovery Harbour Resources
Zooming in on Discovery Harbour Resources, we see it has a five year beta of 1.7. This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. If this beta value holds true in the future, Discovery Harbour Resources shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. Beta is worth considering, but it's also important to consider whether Discovery Harbour Resources is growing earnings and revenue. You can take a look for yourself, below.
With a market capitalisation of CA$1.0m, Discovery Harbour Resources is a very small company by global standards. It is quite likely to be unknown to most investors. Relatively few investors can influence the price of a smaller company, compared to a large company. This could explain the high beta value, in this case.
Beta only tells us that the Discovery Harbour Resources share price is sensitive to broader market movements. This could indicate that it is a high growth company, or is heavily influenced by sentiment because it is speculative. Alternatively, it could have operating leverage in its business model. Ultimately, beta is an interesting metric, but there's plenty more to learn. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as Discovery Harbour Resources’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Financial Health: Are DHR’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 DHR 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 DHR'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. |
Total cuts 200 jobs in Denmark
COPENHAGEN (Reuters) - French oil major Total SA said on Thursday it would cut 200 jobs in Denmark as part of the redevelopment of the Tyra gas fields in the North Sea.
Total, which bought A.P. Moller-Maersk's oil and gas business in 2017, will shut production at the Tyra gas fields at the end of 2019 as part of a major redevelopment.
"Unfortunately, the changes mean that a number of valued colleagues will leave us," Patrick Gilly, managing director for Total's Danish North Sea operations said in a statement.
When the field comes back on stream in 2022, the infrastructure at Tyra will process more than 90% of the natural gas from the Danish North Sea, Total said.
Before Total bought the business, Maersk had in 2017 together with its partners in the Danish Underground Consortium (DUC) decided to invest 21 billion Danish crowns ($3.2 billion) in redeveloping the Tyra gas fields - the largest ever investment in the Danish part of the North Sea.
After the jobs cuts at its hub in Esbjerg, Total Exploration & Production will have around 1,300 employees at the site. Total has around 360 employees at its Copenhagen office.
($1 = 6.6062 Danish crowns)
(Reporting by Jacob Gronholt-Pedersen; Editing by Keith Weir/David Evans) |
Before You Buy RBC Bearings Incorporated (NASDAQ:ROLL), Consider Its Volatility
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If you're interested in RBC Bearings Incorporated (NASDAQ:ROLL), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. First, we have company specific volatility, which is the price gyrations of an individual stock. Holding at least 8 stocks can reduce this kind of risk across a portfolio. The second sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market.
Some stocks see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated 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 RBC Bearings
Given that it has a beta of 1.22, we can surmise that the RBC Bearings share price has been fairly sensitive to market volatility (over the last 5 years). Based on this history, investors should be aware that RBC Bearings are likely to rise strongly in times of greed, but sell off in times of fear. Many would argue that beta is useful in position sizing, but fundamental metrics such as revenue and earnings are more important overall. You can see RBC Bearings's revenue and earnings in the image below.
RBC Bearings is a reasonably big company, with a market capitalisation of US$3.8b. Most companies this size are actively traded with decent volumes of shares changing hands each day. It has a relatively high beta, suggesting it may be somehow leveraged to macroeconomic conditions. For example, it might be a high growth stock with lots of investors trading the shares. It's notable when large companies to have high beta values, because it usually takes substantial capital flows to move their share prices.
Beta only tells us that the RBC Bearings share price is sensitive to broader market movements. This could indicate that it is a high growth company, or is heavily influenced by sentiment because it is speculative. Alternatively, it could have operating leverage in its business model. Ultimately, beta is an interesting metric, but there's plenty more to learn. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as RBC Bearings’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Future Outlook: What are well-informed industry analysts predicting for ROLL’s future growth? Take a look at ourfree research report of analyst consensusfor ROLL’s outlook.
2. Past Track Record: Has ROLL 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 ROLL's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how ROLL 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. |
Is Carvana Co. (NYSE:CVNA) Expensive For A Reason? A Look At Its Intrinsic Value
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Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Carvana Co. (NYSE:CVNA) as an investment opportunity by taking the foreast future cash flows of the company and discounting them back to today's value. This is done using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model.
Check out our latest analysis for Carvana
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. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars:
[{"": "Levered FCF ($, Millions)", "2019": "$-435.26", "2020": "$-294.28", "2021": "$-50.25", "2022": "$190.11", "2023": "$312.83", "2024": "$422.32", "2025": "$529.26", "2026": "$627.39", "2027": "$713.97", "2028": "$788.78"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x5", "2020": "Analyst x5", "2021": "Analyst x2", "2022": "Analyst x2", "2023": "Analyst x1", "2024": "Est @ 35%", "2025": "Est @ 25.32%", "2026": "Est @ 18.54%", "2027": "Est @ 13.8%", "2028": "Est @ 10.48%"}, {"": "Present Value ($, Millions) Discounted @ 8.42%", "2019": "$-401.45", "2020": "$-250.33", "2021": "$-39.43", "2022": "$137.57", "2023": "$208.78", "2024": "$259.95", "2025": "$300.46", "2026": "$328.51", "2027": "$344.79", "2028": "$351.32"}]
Present Value of 10-year Cash Flow (PVCF)= $1.24b
"Est" = FCF growth rate estimated by Simply Wall St
After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (2.7%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.4%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$789m × (1 + 2.7%) ÷ (8.4% – 2.7%) = US$14b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$14b ÷ ( 1 + 8.4%)10= $6.34b
The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $7.58b. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of $48.04. Relative to the current share price of $63.5, the company appears reasonably expensive at the time of writing. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.
The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Carvana 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 8.4%, which is based on a levered beta of 0.955. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Whilst important, DCF calculation shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Carvana, I've put together three important factors you should look at:
1. Financial Health: Does CVNA 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 CVNA'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 CVNA? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
QuadrigaCX co-founder transferred user funds into personal accounts: EY
Gerald Cotten, the now-deceased co-founder of collapsed Canadian cryptocurrency exchange QuadrigaCX, transferred user funds into his personal accounts, according to a new report.QuadrigaCX’s court-appointed monitor and trustee EYpublishedthe fifth report on Wednesday, stating that “significant volumes” of user cryptocurrency were transferred off QuadrigaCX to other competitor exchanges into personal accounts controlled by Cotten.Those funds were then traded on competitor exchanges and in some cases used as security for a margin trading account set up by Cotten, EY said.
The report further stated that QuadrigaCX’s operating infrastructure was “significantly flawed from a financial reporting and operational control perspective.”
There were also no accounting records, no segregation of assets between QuadrigaCX funds and user funds, and no visibility into profitability, per the report.QuadrigaCXcollapsedearlier this year, following Cotten's sudden death last December. Cotten was the only person who had the password to access the missing C$260 million stored in offline cold wallets.
EY, in its last report published in May, said that QuadrigaCX has only $21 million in assets, but owes creditors $160 million.
Earlier this month, the Federal Bureau of Investigation also started an investigation into QuadrigaCX, seeking information from victims as to whether they have ever withdrawn fiat currencies from the exchange and used U.S. based bank accounts to conduct any transactions. |
Did You Miss Stroud Resources's (CVE:SDR) 100% Share Price Gain?
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Stroud Resources Ltd.(CVE:SDR) shareholders might understandably be very concerned that the share price has dropped 33% in the last quarter. But that doesn't change the fact that the returns over the last five years have been pleasing. It has returned a market beating 100% in that time.
See our latest analysis for Stroud Resources
Stroud Resources recorded just CA$28,641 in revenue over the last twelve months, which isn't really enough for us to consider it to have a proven product. As a result, we think it's unlikely shareholders are paying much attention to current revenue, but rather speculating on growth in the years to come. It seems likely some shareholders believe that Stroud Resources will find or develop a valuable new mine before too long.
We think companies that have neither significant revenues nor profits are pretty high risk. There is almost always a chance they will need to raise more capital, and their progress - and share price - will dictate how dilutive that is to current holders. While some companies like this go on to deliver on their plan, making good money for shareholders, many end in painful losses and eventual de-listing. Stroud Resources has already given some investors a taste of the sweet gains that high risk investing can generate, if your timing is right.
Stroud Resources had liabilities exceeding cash by CA$1,555,112 when it last reported in March 2019, according to our data. That makes it extremely high risk, in our view. So the fact that the stock is up 15% per year, over 5 years shows that high risks can lead to high rewards, sometimes. It's clear more than a few people believe in the potential. You can click on the image below to see (in greater detail) how Stroud Resources's cash levels have changed over time.
Of course, the truth is that it is hard to value companies without much revenue or profit. One thing you can do is check if company insiders are buying shares. It's often positive if so, assuming the buying is sustained and meaningful. You canclick here to see if there are insiders buying.
While the broader market gained around 1.0% in the last year, Stroud Resources shareholders lost 33%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 15% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. Shareholders might want to examinethis detailed historical graphof past earnings, revenue and cash flow.
If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
The Daily Biotech Pulse: DiaMedica Reports Positive Data For Chronic Kidney Disease Drug, Eloxx Offering, IPO Deluge
Here's a roundup of top developments in the biotech space over the last 24 hours.
Scaling The Peaks
(Biotech stocks hitting 52-week highs on June 19)
• Abbott Laboratories(NYSE:ABT)
• CareDx Inc(NASDAQ:CDNA)
• CONMED Corporation(NASDAQ:CNMD)
• DENTSPLY SIRONA Inc(NASDAQ:XRAY)
• Hologic, Inc.(NASDAQ:HOLX)
• Insulet Corporation(NASDAQ:PODD)
• Merck & Co., Inc.(NYSE:MRK)(reports suggested that the company is on the look out to find a replacement for its CEO Ken Frazier)
• Novocure Ltd(NASDAQ:NVCR)
• Repligen Corporation(NASDAQ:RGEN)
• ResMed Inc.(NYSE:RMD)
• ZIOPHARM Oncology Inc.(NASDAQ:ZIOP)
• Zynex Inc.(NASDAQ:ZYXI)
• Zoetis Inc(NYSE:ZTS)
Down In The Dumps
(Biotech stocks hitting 52-week lows on June 19)
• Abeona Therapeutics Inc(NASDAQ:ABEO)
• CELYAD SA/ADR(NASDAQ:CYAD)
• ContraVir Pharmaceuticals Inc(NASDAQ:CTRV)
• Jaguar Health Inc(NASDAQ:JAGX)
• Spring Bank Pharmaceuticals Inc(NASDAQ:SBPH)
• Surface Oncology Inc(NASDAQ:SURF)
Stocks In Focus DiaMedica Drug Found Safe And Effective Against Chronic Kidney Disease
DiaMedica Therapeutics Inc(NASDAQ:DMAC) announced interim results from the Phase 1b study of its DM199, which is being evaluated for moderate-to-severe chronic kidney disease, or CKD, which showed that the drug was observed to be safe and well tolerated with no drug-related serious adverse events. The study that evaluated 28 participants also showed a dose range which the company believes will restore normal KLK1 levels in CKD patients.
The favorable interim safety, tolerability and pharmacokinetic data, complemented by pharmacodynamic observations, according to the company, support the advancement of DM199 to a Phase 2 clinical trial in patients with CKD.
The stock rallied 16.49% to $4.45 in after-hours trading.
See Also:Akari's Lead Candidate Found Safe, Effective In Treating Eye Inflammation
Eloxx Announces Secondary Stock Sale
Eloxx Pharmaceuticals Inc(NASDAQ:ELOX) announced its intention to offer its common shares in an underwritten public offering, subject to market and other conditions. All the shares are to be sold by the company.
The company said it will use the net proceeds to fund the continued clinical development ofELX-02in cystic fibrosis and cystinosis, to accelerate development of early-stage programs and for working capital and other general corporate purposes
The stock fell 3.85% to $8.99 in after-hours trading.
Glaukos To Buy Former Subsidiary DOSE Medical
Ophthalmic medtech companyGlaukos Corp(NYSE:GKOS) agreed to acquire DOSE Medical Corp for $2.5 million in cash, plus performance-based consideration upon achievement of certain regulatory approvals and commercial milestones.
The company expects the proposed deal to be complete in the current quarter.
DOSE Medical develops multiple micro-invasive, bioerodible sustained-release drug delivery platforms used in the treatment of retinal diseases such as age-related macular degeneration and diabetic macular edema.
On The Radar Clinical Trial Readouts
Beigene Ltd.(NASDAQ:BGNE) will present Phase 1b data for Zanubrutinib and Obinutuzumab in relapsed/refractory follicular lymphoma at the International Conference On Malignant Lymphoma.
IPO
Akero Therapeutics, which develops therapies for NASH and other metabolic disorders, priced its upsized offering of 5.75 million shares at $16 per share, at the high end of the estimated price range of $14-$16. The shares are to be listed on the Nasdaq under the ticker symbol AKRO.
Atrecapriced its IPO of 7.35 million shares at $17 compared to the estimated price range of $16-$18. The shares of the company developing therapies for solid tumor are to be listed on the Nasdaq under the ticker symbol BCEL.
Genomic sequencing companyPersonalishas upsized its IPO to 7.923 million shares from the initially revealed 6.67 million shares, with the price fixed at $17, above the estimated price range of $14-$16.
Prevail Therapeuticspriced its offering of 7.353 million shares at $17, at the midpoint of the previously disclosed price range of $16-$18. The shares would be listed on the Nasdaq under the ticker symbol PRVL.
See more from Benzinga
• The Daily Biotech Pulse: Positive Readouts From Adamas And Ironwood, Sesen Bio To Offer Shares, Stoke Therapeutics Debut
• The Daily Biotech Pulse: PhaseBio Pumped Up, Eiger Exults On Breakthrough Therapy Designation, Biohaven Slips On Stock Sale
• The Week Ahead In Biotech: Conferences, PDUFA Dates Clinical Trial Readouts And IPOs
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Four in ten of dog owners think their pet has a mental health problem
Our pets make us happy, but we're worried about theirs, a new survey has revealed (Picture: Getty) Dogs are key to our happiness, a new study has found, yet more than four in ten of owners think their four-legged friends have mental health problems. According to a survey by pet tech firm Furbo, more than half of people (57%) also admitted that having their dog by their side has the biggest positive impact on their mental health. But worryingly, 46% of dog owners think their pet pooch has suffered from depression, anxiety and phobias, recognising signs of stress such as barking, destroying post and chewing beds, as well as becoming withdrawn or not wanting to go outside. However, 52% of owners surveyed revealed that they think we assign human moods and feelings to our dogs, so are they really stressed, or are we just projecting? Women tend to turn to experts like vets or behaviourists if they're worried about their pet's happiness (Picture: Getty) To be sure, more owners are seeking help to be certain their dogs are happy - though women tend to speak to vets or behaviourists (77%) while men might be more likely to turn to tech (53%). Either way, we’re spending a lot, with over half (53%) of city dog owners spending up to £100 a month on their pet’s happiness. It’s worth it though, the survey suggests, with 87% of people saying their dog makes them happiest on a daily basis - trumping partners (50%) and friends (22%). READ MORE Teen has jaw shattered and loses teeth after vape pen explodes in his mouth Speedboat killer Jack Shepherd loses appeal against manslaughter conviction Former professional dog trainer Ryan O’Meara said: “The role of the modern dog is very different today as fewer and fewer dogs are purchased with the intention of performing particular tasks but, more specifically, as a means to provide pure companionship. “As our own lives become busier and more stress-filled, it makes sense that owners would worry that their dogs, who share our lives, would feel similar to us. “Often this is simply a case of incorrectly transferring our very human worries on to our nearest and dearest friends (our dogs) but in some instances, it’s true. “Dogs can be stressed if we’re stressed. We know this to be the case. So even in the ironic case of us being stressed about whether our dogs are stressed, we can inadvertently make our dogs feel anxious. Story continues “The key to avoiding these negative scenarios is to ensure our dogs are properly fed, mentally stimulated and lead a life of recognisable routine and stability.” Watch the latest videos from Yahoo UK |
Here's Why We Think Sterling Construction Company (NASDAQ:STRL) Is Well Worth Watching
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For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit. But as Peter Lynch said inOne Up On Wall Street, 'Long shots almost never pay off.'
If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested inSterling Construction Company(NASDAQ:STRL). While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. Conversely, a loss-making company is yet to prove itself with profit, and eventually the sweet milk of external capital may run sour.
See our latest analysis for Sterling Construction Company
In the last three years Sterling Construction Company's earnings per share took off like a rocket; fast, and from a low base. So the actual rate of growth doesn't tell us much. Thus, it makes sense to focus on more recent growth rates, instead. Like a falcon taking flight, Sterling Construction Company's EPS soared from US$0.61 to US$0.92, over the last year. That's a impressive gain of 50%.
One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. It seems Sterling Construction Company is pretty stable, since revenue and EBIT margins are pretty flat year on year. That's not bad, but it doesn't point to ongoing future growth, either.
You can take a look at the company's revenue and earnings growth trend, in the chart below. To see the actual numbers, click on the chart.
Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want tocheck this interactive graph of professional analyst EPS forecasts for Sterling Construction Company.
Like standing at the lookout, surveying the horizon at sunrise, insider buying, for some investors, sparks joy. Because oftentimes, the purchase of stock is a sign that the buyer views it as undervalued. However, small purchases are not always indicative of conviction, and insiders don't always get it right.
Sterling Construction Company top brass are certainly in sync, not having sold any shares, over the last year. But the bigger deal is that the Director, Roger Cregg, paid US$119k to buy shares at an average price of US$11.94.
On top of the insider buying, it's good to see that Sterling Construction Company insiders have a valuable investment in the business. To be specific, they have US$22m worth of shares. That shows significant buy-in, and may indicate conviction in the business strategy. That amounts to 6.2% of the company, demonstrating a degree of high-level alignment with shareholders.
For growth investors like me, Sterling Construction Company's raw rate of earnings growth is a beacon in the night. Better still, insiders own a large chunk of the company and one has even been buying more shares. So I do think this is one stock worth watching. Of course, just because Sterling Construction Company is growing does not mean it is undervalued. If you're wondering about the valuation, check outthis gauge of its price-to-earnings ratio, as compared to its industry.
The good news is that Sterling Construction Company is not the only growth stock with insider buying. Here'sa a list of them... 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. |
The only bipartisan congressional 'millennial' group taps new leaders
Rep. Ilhan Omar, D-Minn., front row center, with other incoming members of the U.S. House of Representatives, Nov. 14, 2018. (Photo: Kevin Lamarque/Reuters) WASHINGTON As a wave of new freshmen has entered Congress, a bipartisan group of lawmakers hopes to reduce political infighting and advance across-the-aisle agendas with the help of a record-breaking number of young legislators. The Congressional Future Caucus, a bipartisan group of millennial lawmakers, has tapped Reps. Katie Hill, Anthony Gonzalez, Lance Gooden and Joe Neguse as its newest leaders. They take the helm from previous leadership which included Reps. Tulsi Gabbard, Will Hurd, Carlos Curbelo and Sen. Krysten Sinema, who steered legislation written for and by young people through both chambers. The integration of social media into daily life has allowed the youngest members of Congress notably New York freshman Alexandria Ocasio-Cortez to dominate the news cycle at the drop of a tweet. And while Ocasio-Cortez is not a member of the Congressional Future Caucus herself, her methods and style are reflected in the group. This caucus offers a unique opportunity to look for bipartisan solutions through a lens of a new generation. Millennials have revolutionized modern communication, transportation, and health care, and Im really looking forward to bringing that same approach to the political challenges we face here at Congress, Gooden, a Republican from Texas, told Yahoo News. In 2013, the Millennial Action Project, a nonprofit focused on post-partisan relationships, helped organize the Congressional Future Caucus, creating the first bipartisan millennial group, which embraces the more broad under 45 age parameters on Capitol Hill. Two presidential hopefuls (in addition to the aforementioned Tulsi Gabbard) Seth Moulton and Eric Swalwell are also members of the caucus. President and CEO of the Millennial Action Project Steven Olikara stresses the ideological diversity of the caucuss leadership. I think the fact that they are joining together as the co-chairs of the Future Caucus sends a very powerful signal that our generation is going to prioritize cooperation over conflict, that we want to work pragmatically to solve these generational problems, adding that many of the countrys major political leaders, such as Martin Luther King Jr., were under 45 at their peak. Story continues Political transformation comes from young people, added Olikara. The 2018 midterm elections appears to point to a desire among voters for younger lawmakers. According to Pews more narrow definition , 20 millennials were elected to serve in the 116th Congress. In Olikaras estimation, considering freshman members who are 45 and younger, there were 26 elected a 420% increase over the prior session. So often, young people are the ones who stand up and say: I didn't make this mess, but I'm going to clean it up, said Hill in a written statement. Thats exactly what the Congressional Future Caucus is all about, and I'm looking forward to the work we are going to get done on behalf of our communities, together. The Congressional Future Caucus will convene later this summer to lay the groundwork for next years priorities. While its unclear what issues will receive top billing, several stakeholders told Yahoo News that the group will likely focus a mix of noted bipartisan focuses transportation, rural broadband access, veterans affairs and more hot-button topics such as health care and student loan forgiveness. And while these policy areas reach beyond the scope of millennial America, some affect younger residents in uniquely challenging ways. If you look at the building blocks of a society and an economy, to me, you think about homeownership and family formation. And if you approach that with the lens of a younger generation, youre talking about folks who are on average going to have more student debt, explained Gonzalez, who currently is the youngest Republican member of Congress. Theyre going to approach a housing market thats too expensive for them, housing prices that are too high for them. And because of the debt, they cant get a loan. Gonzalez hopes to brainstorm solutions to broader societal problems, such as student debt, with the more conservative members of his party. Ill work with anyone, I dont care who it is, added Gonzalez. If there are good ideas out there that are going to make the American dream more attainable for young families, then I want to have those conversations even if we dont agree on everything. Maybe you dont solve all the problems, but you can at least get somewhere. Gooden, who has worked with Rep. Jahana Hayes of Connecticut to co-sponsor legislation prioritizing veterans rights and Gold Star families , said the lack of bipartisan activity in Congress has been frustrating, but its also an opportunity for millennials who havent been here so long that we are jaded. Its kind of a breath of fresh air to have younger people that are willing to work together and do some good, said Gooden. _____ Read more from Yahoo News: Behind the scenes, candidates vie for Hollywood cash while keeping populist cred Can Lower Manhattan survive climate change? New York's sea level rise plan faces pushback Trump admits his Cabinet had 'some clinkers' Confronted with multiple errors in his new Trump book, a testy Michael Wolff says, 'You have to trust me' Why are people willing to risk death for a selfie? PHOTOS: Officers injured in Memphis task force shooting |
UPDATE 2-Carnival cuts 2019 profit on Cuba travel ban, weak Europe demand
(Adds details on Europe headwinds; Updates shares)
June 20 (Reuters) - Carnival Corp cut its profit forecast for the year on Thursday, anticipating a hit from the Trump administration's sudden ban on cruises to Cuba and weakening demand in Europe over political uncertainty, sending its shares down over 7%.
The company's profit warning also dragged down Carnival's rivals, Norwegian Cruise Line Holdings Ltd and Royal Caribbean Cruises Ltd, about 3%.
Carnival is the latest company to warn of the financial impact of the U.S. ban on forms of recreational travel to the Caribbean island, a move that sent cruise operators scrambling to reroute their cruises, usually booked months in advance.
"The suddenness of the regulatory change to this high yielding destination has led to a near-term impact on revenue yields," Carnival said in a statement.
Revenue yields are an important metric for cruise operators, and measures spending per available berth.
Carnival said its full year earnings will take a 10 cent to 12 cent hit from lower net revenue yields, also due to expected cheaper ticket prices for its European cruises. "Recent booking trends have been impacted by ongoing geopolitical and macroeconomic headwinds affecting our Continental European brands," Chief Executive Officer Arnold Donald said.
The Miami-based company said the ban on travel to Cuba would have a further 4 cent to 6 cent per share impact on its full-year earnings, while changes to cruise itineraries for its Carnival Vista ship, sailing at a slower-than-usual cruising speed, would have an 8 to 10 cent impact.
Carnival had to add an extra day of sailing for the slow-sailing ship's cruises and will bear the expenses for the additional day.
Overall, Carnival said it now expects 2019 adjusted earnings in the range of $4.25 to $4.35 per share, down from an earlier forecast of $4.35 to $4.55.
The company's total revenue rose 11% to $4.84 billion in the second quarter ended May 31, beating analysts' average estimate of $4.53 billion, according to IBES data from Refinitiv.
(Reporting by Uday Sampath in Bengaluru; Editing by Shinjini Ganguli) |
With EPS Growth And More, Care.com (NYSE:CRCM) Is Interesting
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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.
If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested inCare.com(NYSE:CRCM). Even if the shares are fully valued today, most capitalists would recognize its profits as the demonstration of steady value generation. 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 Care.com
In a capitalist society capital chases profits, and that means share prices tend rise with earnings per share (EPS). So like a ray of sunshine through a gap in the clouds, improving EPS is considered a good sign. You can imagine, then, that it almost knocked my socks off when I realized that Care.com grew its EPS from US$0.28 to US$1.25, in one short year. Even though that growth rate is unlikely to be repeated, that looks like a breakout improvement.
I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats). While we note Care.com's EBIT margins were flat over the last year, revenue grew by a solid 11% to US$198m. That's a real positive.
The chart below shows how the company's bottom and top lines have progressed over time. To see the actual numbers, click on the chart.
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 Care.com EPS100% free.
I like company leaders to have some skin in the game, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. So it is good to see that Care.com insiders have a significant amount of capital invested in the stock. To be specific, they have US$28m worth of shares. That's a lot of money, and no small incentive to work hard. That amounts to 6.0% of the company, demonstrating a degree of high-level alignment with shareholders.
Care.com's earnings per share growth has been so hot recently that thinking about it is making me blush. That sort of growth is nothing short of eye-catching, and the large investment held by insiders certainly brightens my view of the company. The hope is, of course, that the strong growth marks a fundamental improvement in the business economics. So yes, on this short analysis I do think it's worth considering Care.com for a spot on your watchlist. If you think Care.com might suit your style as an investor, you could go straight to its annual report, or you could first checkour discounted cash flow (DCF) valuation for the company.
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. |
Man ‘accidentally shot friend in head at point-blank range while playing with gun’, murder trial told
A man was left “devastated” after he accidentally killed his friend by shooting him at point blank range in the head while “mucking around” with a gun, a court heard. Jordan Bassett, 25, said he did not know the Luger pistol was loaded when he blasted Addison Packeer, 27, as they “laughed and joked” in a friend’s flat. Bassett told a jury there had been “no bad vibes” in the room and they had merely been “playing around” with the 9mm weapon as they waited for their food to be served. He claims the gun just “went off” and that he tried in vain to save his friend as he bled from a wound to the right side of his head. Bassett, of Coventry , admits manslaughter but denies murder at Warwick Crown Court , saying he was not aware the gun was loaded. Jurors heard the two men went to a flat on 7 December last year in Willenhall, Coventry, where Wayne Anglin ran a business cooking and selling Caribbean food. They sat in the living room, and as Mr Anglin prepared food for them in the kitchen, he heard a noise and rushed through to see Mr Packeer had been shot to the head. Bassett, who had fired the fatal shot, was trying to stop the bleeding, but then left, taking the gun, magazine and spent cartridge and throwing them into a quarry pond. Giving evidence, Bassett said he had not seen the semi-automatic pistol before Mr Packeer took it from his waistband and put it on the table. Bassett said his gloves were on the table, and Mr Packeer put them on and “began playing around with the firearm ”. He told the court: “He was just messing around with the firearm, just playing around with it in his hand. “I was eating my food. I was looking, but at the same time I was watching the television. “While I was eating my food he was pointing the firearm around, and he pointed it at my knee, and I told him to move it away. “He was just messing around, there was no bad vibes in the room whatsoever.” When asked by his barrister Tim Raggatt QC what happened next, Bassett said: “I did put the gloves on and pick up the firearm. Story continues “Addison was eating his food, and I was bored. I didn’t want to touch the gun without gloves on. “I was just pointing the firearm around, messing around. I didn’t think it was loaded. The magazine was on the table. “I pointed the gun at Wayne, and we were laughing and joking, and Addison was laughing. “I turned round to Addison, and the gun’s gone off. When Addison was messing around with it he’d told me it wasn’t loaded. “I was sitting right next to him. I was in a state of shock, I think. “I threw the firearm, and I was trying my hardest to help Addison. He was bleeding from the right side of his head. “I was shocked, scared, I didn’t know what to think. I was trying to help him. I did go to the bathroom to get a towel to try to stop the bleeding. “I put the towel on the wound, I put a cushion on the settee and laid him in the recovery position to try to help him as much as I could. He was my friend.” Bassett said he told Mr Anglin to call for an ambulance and the police , and that Mr Anglin told him to “get out” and to take the things with him, so he left. Asked why he left, he replied: “I was panicking. I was scared, terrified.” He said he went into some woods near his home and then to a quarry where he threw the gun, magazine and casing into water. Bassett then went to his uncle’s home to get changed “because my clothes were covered in Addison’s blood”. But he said he put the clothes in a bag “because I knew I was going to go to the police station to tell them what happened”. He added: “I didn’t have anything to hide. I wanted to tell the truth about what happened. “Words can’t describe how I feel. “Devastated, a life is lost . Addison was my friend. I would never want to hurt him.” The trial continues. SWNS |
Don’t say ‘IPO’: What to know about Slack’s direct listing
Slack, the workplace messaging platform, is taking an unusual path to the public markets.
On Thursday, shares of the company will open for trading on the New York Stock Exchange under the ticker “WORK,” making it the latest in a parade of highly-valued tech companies to go public this year. But unlike the vast majority of its peers, Slack won’t be doing so by way of an initial public offering.
Instead, it’s doing a direct listing.
This go-public method reduces the number of banks involved in the process (and by extension, the fees the company pays out to them) and designates them as deal advisers rather than underwriters. And direct listings nix the capital raise and new equity issuance that take place in a regular-way IPO. Instead, shares that have been converted to publicly tradeable stock by existing investors are sold to the public.
Slack, valued privately last year at more than $7 billion, in itsprospectuscalled its go-public playbook “a novel method for commencing public trading” of its stock. But it isn’t the first company to embrace a direct listing.
Last year, Spotify (SPOT) was the first major company to list and offer public shares without a capital raise or the help of underwriters. Despite the chaos some investors predicted ahead of the non-traditional listing, Spotify’s first day of public trading was by and large a success. Spotify ranked as the 5th largest opening trade in the U.S. on record, according to data from the NYSE.
Here’s a look at what a direct listing means for Slack – and why a public listing with this profile could only work for a select group of companies.
For starters, by reducing the number of banks involved in their public listings, companies can significantly reduce the costs in fees related to regular-way IPOs.
Slack has brought on Goldman Sachs (GS), Morgan Stanley (MS) and Allen & Co. as primary financial advisors for the deal – the same consortium that advised Spotify’s direct listing. In contrast, IPOs can have more than a dozen investment banks involved as underwriters. A direct listing pares down the underwriting fees incurred, which onaverage total 4-7%of gross proceeds, along with additional offering costs directly related to the IPO.
Plus, a direct listing does away with the brouhaha of a lengthy roadshow – the mainstay of a typical IPO wherein underwriters and company executives gather investors in hotels and conference rooms to try and garner support for the soon-to-be public company.
With a firm like Slack, which already has more than 10 million daily active users and a known brand, some analysts say turning over the marketing reins to banks could actually do more harm than good.
“If you enlist a bunch of bankers to help you got to market, the bankers are going to be very involved in crafting what your pitch deck looks like, how you tell your story to investors, what you’re saying on the road,” Paul Condra, emerging-tech analyst forPitchBook,told Yahoo Finance. “Some companies need that.”
“A company like Slack, I think, has a very honed message,” he added. “They’re very focused on what they’re trying to do. I think their CEO has a really clear vision and probably doesn’t really want or need their advisers mixing up the message.”
And as a major benefit for existing investors, a direct listing removes the lock-up period required in a typical IPO. With a lock-up, company insiders and certain other stakeholders are barred from selling their shares, typically for between 90 to 180 days after the IPO. The requirement is meant to keep these investors from liquidating their assets too quickly – but it also keeps them sidelined from cashing in paper gains in the event of early share price appreciation.
In a direct listing, existing investors’ converted stock comprises all of the shares offered to the public. And since new shares aren’t being issued, a direct listing is much less dilutive for a company.
Company filings from the past month show that Slack’s shareholders have been actively converting Class B shares into publicly tradeable Class A shares in anticipation of the listing. As of June 18, Slackreportedthat about 194 million Class A shares would be available for trading Thursday.
Whether by direct listing or IPO, going public can have many benefits for a company and its shareholders. Early investors can choose to cash out, companies get public shares that can be used as currency for future mergers and acquisitions, and new equity can be issued for follow-on raises down the line.
For most companies, the hallmark of a direct listing – the lack of a capital raise – is reason enough to favor an IPO.
“There are very few companies that want to go through all of this trouble to become a public company and not raise capital at the time of debut,” David Ethridge, PwC Deals managing director, told Yahoo Finance.
But the absence of a capital raise is less of a concern for Slack, given its current cash position. While Slack is not yet profitable, it reported cash and cash equivalents of $841 million in its most recent fiscal year. That would be enough to keep the company afloat for another 8.6 years, based on its current pace of free cash outflow.
Companies that opt for a direct listing also potentially miss out on the benefit of an oft-used safety net for newly public companies: the over-allotment option.
Also called a“greenshoe,”the over-allotment option will have an underwriter include a provision to offer up to a 15% bonus allotment of new shares sold by the company. These could then be repurchased if prices start sinking to help push the stock price back up.
However, even this method has its limits, as bankers have only 30 days to exercise the green shoe option.
The NYSE, in consultation with Slack’s financial advisors, set areference pricefor Slack’s shares at $26.00 on Wednesday.
The reference price is not a share offering price. It’s also not the opening public price for shares.
Slack’s opening share price will be determined in a price discovery process not unlike that of a regular-way IPO. Buy and sell orders will be collected from broker-dealers starting at 9:30 a.m. ET Thursday, John Tuttle, vice chairman of the NYSE, told Yahoo Finance. Throughout the process, a designated market maker will put out indications on the floor of the stock exchange showing a range in which the stock could hypothetically open at a given time.
“That attracts more order flow, which allows them to iterate on that and narrow, or adjust, that indication until the designated market maker, in consultation with the financial advisor, feels like the price discovery process has really played itself out,” Tuttle said.
At that point, new orders will be halted, the first cross will be executed, and trading will continue for the newly public stock.
Slack’s share price in recent private market transactions served as one determinant in coming to a reference price for the stock, Tuttle said. Last year, the New York Stock Exchange set Spotify’s reference price at $132. Shares opened the next day 25.7% higher, at $165.90 apiece, but pared gains by market close. The stock now trades about 13% above its reference price.
In private transactions, Slack’s stock traded in a range between $8.37 and $23.41 each for the year ended January 2019. Its volume-weighted average share price between February and the end of May this year was $26.38, according to Slack’s prospectus.
Other major private tech companies, including Airbnb, have reportedly mulled direct listings. But don’t expect it to overtake the traditional IPO.
“I think we will see more direct listings going forward. Do I think it’s going to replace the IPO? No,” Tuttle said. “Because we have to remember that many companies come to market to raise capital. And so there’s a certain profile of companies that the direct listing would be a fit for ... but yes I think we’ll continue to see direct listings in the future.”
Ethridge, for his part, agreed.
“This is not really what I would call a trend,” Ethridge said. “I think it’s a unique structure that’s beneficial and is going to suit the fact pattern of a very select group of companies who may want to pursue it.”
Note: Updates with Slack’s share reference price. This article was originally published June 19, 2019.
Read the latest financial and business news from Yahoo Finance
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Emily McCormick is a reporter for Yahoo Finance.Follow her on Twitter: @emily_mcck
Read more from Emily:
• Buffett on the American economy, capitalism: ‘It works’
• Tech companies like Lyft want your money – not ‘your opinion’
• Levi Strauss shares jump more than 30% above IPO price at open
• Facebook sued by Trump administration for alleged ‘discriminatory’ ad practices
• Boeing 737 Max groundings ‘pressure’ U.S. economic data: Wells Fargo
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Stocks From Winning & Losing Sectors Post Fed Meet
As widely expected, the Fed stayed put in the latest meeting and hinted at rate cuts this year. The central bank will now “closely monitor the implications of incoming information for the economic outlook.” Though the Fed acknowledged about the economic wellbeing, it addressed that “uncertainties about this outlook have increased.”
More Fed members are now foreseeing a rate cut by next year. Nine members see the possibility of up to two rate cuts in the same frame of time. With inflation expectations tapering off, we expect some policy easing this year.
Inside Economic Forecast
The Fed upgraded its forecast for 2020 real GDP growth from 1.9% in March to 2.0% but maintained the 2019 and 2021 growth forecasts at 2.1% and 1.8%, respectively. The Fed projected the longer-run growth measure of 1.9%. Unemployment was guided down to 3.6% from 3.7% for 2019, 3.7% from 3.8% for 2020 and 3.8% from 3.9% for 2021.
PCE inflation expectations were cut from 1.8% to 1.5% for 2019 and from 2.0% to 1.9% for 2020, but were kept intact at 2.0% for 2021. Federal funds rate projections for 2019 were kept maintained at 2.4% but lowered to 2.1% from 2.6% for 2020 and to 2.4% from 2.6% for 2021. Over the longer term, the rate is projected at 2.9%, same was cut to 2.5% from 2.8% projected in March.
Market Reaction
The immediate impact should be felt in the bond market and the yield on 10-year U.S. Treasury dropped to 2.03% from 2.06% recorded the day earlier. As the policy easing move is largely expected, yield on short-term two-year bond yields fell a steeper 12 bps to 1.74%.
Against this backdrop, we highlight a few sectors that could gain/lose from Fed activity and guidance.
Winning Sectors
Gold Miner– AngloGold Ashanti Limited AU – Up 2% on Jun 19
If rates dive, the greenback loses strength and gold starts gaining. Gold bullion ETFSPDR Gold SharesGLD was up 0.6% on Jun 19. Gold mining also stocks surged as these act as a leveraged play of the underlying asset. AngloGold Ashanti Limited has a Zacks Rank #1 (Strong Buy).
Utilities– Black Hills Corporation BKH – Up 1.7%
This sector performs well in a low-rate environment and serves better if investing sentiments are a bit edgy.
Black Hills Corporation is an energy company that generates wholesale electricity and produces natural gas, crude oil and coal. The stock has a Zacks Rank #2 (Buy) and yields 2.58% annually.
Real-Estate– NexPoint Residential Trust Inc. NXRT – Up 0.5%
This is another sector investors can lay a wager on. This high-yielding sector performs well in a low-rate environment.
The company is engaged in acquiring, owning, operating and selectively developing multifamily properties. It operates primarily in Southeastern United States and Texas. It yields 2.74% annually.
Losing Sectors
Financials– American River Bankshares AMRB – Down 1.5%
Sectors that flourish in a rising rate environment skid post the Fed meeting.
AMRB is one of them. American River Bankshares is the parent company of American River Bank, a regional bank in Northern California. It has a Zacks Rank #5 (Strong Sell).
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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 reportBlack Hills Corporation (BKH) : Free Stock Analysis ReportAmerican River Bankshares (AMRB) : Free Stock Analysis ReportSPDR Gold Shares (GLD): ETF Research ReportsAngloGold Ashanti Limited (AU) : Free Stock Analysis ReportNexPoint Residential Trust, Inc. (NXRT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Opinion: Medical Marijuana Is a Terrible Investment
If investors have learned anything over the past couple of years, it's that the marijuana industry, when taken as a whole, is a big-money business. Tens of billions of dollars in transactions is being conducted annually on the black market around the world, and if legalizations continue, a good chunk of these sales can be moved into legal channels, creating one of the fastest-growing industries on the planet.
Although recreational marijuana offers the greatest dollar-based sales potential for cannabis stocks, it's actually the medical side of the equation that usually generates the best margins. That's because medical marijuana patients tend to use cannabis more often, buy product more frequently, and purchase high-margin derivatives (e.g., oils, edibles, infused beverages, topicals, vapes, and concentrates) relative to adult-use weed consumers. They've really become the bread and butter for high operating margins in the cannabis industry.
That's what makes what I'm about to tell you so hard to believe: Medical marijuana is a terrible investment opportunity.
Image source: Getty Images.
Now, let me clarify this statement a bit. I'mnotsaying the companies that retail or grow cannabis for medical purposes are necessarily bad investments. That's determined on a case-by-case basis.
Rather, I'm explicitly suggesting that companies developing experimental cannabis-derived or cannabis-like medicines, or those which already have marijuana medicines on pharmacy shelves, are poor investments.
Think about this for a moment: Despite numerous university-level studies showing positive correlations for cannabis in treating chronic pain, glaucoma, anxiety, intestinal disorders, anorexia, epilepsy, and a host of other ailments, you can count on one hand how many ailments the U.S. Food and Drug Administration (FDA) has approved cannabis, its cannabinoids, and synthetic cannabinoids to treat.
GW Pharmaceuticals'(NASDAQ: GWPH)lead drug Epidiolex, an oral cannabidiol (CBD)-based solution and the only cannabis-derived drug to get the OK from the FDA, is approved to treat two rare types of childhood-onset epilepsy (Dravet syndrome and Lennox-Gastaut syndrome). Beyond Epidiolex, a small number of synthetic compounds aid in treating chemotherapy-induced nausea and vomiting (CINV) and anorexia associated with AIDS. The point being that the scope of proof that cannabis or its cannabinoids can treat a broad spectrum of ailments simply isn't there in the eyes of the FDA. University-level studies, or any study for that matter that wasn't directly approved by the FDA, aren't considered by the regulatory body as valid evidence of efficacy.
Image source: Getty Images.
To build on that point, not all cannabis and synthetic compound trials deliver results as expected. As an example, even though cannabis and its cannabinoids have long been considered an effective treatment for chronic pain, GW Pharmaceuticals' Sativex, a CBD- and tetrahydrocannabinol (THC)-containing oromucosal spray that's approved in more than a dozen countries outside the U.S. (but not in the U.S.), badly failed a phase 3 trial in the U.S. as a treatment for cancer pain.
Further, GW Pharmaceuticals' experimental cannabidivarin (CBDV)-based drug GWP42006 flunked a phase 2a proof-of-concept study in February 2018 as a treatment for patients with focal seizures. In other words, cannabis and its cannabinoids aren't a cure-all, and as we see with most medicines, efficacy really depends on the ailment and the chemical makeup of the compound(s) being tested.
If this isn't enough evidence that medical marijuana just isn't a good investment opportunity, let's take a closer look at some real-world examples of therapies that actually made it to market, both in the U.S. and abroad.
Within the U.S., one of the more high-profile examples was the FDA approval of oral dronabinol solution Syndros in July 2016. Dronabinol is a synthetic version of THC, the cannabinoid that gets users high. Developed byInsys Therapeutics(NASDAQ: INSY), Syndros demonstrated solid efficacy in late-stage trials as an alternative treatment for CINV and anorexia associated with AIDS. When it officially hit pharmacy shelves at the end of July 2017 -- it took a year to get the drug's labeling approved and for scheduling by the Drug Enforcement Agency to occur -- there was the expectation of $200 million to $300 million in peak annual sales for what could become Insys Therapeutics' crown jewel. However, after its first full year of sales in 2018, Syndros delivered merely $3.3 million in sales. Inclusive of its five months on the market in 2017, Insys' synthetic THC drug hadn't even generated $5 million in net lifetime sales.
Image source: Getty Images.
And Insys isn't alone. If we go into the way-back machine, we can find Cesamet, which was approved by the FDA in 1985. Developed and sold byEli Lilly(NYSE: LLY), this synthetic cannabinoid treats CINV by binding with cannabinoid receptor-1 in the body, thereby reducing nausea. Unfortunately, Eli Lilly's drug came with a host of unpleasant side effects, including noted effects on the central nervous system, changes in mood, confusion, and hallucinations. Not surprisingly, just four years after its approval, Eli Lilly took Cesamet off the market for commercial reasons, which is fancy terminology that likely means it was costing the company more than it was worth to try and market the drug. Cesamet was sold in 2004 toBausch Health Companies(formerly Valeant Pharmaceuticals), which doesn't break out the sales figures for every established drug it owns.
Even GW Pharmaceuticals, a company entirely devoted to cannabinoid compounds, has been bitten by high expectations with little actual reward. The aforementioned Sativex, a treatment for spasticity associated with multiple sclerosis, managed only $6.6 million in sales in 2016 and $7.8 million in 2017, despite being approved in more than a dozen markets.
The track record for synthetic and cannabis-derived medical marijuana products just isn't that encouraging, despite the hype. That makes pure-play medical marijuana drug developers a potential liability for your investment portfolio.
More From The Motley Fool
• Beginner's Guide to Investing in Marijuana Stocks
• Marijuana Stocks Are Overhyped: 10 Better Buys for You Now
• Your 2019 Guide to Investing in Marijuana Stocks
Sean Williamshas no position in any of the stocks mentioned. The Motley Fool recommends Bausch Health Companies. The Motley Fool has adisclosure policy. |
An Intrinsic Calculation For The Kroger Co. (NYSE:KR) Suggests It's 43% Undervalued
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Does the June share price for The Kroger Co. (NYSE:KR) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value. I will be using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.
Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model.
See our latest analysis for Kroger
We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value:
[{"": "Levered FCF ($, Millions)", "2019": "$2.15k", "2020": "$1.96k", "2021": "$1.88k", "2022": "$1.87k", "2023": "$1.87k", "2024": "$1.89k", "2025": "$1.92k", "2026": "$1.96k", "2027": "$2.00k", "2028": "$2.05k"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x6", "2020": "Analyst x5", "2021": "Analyst x6", "2022": "Analyst x1", "2023": "Est @ 0.31%", "2024": "Est @ 1.03%", "2025": "Est @ 1.54%", "2026": "Est @ 1.9%", "2027": "Est @ 2.15%", "2028": "Est @ 2.32%"}, {"": "Present Value ($, Millions) Discounted @ 7.76%", "2019": "$2.00k", "2020": "$1.69k", "2021": "$1.50k", "2022": "$1.39k", "2023": "$1.29k", "2024": "$1.21k", "2025": "$1.14k", "2026": "$1.08k", "2027": "$1.02k", "2028": "$969.87"}]
Present Value of 10-year Cash Flow (PVCF)= $13.28b
"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 7.8%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$2.0b × (1 + 2.7%) ÷ (7.8% – 2.7%) = US$42b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$42b ÷ ( 1 + 7.8%)10= $19.82b
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $33.11b. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of $41.46. Compared to the current share price of $23.64, the company appears quite good value at a 43% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out.
Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Kroger 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 7.8%, which is based on a levered beta of 0.843. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Whilst important, DCF calculation shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Kroger, There are three pertinent aspects you should further research:
1. Financial Health: Does KR 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 KR'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 KR? 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. |
Facebook Cryptocurrency Chief Says Libra Is Not a Threat to Bitcoin
ByCCN Markets: Facebook confirmed that its newcryptocurrency Libraisn’t designed to kill or compete with bitcoin. David Marcus, the man leading Facebook’s crypto efforts, said Libra and bitcoin can co-exist with differing use cases and that’s he a big fan of BTC.
In a tweet yesterday, he explained that Libra is designed to be a stable payment system. On the other hand, Bitcoin, he believes, is a store of value or a non-correlated asset, playing into the ‘digital gold’ narrative.
“Many want to pit Libra vs. Bitcoin. In my mind these two are not in the same category. BTC is a decorrelated (investment) asset. Libra is designed to be a stable medium-of-exchange. I have been, and remain a fan of BTC, but for very different purposes.”
Marcus, who was former president at PayPal, claims Libra is a better digital cash and payment system, while bitcoin is a long-term investment vehicle.
Read the full story on CCN.com. |
Donald Trump: My state visit the most fun the Queen had 'in 25 years'
Donald Trump claims the Queen described his UK state visit as "the most fun she'd had in years' (PA) Donald Trump has claimed the Queen said she’d “had the most fun in 25 years” during his recent state visit to the UK . The US president said he’d shared an “automatic chemistry’ with the British monarch when he arrived in Britain for the three day visit in June. But speaking on TV show ‘Fox and Friends’ on his birthday, Mr Trump claimed the Queen’s “people” had told him just how much the Queen enjoyed her time with the firebrand Republican. Mr Trump often speaks highly of the Queen (AP) He told presenters during the phone-in: “I had such a great relationship and we were laughing and having fun. “Her people told me she hadn’t had such fun in 25 years. “Now, then I got criticised for it because we were having too much, but it doesn’t matter. Read more: Donald Trump brands Sadiq Khan a 'disaster' after latest violence in London Trump administration to start holding migrant children in WWII internment camp Tory candidate Jeremy Hunt has been taking Twitter tips from Donald Trump “But we had a great relationship and I had a great relationship with Charles and honestly I have a very good relationship with many world leaders.” Mr Trump had told Fox News in a previous interview that he "didn't even know who the other people at the table were” because he had such great conversation with the Queen. He said: "There are those that say they have never seen the Queen have a better time, a more animated time." The US president recently said he shared chemistry with the Queen (PA) "I didn't even know who the other people at the table were, never spoke to them. We just had a great time together.” "The meeting with the Queen was incredible,” he added. “I think I can say I really got to know her because I sat with her many times and we had automatic chemistry, you will understand that feeling. “It's a good feeling. But she's a spectacular woman." The former businessman also denied claims he fist bumped the Queen as they greeted one another at Buckingham Palace on his arrival to the UK. |
Here's Why You Should Hold PerkinElmer (PKI) Stock for Now
PerkinElmer Inc.PKI is expected to gain from a broad spectrum of products and acquisitions. Meanwhile, foreign exchange headwinds plague the company.
Over the past year, shares of this Zacks Rank #3 (Hold) company have rallied 29.2% compared with the industry’s 22.2% rise. The current level also compares favorably with the S&P 500 index’s 4.8% rise.
What’s Favoring the Stock?
Wide Range of Products
PerkinElmer delivers a comprehensive suite of scientific informatics and software solutions.
The company’s products include the industry-leading ChemDraw software, Electronic Lab Notebooks, including cloud-based Elements SaaS Offering and enterprise E-Notebook Solutions, along with the TIBCO Spotfire platform for scientific data analytics.
There has been a latest development of assays for Zika, Dengue and Chikungunya viruses using the company’s dried blood spot technologies as well as rapid lateral flow tests created by combining EUROIMMUN's antigen capabilities with lateral flow technologies from Tulip.
Acquisitions
Acquisitions and strategic partnerships have been key catalysts for PerkinElmer over the years. In recent times, PerkinElmer completed the acquisition of DANI Instruments in Italy. Per management, this tie-up will help accelerate workflow solutions in food, pharma and environmental end markets.
In the last reported quarter, the company announced the buyout of Cisbio Bioassays — a leading custom assay service provider. The addition of Cisbio strengthens PerkinElmer’s position in the life sciences and diagnostics markets.
It is encouraging to note that for 2019, PerkinElmer expects earnings per share within $4.02-$4.07, up from the previously guided range of $4.00-$4.05.
Deterrents
PerkinElmer expects foreign exchange headwinds of approximately $18 million in the second quarter of 2019 and $42 million in the full year. Additionally, on the tariff side, PerkinElmer confirmed that it expects to face a headwind of $1 million or less in the coming quarters from China.
PerkinElmer, Inc. Price and Consensus
PerkinElmer, Inc. price-consensus-chart | PerkinElmer, Inc. Quote
Which Way Are Estimates Treading?For the second quarter, the Zacks Consensus Estimate for earnings stands at $1.01, calling for a year-over-year rise of 11%. The same for revenues is pegged at $730.3 million, suggesting a year-over-year increase of 3.8%.
For 2019, the Zacks Consensus Estimate for revenues is pegged at $2.92 billion, calling for rise of 5.1% year over year. For earnings, the same is pinned at $4.05, suggesting 12.2% growth year over year.
Key Picks
A few better-ranked stocks in the broader medical space are DENTSPLY SIRONA XRAY, Masimo Corporation MASI ad CONMED Corporation CNMD, each carrying a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DENTSPLY’s long-term earnings growth rate is expected at 11.5%.
Masimo’s long-term earnings growth rate is projected at 16.1%.
CONMED’s long-term earnings growth rate is estimated at 13.3%.
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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 reportPerkinElmer, Inc. (PKI) : Free Stock Analysis ReportMasimo Corporation (MASI) : Free Stock Analysis ReportCONMED Corporation (CNMD) : Free Stock Analysis ReportDENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Bet Big on DuPont Analysis With These Top 5 Picks
Return on equity is an investor-favorite metric when it comes to cherry-picking quality stocks. But ROE doesn’t always tell the complete story and an investor might make a mistake by selecting stocks based on this ratio. Thus, taking a step beyond the basic ROE and analyzing it at an advanced level or applying the DuPont technique seem a prudent decision.
Here is how DuPont breaks down ROE into its different components:
ROE = Net Income/EquityNet Income / Equity = (Net Income / Sales) * (Sales / Assets) * (Assets / Equity)ROE = Profit Margin * Asset Turnover Ratio * Equity Multiplier
Why Use DuPont?
Although one can’t play down the importance of normal ROE calculation, the fact remains that it doesn’t always provide a complete picture. The DuPont analysis, on the other hand, allows investors to assess the elements that play a dominant role in any change in ROE. It can help investors to segregate companies having higher margins from those having high turnover. For example, high-end fashion brands generally survive on high margin as compared with retail goods, which rely on higher turnover.
In fact, it also sheds light on the company’s leverage status, which can go a long way in selecting stocks poised for gains. A lofty ROE could be due to the overuse of debt. Thus, the strength of a company can be misleading if it has a high debt load.
So, an investor confined solely to an ROE perspective may be confused if he or she has to judge between two stocks of equal ratio. This is where DuPont analysis wins over and spots the better stock.
Investors can simply do this analysis by taking a look at the company’s financials.However, looking at financial statements of each company separately can be a tedious task. Screening tools like Zacks Research Wizard can come to your rescue and help you shortlist the stocks that look impressive with a DuPont analysis.
Screening Parameters•Profit Margin more than or equal to 3:As the name suggests, it is a measure of how profitably the business is running. Generally, it is the key contributor to ROE.•Asset Turnover Ratio more than or equal to 2:It allows an investor to assess management’s efficiency in using assets to drive sales.•Equity Multiplier between 1 and 3:It’s an indication of how much debt the company uses to finance its assets.•Zacks Rank less than or equal to 2:Stocks having a Zacks Rank #1 (Strong Buy) or 2 (Buy) generally perform better than their peers in all types of market environment.•Current Price more than $5:This screens out the low priced stocks. However, when looking for lower priced stocks, this criterion can be removed.Here are five of the 10 stocks that made it through the screen:
Medifast Inc MED:This company has a Zacks Rank #2 and is a leading manufacturer and distributor of clinically proven healthy living products and programs. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Shoe Carnival Inc. SCVL:This company carries a Zacks Rank #2 and is one of the nation's largest family footwear retailers, offering a broad assortment of moderately priced dress, casual and athletic footwear for men, women and children with emphasis on national and regional name brands. It belongs to a top-ranked Zacks sector (top 36%).
Marine Products Corporation MPX:This Zacks #2 Ranked company is the third-largest distributor of sterndrive powerboats in the United States. It belongs to a top-ranked Zacks industry (top 7%).
Amedisys Inc. AMED:This provider of healthcare in the home holds a Zacks Rank of 2. The stock hails from the top-ranked Zacks industry (top 28%).
NVR Inc. NVR:This Zacks #1 Ranked company operates in two business segments: homebuilding and mortgage banking. It comes from a top-ranked Zacks industry (top 19%).
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at:https://www.zacks.com/performance.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportNVR, Inc. (NVR) : Free Stock Analysis ReportMEDIFAST INC (MED) : Free Stock Analysis ReportMarine Products Corporation (MPX) : Free Stock Analysis ReportAmedisys, Inc. (AMED) : Free Stock Analysis ReportShoe Carnival, Inc. (SCVL) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Naspers Invests in Africa Uber-Like Cleaning Service Startup
(Bloomberg) -- Naspers Ltd. backed on-demand housekeeping service SweepSouth, part of a commitment to invest almost $100 million in tech startups in its home market of South Africa.
The 30 million-rand ($2.1 million) stake makes Naspers the largest investor in the company through its Foundry fund. A valuation was not disclosed.
SweepSouth, co-founded by Aisha Pandor and her husband Alen Ribic in 2014, lets users enter their location, the number of rooms that need cleaning, and any required extras such as laundry and ironing, then connects them to nearby workers. Payment takes place within the app.
Although the investment announced Thursday is small by international standards, the Naspers unit, called Naspers Foundry, has said it intends to invest 1.4 billion rand in South African tech startups to bolster local entrepreneurs. That’s as Africa’s biggest company prepares to list its international internet assets on Euronext Amsterdam next month.
Read more: Naspers Looks to Convince South Africans of Foreign Listing
(Updates with founder in third paragraph.)
To contact the reporter on this story: Loni Prinsloo in Johannesburg at lprinsloo3@bloomberg.net
To contact the editors responsible for this story: Rebecca Penty at rpenty@bloomberg.net, Nate Lanxon, John Bowker
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
What Is Clarus Corporation's (NASDAQ:CLAR) Share Price Doing?
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Clarus Corporation (NASDAQ:CLAR), which is in the leisure business, and is based in United States, saw a decent share price growth in the teens level on the NASDAQGS over the last few months. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Today I will analyse the most recent data on Clarus’s outlook and valuation to see if the opportunity still exists.
See our latest analysis for Clarus
Good news, investors! Clarus is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $21.43, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Clarus’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
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. With profit expected to grow by a double-digit 19% in the upcoming year, the short-term outlook is positive for Clarus. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
Are you a shareholder?Since CLAR 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 CLAR 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 CLAR. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Clarus. You can find everything you need to know about Clarus inthe latest infographic research report. If you are no longer interested in Clarus, 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. |
American Outdoor Brands' (AOBC) Q4 Earnings & Sales Beat
American Outdoor Brands CorporationAOBC reported fourth-quarter fiscal 2019 (ended Apr 30, 2019) financial results. The company’s adjusted earnings of 26 cents per share surpassed the Zacks Consensus Estimate of 17 cents by 52.9%. The bottom line also improved 8.3% from the year-ago quarter’s 24 cents.The company’s GAAP earnings came in at 18 cents per share in the reported quarter compared with 14 cents in fourth-quarter fiscal 2018.For fiscal 2019, earnings were 83 cents per share, up 80.4 % from 46 cents in the previous year. Moreover, full-year earnings figure exceeded the Zacks Consensus Estimate of 75 cents by 10.7%.RevenuesAmerican Outdoor Brands’ total sales amounted to $175.7 million in the quarter under review, which exceeded the Zacks Consensus Estimate of $168 million by 4.6%. The top line also increased 2.2% from $172 million in the year-ago quarter.Full-year net sales were $638.3 million, up 5.2% from $606.9 million a year ago.Operational HighlightsIn the reported quarter, total operating income was $15.3 million compared that of $16.4 million generated during the year-ago quarter.Gross margin was 36.1% compared with 33.4% in fourth-quarter fiscal 2018. American Outdoor Brands’ operating expenses totaled $48.1 million, up 17.3% from $41 million in the prior-year quarter. Higher research and development, selling and marketing, and general and administrative expenses primarily lead to this decline.
American Outdoor Brands Corporation Price, Consensus and EPS Surprise
American Outdoor Brands Corporation price-consensus-eps-surprise-chart | American Outdoor Brands Corporation Quote
Financial Highlights
American Outdoor Brands’ cash and cash equivalents were $41 million as of Apr 30, 2019, compared with $48.9 million as of Apr 30, 2018.Notes and loans payables (net) were $149.4 million as of Apr 30, 2019, compared with $180.3 million as of Apr 30, 2018.Net cash provided by operating activities for the three months ended Apr 30, 2019, was $57.5 million compared with $61.6 million a year ago.Q1 and Fiscal 2020 GuidanceFor first-quarter fiscal 2020, American Outdoor Brands expects adjusted earnings of 3-7 cents per share. Revenues are anticipated to be $120-$130 million.For fiscal 2020, it continues to expect adjusted earnings of 76-84 cents per share on revenues of $630-$650 million. Currently, the Zacks Consensus Estimate for earnings and revenues is pegged at 82 cents and $653.15 million, respectively.Zacks RankAmerican Outdoor Brands sports a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.Other Defense ReleasesTextron Inc. TXT reported first-quarter 2019 earnings from continuing operations of 76 cents per share, which surpassed the Zacks Consensus Estimate of 70 cents by 8.6%.Lockheed Martin Corp. LMT reported first-quarter 2019 earnings of $5.99 per share, which surpassed the Zacks Consensus Estimate of $4.29 by 39.6%.The Boeing Company BA reported adjusted earnings of $3.16 per share for first-quarter 2019, which outshined the Zacks Consensus Estimate of $3.11 by 1.6%.Will you retire a millionaire?One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”Click to get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportLockheed Martin Corporation (LMT) : Free Stock Analysis ReportThe Boeing Company (BA) : Free Stock Analysis ReportAmerican Outdoor Brands Corporation (AOBC) : Free Stock Analysis ReportTextron Inc. (TXT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
'Neo-nazis' paint swastikas on walls of occupation bunker in Jersey
A vandal daubed swastikas over an occupation bunker in Jersey (SWNS) Police in Jersey are trying to track down a vandal who painted swastikas on the walls of an occupation bunker shortly after D-Day commemorations . The offensive Nazi symbol was daubed in bright red paint on several places across the historic site on the Channel Islands. Police and locals believe the regular defacement of the bunkers, built when the Germans occupied Jersey during the Second World War , is down to a neo-Nazi repeatedly targeting them. The bunkers were built when the Germans occupied Jersey during the Second World War (SWNS) Police believe a repeat offender daubed the offensive Nazi symbol in bright red paint on several places across the historic site (SWNS) Tony Pike, president of the Channel Islands Occupation Society, which preserves and protects the historic bunkers, said things had got so bad they were now considering installing cameras in a desperate bid to catch the offender. He said: "It has happened again which is disappointing, because these are places that bring tourism to Jersey. "I don’t want to have to scrub it off again next year, so we are looking at other measures we can use. Read more from Yahoo News UK: London to close 12 miles of roads on biggest car-free day to date Black cab rapist John Worboys admits to four additional sex attacks Man, 52, dies after bar brawl at Butlin's holiday camp "We will be putting in cameras in some areas to catch this person red handed. "I believe it is the same person. I can tell that the symbols have been sprayed on the same. He is just going through the colour chart." Tony said the society are now considering installing CCTV cameras in the bunker to catch the culprit. He added: "It could be someone who objected to fortification, or it could be a neo-Nazi – and I think it is. Tony Pike, president of the Channel Islands Occupation Society, with a 15.5cm K418(f) French field gun at Batterie Moltke (SWNS) The symbols were painted on shortly after the D-Day commemorations (SWNS) "They have sprayed HH and SS, which makes me think it is a neo-Nazi trying to spread their own agendas. "They hide them in little places at the bunkers and the whole graffiti is just disrespectful." Tony spent an entire day scrubbing the symbols off and has informed the States police that he believes it is the same person who has committed the acts each time. He is appealing for people to come forward with any information. ---Watch the latest videos from Yahoo UK--- |
'Camilla should be Queen when Charles becomes King'
The Duchess of Cornwall should be given the title of Queen when the Prince of Wales ascends the throne, says Jennie Bond. The former BBC royal correspondent covered Prince Charles’ marriage breakdown to Princess Diana in the early nineties. Charles’s affair with Camilla led to a significant backlash and she initially struggled to gain support from the British public. The couple wed in 2005 and in recent years, public support for Camilla appears to have increased. READ MORE: Donald Trump 'moved' by Prince Charles about climate change The Duchess of Cornwall at Royal Ascot. [Photo: PA] Bond tells Yahoo UK ’s ‘ The Royal Box :’ “I’m glad there’s much more sympathy towards both Camilla and Charles now. “Although I still do get the idea that there is a resistance to her [Camilla] being Queen. “I think it’s still the residual feeling that she and Charles betrayed Diana, but as I say, I think that’s a long time ago and that in my view, if your husband’s called king, you’re called queen.” READ MORE: 'If Camilla's won over William and Harry, we should cut her some slack' Charles and Camilla on their wedding day in 2005. [Photo: PA] Last year it was reported that Clarence House had removed the question, “Will the Duchess become Queen when The Prince becomes King?” from its FAQs section . Their response said: “As was explained at the time of their wedding in April 2005, it is intended that The Duchess will be known as HRH The Princess Consort when The Prince of Wales accedes to The Throne.” The removal of the statement sparked speculation that Charles will make Camilla queen when he takes the throne. Historian Kate Williams previously told Yahoo UK : “There has not been an official notification, and Charles has said in a few interviews, he used the word queen, it’s obviously more Charles’ expectation and wish that she would be queen, but at the moment the official line is that she’ll be princess consort.” |
Do Institutions Own UP Fintech Holding Limited (NASDAQ:TIGR) Shares?
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A look at the shareholders of UP Fintech Holding Limited (NASDAQ:TIGR) can tell us which group is most powerful. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.'
UP Fintech Holding is not a large company by global standards. It has a market capitalization of US$719m, which means it wouldn't have the attention of many institutional investors. In the chart below below, we can see that institutions don't own many shares in the company. We can zoom in on the different ownership groups, to learn more about TIGR.
See our latest analysis for UP Fintech Holding
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.
Since institutions own under 5% of UP Fintech Holding, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. So if the company itself can improve over time, we may well see more institutional buyers in the future. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.
Hedge funds don't have many shares in UP Fintech Holding. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our information suggests that insiders maintain a significant holding in UP Fintech Holding Limited. Insiders own US$165m worth of shares in the US$719m company. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You canclick here to see if those insiders have been buying or selling.
With a 38% ownership, the general public have some degree of sway over TIGR. 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 seems that Private Companies own 25%, of the TIGR stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
We can see that public companies hold 12%, of the TIGR shares on issue. It's hard to say for sure, but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
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.
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. |
Estimating The Intrinsic Value Of BWX Technologies, Inc. (NYSE:BWXT)
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Today we will run through one way of estimating the intrinsic value of BWX Technologies, Inc. (NYSE:BWXT) by taking the expected future cash flows and discounting them to today's value. This is done 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. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model.
View our latest analysis for BWX Technologies
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. 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": "$60.90", "2020": "$174.44", "2021": "$262.73", "2022": "$318.00", "2023": "$312.00", "2024": "$310.39", "2025": "$311.82", "2026": "$315.37", "2027": "$320.47", "2028": "$326.72"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x4", "2020": "Analyst x5", "2021": "Analyst x3", "2022": "Analyst x1", "2023": "Analyst x1", "2024": "Est @ -0.52%", "2025": "Est @ 0.46%", "2026": "Est @ 1.14%", "2027": "Est @ 1.62%", "2028": "Est @ 1.95%"}, {"": "Present Value ($, Millions) Discounted @ 8.71%", "2019": "$56.02", "2020": "$147.61", "2021": "$204.52", "2022": "$227.71", "2023": "$205.51", "2024": "$188.08", "2025": "$173.80", "2026": "$161.70", "2027": "$151.15", "2028": "$141.76"}]
Present Value of 10-year Cash Flow (PVCF)= $1.66b
"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 8.7%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$327m × (1 + 2.7%) ÷ (8.7% – 2.7%) = US$5.6b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$5.6b ÷ ( 1 + 8.7%)10= $2.44b
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 $4.09b. 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 $43.02. Relative to the current share price of $50.4, the company appears around fair value at the time of writing. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.
We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at BWX Technologies 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 8.7%, which is based on a levered beta of 1.003. 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 BWX Technologies, I've compiled three additional aspects you should further research:
1. Financial Health: Does BWXT 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 BWXT'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 BWXT? 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. |
Rate-cut euphoria elevates S&P 500 to record high
By Noel Randewich
(Reuters) - The S&P 500 hit a record high on Thursday, lifted by Wall Street's expectations that the Federal Reserve will cut interest rates as soon as next month to keep the U.S.-China trade war from stalling economic growth.
All 11 S&P 500 sector indexes logged gains for the session after the U.S. central bank left rates unchanged at the end of its two-day policy meeting on Wednesday, but pledged to "act as appropriate" to sustain economic health.
Wall Street's main indexes have gained in recent weeks on expectations of a rate cut and hopes of a revival of trade talks between the United States and China at the Group of 20 meeting next week in Japan.
The benchmark S&P 500 index, which has risen about 7% so far in June, closed above its previous record high close on May 3.
"It was always going to be difficult for the Fed to live up to high market expectations. While the bar was set high, policymakers appear to have cleared it with ease while also leaving themselves with plenty of outs," said Craig Erlam, senior market analyst at OANDA in London.
A more-than-expected dovish Fed led to U.S. Treasury bond yields tumbling, with the benchmark 10-year yields dropping below 2% for the first time in more than 2-1/2 years.
The energy index jumped 2.21%, the most among the 11 major S&P sectors, as oil prices surged over 5% on renewed tensions in the Middle East after Iran shot down a U.S. military drone.
"This new high on the S&P 500 could be fool's gold," warned Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. "We have this simmering tension in Iran that could spill over and create all kinds of global fears."
The Dow Jones Industrial Average climbed 0.94% to end at 26,753.17 points, while the S&P 500 gained 0.95% to 2,954.18.
The Nasdaq Composite added 0.8% to finish at 8,051.34.
Apple rose 0.8% and briefly hit $200 a share for the first time since early May. The iPhone maker is viewed as a major potential casualty in Trump's trade war, should it worsen.
Shares of Slack Technologies Inc, the fast-growing workplace messaging platform, soared almost 50% in their public trading debut, valuing the company at more than $25 billion.
The technology sector rose 1.43%, with Oracle Corp leading the charge. Its shares jumped 8.2% after the business software maker forecast current-quarter profit above estimates. Its gain fueled the S&P 500 more than any other stock.
Cruise operator Carnival Corp slid 7.6%, the most among S&P companies, after cutting its profit forecast for the year on the Trump administration's sudden ban on cruises to Cuba and weakening demand in Europe over political uncertainty.
Rivals Royal Caribbean Cruises Ltd and Norwegian Cruise Line Holdings Ltd dropped over 2% each.
Buoying sentiment was data which showed the number of Americans filing applications for unemployment benefits fell more than expected last week, pointing to underlying labor market strength despite a sharp slowdown in job growth in May.
Volume on U.S. exchanges was 7.5 billion shares, compared with the 6.9 billion-share average for the full session over the last 20 trading days.
Advancing issues outnumbered declining ones on the NYSE by a 3.14-to-1 ratio; on Nasdaq, a 1.44-to-1 ratio favored advancers.
The S&P 500 posted 103 new 52-week highs and three new lows; the Nasdaq Composite recorded 127 new highs and 46 new lows.
(Reporting by Noel Randewich; Additional reporting by Shreyashi Sanyal and Aparajita Saxena in Bengaluru; Editing by Nick Zieminski and Jonathan Oatis) |
5 Bargain Breakout Stocks for Superlative Returns
Selecting breakout stocks is probably one of the most favored techniques among active investors. The idea behind this kind of stock selection is to determine stocks that are trading within a narrow channel. These stocks are to be bought as soon as they move above this band and sold when they fall below. In case a stock moves above this band, it usually gains momentum.
Spotting a Breakout Stock
The first step to selecting the right breakout stock is to calculate its support and resistance level. A support level is the lower bound for stock movements while a resistance level refers to the maximum price which it trades within over a considerable period.
In other words, the demand for a stock is at its lowest at its support level, which means most traders are willing to sell it. At the resistance level, most traders are willing to go long on the stock, which means that they would like to add them to their portfolios. The key to identifying breakout stocks is to zero in on those that are on the verge of a breakout or those that have just broken above the resistance level.
Identifying Whether It’s for Real
Stocks which have breached their resistance level should ideally be in high demand among traders. But the test of whether this is a genuine breakout is whether they go on to attain higher prices and the old barrier becomes a new support. This is why it is important to determine whether a long-term price trend is about to emerge.
Only a study of long-term trends can determine whether the existing trading channel has been breached effectively. This indicates the strength of the support or resistance levels. If you can identify the effective channel for a stock, picking it even at a not-so-reasonable price would give you significant returns.
Screening Parameters
•Percentage price change over four weeks between 10% and 20%(Stocks which are showing considerable price increases, but whose gains are not excessive.)
•Current Price /52-Week High greater than or equal to 0.9(Stocks which are trading 90% close to their 52-week highs.)
•Zacks Rank less thanor equal to #2(Only Strong Buy and Buy rated stocks can get through.)
•Beta for 60 months less than or equal to 2(Stocks which move by a greater degree than the broader market but within a reasonable limit.)
•Current price less than or equal to $20(Stocks which are reasonably priced.)
These criteria narrow down the universe of over 6986 stocks to only 6.
Here are the top 5 stocks that meet these criteria:
Avon Products, Inc.AVP manufactures and markets beauty and related products. Avon Products has a Zacks Rank #1 (Strong Buy) and its expected earnings growth for the current year is more than 100%.
Hallmark Financial Services, Inc.HALL and its wholly owned subsidiaries engage in the sale of property and casualty insurance products. Hallmark Financial’s expected earnings growth for the current year is 33.7%. Hallmark Financial has a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
DHI Group, Inc.DHX offers specialized websites focused on select professional communities. DHI Group has a Zacks Rank #2 (Buy) and its expected earnings growth for the current year is 82.1%.
Anglo American plcNGLOY is a mining company. Its portfolio includes iron ore, manganese, metallurgical coal, copper, nickel, platinum and diamonds. Anglo American has a Zacks Rank #2 and its expected earnings growth for the current year is 9.6%.
Toray Industries, Inc.TRYIY is a manufacturer, processor and seller of textiles, fibers, performance chemicals and composites. Toray Industries has a Zacks Rank #2 and its expected earnings growth for the current year is 19.1%.
You can get the rest of the stocks meeting these criteria by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and backtest them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at:https://www.zacks.com/performance.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportDHI Group, Inc. (DHX) : Free Stock Analysis ReportAvon Products, Inc. (AVP) : Free Stock Analysis ReportHallmark Financial Services, Inc. (HALL) : Free Stock Analysis ReportToray Industries Inc. (TRYIY) : Free Stock Analysis ReportANGLO AMER ADR (NGLOY) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Why Tronox Holdings plc’s (NYSE:TROX) Use Of Investor Capital Doesn’t Look Great
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Today we'll look at Tronox Holdings plc (NYSE:TROX) and reflect on its potential as an investment. Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires.
First, we'll go over how we calculate ROCE. Next, we'll compare it to others in its industry. Last but not least, we'll look at what impact its current liabilities have on its ROCE.
ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business. 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.'
Analysts use this formula to calculate return on capital employed:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
Or for Tronox Holdings:
0.061 = US$260m ÷ (US$4.7b - US$442m) (Based on the trailing twelve months to March 2019.)
So,Tronox Holdings has an ROCE of 6.1%.
See our latest analysis for Tronox Holdings
One way to assess ROCE is to compare similar companies. In this analysis, Tronox Holdings's ROCE appears meaningfully below the 11% average reported by the Chemicals industry. This could be seen as a negative, as it suggests some competitors may be employing their capital more efficiently. Separate from how Tronox Holdings stacks up against its industry, its ROCE in absolute terms is mediocre; relative to the returns on government bonds. Readers may find more attractive investment prospects elsewhere.
Tronox Holdings reported an ROCE of 6.1% -- better than 3 years ago, when the company didn't make a profit. This makes us wonder if the company is improving.
It is important to remember that ROCE shows past performance, and is not necessarily predictive. Companies in cyclical industries can be difficult to understand using ROCE, as returns typically look high during boom times, and low during busts. ROCE is only a point-in-time measure. Since the future is so important for investors, you should check out ourfreereport on analyst forecasts for Tronox Holdings.
Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE. To counteract this, we check if a company has high current liabilities, relative to its total assets.
Tronox Holdings has total assets of US$4.7b and current liabilities of US$442m. As a result, its current liabilities are equal to approximately 9.4% of its total assets. With low levels of current liabilities, at least Tronox Holdings's mediocre ROCE is not unduly boosted.
Tronox Holdings looks like an ok business, but on this analysis it is not at the top of our buy list. But note:make sure you look for a great company, not just the first idea you come across.So take a peek at thisfreelist of interesting companies with strong recent earnings growth (and a P/E ratio below 20).
If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
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. |
Are Boston Scientific Corporation's (NYSE:BSX) Interest Costs Too High?
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Boston Scientific Corporation (NYSE:BSX), a large-cap worth US$58b, comes to mind for investors seeking a strong and reliable stock investment. Risk-averse investors who are attracted to diversified streams of revenue and strong capital returns tend to seek out these large companies. However, the key to extending previous success is in the health of the company’s financials. Today we will look at Boston Scientific’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look furtherinto BSX here.
See our latest analysis for Boston Scientific
BSX's debt levels surged from US$5.8b to US$9.5b over the last 12 months , which accounts for long term debt. With this rise in debt, BSX currently has US$139m remaining in cash and short-term investments to keep the business going. Moreover, BSX has generated cash from operations of US$467m in the last twelve months, leading to an operating cash to total debt ratio of 4.9%, signalling that BSX’s operating cash is less than its debt.
With current liabilities at US$4.5b, it appears that the company has been able to meet these obligations given the level of current assets of US$6.2b, with a current ratio of 1.39x. The current ratio is calculated by dividing current assets by current liabilities. Usually, for Medical Equipment companies, this is a suitable ratio since there's a sufficient cash cushion without leaving too much capital idle or in low-earning investments.
With debt reaching 100% of equity, BSX may be thought of as relatively highly levered. This is common amongst large-cap companies because debt can often be a less expensive alternative to equity due to tax deductibility of interest payments. Accordingly, large companies often have an advantage over small-caps through lower cost of capital due to cheaper financing. We can check to see whether BSX is able to meet its debt obligations by looking at the net interest coverage ratio. As a rule of thumb, a company should have earnings before interest and tax (EBIT) of at least three times the size of net interest. For BSX, the ratio of 6.2x suggests that interest is appropriately covered. It is considered a responsible and reassuring practice to maintain high interest coverage, which makes BSX and other large-cap investments thought to be safe.
BSX’s cash flow coverage indicates it could improve its operating efficiency in order to meet demand for debt repayments should unforeseen events arise. However, the company exhibits proper management of current assets and upcoming liabilities. This is only a rough assessment of financial health, and I'm sure BSX has company-specific issues impacting its capital structure decisions. I suggest you continue to research Boston Scientific to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for BSX’s future growth? Take a look at ourfree research report of analyst consensusfor BSX’s outlook.
2. Valuation: What is BSX 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 BSX 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. |
Remote Work Is Becoming More Mainstream, Data Shows
Remote work arrangements are no longer limited to start-ups and trendy businesses looking to offer employees more flexibility. Not only do many large, well-known companies have remote work policies today, but according toUpwork's Future Workforce Report, the number of remote employees is only going to rise in time.
The report found that as younger generations move into management roles, remote work arrangements will steadily become more of a norm. In fact, 69% of millennial and Gen Z managers today allow team members to work remotely, compared to just 59% of Gen X managers and 58% of baby boomer managers.
IMAGE SOURCE: GETTY IMAGES.
Not only that, but younger managers are more likely to enlist the help offreelancersthan older managers are. And freelancers, by nature, aren't bound to an office.
All told, 73% of employers will have some remote employees by the year 2028, according to the aforementioned report. And that's good news for workers and businesses alike.
Workers who spend the bulk of their week doing their jobs offsite are more engaged than workers who must report to an office, as per Gallup research. And 90% of employees say that the more flexibility they're given on the job -- including the option to work remotely -- the better it'll be for morale, according to the2019 Staples Workplace Survey. Furthermore, employees who work remotely get to avoid the manydistractionsthat come with office life, thereby making them more productive. And clearly, that's good for employers.
If your company has long been opposed to remote work arrangements, it pays to reevaluate that position and hop on the bandwagon sooner rather than later. Doing so could not only help you retain talent but also open up a much wider pool of prospective hires, thereby helping your business excel.
Furthermore, remote work arrangements can lead to big savings on the employer end. If, for example, you're willing to hire freelancers, you'll pay only for output -- and that's a far better use of your financial resources than paying for full-timers who waste time during the workweek (which, let's face it, many of them do). Having at least a partially remote staff could also save you money on office space, equipment, and supplies.
Remember, you don't need to go from the extreme of banning remote work to adopting it across the board. Start by hiring remote workers for positions you've historically struggled to fill or ones that are appropriate for freelancers. Roles that aren't managerial in nature can often be pulled off successfully in a remote setting (though keep in mind that strong managers can do a fine job of overseeing staff remotely as well).
Additionally, consider letting your most trusted employees work remotely on a partial basis if that's what they're asking for. Doing so could help you avoid losing talent when those workers inevitably grow frustrated and start seeking out opportunities with moreflexibility. The workforce on the whole is trending toward remote arrangements, and if you don't get on board, you really risk losing out.
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Good Life Networks Announces Updated Acquisition Deal Terms and Amendment of Private Placement Offering Terms
Vancouver, British Columbia--(Newsfile Corp. - June 20, 2019) - Good Life Networks Inc. (TSXV: GOOD) ("GLN" or the "Company"), is pleased to announce it has amended the closing payment terms associated with the acquisition (the"Acquisition") of mPlore, LLC("mPlore") (see news release dated April 10, 2019). Due to these more favorable acquisition terms, GLN is also pleased to announce that, subject to regulatory approval, it proposes to amend the terms of its previously announced private placement Offering (the"Offering") (see news release dated June 3, 2019).
Upon closing of the Acquisition, the payment due to mPlore will be reduced by US$2,000,000. Additionally, the parties intend to add a performance earn-out term, whereby GLN will pay mPlore up to US$2,000,000 after 24 months from the date that a definitive agreement is signed, provided that mPlore achieves certain mutually agreeable performance benchmarks (complete terms to be disclosed upon the signing of a definitive agreement). The aggregate price of the Acquisition will remain unchanged.
As a result of these amendments to the Acquisition, GLN intends to reduce the maximum amount of the Offering from $5,000,000 to $2,000,000 to align with the reduced closing cash requirement needed to acquire mPlore. The Company intends to use the net proceeds of the Offering to complete the Acquisition and subsequently for the expansion and operation of mPlore.
Proposed Amended Terms of Acquisition
The amendments to the binding letter of intent announced on April 10th, 2019 include:
1. upon closing of the Acquisition, GLN will pay US$850,000 in cash (previously US$2,800,000) to the unit holders of mPlore; and
2. 24 months after the signing of a definitive agreement representing the amended terms of the Acquisition, GLN will pay to the unit holders of mPlore, a performance earn-out of up to US$2,000,000 (previously $0) in cash, provided that mPlore achieves certain mutually agreeable benchmarks.
Proposed Amended Terms of Offering
The proposed amendments to the Offering announced on June 3, 2019 include:
1. a unit price of $0.20 (previously $0.27);
2. total gross proceeds of up to approximately $2,000,000 (previously $5,000,000); and
in the event that, after the date that is six months following the closing of the Offering, the closing trading price of the common shares of GLN on the TSX Venture Exchange (the "TSXV") is at or above $0.75 per common share for a period of 20 consecutive trading days, the Company may accelerate the expiry date of the warrants ("Warrants") underlying the units by giving notice to the holders thereof and in such case the Warrants will expire on the 30thday after the date on which such notice is given by the Company.
Subscribers will be subject to a statutory hold period that extends four (4) months plus one (1) day from the closing of the Offering.
The closing date of the Offering is scheduled to be on or about June 28, 2019 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSXV and the applicable securities regulatory authorities.
Jesse Dylan, CEO of GLNcommented, "GLN's evolution into the mobile space is an integral part of our growth strategy. Why? It's predicted that the Mobile ad spend will top $93 billion in 2019, over $20 billion more than what will be spent on TV!(1)It's our intention to capture a portion of that advertising spend through the acquisition of mPlore. By reducing the amount of cash required to close the acquisition we will be able to utilize additional resources to support the planned expansion of mPlore to achieve our financial objectives. These new deal terms also reduce the need for acquisition capital"
About mPlore
mPlore is a mobile content delivery platform which delivers a suite of products including, mobile search, content, mobile data and ad delivery to its clients. mPlore currently works with tier-one mobile carriers like T-Mobile and Sprint along with OEM (Original Equipment Manufacturer) device manufacturers worldwide to deliver solutions to market. mPlore's clients include Microsoft, Google, Yahoo, and Ericsson.
www.mplore.com
The GLN Story
GLN's patent pending technology is the engine that sits between advertisers and publishers. A highlight of GLN's tech is that it does not collect PII (Personal Identifiable Information). Built for cross device video advertising: Mobile, In-App, Desktop and CTV (Connected Television) the GLN Programmatic Video Advertising Platform has among the lowest fraud rates of similar vendors in the industry. Advertisers make more money by reaching their target audience more effectively. GLN makes money by retaining a percentage of the advertiser's fee.
GLN is headquartered in Vancouver, Canada with offices in Newport Beach and Santa Monica California, New York and UK and trades on the TSXV under the stock symbol "GOOD" and The Frankfurt Stock Exchange under the stock symbol 4G5. For further information on the Company, visitwww.glninc.ca
investors@glninc.ca
CEO Jesse Dylan604 265 7511
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
1):https://content-na1.emarketer.com/mobile-trends-2019
Forward-looking statements
Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. When used in this news release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. "Forward-looking information" in this news release includes information about the proposed amendments to the Acquisition, the proposed amendments to the Offering, the anticipated closing date of the Offering, the Company's plan to use additional resources to support the planned expansion of mPlore to achieve its financial objectives, the Company's use of proceeds of the Offering and other forward-looking information.
By their nature, forward-looking information involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, but are not limited to, risks related to: (a) the failure of the Company to obtain TSXV approval of the Offering or the proposed amendment of the Offering terms; (b) the Offering failing to close on the terms and at the anticipated time, or at all; (c) the failure of the parties to finalize and execute a definitive agreement representing the amendment to the Acquisition; (d) the Company's ability to complete the Acquisition (e) the Company's ability to effectively expand and operate mPlore; and (f) general economic and industry risks.
The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made a number of assumptions, including but not limited to: (a) the Company will be able to successfully close the Offering; (b) the Company will obtain the requisite TSXV approval for the Offering on the amended terms; (c) the Company and mPlore will successfully executed an amended agreement amending the terms of the Acquisition; (d) the Company will be able to successfully expand and operate mPlore; and (e) that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
GLN does not assume any obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements, unless and until required by applicable securities laws. Additional information identifying risks and uncertainties is contained in GLN's filings with the Canadian securities regulators, which filings are available atwww.sedar.com.
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45753 |
Water Pilot Closes First Paid Contract Under Taronis Ownership
Taronis Quickly Converting Pilot Phase Trials to Paying Customers
PHOENIX, AZ / ACCESSWIRE / June 20, 2019 /Taronis Technologies, Inc., ("Taronis" or "the Company") (TRNX),a leading clean technology company in the renewable resources and environmental conservation industry, today announced its first billable commercial installation of the Water Pilot®System under Taronis management at two locations for Smart Car Wash in Fort Myers and Miami, Florida. All financial terms of the installation were withheld for competitive and strategic purposes, as the Company is actively negotiating potential revenue generating contracts with specific locations across multiple national retailers."
The Water Pilot®System immediately reduces water consumption and provides installed customers with live remote consumption monitoring for long term leak protection and water asset management. Water Pilot is appropriate for every business or property with a water meter, including hotels and hospitality, elder and nursing care facilities, restaurants, retail, apartment complexes and other scaled commercial and residential properties.
"We are very encouraged by the pace at which the entire team at the Water Pilot is moving," commented Scott Mahoney, CEO of Taronis, parent of the Water Pilot, LLC. "Our business development team is executing well on transitioning from pilot-phase testing opportunities to profitable, revenue-generating client relationships. We are confident that this pace will drive further success in the near term."
About Taronis Technologies, Inc.
Taronis Technologies, Inc. (TRNX) owns a patented plasma arc technology that enables two primary end use applications for fuel generation and water decontamination.
The Company's fuel technology enables a wide use of hydrocarbon feedstocks to be readily converted to fossil fuel substitutes. The Company is developing a wide range of end market uses for these fuels, including replacement products for propane, compressed natural gas and liquid natural gas. The Company currently markets a proprietary metal cutting fuel that is highly competitive with acetylene. The Company distributes its proprietary metal cutting fuel through Independent Distributors in the U.S and through its wholly owned distributors doing business as "MagneGas Welding Supply". The Company operates 22 locations across California, Texas, Louisiana, and Florida.
The Company's technology can also be implemented for the decontamination of waste water, including sterilizing water, eradicating all pathogens. The technology is being tested to determine if it can completely eliminate pharmaceutical contaminants such as antibiotics, hormones and other soluble drugs suspended in contaminated water. Lastly, the technology process is capable of reducing or eliminating other contaminants, such as harmful metals, as well as nitrogen, phosphorus, and potassium levels that trigger toxic algae blooms. The technology has prospective commercial applications in the agricultural, pharmaceutical, and municipal waste markets. For more information on Taronis, please visit the Company's website athttp://www.TaronisTech.com.
Taronis also owns a controlling interest in Water Pilot, LLC. The WATER PILOT®System immediately reduces water consumption and provides you with live remote consumption monitoring for long term leak protection and water asset management. An integral, client based alarm and notification system that reports to any mobile device. Water Pilot is appropriate for every business or property with a water meter. For more information, please visit our website atwww.gowaterpilot.com/.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to future events, including our ability to raise capital, or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
For a discussion of these risks and uncertainties, please see our filings with the Securities and Exchange Commission. Our public filings with the SEC are available from commercial document retrieval services and at the website maintained by the SEC athttp://www.sec.gov.
SOURCE:Taronis Technologies, Inc.
View source version on accesswire.com:https://www.accesswire.com/549315/Water-Pilot-Closes-First-Paid-Contract-Under-Taronis-Ownership |
3 Cannabis Stocks With the Highest Dividend Yields
Cannabis and dividends go together like... Actually, cannabis and dividends usually don't go together at all. There's this tiny little problem that most cannabis companies aren't profitable yet that keeps any discussion of dividends totally off the table.
However, there are a handful of cannabis stocks that do pay nice dividends. The three with the highest dividend yields areAltria Group(NYSE: MO),Molson Coors Brewing(NYSE: TAP), andScotts Miracle-Gro(NYSE: SMG). You might not view these three as cannabis stocks, but thanks to key deals each of these companies has made, that's what they are.
Image source: Getty Images.
Altria is best known for its tobacco products such as Marlboro cigarettes and Skoal smokeless tobacco. The tremendous cash flow generated by these and other products enables Altria to pay out a dividend that currently yields 6.52%.
In December 2018, Altria announced that it wasinvesting $1.8 billion in Canadian cannabis producerCronos Group(NASDAQ: CRON). The deal gave Altria a 45% stake in Cronos with warrants to gain a majority interest in the company. Altria also won the right to nominate four of the seven members of Cronos' board of directors.
Sales are falling for Altria's core tobacco business, withrevenue plunging 6% year over year in the first quarter. The big investment in Cronos provides Altria with an opportunity to expand beyond tobacco, something that the company is eager to do.
In the meantime, Altria's mouth-watering dividend appears to be relatively safe. The company uses around two-thirds of its free cash flow to fund the dividend program, leaving plenty of room to keep the dividends flowing.
Molson Coors ranks as one of the top beer makers in the world with its Miller Lite and Coors brands leading the way. The company's dividend yield currently stands at 2.98%.
Last year,Molson Coors teamed up withHEXO(NYSEMKT: HEXO)(TSX: HEXO), then known as The Hydropothecary, to form a joint venture to develop cannabis-infused beverages for the Canadian market. This market should open for business in October 2019. HEXO CEO Sebastien St-Louis alsorecently hinted that the two companies will expand their relationship beyond Canadain the near future.
Molson Coors CEO Mark Hunterstated in his company's Q1 conference callthat he expects cannabis will be a part of the company's overall revenue performance beginning in 2020. It's too early to know for sure how big of a contribution cannabis-infused beverages could make to Molson Coors' top line, though.
Regardless of how significant the cannabis opportunity turns out to be for Molson Coors, the company's dividend should be stable. Molson Coors' dividendpayout ratiois less than 36%, indicating plenty of financial flexibility when it comes to paying dividends down the road.
When you think of Scotts Miracle-Gro, lawn and garden products probably come to mind. The company is a leader in that market, with a wide range of products sold under its Scotts and Miracle-Gro brands, plus pest- and weed-control products sold under the Ortho, Roundup, and Tomcat brands. Scotts' dividend yields 2.46%.
While consumer lawn and garden products still generate more than 80% of Scotts' total revenue, its Hawthorne Gardening subsidiary is a significant part of the business. Hawthorne's string of acquisitions over the last few years has made it the top supplier of hydroponics products to the cannabis industry.
The expansion of the U.S. cannabis market should be a major growth driver for Scotts in the future, especially as larger states legalize recreational pot. However, the launches of new products, particularly organic products, havefueled solid growth for Scotts' core consumer lawn and garden business.
Scotts' dividend appears to be in great shape. The company's payout ratio is a little over 39%
If you're solely focused on dividend yield, Altria will appeal to you the most. It's hard to beat a yield of more than 6.5%.
However, if you're looking for the cannabis stock with the strongest growth prospects and a solid dividend, my bet would be on Scotts Miracle-Gro. Wall Street analysts estimate that the company will deliver average annual earnings growth of nearly 11% over the next five years. With a booming U.S. cannabis market and innovative new lawn and garden products, I think that Scotts will deliver great total returns over the long run.
More From The Motley Fool
• Beginner's Guide to Investing in Marijuana Stocks
• Marijuana Stocks Are Overhyped: 10 Better Buys for You Now
• Your 2019 Guide to Investing in Marijuana Stocks
Keith Speightshas no position in any of the stocks mentioned. The Motley Fool owns shares of Molson Coors Brewing. The Motley Fool recommends HEXO. The Motley Fool has adisclosure policy. |
Stadia Is Going the Platform Route
WhenAlphabet(NASDAQ: GOOG)(NASDAQ: GOOGL)first announcedthe cloud gaming project Stadia, it shook the video game world -- but left more questions asked than answered. We knew that Stadia would be a cloud gaming technology, butwe didn't yet knowhow much the hardware would cost or how much Google would charge for games or subscriptions. It was easy to assume that, likeMicrosoft(NASDAQ: MSFT)andSony(NYSE: SNE)before it, Google would put an exclusive streaming platform on its device and charge users by the month. It would compete with other such services to be the so-calledNetflix(NASDAQ: NFLX)of video games. And that would be it -- right?
Not quite. After Google's presentation at E3, the most important video game trade show of the year, Stadia is starting to look a lot less like Netflix and a lot more likeAmazon's(NASDAQ: AMZN)Channels orApple's(NASDAQ: AAPL)iOS platform. Here's why.
Image source: Getty Images
The headlines of Google's E3 presentation bear out some of our assumptions. The device is a cheap "console killer," a controller-only setup that costs $69 per unit. (Google is probably selling its Stadia controllers at a loss.) Users can use the controller to cast their games to Chromecast (sold separately, of course).
Google will also have its own video game streaming service, as expected. It will launch with more than 30 games and will cost $10 per month. The price compares favorably with those of existing subscription services from Sony (PlayStation Now, $19.99 per month) and Microsoft (Xbox Game Pass, $9.99 per month for the console-only subscription).
But here's where things get interesting. In addition to its own streaming service, Google is planning to offer third-party subscriptions through Stadia. Google was relatively mum on the details of these other services, but one was announced at E3 shortly after Google's presentation: Ubisoft, a French video game publisher, will offer a $14.99-per-month subscription service that will be available on PCs and Stadia.
This makes Stadia look a little less like an all-in-one subscription and hardware solution from Google and a little more like, say, aRoku(NASDAQ: ROKU)device, which plays host to lots of different apps. Perhaps the best comparison is to video streaming platform Amazon Channels: Amazon has long allowed its streaming video customers to add premium subscriptions to services like HBO and Showtime through their Amazon accounts and to play content from all of their subscriptions on Fire TV devices or within the Amazon Video app on other devices.
Another comparable idea isApple's TV app, which aggregates premium subscriptions and has reserved a starring role for Apple's own streaming video-on-demand subscription service. Swap the Apple TV or iPhone for a Stadia controller, Apple's video service for Google's video game one, and third-party video subscriptions for third-party gaming subscriptions, and you have Stadia: another platform that is positioned to exact tolls from outside services.
Stadia's approach stands in contrast, at least right now, to what the console giants are doing. Microsoft's Windows operating system can run various subscription gaming services, but its Xbox One console offers just one: Microsoft's own Xbox Game Pass. Similarly, Sony's PlayStation 4 is monogamous on streaming with Sony's subscription service, PlayStation Now.
The role of"hubs"that collect smaller streaming services andplatforms that tax appsthat run on them (and the overlap between these two things) is something that I've written about before in the context of video streaming. It's starting to look like those subjects will be relevant to videogamestreaming, too. Google's Stadia is three things: a subscription service, a device, and a platform. The last of those may prove the most important.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors.Stephen Lovelyowns shares of Amazon, Apple, and Netflix. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Microsoft, Netflix, and Roku. 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. |
Crystal Lake Mining Becomes Largest Landholder Among Juniors in Broader Eskay Camp
Vancouver, British Columbia--(Newsfile Corp. - June 20, 2019) -Crystal Lake Mining Corporation(TSXV: CLM) (OTC PINK: SIOCF) (FSE: SOG-FF)("Crystal Lake" or the "Company") is pleased to announce that it has expanded the size of its Newmont Lake Project by approximately 25% to 551 sq. km (55,100 hectares), making Crystal Lake the largest landholder among junior companies in Northwest British Columbia's broader Eskay Camp as the 2019 exploration season ramps up.
Highlights:
• The newly-defined Chachi Corridor (see June 12, 2019 news release) has been expanded by the staking of "Chachi East", 17.5 sq. km of prospective ground straddling the northeast boundary of the Newmont Lake Project;
• On the western side of the project, Crystal Lake has also staked the 74 sq. km "Ridge West" block which represents the possible southwesterly extension of the Burgundy Ridge discovery (see March 7, 2019, news release). A large new gossan zone is exposed on the Ridge West block within Stikine volcanics.
• All new ground (115 sq. km) was acquired by staking, including a series of non-adjoining claims separate from Chachi East and Ridge West totaling 23.3 sq. km.
Maurizio "Mars" Napoli, Crystal Lake's VP Exploration, commented: "We have managed to gain control of the potential extensions of two large and prospective corridors on the Newmont Lake Property. Vectoring of soil anomalies into Chachi East and the numerous mineral occurrences on Ridge West add to an already impressive land package at the Newmont Lake Project."
Updated Claims Map Showing Chachi East, Ridge West
Crystal Lake Mining Expands its Newmont Lake Property with the Chachi East and Ridge West Staked Claims
To view an enhanced version of this graphic, please visit:https://orders.newsfilecorp.com/files/6406/45763_caa5ca73f4d56a96_001full.jpg
Qualified Person
The technical information in this news release has been reviewed and approved by Mr. Maurizio Napoli, P.Geo., a qualified person responsible for the scientific and technical information contained herein under National Instrument 43-101 standards.
About Crystal Lake Mining
Crystal Lake Mining is a Canadian-based junior exploration company focused on building shareholder value through high-grade discovery opportunities in British Columbia and Ontario. The Company has an option to earn a 100% interest in the Newmont Lake Project, now the largest land package among juniors in the broader Eskay region in the heart of Northwest B.C.'s Golden Triangle.
On Behalf of the Board of Directors,CRYSTAL LAKE MINING CORP.
"Richard Savage"President & CEO
Email:info@crystallakemining.com
www.crystallakemining.com
For further information please contact:
MarketSmart CommunicationsTel: +1 (604) 261-4466Toll Free: +1 (877) 261-4466Email:info@marketsmart.ca
Momentum Public RelationsTel: +1 (514) 815-7473Email:mark@momentumpr.com
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45763 |
America’s Middle Class in 2019, as Defined by Americans
There's no single definition of "middle class." Some define it as simply the middle half of Americans by income level, while others look at it as more of a lifestyle.
To shed some light on what it means to be middle class in the United States, The Ascent -- a personal finance brand by The Motley Fool -- recentlysurveyed over 1,000 Americansto find out what it truly means to be middle class in 2019. Here are some of the most interesting findings.
Image source: Getty Images.
Not surprisingly, the majority of Americans put themselves in this category. According to The Ascent's survey, about 85% of millennials and Generation X-ers and 77% of baby boomers consider themselves middle class.
This depends on whom you ask. The Pew Research Center sets a minimum income level by family size:
[{"Household Size": "1", "Minimum Middle Class Income": "$26,093"}, {"Household Size": "2", "Minimum Middle Class Income": "$36,902"}, {"Household Size": "3", "Minimum Middle Class Income": "$45,195"}, {"Household Size": "4", "Minimum Middle Class Income": "$52,187"}, {"Household Size": "5", "Minimum Middle Class Income": "$58,347"}]
Data source: Pew Research Center.
On the other hand, Americans seem to think that this isn't quite enough. The perceived minimum middle-class income for a one-person household ranges from $43,610 to $47,814, depending on the age group. Gen X-ers think that you need the most to be considered middle class, while baby boomers' average response was the lowest, although still significantly higher than the actual definition.
One of the defining characteristics of this demographic is a general sense of contentment with their finances. For example, according to The Ascent's survey:
• 53% of middle class Americans are happy with their salary.
• 73% are happy with their job.
• 73% are happy with their home.
• 83% are happy with their vehicle.
Despite the popular perception that most Americans work far more than 40 hours per week, that doesn't appear to be the reality. According to the survey, people who consider themselves to be middle class work an average of 39.2 hours per week. This ranges from a low of 34.9 hours for middle class Americans with education jobs to a high of 42.7 hours for those who work in technology.
So it's fair to say that the 40-hour workweek remains the standard, at least for the middle class.
The average middle class American spends $2,833 per month, not including taxes and savings. This breaks down as follows:
[{"Expenditure": "Housing", "Monthly Average": "$934"}, {"Expenditure": "Groceries", "Monthly Average": "$369"}, {"Expenditure": "Utilities", "Monthly Average": "$243"}, {"Expenditure": "Transportation", "Monthly Average": "$225"}, {"Expenditure": "Healthcare", "Monthly Average": "$203"}, {"Expenditure": "Restaurants", "Monthly Average": "$161"}, {"Expenditure": "Entertainment", "Monthly Average": "$148"}, {"Expenditure": "Child Care", "Monthly Average": "$172"}, {"Expenditure": "Education", "Monthly Average": "$119"}, {"Expenditure": "Travel", "Monthly Average": "$131"}, {"Expenditure": "Personal Care", "Monthly Average": "$94"}, {"Expenditure": "Fitness", "Monthly Average": "$34"}, {"Expenditure": "Total", "Monthly Average": "$2,833"}]
Data source: The Ascent.
But there's a big discrepancy among age groups. The average middle class millennials, for example, spend $2,898, but the average middle class Gen X-ers, who are generally further along in their careers and earn a bit more, spend $3,258. And the average baby boomers' spending habits are by far the lowest at just $2,176 -- many are retired, most don't pay for child care, and many have paid off their homes.
Here's one of the most important takeaways: Middle class Americans often don't feel financially secure. Over 40% of people who put themselves in this demographic report living paycheck to paycheck. And, nearly 50% of them feel financially insecure.
As a final point, survey respondents were asked what traits make a person middle class, and there were a few common answers. By far, the two most commonly perceiveddefining characteristicsare the ability to pay bills on time and having job security.
In addition, more than half of respondents also said that middle class individuals should be able to save money (interesting, since more than 40% report living paycheck to paycheck) and that another defining characteristic is having time and money for a vacation.
Whether you agree with these traits or not, the takeaway is that being middle class might not be about how much you make or spend -- maybe it's a certain standard of living.
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ETF Winners & Losers Post Fed Meet
As widely expected, the Fed stayed put in its latest meeting but has hinted at rate cuts this year. The central bank will now “closely monitor the implications of incoming information for the economic outlook.” Though the Fed acknowledged the economic wellbeing, it said that “uncertainties about this outlook have increased.”
More Fed members are now foreseeing at least one rate cut by next year. Nine members see the possibility of up to two rate cuts in the same frame of time. With inflation expectations tapering off, we really may see some policy easing this year.
Inside Economic Forecast
The Fed upgraded its forecast for 2020 real GDP growth from 1.9% in March to 2.0% but maintained the 2019 and 2021 growth forecast at 2.1% and 1.8%, respectively. The Fed projected the longer-run growth measure of 1.9%. Unemployment was guided down to 3.6% from 3.7% for 2019, 3.7% from 3.8% for 2020 and 3.8% from 3.9% for 2021.
PCE inflation expectations were cut from 1.8% to 1.5% for 2019 and from 2.0% to 1.9% for 2020 but were kept intact at 2.0% for 2021. Federal funds rate projections for 2019 were kept intact at 2.4% but lowered to 2.1% from 2.6% for 2020 and to 2.4% from 2.6% for 2021. Over the longer term, the rate was projected at 2.9%, the same was cut to 2.5% from 2.8% projected in March.
Market Reaction
The immediate impact should be felt in the bond market and the yield on 10-year U.S. Treasury dropped to 2.03% from 2.06% recorded the day earlier. As the policy easing move is largely expected, yield on short-term, two-year bond yields fell by a sharper 12 bps to 1.74%.
iShares 20+ Year Treasury Bond ETFTLT was up 0.14% whileSchwab Short-Term U.S. Treasury ETFSCHO added about 0.22% on Jun 19. Needless to say, stocks rallied on hopes of stimulus.
ETF Winners & Losers From Fed Activity & Guidance
Toppers
High-Yield Corp Bonds– iShares Short-Term Corporate Bond ETF IGSB – Up 0.3%
The Fed’s patient and likely dovish stance should boost high-yield, short-term corporate bond funds. The fund charges 6 bps in fees while it yields 3.29% annually (read: Weekly ETF Roundup: Bond Rocks, US Equity Lags).
Gold Miner– VanEck Vectors Gold Miners ETF GDX – Up 1.4%
If rates dive, the greenback loses strength and gold starts glittering. Gold bullion ETFSPDR Gold SharesGLD was up 0.6% on Jun 19. And gold mining ETF GDX surged as it acts as a leveraged play of the underlying asset (read: ETFs & Tax Efficiency: What Investors Need to Know).
Emerging Markets– iShares MSCI Emerging Markets ETF EEM – Up 0.8%
This is another big bet amid a dovish Fed. The emerging market bloc tends to outperform amid a subdued U.S. dollar.
Utilities– Utilities Select Sector SPDR Fund XLU – Up 0.8%
Who can forget utilities? This sector performs great in a low-rate environment and serves better if investing sentiments are edgy. It yields 2.26% annually.
Real-Estate– iShares Residential Real Estate ETF REZ – Up 0.6%
This is yet another fund that investors can bet on. This high-yielding sector also performs well in a low-rate environment. It charges 48 bps in fees and yields 3.67% annually (read: Bet on BlackRock's Megatrends With These ETFs).
Small-Cap– iShares Russell 2000 ETF IWM – Up 0.3%
With GDP growth projections almost upbeat and job market steady, domestically focused small-cap stocks are likely to do well. This is especially true given that the Fed is likely to take an accommodative stance and rates will remain low.
Losers
Financials– SPDR S&P Regional Banking ETF KRE – Down 0.7%
Sectors that flourish in a rising-rate environment, skid post Fed meeting. KRE is one of them.
U.S. Dollar–Invesco DB US Dollar Index Bullish Fund UUP – Down 0.5%
No wonder, U.S. dollar would be a loser amid dovish Fed signals.
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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 reportSchwab Short-Term U.S. Treasury ETF (SCHO): ETF Research ReportsiShares MSCI Emerging Markets ETF (EEM): ETF Research ReportsVanEck Vectors Gold Miners ETF (GDX): ETF Research ReportsUtilities Select Sector SPDR Fund (XLU): ETF Research ReportsSPDR S&P Regional Banking ETF (KRE): ETF Research ReportsInvesco DB US Dollar Index Bullish Fund (UUP): ETF Research ReportsiShares Russell 2000 ETF (IWM): ETF Research ReportsiShares 20+ Year Treasury Bond ETF (TLT): ETF Research ReportsSPDR Gold Shares (GLD): ETF Research ReportsiShares Residential Real Estate ETF (REZ): ETF Research ReportsiShares Short-Term Corporate Bond ETF (IGSB): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report |
Inside Carrie Underwood and Husband Mike Fisher's Love Story: 'He Is the Person I Was Meant to Be With'
Sure she sings about heartbreak like no other — including what she’s liable to do to a cheater’s car with a Louisville slugger — but Carrie Underwood ‘s real love life couldn’t be better. The country superstar, 36, tops PEOPLE’s list of 100 Reasons to Love America this week and says falling for Mike Fisher , her Canadian, hockey star husband of seven years, was a dream come true. “I feel like he is the person I was meant to be with,” says Underwood. The pair met after he attended one of her shows in 2008 and upon dating, she quickly knew he was different. RELATED: Inside Carrie Underwood’s Emotional Journey from 3 Heartbreaking Miscarriages to Her Happy Life Now: ‘We Are Beyond Blessed’ Carrie Underwood and Mike Fisher | Kevin Mazur/Getty “I had dated guys and kind of knew, like, ‘No.’ Nothing was ever really wrong, but nothing was really right either. With him, it was like a good partnership. It was an easy relationship to be in.” Then came marriage. Underwood and Fisher tied the knot in 2010, on a summer evening in Georgia amid pink flowers and 5000 sparkling crystals. RELATED: Inside Carrie Underwood’s Dream Wedding Mike Fisher and Carrie Underwood | Mike Fisher/Instagram They welcomed son Isaiah , 4, in 2015 and son Jacob this past January. “I admire Carrie as a mom most,” Fisher tells PEOPLE. “She is so good with our boys and loves us all so well.” Prior to Jacob’s arrival, Underwood was the one in need of extra love and support—and Fisher didn’t miss a beat. After recovering from a painful fall in 2017 that left Underwood with a broken wrist and a facial laceration that required 40-50 stitches, the star revealed she’d also suffered through three miscarriages in less than two years. Carrie Underwood on the cover of PEOPLE | Randee St. Nicholas She says there was no getting through that tough period without Fisher, 39, who retired in 2018 after 19 years on the ice. “He is so levelheaded about everything, and when I was dealing with everything, not just emotionally but hormonally, when you’re going on that roller coaster of pregnant, not pregnant, pregnant, not pregnant, I was probably not very easy to love, to be honest,” she says. “And to have somebody so even-keeled, he was my lifeline, keeping me grounded.” Story continues RELATED: Carrie Underwood Tops PEOPLE’s List of 100 Reasons to Love America—Find Out Her Favorite Cities Mike Fisher with sons Isaiah and Jacob | Carrie Underwood/ Instagram Sure, they have their moments—“We’re always working on our communication, you know, that’s life,” she says — but she is grateful “to have that rock in my crazy life. It means more to me than he probably knows or than I could tell him.” For Fisher’s part, he’s equally smitten. “Carrie’s so easy to love because she’s down to earth and genuine.” She’s also a ton of fun. “We laugh a lot,” he adds, “which I think is important.” For more on Carrie Underwood ‘s emotional journey and 99 other great reasons to love America — which span everything from the Grand Canyon to Shark Week to Michelle Obama ‘s bestselling memoir — pick up this week’s issue of PEOPLE, on newsstands Friday. |
Dana White on 7-year UFC contract extension: ‘I can’t see a day where I’ve had enough’
Dana White - UFC Apex scrum (Subscribe to MMAWeekly.com on YouTube ) It was recently reported that UFC president Dana White had signed a new 10-year contract extension. During a scrum with reporters, including MMAWeekly.com, at the recent launch of the UFC Apex facility, he clarified those reports, saying he had actually signed a seven-year extension. White had originally inked a five-year deal with WME-IMG after the company purchased the UFC for more than $4 billion. But now, White has inked a seven-year extension to continue running the company that he's been at the helm of for the better part of two decades. TRENDING > Dana White Q&A (full video): Would he do another Mayweather vs. McGregor? "I can't imagine being out of the game. I love this so much. I don't know what else I would do. This is what I love to do. At the end of the day, I have been the vision of this thing for the last almost 20 years and I'm not done yet. There's so much more to do." – Dana White |
Can Peabody & Arch Coal JV Counter Drop in Coal Demand?
Peabody Energy CorporationBTU andArch Coal Inc. ARCH have decided to form a joint venture by merging some of their most-productive coal mines in Powder River Basin and Colorado. The decision comes at a time when coal continues to lose its popularity as an energy source in the United States. Despite the new administration’s pro-coal stance, increasing usage of clean natural gas and renewable sources is alarming for the U.S. coal mine operators.The joint venture, which will be owned 66.5% by Peabody Energy and 33.5% by Arch Coal, will require regulatory approval.Rationale Behind JVAmid increasing concerns about emissions and greenhouse gas, we could notice a clear shift in energy choice among utility operators. At present, natural gas and renewable energy are being preferred over coal for energy needs.Availability of cheap shale gas in the United States, technological advancement and incentives on usage of renewable energy continue to push back coal as a source of energy. The latest report from U.S. Energy Information Administration (“EIA”) forecasts 2019 coal consumption in the United States to fall to 602 million short tons (MMst), reflecting a 12.3% decline from the 2018 levels and coal consumption to further drop to 567 MMst in 2020.EIA forecasts that the share of electricity generation from coal in the United States to average 24% in 2019 and 23% in 2020, down from 27% in 2018.Given the persistent drop in domestic consumption, U.S. Coal producers were looking forward to coal exports, which were aiding U.S. Coal miners to gain some lost ground. However, the latest projection from EIA indicates that coal exports from the United States will drop to 101.9 MMst in 2019 or 11.8% from 115.6 MMst in 2018. U.S. coal exports are expected to drop further to 94.8 MMst in 2020.Can This JV Deliver?The U.S. Coal industry is currently going through a very difficult phase, so this joint venture of the top two operators in the U.S. Coal industry, could be the way forward for the troubled coal companies. This JV is expected to unlock a pre-tax synergy of $820 million and average joint venture synergies are projected to be nearly $120 million per year over the initial 10 years. The aim of the JV is to combine best productive assets of both the companies and reduce costs beyond the capacity of a single company to achieve.This joint venture has the potential to deliver desired results as the decline in cost of operation will make it more competitive in comparison to natural gas and renewable sources of energy. High-quality coal production from the mines controlled by Peabody and Arch Coal will also help to increase thermal coal export volumes to Asian countries.Coal reserves across the globe are currently estimated to be 1.1 trillion tons and this fossil fuel can last nearly 150 years at the current rates of production. Since coal reserves will last much more than oil and natural gas reserves, initiatives are being taken across the globe to utilize coal more efficiently, keeping a check on emission levels.The best part of the JV is that these high-quality coal companies will no longer compete with each other for orders but will work jointly and share profits.Zacks RankPeabody Energy and Arch Coal currently have a Zacks Rank #3 (Hold) each. Better-ranked stocks from the same industry worth considering are Natural Resource Partners LP NRP and Warrior Met Coal Inc. HCC both have a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Natural Resource Partners and Warrior Met Coal returned higher than its industry in the past 12 months.
Price Performance
Natural Resource Partners reported average positive earnings surprise of 11.01% in last four quarters. Its Zacks Consensus Estimate for 2019 moved up 19.3% to $5.75 per share in the last 60 days.Warrior Met Coal reported average positive earnings surprise of 5.05% in the last four quarters. Its Zacks Consensus Estimate for 2019 moved up 12.9% to $6.23 per share in last 60 days.Will you retire a millionaire?One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”Click to get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportPeabody Energy Corporation (BTU) : Free Stock Analysis ReportNatural Resource Partners LP (NRP) : Free Stock Analysis ReportArch Coal Inc. (ARCH) : Free Stock Analysis ReportWarrior Met Coal Inc. (HCC) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
U.S. Crude Ends Lower Even as EIA Reveals Drop in Supplies
Oil finished lower on Wednesday even as a U.S. government report revealed a weekly decrease in domestic crude supplies that was much larger than anticipated. While EIA reported the first inventory decline in three weeks, crude prices edged down 14 cents (or 0.3%) to $53.76 a barrel, on concerns over signs of worsening oil demand growth as the U.S.-China trade spat continues to threaten a major slowdown in global economy.
Analysis of the EIA Data
Crude Oil:The federal government’s EIA report revealed that crude inventories fell by 3.1 million barrels for the week ending Jun 14, after rising to a nearly 2-year high in the previous week. The analysts had expected crude stocks to go down some 2 million barrels. Lower imports, an uptick in exports and improving refiner demand led to the larger-than-expected stockpile draw with the world's biggest oil consumer.
Crude exports averaged 3.4 million barrels per day last week, up 300,000 barrels per day from the previous week. Meanwhile, net imports edged down 144,000 barrels per day and crude demand rose 200,000 barrels per day.
Despite past week’s decline, oil inventories have generally trended higher since mid-March. In fact, stockpiles have expanded in nine of the last 13 weeks and are up nearly 43 million barrels (or 10%) during the period.
The latest report also shows that stocks at the Cushing terminal in Oklahoma rose to their highest since December 2017. Inventories at the key delivery hub for U.S. crude futures traded on the New York Mercantile Exchange was up 642,000 barrels to 53.6 million barrels.
At 482.4 million barrels, current crude supplies are 13.1% above the year-ago figure and 7% over the five-year average. The crude supply cover was down from 28.8 days in the previous week to 28.4 days. In the year-ago period, the supply cover was 24.5 days.
Gasoline:Gasoline supplies fell 1.7 million barrels for its first weekly decline in five weeks. The drop – contrary to the polled number of 1 million barrels addition – came on account of record demand for the fuel, which reached 9.9 million barrels per day. At 233.2 million barrels, the stock of the most widely used petroleum product is now 2.8% below the year-earlier level though it remains 1% above the five-year average range.
Distillate:Distillate fuel supplies (including diesel and heating oil) fell 551,000 barrels last week, while analysts were looking for an inventory build of around 1 million barrels. Current supplies – at 127.8 million barrels – are 9% higher than the year-ago level though stocks remain 5% below than the five-year average.
Refinery Rates:Refinery utilization was up by 0.7% from the prior week to 93.9%.
About the Weekly Petroleum Status Report
The Energy Information Administration (EIA) Petroleum Status Report, containing data of the previous week ending Friday, outlines information regarding the weekly change in petroleum inventories held and produced by the U.S., both locally and abroad.
The report provides an overview of the level of reserves and their movements, thereby helping investors understand the demand/supply dynamics of petroleum products. It is an indicator of current oil prices and volatility that affect the businesses of the companies engaged in the oil and refining industry.
The data from EIA generally acts as a catalyst for crude prices and affect producers, such as ExxonMobil XOM, Chevron CVX and ConocoPhillips COP, and refiners such as Valero Energy VLO, Phillips 66 PSX and Marathon Petroleum MPC.
Want to Own an Energy Stock Now?
In case you are looking for a near-term energy play, Hess Corporation HES might be a good selection. The Bakken-focused oil producer has a Zacks Rank #2 (Buy).
You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The 2019 Zacks Consensus Estimate for this New York-based company is 21 cents, representing some 128.4% earnings per share growth over 2018. Next year’s average forecast is $1.86 pointing to another 787.5% growth.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportPhillips 66 (PSX) : Free Stock Analysis ReportMarathon Petroleum Corporation (MPC) : Free Stock Analysis ReportValero Energy Corporation (VLO) : Free Stock Analysis ReportExxon Mobil Corporation (XOM) : Free Stock Analysis ReportChevron Corporation (CVX) : Free Stock Analysis ReportHess Corporation (HES) : Free Stock Analysis ReportConocoPhillips (COP) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Analysis of LEO burns shows Bitfinex made nearly $300 million from trading fees in 2018
LEO is an exchange token, similar to BNB, launched last month by Bitfinex. Bitfinex has allegedly raised nearly $1 billion in USDT and USD in a private token sale in order to cover $850 million currently frozen in several accounts controlled by the payment processing company Crypto Capital.
One of the most important value capture propositions for LEO is a quasi-claim to Bitfinex’s cash flow via the burning mechanism. Bitfinex burns 27% of the consolidated revenues to purchase LEO tokens at market value until all LEOs are removed from circulation.
In addition to using its monthly revenue, Bitfinex has also stated its intentions to burn tokens using funds it might recover fromCrypto Capitaland the2016 Bitfinex hack.
Join Genesis nowand continue reading,Analysis of LEO burns shows Bitfinex made nearly $300 million from trading fees in 2018! |
What Kind Of Shareholders Own Boston Omaha Corporation (NASDAQ:BOMN)?
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If you want to know who really controls Boston Omaha Corporation (NASDAQ:BOMN), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that have been privatized tend to have low insider ownership.
With a market capitalization of US$545m, Boston Omaha 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 institutions own shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about BOMN.
View our latest analysis for Boston Omaha
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.
As you can see, institutional investors own 31% of Boston Omaha. 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 Boston Omaha, (below). Of course, keep in mind that there are other factors to consider, too.
Our data indicates that hedge funds own 48% of Boston Omaha. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
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.
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.
Shareholders would probably be interested to learn that insiders own shares in Boston Omaha Corporation. In their own names, insiders own US$18m worth of stock in the US$545m company. This shows at least some alignment. You canclick here to see if those insiders have been buying or selling.
The general public, with a 12% stake in the company, will not easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Our data indicates that Private Companies hold 5.9%, 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 always like to check for ahistory of revenue growth. You can too, by accessing this free chart ofhistoric revenue and earnings in thisdetailed graph.
But ultimatelyit is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look atthis free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Mum issues warning to other parents after toddler has an allergic reaction to ketchup leaving her covered in 'burn marks'
A toddler had an allergic reaction to a preservative in a Daddies Ketchup bottle [Photo: SWNS] A mum has issued a warning to other parents after her daughter was left covered in “burn marks” after suffering an allergic reaction to ketchup . After accidentally squirting tomato ketchup on herself, the 18-month-old toddler was left with in a horrific red rash over her body which her mum said “looked like burn marks.” Leanne Bullard's daughter, Alice, suffered an allergic reaction after spilling the sauce from a £1 squeezy bottle of Daddies Tomato Ketchup. The 39-year-old, from Halesworth, Suffolk, didn’t realise Alice had been affected until she was bathing her daughter and spotted bright red marks on her skin. The mum later discovered that her daughter had suffered a reaction to a preservative used in the tomato ketchup brand. Leanne explained that she had given her children the ketchup with their dinner, but Alice had managed to cover herself with the sauce, so she’d given her a bath to clean it off. "I got some baby wipes which are the same brand I always use that she had never had a reaction to and wiped it off her,” the mum explained. "When I did wipe it off her, directly underneath where the tomato ketchup had been were red marks and patches. "It looked like she had been burnt, it looked like scolds.” Alice was left with a red rash over her body [Photo: SWNS] READ MORE: Could children's fiver parties spell the end of birthday presents? Leanne dialled the NHS on 101 who told her to watch over Alice, as the sauce could cause her airways to swell as she’d eaten it. Leanne watched over her for hours until eventually the rash died down and she has since made a full recovery. Though neither Alice or any of Leanne’s other children have ever had an allergic reaction before, after Googling her daughter’s reaction she realised that other children had also had a reaction. After complained directly to Daddie’s parent company Heinz, Leanne was told the plastic bottle of Daddie’s ketchup contains potassium sorbate, a common cause of allergic reactions. The chemical is used as a preservative, but doesn’t appear in the glass version of Daddie’s ketchup, or in their standard tomato ketchup. Story continues Leanne now wants to use her experience to make other parents aware of the additive, as she fears other children could have a more severe allergic reaction. "You would think that being in a plastic bottle you would have thought it was more child-friendly because obviously I wouldn't give a glass bottle to a child,” she says. "Some children could have had a more severe reaction, it could have been a lot worse especially if it had reacted with Alice's throat or her airways. "That's quite scary for a parent." Little Alice has since made a full recovery, pictured here with her mum Leanne [Photo: SWNS] READ MORE: Mum praised for seat belt covers informing car accident responders about a child's medical information A spokesman for Heinz said: "We were very sorry to hear about Leanne’s experience. "From the information shared it may have been a reaction to the tiny amount of potassium sorbate which is widely used in some foods as a preservative and is part of the recipe for Daddies Tomato Ketchup in plastic bottles. "We have confirmed with Leanne that Daddies Tomato Ketchup in glass bottles is made without potassium sorbate because of a different filling process, and it is not used in Heinz Tomato Ketchup. "Of course the details of these recipes are clearly labelled. "We have sent Leanne a voucher as a gesture of goodwill to enable her to replace the bottle.” It isn’t the first time a mum has issued a warning to other parents about potential allergic reactions. Back in April the mother of an 11-year-old girl who died after an allergic reaction to toothpaste shared her story to alert other families of the risk. The family of Denise Saldate, who live in California, US, are in mourning after her sudden death caused by a reaction to a milk protein in prescription toothpaste . |
Working a 10-hour day once a week increases stroke risk by nearly a third, study finds
People who work an average of one 10-hour day a week see their risk of suffering a stroke rise by a third compared with someone who does not regularly work “long hours”, a French study has found. Researchers looking at the impact of working cultures on cardiovascular health found that people who said they worked 10 hours or more for at least 50 days a year were around 29 per cent more likely to have a stroke. Those who worked long hours chronically, over a period of 10 years or more, were even more at risk, with a 45 per cent higher chance of having a stroke. “As a clinician, I will advise my patients to work more efficiently and plan to follow my own advice,” the study’s lead author Dr Alexis Descatha, of the French National Institute of Health and Medical Research said. The results, from lifestyle surveys and interviews with 143,592 participants aged 18 to 69 who have been followed up at regular intervals since 2012, could be even more concerning for Britons, who have the longest working hours of any EU nation . UK workers put in an average of 42 hours a week, compared with France , Italy and Belgium where it is around 39 hours a week, and Denmark which clocks just 37 hours. French employees also have specific protections that enforce their “right to disconnect” outside of work hours where companies are obliged not to pressure employees to respond to emails or other issues outside of work. In the French study, published in the journal Stroke, 29 per cent of participants met the definition of long hours and 10 per cent of the chronic long hours, and there have been 1,224 strokes recorded since the survey began. Surprisingly, the study found the additional stroke risk was most pronounced in younger workers, under the age of 50. “This was unexpected,” Dr Descatha added calling for more research on the phenomenon. View comments |
Layoffs Will Hurt AT&T’s Image More Than They Will AT&T Stock
News thatAT&T(NYSE:T) would cut 1,880 telecom jobs sent T stock higher but it also brought some degree of negative publicity to the company. The layoffs might also call into question the state of AT&T as the company redefines itself. Still, despite these concerns, T stock investors will more than likely keep their focus on the future of AT&T rather than its headcount.
Source: Shutterstock
AT&T stock investors have suffered for years as the company faced tremendous financial pressures. Competition squeezed revenues in wireless services as well as cable and satellite TV. At the same time, the company had to spend tens of billions of dollars to build a 5G network. On top of that, it has to pay down a massive debt load that rose as high as $168.5 billion in the third quarter of last year.
Further, T stock has maintained a 34-year streak of annual dividend increases. Ending the payout hikes would likely devastate AT&T stock. Hence, despite a 6.3% dividend yield, the company must also continue to increase this payout on top of its other financial obligations.
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Amid these challenges, employees likely feel a sense of betrayal. Back in 2017, the company promised 7,000 new jobs if tax reform became law. Donald Trump signed his tax plan into law in 2017. However, theCommunications Workers of America (CWA)says the tax savings likely went into stock buybacks and other things that do not benefit workers. Although AT&T continues to higher, the headcount has shrunk over the last few years.
Unfortunately for the CWA rank-and-file, Wall Street traders continue to focus on expenses, as was evident as the AT&T stock price rose slightly on Tuesday following the news. Given its debt and dividend obligations, traders probably see any cut in expenditures as a positive. Many believe this has long affected the T stock. The forward price-to-earnings multiple now stands at less than 9x. Many blame the company’s expenses for this low multiple.
Despite the layoff news, over the long-term, T stock will trade based on the performance of 5G and how its content performs. Of the two, the outlook for 5G appears brighter. OnceT-Mobile(NASDAQ:TMUS) acquiresSprint(NYSE:S),Verizon(NYSE:VZ), T-Mobile, and AT&T will be the only companies providing the wireless service poised to connect the future. With so few players in the space, intense price wars will likely not occur since all three carriers face huge expenses from building these networks.
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Admittedly, AT&T’s foray into content brings greater risks. The company combined its HBO, Warner Brothers, and Turner content into WarnerMedia. With that, AT&T will compete directly with the likes ofDisney(NYSE:DIS) andNetflix(NASDAQ:NFLX). Atbetween $16 and $17 per month, AT&T WarnerMedia streaming service should compare well from a cost perspective. However, that will probably mean less revenue than the cable and satellite services once brought. Moreover, failure would likely attract investors to Verizon stock as Verizon has staked most of its future on 5G.
Whether AT&T succeeds or fails with WarnerMedia could also determine how often the company faces issues with layoffs. However, it will probably have less-dramatic effects on T stock.
Although the announced layoffs could bring negative sentiment and publicity to AT&T, they will likely have little long-lasting effect on T stock. Perhaps traders saw this move as path to cutting company expenses. However, AT&T remains heavily in debt and faces mounting costs.
Still, as more customers sign up for its 5G service and the newly formed WarnerMedia, AT&T should find itself in a better position to grow revenues and profits. Over the long-term, these factors will be what probably drives T stock. Perhaps they will also motivate AT&T to add jobs again.
As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You canfollow Will on Twitterat @HealyWriting.
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Zambian court rejects Vedanta bid to join liquidation case
By Chris Mfula
LUSAKA (Reuters) - Vedanta Resources said it would take urgent steps to protect its Zambian assets and pursue international arbitration if necessary after a Lusaka court on Thursday rejected its request to be included in liquidation proceedings.
A Lusaka judge on Thursday ruled Vedanta Resources could not take part in proceedings to wind up its Konkola Copper Mines (KCM) business in Zambia, but granted Vedanta leave to appeal the ruling. The company said it would consider whether to do so.
The case has intensified concerns among international miners about resource nationalism in Africa.
Zambian firm ZCCM-IH holds around 20 percent of KCM, while Vedanta Resources, part-owner of the Mumbai-listed Vedanta group of companies, holds a majority stake.
So far, court proceedings that have appointed a provisional liquidator have not involved Vedanta, which the Zambian government has accused of breaching the terms of its licence.
"It cannot be right for ZCCM, the minority shareholder to pursue this process without the majority shareholder being heard," Vedanta said in a statement.
It also said there were "no just or equitable grounds to wind up KCM" and said it believed the appointment of a provisional liquidator had added to the financial pressure on KCM, as well as putting jobs at risk.
The statement added Vedanta would challenge any attempts to sell its KCM business to a new owner.
Vedanta said it remained open to engaging with the government, but also resolved the right to seek international arbitration.
High Court judge Annes Banda-Bobo said Vedanta had not filed a "notice of intention" and the court was unable to "order a joinder of the intended second respondent to the proceedings," while granting Vedanta leave to appeal.
The judge also set down a hearing for July 4 to consider a request for Vedanta and the directors of KCM to be represented by Lusaka-based law firm Nchito & Nchito.
One of the firm's senior partners Mutembo Nichito is a former director of public prosecutions.
(Reporting by Chris Mfula in Lusaka and Barbara Lewis in London; Editing by Alexander Smith and Alexandra Hudson) |
Polish government to 'repolonise' media in next term, deputy PM says
WARSAW, June 20 (Reuters) - Poland's ruling party will have the task of "repolonising" the country's media if it wins elections scheduled for October or November, a deputy prime minister said.
The Law and Justice party (PiS has long suggested that it would try to bring foreign-owned media outlets under Polish control, leading to opposition accusations the party wants muzzle the press.
"A self-respecting nation and a self-respecting people cannot allow most of the media to be in foreign hands, and this is a task our government faces if we remain in power in the next term," Jaroslaw Gowin said in comments reported by state-run news agency PAP on Wednesday evening.
In Hungary, associates of Prime Minister Viktor Orban, a PiS ally, have gained control over much of the media and his Fidesz party has taken total control of state media, drawing international accusations that they are weakening freedom of speech.
Similarly, on coming to power in 2015, PiS moved swiftly to take control of state broadcaster TVP, whose news coverage is criticised by opposition politicians for being biased towards the government.
Poland has faced criticism from the United States, its key ally in the light of increased Russian assertiveness in central and eastern Europe, over previous moves against privately owned media.
In 2018 Poland back-tracked on a fine imposed on private news channel TVN24 over its coverage of protests in parliament in 2016 after condemnation from the U.S. State Department, amid speculation the Polish state may take over the news channel.
TVN, the parent company of TVN24, is owned by U.S. media group Discovery.
Germany's Axel Springer is also present in Poland, owning the Polish edition of Newsweek and tabloid Fakt, which are both often critical of the government.
"Why should we assume that German owners are worse patriots than us," Gowin said. "When there is a conflict of interests between Poland and Germany, these newspapers represent the German point of view and German interests." (Reporting by Alan Charlish) |
Boris Johnson one step closer to becoming Prime Minister
Boris Johnson's seemingly unstoppable journey to Number 10 passed another milestone today. (AP Photo/Matt Dunham) Boris Johnson moved even closer to Number 10 today after winning the support of a majority of Tory MPs in the latest round of the Conservative leadership contest. Michael Gove overtook rival Jeremy Hunt to move into second place after increasing his tally by 10. Sajid Javid was eliminated from the race after receiving the fewest votes, leaving Mr Gove and Mr Hunt to join Mr Johnson in the final three. The huge support from Mr Johnson makes it impossible to countenance him not making it through to the last round. Therefore the real battle is now over who will join him in the last two, one of whom Conservative Party members will select to be the next PM. Sajid Javid didn't make it through to the final three. (AP Photo/Kirsty Wigglesworth) The final results were - Boris Johnson: 157 Michael Gove: 61 Jeremy Hunt: 59 Sajid Javid: 34 This round of voting saw two spoiled ballots, the first time this has happened during the contest. The final round of voting by Conservative MPs takes place later today, meaning Mr Gove and Mr Hunt face a frantic afternoon of scrambling to hoover up votes from eliminated candidates. Rory Stewart, who was voted out of the race yesterday, refused to say who he was backing. He said this morning: I will not be declaring for anyone today but I will be voting. Mr Johnson denied being involved in dark arts to knock Mr Gove out of the race. There was widespread speculation at Westminster that allies of Mr Johnson were planning to lend support to Sajid Javid, who finished 13 votes behind Mr Gove in the last ballot, in order to force the Environment Secretary out of the race. |
TechnipFMC Receives Subsea Contracts From Anadarko's Arm
TechnipFMC plcFTI recently announced that the company has received several subsea contracts from a unit of Anadarko Petroleum Corporation APC for its Golfinho/Atum development offshore Mozambique. These contracts were awarded for the majority of the Mozambique LNG subsea scope in Offshore Area 1.
TechnipFMC received a major contract through its subsidiary in United Arab Emirates, namely Technip Middle East FZCO. The London-based oil and gas equipment and services provider estimated the value of the contract for engineering, procurement, construction and installation (EPCI) of the subsea hardware system to be more than $1 billion.
The company plans to carry out installation works for the Mozambique Golfinho/Atum development with its consortium partner, Van Oord. Markedly, TechnipFMC formed deepwater cooperation with Allseas for the offshore job. TechnipFMC’s wholly-owned unit, FMC Technologies Inc. received separate contracts for providing subsea hardware for well construction and EPCI works.
The contracts are expected to increase TechnipFMC’s presence in Mozambique. This February, the company opened a new office in Maputo, Mozambique. It plans to cooperate with local universities therein, offering unique training opportunities to young local engineers.
The Mozambique LNG project is expected to be the country’s first onshore LNG development. The project will be operated by Anadarko, with which TechnipFMC has worked for 25 years. The project includes two 12.88 million metric tons per annum LNG trains at the initial stage. The onshore development will support Golfinho/Atum fields’ production. Oceaneering International, Inc. OII, an oilfield services provider, is expected to supply distribution hardware, umbilicals and aftermarket services for the Mozambique LNG project.
Price Performance
The company has gained 22.4% year to date compared with 10.7% collective rise of theindustryit belongs to.
Zacks Rank & Stock to Consider
Currently,TechnipFMChas a Zacks Rank #3 (Hold). A better-ranked player in the energy space is Subsea 7 SA SUBCY, which has a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Subsea 7 beat earnings estimates thrice in the trailing four quarters, with average positive earnings surprise of 108.8%.
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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 reportTechnipFMC plc (FTI) : Free Stock Analysis ReportOceaneering International, Inc. (OII) : Free Stock Analysis ReportSubsea 7 SA (SUBCY) : Free Stock Analysis ReportAnadarko Petroleum Corporation (APC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Is Twin Disc, Incorporated's (NASDAQ:TWIN) P/E Ratio Really That Good?
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This article is written for those who want to get better at using price to earnings ratios (P/E ratios). We'll look at Twin Disc, Incorporated's (NASDAQ:TWIN) P/E ratio and reflect on what it tells us about the company's share price.What is Twin Disc's P/E ratio?Well, based on the last twelve months it is 10.17. That is equivalent to an earnings yield of about 9.8%.
See our latest analysis for Twin Disc
Theformula for price to earningsis:
Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Or for Twin Disc:
P/E of 10.17 = $14.33 ÷ $1.41 (Based on the year to March 2019.)
A higher P/E ratio means that buyers have to paya higher pricefor each $1 the company has earned over the last year. That isn't a good or a bad thing on its own, but a high P/E means that buyers have a higher opinion of the business's prospects, relative to stocks with a lower P/E.
Generally speaking the rate of earnings growth has a profound impact on a company's P/E multiple. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. And in that case, the P/E ratio itself will drop rather quickly. So while a stock may look expensive based on past earnings, it could be cheap based on future earnings.
In the last year, Twin Disc grew EPS like Taylor Swift grew her fan base back in 2010; the 246% gain was both fast and well deserved. The sweetener is that the annual five year growth rate of 63% is also impressive. So I'd be surprised if the P/E ratio wasnotabove average.
One good way to get a quick read on what market participants expect of a company is to look at its P/E ratio. The image below shows that Twin Disc has a lower P/E than the average (20.7) P/E for companies in the machinery industry.
This suggests that market participants think Twin Disc will underperform other companies in its industry. Since the market seems unimpressed with Twin Disc, it's quite possible it could surprise on the upside. If you consider the stock interesting, further research is recommended. For example, I often monitordirector buying and selling.
Don't forget that the P/E ratio considers market capitalization. In other words, it does not consider any debt or cash that the company may have on the balance sheet. In theory, a company can lower its future P/E ratio by using cash or debt to invest in growth.
Spending on growth might be good or bad a few years later, but the point is that the P/E ratio does not account for the option (or lack thereof).
Net debt totals 18% of Twin Disc's market cap. That's enough debt to impact the P/E ratio a little; so keep it in mind if you're comparing it to companies without debt.
Twin Disc has a P/E of 10.2. That's below the average in the US market, which is 17.9. The EPS growth last year was strong, and debt levels are quite reasonable. If it continues to grow, then the current low P/E may prove to be unjustified.
When the market is wrong about a stock, it gives savvy investors an opportunity. If it is underestimating a company, investors can make money by buying and holding the shares until the market corrects itself. So thisfreereport on the analyst consensus forecastscould help you make amaster moveon this stock.
But note:Twin Disc may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with strong recent earnings growth (and a P/E ratio below 20).
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
3 Big Stock Charts for Thursday: CF Industries, Nordstrom and WellCare Health Plans
In the absence of any changes to the Federal Reserve funds rate, and the relatively predictable language surrounding the decision, investors were willing to build on Tuesday’s progress. On Wednesday, theS&P 500gained another 0.30%, albeit in modest volume.
Source:Allan Ajifo via Wikimedia (Modified)
Shopify(NYSE:SHOP) was the day’s most noteworthy winner, up 7.6% on the heels of news that it would beestablishing a fulfillment and distribution networkakin to the one built by indirect rivalAmazon(NASDAQ:AMZN). China’s electric carmarkerNio(NYSE:NIO) logged an even bigger win though, up roughly 10% between the regular hours and after-hours session, continuing a rebound effort that started to take shape three days ago, somewhat coinciding with thelaunch of its ES6 crossover vehicle.
Mattel(NASDAQ:MAT) was among the notable losers. The toy company’s stock fell more than 5% after itofficially ended merger negotiations with privately held MGA Entertainment. MGA’s CEO Isaac Larian subsequently called Mattel insolvent, saying it can’t be salvaged. The market listened.
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• 10 'Buy-and-Hold' Stocks to Own Forever
As Thursday’s action gets going, however, it’s the stock charts ofWellCare Health Plans(NYSE:WCG),Nordstrom(NYSE:JWN) andCF Industries Holdings(NYSE:CF) that emerge as the most interesting prospects. Here’s why, and what to look for.
In late April, CF Industries Holdings wason the verge of a major breakout move. Volume was strong and forward progress was palpable. The ceiling ahead was thick and strong, but could have proven catalytic if CF could punch through.
However, the April effort ended up petering out before getting over the technical hurdle. In fact, CF Industries fell all the way back to an established technical floor around $39. But, the breakout effort that took shape during the first half of this month has finally blasted past the ceiling in question. Although it looks like a little profit-taking may be in store, if CF can hold above the ceiling it makes a renewal of the rally effort all the more likely.
Click to Enlarge
• The resistance level that was finally broken is $45.42, marked with a red dashed line, though the white 200-day moving average line was also an important ceiling that has been put in the rearview mirror.
• Wednesday’s lull was telling, but as long as the $45.42 level, once a ceiling, becomes a floor, the odds of another bullish leg are strong.
• As the weekly chart illustrates, this choppy progress is all part of a much bigger uptrend that extends back to 2016.
A month ago, WellCare Health Plans was featured as abudding breakout candidate. Although a critical ceiling had yet to even be tested, key moving averages were stepping up as support levels. While more volatility was in store, the bullish case was strengthening.
Things have panned out exactly as the charts suggested they would. There’s still a good chance of a near-term pullback, and if the bulls don’t play their cards right, they could squander the opportunity. Nevertheless, the potential here is too good to ignore. The key is when and where the bulls make their next stand in the face of any headwind.
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Click to Enlarge
• The big victory since the last look is the move above $289.50, marked with a red dashed line, which until this month had been a ceiling.
• Also, in the meantime, the purple 50-day moving average line crossed above the white 200-day line … a so-called golden cross that portends more gains.
• It’s not an ideal golden cross, however. The 200-day moving average line is actually pointed downward, partially suggesting there’s some lingering long-term weakness.
• The weekly chart shows this is all part of a move within a rising trading channel, framed by blue and yellow lines. This leaves room for WCG to climb to $320, or higher, if it continues to gain traction.
• Although compelling as-is, it might be wise to wait and see if WellCare can bounce back from any upcoming dip back below $289.50.
One good day does not make or break a trend. But, all trend reversals start with one day. Nordstrom may have had such a day yesterday.
The 3.2% gain was admittedly easy to make, and barely scratched the surface of a multi-month downtrend that shaved nearly 50% of the stock’s price seen in November of last year. There’s also a massive amount of repair work that would need to be done to make this the beginning of a long-awaited turnaround. But, some of the clues are starting to pile up, and it’s clear where the biggest lines in the sand are.
Click to Enlarge
• Most noteworthy of Wednesday’s bar is the volume surge behind the buying. A lot of bulls suddenly started to pile in for reasons well beyond the market’s mostly bullish tide.
• The daily chart also indicates the $33.42 level, marked with a white dashed line, is turning into a technical ceiling. That level will need to be hurdled before any progress is made.
• The budding uptrend may only be an effort to fill in the gap left behind in March, the upper value of which is $36.65, marked in yellow. But, the effort to do that could actually put a more prolonged buying effort into motion.
• Zooming out to the weekly chart, it’s clear that the current oversold condition indicated by the RSI line frequently coincided with major bottoms.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site,jamesbrumley.com, orfollow him on Twitter, at @jbrumley.
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Kamala Harris calls on Trump to watch Netflix miniseries about Central Park Five
WASHINGTON On Wednesday afternoon, in the wake of President Donald Trump's controversial remarks about the Central Park Five, Sen. Kamala Harris called on him to watch the new Netflix miniseries about the wrongly convicted men. In an op-ed for NBC News THINK, Harris, who is running for the Democratic presidential nomination,wrote that "Trump and all Americans should watch Ava DuVernays recent miniseries 'When They See Us,' on the Central Park jogger case." The series is about the case of a group of black and Latino teenagers who had been wrongly convicted of an assault on a white female jogger in Central Park in 1989. Trump spent $85,000 to take out a newspaper ad calling for the teenagers' executions at the time. The teenagers were later exonerated, but Trump has maintained the stance over the past 30 years that the teenagers "admitted their guilt." He did so again on Tuesday, when a reporter asked whether he should apologize. "You have people on both sides of that. They admitted their guilt," he said. "If you look at Linda Fairstein and if you look at some of the prosecutors, they think that the city should never have settled that case. So we'll leave it at that." Fairstein was the prosecutor in the case. Trump's past statements: 30 years of Trump's comments about the Central Park Five President doesn't apologize to Central Park Five: 'You have people on both sides of that' Harris, a California Democrat, went on to argue that "Systemic biases and racism cost these boys their childhood. Sensationalized media coverage including a 1989 full-page ad placed by Trump made it almost impossible for them to be treated fairly." She added that "the trial also exposed the dehumanization of Black children and life-threatening consequences things that still occur today" and then, making an appeal for an overhaul of the juvenile justice system, Harris spelled out her plan to do so. Story continues "We need to change our approach, by sentencing young people more leniently, ending the automatic transfer of children to adult prisons, and eliminating youth solitary confinement. We must treat children like children," she wrote. Specifically, that meant codifying into law two Supreme Court rulings barring mandatory life sentences for juveniles without parole and finding ways to "extend more leniency to young people accused of crimes." More: Like what youre reading? Download the USA TODAY app for more This article originally appeared on USA TODAY: Kamala Harris calls on Trump to watch Netflix miniseries about Central Park Five |
Do Axalta Coating Systems's (NYSE:AXTA) Earnings Warrant Your Attention?
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For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses.
If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested inAxalta Coating Systems(NYSE:AXTA). Now, I'm not saying that the stock is necessarily undervalued today; but I can't shake an appreciation for the profitability of the business itself. Loss-making companies are always racing against time to reach financial sustainability, but time is often a friend of the profitable company, especially if it is growing.
View our latest analysis for Axalta Coating Systems
If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow. That means EPS growth is considered a real positive by most successful long-term investors. It certainly is nice to see that Axalta Coating Systems has managed to grow EPS by 31% per year over three years. As a general rule, we'd say that if a company can keep upthatsort of growth, shareholders will be smiling.
I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. Axalta Coating Systems maintained stable EBIT margins over the last year, all while growing revenue 2.4% to US$4.6b. That's a real positive.
You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image.
Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want tocheck this interactive graph of professional analyst EPS forecasts for Axalta Coating Systems.
We would not expect to see insiders owning a large percentage of a US$6.9b company like Axalta Coating Systems. But we are reassured by the fact they have invested in the company. Indeed, they hold US$26m worth of its stock. That's a lot of money, and no small incentive to work hard. Despite being just 0.4% of the company, the value of that investment is enough to show insiders have plenty riding on the venture.
It means a lot to see insiders invested in the business, but I find myself wondering if remuneration policies are shareholder friendly. Well, based on the CEO pay, I'd say they are indeed. I discovered that the median total compensation for the CEOs of companies like Axalta Coating Systems with market caps between US$4.0b and US$12b is about US$6.9m.
Axalta Coating Systems offered total compensation worth US$4.3m to its CEO in the year to December 2018. That comes in below the average for similar sized companies, and seems pretty reasonable to me. CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders. It can also be a sign of a culture of integrity, in a broader sense.
Given my belief that share price follows earnings per share you can easily imagine how I feel about Axalta Coating Systems's strong EPS growth. If that's not enough, consider also that the CEO pay is quite reasonable, and insiders are well-invested alongside other shareholders. Each to their own, but I think all this makes Axalta Coating Systems look rather interesting indeed. Of course, just because Axalta Coating Systems is growing does not mean it is undervalued. If you're wondering about the valuation, check outthis gauge of its price-to-earnings ratio, as compared to its industry.
Although Axalta Coating Systems certainly looks good to me, I would like it more if insiders were buying up shares. If you like to see insider buying, too, then thisfreelist of growing companies that insiders are buying, could be exactly what you're looking for.
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. |
Papa John's Fortifies Franchise Relations to Revive Sales
Papa John’s International, Inc.PZZA announced a program under which it is increasing intended investments in marketing and brand building. The company will also provide the previously planned financial assistance to its domestic franchisees, whose franchise agreement will end in 2020. Beginning the third quarter of 2019, it will invest an additional $80 million for the long-term support of its brand and franchisees.
This program is supported by the company’s elected Franchise Advisory Council (FAC). Through the program, Papa John's further plans to strengthen partnership with its franchisees and provide them with investment resources as was promised in the agreement. The company will assist domestic franchisees in forms of lower royalties, royalty-based service incentives and targeted relief. It is also arranging funds for its franchises to implement marketing and reimaging initiatives.
The company aims to contribute to the National Marketing Fund to intensify the brand’s position and activate its new ambassador, Shaquille O’Neal. Notably, O’ Neal recently made an investment of roughly $840,000 in nine of Papa John’s restaurants in Atlanta.
The above-mentioned move is evidence of the company’s efforts to revive the long-standing declining sales trend and restore the brand image. Unlike other pizza chains, Papa John’s has been under a negative light for quite a long time, owing to the denouncement of its ex-CEO on grounds of racial slur.
Subsequently, the company’s shares have lost 10.4% in the past year against the industry’s 26.8% rally.
Focus on Franchise Relations
Papa John’s is deeply committed to develop and maintain strong franchise system. It is also looking for increasing franchise relations to eliminate barriers to expansion in existing international markets and identify market opportunities. Over the next several years, the company plans to increase international units, a large portion of which will be franchised.
We believe, re-franchising a large chunk of its system reduces the company’s capital requirements, and facilitates earnings per share growth and ROE expansion. Alongside, free cash flow continues to grow, allowing reinvestment for increasing brand recognition and shareholder return.
Other Brand Revival Efforts
For quite some time now, Papa John’s have been undertaking measures that would help it restore the brand. The company extended its board to appoint Jeffrey C. Smith, CEO of Starboard, and Anthony M. Sanfilippo, former chairman and CEO of Pinnacle Entertainment, as new directors. Additionally, Papa John’s president and CEO, Steve Ritchie, has been appointed to the board.
The company is also partnering and exploring new avenues to drive investment. Early this year, it entered a securities purchase contract with Starboard Value LP and affiliates. Further, the company is said to have sought assistance from Bank of America Corporation BAC on potential buyout interests. Further, rumors had it that Restaurant Brands QSR might team up with the investment capital firm 3G Capital to buy Papa John’s.
Our Take
We believe that with the above-mentioned moves, this pizza chain stands a chance to revive sales. In 2018, the company’s total revenues declined 11.8% year over year. Further, strong franchise relation and expansion will enable Papa John’s to fend off intense competition from the likes of Domino’s DPZ.
Papa John’s currently carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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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 reportBank of America Corporation (BAC) : Free Stock Analysis ReportPapa John's International, Inc. (PZZA) : Free Stock Analysis ReportRestaurant Brands International Inc. (QSR) : Free Stock Analysis ReportDomino's Pizza Inc (DPZ) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
LendingTree Aims to Boost Fee Income, Expenses Increase
LendingTree’s TREE efforts to reduce dependence on mortgage-related source of revenues is a tailwind as demand for mortgage products has declined due to higher interest rates. Its inorganic strategies to grow bode well for the long term.
However, lower mortgage-related revenues might offset the top line to some extent. Also, significant rise in cost base due to investments in product development and advertising, remains a concern.
On account of these downsides, the company failed to impress analysts regarding its earnings growth potential, as reflected in 1.4% downward estimate revision of the Zacks Consensus Estimate for current-year earnings over the past 30 days. The stock currently carries a Zacks Rank #3 (Hold).
Nevertheless, its price performance seems impressive. Shares have rallied 21.2% over the past three months compared with 7.8% growth of the industry.
Focus on bolstering fee income has proven to be a major tailwind for LendingTree as over a period of three years (ended 2018), non-mortgage revenues witnessed a CAGR of 78.3%. The company has increased its product offerings to include services such as credit cards, and has widened loan offerings to personal, home equity, reverse mortgage, auto, small business and student loans.
Also, LendingTree’s strong capital position enables it to undertake acquisitions. The latest buyout being of Value Holding Inc., the parent company of ValuePenguin.com, one of the personal finance online sites dealing in financial analysis of insurance to credit cards. The acquisition is expected to be accretive to LendingTree's adjusted earnings per share in 2019.
However, with the higher interest rates, mortgage business has slowed down, as mortgage rates are becoming expensive. Thus, the company’s mortgage product revenue source has been witnessing annual volatility, which might hamper top-line growth.
Further, LendingTree’s cost base escalated significantly at a CAGR of 46.4% over the period of four years, ending 2018. The increasing trend in expenses was due to persistent product development costs and advertising expenses. We believe continuation of such a trend exposes the company to operational risks and thereafter, will dampen bottom-line growth.
Stocks to Consider
Some better-ranked stocks in the same space are Essent Group Ltd. ESNT, PennyMac Financial Services PFSI and Walker & Dunlop WD. All these stocks carry a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Over the past 60 days, Essent witnessed an upward earnings estimate revision of 1.5% for 2019. Its share price has risen 56.2% over the past six months.
The Zacks Consensus Estimate for PennyMac’s current-year earnings has been revised 6.4% upward over the past 60 days. Its share price has increased 11.2% over the past six months.
Walker & Dunlop has witnessed an upward earnings estimate revision of 1.5% for current-year over the past 60 days. Its share price has improved 40.3% over the past six months.
Will you retire a millionaire?One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”Click to get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportLendingTree, Inc. (TREE) : Free Stock Analysis ReportPennyMac Financial Services, Inc. (PFSI) : Free Stock Analysis ReportWalker & Dunlop, Inc. (WD) : Free Stock Analysis ReportEssent Group Ltd. (ESNT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Kroger same-store sales miss in U.S. grocery struggle
(Reuters) - Kroger Co fell short of Wall Street estimates for quarterly same store sales on Thursday as fierce competition from Walmart Inc and Amazon.com Inc worked against the billions the supermarket chain has spent improving stores and its online offering.
Shares of the Cincinnati-based company fell more than 2% in early trading after sales at established stores rose just 1.5%, excluding fuel, below a consensus estimate of 1.78%, according to Refinitiv IBES data.
Analysts said the soft numbers showed the company was struggling to attract shoppers despite slashing prices to keep up in a crowded U.S. grocery market.
"With the U.S. economy doing really well, particularly with the middle-income consumer, which is Kroger's consumer ... the very tepid same-store sales growth has got people pretty nervous," Scott Mushkin, an analyst with Wolfe Research said.
Under its "Restock Kroger" program, the company has been highlighting private label brand display, rearranging store layouts and expanding services such as home delivery and self checkouts.
It has also invested in expanding its online business and improving its Kroger app. The initiatives powered a 42% jump in digital sales in the first-quarter ended May 25.
Gross margin, however, fell 40 basis points to 22.22%, hurt by its low-margin pharmacy business.
"The challenge is, the benefits of the 'Restock Kroger' program appear to be outweighed by the challenges the company is seeing (in) the competitive environment," Mushkin said.
Walmart last month reported its best first quarter same-store sales growth in nearly a decade.
Kroger maintained its profit and same-store sales forecast for the year even as it topped expectations for overall quarterly sales and profit.
Excluding one-time items, the company earned 72 cents per share. Sales overall fell 1.2% to $37.25 billion, reflecting the decision to close its convenience store business.
Analysts had expected a profit of 71 cents per share and sales of $37.21 billion.
(Reporting by Nivedita Balu in Bengaluru; Editing by Shailesh Kuber and Sriraj Kalluvila) |
Adobe Stock Tops All-Time High on Record-Breaking Quarter
Adobe(NASDAQ: ADBE)has done it again. The company has made a practice of exceeding its own guidance and analysts' expectations, and this quarter was no different. The creative-software giant reported its 17th consecutive quarter of record revenue, and the company's growth shows no signs of slowing.
Shares jumped more than 5%in the immediate wake of Adobe's better-than-expected showing, so let's look at what has investors so enthusiastic.
Image source: Adobe.
For the just-completed fiscal second-quarter, which ended May 31, Adobe reported record quarterly revenue of $2.74 billion, up 25% year over year, easily surpassing management's forecast of $2.7 billion, which matched analysts' consensus estimates for the quarter.
That's not all. Adobe generated adjusted earnings per share of $1.83, which sailed past the company's forecast of $1.77 and analysts' expectations for $1.78.
In a scene that's been replayed over and over, Adobe saw strong increases across its portfolio of products, helping boost its already strong revenue growth. Sales from its digital media segment grew to $1.89 billion, up 22% year over year, while the digital experience segment produced record revenue of $784 million, up 34% compared with the prior-year quarter. Both segments met or exceeded Adobe's guidance from last quarter, which called for growth of 20% and 34%, respectively.
The creative software giant produced strong growth across its business units. Within the digital media segment, both the Creative Cloud and Document Cloud notched increases. Revenue from the creative business grew to $1.59 billion, up 22% year over year, while the Document Cloud achieved a record $296 million, up 22% from the prior-year quarter. The digital experience segment represented the strongest growth, generating a record $784 million, up 34% year over year.
Annualized recurring revenue (ARR) in the digital media segment grew to $7.47 billion, up $406 million during the quarter. Creative ARR increased by $341 million to $6.55 billion, and Document Cloud ARR added $65 million, climbing to $921 million. All told, 91% of the company's revenue during the quarter came from recurring sources.
Onthe conference callto discuss the results, Adobe's President and CEO Shantanu Narayen credited a number of factors with contributing to the company's strong and ongoing growth. "The power of our brand, the continuous innovation in our products and services, the deep investment we're making in our technology platforms, and a robust ecosystem of partners are enabling us to serve millions of customers around the globe," Narayen said.
The company is also targeting new segments of users to drive future growth. One area highlighted on the call was Adobe Spark, the company's online and mobile design application. Narayen said the app helps turn ideas into compelling stories with ease and "is rapidly gaining popularity among creators from the classroom to the boardroom." Spark traffic more than doubled year over year, and Adobe expanded the apps global footprint, offering support in five new languages, including Brazilian-Portuguese, French, German, Italian and Spanish.
Adobe appears to be targeting another record-setting performance next quarter. For its fiscal third quarter, Adobe is guiding for revenue of about $2.8 billion, which would represent 22% year-over-year growth, and adjusted earnings per share of $1.95.
To put that into the context of Wall Street sentiment, analysts' consensus estimates were calling for revenue of $2.83 billion and earnings per share of $2.05. While both are higher than management's forecast, investors seem to understand that Adobe has consistently provided conservative guidance, which it then soundly thrashes.
Adobe continues to make all right moves to grow its business, away from the limelight of most tech stocks. That's OK though, as Adobe likes to let its results do the talking: the stock has gained more than 30% so far this year, nearly double the results of the broader market.
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Danny Venaowns shares of Adobe Systems. The Motley Fool recommends Adobe Systems. The Motley Fool has adisclosure policy. |
Winnebago (WGO) Earnings Beat Estimates in Q3, Revenues Down
Winnebago Industries Inc.WGO reported earnings of $1.14 per share in the third quarter of fiscal 2019 (ended May 25, 2019), beating the Zacks Consensus Estimate of $1.05. In the year-ago period, earnings were $1.02 a share. Net income rose 11.2% year over year to $36.2 million. Earnings were positively impacted by an improved tax rate arising from Tax Cuts and Jobs Act (TCJA) and a change in estimates related to R&D tax credits.Revenues in the reported quarter declined 5.9% to $528.9 million. The figure lagged the Zacks Consensus Estimate of $556 million.Operating income in the quarter under review rose 1.4% to $49 million. Gross profit improved to $86.6 million from $85.5 million a year ago.
Winnebago Industries, Inc. Price, Consensus and EPS Surprise
Winnebago Industries, Inc. price-consensus-eps-surprise-chart | Winnebago Industries, Inc. Quote
Segment ResultsRevenues at the Motorized segment were down 34.6% to $160.2 million from a year ago. Adjusted EBITDA declined 96.7% to $0.4 million.Revenues at the Towable segment improved 10.8% to $346.8 million year over year. The upside was driven by strong organic growth across the Grand Design RV brand. Adjusted EBITDA was $57.2 million, up 26% from the prior-year quarter.Financial PositionWinnebago had cash and cash equivalents of $4.2 million as of May 25, 2019, compared with $39 million as of May 26, 2018.For the first nine months of fiscal 2019, the company’s cash flow from operations was $82.8 million, a rise of 21.8 million from the same period in fiscal 2018.In a year’s time, shares of Winnebago have outperformed the industry it belongs to. Its stock fell 13.7% in comparison with the industry’s decline of 47.2%.Zacks Rank and Stocks to ConsiderWinnebago currently has a Zacks Rank #3 (Hold).A few better-ranked stocks in the auto space are Gentex Corporation GNTX, Fox Factory Holding Corp. FOXF and Cummins Inc. CMI, each currently carrying a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Gentex has an expected long-term growth rate of 6%. Over the past six months, shares of the company have gained 19%.Fox Factory has an expected long-term growth rate of 16.4%. Over the past six months, shares of the company have gained 42.6%.Cummins has an expected long-term growth rate of 8%. Over the past six months, shares of the company have gained 31%.Will you retire a millionaire?One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”Click to get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportFox Factory Holding Corp. (FOXF) : Free Stock Analysis ReportGentex Corporation (GNTX) : Free Stock Analysis ReportWinnebago Industries, Inc. (WGO) : Free Stock Analysis ReportCummins Inc. (CMI) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Raytheon and Northrop Grumman Team Up to Battle Lockheed Martin in Hypersonics
Raytheon(NYSE: RTN)andNorthrop Grumman(NYSE: NOC)are joining forces to develop engines for hypersonic weapons, a potentially formidable competitor to industry leaderLockheed Martin(NYSE: LMT)in an area the Pentagon has deemed a significant priority.
The two companies said they have signed a teaming agreement to develop, produce, and integrate Northrop Grumman's scramjet combustors to power Raytheon-made air-breathing hypersonics, weapons able to travel more than five times the speed of sound.
Image source: Northrop Grumman/Raytheon.
It's a concern for Pentagon planners, who believe Russia and China are either ahead or at least on par with U.S. efforts, and an area where the Department of Defense is committed to spending billions in the years to come to develop new technologies.
The government has awarded more than $2 billion in hypersonics contracts to Lockheed Martin, and in documentation justifying those awards, department officials all but saidLockheed is far ahead of its rivals. With this partnership, Raytheon and Northrop Grumman should be better positioned to compete.
Scramjet engines use high vehicle speed to forcibly compress incoming air before combustion, generating additional propulsion and allowing for sustained high-speed travel. A cruise missile traveling at hypersonic speeds has a better element of surprise than a conventional weapon, and also has greater survivability against defenses, effectiveness, and flexibility.
The design requires a booster that will accelerate the missile to a point where the scramjet can take over, before falling away.
Northrop's scramjet is to be made entirely with 3D-printed parts, which in theory should allow the companies to produce the engine in a more cost-efficient manner while reducing weight and scrap. Weight management is vital to the design, because it allows the companies to add either more fuel or a bigger payload without sacrificing speed.
The technology that underpins Northrop's scramjet has been percolating since the early 1990s but has only recently come under the contractor's control. The development began under General Applied Science Laboratory, which worked with NASA on a hypersonic vehicle before being acquired by Alliant Techsystems in 2003. Alliant in turn merged with Orbital Sciences in 2015. Northrop Grummanbought Orbital ATKlast year in large part to boost its space and rocket exposure and increase its store of intellectual property.
The team's design is set to go head-to-head against a Lockheed Martin prototype under the Pentagon's Defense Advanced Research Project's Hypersonic Air-breathing Weapon Concept, or HAWC, campaign.
Image source: Raytheon.
Raytheon has twice in recent years come up short in competitions with Lockheed Martin in hypersonics, first for DARPA's Tactical Boost Glide program and then for the Air Force's Air-launched Rapid Response Weapon (ARRW), but the two sides seem confident that working together will give them the upper hand.
"Our deep heritage in propulsion, fuzes and warheads will help accelerate readiness of tomorrow's missiles to meet range, survivability, safety and lethality requirements," Northrop Grumman exec Mike Kahn said in a statement. "Together with Raytheon, we intend to make great strides toward improving our nation's high-speed weapon systems, which are critical to enhancing our warfighters' capabilities for greater standoff and quicker time to target."
No matter who wins the HAWC battle, the Pentagon is the real winner from this teaming agreement and defense officials are unlikely to let the partnership fail. The Defense Department isincreasingly concernedthat there isn't adequate competition in key program areas after years of consolidation, and has expressed a willingness to invest to nurture a robust industrial base.
Raytheon, with its missile expertise, and Northrop Grumman after the Orbital deal, both have the expertise needed to compete in hypersonics. Raytheon alsorecently announced a planto combine withUnited Technologies(NYSE: UTX), owner of Pratt & Whitney engines. While there is little overlap in the two companies' portfolios, Raytheon's missile unit will likely benefit from combining research efforts with the engine maker.
The Pentagon is going to spend billions on hypersonics in the years to come. With this partnership, Northrop Grumman and Raytheon have upped the odds they will be a major recipient of that funding.
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Lou Whitemanhas no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy. |
Does Union Bankshares's (NASDAQ:UNB) Share Price Gain of 36% Match Its Business Performance?
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WhileUnion Bankshares, Inc.(NASDAQ:UNB) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 26% in the last quarter. But the silver lining is the stock is up over five years. Unfortunately its return of 36% is below the market return of 58%.
View our latest analysis for Union Bankshares
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
During five years of share price growth, Union Bankshares actually saw its EPS drop 0.6% per year. So it's hard to argue that the earnings per share are the best metric to judge the company, as it may not be optimized for profits at this point. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics.
On the other hand, Union Bankshares's revenue is growing nicely, at a compound rate of 4.6% over the last five years. It's quite possible that management are prioritizing revenue growth over EPS growth at the moment.
The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart.
It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. It might be well worthwhile taking a look at ourfreereport on Union Bankshares's earnings, revenue and cash flow.
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Union Bankshares's TSR for the last 5 years was 61%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments!
While the broader market gained around 5.0% in the last year, Union Bankshares shareholders lost 33% (even including dividends). Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 9.9%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. Before spending more time on Union Banksharesit might be wise to click here to see if insiders have been buying or selling shares.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
A Bitcoin Prosecutor-Turned-Crypto VC on Facebook's Libra: The Broadsheet
Good morning, Broadsheet readers! Hope Hicks testifies without saying much,Googleemployees show up at Alphabet’s shareholder meeting, and a prosecutor-turned-VC MP considers Facebook’s new currency. Have a terrific Thursday.
1. EVERYONE’S TALKING•Considering a new cryptocurrency.When Kathryn Haun, the Justice Department’s one-time go-to prosecutor for Bitcoin related-felonies, joined VC firm Andreessen Horowitz to lead its cryptocurrency fund,Fortune‘s Robert Hackett deemed the move a “watershed moment,” with Haun’s legal chops lending legitimacy to the nascent space.AtFortune‘s inauguralBrainstorm Financesummit in Montauk, N.Y.—featuring established Wall Street giants and up-and-coming fintech, blockchain, and venture finance firms—Haun weighed in on another milestone for the crypto industry: Facebook’s new digital currency called Libra, which was formally announced on Tuesday.If thewildly ambitiousproject progresses as intended, users will be able to shop with the currency and send it on apps in the Facebook ecosystem, and use it with other merchants like Uber, Spotify, and MasterCard. While the Librais being cheered in some corners, it isnot without its skeptics,including regulators and lawmakers who have pounced on the project.On Wednesday, Haun addressed some of those concerns in explaining why Andreessen joined Facebook’s Libra Association, a consortium of 28 members—including the likes of PayPal, Visa, and MasterCard—that will decide how the currency is governed.“One of they key factors in our decision to join was that we would in fact have—and all members would have—an equal vote,” she said.She compared cooperation between NGOs, financial organizations, and Facebook itself on the project to a sort of “constitutional convention.”“You have all these different states coming in trying to form this union,” she said.She said all the Association’s members haven’t met yet, so substantive details about its governance are scarce. But she’s convinced “very important conversations” will take place. “There will be debates because there are very different points of view,” she said.Clearly, there are plenty of outstanding questions about Libra and future of finance more broadly, many of which will be addressed on Day 2 of Brainstorm Finance. It will feature Ellevest’s Sallie Krawcheck, Edward Jones’s Penny Pennington, Coinbase’s Alesia Haas, and Ananya Chadha, a 17-year-old blockchain engineer. Check out the full agenda andlivestream here.FortuneClaire Zillman@clairezillmanclaire.zillman@fortune.com
2. ALSO IN THE HEADLINES•Looking at Libra.AtFortune‘s Brainstorm Finance, Tala CEO Shivani Siroya also weighed in on Libra. Tala offers small loans to unbanked and underbanked populations, and Siroya says Libra could help the company reach more consumers faster.Fortune•Google gets grilled.At Alphabet’s shareholder meeting, 14 items meant to increase the company’s accountability, equality, and transparency were rejected. Google co-founders control a majority of voting power; one shareholder proposal on pay equity even had official backingfrom Time’s Up. Employees confronted management at the meeting over the company’s handling of sexual harassment allegations and work on a censored search engine for China (all covered in Beth Kowitt’srecentFortunestory).Fortune•No questions please.Hope Hicks testified to Congress behind closed doors Tuesday, but declined to answer any questions about her time in the White House. (She did discuss the 2016 Trump campaign.) Democrats plan to go to court in an attempt to compel Hicks to answer.CNN•Purpose = results.Ruder Finn CEO Kathy Bloomgarden writes forFortuneabout the future of CEO activism—and how companies need to develop a purpose. A purpose-driven approach strengthens employee loyalty, crystallizes a holistic view of the business, social, and environmental landscape, and helps to predict challenges, she says.FortuneMOVERS AND SHAKERS:Tesla vice president of HR and head of diversityFelicia Mayoleft the company.Ann Marie Buerkle, acting chairwoman of the Consumer Product Safety Commission, withdrew her nomination to run the agency permanentlyafter a crisis over its handling of the dangers found to infants in the Fisher-Price Rock ‘n Play Sleeper. Former Salesforce EVPLeyla Sekajoins the board of Girls Who Code. Axiom hiresSidra Bermanas CMO and EVP. United Way Worldwide namedSuzanne McCormickthe incoming U.S. president of the organization.
3. IN CASE YOU MISSED IT•A notable Netflix deal.Like Ava DuVernay and Shonda Rhimes, Janet Mock signed a sweeping overall deal at Netflix—hers is described as a “three-year multimillion-dollar pact.” Mock’s agreement makes history for another reason; she’ll be “the first out transgender woman empowered to call the creative shots at a major content company.”Variety•Imagine that.Remember the Japanese medical school that rigged entrance exams to favor men? After it stopped doing that, overall exam scores went up! Women outperformed the male applicants in the first year since the school stopped the practice.Guardian•Loud and proud.In a series for Pride Month, several members of the LGBTQ community reflect on gender and sexuality for theNew York Times. Read through for contributions from actor Asia Kate Dillon, performance artist Kate Bornstein, author and activist Barbara Smith, and Transgender Equity Consulting founder Cecilia Gentili.New York TimesToday’s Broadsheet was produced byEmma Hinchliffe.Share itwith a friend.Looking for previous Broadsheets?Click here.
4. ON MY RADARBlack superstars pitch Adidas shoes. Its black workers say they’re sidelinedNew York TimesThe end of the age of paternity secretsThe AtlanticFive NY1 anchorwomen sue cable channel for age and gender discriminationNew York Times
5. QUOTEWe changed the landscape.Natural hair YouTube star Francheska Medina in a 'Wired' story on how YouTubers revolutionized the natural hair community |
3 Stocks to Buy Ahead of the Next Market Crash
There's no predicting exactly when the stock market will take a dive, but it's a certainty that it will happen eventually. Market crashes are painful, especially for investors who got a bit too euphoric on the way up.
One way to protect yourself -- at least in the long run -- is to buy shares of companies that have the potential to thrive regardless of market conditions. Three of our Motley Fool contributors recommendBrookfield Infrastructure Partners(NYSE: BIP),Berkshire Hathaway(NYSE: BRK.B), andGenomic Health(NASDAQ: GHDX). Here's why.
Matt DiLallo(Brookfield Infrastructure Partners):Most investors fear market crashes because their existing investments lose money. Brookfield Infrastructure Partners, on the other hand, sees these downturns as an opportunity to buy good businesses at even better prices.
Brookfield Infrastructure has a long history of taking advantage of the market's rough spots. During the financial crisis of 2008, for example, the company helped recapitalize a troubled Australian infrastructure company. Meanwhile, a few years ago, Brookfield took advantage of Brazil's economic and political crisis bybuying a leading natural gas pipeline system for an excellent price. Even more recently, the company has benefited from all the volatility in the oil market by snapping upmidstream assetsat great values. These deals have paid significant dividends for Brookfield over the years, helping it grow its cash flow and dividend at a double-digit compound annual rate over the last decade.
Image source: Getty Images.
The company is already preparing itself for the next market downturn. Brookfield is currently capitalizing on the strong market for infrastructure assets by selling some of its mature businesses. It aims to raise between $1.5 billion and $2 billion from these sales, which will give it the cash necessary to pounce on opportunities that should arise during the next market crash.
While Brookfield's stock price will likely fall along with the market during the next collapse, it should bounce back even more sharply in the ensuing recovery. That's because the company will undoubtedly have taken advantage of the situation by acquiring another good business at an excellent price. That's why it's such a great stock to buy before the market's next crash.
Tim Green(Berkshire Hathaway):When asset prices are high and capital is abundant, Warren Buffett's Berkshire Hathaway is left twiddling its thumbs. Berkshire hasbuilt up a massive pile of cash, over $100 billion, due to a dearth of reasonably priced investment opportunities. Buffett's last big deal, the acquisition of Precision Castparts, closed more than three years ago.
Buffett's reluctance to pay unreasonable prices during times like these is part of what makes him one of the most successful investors in history. So does his willingness to commit capital when the sky appears to be falling. Market crashes tend to punish stocks across the board, creating opportunities to buy assets that have been unduly beaten down. That's when Buffett shines, and this time around he'll have a tremendous amount of firepower at his disposal.
Shares of Berkshire will likely take a hit during the next market crash, along with most stocks, and earnings from the company's various businesses could decline if that market collapse is coupled with a recession. But Berkshire will almost certainly come out the other side stronger, buoyed by deals that Berkshire is uniquely positioned to make.
If there's any stock to own leading up to a market crash, it's Berkshire Hathaway.
Maxx Chatsko(Genomic Health):Investors seeking growth, profitability, and a massive market opportunity should give Genomic Health a close look. The genetic testing leader turned in a solid performance in the first quarter of 2019, but its shares fell anyway.Looking beyond Wall Street's knee-jerk reaction, investors will see that the business grew revenue 17%, expects full-year 2019 revenue to climb by double digits, generated operating income equivalent to half of last year's total, and exited March with $206 million in cash.
That strength, and the fact that the genetic testing market is growing hand over fist, provides confidence that Genomic Health can keep the momentum going no matter what the economy is doing. It all has to do with the business model.
Genomic Health generates revenue primarily from sales of its Oncotype IQ tests, which provide genomic information to inform cancer treatment for patients. That's not a market that will shrivel up during the next recession. The platform has been tapped over 1 million times by clinicians and has multiple products covered by health insurance programs covering more than 60 million individuals.
Given that the company is expanding into new markets in Europe and continues to reap the rewards of positive clinical study results, investors should expect the volume of tests sold to continue climbing higher in the coming quarters and years. Considering most peers aren't profitable or growing at double-digit clips, Genomic Health is a clear industry leader worth a closer look.
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Matthew DiLalloowns shares of Berkshire Hathaway (B shares), Brookfield Infrastructure Partners, and Genomic Health.Maxx Chatskohas no position in any of the stocks mentioned.Timothy Greenowns shares of Berkshire Hathaway (B shares). The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and Genomic Health. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has adisclosure policy. |
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