text stringlengths 1 675k ⌀ |
|---|
6 Reasons to Add Hancock Whitney (HWC) to Your Portfolio Now
It seems wise to addHancock Whitney CorporationHWC stock to your portfolio now, given its solid liquidity position, continued rise in loan and deposit balances, and initiatives to enhance revenues. Also, the bank’s inorganic growth strategy will support profitability.The Zacks Consensus Estimate has remained stable for 2019 and moved nearly 1% upward for 2020 over the past 30 days. Thus, the stock currently carries a Zacks Rank #2 (Buy).Hancock’s price performance also looks encouraging. Its shares have rallied 14.8% so far this year, outperforming the industry’s rise of 12.6%.
What Makes Hancock Whitney Stock a Solid BetEarnings strength:Hancock Whitney’s earnings have grown at the rate of 15.2% over the past three to five years. With favorable operating backdrop, the momentum is expected to continue in the near term.Additionally, in April, Hancock Whitney inked a deal to acquire MidSouth Bancorp, Inc. MSL in an all-stock deal. Excluding merger-related costs, it will be accretive to the company’s earnings by 13-15 cents, starting first-quarter 2020.The company’s earnings are expected to grow 1.8% and 7.8% in 2019 and 2020, respectively.Further, the company’s long-term (three-five years) estimated earnings growth rate of 8% ensures reward for shareholders.Revenue growth:Supported by rising loan balances and various strategic initiatives to enhance revenues, Hancock Whitney’s net revenues (on tax equivalent basis) witnessed CAGR of 6.5% over the past five years (2014-2018). Strategic investments in growth markets are expected to be accretive to earnings and will bolster the bank’s presence in such areas.The company’s projected sales growth rate of 5.6% and 3.8% for 2019 and 2020, respectively, indicates continued upward momentum in revenues.Solid capital deployment actions:Hancock Whitney’s capital deployment plans are impressive. Last year, the bank had hiked quarterly dividend by 12.5%. Notably, the company expects to maintain dividend payout ratio between 30% and 40% of net income. Also, it is expected to continue with opportunistic share repurchases. Given a solid liquidity position and a debt/equity ratio lower than the industry, the company will be able to sustain the current level of capital deployment actions in the future.Strong leverage:Hancock Whitney’s debt/equity ratio is 0.11 compared with the industry average of 0.21. The relatively strong financial health of the company should help it perform better than its peers amid a dynamic business environment.Superior Return on Equity (ROE):Hancock Whitney’s trailing 12-month ROE reflects its superiority in terms of utilizing shareholder funds compared with its peers. The company has an ROE of 11.65%, higher than the industry average of 9.93%.Stock looks undervalued:Hancock Whitney’s looks undervalued when compared with the broader industry. Its current price/earnings (F1) and price/book ratios are below the respective industry averages.The stock currently has a Value Score of B. The Value Score condenses all valuation metrics into one actionable score that helps investors steer clear of “value traps” and identify stocks that are truly trading at a discount. Our research shows that stocks with a Style Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best upside potential.Other Stocks Worth ConsideringFirst Horizon National Corporation FHN haswitnessed a marginal upward revision in its Zacks Consensus Estimate for 2019, over the past 60 days. Its shares have gained12.4% over the past six months. Currently, the stock carries a Zacks Rank #2. You can seethe complete list of today’s Zacks #1 Rank stocks here.In the past 60 days, Hilltop Holdings Inc.’s HTH earnings estimates for the current year have been revised 11.5% upward. Over the past six months, shares of this Zacks Rank #2 company have rallied 20.8%.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 reportMidSouth Bancorp (MSL) : Free Stock Analysis ReportFirst Horizon National Corporation (FHN) : Free Stock Analysis ReportHilltop Holdings Inc. (HTH) : Free Stock Analysis ReportHancock Whitney Corporation (HWC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Deutsche Bank (DB) Continues Revamping, To Shed Risky Assets
Continuing with its overhauling moves for reviving profitability,Deutsche BankDB is likely to shed 25% of the company’s risky assets over the next few years, reported Reuters. The plan includes detailed restructuring moves as chief executive officer Christian Sewing committed "tough cutbacks" to shareholders post failed merger talks with Commerzbank.Per the plan, the German bank is anticipated to decrease its risk-weighted assets by 20-25% over the next three-to-five years. Notably, these assets worth around €347 billion ($388.61 billion) as of Mar 31, 2019, will be reduced to about €260 billion.Deutsche Bank has refrained from comments. However, the bank is taking measures to speed up its transformation strategy for improving profitability. "We will update all stakeholders if and when required," the bank noted.Notably, other moves reflect cutbacks in the U.S. equities trading business, including prime brokerage and equity derivatives. The bank would create a ‘bad bank’, a measure used by failed U.K. banks post the 2008 financial crisis.The newly-formed unit will hold tens of billions of Euros of assets worth around €50 billion as Sewing is trimming its investment banking division. This includes Sewing’s plans to shrink or shut down the equity and rates trading businesses outside continental Europe completely, and focus on the core transaction banking and private wealth management business.Further, the number of employees to be affected by these moves is currently uncertain. The bank will likely reduce the headcount to below 90,000, from the existing 91,463.The proposed changes are expected to be announced with the bank’s six-month results in the second half of July.Nonetheless, these overhauling steps are anticipated to postpone some of the bank's targets, including the goal of achieving a return on tangible equity of 4% in 2019.Deutsche Bank faces pressure to trim its investment banking division, following the collapse of merger talks with domestic rival Commerzbank. Though Deutsche Bank’s restructuring efforts, including cost-saving measures, look encouraging, it is difficult to determine how much the bank will gain, considering the prevalent headwinds. Furthermore, dismal revenue performance is another concern.Deutsche Bank currently carries a Zacks Rank #4 (Sell).Shares of Deutsche Bank have lost around 8.9% on the NYSE, in the last six months, as against the industry’s growth of 8.5%.
Stocks to ConsiderMacro Bank Inc. BMA has been witnessing upward estimate revisions for the past 60 days, with the company’s shares surging nearly 78.9% on the NYSE, in six months’ time. It sports a Zacks Rank of 1 (Strong Buy), at present. You can seethe complete list of today’s Zacks #1 Rank stocks here.DBS Group Holdings Ltd DBSDY has been witnessing upward estimate revisions for the past 60 days. Over the past six months, this Zacks #1 Ranked company’s shares have been up more than 10% on the NYSE.Banco Latinoamericano de Comercio Exterior, S.A. BLX has been witnessing upward estimate revisions for the past 60 days. In the past six months, this Zacks Rank #1 company’s shares have been up more than 28% on the NYSE.Will you retire a millionaire?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 reportDBS Group Holdings Ltd (DBSDY) : Free Stock Analysis ReportDeutsche Bank Aktiengesellschaft (DB) : Free Stock Analysis ReportMacro Bank Inc. (BMA) : Free Stock Analysis ReportBanco Latinoamericano de Comercio Exterior, S.A. (BLX) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Crude Oil Price Update – Trend Changed to Up; First Target $57.41
U.S. West Texas Intermediate crude oil futures are trading higher on Thursday for a number of reasons. These reasons include a larger-than-expected draw in U.S. stockpiles and a weaker U.S. Dollar. Both affect the demand side of the equation. On the supply side, OPEC and its allies are expected to extend the program to cut production, trim excess inventory and stabilize prices. Additionally, escalating tensions in the Middle East after Iran shot down a U.S. drone are raising concerns over a possible supply disruption.
At 12:05 GMT,August WTI crude oilfutures are trading $55.84, up $1.87 or +3.46%.
The main trend is up according to the daily swing chart. The main trend turned up earlier in the session when buyers took out the swing top at $54.99. The uptrend is being supported by a pair of main bottoms at $50.98 and $50.79.
The main range is $64.03 to $50.79. Its retracement zone at $57.41 to $58.97 is the primary upside target. Short-sellers and profit-takers could show up on a test of this area.
Based on the early upside action and the strong momentum, the direction of the August WTI crude oil market the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at $56.29.
Overtaking and sustaining a rally over $56.29 will indicate the buying is getting stronger. If this creates enough upside momentum then look for the rally to possibly extend into the 50% level at $57.41. This is followed by a downtrending Gann angle at $58.53 and a Fibonacci level at $58.97.
The inability to overcome $56.29 will not be bearish per se, but it will indicate the buying is getting weaker, or the selling is getting stronger. This could trigger a break back into the uptrending Gann angle at $53.54.
Since the main trend is up, buyers could come in on a test of $53.54, but if it fails then look for the selling to possibly extend into $52.17.
The breakout over $54.99 confirms the minor double-bottom. Simple analysis indicates that $59.19 is another potential upside target.
Thisarticlewas originally posted on FX Empire
• AUD/USD Weekly Price Forecast – Australian dollar shows signs of support
• GBP/USD Weekly Price Forecast – British pound bounces
• USD/JPY Weekly Price Forecast – US dollar breaks support
• Gold Price Prediction – Gold Prices Trend Higher as Geopolitical Issues Brew
• Silver Weekly Price Forecast – Silver markets retire during week
• Natural Gas Price Forecast – Natural gas markets drift lower |
Was American States Water Company's (NYSE:AWR) Earnings Decline Part Of A Broader Industry Downturn?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
When American States Water Company (NYSE:AWR) released its most recent earnings update (31 March 2019), I wanted to understand how these figures stacked up against its past performance. The two benchmarks I used were American States Water's average earnings over the past couple of years, and its industry performance. These are useful yardsticks to help me gauge whether or not AWR actually performed well. Below is a quick commentary on how I see AWR has performed.
Check out our latest analysis for American States Water
AWR's trailing twelve-month earnings (from 31 March 2019) of US$66m has declined by -2.2% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 2.1%, indicating the rate at which AWR is growing has slowed down. Why is this? Let's examine what's occurring with margins and if the whole industry is experiencing the hit as well.
In terms of returns from investment, American States Water has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. However, its return on assets (ROA) of 5.6% exceeds the US Water Utilities industry of 3.9%, indicating American States Water has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for American States Water’s debt level, has declined over the past 3 years from 9.3% to 7.4%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 72% to 77% over the past 5 years.
American States Water's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that are profitable, but have capricious earnings, can have many factors influencing its business. I recommend you continue to research American States Water to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for AWR’s future growth? Take a look at ourfree research report of analyst consensusfor AWR’s outlook.
2. Financial Health: Are AWR’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. |
The 4 Biggest Cannabis Question Marks for the Second Half of 2019
Over the past couple of years, marijuana has been a significant moneymaker for investors. Although not every pot stock has moved higher, buying a handful of the most popular growers and ancillary players would likely have yielded a return that ran circles around the broader market.
There are, however, pretty big question marks overhanging the industry as we head into the second half of 2019. Here are the four questions Wall Street and investors will be looking to get answered before the year comes to a close.
Image source: Getty Images.
It probably goes without saying that the highlight of 2019 for the marijuana industry is the expected waving of the green flag by regulatory agency Health Canada on derivative products, such as edibles, cannabis-infused beverages (not containing alcohol), topicals, vapes, and concentrates. Oils and sprays are already legal.
Earlier this year, Health Canadasignaled its intentionsto legalize these alternative consumption options by no later than the one-year anniversary of Canada's recreational marijuana legalization date, October 17. But that doesn't narrow down exactly when Health Canada will be sounding the horn on derivative sales.
The reason marijuana derivatives get so much attention is because they're a significantly higher-margin product than traditional dried cannabis flower. Dried flower in select U.S. states that've legalized adult-use weed has steadily dropped in price, and the same will likely happen in Canada a few years from now. That makes derivatives an especially important piece of the puzzle for all major cannabis growers.
For example,CannTrust Holdings(NYSE: CTST), which currently projects as anywhere from the third- to fifth-largest grower in Canada at 200,000 to 300,000 kilos per year, announced in late March its intention to acquire up to 200 acres of land for outdoor growing purposes. Although CannTrust hasn't been too specific, the expectation is that a majority of this outdoor-grown cannabiswill be used for extraction purposesin the creation of derivative products, such as edibles and concentrates. This suggests that perhaps half, or more, of CannTrust's sales could come from high-margin derivatives.
Getting more clarity on the derivative sale kickoff tops the list of questions we want answered.
Image source: Getty Images.
Next on the list, investors are going to want to know whether or not recent policy changes made by Health Canada have begun to resolve the country's thus farpersistent supply shortage of marijuana.
As reported byMarijuana Business Daily, Health Canada was buried underneath a backlog of nearly 840 applications, as of January 2019. While many of these licensing applications are for cultivation, they also include processing, distribution, and sales (with the average sales application taking nearly a year to approve, as of May 2018). Although this backlog of applications isn't the only reason there's a cannabis shortage -- a lack of compliant packaging, and a late start to capacity expansion by growers is also to blame -- it's probably the most visible reason.
Recently, Health Canada announced achange to the cultivation application processdesigned to weed out unqualified candidates (pun fully intended). All future applicants will need to have their grow farms fully constructed prior to submitting their paperwork. This should eliminate underfunded companies and allow Health Canada to approve growers that are ready to produce.
For instance,Aphria(NYSE: APHA), which slots in as possibly the No. 3 grower in Canada at 255,000 kilos a year, when fully operational, has been waiting more than a year for Health Canada to OK its Aphria Diamond campus. Aphria Diamond, which was formed of a joint venture between Aphria and Double Diamond Farms and involves retrofitting existing greenhouses for cannabis production, will be capable of 140,000 kilos of Aphria's 255,000 kilos. However, nothing can be done till the green light is given by Health Canada.
Wall Street and investors will be looking for evidence that Canada's licensing backlog, and underlying supply problems, are ebbing in the second half of 2019.
Image source: Getty Images.
Sure,Aurora Cannabis(NYSE: ACB)may just be one pot stock among dozens of possible investment choices, but it also happens to be theprojected leading producer of cannabis in the world. With 15 production facilities, many of which are located in Canada, Aurora estimates that it'll grow its annual run-rate production from around 150,000 kilos a year now to closer to 625,000 kilos a year by the midpoint of next year. By the time all 15 grow farms are running at full capacity, Aurora Cannabis could easily near 700,000 kilos a year of output.
Yet, one thing that's proven elusive to Aurora, thus far, has been a partnership with a global brand-name company. A number of its large peers have landed equity investments, whereas Aurora Cannabis has had discussions with the likes ofCoca-Cola, butwalked away without a partnership, joint venture, or equity investment.
In March, Aurora Cannabis announced the hiring of billionaire activist investor Nelson Peltz to act as a strategic advisor for the company. The founder of Trian Fund Management has keen knowledge of the food and beverage industry, which makes him a logical bridge between the cannabis industry and the soon-to-be-booming derivatives industry that includes edibles and nonalcoholic infused beverages.
The question is: Does Auroraget a deal done before the end of the year? It would only seem logical that, after hiring Peltz, Aurora would want a deal in place prior to the legalization of new consumption options by Health Canada. With this legalization timeline approaching, Aurora's fate remains a topic of great debate among investors.
Image source: Getty Images.
Fourth and finally, Wall Street and investors will be hoping for some added clarity on the upcoming presidential and congressional elections in November 2020 in the United States.
Although these elections are still more than 16 months away, investors are going to be looking for signs that the Democratic field, which currently sits at roughly two dozen declared presidential candidates, is narrowing. More important is what handful of candidates rises to the top of the pack on the Democratic ticket.
Historically speaking, Democrats and Independents have a considerably more favorable view of cannabis than do Republicans, at least according to Gallup polling. The GOP-controlled Senate is a big reason why marijuana reform legislation hasn't been given serious floor time for debate. Senate Majority Leader Mitch McConnell (R-Ky.) hasthwarted efforts to reform the pot industry before, and nothing short of a Democrat-controlled Congress has any shot of reforming the U.S. cannabis industry at the federal level.
Then again, party lines aren't always concrete. Democratic frontrunner Joe Biden has historically been averse to cannabis reform, thoughhe's softened his stance in recent years. Meanwhile, Sens. Bernie Sanders (I-Vt.), Elizabeth Warren (D-Mass.), Kamala Harris (D-Calif.), and Cory Booker (D-N.J.)all support broad-based federal reform and legalization.
We're not going to know exactly which two candidate will square off for the presidency until sometime in 2020, but we can certainly hope for added transparency that'll help investors narrow the field considerably.
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 Williamsowns shares of CannTrust Holdings Inc. The Motley Fool recommends CannTrust Holdings Inc. The Motley Fool has adisclosure policy. |
Make Way for Driverless Cars: Top 5 Gainers
Self-driving cars on American roads are almost a reality. By the end of this year, companies that manufactures these driverless cars are expected to launch a self-driving rideshare service.
Though some may not like the idea of a driverless car, many are keyed up about the concept. It’s worth pointing out that almost 40,000 people die each year in the United States, mostly due to automotive accidents. Self-driving cars are expected to bring down the numbers. As a plus, these cars will be able to reduce logistics expenses.
The biggest operating cost of maintaining a car right now is paying the driver. For instance, Uber collected $37 billion in fares last year, out of which $30 billion or 81% went to the drivers. Without a doubt, self-driving cars will slash this to zero. UBS, by the way, chipped in and said that driverless ride-sharing services will be 70% cheaper compared to Uber.
In America, it is estimated that nearly 63% people live in urban areas. And those who possess cars need to pay for loans, insurance, registration, inspection, repair, parking, oil and gas. These hassles can be avoided by simply availing a safer and less expensive self-driving car.Here, we bring to you the best stocks to play the autonomous vehicle hype.
Alphabet
Google-parent Alphabet Inc. GOOGL is predominantly known for Google Search, Gmail, YouTube, Android and Chrome. The array of web services account for the vast majority of Alphabet’s revenues. In first-quarter 2019, its “other bets” segment that includes Waymo, Alphabet’s drivers’ vehicle subsidiary, played a significant role.
Waymo announced plans to build a 200,000-square-foot facility in Michigan, thereby setting up the world’s first factory for mass production of self-driving cars. Analysts at Morgan Stanley now value Waymo at around $175 billion. Notably, Waymo’s driverless fleet is now covering one million miles per month.
Alphabet has an average four-quarter positive earnings surprise of 19.02%. The company has outperformed the broader Internet - Services industry over the past two-year period (+12.8% vs -14.6%).
Tesla
Tesla, Inc. TSLA has delivered more than 300,000 cars in 2017and has gone on to double that count over the last five quarters. The company’s current fleet now represents partial automation, which the company aims to fully convert into self-driving platforms in the near future.
Tesla has an average four-quarter positive earnings surprise of 117.58%. The company has outdone the broader Automotive - Domestic industry over the past decade (+1079.3% vs +211.2%).
Uber
Uber Technologies, Inc. UBER has gained a lot of popularity by providing taxi services through its app. And it has announced that it is testing driverless cars to add to its fleet. Brian Johnson, an analyst for Barclays, said that such a move will help Uber trim cost of a ride by an extra 34 cents per mile.
Uber has an average four-quarter positive earnings surprise of 2.59%. The company has surpassed the broader Internet - Services industry over the past year (+7.9% vs -17.0%).
Intel
Intel Corporation INTC doesn’t have its own autonomous driving platform. But, the company’s $15.3-billion acquisition of Mobileye helped it build chips for self-driving systems. Intel has agreed to supply EyeQ5 chip in 8 million driverless vehicles for a European automaker.
Intel has an average four-quarter positive earnings surprise of 8.50%. The company has outpaced the broader Semiconductor - General industry over the past two-year period (+36.1% vs +25.7%).
Nvidia
From automakers to research teams to startups, all depend on Nvidia NVDA for hardware and software solutions for self-driving vehicles.
The company has an average four-quarter positive earnings surprise of 3.94%. The company has outperformed the broader Semiconductor - General industry so far this year (+14.7% vs +7.8%).
By the way, all the aforesaid self-driving car stocks possess a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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 reportAlphabet Inc. (GOOGL) : Free Stock Analysis ReportTesla, Inc. (TSLA) : Free Stock Analysis ReportNVIDIA Corporation (NVDA) : Free Stock Analysis ReportIntel Corporation (INTC) : Free Stock Analysis ReportUber Technologies Inc. (UBER) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Is Power Integrations, Inc. (NASDAQ:POWI) As Strong As Its Balance Sheet Indicates?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as Power Integrations, Inc. (NASDAQ:POWI) with a market-capitalization of US$2.1b, rarely draw their attention. Surprisingly though, when accounted for risk, mid-caps have delivered better returns compared to the two other categories of stocks. This article will examine POWI’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysisinto POWI here.
View our latest analysis for Power Integrations
Debt-to-equity ratio standards differ between industries, as some are more capital-intensive than others, meaning they need more capital to carry out core operations. As a rule of thumb, a financially healthy mid-cap should have a ratio less than 40%. For Power Integrations, investors should not worry about its debt levels because the company has none! It has been operating its business with zero debt and utilising only its equity capital. Investors' risk associated with debt is virtually non-existent with POWI, and the company has plenty of headroom and ability to raise debt should it need to in the future.
Since Power Integrations doesn’t have any debt on its balance sheet, it doesn’t have any solvency issues, which is a term used to describe the company’s ability to meet its long-term obligations. However, another measure of financial health is its short-term obligations, which is known as liquidity. These include payments to suppliers, employees and other stakeholders. At the current liabilities level of US$51m, the company has been able to meet these commitments with a current assets level of US$341m, leading to a 6.7x current account ratio. The current ratio is the number you get when you divide current assets by current liabilities. Having said that, many consider a ratio above 3x to be high, although this is not necessarily a bad thing.
POWI has zero-debt as well as ample cash to cover its near-term liabilities. Its safe operations reduces risk for the company and shareholders, however, some level of debt could also ramp up earnings growth and operational efficiency. Keep in mind I haven't considered other factors such as how POWI has performed in the past. I suggest you continue to research Power Integrations to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for POWI’s future growth? Take a look at ourfree research report of analyst consensusfor POWI’s outlook.
2. Valuation: What is POWI 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 POWI 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. |
Here's Why it is Worth Holding on to Applied Industrial Stock
We issued an updated research report onApplied Industrial Technologies, Inc.AIT on Jun 20.The industrial products distributor currently carries a Zacks Rank #3 (Hold) and has a market capitalization of approximately $2.2 billion.Below we discussed why it will be prudent for investors to hold on to this stock for now.Factors Favoring Applied IndustrialStrengthening Service Center-Based Distribution Segment:In the third quarter of fiscal 2019 (ended Mar 31, 2019), the Service Center-Based Distribution segment generated roughly 71.2% of Applied Industrial’s revenues. On a year-over-year basis, the segment’s sales grew 4.8% (or 6% organically), backed by growth in business related to the U.S. oil and gas market, strength in the industrial MRO market, improved pricing, and healthy business in the United States and international markets.For the fourth quarter of fiscal 2019 (ended June 2019), the company anticipates Service Center-Based Distribution segment’s organic sales to grow in a mid-single digit.Buyouts:Applied Industrial seems to favor acquisitions to fortify its product portfolio. It acquired Sentinel Fluid Controls in March 2017 and FCX Performance in January 2018. While Sentinel Fluid added vigor to the Fluid Power business, the FCX Performance buyout boosted its Specialty Flow Control business. In addition, the company bought Fluid Power Sales in November 2018, and MilRoc Distribution and Woodward Steel in March 2019.In the third quarter of fiscal 2019, acquired assets positively impacted sales by 6.2%. On a segmental basis, buyouts boosted Fluid Power & Flow Control’s sales by 21.1% and Service Center-Based Distribution’s sales by 0.6%.Shareholder-Friendly Policies:The company effectively uses capital for rewarding shareholders handsomely through dividend payments. It is worth mentioning here that it increased the quarterly dividend rate by 3.3% in January 2019.In the first nine months of fiscal 2019 (ended Mar 31, 2019), the company’s dividend payments totaled $35.3 million, reflecting year-over-year growth of 3.1%.Factors Working Against Applied IndustrialWeakness in Fluid Power & Flow Control Segment:The company’s top line in the third quarter of fiscal 2019 lagged the Zacks Consensus Estimate by 2.67%. Of the two segments, organic sales of the Fluid Power & Flow Control segment in the reported quarter declined 7.5% due mainly to weak demand from technology end markets.The company predicts weakness to persist in technology end markets for the Fluid Power & Flow Control segment, with its organic sales likely to decline 4-7% in the fiscal fourth quarter.Forex & Cost Woes:Geographical diversification is reflective of a flourishing business of the company. However, this diversity exposed it to headwinds arising from geopolitical issues and unfavorable movements in foreign currencies. In the third quarter of fiscal 2019, forex woes adversely impacted the company’s sales growth by 0.7%. Persistence of such headwinds will continue impacting its top-line results.Also, the inflationary environment adversely impacted gross margin in the fiscal third quarter. Increase in selling, general and administrative expenses as well as high interest expenses too adversely impacted results. We believe that rising costs and expenses, if unchecked, will continue to hurt Applied Industrial's profitability in the quarters ahead.Share Price Performance & Lowered Estimates:In the past three months, the company’s share price has decreased 2.1% against the industry’s growth of 4.7%.
Also, Applied Industrial's earnings estimates for the fourth quarter of fiscal 2019 have been lowered in the past 60 days. The Zacks Consensus Estimate for the same quarter is currently pegged at $1.20, suggesting a decline of 1.6% from the figure mentioned 60 days ago.Applied Industrial Technologies, Inc. Price and Consensus
Applied Industrial Technologies, Inc. price-consensus-chart | Applied Industrial Technologies, Inc. Quote
Stocks to ConsiderSome better-ranked stocks in the industry are Roper Technologies, Inc. ROP, Chart Industries, Inc. GTLS and DXP Enterprises, Inc. DXPE. While Roper and Chart Industries currently sport a Zacks Rank #1 (Strong Buy), DXP Enterprises carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.In the past 30 days, earnings estimates for all these three stocks have improved for the current year. Further, average earnings surprise for the last four quarters was positive 8.43% for Roper, 16.56% for Chart Industries and 48.47% for DXP Enterprises.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 reportRoper Technologies, Inc. (ROP) : Free Stock Analysis ReportDXP Enterprises, Inc. (DXPE) : Free Stock Analysis ReportChart Industries, Inc. (GTLS) : Free Stock Analysis ReportApplied Industrial Technologies, Inc. (AIT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Equinix & IBM Cloud Collaborate for Data-Center Offering
Equinix, Inc.EQIX recently expanded its collaboration with IBM Cloud which is aimed at providing private and scalable connectivity to global companies at the digital edge through Equinix Cloud Exchange Fabric (ECX Fabric).
The stronger partnership leverages on the long-term relationship between the companies where IBM Cloud Direct Link Exchange is deployed in a number of Equinix International Business Exchange (IBX) data centers globally, more than any other Direct Link Exchange provider.
As companies have been adopting a hybrid cloud strategy that combines public, private and on-premises capabilities, providing the ability to connect with IBM Cloud across key metros will help enterprises accelerate the deployment of hybrid cloud solutions.
These deployments will be possible through the global ECX Fabric which will provide a private onramp to IBM Cloud, including Direct Link Dedicated, Direct Link Exchange and Direct Link Dedicated Hosting. Moreover, Equinix has joined the IBM Cloud Direct Link Service Provider Program that will enable it to provide at least one Direct Link point of presence in all strategic markets of IBM.
These efforts will enable customers in 16 metros globally to establish a secure, private cloud connection to IBM Cloud. Further, by bypassing the public internet, customers will utilize ECX Fabric to execute low-latency, hybrid cloud solutions that will expand their IT infrastructure at the digital edge.
Amid growth in cloud computing, Internet of Things and big data, as well as increasing number of companies opting for third-party IT infrastructure, Equinix’s efforts to expand its data-center offerings will go a long way for sustainable growth.
Nonetheless, fierce competition from established Internet data-center operators and hyperscale providers might depress the company’s margins and revenues.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have rallied 11.6% compared with the real estate market’s growth of 4.6%.
Key Picks
Investors can also consider some better-ranked stocks from the same space like Host Hotels & Resorts, Inc. HST, Lamar Advertising Company LAMR and PS Business Parks, Inc. PSB, carrying a Zacks Rank of 2 (Buy), currently. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Host Hotels & Resorts’ funds from operations (FFO) per share estimates for 2019 moved marginally north to $1.82 over the past month.
Lamar Advertising’s FFO per share estimates for the ongoing year have been revised slightly upward to $5.83 in 30 days’ time.
PS Business Parks’ 2019 FFO per share estimate marginally moved up to $6.71 in the past week.
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 reportEquinix, Inc. (EQIX) : Free Stock Analysis ReportLamar Advertising Company (LAMR) : Free Stock Analysis ReportPS Business Parks, Inc. (PSB) : Free Stock Analysis ReportHost Hotels & Resorts, Inc. (HST) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Trade of the Day: Short the Utilities Select Sector SPDR ETF
As government bond yields have continued to move lower in recent weeks, the chase for yield has accelerated. One area in which this is notable is utilities stocks, as represented by theUtilities Select Sector SPDR ETF(NYSARCA:XLU). However, this part of the market is now looking increasingly overbought and ripe for a pause or mean-reversion move lower. With that in mind, let’s take a look at how to play the XLU ETF today.
Source: Shutterstock
When it comes to utilities as a sector of stocks, I often hear people discuss how this is a defensive sector and one to “hide in” when the broader stock market is in trouble. While that can be true sometimes, I find this to be a dangerous generalization and oversimplification of the true dynamics behind what drives utilities stocks and bond prices for that matter.
Case in point: Lately the broader stock market has gyrated and is now just about to break to fresh all-time highs again … yet bonds and utility stocks have also seen a persistent bid. In other words, much of the recent rally in utility stocks was arguably more a factor of yield-searching investors buying dividend-paying utilities than it was an ominous sign for a big stock market meltdown … at least so far.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
• 6 Stocks Ready to Bounce on a Trade Deal
Click to Enlarge
Looking at the multi-year weekly chart we see that as a result of the year-to-date rally, the XLU ETF has once again reached the very upper end of its 10-year upward-sloping channel. The simple question to ask oneself here is whether it’s worth fighting this chart, i.e., betting on a breakout higher. To me, the answer is clear.
No.
While I am not calling for a collapse of utilities stocks here, I do think upside in the near-term is capped and a sideways-to-lower move is ahead, when you consider it through the lens of healthy price consolidation.
Click to Enlarge
On the daily chart, a couple of things stand out that also confirm the overbought readings of the above weekly chart:
The recent rally in the XLU ETF has thus far not been met with a new high in momentum. This is shown by the MACD momentum oscillator at the bottom of the chart, which printed a high in March but since then has not yet made a new high or matched the highs from March. If you consider investor psychology for a moment, this may mean that buyers are exhausted in the near term. The price area around $61 has offered overhead resistance since early June and while this does not mean a marginal overshooting move to the upside can’t take place, this area does coincide with the very upper-end of the aforementioned multi-year trading range on the weekly chart.
Simply put, active investors and traders at this juncture and around the $61 area could look to sell or short the XLU ETF with a downside target at $58.50.
Any fresh bullish reversal from here would be a stop loss signal. Options traders could look to buy an at-the-money put or put spread using September options.
Get FREE ACCESS to Serge’s renowned Stock Market Scanner with actionable trade ideas. Get itHERE.
• 4 Top American Penny Pot Stocks (Buy Before June 21)
• 7 Blue-Chip Stocks to Buy for a Noisy Market
• 5 Strong Buy Biotech Stocks for the Second Half
• 6 Stocks Ready to Bounce on a Trade Deal
Compare Brokers
The postTrade of the Day: Short the Utilities Select Sector SPDR ETFappeared first onInvestorPlace. |
Urovant Sciences Ltd. (NASDAQ:UROV): Immense Growth Potential?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
The most recent earnings update Urovant Sciences Ltd.'s (NASDAQ:UROV) released in June 2019 signalled that losses became smaller relative to the prior year's level - great news for investors Below is my commentary, albeit very simple and high-level, on how market analysts predict Urovant Sciences's earnings growth outlook over the next couple of years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
View our latest analysis for Urovant Sciences
Analysts' outlook for next year seems pessimistic, with earnings becoming even more negative, arriving at -US$160.0m in 2020. In the following year, earnings are expected to hover around the same level before reducing to -US$95.8m in 2022.
Even though it’s helpful to understand the growth year by year relative to today’s figure, it may be more beneficial to estimate the rate at which the business is rising or falling every year, on average. The benefit of this technique is that it ignores near term flucuations and accounts for the overarching direction of Urovant Sciences's earnings trajectory over time, fluctuate up and down. To compute this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 31%. This means that, we can expect Urovant Sciences will grow its earnings by 31% every year for the next couple of years.
For Urovant Sciences, I've put together three fundamental aspects you should further examine:
1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Valuation: What is UROV 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 UROV is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of UROV? Exploreour interactive list of stocks with large growth potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Nvidia Stock Is Superior to AMD Stock
Advanced Micro Devices(NASDAQ:AMD) is doing well in 2019. Not only is it bringing out some great products, such as the next-generation Navi graphics card, but AMD stock price has climbed 65% this year.
Source: AMD
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
AMD stock is definitely beatingNvidia (NASDAQ:NVDA)stock. So far this year, NVDA is up 15%, or one-quarter the return of AMD stock.
• 6 Stocks Ready to Bounce on a Trade Deal
Despite AMD’s much stronger performance, analysts prefer Nvidia stock over Advanced Micro Devices stock.
According toThe Wall Street Journal, 33 analysts have a rating on AMD stock. Of those 33,42%(14) have an “overweight” or “buy” rating on the shares. As for Nvidia, 37 analysts have a rating on NVDA stock, with62%(23) giving it an “overweight” or a “buy” rating. That’s a 16 percentage point gap in favor of Nvidia stock, despite all the positive news about AMD.
Also, the current average target price for NVDA stock is $182. 77, meaning that investors can theoretically gain 17% by buying the shares. Meanwhile, analysts have an average target price on Advanced Micro Devices stock of $29.29, more than a dollar below its current share price.
But that likely has been caused as much by the fact that AMD stock price has been climbing at a blistering pace over the past 18 months (it surged 80% last year) as by any belief that Nvidia is the stronger company.
We could argue day and night about the pros and cons of each stock and not come up with a winner. Nonetheless, the facts are the facts. Analysts prefer NVDA over AMD at the moment.
Here are a couple of reasons why.
Earlier this month,Morgan Stanleyupgraded AMD stock from “underweight” to “equal-weight” despite its misgivings about the shares.
“While our earnings concerns over the last 12 months have played out and 2H numbers still look high, the table is set well for 2020 and there are positive near-term catalysts. We still think there is too much short-term optimism, but we struggle with catalysts to remain UW [underweight],” Morgan Stanley analystsstated in a note to investors onJune 6.
Even though Morgan Stanley also raised its price target from $17 to $28 on Advanced Micro Devices stock, it seems that the firm still has some misgivings about the company’s earnings outlook for the rest of this year. Given chip names seem to sell off considerably when they deliver worse-than-expected earnings, the analysts’ comments suggest that they believe the cart is ahead of the horse at this point.
No one should buy AMD stock in 2019 unless they’re planning to own it for the long haul. That’s because if any aspect of AMD’s earnings misses analysts’ consensus outlook when the company delivers its next quarterly earnings in July, AMD stock price will fall considerably. In such a scenario, AMD could drop to the mid or low $20s.
Like all chip stocks, Nvidia’s had its fair share of volatility in 2019. It lost 23% in May alone, promptingInvestorPlace’sVince Martin to call the decline “overkill.”Martinsuggestedthat, despite the hurdles NVDA is facing, it’s got great long-term potential.
I couldn’t agree more.
Recently, the CEO of investment advisory firmStrategic Wealth Partners, Mark Tepper, appeared onCNBCto talk about the chip makers. He had a lot of good things to say about Nvidia.
“With Nvidia, you’re getting best-of-breed exposure to all the highest growth end markets that we want to play — autonomous vehicles, AI, data center, gaming,” Teppersaidon June 17. “It’s trading below $145 right now. And it looks really nice in the $135 to $140 range. You might even be able to get it at around $125, and it’s just a no-brainer at that level.”
Of course, Tepper was speaking about NVDA stock before it jumped 6% on June 18.
The point is that Nvidia is the cream of the crop when it comes to chip makers, and yet its stock’s been hit especially hard in 2019.
Currently trading at 21 times forward earnings compared to 30 for AMD stock, Nvidia’s the stock to own in a volatile and uncertain market. That’s why many more analysts like it better than Advanced Micro Devices stock.
And let’s not forget Nvidia’s significantfree cash flow, which towers over that of Advanced Micro Devices.
At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities.
• 4 Top American Penny Pot Stocks (Buy Before June 21)
• 7 Blue-Chip Stocks to Buy for a Noisy Market
• 5 Strong Buy Biotech Stocks for the Second Half
• 6 Stocks Ready to Bounce on a Trade Deal
Compare Brokers
The postNvidia Stock Is Superior to AMD Stockappeared first onInvestorPlace. |
Darden (DRI) Q4 Earnings Surpass Estimates, Revenues Lag
Darden Restaurants, Inc.DRI reported fourth-quarter fiscal 2019 results, wherein earnings surpassed the Zacks Consensus Estimate, whereas revenues lagged the same.
Adjusted earnings of $1.76 per share beat the Zacks Consensus Estimate of $1.73. Moreover, the bottom line increased 26.6% year over year on higher revenues. Results were aided by the company’s relentless efforts to improve the basic operating factors of the business — food, service and ambiance.
Total revenues of $2,229.1 million lagged the consensus mark of $2,240 million. However, revenues increased 4.5% from the prior-year quarter. The upside was driven by the addition of 39 net restaurants and a 1.6% increase in blended comps.
Despite earnings beat and growth in revenues, shares of Darden fell 4.9% in pre-market trading. This is because the company’s sales growth across every brand deteriorated sequentially. Also, sales total sales lagged the consensus mark.
Meanwhile, the company’s shares have gained 17.6% so far this year, underperforming the industry’s 21.4% rally.
Revenues by Segments
Darden reports business under four segments — Olive Garden, LongHorn Steakhouse, Fine Dining that includes The Capital Grille and Eddie V's, and Other Business.
In the fiscal fourth quarter, the company’s legacy brands posted blended comps growth of 1.6%. In the fiscal third quarter, comps increased 2.8%.
Sales atOlive Gardenwere up 3.7% year over year to $1,107 million. Comps grew 2.4% at the segment, lower than the prior quarter’s comp growth of 4.3%. Traffic declined 0.4%. Pricing improved 1.6% and menu-mix increased 1.2%.
Sales atFine Diningincreased 5% to $154.6 million. Comps at The Capital Grille rose 2.9% compared with growth of 4.3% in third-quarter fiscal 2019. Further, Eddie V's posted comps growth of 2%, lower than 3.7% improvement recorded in the prior quarter.
Revenues fromOther Businessgrew 4.9% year over year to $483.1 million. However, comps at Seasons 52 fell 1.5% in the reported quarter compared with comps decline of 1.3% in third-quarter fiscal 2019. Comps at Yard House edged down 1.4% compared with 2.1% decrease in the prior quarter. Meanwhile, comps slipped 1.9% at Bahama Breeze compared with a decline of 3.7% in the preceding quarter.
AtLongHorn Steakhouse, sales rose 5.7% to $484.4 million. Comps at LongHorn Steakhouse increased 3.3%, down from comps growth of 3.8% in the fiscal third quarter. Traffic increased 0.3%. Also, pricing and menu mix grew 1.8% and 1.2%, respectively.
In the reported quarter, comps at Cheddar's decreased 3.4% compared with 2.7% decline in third-quarter fiscal 2019.
Operating Highlights & Net Income
In the fiscal fourth quarter, total operating costs and expenses increased 5% year over year to $1,999.3 million. The rise was due to an overall increase in food and beverage costs, restaurant expenses, and labor costs.
Net earnings in the fiscal fourth quarter were $208 million, up 19.2% from the year-ago level.
Darden Restaurants, Inc. Price, Consensus and EPS Surprise
Darden Restaurants, Inc. price-consensus-eps-surprise-chart | Darden Restaurants, Inc. Quote
Balance Sheet
Cash and cash equivalents as of May 26, 2019, totaled $457.3 million, up from $146.9 million as of May 27, 2018.
Inventories totaled $207.3 million at the end of the reported quarter. Goodwill, as a percentage of total assets, was 20.1% in the quarter.
Long-term debt as of May 26, 2019, was $927.7 million, up from $926.5 million as of May 27, 2018.
During the fiscal fourth quarter, the company repurchased approximately 0.4 million shares of its common stock for roughly $42 million. It still has $304 million remaining under the current $500-million repurchase authorization.
Highlights of Fiscal 2019 Results
Adjusted earnings in fiscal 2019 were $5.82, outpacing the Zacks Consensus Estimate of $5.78. Earnings also increased 19.6% year over year.
Total sales grew 5.3% to $8.51 billion, driven by the addition of 39 net new restaurants and a blended same-restaurant sales increase of 2.5%.
Fiscal 2020 Outlook
For fiscal 2020, the company expects total revenues to increase 5.3-6.3%. This will include the 2% positive synergy from the 53rd week. Comps are projected to increase 1-2%. Darden’s earnings per share are anticipated to be $6.30-$6.45.
Meanwhile, the company expects inflation to be up 2.5% in 2020. With an effective tax rate of 10-11%, total capital spending is expected to be $450-$500 million. Darden plans to open 50 gross and 44 net new restaurants in 2020.
Zacks Rank & Stocks to Consider
Darden currently has a Zacks Rank #3 (Hold). A few better-ranked stocks in the same space include Chipotle CMG, Papa John’s PZZA and Noodles & Company NDLS. While Noodles & Company currently sports a Zacks Rank #1 (Strong Buy), Chipotle and Papa John’s carry a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Noodles & Company, and Chipotle’s earnings for the current year are expected to increase 700% and 43.5%, respectively. Papa John’s earnings for 2020 are expected to grow 62.8%.
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 reportPapa John's International, Inc. (PZZA) : Free Stock Analysis ReportChipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis ReportDarden Restaurants, Inc. (DRI) : Free Stock Analysis ReportNoodles & Company (NDLS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Should You Worry About Argo Group International Holdings, Ltd.'s (NYSE:ARGO) CEO Pay?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Mark Watson has been the CEO of Argo Group International Holdings, Ltd. (NYSE:ARGO) since 2000. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Argo Group International Holdings
At the time of writing our data says that Argo Group International Holdings, Ltd. has a market cap of US$2.6b, and is paying total annual CEO compensation of US$8.3m. (This figure is for the year to December 2018). Notably, that's an increase of 182% over the year before. While we always look at total compensation first, we note that the salary component is less, at US$1.1m. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.2m.
As you can see, Mark Watson is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Argo Group International Holdings, Ltd. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Argo Group International Holdings has changed over time.
On average over the last three years, Argo Group International Holdings, Ltd. has shrunk earnings per share by 22% each year (measured with a line of best fit). In the last year, its revenue is up 5.1%.
Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to checkthis free visual depiction ofwhat analysts expectfor the future.
I think that the total shareholder return of 77%, over three years, would leave most Argo Group International Holdings, Ltd. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
We compared total CEO remuneration at Argo Group International Holdings, Ltd. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.
On the other hand, returns have been good, so the company is doing something right. So on this analysis we'd stop short of criticizing the level of CEO compensation. If you think CEO compensation levels are interesting you will probably really likethis free visualization of insider trading at Argo Group International Holdings.
Important note:Argo Group International Holdings may not be the best stock to buy. You might find somethingbetterinthis list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Air Products to Feature New Gas Density Sensor at POWDERMET
Air Products and Chemicals, Inc.APD is slated to showcase its new gas density sensor at the International Conference on Powder Metallurgy & Particulate Materials (POWDERMET), which is scheduled to be held in Phoenix, AZ, from Jun 23 to 26.The company’s innovative gas density sensor enables heat treaters to attain production efficiencies in various types of furnaces for hydrogen concentration measurement on the cooling and hot zone for nitrogen-hydrogen atmospheres.The sensor consistently measures the hydrogen percentage of the furnace atmosphere. This enables heat treaters to optimize the concentration of hydrogen required to produce quality parts. It also helps heat treaters to reduce costs and complies with regulatory requirements as well as industry standards. Moreover, the sensor provides additional capabilities including local alarms on upset process conditions, process advisor and predictive maintenance.Air Products’ shares have rallied 39.8% in the past year, against the industry’s 34.6% decline.
In April 2019, the company raised its adjusted EPS guidance for fiscal 2019 to the range of $8.15-$8.30 from the previous expectation of $8.05-$8.30. This indicates 10% rise year over year at the midpoint.The company expects adjusted EPS for third-quarter fiscal 2019 in the band of $2.10-$2.15, which calls for 8-10% rise year over year. Also, the company raised capital expenditure expectations for fiscal 2019 to the range of $2.4-$2.5 billion, from the previous band of $2.3-$2.5 billion.Zacks Rank & Other Key PicksAir Products currently carries a Zacks Rank #2 (Buy).Some other top-ranked stocks in the basic materials space are Materion Corporation MTRN, Flexible Solutions International Inc FSI and AngloGold Ashanti Limited AU. These stocks currently sport a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.Materion has an expected earnings growth rate of 27.3% for 2019. The company’s shares have gained 20.3% in the past year.Flexible Solutions has a projected earnings growth rate of 342.9% for the current year. The company’s shares have surged 151.5% in a year’s time.AngloGold has an estimated earnings growth rate of 90.6% for the current year. Its shares have rallied 93.1% in the past year.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 reportAir Products and Chemicals, Inc. (APD) : Free Stock Analysis ReportFlexible Solutions International Inc. (FSI) : Free Stock Analysis ReportAngloGold Ashanti Limited (AU) : Free Stock Analysis ReportMaterion Corporation (MTRN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Better Buy: Realty Income vs National Retail Properties
Realty Income(NYSE: O)andNational Retail Properties(NYSE: NNN)are the industry bellwethers in the net leasereal estate investment trust(REIT) space. With 27 consecutive annual dividend increases at Realty Income and an even more impressive 29 at National Retail, conservative income investors really need to look at both before making a final stock purchase decision. This is more important now than ever before, too, because there are increasingly important differences between their businesses.
Here's what you need to know to make the call between the market's two favorite net lease REITs, though you might decide to pass on both before you're done reading.
REITs own property -- usually commercial or retail -- and lease it out to tenants. That's pretty simple to understand. However, net lease REITs do things a little differently. They own properties where thetenantis responsible for most of the asset's expenses, often including things like basic maintenance and taxes.
Image source: Getty Images.
It's a fairly low-risk model for the property owner, but the arrangement can be a benefit to both sides of the transaction. A company that leases property gets to raise cash by selling an asset while still retaining the use of the property just like it owned it. The REIT exchanges cash for a property backed by a long-term lease that will require little additional maintenance or other costs. A win/win if ever there was one.
The net lease model is so compelling that there are now lots of REITs using it today, including the self-storage sector and casinos. What makes National Retail and Realty Income stand out is that they have been doing this for decades. And their incredible dividend track records are proof of their long-term success.
They are, without question, the largest and best-known players in the space. For many years, their portfolios were fairly similar, too. But that's started to change, and their business plans are not as interchangeable today.
National Retail is 100% focused on owning single-tenant retail properties such as convenience stores (7-Eleven, for example) and restaurants (Taco Bell and Denny's), it's two largest sectors. This REIT is also focused on U.S. assets, with broad diversification across the country. And with roughly 3,000 properties, it's pretty big.
Realty Income is even bigger, with nearly 6,000 properties, but that's not the only difference. While once focused on retail assets like National Retail, Realty Income has started to branch out. Today, around 82% of its rent roll is retail, with industrial (11%), office (4%), and agriculture (2%, vineyards) making up the rest.
Although 18% may not sound like a huge part of the portfolio, it provides Realty Income with more avenues to grow its portfolio. The ability to expand has been helped by another change -- Realty just inked its first deal in the United Kingdom (about 2% of rents). That potentially opens Europe up to the company, as well.
When it comes to growth, Realty Income has more levers to pull. But it will need those levers because its larger scale requires more transactions to maintain the growth rate for this larger property business. It had to expand beyond retail.
O Dividend Per Share (Quarterly)data byYCharts.
For potential investors, this raises the question: How focused do you want your portfolio to be? If you preferdiversification, then Realty Income is the easy winner here (and probably the slightly better option for most investors). If you like a company that focuses on what it knows best, then National Retail would have the edge.
As to which does it better, at the end of the day they both tend to increase dividends in the low- to mid-single-digit space annually.
So far, we have two large REITs doing similar things producing similar results for income investors. There are slight differences that might push you one way or the other, but nothing that would make you run screaming fromeithercompany.
The determining factor may be Wall Street. The long-term success these two REITs have achieved is no secret, and investors have bid the shares up accordingly.
Looking at the midpoint of Realty Income's adjusted funds from operations (AFFO) projection for 2019, it is currently trading at roughly 22 times AFFO. Price to AFFO is like the P/E ratio used to evaluate industrial companies. An AFFO of 22 means a relatively steep stock price. The dividend yield, meanwhile, is around 3.9%, way higher than theS&P 500 Index, but near the lowest levels in the company's history.
National Retail doesn't fare much better. Its price-to-AFFO multiple is roughly 20 times, using the midpoint of its 2019 projections. And its current yield of around 3.7% is also near the lowest levels in its history.
O Dividend Yield (TTM)data byYCharts.
Essentially, neither Realty Income nor National Retail Properties is cheap. In fact, the numbers indicate they are on the expensive side today. National Retail is a little cheaper, so it "wins" on the valuation front. But it also has a lower yield, so it's hard to suggest it's that much better of a deal. While both are reliable dividend payers, the mixture of historically low yields and higher valuations suggests most investors would be better off sitting on the sidelines.
Realty Income and National Retail Properties are iconic names in the net lease space with incredible histories. Both are very well-run REITs. You might prefer one or the other based on the important differences between them, most notably size and portfolio diversification, but neither would be a bad choice. And with elevated valuations and historically low yields, the wish list is where they should probably stay for now. They are both too expensive to buy today for most, if not all, investors.
More From The Motley Fool
• 10 Best Stocks to Buy Today
• The $16,728 Social Security Bonus You Cannot Afford to Miss
• 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own)
• What Is an ETF?
• 5 Recession-Proof Stocks
• How to Beat the Market
Reuben Gregg Brewerhas 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. |
EastWest Bioscience Signs Definitive Joint Venture Agreement with Azema Sciences; US Expansion Story Continues
VANCOUVER, BC / ACCESSWIRE / June 20, 2019 /EastWest Bioscience (the "Company" or "EastWest") (EAST.V) announces that, further to its News Release on April 30th, 2019 that the Company has signed a Definitive Agreement with Azema Sciences Inc. ("Azema" or "Azema Sciences") to Joint Venture on a preferred supply and distribution agreement, specifically for the supply of bulk CBD and finished CBD products, and distribution throughout the US and Globally.
EastWest is entering into a Joint Venture with Azema, securing for EastWest first rights on Azema's output of bulk CBD and finished CBD products which are ready for sale in the USA and globally. EastWest Science USA ("EastWest USA"), EastWest's US operating division, will be the preferred purchaser and distributor for Azema's finished goods. These finished products will include CBD creams, tinctures and salves, which are complementary products to EastWest's existing catalogue. Additionally, EastWest will have first right of refusal to all potential opportunities relating to Azema's Kentucky based CBD processing facility.
Situated on a wholly owned 6-acre property, which is currently home to its 18,000sf CBD processing facility, Azema Sciences is one of approximately 110 licensed Hemp processors in Kentucky. The Joint Venture specifies exclusive access for EastWest USA to 9000sf of Azema's facility, which will co-locate EastWest USA with Azema's CBD processing, tincture bottling and logistics operations. Co-locating provides EastWest USA with the real estate and resources to build out its own Nutraceutical manufacturing adjacent to Azema's CBD operations, providing significant efficiencies to its logistics and warehousing of product.
"Integrating our operations tightly with Azema's makes sense, as it will provide EastWest USA with many benefits, such as flexibility of raw material supply and direct shipping to retail wholesale distributors. While also ensuring a stable source of CBD material necessary for EastWest USA's expected rapid expansion." states Rodney Gelineau, CEO of EastWest Bioscience.
With operations based in Lebanon, Kentucky, Azema Sciences is situated in the heart of Kentucky's Hemp country, with an estimated 80% of the state's CBD Hemp farming within 100 miles of the facility. Kentucky's licensed Hemp production grew to more than 42,000 open air acres and around 66 greenhouse acres in 2019. This growth is due mainly to strong commercial support from the Kentucky Department of Agriculture, being one of the first states to embrace pilot hemp programs allowing tobacco farmers to transition to hemp, and the direct political support of state legislators, Senate Majority Leader Mitch McConnell who introduced the hemp Farming Act of 2018 that was contained within the 2018 Farm Bill.
EastWest is focused and actively working on consumer products in anticipation of widespread approval of CBD product availability to exploit its extensive catalogue of products for formulation with CBD where it is beneficial. The partnership with Azema will ensure that EastWest will have an ongoing supply of CBD to fulfill its manufacturing requirements for the US market.
"Partnering with Azema Sciences will provide EastWest a significant opportunity to take its data from its Canadian health food customers and allow Eastwest the unique and early opportunity to take the benefits from CBD and integrate it in unique products," continues Gelineau, "Partnering with a manufacturer of CBD in the heart of Kentucky Hemp country is a major step toward achieving our fully integrated target in the US, and vital to delivering our four lines of consumer products: nutraceuticals, pet products, functional foods and health and beauty products to the biggest CBD market in the world."
About EastWest Bioscience Group
EastWest Bioscience is a vertically integrated wellness company with the infrastructure to become a global giant in the Hemp & CBD consumer health market. Since it was founded in 2016, EastWest continues to grow as a high-quality producer, manufacturer and distributor of multiple lines of premium health and hemp products. EastWest currently has more than 200+ NPN's in its stable of products.
EastWest's consumer product lines are divided into four distinct brands: 1) Natural Advancement - natural biopharmaceutical health supplements; 2) Earth's Menu - all-natural hemp superfoods; 3) Natural Pet Science - pet food and pet supplements; and 4) ChanvreHemp - all-natural health and beauty products.
In Canada, EastWest has a 34,000 Sq. Ft, Health Canada-licensed, GMP (Good Manufacturing Practices) - certified manufacturing facility and produces premium nutraceutical brands, offering natural products for a preventive care lifestyle. EastWest and Benchmark Botanicals (BBT-CSE) also have a Joint Venture Intent to accelerate acquisition of Processor, Analytical and Research and Development licenses under the Cannabis Act in EastWest's Penticton facility. These three classes of the Cannabis Act license will allow Benchmark and EastWest to build out an extensive extraction, laboratory, and research facility at EastWest's Health Canada Certified facility.
In the USA, EastWest USA has a Joint Venture with Azema Sciences, securing for EastWest first rights on Azema's output of bulk CBD and finished CBD products manufactured, and which are ready for sale in the USA and globally. EastWest Science USA ("EastWest USA"), EastWest's US operating division, will be the preferred distributor for Azema's finished goods. These finished products will include CBD creams, tinctures and salves which are products not currently in EastWest's catalogue. Additionally, EastWest will have first right of refusal to all potential opportunities relating to Azema's Kentucky based CBD processing facility. EastWest currently has TSX Approval for sale of its consumer products in 21 US States.
EastWest's international expansion continues with reach into important key markets in New Zealand, Australia, and Asia through a distributor agreement with New Zealand Hemp Brokers. Headquartered in Rotorua, New Zealand, NZ Hemp Brokers have quickly grown to become one of the country's most trusted industrial hemp wholesalers, and New Zealand's only import/export broker specialising in hemp products. NZ Hemp Brokers is licensed by the NZ Ministry of Health to grow, trade in and process industrial hemp, are registered brokers and certified in hemp medicine by the NZ Hemp Foundation.
About Azema Sciences
Azema Sciences is a Canadian company specifically formed as a manufacturer of CBD with operational headquarters in Lebanon, Kentucky, USA. Specializing in the manufacture of bulk CBD and CBD infused consumer goods, Azema has the resources, location and access to premium grade Hemp to produce premium grade derivatives. Aligned with Kentucky Hemp farmers and licensed by the Kentucky Department of Agriculture as a Hemp Processor, Azema is strategically positioned to feed the growing demand for CBD and other Hemp derivatives.
ON BEHALF OF THE BOARD OF DIRECTORSEASTWEST BIOSCIENCE GROUP
"Rodney Gelineau"Co-Founder, Chief Executive Officer and Director
TSXV - Symbol: EAST
Company Website:www.eastwestbioscience.com.Contact: Nicholas Vincent - Investor Relations on 1-800-409-1930 orinvestors@eastwestscience.com.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the terms and conditions of the Acquisition. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; and delay or failure to receive board, shareholder or regulatory approvals. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE:EastWest Bioscience Group
View source version on accesswire.com:https://www.accesswire.com/549314/EastWest-Bioscience-Signs-Definitive-Joint-Venture-Agreement-with-Azema-Sciences-US-Expansion-Story-Continues |
Spyder Cannabis Announces Plans to Enter US Hemp Derived Market Through Rollout of Boutique Retail and Kiosk Stores
Phase 1 of US rollout plan includes store locations in 4 states; Stores will include SPDR branded products
Vaughan, Ontario--(Newsfile Corp. - June 20, 2019) - Spyder Cannabis Inc. (TSXV: SPDR) ("Spyder"), an established Ontario retail operator, announces plans to enter the U.S. market through an initial roll out of hemp derived boutique retail and kiosk locations over the next 12-18 months.
Spyder has begun partnering with a variety of developers and realtors to sign lease agreements for prime real estate that is strategically located in high traffic areas of malls, and near senior living centres and sporting venues throughout the United States. Spyder intends to initially target Florida, California, New York and Michigan. These boutiques will stock Spyder's SPDR(R)branded hemp derived, and infused products developed for an aging, health and wellness demographic. Spyder will offer a wide array of hemp product offerings including; hemp -infused muscle balm, face oil, body lotion and bath salts, as well as hemp tinctures, capsules and sprays.
"This move will represent the first phase in Spyder's strategic plan to develop a robust, planned network of boutique retail stores and kiosks across the US focused on the specific health and wellness aging and athletics sectors," said Dan Pelchovitz, President and CEO of Spyder Cannabis. "With an already well-established and successful retail model in Ontario, we have a strong blueprint for success that we are ready to replicate in the US."
Additional updates and details on rollout plans to follow.
About Spyder
Founded in 2014 Spyder is an established chain of three high-end vape stores in Ontario, with stores located in Woodbridge, Scarborough and Burlington. The Spyder brand is defined by its high-quality proprietary line of e-juice, liquids and exclusive retail deals, dispensed in uniquely designed stores creating the optimal customer experience. Spyder is building off this leading retail, distribution and branding eCig and vapes company and expanding into the legal cannabis and hemp derived market. Spyder has developed a scalable retail model with aggressive expansion plan to create a significant retail footprint with targeted and disciplined retail distribution strategy focusing on Canadian retail and U.S. hemp kiosks in high traffic peripheral areas.
Cautionary Statements
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.
This news release includes statements containing certain "forward-looking information" within the meaning of applicable securities laws ("forward-looking statements"). Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, this news release contains forward looking statements regarding, without limitation: Spyder's intention to sign lease agreements for prime real estate locations in the United States; the timing of Spyder's planned U.S. roll-out, both initially and overall; Spyder's proposed retail hemp operations in the United States, including its ability to secure retail locations; Spyder's ability to build, own and operate retail stores; the branding, staffing and customer experience of retail stores and kiosks; product selection; and the growth of a retail business in the United States and Spyder's anticipated market share thereof.
These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made. Any number of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements including, but not limited to: the ability of the parties to receive and maintain, in a timely manner, the required government, regulatory and other third party approvals required to participate in the hemp retail market in the United States; the availability of appropriate retail locations in the identified areas; the timing and opening of retail locations; the assets and employees of Spyder; the availability of retail hemp products; changes to hemp laws; and changes in general market conditions.
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
For more information, please contact:
Spyder Cannabis Inc.Dan PelchovitzPresident & Chief Executive OfficerTelephone: (905) 265-8273Email:dan@spydervapes.com
Bullseye CorporateCrystal QuastBullseye Corporatequast@bullseyecorporate.com
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45747 |
What to Do With an Inheritance
Congratulations, you've received aninheritance! But you don't know what to do next or how to use it to reach your financial goals. Should you park the lump sum in real estate -- or an emergency fund? Invest in stocks or seek a high-interest bank account? Will you face estate taxes? It's important to learn about your options for an inheritance and to figure out how to best deploy those dollars.
Failing to do so could cost you dearly. According to one study, about a third of those who receive an inheritance end up in the red after just two years.
Image source: Getty Images.
First, do... nothing. Don't do anything with the money. Give yourself a little time to get used to having it, while you research your options and decide how best to proceed. Otherwise, you may do what lots of heirs do: Get excited and spend a big chunk of it quickly, often ending up with little to show for it.
Instead, perhaps park that money somewhere safe, such as in a short-term certificate of deposit (CD), a savings account, or a money market account. Think twice before making any sudden moves, such as switching to a new financial advisor or hiring a contractor to finish your basement. Youcanenjoy some or even all of your windfall, but you should have a thoughtful plan in place first.
When exploring your options, a great place to start is with your financial goals. If you didn't have goals before, you need them now. Here are some common ones:
• Paying off debt:If you're saddled with high-interest rate debt, paying it off should be a priority.
• An emergency fund:You should have one, stocked with enough money to support you for three to nine months.
• Down payment for a home:You may be hoping to buy a home in the coming years.
• Retirement savings:You'll likely need a big war chest to help support you for many years.
• College savings:You may need to save a $100,000 (or much more) in order to help your kid(s) through college.
• Other goals:You may want to save up for a fancy vacation, an addition to your home, a new car, a boat, or any of a number of things.
Think about whatyourgoals are, and rank them by priority. Receiving an inheritance puts you in a terrific position to be able to make progress toward one or more of them, and perhaps even fully achieve one or more. If you don't have a good financial advisor to help you, consider hiring afee-only one-- or at least consulting one.
Property can be passed on from one party to another in several ways. You might inherit property through someone's will bequeathing it to you, or you might receive it via intestate laws that govern what happens to someone's estate if he or she dies without a will. You can also end up with a windfall if someone has named you as a beneficiary for a financial account or insurance policy, or through a trust.
Here are some terms you may need to know that relate to inheritances:
• Beneficiary:A party that will inherit property or funds, having been designated to do so in a legal document (such as a will or trust) or financial account.
• Estate tax:On the federal level,the estate taxis a tax on large estates that only affects a very small number of people. Some states have their own estate taxes.
• Executor:Sometimes called a "personal representative," an executor is someone named in a will and/or appointed by a probate court to carry out the wishes of someone who has died. He or she will typically manage a bunch of paperwork, closing out accounts, paying creditors, ensuring that assets are distributed as directed, and so on.
• Grantor:This is the person who has established a trust.
• Heir: An heir, strictly speaking, is someone who inherits property if there is no valid will. These days, the word is often used to describe someone inheriting property through a will -- but the proper term in that scenario is beneficiary.
• Inheritance tax:Whereas an estate tax taxes the actual estate, an inheritance tax is levied on those who inherit property. There's no federal inheritance tax, though, and few states have one, either.
• Real vs. personal property:Real property refers to real estate, and personal property is just about any other kind of asset that one might inherit.
Image source: Getty Images.
Inheritances come in many forms, but here are some of the most common kinds.
If you inherit cash, you probably won't face any taxes on it. If it came from a very large estate, there may be estate taxes levied, but those are paid by the estate, not the beneficiary. As of 2019, someone can leave up to $11.18 million ($22.36 million for a married couple) and not face estate or gift taxes.
If you inherit assets from a retirement account such as an IRA or a 401(k), you have several options, and you may want to consult a financial advisor before deciding just what to do.
Here are theIRA options, in a nutshell:
• You can take a lump-sum distribution of the entire account balance. Taking lump-sum withdrawals can result in taxes if they're from traditional IRAs or 401(k)s, just as withdrawals by the original account holder would be taxable -- since such accounts are funded with pre-tax dollars. Withdrawals from Roth IRAs will be tax-free as long as the account has been open at least five years. Still, it can make sense to leave the money in the account so that it can continue to grow.
• If the deceased account owner wasn't yet required to takerequired minimum distributions (RMDs)from the IRA -- RMDs enter the picture once one turns 70 1/2 -- then you can keep money in the account for up to five years after the owner's death.
• You can take minimum annual withdrawals from the IRA over the course of your lifetime, as determined by special IRS life expectancy tables.
• If you're the surviving spouse of the deceased, you can roll over the IRA into your own IRA, with regular IRA rules applying to it.
And here arethe options for an inherited 401(k):
• You can take an immediate lump-sum distribution of the entire 401(k) account balance. If it's from a traditional 401(k), the distribution can result in taxes.
• If the deceased account owner wasn't yet required to take RMDs from the 401(k) (such as if he or she died before the age of 70 1/2, you can keep money in the account for up to five years after the death.
• You can arrange for a trustee-to-trustee transfer to an inherited IRA account.
• If the original account owner hadn't started taking RMDs, you can start doing so when you turn 70 1/2. If he or shehadstarted taking them, you may be able to take them according to a schedule based onyourlifetime, not his or hers. This can mean smaller RMDs if you're younger than the original owner.
• If you're the surviving spouse, you can roll over the original owner's 401(k) into an IRA in your own name. From that point on, it will be an IRA and will follow regular IRA rules.
If you inherit a house, you have several options: You can live in it, rent it out, or sell it. There are pros and cons to each, and some tax implications, too.
• Live in it:Say goodbye to your rent or mortgage payments if you move into a home you inherited from a home you were renting or buying via a mortgage. This route can boost your monthly income if you're no longer making major housing payments, though you will be on the hook for property taxes, insurance, maintenance, repairs, and so on. If you're currently carrying a mortgage, you'll need to rent out that home or sell it, which can deliver another windfall in the form of your home equity balance. Having more income and/or a meaningful lump sum can help you make big progress toward some of your financial goals.
• Rent it out:This option will give you some helpful income every month, assuming the property stays rented. But being a landlord is not as easy as it may seem. Those rent checks aren't all gravy, as you're still responsible for property taxes, insurance, maintenance, and repairs. Plus, you have to deal with getting, keeping, and managing tenants, which isn't always easy.
• Sell it:If you sell it, you'll end up with a nice bundle of money that you can treat much like a cash inheritance.
Tax-wise, if you inherit a home that has appreciated in value since it was bought by the person who left it to you, you'll typically get to "step up" the cost basis. Here's a simplified example to show that works: Imagine that your uncle bought a home for $100,000 and it was worth $225,000 when you inherited it. If he had remained alive and sold it for $225,000, he would have a gain of $125,000, subtracting the sale price from his cost basis of $100,000. But you get to step up that basis.Yourcost basis in the house will be its value when you inherited it -- $225,000. So you could sell it soon and face little or no capital gain tax on it, or if you sell it in the future for $300,000, your basis would be just $75,000.
Remember that there's ahome sale exclusionrule in our tax laws that lets you exclude up to $250,000 of gain from taxes when you sell a home -- and that rises to $500,000 for a married couple. There are a few rules, though, such as your having had to have lived in the home for two of the past five years. You also should not have claimed the exclusion in the past two years. Keep this rule in mind as you figure out what your best move is with the home you inherited.
As you deliberate and decide what to do with your windfall, it's smart to engage the services of some professionals along the way -- especially if the inheritance is sizable. Some such folks might approach you, knowing that you've inherited assets, but it can be best to find pros on your own, seeking referrals from friends or looking up highly rated ones.
Some folks you might need include afinancial advisoror planner,a tax proor tax lawyer, a Certified Public Accountant (CPA), and/or an estate planning lawyer or professional. If you inherited real estate, you might need to deal with a good real estate agent. You might start with a good fee-only financial advisor. If you want to look up one in your area, click over to NAPFA.org.
With any of these professionals, don't expect them to just tell you what to do. Instead, they should be offering various options and coaching you on the merits or drawbacks of each, helping you decide what to do. They can also tell you what to expect from various options (such as tax implications) and how you can get certain tasks done. Ideally, identify a handful of each kind of service provider you need and thenmeet with potential financial advisorsto see which one inspires the most confidence and seems like someone you can deal with comfortably.
Now let's move on to what, exactly, you might do with your newly inherited funds. For many people, the best move is to invest much or most of the assets. After all, that's how you'll be able to achieve your financial goals. Here's a review of some top options.
A bank account is a fine place for your windfall when you first get it, but with interest rates rather low these days, leaving money in one for the long run isn't going to lead to much growth. Here's how a $100,000 investment would grow over time at 2%, which is the kind of interest rate that some savings accounts might offer, compared to a growth rate of 8%, which is what youmightaverage when invested in stocks:
[{"Time Frame": "5 years", "Growing at 2%": "$110,400", "Growing at 8%": "$146,900"}, {"Time Frame": "10 years", "Growing at 2%": "$121,900", "Growing at 8%": "$215,900"}, {"Time Frame": "15 years", "Growing at 2%": "$134,600", "Growing at 8%": "$312,200"}, {"Time Frame": "20 years", "Growing at 2%": "$148,600", "Growing at 8%": "$466,100"}, {"Time Frame": "25 years", "Growing at 2%": "$164,000", "Growing at 8%": "$684,800"}]
Calculations by author.
Of course, bank accounts are a much better choice when interest rates are high. Remember -- back in the 1980s, they were in double digits, offering more growth than you were likely to get elsewhere.
Image source: Getty Images.
If you come into a bunch of money, one way you might want to deploy it is in real estate. You might want to buy a home for yourself -- perhaps just paying off the mortgage you're currently carrying, or you might want to buy some rental property. Being a landlord isn't always easy -- or even lucrative -- but if you own the property outright, you're more likely to come out ahead with the rent payments you receive than if you had mortgage payments on the property, too.
Know that there areother ways to invest in real estate, too. For example, you might invest in real estate investment trusts (REITs), which are stock-like investments that you can easily buy into and sell out of -- unlike actual real estate, which can take longer to buy or sell. A REIT is a company that owns a lot of properties, collects payments from tenants and lessees, and pays its shareholders a dividend from its earnings. REITs often focus on a certain kind of property, such as retail, healthcare, office, and/or residential properties, among others. (There are even prison REITs.) Alternatively, you might look into mutual funds focused on real estate companies. That's a good way to spread your money across many real estate-related businesses. For example, consider theVanguard Real Estate Index Fund(VNQ), an exchange-traded fund (ETF) focused on real estate, sporting a low annual fee of 0.12%.
For most people, the best way to grow your money over the long run is via the stock market. The way to do so aiming for the best possible returns is to devote a lot of time to learning about investing and learning about various companies and industries -- and then carefully selecting the most promising stocks, holding them, ideally, for many years while keeping up with their progress. Along the way, you'll learn how to make sense of balance sheets and income statements and cash flow statements -- and how to calculate estimates of various stocks' intrinsic values.
Clearly, however, that route takes a lot of effort -- and isn't even guaranteed to get you outsized returns. Instead, you might just opt for the investment thatsuperinvestor Warren Buffetthas recommended for most folks: index funds. They're up next.
But if you want to try learning more about investing in individual stocks, here are some places to start:
• Your Definitive Dividend Investing Guide
• A Beginner's Guide to Value Investing
• How to Be a Successful Value Investor
• How to Buy Stocks: Your 10-Point Guide
It's hard to argue with just sticking much or most of your inheritance in index funds. After all, they tend to outperform most managed mutual funds, which are run by very educated professional stock analysts and money managers. Consider: According to the folks at Standard & Poor's, as of the end of 2018, 89% of all domestic stock mutual funds had underperformed the S&P 1500 Composite Index over the past 15 years, and 92% of large-cap stock funds underperformed the S&P 500.
Eachindex fundtracks a particular index, giving you the approximate return of the index, less fees, which can be kept extremely low with certain funds. Index funds exist in the form of mutual funds orETFs. TheSPDR S&P 500 ETF(NYSEMKT: SPY), for example, tracks the S&P 500 index, which is made up of 500 of America's biggest companies that together represent about 80% of the entire U.S. stock market's value. You can go even broader with theVanguard Total Stock Market ETF(NYSEMKT: VTI), which encompasses all of the U.S. stock market, including small companies, or theVanguard Total World Stock ETF(NYSEMKT: VT), delivering the world market. You can balance out your portfolio with bonds via index mutual funds and ETFs, too. TheVanguard Total Bond Market ETF(NASDAQ: BND)is an option that can fit that bill.
Index fund investing is easy and cheap, and it delivers returns that beat many more expensive alternatives.
A last option for your inherited money is probably the one you thought of first: having fun with it. That's a perfectly reasonable thing to do -- especially if you're free of high-interest debt and have a well-stocked emergency fund.
Take a look at your big picture and see how you should best allocate these dollars that you were fortunate to have received. See how many financial goals they can help you meet, and then think about how you might spend some portion on fun -- perhaps a family vacation, a new car, or a big-screen TV.
Inheritances don't come around too often, and many people never receive one at all. So be sure to make the most of yours.
More From The Motley Fool
• 10 Best Stocks to Buy Today
• The $16,728 Social Security Bonus You Cannot Afford to Miss
• 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own)
• What Is an ETF?
• 5 Recession-Proof Stocks
• How to Beat the Market
Selena Maranjianhas 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. |
Iota Retains Emerging Markets Consulting, LLC for Investor/Public Relations Services
NEW HOPE, PA / ACCESSWIRE / June 20, 2019 /Iota Communications, Inc.(OTCQB:IOTC), a wirelessnetwork carrierandsoftware servicecompany that provides Internet of Things solutions that optimize energy efficiency, sustainability and operations forcommercial facilities, is pleased to announce that Emerging Markets Consulting, LLC (EMC) has been retained to provide investor/public relations services. EMC specializes in helping small and mid-sized public companies establish brand awareness and increase market share to its customer base while improving visibility to the institutional and retail investment community.
"We are excited to gain greater exposure in the investment community as we leverage our spectrum holdings to build the first dedicated, purpose-built Internet of Things wireless network," states, Terrence DeFranco, Chief Executive Officer of Iota. "We believe that our company represents an outstanding opportunity for investors to capitalize on the explosive areas of IoT, Big Data and Digitization as we bring the benefits of a carrier grade network to a machine-to-machine communication marketplace clamoring for low-cost, reliable and ubiquitous connectivity. Our strategy is to make these unique features available to commercial customers by embedding them in a software-as-a-service application model that drives cost savings, productivity and sustainability for their operations and facilities. Also, as our network proliferates, we can scale our subscriber base by adopting more applications in other verticals, such as health care, hospitality, manufacturing and others. Our team is excited, and we look forward to communicating our progress to the Wall Street community."
James Painter, President of EMC, said, "We are pleased to represent Iota during the coming year. We have conducted our due diligence on the Company and have been very impressed with the management, market sector, and the overall business strategy. Iota is poised to benefit greatly by leveraging its wireless spectrum portfolio for end to end IoT solutions, especially in commercial real estate, an industry aspiring for more intelligent and energy efficient buildings. Additionally, the global movement toward greenhouse gas reduction and carbon neutrality should provide additional tailwinds to drive value to Iota over the coming years."
About Iota Communications, Inc.
Iota is a wireless network carrier system and software-as-a-service platform dedicated to the Internet of Things. Iota sells recurring-revenue solutions that optimize energy usage, sustainability and operations for commercial and industrial facilities both directly and via third-party relationships. Iota also offers important ancillary products and services which facilitate the adoption of its subscription-based services, including solar energy, LED lighting, and HVAC implementation services. For more information, please visit our web site atwww.iotacommunications.com.
About Emerging Markets Consulting LLC
Based in Clermont, Florida, Emerging Markets Consulting, LLC (EMC) brings over 40 years combined experience in the investor relations industry. EMC is an international investor relations firm with affiliates around the world. EMC is relationship-driven and results-oriented with the goal of seeking attractive emerging companies and concentrating its resources and efforts to serve a limited number of high-quality clients. For more information, visit EMC's website atwww.emergingmarketsllc.com.
Forward-Looking Statements
This press release may contain "forward-looking statement" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements include, but are not limited to, any statements relating to our growth strategy and product development programs and any other statements that are not historical facts. Forward-looking statements are based on management's current expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from those currently anticipated include, but are not limited to, risks related to the acquisition and integration of the assets we acquired from Solbright Group, Inc., risks related to our growth strategy; risks relating to the results of research and development activities; our ability to obtain, perform under and maintain financing and strategic agreements and relationships; uncertainties relating to preclinical and clinical testing; our dependence on third-party suppliers; our ability to attract, integrate, and retain key personnel; the early stage of products under development; our need for substantial additional funds; government regulation; patent and intellectual property matters; competition; as well as other risks described in our SEC filings. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as required by law.
Investor Contact:
Iota Communications, Inc.540 Union SquareNew Hope, PA 18938Attn: Investor Relationsinvestors@iotacommunications.com
Public Relations Contact:
Greg Lutowsky, SVP, Corporate Communicationsglutowsky@iotacommunications.com(855) 743-6478
SOURCE:Iota Communications, Inc.
View source version on accesswire.com:https://www.accesswire.com/549301/Iota-Retains-Emerging-Markets-Consulting-LLC-for-InvestorPublic-Relations-Services |
White Metal Makes New Discoveries to Extend the Far Lake Copper Zone, Northwestern Ontario and Grants Stock Options
Thunder Bay, Ontario--(Newsfile Corp. - June 20, 2019) -White Metal Resources Corp. (TSXV: WHM)("White Metal" or the "Company") is pleased to announce that it has extended the strike length of the Far Lake Copper Zone a further 100 metres to the north from the last sampling done by the Company in 2017 (see Company news release dated August 10, 2017). The Far Lake Copper Zone is located on the Company's 100% owned Far Lake Property (the "Property"), located about 75 kilometres northwest of Thunder Bay, Ontario and north of the Shebandowan Greenstone Belt.
During the 2017 exploration program, White Metal discovered a new copper-silver showing just north of Far Lake. Subsequently, the Company channel sampled outcropping in the area of the occurrence that assayed as much as 3.54% Cu over 3.0 metres, including the highest individual sample of 4.96% Cu over 1.0 metre. Mineralization is associated with a north-south trending structure within a silicified monzonite intrusive body. Prospecting in the spring of 2019 found another occurrence of copper-silver, hosted in a silicified monzonite and along the same structural corridor as the original occurrences. This new discovery extends the mineralized horizon 100 metres further north for a total strike length of approximately 400 metres. One selected grab sample taken from the occurrence assayed 5.52% Cu, 0.188 g/t Au, and 8.5 g/t Ag. The Company has applied for a trenching permit for the Property and hopes to start the next exploration program by mid-July. Note, the reader is cautioned that grab rock samples are selective by nature and may not represent the true grade or style of mineralization across the Property.
The Company also announces that it has granted 1,700,000 incentive stock options to directors, officers, employees, and consultants of the Company. All such options will have a term of five years at an exercise price of $0.10 per share and will be governed by the terms and conditions of the Company's stock option plan.
The Company also announces that, subject to regulatory approval from the TSX Venture Exchange, it will be settling $6,000 of debt by issuing 120,000 units ("Units") at $0.05 per Unit, each Unit consisting of 1 common share of the Company and 1 common share purchase warrant ("Warrant"), each Warrant being exercisable at $0.10 for a period of 24 months. All securities issued will be subject to a four-month hold period.
Technical information in this news release has been reviewed and approved by Dr. Scott Jobin-Bevans (P.Geo.), Vice President Exploration and a Director of White Metal, who is a Qualified Person under the definitions established by the National Instrument 43-101.
About White Metal Resources Corp (TSXV: WHM):
White Metal Resources Corp. is a junior exploration company exploring in Canada. For more information please visit the Company's website atwww.whitemetalres.com.
On behalf of the Board of Directors of White Metal Resources Corp.
"Michael Stares"Michael Stares, Director
For further information contact:
Michael Stares684 Squier StreetThunder Bay, Ontario, Canada, P7B 4A8Phone: (807) 628-7836 Fax: (807) 475-7200
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45746 |
Body and Mind Inc. Expands Production Capability in Nevada with New Conditional Use Permit
Vancouver, British Columbia--(Newsfile Corp. - June 20, 2019) - Body and Mind Inc. (CSE: BAMM) (OTC Pink: BMMJ) (the "Company" or "BaM" ), a multi-state operator in California, Nevada, Ohio and Arkansas, today announced receipt of a conditional use permit from Clark County, Nevada for a new production facility located within one mile of the Pepper Lane cultivation facility. The new facility will be located within an existing commercial building where the Company has secured a long-term lease. Architect plans are complete, and the space has been custom designed to produce edibles, oils and extracts at scale. The Company estimates the new facility to be approximately 7,500 square feet with construction expected to commence in the next 30 to 45 days. "We appreciate the support of Clark County and we are looking forward to significant expansion of all aspects of our production. The new facility plans include high-volume extraction equipment to dramatically increase capacity and efficiency of our extraction products including oils, wax, live resin and ambrosia," stated Robert Hasman, President of Nevada Medical Group LLC and board member of Body and Mind. "We currently have strong demand for our edible brands and new mechanization equipment and space planning is anticipated to enable us to meet the increased interest for our current and future products. We estimate the potential to increase production of edibles five-fold while reducing unit costs by 40%." The Company is currently testing new edible, oil and extraction products that upon successful testing will be manufactured at the new facility and marketed under the Body and Mind marquis life-style brand. The new production facility is anticipated to be operational within 90 days pending license transfer approvals from local and state authorities. The Company plans to move the current production licence and will not need to apply for a new license. Story continues Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release. For further information, please contact: Michael Mills Tel: 800-361-6312 mmills@bamcannabis.com About Body and Mind BaM is a well capitalized publicly traded company investing in high quality medical and recreational cannabis cultivation, production and retail. Body and Mind has a strategic investment by Australis Capital Inc. Our wholly owned Nevada subsidiary was awarded one of the first medical marijuana cultivation licences and holds cultivation and production licenses. BaM products include dried flower, edibles, topicals, extracts as well as GPEN Gio cartridges and Lucid Mood offerings. BaM cannabis strains have won numerous awards including the 2019 Las Vegas Weekly Bud Bracket, Las Vegas Hempfest Cup 2016, High Times Top Ten, the NorCal Secret Cup and the Emerald Cup. BaM continues to expand operations in Nevada, California, Arkansas and Ohio and is dedicated to increasing shareholder value by focusing time and resources on improving operational efficiencies, facility expansions, state licensing opportunities as well as mergers and acquisitions. Please visit www.bamcannabis.com for more information. Safe Harbor Statement Except for the statements of historical fact contained herein, the information presented in this news release constitutes "forward-looking statements" as such term is used in applicable United States and Canadian laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any other statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans, "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the actual results of activities, variations in the underlying assumptions associated with the estimation of activities, the availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares, accidents, labor disputes and other risks. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release and in any document referred to in this news release. Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company may constitute forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond the Company's ability to control or predict. Important factors that may cause actual results to differ materially and that could impact the Company and the statements contained in this news release can be found in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities. Corporate Logo To view the source version of this press release, please visit https://www.newsfilecorp.com/release/45755 |
Hancock Jaffe Hires Brian Roselauf as Director of Research and Development
IRVINE, CA / ACCESSWIRE / June 20, 2019/Hancock Jaffe Laboratories, Inc. (NASDAQ: HJLI, HJLIW), a developer of medical devices that restore cardiac and vascular health, today announced that Brian Roselauf will be joining the company as its Director of Research and Development. Mr. Roselauf will join Hancock Jaffe on June 24, 2019, and will initially focus on design verification and validation activities to prepare for the filing of the Investigational Device Exemption ("IDE") application for the U.S. pivotal trial for HJLI's VenoValve.
Brian Roselauf brings 16 years of engineering product development experience and a track record of bringing concepts to commercialization within large publicly traded companies as well as startups. He also has an extensive background in developing implantable prosthetic devices through his professional experiences with Edwards Lifesciences, Arbor Surgical Technologies, Endologix, CardiAQ, and HighLife Medical. Notably, Mr. Roselauf worked with Covidien Neurovascular which was purchased by Medtronic for $43 billion, CardiAQ, which was later purchased by Edwards Lifesciences for $400 million, and HighLife Medical, which recently received $36 million in Series B funding. He has also held research and development positions at Applied Medical, a privately held medical device company in Rancho Santa Margarita, CA and whose products are sold in 75 countries, as well as Nasdaq listed Endologix, Inc. of Irvine, California. Brian's breadth in a multitude of engineering disciplines and expertise in project management will also drive technology and intellectual property development at HJLI.
Robert Berman, Hancock Jaffe's CEO, stated, "Brian understands both our short-term and long- term objectives, and has experience helping other companies achieve similar goals. His background and experience will be extremely helpful as we prepare the VenoValve for the U.S. pivotal trial, advance the CoreoGraft along the regulatory approval process, and seek strategic partnerships for both of our co-lead products."
"I was recently introduced to Hancock Jaffe and was amazed at the enormous potential for their two lead products" said Brian Roselauf, HJLI's new Director of Research and Development. "I really wasn't looking for a new position, but the opportunity at Hancock Jaffe was so compelling and such a good fit for me, I immediately knew that I wanted to be a part of the company."
Mr. Roselauf has an MBA from UCLA's Anderson School of Business, an M.S. is Mechanical Engineering form California State Polytechnic University, and a B.S. in Bioengineering from the University of California, San Diego.
The VenoValve is a bioprosthetic replacement for damaged native valves in the deep veins of the leg. Hancock Jaffe recently announced positive initial data from its first-in-human, VenoValve study in Bogota, Colombia. Four out of the first five VenoValve recipients have experienced significant reductions in reflux, the main cause of severe chronic venous insufficiency ("CVI") of the deep vein system. Deep venous CVI afflicts approximately 2.6 million people in the U.S. and there are currently effective treatments for the disease. Hancock Jaffe's second lead product, the CoreoGraft, is a bioprosthetic graft for heart bypass surgeries. The CoreoGraft is currently undergoing an animal feasibility study and initial forty-five day results from the study are expected to be released at the end of this month.
About Hancock Jaffe Laboratories, Inc.
HJLI specializes in developing and manufacturing bioprosthetic (tissue based) medical devices to establish improved standards of care for treating cardiac and vascular diseases. HJLI currently has two lead product candidates: the VenoValve®, a porcine based valve which is intended to be surgically implanted in the deep venous system of the leg to treat reflux associated with Chronic Venous Insufficiency; and the CoreoGraft®, a bovine tissue based off the shelf conduit intended to be used for coronary artery bypass surgery. For more information, please visitHancockJaffe.com.
Cautionary Note on Forward-Looking Statements
This press release and any statements of stockholders, directors, employees, representatives and partners of Hancock Jaffe Laboratories, Inc. (the "Company") related thereto contain, or may contain, among other things, certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve significant risks and uncertainties. Such statements may include, without limitation, statements identified by words such as "projects," "may," "will," "could," "would," "should," "believes," "expects," "anticipates," "estimates," "intends," "plans," "potential" or similar expressions. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties, including those detailed in the Company's filings with the Securities and Exchange Commission. Actual results (including, without limitation, with respect to our first-in-human VenoValve study) may differ significantly from those set forth or implied in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company's control). The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future presentations or otherwise, except as required by applicable law.
HJLI Press Contacts:
Amy CarmerTel: 949-261-2900Email:ACarmer@HancockJaffe.com
Media & Investor Relations Contact:
MZ North AmericaChris TysonManaging Director(949) 491-8235HJLI@mzgroup.uswww.mzgroup.us
SOURCE:Hancock Jaffe Laboratories, Inc.
View source version on accesswire.com:https://www.accesswire.com/549320/Hancock-Jaffe-Hires-Brian-Roselauf-as-Director-of-Research-and-Development |
Is Universal Technical Institute, Inc.'s (NYSE:UTI) CEO Salary Justified?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
In 2003 Kim McWaters was appointed CEO of Universal Technical Institute, Inc. (NYSE:UTI). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Universal Technical Institute
Our data indicates that Universal Technical Institute, Inc. is worth US$86m, and total annual CEO compensation is US$1.3m. (This is based on the year to September 2018). While we always look at total compensation first, we note that the salary component is less, at US$738k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$452k.
It would therefore appear that Universal Technical Institute, Inc. pays Kim McWaters more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Universal Technical Institute has changed over time.
Universal Technical Institute, Inc. has increased its earnings per share (EPS) by an average of 14% a year, over the last three years (using a line of best fit). In the last year, its revenue changed by just 0.2%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested inthisfreevisualization of analyst forecasts.
Universal Technical Institute, Inc. has generated a total shareholder return of 21% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We compared total CEO remuneration at Universal Technical Institute, Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. Looking at the same time period, we think that the shareholder returns are respectable. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. Shareholders may want tocheck for free if Universal Technical Institute insiders are buying or selling shares.
Important note:Universal Technical Institute may not be the best stock to buy. You might find somethingbetterinthis list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Investors Who Bought Approach Resources (NASDAQ:AREX) Shares Five Years Ago Are Now Down 99%
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
This week we saw theApproach Resources, Inc.(NASDAQ:AREX) share price climb by 18%. But will that repair the damage for the weary investors who have owned this stock as it declined over half a decade? Probably not. Like a ship taking on water, the share price has sunk 99% in that time. While the recent increase might be a green shoot, we're certainly hesitant to rejoice. The important question is if the business itself justifies a higher share price in the long term.
We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don't have to lose the lesson.
See our latest analysis for Approach Resources
Approach Resources isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Over half a decade Approach Resources reduced its trailing twelve month revenue by 21% for each year. That's definitely a weaker result than most pre-profit companies report. So it's not altogether surprising to see the share price down 59% per year in the same time period. We don't think this is a particularly promising picture. Ironically, that behavior could create an opportunity for the contrarian investor - but only if there are good reasons to predict a brighter future.
The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values).
Take a more thorough look at Approach Resources's financial health with thisfreereport on its balance sheet.
While the broader market gained around 5.0% in the last year, Approach Resources shareholders lost 89%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 59% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. If you would like to research Approach Resources in more detail then you might want totake a look at whether insiders have been buying or selling shares in the company.
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 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. |
BDS Analytics, Arcview Project $40B In Global Cannabis Spending By 2024
Arcview Market Research andBDS Analyticshave published the seventh edition of their "State of Legal Cannabis Markets" report.
In regulated markets, U.S. cannabis sales surged by 20% in 2018 and are on track to jump by another 36% this year, the report said.
$40B In Sales By 2024
The growth of the global cannabis market comes on the back of liberalization in existing markets and new countries introducing laws legalizing medical use.
BDS Analytics and Arcview said countries like Luxembourg, Mexico and New Zealand are at the forefront of legalization, alongside South Korea and Thailand, both of which recently approved medical cannabis.
African countries like Lesotho, South Africa and Zimbabwe also have cannabis development programs.
These countries and others will bring spending outside North America to $5.8 billion by 2024, up from $517 million last year, BDS and Arcview said.
Need more cannabis news?Check out all of our coveragehere.
US Leads The Way
The U.S. remains to be the leader in terms of cannabis market size.
The U.S. cannabinoid market is expected to soar, helped by a number of developments, such as the legalization of hemp via the 2018 Farm Bill.
The "State of Legal Cannabis Markets" report estimates that the total cannabinoid market in the U.S. — which includes hemp-derived CBD — will reach $44.8 billion by 2024.
The largest share of this market will be allocated to dispensaries that should be present in all states and U.S. territories by that time, BDS and Arcview said. It is followed in size by sales of CBD in both retail brick-and-mortar and online settings.
Pharmaceuticals will get the smallest share, even though companies are spending heavily on developing new cannabinoid-based drugs following the approval of CBD-based Epidiolex fromGW Pharmaceuticals plc(NASDAQ:GWPH).
The growth in the U.S. markets will be boosted by more states legalizing cannabis, despite the federal illegality of the plant, the report said.
The Strengthening the Tenth Amendment Through Entrusting States (STATES) Act would allow companies to operate more freely in legal states, while the SAFE Banking Act would allow banks to accept money from state-legal businesses.
More Money, More Volatility
The legalization of cannabis in more U.S. states, as well as full legalization in Canada last year, paved the way for more companies to be able to raise more money from investors.
Cannabis companies raised $14 billion last year, which was more than twice the aggregate amount raised between 2014 and 2017, according to Viridian Capital Advisors.
At the same time, more companies went public, which attracted more investors, but also increased the volatility.
A number of Canadian cannabis LPs, such asCronos Group Inc(NASDAQ:CRON) andTilray Inc(NASDAQ:TLRY), listed their shares on NASDAQ in 2018.
Companies in the U.S. went north and sought a listing on Canadian markets, led byMedmen Enterprises Inc(OTC:MMNFF), which listed its stock on the Canadian Securities Exchange in May.
Overall, there are around 30 U.S. cannabis companies traded on Canadian exchanges, accoding to New Cannabis Ventures.
Cannabis stocks also experienced a lot of volatility last year. NCV's Global Cannabis Stock Index lost 54.9% last year, even though it hit a multiyear peak in early 2018 following the legalization of adult-use weed in California.
Volatility aside, investors should keep in mind that cannabis companies are no longer penny stocks, but are traded on major exchanges and are subject to stricter regulations and more transparency.
At the same time, these companies are investing their funds into more assets; expanding their cultivation, processing, R&D and retail operations; and diversifying into new segments.
What's Next
Over the next few years, BDS Analytics and Arcview suggest there will be an increased pace of innovation in all segments of the cannabinoid market.
The U.S. and other countries are exploring ways to facilitate interstate and international commerce and export and public consumption of cannabis. While CBD is gaining popularity in the U.S., other countries are keeping an eye on the Food and Drug Administration and how it plans to regulate CBD products.
Related Links:
Baking Consumer Basket Trends To Improve Cannabis Sales
Study Says Canadian Cannabis Market Could Reach .2B By 2024: 4 Provinces To Watch
See more from Benzinga
• Innovative Industrial Properties Expands Lease Agreement In Michigan With Green Peak Innovations
• Russian Parliament OKs Cannabis, Psychotropic Cultivation For Pharmaceutical Reasons
• Canopy Growth, CURE Pharmaceutical To Work Together On CBD Oral Thin Films
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
CCTV shows brutal crowbar attack that left man in four-day coma
A man who suffered ‘life changing’ injuries after being viciously attacked by three burglars has spoken of his ordeal. Andy Thorne, 42, was ambushed by three men, hit with a crowbar and pushed into the back of a van on Stockshill Road, Scunthorpe, at around 8pm on June 17. The assault left Mr Thorne in a coma and resulted in his losing sight in his right eye and several scars across his head. Humberside Police are looking to question three men caught on CCTV footage (HUMBERSIDE POLICE) Mr Thorne spoke of how the attack changed his life, telling Grimsby Telegraph: "As soon as I woke up, I remembered it all so clearly. “The doctors were amazed that I was awake and that I was functioning as normal. "In that sense I am definitely lucky, as they thought I'd be in a wheelchair at the very least. (HUMBERSIDE POLICE) "But losing my eyesight was huge to me, that put me down. "I had no idea what anxiety and depression was before this. When people had spoken to me about it before, I would just say something like 'take a few days off work and relax' - I now realise it's so much more than that.” Police arrested four men, who have been released pending further investigation. Read more on Yahoo News UK: 'Neo-nazis' paint swastikas on walls of Jersey occupation bunker Mother lay dead in airing cupboard for 15 months 'unnoticed' Teen suffers shattered jaw after vape pen explodes in his mouth Two other men were also arrested in connection with the incident but were released without charge. (HUMBERSIDE POLICE) On Wednesday, Humberside Police launched a fresh appeal for information. Detective Inspector Kerry Bull of Humberside Police said: "This was a particularly nasty assault and while these kind of incidents are rare, we know the impact it they can have on victims and the wider community, which is why we are determined to do all we can to find those responsible. "We have already made six arrests and it remains very much an active investigation. The man was viciously beaten by three men on Stockshill Road, Scunthorpe, at around 8pm on Monday evening (GOOGLE MAPS) "Through our enquiries so far, we believe that those involved in the incident may have links to both the Lincoln area and potentially to Devon and Cornwall and we're hopeful that by releasing the CCTV of the attack, we may reach people who have not previously seen our appeals. "Someone out there knows who these men are and I want to appeal for those people who do to get in touch." Anyone with information is urged to contact Humberside Police on 101, quoting incident number 16/43406/18 or anonymously through Crimestoppers on 0800 555111. |
Is Marriott Vacations Worldwide Corporation's (NYSE:VAC) Balance Sheet Strong Enough To Weather A Storm?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Stocks with market capitalization between $2B and $10B, such as Marriott Vacations Worldwide Corporation (NYSE:VAC) with a size of US$4.3b, do not attract as much attention from the investing community as do the small-caps and large-caps. However, generally ignored mid-caps have historically delivered better risk-adjusted returns than the two other categories of stocks. Let’s take a look at VAC’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look furtherinto VAC here.
See our latest analysis for Marriott Vacations Worldwide
VAC's debt levels surged from US$1.0b to US$4.0b over the last 12 months – this includes long-term debt. With this increase in debt, VAC currently has US$222m remaining in cash and short-term investments , ready to be used for running the business. On top of this, VAC has generated US$102m in operating cash flow over the same time period, resulting in an operating cash to total debt ratio of 2.5%, signalling that VAC’s operating cash is less than its debt.
At the current liabilities level of US$1.0b, the company has been able to meet these commitments with a current assets level of US$3.8b, leading to a 3.82x current account ratio. The current ratio is the number you get when you divide current assets by current liabilities. Having said that, many consider a ratio above 3x to be high, although this is not necessarily a bad thing.
With total debt exceeding equity, VAC is considered a highly levered company. This is not unusual for mid-caps as debt tends to be a cheaper and faster source of funding for some businesses. We can test if VAC’s debt levels are sustainable by measuring interest payments against earnings of a company. Ideally, earnings before interest and tax (EBIT) should cover net interest by at least three times. For VAC, the ratio of 4.5x suggests that interest is appropriately covered, which means that lenders may be inclined to lend more money to the company, as it is seen as safe in terms of payback.
VAC’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow. Since there is also no concerns around VAC's liquidity needs, this may be its optimal capital structure for the time being. I admit this is a fairly basic analysis for VAC's financial health. Other important fundamentals need to be considered alongside. I recommend you continue to research Marriott Vacations Worldwide to get a better picture of the mid-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for VAC’s future growth? Take a look at ourfree research report of analyst consensusfor VAC’s outlook.
2. Valuation: What is VAC 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 VAC 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. |
U.S. current account shrinks in first quarter on weak imports
WASHINGTON (Reuters) - The U.S. current account deficit narrowed sharply in the first quarter as imports of goods declined, while U.S. companies continued to repatriate foreign earnings following the overhaul of the tax code in 2018.
The Commerce Department said on Thursday the current account deficit, which measures the flow of goods, services and investments into and out of the country, fell 9.4% to $130.4 billion.
Data for the fourth quarter was revised to show the deficit widening to $143.9 billion, instead of the previously reported $134.4 billion. The government revised current account data from 2016 through the fourth quarter of 2018.
Economists polled by Reuters had forecast the current account deficit shrinking to $124.6 billion in the first quarter. The current account gap represented 2.5% of gross domestic product in the January-March quarter, down from 2.8% in the fourth quarter.
The deficit on the current account has shrunk from a peak of 6.2 percent of GDP in the fourth quarter of 2005, in part because of a significant increase in the volume of oil exports.
In the first quarter, exports of goods rose 0.6% to $419.3 billion, while imports dropped 2.1% to $635.9 billion.
The flow of foreign profits repatriated by U.S. companies slowed to $100.2 billion in the first quarter from an upwardly revised $146.6 billion in the prior period, reflecting a waning boost from the corporate tax overhaul in January 2018.
That was still well above pre-tax cut levels, which were typically in the $30-$40 billion range. Earnings were previously reported to have increased by $85.9 billion in the fourth quarter. Earnings repatriation peaked at $294.7 billion in the first quarter of last year.
(Reporting by Lucia Mutikani Editing by Paul Simao) |
Estimating The Fair Value Of Evoqua Water Technologies Corp. (NYSE:AQUA)
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
How far off is Evoqua Water Technologies Corp. (NYSE:AQUA) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to their present value. This is done using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.
We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model.
Check out our latest analysis for Evoqua Water Technologies
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars:
[{"": "Levered FCF ($, Millions)", "2019": "$25.73", "2020": "$77.40", "2021": "$93.45", "2022": "$115.10", "2023": "$132.78", "2024": "$148.15", "2025": "$161.36", "2026": "$172.76", "2027": "$182.72", "2028": "$191.58"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x3", "2020": "Analyst x4", "2021": "Analyst x2", "2022": "Analyst x1", "2023": "Est @ 15.36%", "2024": "Est @ 11.57%", "2025": "Est @ 8.92%", "2026": "Est @ 7.06%", "2027": "Est @ 5.76%", "2028": "Est @ 4.85%"}, {"": "Present Value ($, Millions) Discounted @ 11.13%", "2019": "$23.16", "2020": "$62.67", "2021": "$68.09", "2022": "$75.46", "2023": "$78.34", "2024": "$78.65", "2025": "$77.08", "2026": "$74.26", "2027": "$70.67", "2028": "$66.68"}]
Present Value of 10-year Cash Flow (PVCF)= $675.07m
"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 11.1%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$192m × (1 + 2.7%) ÷ (11.1% – 2.7%) = US$2.3b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$2.3b ÷ ( 1 + 11.1%)10= $815.42m
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 $1.49b. To get the intrinsic value per share, we divide this by the total number of shares outstanding.This results in an intrinsic value estimate of $13.05. Compared to the current share price of $13.22, the company appears around fair value 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. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Evoqua Water 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 11.1%, which is based on a levered beta of 1.41. 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 Evoqua Water Technologies, There are three pertinent factors you should further examine:
1. Financial Health: Does AQUA 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 AQUA'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 AQUA? 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. |
Should I Pay Off a Personal Loan Before Applying for a Mortgage?
Paying off personal loans and borrowing for your home are great financial goals. But which should you prioritize?
Image source: Getty Images
For many people, their mortgage loan is the biggest debt they take on. Because a mortgage loan is such a big loan -- and is paid off over such a long period of time -- it’s important you qualify for the very bestmortgage ratesyou can get.
To get a lower interest rate on your mortgage, you’ll want to do everything you can to be the ideal borrower. This means having agreat credit scoreand otherwise excelling inthe metrics lenders look atwhen they decide whether to give you financing and at what rate.
When you’re looking for ways to become a more qualified borrower, you may find yourself wondering if it makes sense to pay off an outstandingpersonal loanbefore you apply for a mortgage. Unfortunately, there’s no one right answer to this question -- but here are a few things to consider to help you decide.
There are a few big reasons why it makes a lot of sense to pay off a personal loan prior to applying for a mortgage:
Paying off the personal loan can improve your debt-to-income ratio.
Your debt-to-income ratio is the amount of debt you have, relative to income. If your total debt payments, including your mortgage and other loan costs, add up to $1,200 monthly and you have a $4,000 monthly income, your debt-to-income (DTI) ratio is $1,200/$4,000 or 30%.
Most mortgage lenders won’t give you a loan if your debt-to-income ratio exceeds43%at the most. Many lenders require an even lower debt-to-income ratio to qualify -- but even if it’s not required, a lower DTI is looked upon more favorably and can help you qualify for a mortgage loan at a better rate.
You’ll have one less debt payment after you become a homeowner.
Becoming a homeowner comes with a whole host of new expenses, from buying furniture to paying for someone to mow your lawn (or for the equipment and gas to mow it yourself). You’ll also have property taxes, utility bills, home repair costs, and HOA fees -- depending on where you live.
When you have all these expenses, you don’t want to owe a lot of money to creditors on top of paying your regular monthly bills. If you pay off your personal loan, you’ll free up cash you can put towards an emergency or home repair fund or can use to cover other costs of homeownership.
Of course, there are also some reasons why you might not want to pay off a personal loan prior to the time you apply for a mortgage. It’s important to carefully consider these issues, as paying off a personal loan could potentially make itharderto get a good deal on a home in some circumstances.
Paying off a personal loan won’t necessarily improve your credit.
Paying off credit card debt reduces your credit utilization ratio, or the amount of credit used relative to credit available. This improves your credit score.
But repaying personal loans early doesn’t necessarily cause your score to improve. If you’re paying your personal loan on time each month, having a mix of different credit on your credit report can actually help boost your score.
You could deplete your down payment fund or cash reserves.
It’s a good idea to put down at least 20% on a home. While many lenders allow you to put down less, you will likely have to pay Private Mortgage Insurance (PMI) if your down payment is smaller than 20% of the home’s value. PMI could cost around .5% to 1% of your loan’s value annually, so it can be quite expensive.
A higher down payment can also help you get a mortgage at a better rate and can reduce your chances of ending up owing more than the home is worth, which causes a whole host of problems including making it very hard to sell your house.
If you use a bunch of money to pay off your personal loan early, you’ll deplete the money you have for a down payment and may end up having to put down less. This makes it harder to qualify for a mortgage and often more expensive.
Some mortgage lenders also require you to meet certain requirements for cash reserves -- such as having a few months worth of mortgage payments in the bank. Spending your cash on a personal loan could make it harder to fulfill this requirement.
Plus, of course, if you’ve spent your cash on the personal loan, you have less money for an emergency fund or other costs you may incur as a homeowner.
Personal loans usually have a relatively low interest rate.
The rate on a personal loan is usually lower than other kinds of consumer debt, such as credit card debt -- although mortgage interest rates are typically lower than personal loan rates.
It makes no sense to pay off a personal loan if you have other debt at higher rates, such as credit card debt. And, it makes no sense to pay off the personal loan if doing so could force you to borrow more on your credit cards after you close on your home to cover moving costs, home repairs or other expenses.
You could delay your home purchase.
If you decide to wait to pay off a personal loan, you could delay the purchase of your home as you work to find the money to repay your loan. As you wait, mortgage interest rates could potentially rise, making your mortgage more expensive. You also get stuck paying rent for longer and delay the time when you can begin building equity in your home.
Ultimately, you’ll need to consider the specifics of your own situation. Ifpaying off your personal loancould make it impossible for you to make a 20% down payment, make you susceptible to getting into more debt later, or delay your home purchase, it’s often not worth it.
But, if your personal loan payments are making your debt-to-income ratio too high or there’s a risk you can’t afford both your personal loans and the costs of being a homeowner, you should wait and pay off the loan first before buying a home.
The Motley Fool owns and recommends MasterCard and Visa, and recommends American Express. We’re firm believers in the Golden Rule. If we wouldn’t recommend an offer to a close family member, we wouldn’t recommend it on The Ascent either. Our number one goal is helping people find the best offers to improve their finances. That is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team. |
Telecom Stock Roundup: AT&T Wins Spectrum Licenses, Nokia's Deal & More
In the past five trading days, telecom stocks traded relatively flat for the most of the week to end in a surge, as President Trump and his Chinese counterpart showed intention to resume bilateral trade talks as early as next week. Before the state heads meet on the sidelines of the G20 summit in Osaka, Japan, high-level officials are likely to set the ball rolling to pull bilateral ties away from brinkmanship that has dragged relations to its nadir.The telecom industry has bore the brunt of the tariff war with various trade restrictions affecting the supply chain mechanism and risking the sustainability of businesses. While several U.S. firms have appealed to the government to ease the trade embargoes, the global telecom industry has showed signs of massive disruption. The story is somewhat similar on the other side as well, with China telecom sector recording slower revenue growth as it continues to feel the pinch.The trade negotiations between the two warring countries will aim to resolve these issues. In addition, experts widely view the change of stance as a possible ploy by Trump to get wind in the sail of his re-election campaign. However, he was quick to point out that the deal, if any, would be ‘fair deal’ to both the countries. China’s foreign ministry also remained optimistic about the resumption of the bilateral talks, but maintained that discussions must be on ‘equal basis’.The tense undercurrents were further amplified when China’s leading smartphone manufacturer Huawei announced that its overseas sales plunged about 40% as a fallout of the U.S. tariffs and trade sanctions by various European firms. The company aims to reduce its annual production by $30 billion over the next two years to tide over the storm. In a likely counter attack, Huawei intends to utilize its 56,492 patents on telecommunications, networking and other hi-tech inventions worldwide to gain leverage on U.S. firms and demand patent settlements to the tune of $1 billion. The technology warfare between the two nations, with Huawei at the centerstage, took a fresh turn when U.S. Senator Marco Rubio filed a legislation to prevent such an eventuality and negated the threat with the amendment to the National Defense Authorization Act.It remains to be seen how the bilateral negotiations pan out in the future and eliminate the various stumbling blocks that threaten to derail the global economy with an element of uncertainty.Regarding company-specific news, spectrum license wins, earnings, strategic deals and unveiling of growth framework primarily took the center stage over the past five trading days.Recap of the Week’s Most Important Stories1. Following the completion of the latest round of telecom spectrum auction by the Federal Communications Commission – FCC Auction 102 –AT&T Inc.T has emerged as the leading bidder among all participants. The company has reportedly won spectrum licenses that cover about 98% of the U.S. population, offering it a competitive advantage for seamless 5G deployment across the country.In particular, AT&T has won 24 GHz spectrum in 383 Partial Economic Areas for a nationwide average of 254 MHz. Bulk of the license wins were secured in the upper 500 MHz portion of the 24 GHz band, which will enable the company to command a strong nationwide coverage with solid spectrum depth and capacity in several top markets where demand is often the greatest. Notably, AT&T has won nearly 286 MHz of broadband spectrum on average in the top 10 markets. (Read more: AT&T Augments Spectrum Capacity for Extensive 5G Rollouts)2.Nokia CorporationNOK has inked an agreement with utility firm — Cleco Holdings — to modernize the latter’s microwave communications network to better serve customers. The deal is expected to improve the operational efficiency of Cleco by replacing its legacy hybrid radio equipment with Nokia’s state-of-the-art packet-based architecture. This, in turn, is likely to provide the utility firm with the scalability and flexibility to support the mission-critical communication businesses of its customers.Leveraging microwave packet radio technology and Microwave Packet Transceiver Plus platform, Nokia will offer Cleco the wherewithal to cater to the evolving demands of about 290,000 customers in Louisiana and Mississippi. At the same time, the infrastructure upgrade will provide the requisite backhaul of the digital mobile radio system that is critical to the safety of its customers and more than 1,300 employees. (Read more: Nokia to Modernize Microwave Communications Network of Cleco)3.Finisar Corporation’s FNSR fourth-quarter fiscal 2019 (ended Apr 28, 2019) revenues remained almost flat year over year but net loss narrowed. The bottom-line performance was largely driven by lower cost of sales.Non-GAAP net income for the reported quarter came in at $33 million or 27 cents per share, beating the Zacks Consensus Estimate by a penny. Quarterly revenues remained almost flat year over year at $310.1 million. The top line lagged the consensus estimate of $328 million. (Read more: Finisar Q4 Earnings Beat Estimates, Revenues Miss)4.Verizon Communications Inc.VZ has inked an agreement with the National Basketball Association (“NBA”) to augment network capabilities of all the 29 arenas that host NBA teams. The improved bandwidth connectivity through Verizon’s fiber-optic network will offer high-resolution video to fans across the world to relive the key moments of the match without compromising on finer details.Verizon will connect each arena with two diversely routed 100G fiber circuits. This is likely to result in a 10-fold increase in network bandwidth to enable seamless transmission of all the sporting actions without any interruption. The company further intends to install about 30 cameras in NBA arenas to cover the events from every possible angle. (Read more: Verizon Augments NBA Network Capabilities With Fiber Optics)5.Corning IncorporatedGLW, in its recently held meeting with investors and industry analysts, has unveiled 2020-2023 Strategy and Growth Framework. The company also discussed progress and pipeline developments across its five market-access platforms.Corning aims to deliver continual growth and create additional value for shareholders on the back of benefits from its investments, adoption of technologies aligned to key industry trends and its cohesive product portfolio. The specialty glass maker’s new long-term goals should build on the success of its 2016-2019 Strategy and Capital Allocation Framework, while capturing future organic growth opportunities. (Read more: Corning Sets 2020-2023 Strategy and Growth Framework Targets)Price PerformanceThe following table shows the price movement of some of the major telecom stocks over the past week and during the past six months.
In the past five trading days, Sprint was the biggest gainer with its share price increasing 11% while Juniper Networks was the sole decliner with its stock down 0.4%.Over the past six months, Harris Corporation has been the best performer with its stock appreciating 35.2%, while none of the stocks declined.Over the past six months, the Zacks Telecommunications Services industry has recorded an average gain of 3.1% while the S&P 500 rallied 17.2%.
What’s Next in the Telecom Space?In addition to product launches and deployment of 5G technologies, all eyes will remain glued to how the United States and China embrace the fresh round of trade negotiations and its spiraling effect on the industry.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 reportNokia Corporation (NOK) : Free Stock Analysis ReportVerizon Communications Inc. (VZ) : Free Stock Analysis ReportAT&T Inc. (T) : Free Stock Analysis ReportFinisar Corporation (FNSR) : Free Stock Analysis ReportCorning Incorporated (GLW) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
U.S. weekly jobless claims fall more than expected
WASHINGTON (Reuters) - The number of Americans filing applications for unemployment benefits fell more than expected last week, pointing to underlying market strength despite a sharp slowdown in job growth in May.
Initial claims for state unemployment benefits dropped 6,000 to a seasonally adjusted 216,000 for the week ended June 15, the Labor Department said on Thursday. Data for the prior week was unrevised.
Economists polled by Reuters had forecast claims would decrease to 220,000 in the latest week. The Labor Department said no states were estimated. The drop in claims followed three straight weekly increases.
Claims are being closely watched for signs of a rise in layoffs stemming from a recent escalation in trade tensions between the United States and China.
The trade war has increased uncertainty over the U.S. economic outlook, prompting the Federal Reserve on Wednesday to signal it could cut interest rates by as much as half a percentage point over the rest of this year. The U.S. central bank kept rates unchanged on Wednesday.
Fed Chairman Jerome Powell acknowledged the meager job gains in May and said "in light of recent developments this bears watching," but also noted that "many labor market indicators remain strong."
The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, rose 1,000 to 218,750 last week.
Last week's claims data covered the survey period for the nonfarm payrolls component of June's employment report. The four-week average of claims was little changed between the May and June survey period. Still, economists expect payrolls to pick up in June after increasing by 75,000 jobs in May.
Job growth has cooled from the brisk pace in 2018 in line with the economy, which is slowing as the stimulus from last year's massive tax cuts and increased government spending fades.
The Atlanta Fed is forecasting gross domestic product rising at a 2.0% annualized rate in the second quarter. The economy grew at a 3.1% pace in the January-March quarter, boosted by a temporary burst in exports and an accumulation of inventories.
Thursday's claims report also showed the number of people receiving benefits after an initial week of aid declined 37,000 to 1.66 million for the week ended June 8. The four-week moving average of the so-called continuing claims slipped 5,250 to 1.68 million.
(Reporting by Lucia Mutikani Editing by Paul Simao) |
If You Had Bought Vantex Resources (CVE:VAX) Stock Five Years Ago, You'd Be Sitting On A 83% Loss, Today
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
We're definitely into long term investing, but some companies are simply bad investments over any time frame. We don't wish catastrophic capital loss on anyone. Imagine if you heldVantex Resources Ltd(CVE:VAX) for half a decade as the share price tanked 83%. The falls have accelerated recently, with the share price down 32% in the last three months.
We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don't have to lose the lesson.
See our latest analysis for Vantex Resources
Vantex Resources didn't have any revenue in the last year, so it's fair to say it doesn't yet have a proven product (or at least not one people are paying for). This state of affairs suggests that venture capitalists won't provide funds on attractive terms. As a result, we think it's unlikely shareholders are paying much attention to current revenue, but rather speculating on growth in the years to come. For example, investors may be hoping that Vantex Resources finds some valuable resources, before it runs out of money.
Companies that lack both meaningful revenue and profits are usually considered 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 such companies do very well over the long term, others become hyped up by promoters before eventually falling back down to earth, and going bankrupt (or being recapitalized). It certainly is a dangerous place to invest, as Vantex Resources investors might realise.
Our data indicates that Vantex Resources had CA$998,938 more in total liabilities than it had cash, when it last reported in January 2019. That puts it in the highest risk category, according to our analysis. But since the share price has dived -30% per year, over 5 years, it looks like some investors think it's time to abandon ship, so to speak. You can click on the image below to see (in greater detail) how Vantex Resources's cash levels have changed over time.
Of course, the truth is that it is hard to value companies without much revenue or profit. What if insiders are ditching the stock hand over fist? I'd like that just about as much as I like to drink milk and fruit juice mixed together. It only takes a moment for you tocheck whether we have identified any insider sales recently.
Investors in Vantex Resources had a tough year, with a total loss of 19%, against a market gain of about 1.0%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, longer term shareholders are suffering worse, given the loss of 30% doled out over the last five years. We would want clear information suggesting the company will grow, before taking the view that the share price will stabilize. If you would like to research Vantex Resources in more detail then you might want totake a look at whether insiders have been buying or selling shares in the company.
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 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. |
Adobe (ADBE) in Focus: Stock Moves 5.2% Higher
Adobe Inc.ADBE was a big mover last session, as the company saw its shares rise more than 5% on the day. The move came on solid volume too with far more shares changing hands than in a normal session. This breaks the recent trend of the company, as the stock is now trading above the volatile price range of $259.03 to $281.82 in the past one-month time frame.The company has seen no changes when it comes to estimate revision over the past few weeks, while the Zacks Consensus Estimate for the current quarter has also remained unchanged. The recent price action is encouraging though, so make sure to keep a close watch on this firm in the near future.Adobe currently has a Zacks Rank #3 (Hold) while its Earnings ESP is 0.00%.
Adobe Inc. Price
Adobe Inc. price | Adobe Inc. Quote
Investors interested in the Computer - Software industry may consider Rosetta Stone Inc. RST, which has a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.Is ADBE going up? Or down? Predict to see what others think: Up or DownWill 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 reportRosetta Stone (RST) : Free Stock Analysis ReportAdobe Systems Incorporated (ADBE) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Motorola Deploys Managed Service to Help Victoria Police
Completing two months ahead of schedule, Motorola Solutions, Inc. MSI recently announced that it has deployed a new mobility managed service for Victoria Police in Australia. The solution hinges on facilitating greater situational awareness, safety and productivity of the agency’s frontline officers. The application allows Victoria Police to meet a major goal within its BlueConnect program — Connecting police and the community through technology. The service, valued at more than A$50 million, will be in operation for a minimum of five years with a possibility of getting extended to 11 years. In addition, Victoria Police are deploying Motorola’s high-resolution, cloud-based Automatic Number Plate Recognition technology for 220 of its highway patrol vehicles. The communications equipment maker also manages the networks that provide Victoria Police with mission-critical radio communications and narrowband data services. Motorola’s comprehensive, end-to-end managed service helps Victoria Police members to better focus on core policing activities. The service includes device management, support, repair and replacement. Police officers have been given 9,398 mobile devices equipped with smart applications. The technology delivers information to the police in the field while helping to preserve mission-critical radio communications in the hour of need. Markedly, the solution includes a mobile application developed by Gridstone — the application development firm Motorola purchased in 2016. With the rollout of this technology, Victoria Police’s frontline officers can now have access to data when they need and manage their daily tasks more efficiently. Being a leading provider of mission-critical communication products and services worldwide, Motorola has ensured a steady revenue source from this niche market. The company aims to bolster its position in the public safety domain by working together with other players in the ecosystem. It is poised to benefit from organic growth and acquisition initiatives, disciplined capital deployment, and favorable global macroeconomic environment. Motorola expects to witness strong demand across land mobile radio products, services and software. These systems drive demand for additional device sales, and promote software upgrades and infrastructure expansion. The complete suite of services ensures continuity and reduces risks related to critical communications operations. Owing to increasing market traction of Motorola’s avant-garde product offerings, the stock has rallied 44.8% compared with the industry’s rise of 19% in the year-to-date period. Story continues Motorola currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the industry include Comtech Telecommunications Corp. CMTL, Juniper Networks, Inc. JNPR and Ubiquiti Networks, Inc. UBNT. While Comtech sports a Zacks Rank #1 (Strong Buy), Juniper and Ubiquiti carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here . Comtech has long-term earnings growth expectation of 5%. Juniper has long-term earnings growth expectation of 6.2%. Ubiquiti has long-term earnings growth expectation of 19.8%. 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 report Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report Ubiquiti Networks, Inc. (UBNT) : Free Stock Analysis Report Comtech Telecommunications Corp. (CMTL) : Free Stock Analysis Report Motorola Solutions, Inc. (MSI) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research |
Harley Teams Up With Qianjiang, Eyes Expansion in China Market
In an effort to boost the company’s production outside the Unites States,Harley-Davidson, Inc.HOG recently entered into an agreement with Chinese manufacturer — Zhejiang Qianjiang Motorcycle Co. — to produce small motorcycles for global markets.Per Bloomberg and Reuters reports, the motorbike models will be sold under Harley’s brand name. Remarkably, these bikes will feature an engine displacement of 338 cubic centimeters — one of the smallest-powered engine bikes in the company’s history. In fact, Harley’s existing motorcycles sold in the United States are larger, with high price and engine capacities of more than 601 cubic centimeters.
The new 338 cc models will likely be initially rolled out in China, one of the largest motorcycle markets, by the end of next year, before being introduced to other Asian countries.Qianjiang holds expertise in premium smaller motorcycles, building a supply base with the knowledge of emerging markets. Qianjiang is a unit of Geely Holding Group, a Chinese company that owns Volvo Cars.This partnership is aimed at capturing China’s huge bike and moped market, and in sync with Qianjiang’s plan to cut costs and generate half of all sales outside the United States by 2027.Last year, Harley announced the launch of lightweight motorcycles in Asia and electric bikes globally, to revive the motorcycle demand in the United States. The company expects to unveil its first electric motorcycle without clutch and gear-shift controls later this year.Harley’s investments to broaden the product portfolio, and improve marketing and sales support are anticipated to boost revenues. Also, the acquisition of StaCyc in March has widened Harley’s customer age bracket. Furthermore, its foray into the e-commerce platform will drive merchandise sales.The company has been taking prudent expense-control measures. It is also working on manufacturing optimization, which will enable the company to restructure its cost arrangement as well as optimize the product manufacturing process during periods of declining sales. Notably, manufacturing optimization refers to the consolidation of the company’s Kansas City, MO assembly plant into its York, PA plant. This initiative is estimated to raise annual cash savings of $65-$75 million after 2020.
Harley-Davidson, Inc. Price and Consensus
Harley-Davidson, Inc. price-consensus-chart | Harley-Davidson, Inc. Quote
Zacks Rank & Stocks to ConsiderHarley currently carries 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 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 ReportCummins Inc. (CMI) : Free Stock Analysis ReportHarley-Davidson, Inc. (HOG) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Why Dividend Hunters Love Apogee Enterprises, Inc. (NASDAQ:APOG)
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Today we'll take a closer look at Apogee Enterprises, Inc. (NASDAQ:APOG) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.
A 1.8% yield is nothing to get excited about, but investors probably think the long payment history suggests Apogee Enterprises has some staying power. The company also bought back stock during the year, equivalent to approximately 4.3% of the company's market capitalisation at the time. There are a few simple ways to reduce the risks of buying Apogee Enterprises for its dividend, and we'll go through these below.
Explore this interactive chart for our latest analysis on Apogee Enterprises!
Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. In the last year, Apogee Enterprises paid out 39% of its profit as dividends. This is a middling range that strikes a nice balance between paying dividends to shareholders, and retaining enough earnings to invest in future growth. One of the risks is that management reinvests the retained capital poorly instead of paying a higher dividend.
In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. The company paid out 50% of its free cash flow, which is not bad per se, but does start to limit the amount of cash Apogee Enterprises has available to meet other needs. 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.
Consider gettingour latest analysis on Apogee Enterprises's financial position here.
From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. Apogee Enterprises has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of 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$0.33 in 2009, compared to US$0.70 last year. This works out to be a compound annual growth rate (CAGR) of approximately 7.9% a year over that time.
Companies like this, growing their dividend at a decent rate, can be very valuable over the long term, if the rate of growth can be maintained.
Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. It's good to see Apogee Enterprises has been growing its earnings per share at 11% a year over the past 5 years. A company paying out less than a quarter of its earnings as dividends, and growing earnings at more than 10% per annum, looks to be right in the cusp of its growth phase. At the right price, we might be interested.
When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. Above all, we're glad to see that Apogee Enterprises pays out a low fraction of its earnings and, while it paid a higher percentage of cashflow, this also was within a normal range. That said, we were glad to see it growing earnings and paying a fairly consistent dividend. All things considered, Apogee Enterprises looks like a strong prospect. At the right valuation, it could be something special.
Earnings growth generally bodes well for the future value of company dividend payments. See if the 5 Apogee Enterprises analysts we track are forecasting continued growth with ourfreereport on analyst estimates for the company.
Looking for more high-yielding dividend ideas? Try ourcurated list of dividend stocks with a yield above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Influencers Transcript: Kevin Love, June 20, 2019
ANDY SERWER: Many influencers master a single talent, but that doesn't make them one dimensional. Basketball star Kevin Love knows this well. The Cavaliers forward is an 11-year NBA veteran, who's played in five all-star games and won a championship alongside LeBron James.
Off the court, Love has fought for mental health awareness, revealing his own struggle with anxiety. He's here to talk about what it takes to win in sports and business and how to be kind to yourself if it doesn't come easily.
Hello, and welcome to "Influencers." I'm Andy Serwer, and I'm here with basketball superstar Kevin Love. Kevin, great to see you here.
KEVIN LOVE: Thanks for having me.
ANDY SERWER: So the basketball season's over. The Warriors lost to the Raptors-- maybe I should say the Raptors won?
KEVIN LOVE: Yes.
ANDY SERWER: What was your take on that series?
KEVIN LOVE: I thought it was a great series. Due to some unfortunate injuries I think that the Raptors were able to fend off the Warriors. Especially-- they did such a great job at Oracle, which is such a tough place to play. We played four straight years there in the Finals, and it's very, very tough to play at Oracle Arena. We talked about the fans before we came on here.
But no, Kawhi, Kyle Lowry, and the rest of that team-- Nick Nurse coaching them-- I felt they did a really great job executing. Their defense was awesome. A number of guys stepped up. Marc Gasol, Pascal Siakam, Serge Ibaka stepped up-- Fred VanVleet. A number of guys on that team really played their role and took it to a new level in the Finals, which at that stage is not easy to do, especially being there for the first time.
ANDY SERWER: Were you happy to see the Warriors lose? Did it diminish your victory over them?
KEVIN LOVE: No, I think, just knowing-- I grew up with Klay Thompson. Kevin Durant, I've known since I was 14 or 15 years old, through the AAU Circuit-- traveling basketball, growing up. So I just wanted to see, as a fan, a great Finals. And being a fan-- at least for the global growth of basketball, I think Adam Silver and everybody at the NBA offices have done such a great job with that.
But just the international team and having international finals for the first time can only be great for the game and the global expansion. It's awesome to see. You saw the parade yesterday. That was really special to see.
ANDY SERWER: One thing that marred the parade though was a shooting.
KEVIN LOVE: I heard that.
ANDY SERWER: And the NBA has been vocal about ending gun violence. Did that, sort of, diminish it in your mind?
KEVIN LOVE: I don't think so. I think, you know, obviously that's an unfortunate event. But I don't think the city of Toronto should allow that to put a damper on the day. Even though it is tough, I don't think one bad egg should be able to spoil the whole batch.
But obviously we wish for a speedy recovery. You never want to see something like that. But I applaud all the fans, and internationally, all the basketball fans for making that a special day for them. Because I've been in those shoes before. As we mentioned, the Warriors as well, have been in those shoes for three of the years, and it's a special time. And it should be celebrated.
ANDY SERWER: The Finals didn't get great ratings. Maybe that's because--
KEVIN LOVE: In Canada it did.
ANDY SERWER: --your old teammate-- it did? But LeBron wasn't there. Maybe you weren't there. So is the league going to always need those huge superstars to get those giant ratings-- or the big cities? Maybe that was another thing?
KEVIN LOVE: Yeah, I think it's definitely big cities, big markets. Players run this league, I feel like-- especially premiere players. But it is very tough to see Durant, as you mentioned, go down. It's tough to see Klay go down.
But other players had to step up. Kawhi has been such a tremendous player in this league. I think his story-- after coming off from injury last year, having been traded to Toronto and coming through and winning the championship-- is a great story. But, yeah, as far as ratings, I think it's definitely a players-driven league. And that continues to-- or, needs to continue to trend in the right direction.
ANDY SERWER: What about this trade the Lakers just did to get Anthony Davis? What do you think about that?
KEVIN LOVE: Disruptive. It's gonna be interesting to see. On the other side of it you have David Griffin, who is a general manager-- who actually facilitated a trade for me back in the 2014, 2015 season to get me on the Cavs. So I knew he'd do the best job. He'd get the best trade, the best value possible from the Lakers. And I felt he did a great job to set up their future.
But on the Lakers' side of things, speaking of disruption, it's going to be interesting to see how that tandem bodes moving forward because I think Anthony Davis is 26. LeBron's 34, turning 35, at the end of December. And it's gonna be-- especially with the West now. The West is gonna be wide open. There's gonna be some of the teams there at the top like a Denver, like a Houston.
But then with the Warriors, they're gonna be missing two of-- probably the top, maybe, five or 10 players in the league-- when you talk about Klay, and you talk about Kevin Durant-- all of next season. So it's gonna be really, really powerful as far as-- we mentioned those storylines throughout the season like Kawhi. It's gonna be powerful to see what happens. We have the draft this Thursday, and I think July 1 is the start of free agency.
So that's what makes the NBA fun. There's a lot of-- you know, everybody has the 24-hour news cycles. And there has to be different things to talk about. But luckily and thankfully for the NBA, there's just that constant storyline with a number of players and a number of teams.
ANDY SERWER: All right, we're gonna jump around a little bit here, Kevin. What about Mark Cuban running for president? What do you think about that?
KEVIN LOVE: I love Mark Cuban so I'm for it. What is it, 2020? Are we going Mark Cuban 2020, 2024.
ANDY SERWER: Yeah, if you want.
KEVIN LOVE: No it's-- I think he's done an amazing job, at least as an owner, in the NBA. I know from that perspective-- I don't know if this translates to running for office. But he has done a really great job of allowing players to be themselves, while also being a-- almost like a player's owner. We always talked about a player's coach.
But he's so heavily involved. He sits right by their bench. He travels with them to games. He makes sure they have whatever they need in order for-- not only longevity purposes, but for that day. So I think some of that stuff actually does transcend into everyday life and the American people. But, yeah, I only know him as an owner of an NBA team and a team that's done exceptionally well.
ANDY SERWER: You going to Harvard Business School?
KEVIN LOVE: I did, yeah. It was the accelerated course, yeah.
ANDY SERWER: OK. When was that?
KEVIN LOVE: That was a few weeks ago, just after Memorial Day.
ANDY SERWER: What the heck was that like? Were other people in your class-- some other NBA players or celebrities?
KEVIN LOVE: Yeah, it was--
ANDY SERWER: Tell us all about that.
KEVIN LOVE: Yeah, Luc Mbah a Moute, Julius Randle, Chip and Joanna Gaines, Ciara. Just to name a few.
ANDY SERWER: Wow.
KEVIN LOVE: Tim Cahill as well, a famous soccer star. So we got to play student again. For me, that was-- I guess-- 12 years and a month ago I would have taken my last class at UCLA. I was there for probably nine months.
I was an 18-year-old kid and-- or, a 19-year-old kid. And that was special to be back in that setting and just trying to absorb and be a sponge for growth and learn as much as I possibly could in those four and half days.
ANDY SERWER: You consider yourself a business person at all yet? Are you getting into business? And what have you learned about business and how it's connected to sports?
KEVIN LOVE: Sure. I think authenticity is huge. I think that word is probably thrown around a lot. And I think that's easy to say. But I feel like I've taken-- and I've had a good team that's taken-- what is authentic in me and what I really love. And that's, you know-- I would say, being a mental health advocate as well as health and wellness.
I think it's really diving into diet. And I mentioned that word longevity, just making people better overall. Whether it's taking away chronic inflammation, whether it's people feeling-- every day in their body and mind-- really, really good-- and just creating a-- really, a platform for change and for the better moving forward.
Because I feel like I've not only done that in my life, but have been able to affect people in a major way and been able to elicit change. So yeah, I think moving forward-- especially, I mentioned to you-- I turn 30 in September. So I want to start looking at life after basketball, but know that nothing happens without that ball.
I've played 11 seasons now. I just ended my 11th season on April 9th and want to hopefully play-- we talked about longevity-- hopefully play up to 20 seasons if possible. But just try and continue to walk that walk as far as being a basketball player, an influencer in that way. Being an advocate for mental health as well as a business person. But, kind of, in that realm because that all means so much to me-- and making people's lives better.
ANDY SERWER: So you mean you're halfway in your basketball career, if you're lucky.
KEVIN LOVE: Yeah, I think it's a good balance. Oh, halfway, that's tough to say. Actually, speaking to Kevin Durant, I had a conversation with him in Vegas-- I think it was two summers ago or last summer-- where we talked about him finishing his 11th year-- so I guess it would've been last summer-- and me finishing my 10th year. And we thought to ourselves, man, we've known each other for so long. And no matter which way you look at it, we're right at the cusp of being over the hill, if you will.
So he said, I'm likely not gonna play 22 seasons. You know, anybody making it to 20 is really an unbelievable feat. But that's why I think both of us, and a number of players in the league, and you start to see a trend earlier on in guys' careers are starting to look at life after basketball and what they can get involved in.
ANDY SERWER: That's amazing, over the hill at 30 years old. Come on, now.
KEVIN LOVE: Crazy right. Just in sports--
ANDY SERWER: I know, right.
KEVIN LOVE: --burning it at but ends.
ANDY SERWER: But you already had a long career, probably longer than the average NBA player.
KEVIN LOVE: Sure.
ANDY SERWER: At 10, I'm sure it's longer than the average, right?
KEVIN LOVE: Yeah, I think it's less than five.
ANDY SERWER: Right, exactly.
KEVIN LOVE: I think it's between four and five.
ANDY SERWER: Can you talk to us more about your interest in mental health--
KEVIN LOVE: Sure.
ANDY SERWER: --and how you became involved in that aspect of your life?
KEVIN LOVE: Well, I've been somebody that's dealt with anxiety and depression my entire life. And it wasn't until last year I had an in-game panic attack and told my story-- for a number of reasons-- a few months later. And that led me into starting my own fund, the Kevin Love Fund, in September of this last year.
It's all about inspiring people to live their healthiest lives, while we're looking at and finding ways to provide tools for physical and emotional well-being. So it's everything I mentioned. It's making-- for any demographic because this thing doesn't discriminate-- it's making people's lives better.
And I think from an emotional standpoint, it's figuring out ways that we can push forward and elicit change in mental health. Especially-- my sole focus and my target-- just because I didn't understand it when I was young-- would be kids anywhere from, like, 6 to 18, that demographic. But I think it is going to be interesting to find ways to affect the masses, while also places near and dear to my heart.
And physically I think-- you know, I've seen it. Whether it's been close friends, whether it's been family members, whether it's been mentors-- that chronic inflammation in your body. Finding ways and physical tools in order to help people not have to deal with that everyday pain in their body.
ANDY SERWER: And, you know, that's surprising, always surprising, when you hear about someone as successful as you are that wrestles with demons. Because you always assume that people who've reached your station in life have no problems at all. But that's not the case, right?
KEVIN LOVE: It's not the case. I mean, there's three people that come to mind. It's Robin Williams, and he had all the success in the world, was one of the all-time comedians. And he dealt with this every single day.
Kate Spade, who felt that it would hurt her brand and took her own life. And then Anthony Bourdain, who I loved. I loved his show. I loved what he was about. He was universally well-liked. He traveled the world, got to ask the best questions. He ate the best food, you know, had a beautiful family and had kind of seen it all, done it all. Yet, he took his own life.
And that, I think, just shows you that success is not immune to depression. There's a vast community, and this really transcends really any walk of life. And if you look at the numbers, it's pretty staggering with people of all ages and every walk of life that deal with anxiety and depression on a daily basis.
And I always relate to-- and try to make the analogy of-- it being like a weighted vest and changing that relationship with that weighted vest every single day. So I think-- the thing I always tell people is I don't have all the answers. But it's become-- and I feel like I've, in a lot of ways, found my life's work in finding different ways to maneuver this process of finding out how to help people.
ANDY SERWER: You were brought up in, sort of, a charmed upbringing, really.
KEVIN LOVE: Sure.
ANDY SERWER: I mean, you had a really cool early, early part of your life. You were born in the LA area. Your uncle was a member of the Beach Boys. I mean, people don't-- some people don't know that. And then you we're an all-star basketball player very early on. What was that like? And tell us about the Beach Boys a little bit as well.
KEVIN LOVE: It was a-- no, I had a great upbringing as far as having a dad who played in the NBA, the guy who handed me the ball early on. Had an uncle that was in one of the greatest rock and roll bands of all time. And music, you know, it's timeless. I still listen to it to this day. So it was definitely a childhood-- and speaking of mental health-- that you wouldn't necessarily think, OK, that's gonna be the kid that has these problems or has to deal with this on an everyday basis.
I know this is kind of diverting from your question, but it's definitely something that a lot of people don't see. And being in those moments you just have blinders on this whole time. And no matter what you're subject to or what you deal with as a kid and how your upbringing is or where you grow up, it's gonna affect you in one way or another. So it's either gonna be internal or external. But no, I did have an interesting childhood to say the least.
ANDY SERWER: Yeah. And then when you played at UCLA, you were there with Russell Westbrook, for one.
KEVIN LOVE: I was.
ANDY SERWER: And there was a lot of pressure there, right? I mean, what was that like, playing at that storied school?
KEVIN LOVE: It was unbelievable. So I'd actually been able to develop some sort of relationship with John Wooden, especially before he passed. So that was very special-- and being recruited by UCLA really early on in high school-- I'd probably say my freshman year of high school.
And my dad went to Morningside High School in Inglewood, California, and Jim Harrick was his coach. And he had taken the '95 team to the national championship. The famous O'Bannon brothers, Tyus Edney hitting that-- I think it was 4.8 seconds to head to the Final Four. And it was just a really-- I don't think there's as much a storied program as UCLA-- all the national championships, all the incredible players. Lew Alcindor, Bill Walton-- probably the two best college players of all time.
And then leading into that year where we had Darren Collison, Luc Mbah a Moute, Russell Westbrook-- where he wasn't a household name yet. So it was going into the team that was ranked number one in all of Division 1 basketball. And we made it to the Final Four, lost to a Derrick Rose Memphis team. First year all 2008 number one seeds have made it to the Final Four, and we just couldn't pull through at the end. But I was very proud of that team.
ANDY SERWER: Did you talk to John Wooden, and if so, what do you remember about those conversations-- or what did you learn from him?
KEVIN LOVE: A couple of things. How sharp he was still at 90 plus years of age, he was reciting poetry. And I can think of a number of-- he really loved Abraham Lincoln. And he recited a lot of his poetry as well.
I remember his wife, Nell, he had still put her evening gown on her side of the bed in his small apartment in Encino, California. I remember he had a-- you know, he'd have all the pillars, like, almost on this picketed fence, and they would slide all the mail through there, every day, that he would get.
Because he was not only a world-renowned coach, but he stood for all the right things, had written many books about not only his person, his family life-- but what he had learned-- "A Lifetime of Observations" and his "Pyramid of Success." So there was a number of things that-- I feel like I could talk to him-- it could be a whole other segment that we could talk about John Wooden for. But no, he's a very special human being. And I look back on some of those photos with him, and I think that was a very special time.
ANDY SERWER: Yeah, I got to spend a little bit of time with him, doing some interviews with some corporate executives. And just the amount of wisdom that he could impart in just a sentence--
KEVIN LOVE: Unbelievable.
ANDY SERWER: --or two, it was really amazing. He was a very special person.
KEVIN LOVE: Yeah, it's unbelievable.
ANDY SERWER: Let's talk a little bit about the NBA, Kevin. And I'm curious as to your take on why you think the league has been so successful and where you think its shortcomings are.
KEVIN LOVE: I think it starts with Adam Silver. I really do. I think he's taken his role as NBA Commissioner and, I would say, not only supported the players in all of the meaningful stuff that we're doing off the floor, but also really pushed us and accelerated us and catapulted us into making change for good.
I mean, I look at LeBron James and his I Promise School in Akron, Ohio, which is helping kids not only get into college, but giving them scholarship platforms where they're able to take away some of the financial burden moving forward. And there's been so much change in the greater Ohio area because of that. And I applaud him for that.
But whether it be mental health advocacy, and so on and so forth-- I think the NBA has done a really great job at that. And as I mentioned with the first international finals, I think, just continuing to grow the game and seeing where those markets are for expansion and moving forward with the game globally is really huge. But I think Adam has done an exceptional job and put people around him that have allowed them to have a lot of success.
And I know that's on the other side of what we do, the players. But I think it's finding that perfect marriage and synergy to help grow our game. And it's only trended-- being able to trend in the right direction, especially since he's taken over the helm.
ANDY SERWER: Should the season be shorter, though, because of the injuries? What you think about that? Just a few--
KEVIN LOVE: I think it's, yeah, an interesting concept. But they've done-- again, done a great job of taking away three games-- or, I would say, three games in four nights. Back to backs, I think it went anywhere from 22 to 24, to now 12 to 14. That number could be a little off. But I think that allows for our bodies to recover.
And we talk about longevity because without-- I think with-- fighting that battle of attrition and seeing players every single night trying to perform on either heavy legs or tough travel schedules takes away from the product. And you have to start from the fan first and work your way back. So I think, allowing us to be the best for the fans and being the best version of ourselves for that NBA product on the floor is key.
So I think they have done a great job. They've eliminated some of the preseason games. They've started the season, actually, I think two weeks sooner now to help spread it out and allowed for-- at least when you make it to the Finals now there's another-- excuse me, another game in between-- or, another day in between games to allow players for rest. Because, you know, as far as rating purposes and that product, I think that's very key.
ANDY SERWER: What have you learned about race, being a white player in a predominantly African-American league?
KEVIN LOVE: Of privilege. Yeah, I think it's-- actually, Kyle Korver, a teammate of mine and a good friend of mine actually wrote a great article on me on "The Players' Tribune," about being white in the NBA. And I think it is-- I mean, this is a predominantly black league. And African-Americans have grown our game in such an exceptional way, in such a big way, that you have to tip your hat and give the credit where credit is due.
I mean, it's not just the game of basketball but popular culture and expansion. And, you know, if you look at a guy like Magic Johnson, he's been able to not be put into that box of being just a basketball player. He's grown himself as a business mind. He's grown himself-- even outside of being a player, being a general manager, a president, a CEO of many of his businesses.
So it's a-- no, it's a really interesting topic where I'm really glad that-- and it is appropriate that Kyle-- because he's able to have those tough conversations and bring those subjects to light. I think that Kyle was the right guy to do it, and it's very powerful coming from him.
ANDY SERWER: Right. College players coming right into the league from high school, do you think that's a good thing?
KEVIN LOVE: I think you're gonna see it. I think it's gonna be within the next three to five years. I believe that that's a choice that players should have. Especially-- you know-- when you're able to attain your goal at such an early age, and you don't necessarily have to go through the whole process of going to the NCAA.
But then I look at a guy like Zion Williamson. And he got to be mentored and coached by Coach Krzyzewski, who I was able to play-- I was with USA Basketball in 2010 in Istanbul-- won a world championship and in 2012 an Olympic gold medal in the London Olympics. So that, I think, is a beautiful thing. I would have had the opportunity to go straight from Lake Oswego high school to the NBA when I was 18 years old. But I got to play under Ben Howland at UCLA, got to make lifelong friendships and at least have a small impact, in that year at UCLA, on the university.
So it's tough for me to say that-- you know-- that I wouldn't have gone to college. But when you have that opportunity like most sports do-- maybe outside of football or the NFL-- to achieve your dream and start making money for not only yourself, but to be able to take care of your family and start building your business, I think it can be really powerful, especially at that age. And I think Adam Silver and the league are gonna do the right thing.
ANDY SERWER: You seem to be a fashion guy a little bit, right? You're Interested in that. You worked as a Banana Republic style ambassador, right? Talk to us about that a little bit.
KEVIN LOVE: Yeah, actually, I'd worked with Banana Republic for what-- I think it was four years. And that relationship continued to evolve, and they're a classic American brand. So I think it really-- we talked about authenticity-- just really fit who I am.
I had people that understood who I am as well as where I wanted to go. And that relationship continued to grow into where I was able to make my own capsule collection this last fall, which was very, very special.
ANDY SERWER: Now, you got a place in New York too now, where you're in the center of all the passion.
KEVIN LOVE: Well, yeah, that's why I pull all this stuff, now, right? Yeah, so-- no, I just-- yeah, I just moved to Tribeca. And this will be the first summer-- the last 11 off-seasons I had lived in LA and trained in LA. And now I finally transitioned, at 30 years old, to New York. So I found all the places where I'm gonna work out and train.
ANDY SERWER: Grown up and moved to New York. It's, like, who's that tall guy walking around Tribeca.
KEVIN LOVE: Yeah, I think-- kind of, put my hat down and move freely.
ANDY SERWER: No, they're New Yorkers, they don't bother people.
KEVIN LOVE: They don't.
ANDY SERWER: You'll see.
KEVIN LOVE: They don't.
ANDY SERWER: You'll see. Let's do a lightning round of some questions here. So what would you say to someone who is struggling with life or career challenges? What advice would you give them?
KEVIN LOVE: I would just say-- where-- I got a whole laundry list of things I could say. But no, I always say, speak your truth. Nothing haunts us like the things we don't say. And that was something that I wish-- at least for when I was younger-- I wish I would have had that, just, embedded in my mind.
Because there were so many things that I held on to when I was young and have been able to-- whether it be through therapy or just through friends that have missed it-- just being able to speak my truth. And it's pretty liberating. So I would say, yeah, fight your fights like you live your life. I mean, there's a hundred things. I don't mean them to sound like cliches.
ANDY SERWER: Leave the other 99 on the table.
KEVIN LOVE: Right.
ANDY SERWER: OK.
KEVIN LOVE: But no, it's a-- that's a--
ANDY SERWER: All right--
KEVIN LOVE: --yeah, a number of things I could say.
ANDY SERWER: All right, biggest challenge in your life and how you overcame it and learned from it? You may have spoken to that already.
KEVIN LOVE: Yeah, I mean, I think that just goes with the-- you know, there's-- I think injuries are a part of sport as well. I could go another way-- whether it be my shoulder and having to deal with overcoming injuries in sport. But also dealing with the loss of my grandmother was tough.
I never allowed myself to go through the grieving process. I think everybody experiences loss at some point in their life. But when you couple that with dealing with, every single day, that anxiety and those bouts of melancholy or depression-- if you don't deal with that in the time being, it can send you down a nasty spiral or a slippery slope.
ANDY SERWER: OK. Biggest role model, what did you learn from them, and what kind of person should you look for in a role model?
KEVIN LOVE: I think there's been a few. I think one of them is probably my agent. He always tells me, OK, I'm gonna speak to you as your agent and then I'm gonna speak to you as your friend. And I think he's been, definitely, a mentor-like figure to me.
ANDY SERWER: Who is that?
KEVIN LOVE: Jeff Schwartz is his name. And he has a beautiful family, beautiful wife, three daughters. And he's been somebody who has shown me the way and I guess lives his life-- who's to say, in the right way. But for me, it's kind of who I want to aspire to be.
And then a former teammate, James Jones. He's now the president, general manager of the Phoenix Suns. And he's been somebody-- another, you know, beautiful wife, great family, three kids-- that I definitely aspire to be as well. Because he seems to have done all the things the right way. And even at his age, mid-30s, he just seems to have all that wisdom that takes a lifetime to acquire.
ANDY SERWER: OK. Life is full of supporters and haters. What would you say to someone who is impacted more by the haters than the supporters?
KEVIN LOVE: You know, that might not even be true. I think it's-- you kind of seek, or you find, what you want to find. Your eyes are-- it's funny. You could hear a hundred good things, compliments, praise, but if you see that one person that just wants to see the world burn or wants to be a keyboard warrior, you tend to focus on that. So I think it's just quieting your mind, taking six deep breaths and understanding that-- think about things in terms of intent.
I think when so many people-- there's so many talking heads and people want to get into your brain. You have to find a way to not allow them to do that because that's their own version of their dream and their life. It has nothing to do with you most of the time.
ANDY SERWER: So you can't always listen to Stephen A. Smith?
KEVIN LOVE: I like Stephen A. I like his role that he plays because I think he-- I mean, we talk about growth of the game. It's a big part of why we have these massive contracts and TV contracts.
It's because you have these, for lack of a better term, talking heads that are passionate about what they do. They, yeah, will kind of be high and low as far as praise and as far as beating people down. But no, Stephen A. has been around for a while.
ANDY SERWER: He is actually a talented person.
KEVIN LOVE: And he's actually a great dude. If you catch him away from being the Stephen A. that we see on camera, he's an awesome, awesome dude.
ANDY SERWER: That's great to hear. Last question, Kevin, and that is-- this show's called "Influencers." And so I'm curious, how do you see using your influence on the world?
KEVIN LOVE: Yeah I think-- a lot like I mentioned with Magic, and a lot like I mentioned with the players today in our game. Just being able to use our reach, use our platforms, our social influence in the global game. There is so much positive that we can push forward in our everyday life. Whether it be basketball, pushing kids into sports. Whether it be education, like I mentioned with LeBron. Whether it be getting your body moving or taking care of your brain at an early age.
You know, because, basketball kind of transcends any age too. So I think we have a massive platform to be able to influence a number of people in this world. And we're not put inside that box from Adam Silver and everybody at the league. They push us to do great things. Not only on the hardwood, but outside of that. And I think it's only gonna continue to trend in that direction and be a special time for not only NBA players, but athletes all around.
ANDY SERWER: Cleveland Cavalier basketball star, Kevin Love. Thanks so much for coming by, Kevin.
KEVIN LOVE: Thank you, appreciate you.
ANDY SERWER: You've been watching "Influencers," I'm Andy Serwer. We'll see you next time. |
AT&T Harnesses Edge Capabilities With Hewlett Packard Tie Up
AT&T Inc. T recently collaborated with Hewlett Packard Enterprise Company HPE to facilitate diverse businesses to harness edge connections and edge computing capabilities to push their boundaries to new frontiers. The deal seems to be the call of the hour with increased 5G deployments giving rise to large quantum of data.Edge computing forms a core focus area for AT&T and marks a positive stride forward in providing faster processing and potentially enhanced security for business applications. While AT&T Multi-access Edge Compute Services offer seamless cellular coverage along with new capabilities to manage cellular traffic through virtual network functions, HPE Edgeline Converged Edge Systems provide a single system that implements data center-level compute and management technology at the edge.Together, the companies aim to offer a flexible tool to better analyze data and process low-latency, high-bandwidth applications. The go-to-market alliance particularly intends to enable customers to swiftly convert data into actionable intelligence, enabling unique digital experiences and smarter operations.Moving forward, AT&T anticipates gaining an advantage over rivals through edge computing services that allow businesses to route application-specific traffic to where they need it and where it’s most effective — in the cloud, the network or on their premises. Through its Multi-access Edge Compute solution, the company offers the flexibility to better manage data traffic. It leverages indigenous software-defined network to enable low-latency, high-bandwidth applications for faster access to data processing. AT&T expects edge computing solutions to be widely available in autonomous vehicles, drones, robotic production lines and autonomous forklifts in the near future. Utilizing machine learning techniques and more connected devices, this could transform the way data-intensive images are transferred across the industry on real time basis.We remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock. The stock has outperformed the industry year to date with an average return of 13.6% compared with the 8.7% rise of the latter.
A couple of better-ranked stocks in the industry are Gogo Inc. GOGO and T-Mobile US, Inc. TMUS, both carrying a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Gogo beat earnings estimates in each of the last four quarters, the average positive surprise being 38.7%.T-Mobile has a long-term earnings growth expectation of 13%. It beat earnings estimates in each of the preceding four quarters, the average surprise being 12.1%.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 reportHewlett Packard Enterprise Company (HPE) : Free Stock Analysis ReportAT&T Inc. (T) : Free Stock Analysis ReportT-Mobile US, Inc. (TMUS) : Free Stock Analysis ReportGogo Inc. (GOGO) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
How Many Ventura Cannabis and Wellness Corp. (CNSX:VCAN) Shares Did Insiders Buy, In The Last Year?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares inVentura Cannabis and Wellness Corp.(CNSX:VCAN).
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia Universitystudyfound that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Check out our latest analysis for Ventura Cannabis and Wellness
Over the last year, we can see that the biggest insider purchase was by CEO & Executive Director Jacob Gamble for CA$493k worth of shares, at about CA$4.87 per share. That means that an insider was happy to buy shares at above the current price of CA$0.46. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Over the last year, we can see that insiders have bought 403k shares worth CA$528k. While Ventura Cannabis and Wellness insiders bought shares last year, they didn't sell. They paid about CA$1.31 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Ventura Cannabis and Wellness is not the only stock that insiders are buying. For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
Over the last quarter, Ventura Cannabis and Wellness insiders have spent a meaningful amount on shares. In total, insiders bought CA$528k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Our data suggests Ventura Cannabis and Wellness insiders own 1.5% of the company, worth about CA$253k. We consider this fairly low insider ownership.
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Ventura Cannabis and Wellness stock. To put this in context, take a look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow.
Of courseVentura Cannabis and Wellness may not be the best stock to buy. So you may wish to see thisfreecollection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Superhero horror movies youve probably never seen
'Brightburn' isn't the first superhero horror movie (credit: Sony Pictures) With Brightburn soaring (or sinking) into cinemas, youd be forgiven for thinking the plot (basically, The Omen meets Superman ) makes it the first superhero horror movie ever made. The marketing material certainly wants you to believe so, claiming that director David Yarovesky has created a whole new genre for the film. But, of course, as anyone with a memory longer than the Dark Universes lifespan will tell you, superhero horror is definitely already a thing. Though, theres probably a good reason why most of these have been completely forgotten about. Please, please, Hollywood - never make an Avengers style movie featuring this lot. Faust: Love of the Damned (2000) Mark Frost as the demonic Faust (credit: Castelao Productions) Based on the Avatar comic series that started in 1987, this bizarre horror movie sees an artist selling his soul so he can take revenge for the death of his girlfriend. The price? He occasionally turns into a demonic superhero (complete with cape, cowl and Wolverine-style retractable claws), who gleefully kills people. Probably the goriest movie on this list (the effects were done by someone called Screaming Mad George) its also - somehow - the dullest. Earth Vs The Spider (2001) Devon Gummersall mutates (credit: Sony Pictures) A comic-book fan decides to transform himself into his favourite superhero - The Arachnid Avenger - by injecting himself with an experimental serum developed from spiders. However, instead of becoming a hero, he mutates into a monster that needs to suck the fluids from humans in order to survive. Basically, imagine Spider-Man if Spider-Man turned into an actual spider / serial killer, and thats this film. Vampirella (1996) Terrifying for all the wrong reasons (credit: Sunset Films) Were not going to patronise you by suggesting you havent seen Blade (which, as its a vampire movie, is definitely a horror film), but you almost certainly missed the 90s Vampirella movie. Mostly because its awful. Essentially a vamp version of Wonder Woman , Vampirella starred Talisa Soto as the titular alien from (dont laugh) Drakulon, who crashlands on Earth and starts saving humans from evil vampires. Story continues Read more: Horror trailers shown to 'Peppa Pig' movie audience Like Brightburn , it feels like a spin on the Superman myth, except with added blood. Unlike Brightburn , its been disowned by its director, Jim Wynorski, who called it, "a mess... a film I cannot watch. Everything went wrong. Everything! Coming from the director of The Bare Wench Project , thats quite an accolade. Darkman (1990) Liam Neeson's disturbing Darkman (credit: Universal) Yes, its a studio movie, but if theres a chance you havent seen Darkman , we have to put that right immediately, because its amazing. Its got a fairly typical comic-book origin - a man is disfigured in a lab accident / assassination attempt, and takes revenge on the people who destroyed his life. But the plot isnt whats exciting about this one. Directed by Evil Dead s Sam Raimi, and featuring a villain that enjoys chopping peoples fingers off with a cigar-cutter, this really isnt the first comic-book movie wed stick our kids in front of. And, yes, we know the film wasnt based on a comic, but comics based on the movie were eventually released by Marvel, so it counts. Our campaign to bring Darkman to the MCU starts now. With some genuinely horrible moments - our hero has no problem with killing people, with a gruesome traffic accident being one highlight - and some cool prosthetic effects (bandages removed, Darkman is scarier than Freddy Krueger, and even Freddy doesnt have a face that melts off every 99 minutes), Darkman is essentially a Universal monster movie, disguised as a superhero flick. Swamp Thing (1989) Wes Craven's swamp monster (credit: Embassy Pictures) Like Darkman , Swamp Thing is a superhero film directed by someone known for their horror work, which features a monster created by a deliberately orchestrated lab accident. Yep, Wes Cravens comic-book film would work in a double-bill with Sam Raimis comic-book film, because theyre both tributes to scare flicks like Frankenstein and The Invisible Man . Toxic Avenger (1984) THIS is a superhero?! (credit: Troma) Plunged face-first into a barrel of toxic waste, our hero - janitor Melvin - transforms into a mop-twirling freak, who beats up bullies and criminals, in this parody of monster movies and superhero comics. Read more: The Banana Splits series is getting a horror reboot Despite the fact it was later turned into a Saturday morning cartoon series, Toxic Avenger is definitely a horror movie, with a gruesome head-squash special effect as disturbing as anything in the Friday The 13th franchise. Spawn (1997) Spawn's nemesis Malebolgia has more teeth than Venom (credit: New Line) When a mercenary is killed by his own team at the request of a demon, the mercenary is resurrected by the demon so he can lead Hells army to earth. Yeah, that sounds like a horror movie to us - its basically the best Hellraiser sequel never made. Except Spawn is based on Todd McFarlanes Image comic series, and Spawn has a costume that looks like Venom meets Superman , so hes definitely technically a superhero, even if he doesnt do anything thats massively heroic. R-rated for violence, this makes Brightburn look like Brigsby Bear. |
Southwest Q2 RASM View Up, Cost View Bleak on MAX Groundings
Southwest Airlines Co. LUV has revised its guidance for the second quarter of 2019 to take into account strong demand and the extended Boeing 737 MAX groundings.With robust demand and solid passenger yields, the carrier anticipates operating revenue per available seat mile (RASM) to increase 6.5-7.5% year over year compared with 5.5-7.5%, expected earlier.However, operating costs per available seat mile (CASM), excluding fuel and oil expense and profit-sharing expense, are now projected to rise 11.5-12.5% year over year. Previous view for the metric was an increase in the range of 10.5-12.5%. This escalation in costs is due to reduced capacity during the second quarter as a result of the 737 MAX 8 groundings.
Southwest Airlines Co. Price
Southwest Airlines Co. price | Southwest Airlines Co. Quote
Capacity for the second quarter is estimated to decline approximately 3.5% year over year compared with the previous expectation of a 2-3% decrease dip. While this forecast indicates the grounding of its 34 737 MAX 8 aircraft through Aug 5, the company, however, has extended the grounding period until Sep 2 due to uncertainty hovering over the aircraft’s return to service.Meanwhile, with oil price coming in at modest levels, the estimate for fuel costs remains intact in the band of $2.10-$2.20 per gallon. However, fuel efficiency is predicted to slide 1-2% in the second quarter. Past guidance reflected a year-over-year change of flat to down 1%. This downside is primarily due to the grounding of the 737 MAX 8 aircraft, the most fuel-efficient plane in the airline’s fleet.Zacks Rank & Key PicksSouthwest carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are Air China Ltd. AIRYY, SkyWest, Inc. SKYW and GATX Corporation GATX. While Air China sports a Zacks Rank #1 (Strong Buy), SkyWest and GATX carry a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.Shares of Air China and SkyWest have rallied more than 17% and 34%, respectively, so far this year. Meanwhile, GATX boasts an encouraging earnings history, having trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16%.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 reportSouthwest Airlines Co. (LUV) : Free Stock Analysis ReportSkyWest, Inc. (SKYW) : Free Stock Analysis ReportAir China Ltd. (AIRYY) : Free Stock Analysis ReportGATX Corporation (GATX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Could The AM Resources Corp. (CVE:AMR) Ownership Structure Tell Us Something Useful?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
The big shareholder groups in AM Resources Corp. (CVE:AMR) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.
AM Resources is not a large company by global standards. It has a market capitalization of CA$5.5m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions don't own shares in the company. Let's delve deeper into each type of owner, to discover more about AMR.
See our latest analysis for AM Resources
We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.
There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to fund under management, so the institition does not bother to look closely at the company. Alternatively, there might be something about the company that has kept institutional investors away. AM Resources might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.
Hedge funds don't have many shares in AM Resources. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
It seems insiders own a significant proportion of AM Resources Corp.. Insiders own CA$982k worth of shares in the CA$5.5m company. It is great to see insiders so invested in the business. It might be worth checkingif those insiders have been buying recently.
The general public, who are mostly retail investors, collectively hold 74% of AM Resources shares. This size of ownership gives retail investors collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.
It seems that Private Companies own 8.3%, of the AMR stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
It's always worth thinking about the different groups who own shares in a company. But to understand AM Resources better, we need to consider many other factors.
I always like to check for ahistory of revenue growth. You can too, by accessing this free chart ofhistoric revenue and earnings in thisdetailed graph.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Is Velocity Data's (CNSX:VCT) 300% Share Price Increase Well Justified?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Velocity Data Inc.(CNSX:VCT) shareholders might understandably be very concerned that the share price has dropped 73% in the last quarter. But in three years the returns have been great. Indeed, the share price is up a very strong 300% in that time. It's not uncommon to see a share price retrace a bit, after a big gain. Only time will tell if there is still too much optimism currently reflected in the share price.
See our latest analysis for Velocity Data
We don't think Velocity Data's revenue of US$42,907 is enough to establish significant demand. So it seems shareholders are too busy dreaming about the progress to come than dwelling on the current (lack of) revenue. Investors will be hoping that Velocity Data can make progress and gain better traction for the business, before it runs low on cash.
As a general rule, if a company doesn't have much revenue, and it loses money, then it is a high risk investment. There is usually a significant chance that they will need more money for business development, putting them at the mercy of capital markets. So the share price itself impacts the value of the shares (as it determines the cost of capital). While some such companies go on to make revenue, profits, and generate value, others get hyped up by hopeful naifs before eventually going bankrupt. Some Velocity Data investors have already had a taste of the sweet taste stocks like this can leave in the mouth, as they gain popularity and attract speculative capital.
Velocity Data had liabilities exceeding cash by US$6,961,918 when it last reported in April 2019, according to our data. That puts it in the highest risk category, according to our analysis. So we're surprised to see the stock up 59% per year, over 3 years, but we're happy for holders. Investors must really like its potential. The image below shows how Velocity Data's balance sheet has changed over time; if you want to see the precise values, simply click on the image.
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. If they are buying a significant amount of shares, that's certainly a good thing. Luckily we are in a position to provide you with thisfreechart of insider buying (and selling).
Velocity Data shareholders are down 71% for the year, but the broader market is up 1.0%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Fortunately the longer term story is brighter, with total returns averaging about 59% per year over three years. The recent sell-off could be an opportunity if the business remains sound, so it may be worth checking the fundamental data for signs of a long-term growth trend. You might want to assessthis data-rich visualizationof its 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. |
5 REIT Stocks to Add as Federal Reserve Keeps Rate Unchanged
Drop in inflation expectations, global economic growth concerns and prevalent trade tensions are compelling investors to look for safer havens, particularly toward the security of the government bonds, pushing up debt prices and resulting in the fall of bond yields. Also, for the first time since late 2016, the 10-year treasury yields slipped below 2% after Fed chairman Powell held interest rates steady, but kept its options open for any cuts later this year.President Trump has been keeping the central bank under persistent pressure for lowering of interest rates. However, this time, the Fed kept the benchmark rate unchanged, and dropped the word “patient” in discussing its attitude toward policy, instead. The central bank also pointed out that while on an average, job gains have been solid, economic activity is increasing at a moderate pace.Moreover, though household spending seems to have picked up pace in recent months compared to the beginning of the year, business fixed investment indicators have been “soft”. Additionally, with inflation still lagging behind the Fed’s target level, the committee has decided to closely monitor the economic situation and make prudent moves for economic expansion.Further, the argument in favor of an accommodative policy has gathered steam. This is indicated by eight of the 17 members preferring a rate cut this year, while an equal number voting in favor of retaining it, and the other member preferring a hike.The current scenario brings back interest-sensitive REITs to the limelight, as these are often treated as bond substitutes for their high-dividend paying nature. Particularly, government regulations mandate REITs to disburse at least 90% of their taxable income in the form of dividends to shareholders each year. In addition, dependence of REITs on debt for their business keeps investors optimistic about their performance in case of a rate cut.These apart, underlying fundamentals of a number of asset categories in the REIT sector have been displaying strength. The occupancy levels of properties are hovering near the record-high marks — indicating solid demand as well as scope for generating steady revenues.Stocks to ConsiderTherefore, backtracking to the REITs and scouting for stocks with better fundamentals and dividend seems an apt choice. We have handpicked stocks based on a favorable Zacks Rank, high dividend yield and other relevant metrics.Headquartered in Boca Raton, FL,The GEO GroupGEO is an equity REIT that specializes in the design, development, financing and operation of correctional, detention and community reentry facilities. It has operations in the United States, Australia, South Africa and the U.K. The GEO Group currently flaunts a Zacks Rank #1 (Strong Buy) and has a VGM Score of A. Also, the Zacks Consensus Estimate for its 2019 FFO per share moved 35.4% north in two months’ time. In addition to this, the stock has a dividend yield of 8.06%.Arbor Realty TrustABR, based in Uniondale, NY, invests in real estate-related bridge and mezzanine loans, preferred equity, mortgage-related securities and other real estate-related assets. Currently, Arbor Realty Trust sports a Zacks Rank #1 and has a VGM Score of B. The Zacks Consensus Estimate for the current-year FFO per share moved up 5.1% over the last 60 days. The stock has a dividend yield of 9.02%. You can seethe complete list of today’s Zacks #1 Rank stocks here.Host Hotels & ResortsHST, based in Bethesda, MD, is one of the leading lodging REITs engaged in the ownership, acquisition and redevelopment of luxury and upper-upscale hotels in the United States and abroad. Host Hotels & Resorts carries a Zacks Rank #2 (Buy), at present, and has a VGM Score of A. The Zacks Consensus Estimate for the ongoing year’s FFO per share inched up 0.6%, in 30 days’ time. The stock has a dividend yield of 4.33%.San Francisco, CA-basedPrologisPLD is a leading industrial REIT that acquires, develops, operates and manages industrial properties in the United States and across the globe. This Zacks #2 Ranked stock generated an average positive surprise of 1.02% in terms of FFO per share, over the trailing four quarters. Reflecting upbeat sentiments, the Zacks Consensus Estimate for 2019 FFO per share climbed 1.6% to $3.22 over the past two months. The stock has a dividend yield of 2.60%.Glendale, CA-basedPS Business ParksPSB is into ownership, acquisition, development and operation of commercial real estate properties, especially multi-tenant industrial, flex and office space. The REIT is poised to excel as the industrial real estate market is witnessing improving fundamentals amid growth of e-commerce business and supply-chain strategy transformations. It carries a Zacks Rank of 2, at present. Additionally, PS Business Parks’ Zacks Consensus Estimate for the ongoing year’s FFO per share jumped 1.5% to $6.71 in a month’s time. The stock has a dividend yield of 2.60%. The stock has a dividend yield of 2.38%.Here is the year-to-date price performance of each of the above stocks:
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 reportArbor Realty Trust (ABR) : Free Stock Analysis ReportPrologis, Inc. (PLD) : Free Stock Analysis ReportPS Business Parks, Inc. (PSB) : Free Stock Analysis ReportHost Hotels & Resorts, Inc. (HST) : Free Stock Analysis ReportGeo Group Inc (The) (GEO) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Streaming startup YouNow files cryptocurrency offering with SEC
YouNow, the live streaming startup backed by Union Square Ventures, hasfileda public offering for its Props token with the SEC, Reutersreports. Props tokens are the native token of Props, the decentralized digital video ecosystemlaunchedby YouNow in 2017.
According to Reuters, YouNow does not intend to raise funds from the token sale. Instead, the company will be qualifying the distribution of its tokens in order to reward users in the Props ecosystem. Additionally, YouNow will also distribute Props tokens to "persons developing key apps or otherwise contributing to network development efforts." According to the filing, YouNow will be distributing 178 million tokens in total. According to ablog postpublished on Tuesday by the Props Project, YouNow's SEC filing "would enable Props to build one of the first consumer-focused token networks in the world that give users a financial stake in the network they help grow, and to do so in a fashion compliant with US regulations." |
EU nations aim high with plan to tax air travel
By Geert De Clercq and Daphne Psaledakis
PARIS/BRUSSELS (Reuters) - The Netherlands and France are trying to convince fellow European nations at a conference in The Hague to end tax exemptions on jet fuel and plane tickets, as part of a drive to make the EU carbon neutral by 2050.
In the first major initiative on air travel tax in years, the conference on Thursday and Friday - which will be attended by about 29 countries - will discuss ticket taxes, kerosene levies and value-added tax (VAT) on air travel.
The Netherlands wants to agree on steps towards ending the near complete lack of taxation on air travel and France is also pushing for an end to tax breaks on jet fuel, as European leaders discuss carbon neutrality at a separate summit in Brussels..
"The new president of the commission will have to present plans for the fight against climate change in Europe. It is a no-brainer that the possible contribution of the aviation sector will be put on his agenda in the first week in office," Dutch deputy finance minister Menno Snel told Reuters.
The conference will be attended by European Union economics commissioner Pierre Moscovici and finance and environment ministers. The goal is to present conclusions to the new European Commission, which will be sworn in this autumn.
If no EU deal is found, the Netherlands plans to introduce a 7.50 euro ticket tax for departing passengers from 2021.
Friends of the Earth estimates that between 1990 and 2016, aviation emissions more than doubled, while overall emissions fell by 43%.
A combination of low aviation taxes, a proliferation of budget airlines and the rise of Airbnb have led to a boom in intra-European city-trips.
KEROSENE TAX HAVEN
The conference organisers hope that higher taxes will lead to changes in consumer behaviour, with fewer people flying and choosing less carbon-intensive transport options instead.
Research has shown that if the price of air travel goes up by one percent, demand will likely fall by about one percent, according to IMF tax policy division head Ruud De Mooij.
He said that in a typical tank of gas for a car, over half the cost is tax, which not only compensates for CO2 emissions but also for congestion, accidents and road maintenance.
"Airline travel is nearly entirely exempt from all tax, despite having many externalities of its own. Ending its undertaxation would level the playing field versus other modes of transport," he said.
Introducing a kerosene levy could be the quickest way to restore the tax imbalance that has given airplane travel a huge cost advantage over cars and trains, activists say.
Environmental NGOs such as Transport and Environment (T&E) have long criticised the EU for being a "kerosene tax haven".
"Europe is a sorry story. Even the U.S., Australia and Brazil, where climate change deniers are in charge, all tax aviation more than Europe does," T&E's Bill Hemmings said.
The US, Australia and Japan charge excise duty on jet fuel according to a European Commission report on aviation tax released this month. But not a single EU country taxes kerosene although a 2003 EU directive allows countries to agree bilaterally to tax fuel on flights between them.
"It's really strange: emissions at high altitude are more dangerous than emissions on the ground, but we tax them on the ground and not in the sky," Swedish Finance Minister Magdalena Andersson told Reuters.
Snel said that, contrary to popular belief, the 1944 Chicago Convention does not block countries from taxing kerosene - only from taxing fuel already in a plane's tanks upon landing.
FRYING THE PLANET
The EU report shows that just six out of 28 EU member states levy ticket taxes on international flights, with Britain's rates by far the highest at about 14 euros for short-haul economy flights and up to 499 euros for long-haul business class.
French ticket taxes are as low as 1 euro for short-haul economy and 45 euros for long-haul business class, while EU-wide the average weighted tax per passenger is around 11 euros.
This compares with an average 15 euros in the US and as much as 30-40 euros in Australia, Mexico and Brazil.
Tickets for flights between EU cities are exempt from VAT in all EU countries, but 23 EU member states charge VAT on domestic flights at rates ranging from 3% in Luxembourg to 27% in Hungary with an average weighted EU VAT of 4 euros per ticket.
Introducing VAT on intra-EU flights would require agreement from the 28 EU member states, and is widely seen as an unlikely outcome in The Hague.
At a subdued Paris Airshow this week, it was evident that environmental pressures are being felt by the aerospace industry which is looking at options such as biofuel and new technology like electric planes.
The International Civil Aviation Organisation (ICAO) is also developing the CORSIA carbon offset scheme, under which airlines would fund cuts to CO2 emissions elsewhere.
Friends of the Earth says there are no easy answers and that the only way to reduce airline CO2 emissions is by constraining aviation trough taxation, frequent flyer levies and limiting the number of flights at airports.
"Flying is the fastest way of frying the planet," T&E's Hemmings said.
(Additional reporting by Tim Hepher in Paris and Bart Meijer in The Hague; Writing by Geert De Clercq; Editing by Elaine Hardcastle) |
Markets Rally In Wake Of Fed, Central Bankers Turn Dovish, Trade Hopes Rise In Asia
The U.S. futures are pointing to a moderately higher open in early Thursday trading. The Dow Jones Industrials lag the market with a move of 0.85% while the S&P 500 and NASDAQ lead. The S&P 500 is up about 0.95%, the NASDAQ Composite about 1.30%, on what the market perceived as a more-dovish than expected policy statement from the FOMC. The FOMC hinted at possible rate cuts later this year and the first could be as early as July. The CMEs Fed Watch Tool is now indicating a 100% chance of rate cut at the next meeting.
The statement and Jerome Powell’s remarks during the press conference sent the yield on the ten-year Treasury below 2.0%. This is the lowest level for the mid-duration U.S. bond in three years. The dollar also saw some big moves in the wake of the FOMC meeting that trimmed more than 1.0% off the Dollar Index over the last 24 hours. The tech-sector saw the biggest gains following the policy release. Lower interest rates mean lower borrowing costs for businesses and that will fuel stock buybacks later this year. Shares of FAANG stocks are up more than 1.0%.
In economic news employment data remains firm although expansion within the manufacturing sector has slowed. Initial jobless claims came in at 216,000, 4,000 below expectations, and down from the previous week. The Philly Fed’s Manufacturing Business Outlook Survey came in at 0.3%. This is the lowest level since February and reflects a downshift in new orders and shipments. Employment levels remain strong near 15.5 but fell 3 points over the last month.
Central bank activity has been hot over the past 24-hours. Not only did the FOMC meet but the BOE and BOJ met as well. Both the BOE and BOJ held rates unchanged, both the BOE and BOJ also cited mounting risks to domestic and global economies. This sentiment is in lockstep with the ECB’s new pledge to stimulate the economy and points to policy easing worldwide. The DAX shot up more than 1.0% intraday to set a 9-month high, it is trading up about 0.80% at midday. The French CAC and UK FTSE 100 are both up about 0.65%.
In Brexit news, the field of candidates to replace Theresa May is cut to two. Frontrunner Boris Johnson is said to retain a substantial lead over the number two candidate. In stock news, tech leads the market with an average gain near 1.8%, Travel & Leisure lags with a loss of -1.3%. Shares of Delivery Hero shot up 10% and to the top of the ranks after it upped full-year guidance.
Asian markets are broadly higher following the Fed’s dovish policy switch. The move is aided by renewed optimism for a trade deal that has the Shanghai Composite up 2.4% for Thursday’s session. The Hang Seng follows the closest, up 1.25%, while most other indices in the region closed with gains between 0.30% and 0.65%. The word out of Beijing is that talks will happen at the G-20, the talk out of Washington is that talks will start before the G-20. In both cases, officials are upbeat about the situation although traders are cautioned not to expect too much.
Thisarticlewas originally posted on FX Empire
• GBP/USD Weekly Price Forecast – British pound bounces
• Silver Weekly Price Forecast – Silver markets retire during week
• USD/JPY Weekly Price Forecast – US dollar breaks support
• Natural Gas Price Prediction – Prices Bounce Friday, but Tumble 8% for the Week
• Gold Price Forecast – Gold markets press major resistance barrier
• EUR/USD Weekly Price Forecast – Euro shows strength during the week |
UK central bank holds rates amid Brexit, trade uncertainty
LONDON (AP) — The Bank of England kept its main interest rate on hold at 0.75% on Thursday and warned that a combination of Brexit worries and global trade tensions was weighing on growth. All nine members of the Monetary Policy Committee backed the decision to not change rates. There had been some expectations in the markets that a couple of them could vote for an increase because of concerns that rising wages will push up inflation. However, figures this week showed the annual inflation rate fell to the bank's target of 2%, easing pressure to raise rates. Also, uncertainty surrounding Britain's departure from the European Union remains despite a Brexit deadline extension and are keeping a lid on growth. Only around 20% of respondents to a Bank of England survey think Brexit uncertainty will be resolved by the end of this year. Though Britain's departure date from the EU has been pushed back to Oct. 31, there is still huge uncertainty as to whether the country will leave then. The Conservative Party contest to replace Prime Minister Theresa May has meant there's been little progress on Brexit in recent months and concerns are rising that Britain could crash out without a deal on future relations with the EU. The favorite, Boris Johnson, has indicated that he's prepared to go ahead with a 'no-deal' Brexit. Most economists, including those at the Bank of England, think that leaving without a deal will cause huge damage to the British economy as trade with the EU is hit by tariffs and other disruptions. "Domestically, the perceived likelihood of a no-deal Brexit has risen," rate-setters said in the minutes to the policy meeting. They also said that trade tensions have intensified and that economic growth is set to stall in the second quarter following a 0.5% pickup in the first three months. In its forecasts last month, the bank had projected growth of 0.2% in the second quarter. The main economic impact of Britain's June 2016 vote to leave the EU has been a sharp fall in business investment as executives became cautious over what Brexit will mean in practice. Story continues "Surveys suggested that companies expected uncertainty to persist at elevated levels, and there were no clear signs that investment growth would pick up ahead of the October Brexit deadline," rate-setters said. Overall, the British economy has held up better than anticipated since the Brexit vote. Growth has continued at modest levels and unemployment has fallen to a 45-year low of 3.8%. Wages are rising at their fastest rate since before the global financial crisis. Rate-setters suggested that wage "growth rates might have levelled off," but also that inflation is likely to fall further over coming months. Longer-term, all hinges on Brexit. Everything is possible, from a 'no-deal' Brexit to another referendum that sees Britain remaining in the EU. The Bank of England retains its stance that the country will leave in an orderly manner. If that happens, it's possible that interest rates will rise. However, rate-setters said they would go up "at a gradual pace, and to a limited extent." The rate-setters comments on Thursday mean that few, if any, experts think the central bank will be raising rates before the Brexit deadline. That was reflected in the pound's retreat on Thursday, from $1.2720 to around $1.2680. "We think it is unlikely the bank will hike rates this year," said James Smith, developed markets economist at ING. "Domestically, uncertainty is likely to remain elevated — particularly given that we see an increasing probability of a general election later in the year." |
Cleveland Cavaliers' Kevin Love on ratings: 'Players run this league'
In today’s NBA, superstars drive victories. And according to five-time All Star Kevin Love, they drive ratings, too.
“As far as ratings, I think it’s definitely a players-driven league,” Love, who plays for the Cleveland Cavaliers, told Yahoo Finance recently.
He made the comments to Editor-in-Chief Andy Serwer in a conversation that aired on Yahoo Finance in an episode of “Influencers with Andy Serwer,” a weekly interview series with leaders in business, politics, and entertainment.
Serwer noted to Love that the NBA Finals’ ratings were down on averagefrom years past, as this was the first year that LeBron James hadn’t competed in the NBA’s premier event since 2010. Serwer asked Love whether the league would always need superstars to keep up good ratings.
Love, wholamentedinjuriesto the Golden State Warriors’ Kevin Durant and Klay Thompson during the Finals, believes that the Association’s biggest stars drive ratings and profitability of the NBA, and that this is a good thing.
“Players run this league, I feel like, especially premier players,” Love said. “And that continues to—or needs to continue to trend in the right direction.”
This year’s NBA Finals was a six-game affair played between May 30 and June 13, with the Toronto Raptors ultimately besting the Golden State Warriors 4-2. The series did see a downturn in ratings, although the competitive games five and six helped to offset some of that negative trend. Games five and six had slightly more viewers than any game in the 2018 Finals, which lasted only four games and had an average of 17.56 million viewers per game.
The first four games of the 2019 Finals averaged 13.35 million viewers while the last two averaged 18.68 million viewers. In the last decade, game seven of the 2016 Finals had the highest viewership numbers, with 31.02 million tuning in to watch LeBron James, Kyrie Irving, and Kevin Love overcome a 3-1 deficit to bring a championship to Cleveland. 2019 was the first time since 2010 that the Finals did not feature LeBron James.
Although Love’s Cavaliers sputtered to the second-worst record in the Association this year, he is no stranger to the big stage or to playing with superstars. He joined the Cavaliers before the 2014-2015 season and paired with LeBron as a physical presence down low. He’s won an NBA Championship and an Olympic Gold Medal and has averaged 18.3 points and 11.3 rebounds per game over an 11-year career. Love, 30, came to the Yahoo Finance studios to talk business and his personal journey amid rumors that hemay be on the movethis offseason.
Calder McHugh is an Associate Editor at Yahoo Finance. Follow him on Twitter:@Calder_McHugh.
Trump, Sanders embrace competing versions of economic populism
There's a gap between jobs and job-seekers, and a housing crisis is making it worse
The jobs report is even worse than it looks in these six sectors
These US industries could take the heaviest hit from new tariffs
Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,SmartNews,LinkedIn,YouTube, andreddit. |
Micron (MU) to Post Q3 Earnings: Disappointment in Store?
Micron Technology Inc. MU is set to report third-quarter fiscal 2019 results on Jun 25. Notably, the company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing the same once, the average positive surprise being 1.72%. In the last reported quarter, the company’s non-GAAP earnings per share of $1.71 lagged the Zacks Consensus Estimate of $1.73 and also declined from the year-ago quarter’s figure of $2.82. Moreover, revenues dropped around 21% on a year-over-year basis to $5.84 billion and fell shy of the Zacks Consensus Estimate of $5.92 billion too due to higher-than-expected fall in DRAM and NAND pricing. Notably, seasonality, weak smartphone and enterprise server sales, inventory adjustments with several key customers, pause in cloud hardware spending and Intel’s CPU shortages adversely impacted the company’s performance. Consequently, the company’s issuance of a tepid guidance for the fiscal third quarter makes us apprehensive about its performance. Estimates and Guidance for Q3 Micron projected revenues for third-quarter fiscal 2019 at around $4.8 billion (+/- $200 million). The Zacks Consensus Estimate is currently pegged at $4.72 billion, suggesting a drop of almost 39.4% from the year-ago reported figure. The company envisions non-GAAP earnings per share to be roughly 85 cents (+/- 10 cents). The consensus mark for earnings currently stands at 80 cents, indicating a plunge of 74.6% from the prior-year reported number. Micron Technology, Inc. Price and EPS Surprise Micron Technology, Inc. Price and EPS Surprise Micron Technology, Inc. price-eps-surprise | Micron Technology, Inc. Quote Factors at Play Micron’s third-quarter fiscal 2019 results are likely to be hurt by a perpetual reduction in DRAM and NAND flash pricing due to oversupply and lower-than-expected growth in end-market demand. Higher level of customer inventory in the cloud, graphics and enterprise market is a key threat. Moreover, soft server demand from several enterprise OEM customers is a concern. Story continues Additionally, worse-than-expected CPU shortages coupled with macroeconomic uncertainties are likely to pose key challenges to the company in the soon-to-be-reported quarter. Notably, Micron’s overexposure in China makes the U.S-China trade war a major overhang on the company. Moreover, starting mid-May, the company suspended chip shipments to Huawei, which accounted for nearly 13% of its revenues in the last two quarters, in response to the export ban imposed by the U.S. government. However, considering the timing of the ban, it remains to be seen how much impact it has on the company’s performance in the soon-to-be-reported quarter. Amid such challenges, the company’s focus on increasing the mix of high-value solutions in its portfolio is a tailwind. On the last earnings call, management mentioned that more than two-thirds of NAND revenues in the first half of fiscal 2019 were from high-value solutions, soaring 55% over the same period last year. We expect strong growth in managed NAND products to boost its Mobile Business Unit revenues in the fiscal third quarter. What Our Model Predicts The proven Zacks model conclusively shows that a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has maximum chances of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Micron carries a Zacks Rank of 5, which lowers the predictive power of ESP, and an Earnings ESP of -7.42% in the combination, which decreases the odds of a likely positive surprise for the stock this time around. Stocks With Favorable Combination Here are a few stocks worth considering as our model shows that these have the perfect mix of elements to beat on earnings in the upcoming releases: Applied Materials, Inc. AMAT has an Earnings ESP of +0.14% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here . Alteryx, Inc. AYX has an Earnings ESP of +22.41% and a Zacks Rank of 2. Verizon Communications Inc. VZ has an Earnings ESP of +4.35% and a Zacks Rank #3. 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 report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Alteryx, Inc. (AYX) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research |
Geospatial Corporation Announces New Chief Executive Officer and Appointment of Additional Directors
PITTSBURGH, PA / ACCESSWIRE / June 20, 2019 /Geospatial Corporation (GSPH) (the ''Company'' or ''Geospatial'') today announced the appointment of David Truitt as its new Chief Executive Officer and Chairman of the Board of Directors and the addition of Troy Taggart, the Company's President, to the Board of Directors.
Mr. Truitt has over 30 years of professional experience with growing technology services companies, as well as software/product development companies. Mr. Truitt is the founder, President and CEO of privately held Discover Technologies, an information technology firm that provides innovative products and services to the Federal government and large commercial businesses since 2010. Prior to founding Discover Technologies, Mr. Truitt was the founder, President and CEO of privately held MicroLink LLC., a federal government IT contracting firm which was sold in 2010. Mr. Truitt graduated of the University of North Carolina with Bachelor of Arts degrees in Economics and Industrial Relations. Mr. Truitt has been a shareholder of Geospatial since 2012.
Mr. Taggart, has served as the Company's President since 2013, overseeing strategy and business development. He previously held executive and senior-level positions with several financial services firms prior to co-founding McKim and Company (formerly VentureRound), a boutique investment banking firm. Mr. Taggart also served as Executive Vice President of Bacterin International from 2008 through 2012, a publicly traded company focused on the development of medical devices. Mr. Taggart graduated from Rollins College with a degree in Psychology and minor in Business Administration.
''I am excited on behalf of all of our stakeholders to be able to lead the next stage of growth of Geospatial. We believe our underground mapping solutions are world-class, and our GeoUnderground technology platform is a game-changer for clients looking to track their existing and new infrastructure assets. A lot of money is being invested in ''smart infrastructure'' throughout many industries, but especially interesting to us is the development of the ''digital oilfield'', said David Truitt, Chairman & CEO of Geospatial. He further noted, ''I have been a significant shareholder for quite some time, and I want to thank all of the executives who have worked hard to get us to this point. I think we are now going to be entering a higher growth stage and my team is eager to execute on the numerous opportunities ahead of us.''
About Geospatial Corporation
Geospatial Corporation services the underground infrastructure needs of the energy industry, as well as the municipal, industrial and commercial industries and utilizes integrated technologies to determine the accurate location and position of underground pipelines, conduits and other underground infrastructure data allowing Geospatial to create accurate three-dimensional (3D) digital maps and models of underground infrastructure. The Company manages this critical infrastructure data on its cloud-based GIS portal called GeoUnderground, our proprietary GIS platform custom designed around the Google Maps API. Our website iswww.GeospatialCorporation.com.
About GeoUnderground
GeoUnderground, designed around the Google Maps API, is Geospatial's cloud-based GIS platform that provides clients with a total solution to their underground and aboveground asset management needs. Geospatial is a Google Cloud - Technology Partner. Please feel free to download a free trial of GeoUnderground from this website -www.GeoUnderground.com.
Forward Looking Statements
This press release contains forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1993 and Section 21E of the Securities Exchange Act of 1934 and is subject to the safe harbor created by those laws. These forward-looking statements, if any, are based upon a number of assumptions and estimates that are subject to significant uncertainties that involve known and unknown risks, many of which are beyond our control and are not guarantees of future performance. Actual outcomes and results could materially differ from what is expressed, implied, or forecasted in any such forward-looking statements and any such difference may be caused by risk factors listed from time to time in the Company's news releases and/or its filings or as a result of other factors.
SOURCE:Geospatial Corporation
View source version on accesswire.com:https://www.accesswire.com/549278/Geospatial-Corporation-Announces-New-Chief-Executive-Officer-and-Appointment-of-Additional-Directors |
The Chef Behind the Worlds No. 1 Restaurant Wants to Teach You How to Cook
For those looking to improve their skill in the kitchen, theres an extremely energetic Italian chef willing to help out. Massimo Bottura , of the worlds No. 1 restaurant, Osteria Francescana , is offering his first ever online cooking course through MasterClass , and Robb Report has an exclusive first look at the trailer. To me, cooking is an act of love, Bottura says. In my MasterClass, we will reimagine cooking. Ill teach you how to develop your own palate and bring to life your creativity and emotions through your dishes. I hope to ignite a similar passion I have for cooking in each and every one of my MasterClass students. Related stories Osteria Francescana Declared the World's Best Restaurant for 2018 How One of the World's Greatest Chefs Is Fighting Hunger and Food Waste at the Same Time Glimpse Inside Massimo Bottura's New Restaurant with Gucci Bottura and Osteria Francescanas sous chef Takahiko Kondo will teach the basics of modern Italian cooking through in-depth instruction of 12 traditional dishes that Bottura has put his twist on, including tortellini, breadcrumb pesto, pumpkin risotto, panettone soufflé and tagliatelle al ragu. I want to teach you the way to evolve classic recipes from traditional Italian cuisine and bring them into the future. Along the way hell share his ethos on food, including ways to cook that will reduce food waste. That project has been especially important to him. At the 2015 Milan Expo, he built a refettorio a place where he could feed the hungry by calling on some of the worlds best chefs to help him develop recipes using ingredients that would normally be thrown away, like bruised fruit or food scraps. Thats where he created the breadcrumb pesto, a delicious recipe he discovered when he didnt have enough pine nuts for the classic sauce and found that breadcrumbs made a delicious alternative. Botturas lessons join other MasterClass culinary coaches Thomas Keller, Wolfgang Puck, Alice Waters , Gordon Ramsay , Aaron Franklin and Dominique Ansel . Each class is $90 or an annual $180 pass gets you access to all the food courses, plus any of the other MasterClasses, like Aaron Sorkin on screenwriting or Annie Leibovitz on photography. Sign up for Robb Report's Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram . |
Volatility 101: Should Ambow Education Holding (NYSEMKT:AMBO) Shares Have Dropped 32%?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
The simplest way to benefit from a rising market is to buy an index fund. Active investors aim to buy stocks that vastly outperform the market - but in the process, they risk under-performance. For example, theAmbow Education Holding Ltd.(NYSEMKT:AMBO) share price is down 32% in the last year. That's well bellow the market return of 5.0%. However, the longer term returns haven't been so bad, with the stock down 15% in the last three years. The share price has dropped 42% in three months. This could be related to the recent financial results - you can catch up on the most recent data by readingour company report.
Check out our latest analysis for Ambow Education Holding
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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).
Unhappily, Ambow Education Holding had to report a 53% decline in EPS over the last year. This fall in the EPS is significantly worse than the 32% the share price fall. So the market may not be too worried about the EPS figure, at the moment -- or it may have expected earnings to drop faster.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
Before buying or selling a stock, we always recommend a close examination ofhistoric growth trends, available here..
Ambow Education Holding shareholders are down 32% for the year, but the market itself is up 5.0%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 5.4% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. Before deciding if you like the current share price, check how Ambow Education Holding scores on these3 valuation metrics.
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. |
Probes and squeezed profits change the oil trading game
By Julia Payne and Dmitry Zhdannikov
GENEVA/LONDON (Reuters) - For the world's biggest oil traders, it feels like a return to the 1980s when earnings were diluted by an abundance of crude.
After three decades of stellar expansion and booming revenues, profit margins at Vitol, Glencore, Trafigura, Gunvor, Mercuria and other merchants have been squeezed by a market again awash with crude and amid stiff competition from national oil firms.
A raft of high-profile U.S. probes into trading activities are also shaking up the business, echoing the transformation that followed the 1983 U.S. indictment of Marc Rich, the godfather of global oil trading.
Veteran executives, many of whom learned the trade in the Marc Rich era, say only the fittest firms will survive the new crisis.
"I've been hearing arguments about the death of trading for the past 30 years. But the reality is: there are those who adapt and those who disappear," Gunvor CEO Torbjorn Tornqvist said.
He said companies have always had to change with the market, such as adapting to the development of futures. But last year was particularly tough.
Vitol, Mercuria, Gunvor, Trafigura and the oil trading division of Glencore made a combined net profit of about $3.2 billion in 2018 on the back of $747 billion in revenues, compared with a combined profit of $5 billion in 2015 on revenues of $511 billion.
Consulting firm Oliver Wyman said trading margins fell more than 20% last year from a peak in 2015.
"We estimate margins could likely decline by at least another 15% over the next five years as commodity markets become more stable and more transparent and competition becomes more intense," it said in a report this year.
Executives say consolidation is inevitable, as rising market transparency means companies have fewer opportunities to exploit quality or timing dislocations between producers and end-users to win deals outside of exchanges or futures markets.
FEELING THE PINCH
While bigger trading firms can absorb the weaker profits, smaller companies are racing to find savings and cut staff.
Monaco-based Galaxy Energy has quit the crude trading business, while mid-ranking ECTP exited oil and most metals trading. Castleton Commodities International axed its physical metals business globally and its London oil desk.
Gunvor Group, one of the top five independent oil traders, lost money for the first time last year although it was back in the black in the first quarter of 2019. It is considering asset sales.
Even state-run firms have felt the pinch. Azerbaijan's Socar Trading closed some refined products desks and shrank others.
Other companies aim to adapt by scaling up and boosting profits by trading bigger volumes. Swiss-based ArrowMetals said last month it was buying AOT Energy.
Increased transparency thanks to ship tracking and satellite imagery of key infrastructure, such as refineries and storage, has eroded the amount of proprietary information trading firms could once rely upon to give them an edge.
"Traders traditionally live on imperfections of the market. Digital technologies are erasing a lot of these opportunities," Tornqvist said, although he said technology boosted efficiency.
Trading houses are now investing in artificial intelligence and other technology to process the enormous amount of data available.
Vitol, the world's biggest oil trader, lifted traded volumes by a third in the last five years but added just 15% more staff. However, IT staff numbers rose by 60%.
"Classical research just isn't enough," said Gerard Delsad, Vitol's chief information officer.
RIVALS BEEF UP
Adding to the challenge, state-owned firms, scarred by the oil price rout between 2014 and 2016, want a bigger share of oil sale revenues. National firms in Saudi Arabia, Iraq, Abu Dhabi and Algeria are all working to expand their marketing arms.
Some oil majors also eye the action. U.S. giant ExxonMobil is beefing up its trading division. BP and Shell are already major rivals to the trading houses.
Meanwhile, old business ways, such as relying on agents, also known as intermediaries, to set up contracts between state suppliers and buyers, have become a focus of investigations.
U.S. Department of Justice, securities regulator CFTC and the Federal Bureau of Investigation (FBI), as well as Swiss and Brazilian prosecutors, have opened a range of probes into the use of intermediaries by several trading houses. The companies say they are cooperating with the authorities.
The extra scrutiny has encouraged more investment in compliance.
"You have to audit the intermediaries as if they were in your own companies if you want to be compliant with the guidance from the U.S. Department of Justice," said a senior commodities trading executive with decades of experience.
Gunvor said it had reduced the number of agents it uses by a third since 2018. Trafigura Chief Executive Jeremy Weir said this year the firm had also cut the number of agents it uses.
"The industry and others have beefed up compliance," Mercuria Group Chief Executive Marco Dunand said. "Investing in IT makes it easier to control potential legal issues."
"We educate people with monthly programmes," he said, adding Mercuria spent $10 million to $15 million a year on compliance.
Dunand also said his head of compliance sat next to him, adding it was no help if compliance officers "are miles away."
Probes and thinning margins are spurring leadership transitions at many companies, executives say.
"The new generation now have to make money. That's why they want to take over. They want the rich old dogs out of the way," said a large shareholder at a major trading house.
(Reporting by Julia Payne and Dmitry Zhdannikov; Editing by Edmund Blair) |
Here's Why Investing in Honeywell (HON) Now Makes Sense
Honeywell International Inc.HON has impressed investors with its recent earnings streak, having surpassed estimates all through in the four trailing quarters, with a positive average earnings surprise of 3.50%.
Over the past three months, the company has gained 12.2%, outperforming the industry’s growth of 1.6%.The company’s share price increase reflects its impressive performance, exhibiting investor optimism over the stock.
The stock currently carries a Zacks Rank #2 (Buy).We believe that its notable traction across markets will drive growth in the upcoming quarters.
Factors to Consider
Honeywell is well poised to gain from robust global demand for sensors, guidance systems, original equipment shipment volumes and higher spares volumes. Also, strong demand for commercial fire and security products, particularly in India and China, is likely to drive revenues of the company’s Building Technologies segment. Further, it believes that solid demand for its warehouse automation, sensing and IoT businesses will boost Safety and Productivity Solutions’ revenues.
Moving ahead, Honeywell expects that its profitability will be driven by greater operational excellence and share buyback programs. For 2019, the company anticipates earnings in the range of $7.90-$8.15 per share compared with $7.80-$8.10 guided earlier.
Also, the company has progressed with its portfolio transformation strategy, having declared spin-off dividends of shares of Resideo. Honeywell has also completed the divestment of Garrett Motion Inc. In 2018, the company reorganized its operating segments by divesting Transportation Systems business and the Homes and ADI Global Distribution business. In addition, it acquired the German company — Transnorm — in November 2018. These initiatives will help it concentrate on high-growth industrial businesses, which will boost sales.
Moreover, the company’s cash position is impressive, as evident from 55% year-over-year increase in cash flow from in first-quarter 2019. Also, for 2019, it expects to generate strong cash flow of $6 billion.
In addition, analysts have become increasingly bullish on Honeywell. In the past couple of months, the Zacks Consensus Estimate for both 2018 and 2019 earnings has trended up.
Other Key Picks
Some other top-ranked stocks in the same space are Federal Signal Corporation FSS, ITT Inc. ITT and Crane Company CR. All these stocks carry a Zacks Rank #2. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Federal Signal pulled off average positive earnings surprise of 21.75% in the trailing four quarters.
ITT delivered positive average earnings surprise of 7.02% in the trailing four quarters.
Crane pulled off average positive earnings surprise of 6.74% in the trailing four quarters.
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 reportHoneywell International Inc. (HON) : Free Stock Analysis ReportFederal Signal Corporation (FSS) : Free Stock Analysis ReportCrane Company (CR) : Free Stock Analysis ReportITT Inc. (ITT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Ultragenyx & Arcturus Therapeutics Expand Existing Agreement
Ultragenyx Pharmaceutical, Inc.RARE and Arcturus Therapeutics Holdings Inc. ARCT expanded their existing collaboration to discover and develop mRNA, DNA and siRNA therapeutics for up to 12 rare disease targets. Pursuant to the agreement, Ultragenx will pay $30 million of upfront payments to Arcturus, including $6-million cash for collaboration agreement amendment and a $24-million equity investment at $10 per share. Ultragenyx has an option to purchase an additional 600,000 shares of Arcturus’ common stock at $16 per share
Arcturus is entitled to preclinical, clinical, regulatory and sales milestone payments for each product developed under the collaboration. Under the amended license agreement, certain early-stage milestone payments are reduced and the total potential milestone payments are increased due to the expanded number of targets. Arcturus is also entitled to reimbursement of related research expenses and royalties on commercial sales.
With the agreement, Ultragenyx becomes Arcturus’ largest shareholder. With the expansion in agreement, Ultragenyx’s mRNA platform will strengthen and be further expanded to potentially treat more diseases. The company’s most advanced mRNA program, UX053, for the treatment of Glycogen Storage Disease Type III is expected to move into the clinic in 2020.
Shares of Ultragenyx have surged 45.5% year to date compared with the industry’s growth of 6.2%.
The original collaboration and license agreement between the companies was signed in October 2015. The companies have been working together to develop mRNA therapeutic candidates for certain rare disease targets.
Arcturus is an RNA medicines company with enabling technologies — LUNAR lipid-mediated delivery and Unlocked Nucleomonomer Analog (UNA) chemistry — and mRNA drug substance along with drug product manufacturing.
Ultragenyx Pharmaceutical Inc. Price
Ultragenyx Pharmaceutical Inc. price | Ultragenyx Pharmaceutical Inc. Quote
Zacks Rank and Stocks to Consider
Ultragenyx currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Anika Therapeutics Inc. ANIK and Applied Genetics Technologies Corp. AGTC. Both the stocks carry a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Anika’s earnings per share estimates have moved up from $1.21 to $1.31 for 2019 and from $1.21 to $1.33 for 2020 in the past 60 days. The company delivered a positive earnings surprise in the trailing four quarters, with average beat of 72.00%.
Applied Genetics’ loss per share estimates have narrowed from $1.25 to 1 cent for 2019 and from $2.39 to $2.15 for 2020 in the past 60 days. The company delivered a positive earnings surprise in three of the trailing four quarters, with average beat of 83.47%.
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 reportUltragenyx Pharmaceutical Inc. (RARE) : Free Stock Analysis ReportApplied Genetic Technologies Corporation (AGTC) : Free Stock Analysis ReportAnika Therapeutics Inc. (ANIK) : Free Stock Analysis ReportAlcobra Ltd. (ARCT) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
COLUMN-As tensions rise, U.S. plan for Iran is unclear: Peter Apps
(The opinions expressed here are those of the author, a columnist for Reuters)
By Peter Apps
LONDON, June 20 (Reuters) - When Barack Obama was preparing his fight for a second term as U.S. president in 2012, his administration was preoccupied with two big foreign policy crises.
The first was the potential unravelling of the euro zone, which his team worried could cause an economic shock and cost him the White House. The second was the possibility that Israel would launch a military strike against Iran over its nuclear programme and trigger a regional conflict with politically damaging consequences for Obama.
It was, in many respects, an uninspiring, managerial approach, a criticism that has been levelled at his administration's overall foreign policy. But unlike Donald Trump's presidency, Obama's administration unambiguously tried to keep the United States at the heart of broad, consensus-based coalitions - and nowhere was that more clear than in its dealings with Iran. Under Trump, and particularly since the appointment of long-term hawk John Bolton as National Security Advisor, the United States has been taking a tough line with Tehran. Washington has withdrawn from the agreement between six world powers and Iran on curbing Tehran's nuclear programme, has listed the Islamic Revolutionary Guard Corps as a foreign terrorist organisation and made high profile military moves in the Middle East.
What is less clear, including to Tehran, is what the current administration truly means to do, or what effect it means to have when it comes to Iran.
There is little doubt that Bolton and many of those around him would like to oust the government in Tehran. Conducting an Iraq-style invasion and "regime change", however, is not a reasonable prospect. The United States is simply stretched too thin, Iran is too large and the record of the Iraq and Libya interventions means few believe it would make the region a better and more stable place.
U.S. forces remain the most powerful military in the region and several of America's regional allies, notably Israel, Saudi Arabia and the United Arab Emirates, would like to see Iran receive a bloody nose. This might even extend to them encouraging the United States to conduct a limited military strike – perhaps against Iranian nuclear facilities as Tehran resumes uranium enrichment, or coastal bases that are deemed to be connected to attacks on oil tankers in the Gulf in recent weeks.
What such action would achieve, however, is hard to say. Any loss of Iran’s military or nuclear capability would be limited, and such action would almost certainly do more to boost hardliners in Tehran and sideline more moderate voices.
The May tanker attacks also serve as a potent reminder of the likely costs of any such action. Tehran has spent much of the past decade building the capability, with missiles and small boat attacks, to close the Gulf to shipping during any major conflict, a move that would bring chaos to global markets, dealing a potentially devastating blow to Trump’s re-election hopes.
For now, the signs are that Tehran intends to counter, and retaliate for, any punitive move by Washington, especially any designed to freeze Iranian oil exports. The announcement of resumed uranium processing is a clear indication that Tehran no longer feels bound by the nuclear deal it concluded with world powers now that the United States has withdrawn from it. The tanker attacks appear to fit in with that strategy though it is striking how sceptical much of the rest of the world has been about U.S. attempts to paint Tehran as responsible for them.
Burned by the example of military intervention in Iraq, and with their electorates highly distrustful of Trump, governments in continental Europe clearly wish to avoid entanglement. Most are still committed to the nuclear deal and view the face-off as one largely of Washington's own making.
European governments are frustrated by the lack of clarity about what the United States really wants. In contrast to during the face-off with North Korea two years ago, there seems no immediate strategy of bringing Iran to the table for a new, amended deal. Indeed, if that was the hope, recent U.S. actions have almost certainly made it more distant.
Clearly, the United States would like Iran to scale back its interventions across the Middle East, where Tehran has become increasingly powerful, particularly in the conflicts in Yemen, Syria and Iraq. But if that is the message, the approach seems too reliant on brute force to achieve its aims.
It is likely that the more threatening the United States becomes, the more set Iran will be on programmes such as missile development.
The Trump administration’s actions on Iran could be largely about demonstrating that it is taking action, helping shore up Republican votes for the 2020 U.S. presidential election. But escalating tensions without a strategy would be dangerous, particularly if Iran chose to do the same.
Therein lies perhaps the greatest risk of miscalculation. As Iran believes the United States lacks the stomach for a fight, Tehran will almost certainly take much greater risks – at worst igniting the war all sides have been so desperate to avoid.
Like Obama seven years ago, Trump may be just realising that conflict with Iran could cost him a second term. To handle the current situation, however, America will need both a plan and range of global friends. Right now, it is unclear whether it has either.
*** Peter Apps is a writer on international affairs, localisation, conflict and other issues. He is the founder and executive director of the Project for Study of the 21st Century; PS21, a non-national, non-partisan, non-ideological think tank. Paralysed by a war-zone car crash in 2006, he also blogs about his disability and other topics. He was previously a reporter for Reuters and continues to be paid by Thomson Reuters. Since 2016, he has been a member of the British Army Reserve and the UK Labour Party, and is an active fundraiser for the party. (Editing by Timothy Heritage) |
DaVita Divests DMG to Optum, Boosts Kidney Care Services
DaVita Inc.’s DVA Medical Group unit has been sold to Optum for $4.3 billion. This is expected to improve Davita’s major Kidney Care business, fortifying its foothold in the global renal care market.
Following the announcement, shares of DaVita rose 2% to close at $51.27 on Jun 19.
More on the Acquisition
The divestment, announced in late 2017, was subjected to regulatory approval and other customary closing conditions. Also, the results of DMG’s business operations have been reported as discontinued.
Notably, DaVita Medical Group (“DMG”) has now become part of OptumCare — a sub-segment of Optum — the acquiring company’s health services segment. The combination aims to improve care quality and patient satisfaction through ambulatory care delivery systems enabled by information technology and supportive clinical services.
Resultantly, DaVita will continue to own and operate its U.S. and international Kidney Care businesses.
How Does DaVita Stand to Gain?
Completion of the DMG divestment will now enable DaVita to focus on its Kidney Care wing, a significant contributor to the company’s top line. In fact, in the last reported quarter, the segment generated $382 million of revenues.
As an operating division of DaVita, DaVita Kidney Care focuses on setting worldwide standards for clinical, social and operational practices in kidney care. The latest development will boost the segment’s key services like in-center hemodialysis, home hemodialysis, peritoneal dialysis, kidney transplant, urology, diabetology and vascular access surgery.
Notably, the company has focused on expanding its Kidney Care business through continuous acquisition of dialysis centers and businesses. In fact, in the recent past, the company opened a 150,000 square-foot campus for DaVita Labs in DeLand, FL, with a view to serve DaVita dialysis clinics and their patients, marking its only laboratory in the United States. (Read More: DaVita Kidney Care Opens 150000-Square-Foot Campus in DeLand)
Market Prospects
Market Research Future opines that the global renal disease care market will reach a worth of $93.38 billion by 2023, at a CAGR of 6.3%.
The rising prevalence of kidney diseases, diabetes, hypertension and rapid growth in the geriatric population have led to growth in the global renal disease market in recent years.
Price Performance
We believe that strategic divestments and lucrative market prospects will boost the Zacks Rank #3 (Hold) company’s shares, which slipped 28.9% compared with the industry’s 19.5% decline in a year’s time. The current level also compares unfavorably with the S&P 500 index’s 4.7% rally.
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%.
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 reportMasimo Corporation (MASI) : Free Stock Analysis ReportDaVita Inc. (DVA) : Free Stock Analysis ReportDENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis ReportCONMED Corporation (CNMD) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
What Should Celgene's Investors Do With Everything Bristol-Meyer Squibb Is Giving Them?
WithBristol-Myers Squibb's(NYSE: BMY)acquisition ofCelgene(NASDAQ: CELG)expected to close in the third quarter, Celgene's investors have to make a decision: whether to sell now or take $50 in cash plus a share in Bristol-Myers Squibb and aCVRfor each share of Celgene they own.
At this point, Celgene's shares are trading at a little under Bristol-Myers' share price plus $50, meaning the CVR is essentially a free kicker. Of course, if the CVR isn't worth that much, investors can just sell now and move on if they're not interested in becoming shareholders of Bristol-Myers.
Let's look at how to value the CVR.
CVRs allow shareholders of the selling company to share in future success, while the buyer gets some protection from the risk of future failure; they're often used in negotiations of biotech acquisition deals in order to arrive at a price both sides can agree to.
Image source: Getty Images.
In Celgene's case, according to a document filed with the Securities and Exchange Commission, Bristol-Myers Squibb offered one share and $57, but pulled back the offer.
The companies eventually settled for one share and $50 plus the CVR that will pay $9 if the following three drugs are approved by the Food and Drug Administration:
[{"Drug": "Ozanimod", "Disease": "Relapsing multiple sclerosis", "Approval Deadline": "Dec. 31, 2020", "Status": "Marketing application accepted; FDA decision expected on or before March 25, 2020"}, {"Drug": "Liso-cel (JCAR017)", "Disease": "Relapsed-refractory diffuse large B cell lymphoma", "Approval Deadline": "Dec. 31, 2020", "Status": "Transcend (NHL-001) study successful; collecting long-term data; plans to submit marketing application in second half of 2019, setting up an FDA decision in mid-2020"}, {"Drug": "Idecabtagene vicleucel (ide-cel, bb2121)", "Disease": "Relapsed/refractory multiple myeloma", "Approval Deadline": "March 31, 2021", "Status": "Pivotal KarMMa study fully enrolled; plans for approval in second half of 2020"}]
Data source: Celgene
Unlike many CVRs, where the individual components have different values tied to each event, Celgene's CVR is an all-or-nothing contract. Either all three drugs are approved by their respective deadlines and each CVR pays $9 or the CVR is worthless.
Remember all those probability questions about different colored marbles in a bag in middle-school math? This is where it finally pays off.
If you were opting to accept the CVR today, you would want to determine the risk-adjusted fair value of that $9. To do that, you need to determine the likelihood of each drug's approval and apply those three percentages to the $9.
But first, since the CVR won't be paid out until after the last drug is approved, which could be almost two years from now, investors should also factor in a discount to allow for the time that's lost while the money could be invested elsewhere, using the formula inthis article.
For example, if you'd expect an 11% annual return elsewhere for the same type of investment, assuming 2 years left, the $9 payment would be discounted to $7.30. Now we can proceed to the next step in determining the fair value of this CVR: adjusting for the likelihood of each drug's approval.
Image source: Getty Images.
Deciding what percentage to assign for the likelihood of approval for each drug is substantially harder.
First, there's ozanimod. With positive phase 3 data in hand, ozanimod seems to be the most likely to be approved. But Celgene's investors will recall the FDArefused to acceptthe marketing application for this drug, because the agency said Celgene hadn't fully characterized how a metabolite (a breakdown product of the drug) might affect patients. Celgene ran experiments that it believes will convince the FDA that the metabolite isn't an issue, but that history adds uncertainty even though the efficacy data looks good enough for an approval.
The FDA accepting the marketing application for review is a good step, but it's possible that the metabolite is characterized enough for the agency to accept the application, but once reviewed, the FDA decides that it still wants more data to be convinced the byproduct isn't a problem.
Call it a 75% chance of approval for ozanimod.
Next, there's liso-cel. The data for this drug is compelling, with 46% of patients maintaining a complete response at six months according to data released last June. Celgene delayed submitting the data so it could have nine-month data for all patients, but the company said that was for commercial reasons, as a longer follow-up would help it compete with other chimeric antigen receptor T-cell (CAR-T) therapies:Gilead Sciences' Yescarta andNovartis' Kymriah.
Manufacturing is a risk for all FDA approvals, but it's inflated for liso-cel, which requires taking patients' immune cells, manipulating them, and then putting them back into the patients. It appears Celgene has any manufacturing kinks worked out, with 99% of patients who had their cells removed being able to be treated. But manufacturing remains a black box to investors, and there's no telling what minor issues the FDA might find that lead to a delay in an approval.
Call it a conservative 70% chance of approval for liso-cel.
And last is ide-cel, another CAR-T drug, which is partnered withbluebird bio(NASDAQ: BLUE). Ide-cel is further behind, but there's reason to believe the drug is likely to succeed in the KarMMa trial. In a phase 1 study of 33 patients who had failed other treatments, ide-cel produced an 85% objective response rate, with 45% of patients having a complete response and 27% of patients achieving a very good partial response.
Considering these are late-stage patients, if the pivotal KarMMa study produces data anywhere close to the phase 1 response rates, an approval is likely. Like liso-cel, investors should take into account the aforementioned caveat about manufacturing.
Call it a 60% chance of approval for ide-cel.
Applying my estimations to the discounted rate of $7.30, the CVR's value can be calculated as follows:
$7.30 x 0.75 x 0.70 x 0.60 = $2.30
• Bristol-Myers Squibb plans to list the CVRs on a stock exchange, so investors should be able to trade them, up until they're paid out or they expire as worthless. The value of the CVR should go up as each drug is approved. Even strong additional clinical-trial data from liso-cel or ide-cel could drive the price of the CVR higher if investors see a higher likelihood of approval for one of the drugs.
• Bristol-Myers is allowed to repurchase the CVRs, potentially for pennies on the dollar. In theory, that should produce a floor for the valuation that's related to what Bristol-Myers perceives as the likelihood of approval, although there are no guarantees that it would decide that's the best use of its cash.
More From The Motley Fool
• 10 Best Stocks to Buy Today
• The $16,728 Social Security Bonus You Cannot Afford to Miss
• 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own)
• What Is an ETF?
• 5 Recession-Proof Stocks
• How to Beat the Market
Brian Orellihas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Bluebird Bio, Celgene, and Gilead Sciences. The Motley Fool has adisclosure policy. |
What Kind Of Shareholder Appears On The Alithya Group Inc.'s (TSE:ALYA) Shareholder Register?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Every investor in Alithya Group Inc. (TSE:ALYA) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'
With a market capitalization of CA$206m, Alithya Group is a small cap stock, so it might not be well known by many institutional investors. In the chart below below, we can see that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholder can tell us about ALYA.
See our latest analysis for Alithya Group
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Alithya Group already has institutions on the share registry. Indeed, they own 51% of the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Alithya Group's earnings history, below. Of course, the future is what really matters.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Alithya Group. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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 Alithya Group Inc.. In their own names, insiders own CA$11m worth of stock in the CA$206m company. It is good to see some investment by insiders, but I usually like to see higher insider holdings. It might be worth checkingif those insiders have been buying.
The general public, with a 32% stake in the company, will not easily be ignored. 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.
Private equity firms hold a 11% stake in ALYA. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow.
Ultimatelythe future is most important. You can access thisfreereport on analyst forecasts for the company.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Why Japan’s Biggest Messenger is Launching a Crypto Exchange For 80 Million Users
Japan's biggest messaging platform is reportedly close to receiving a license to launch a crypto exchange. | Source: Shutterstock By CCN Markets : Line, the most widely utilized messaging application in Japan with more than 80 million users is set to receive approval from Japan’s Financial Services Agency as early as June to launch a crypto exchange, according to a Bloomberg report . In July 2018, Line launched a crypto exchange called “BITBOX” in Singapore with the intent of integrating LINK, the Line ecosystem’s native crypto asset. BITBOX, a crypto exchange operated by Line in Singapore BITBOX, a crypto exchange operated by Line in Singapore (source: Line) BitMax, Line’s new crypto exchange awaiting for an approval from local financial authorities, will launch in Japan to facilitate trades for local users. BITBOX has disallowed Japanese users from trading since its launch. Line up: Conglomerates are diving head first into crypto In 2019, many of the world’s largest financial institutions, technology conglomerates, and corporations from a wide range of industries have introduced various plans to enter the crypto market. Read the full story on CCN.com . |
Factbox: Gold miners' rocky road in Colombia
BOGOTA (Reuters) - Canada's Continental Gold is on track to open a mine in Colombia in 2020 that will be the country's first large-scale underground gold project in years.
Other multinational mining companies looking to kick off similar projects in Colombia have struggled amid legal, financial and licensing troubles and environmental and community objections.
The following is a breakdown of challenges faced by gold miners in the Andean nation.
ANGLOGOLD ASHANTI
AngloGold Ashanti Ltd was forced to abandon its $2 billion La Colosa mine after a 2017 community vote banned mineral extraction.
The vote came amid a wave of environmentally focused anti-mining referendums that spooked investors. The constitutional court later ruled referendums cannot halt energy projects because the country's subsoil is national property.
Earlier this year the company was forced by a local mayor in Antioquia province to halt a soil study at its Quebradona copper exploration, before a provincial environmental authority ruled work could continue.
The company's Gramalote gold project, which is in planning stages, could produce between 350,000 and 450,000 ounces per year, AngloGold says.
ECO ORO
Canada's Eco Oro Minerals Corp sued the Colombian government after its Angostura project in Santander province was cut in half by a 2014 constitutional court ruling that expanded wetland protections.
The company is suing for $764 million in damages in ongoing arbitration. It has said it has already invested some $250 million in Colombia, including in Angostura.
RED EAGLE
Vancouver-based Red Eagle Mining Corp had predicted its San Ramon mine, in mineral-rich Antioquia province, would produce up to 50,000 ounces of gold in 2018, but the company was forced to shutter the project amid a restructuring negotiation.
In November $38 million of equity financing meant to enable an operations restart fell through and the company was served with a default notice.
MINESA
Minesa, owned by the government of Abu Dhabi through its investment arm Mubadala Investment Corp, is waiting for environmental licenses for the $1 billion Soto Norte project in Santander province.
The miner plans to eventually produce some 410,000 ounces of gold per year, but has struggled to develop positive relationships with the community around the proposed project.
The company's chief executive caused a minor scandal this year after Colombian media released video of him saying local opposition to the mine is unimportant if Bogota authorities grant the license.
(Reporting by Julia Symmes Cobb; Editing by Marguerita Choy) |
U.S. labor market on solid ground; manufacturing struggling
By Lucia Mutikani
WASHINGTON (Reuters) - 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.
But the outlook for the economy continues to darken. Other data on Thursday showed factory activity in the mid-Atlantic region stalled in June, likely reflecting a recent escalation in trade tensions between the United States and China.
The trade war has increased uncertainty over the U.S. economic outlook, prompting the Federal Reserve on Wednesday to signal it could cut interest rates by as much as half a percentage point over the rest of this year. The U.S. central bank kept rates unchanged on Wednesday.
"Solid labor market conditions supporting a strong consumer sector provides a solid base underneath the economy," said Jim Baird, chief investment officer at Plante Moran Financial Advisors in Kalamazoo, Michigan.
Initial claims for state unemployment benefits dropped 6,000 to a seasonally adjusted 216,000 for the week ended June 15, the Labor Department said. Economists polled by Reuters had forecast claims would decrease to 220,000 in the latest week.
The Labor Department said no states were estimated. The drop in claims followed three straight weekly increases. Claims are being closely watched for signs of a rise in layoffs stemming from the trade dispute.
The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, rose 1,000 to 218,750 last week.
The claims data covered the survey period for the nonfarm payrolls component of June's employment report. The four-week average of claims was little changed between the May and June survey periods. Still, economists expect payrolls to pick up in June after increasing by 75,000 jobs in May.
Fed Chairman Jerome Powell on Wednesday acknowledged the meager job gains in May and said "in light of recent developments this bears watching," but also noted that "many labor market indicators remain strong."
The dollar was trading lower against a basket of currencies as investors digested the Fed's signal that it would ease monetary policy. Stocks on Wall Street rallied, with the S&P 500 index hitting a record intraday high. U.S. Treasury prices rose.
SLOWING ECONOMY
Claims have been roughly flat this year, indicating some easing in labor market conditions. Job growth has cooled from the brisk pace in 2018 in line with the economy, which is slowing as the stimulus from last year's massive tax cuts and increased government spending fades.
"The recent flattening out in the data could be viewed as a negative change in momentum," said Daniel Silver, an economist at JPMorgan in New York. "But at least the recent trade developments haven't led to a noticeable increase in filings for unemployment insurance."
The Atlanta Fed is forecasting gross domestic product will rise at a 2.0% annualized rate in the second quarter. The economy grew at a 3.1% pace in the January-March quarter, boosted by a temporary burst in exports and an accumulation of inventories.
The surge in exports, together with a decline in imports, helped to shrink the current account deficit in the first quarter to $130.4 billion from $143.9 billion in the fourth quarter, the Commerce Department said in a separate report on Thursday.
Exports, however, tumbled in April in response to softening global demand. Weak exports and an inventory overhang, especially in the automotive sector, are hobbling manufacturing.
Bottlenecks in the supply chain resulting from the U.S.-China trade war are also squeezing manufacturing, which accounts for about 12% of the economy.
A third report on Thursday from the Philadelphia Fed showed its business conditions index dropped to a reading of 0.3 in June from 16.6 in May. There were decreases in measures of new orders, employment and shipments.
A gauge of prices received by manufacturers in the region tumbled to near a three-year low this month. A measure of prices paid by factories was also the lowest in nearly three years. These findings support expectations that inflation will remain muted this year.
The sharp braking in manufacturing in the region that covers eastern Pennsylvania, southern New Jersey and Delaware was the latest indication that national factory activity continues to slow. A report from the New York Fed earlier this week showed a record plunge in its Empire State manufacturing index to more than a 2-1/2-year low in June.
But there are some rays of hope for manufacturing. The Philadelphia Fed survey's six-month business conditions index rose to a reading of 21.4 this month from 19.7 in May. Its six-month capital expenditures index increased to 28.0 from a reading of 23.3 in the prior month.
"We continue to expect manufacturing reacceleration," said Samuel Coffin, an economist at UBS in Stamford, Connecticut. "Confidence has declined, but we saw signs of an upturn in the last industrial production report."
(Reporting by Lucia Mutikani; Editing by Paul Simao) |
The Only Pure-Play Marijuana Dividend Stock Upped Its Payout for a Second Straight Quarter
The marijuana industry is a lot of things. It's a potentially once-in-a-generation growth opportunity for investors, withup to $75 billion in full-year salesexpected by the time 2030 rolls around. This rapid sales growth is a big reason more than a dozen marijuana stocks now have market caps that top $1 billion.
It's also an industry with plenty of built-in risks considering that very few pot stocks are currently profitable, and that regulatory red tape has substantially held back the Canadian weed industry since recreational marijuana was legalized in October.
Image source: Getty Images.
However, one thing the marijuana industry is not (at least yet) is an income generator. Although there are marijuana stocks that pay a dividend, these companies aren't what we'd consider "pure plays."
For instance,Scotts Miracle-Grogenerated 13% of its previous fiscal-year sales from its subsidiary, Hawthorne Gardening, which supplies lighting, soil, nutrient, and hydroponic solutions to the North American cannabis-growing industry. Although Scotts pays out a 2.5% yield, it still generates the bulk of its revenue from its lawn, garden, and crop-care products.
Likewise,Molson Coors Brewingis in the process of developing a line of nonalcoholic cannabis-infused beverages via itspartnershipwith Quebec-basedHEXO. This partnership, known as Truss, will be rolling out its line of beverages as soon as Health Canada gives the OK within the next four months. But when taken as a whole, Molson Coors, despite a 3% dividend yield, reels in most of its sales from alcoholic beverages. Although it's a marijuana play, it's not what we'd call a pure play.
This is an industry unlikely to see much in the way of income plays given that most operating income, at least for the foreseeable future, will be reinvested into capacity expansion, marketing, brand building, product development and diversification, and international expansion. Since dividends are most often paid out by companies with slowing growth prospects, cannabis stocks probably aren't the best bet to generate income. But there are exceptions to this rule.
Image source: Getty Images.
Right now there's onlyone pure-play marijuana dividend stock:Innovative Industrial Properties(NYSE: IIPR).
Last week, Innovative Industrial Properties -- the very first cannabis play to debut on a major U.S. exchange, via an initial public offering on the New York Stock Exchange in December 2016 -- announced its second-quarter dividend. The new distribution of $0.60 per share represents a33% increase from the sequential first-quarter payout, and marks the second consecutive quarter that the company has lined its shareholders' pockets with more income. Here's a brief history of its dividend growth since going public (the month listed represents when the dividend was issued):
• July 2017:$0.15 per share
• October 2017:$0.15
• January 2018:$0.25
• April 2018:$0.25
• July 2018:$0.25
• October 2018:$0.35
• January 2019:$0.35
• April 2019:$0.45
• July 2019:$0.60
At $2.40 on an annualized basis, Innovative Industrial Properties is now yielding closer to 2%, up from around 1.5%.
Image source: Getty Images.
The reason Innovation Industrial Properties, or IIP as it's also known, is the perfect marijuana income play has to do with its business classification as areal estate investment trust(REIT).
REITs acquire land and building assets within a specific industry or sector with the intent of leasing out these properties for an extended time in order to generate rental income. In IIP's case, it acquires land, cultivation farms, and processing facilities for the cannabis industry, then leases these assets out for a long time.
The advantage of being a REIT is that the net income isn't taxed at the normal corporate rate. Rather, REITs receive special tax treatment as long as they return a substantial portion of their net income to investors in the form of a dividend. Generally speaking, the more profitable a REIT becomes, the more money shareholders will receive on a per-share basis in the form of a dividend.
As for IIP, it currently has 21 properties in its asset portfolio spanning 11 states, which includes the acquisition of six properties in California just since 2019 began. The weighted-average remaining lease spanning these assets is 15.1 years, with an average current yield on its more than $210 million in invested capital of 14.7%. In layman's terms, this just means that the company should have a complete payback on its invested capital in less than five years.
It's worth pointing out that IIPalso offers very modest organic growth opportunities. Its lease contracts include a 3.25% annual rent increase, as well as a 1.5% management fee that's based on the base rental rate (which rises by 3.25% a year).
Image source: Getty Images.
Taking into account this modest organic growth rate, as well as the ability to acquire new properties and thereby grow its net operating income, it might appear that nothing can stop Innovative Industrial Properties. But shareholders and prospective buyers should be mindful of one key expansionary tactic of REITs: share-based dilution.
Despite being incredibly profitable, and fully expected to remain that way, IIP has cash flow from operations that is nowhere near sufficient to fund its aggressive expansion tactics. In order to grow its asset portfolio, IIP isgoing to need to turn to common-stock issuancesto raise capital for future purchases. Issuing stock is a really common tactic for REITs to raise cash, but as with all share-based issuances, it can hurt existing shareholders.
It's also worth pointing out that having more shares outstanding can also slow dividend growth on a per-share basis.
To boot, Wall Street views it as one of the cannabis industry'smost overvalued companiesat the moment. The Street's price target on the company is a mere $85.50, yet we witnessed shares push to north of $125 this week. Although Wall Street can be just as fallible as any retail investor, this disparity is certainly worth taking note of.
There's nothing to suggest that Innovative Industrial Properties can't continue to succeed. But this exponential rise in its share price, even with a growing dividend, is unlikely to continue.
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 owns shares of Molson Coors Brewing. The Motley Fool recommends HEXO. and Innovative Industrial Properties. The Motley Fool has adisclosure policy. |
Cardiol Therapeutics Announces Plans for Orphan Drug Program in Acute Myocarditis with CardiolRx CBD Formulation
Oakville, Ontario--(Newsfile Corp. - June 20, 2019) - Cardiol Therapeutics Inc. (TSX: CRDL) (OTCQX: CRTPF) ("Cardiol" or the "Company"), a leader in the research and commercial development of pharmaceutical cannabidiol (CBD) and targeted therapies for heart disease, is pleased to announce that the Company is planning an international clinical trial in acute myocarditis utilizing its CardiolRx CBD formulation.
CardiolRx is Cardiol's pure pharmaceutically-produced CBD. Designed to be the safest and most consistent formulation on the market, CardiolRx is cGMP certified and does not contain any THC. The Company plans to commercialize CardiolRx pharmaceutical CBD during 2019 in the billion-dollar market for medicinal cannabinoids in Canada and is pursuing market introduction opportunities in Europe and Latin America. Cardiol's acute myocarditis program provides a unique opportunity to build brand awareness in support of this commercial launch and is being designed by an independent Steering Committee comprised of thought leaders in cardiology from North America and Europe.
Acute myocarditis is characterized by inflammation of the heart muscle (myocardium). The most common cause is viral infection of the heart tissue which is initially responsible for the inflammation. In most cases, the virus clears, and inflammation subsides, but in a significant number of cases the inflammation persists with ongoing myocardial damage and depressed heart function. Although the symptoms are often mild, myocarditis remains an important cause of acute and fulminant heart failure and is the most common cause of sudden cardiac death in people less than 35 years old. In addition, some patients proceed to develop chronic dilated cardiomyopathy which continues to be the leading indication for cardiac transplantation. Although viral causes of myocarditis are the most common, myocarditis can result from a broad range of infections and can be caused by drugs including chemo-therapeutic agents used to treat several common cancers. Symptoms include chest pain, fatigue, shortness of breath, and arrhythmias. Myocarditis damages heart cells, reducing overall heart function as measured by left ventricular ejection fraction such that the heart does not pump sufficient blood to meet the needs of the body.
Based on the large body of experimental evidence of the powerful anti-inflammatory activity of CBD in models of cardiovascular disease, Cardiol believes there is a significant opportunity to develop a potential breakthrough therapy for acute myocarditis that would be eligible for designation as an orphan drug. In the United States, an orphan drug designation is granted for pharmaceuticals being developed to treat medical conditions affecting fewer than 200,000 people. These conditions are referred to asorphan diseases. The assignment of orphan status to a disease and to drugs developed to treat it is a matter ofpublic policyin many countries and has yielded medical breakthroughs that might not otherwise have been achieved. In the U.S. and the European Union, orphan drugs are eligible for accelerated marketing approvals and companies developing orphan drugs typically receive other incentives, including a prolonged period of market exclusivity that can extend over seven years, during which the drug developer has sole rights to market the drug.
"The U.S. orphan drug program was successfully utilized to accelerate the first FDA approval of CBD for the treatment of rare forms of pediatric epilepsy and significant shareholder value was created in the process," stated David Elsley, President and CEO of Cardiol Therapeutics. "Given the mortality and the significant morbidity risk associated with acute myocarditis, we believe there is a similar opportunity in pursuing an expedited development program of our CardiolRx pharmaceutical CBD formulation for this serious orphan disease which has no accepted standard of care."
About Cardiol Therapeutics
Cardiol Therapeutics Inc. (TSX: CRDL) (OTCQX: CRTPF)is a leader in producing 100% pure pharmaceutical CBD and developing groundbreaking therapies for heart disease. The Company is focused on commercially launching the safest and most consistent CBD products for consumers and healthcare providers in the multi-billion-dollar medicinal cannabinoid markets. Cardiol is utilizing nanotechnologies designed to deliver CBD and other anti-inflammatory drugs for the treatment of heart failure. Heart failure is a leading cause of death and hospitalization in North America, with associated healthcare costs exceeding US$30 billion annually in the U.S. alone. For further information about Cardiol, please visit the Company's website atwww.cardiolrx.com.
For further information, please contact:
David Elsley, President & CEO905.491.6793david.elsley@cardiolrx.com
Trevor Burns, Investor Relations905.491.6791trevor.burns@cardiolrx.com
Cautionary statement regarding forward-looking information:
This news release contains "forward-looking information" within the meaning of applicable Canadian securities laws which may include, but is not limited to, statements with respect to: future events; the future performance or the intended business strategy of Cardiol Therapeutics Inc. ("Cardiol"); the potential for Cardiol's licensed drug encapsulation and delivery technologies to enhance the bioavailability of pharmaceuticals; management's expectations regarding estimated future pharmaceutical research and development opportunities, collaborations and prospects; the success and proposed timing of Cardiol's product development activities, including, but not limited to, the proposed timeline of Cardiol's product candidate pipeline for commercial introduction; the ability of Cardiol to develop its product candidates; Cardiol's plans to research, discover, evaluate and develop additional products; Cardiol's proposed future collaborations to advance Cardiol's lead nanoformulations into clinical development; and the potential for Cardiol's cannabinoid-based products to provide sources of future revenue. All statements, other than statements of historical fact, that address activities, events or developments that Cardiol believes, expects or anticipates will, may, could or might occur in the future are "forward-looking information".
Forward-looking information is frequently identified by the use of words such as "plans", "expects", "projects", "intends", "believes", "anticipates", "forecasts", and other similar words and phrases, including variations (and negative variations) of such words and phrases, or may be identified by statements to the effect that certain
actions, events or conditions "may", "could", "should", "would", or "will" be taken, occur or be achieved. Forward-looking information contained herein reflects the current expectations or beliefs of Cardiol based on information currently available to it and is subject to a variety of known and unknown risks and uncertainties and other factors that could cause the actual events or results to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. These risks and uncertainties and other factors include that the success of Cardiol's product candidates will require significant capital resources and years of clinical development efforts; the results of clinical testing and trial activities of Cardiol's products; Cardiol's ability to obtain regulatory approval and market acceptance of its products; Cardiol's ability to raise capital and the availability of future financing; Cardiol's lack of operating history; unforeseeable deficiencies in the development of Cardiol's product candidates; uncertainties relating to the availability and costs of financing needed in the future for Cardiol's research and development initiatives;
Cardiol's ability to manage its research, development, growth and operating expenses; the potential failure of clinical trials to demonstrate acceptable levels of safety and efficacy of Cardiol's product candidates; Cardiol's ability to retain key management and other personnel; risks related to fluctuations in medicinal cannabinoid markets
in Canada and worldwide; uncertainties regarding Cardiol's ongoing collaborative and manufacturing partnerships; uncertainties regarding results of researching and developing products for human use; Cardiol competes in a highly competitive and evolving industry; Cardiol's ability to obtain and maintain current and future intellectual property protection; and other risks and uncertainties and factors. These risks, uncertainties and other factors should be considered carefully, and investors should not place undue reliance on the forward-looking information. Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Cardiol disclaims any intent or obligation to update or revise such forward-looking information, whether as a result of new information, future events or results or otherwise. Although Cardiol believes that the expectations reflected in these forward-looking statements are reasonable, they do involve certain assumptions, risks, and uncertainties and are not (and should not be considered to be) guarantees of future performance. It is important that each person reviewing this news release understands the significant risks attendant to the operations of Cardiol.
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45767 |
SYNNEX (SNX) to Report Q2 Earnings: What's in the Cards?
SYNNEX Corporation SNXis slated to release second-quarter fiscal 2019 results on Jun 25.
Notably, the company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 5.99%.
In the last reported quarter, the company delivered non-GAAP earnings of $2.84 per share, which surged 33.3% from the year-ago period and also beat the Zacks Consensus Estimate of $2.75.
Revenues of $5.3 billion matched the Zacks Consensus Estimate but increased 17% year over year. Adjusted for foreign exchange, revenues rose 18% in the quarter.
What to Expect in Q2
For the fiscal second quarter, SYNNEX expects revenues in the range of $5.4-$5.7 billion. The Zacks Consensus Estimate is pegged at $5.53 billion, suggesting 11.3% improvement from the figure reported in the year-ago quarter.
Non-GAAP earnings per share are projected in the band of $2.62-$2.78. The Zacks Consensus Estimate stands at $2.71, indicating 13.9% growth from the prior-year reported number.
SYNNEX Corporation Price and EPS Surprise
SYNNEX Corporation price-eps-surprise | SYNNEX Corporation Quote
Let’s see how things are shaping up for this announcement.
Factors to Consider
SYNNEX’s second-quarter fiscal 2019 results are likely to benefit from solid demand across its portfolio of products and services. The company is also performing well in all the end markets including the SMB.
Moreover, acquisitions and partnerships are helping it expand its product portfolio. The company’s buyout of Covergys last October is likely to be a key consistent driver in the soon-to-be reported quarter as well. Further, new business wins backed by its burgeoning footprint and the enhanced capabilities of its new consolidation are likely to be the key catalysts.
In the fiscal second quarter, Technology Solutions segment is envisioned to perform within seasonal norms. Growth in the underlying market and channel as the company focuses on incremental revenue opportunities is encouraging. Stability in Hyve business is a positive too.
However, the company anticipates a slight sequential drop in its revenues and adjusted profitability margins in the soon-to-be-reported quarter due to seasonality in Concentrix revenues as well as in profitability.
What Our Model Says
The proven Zacks model clearly indicates that a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has good chances of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
SYYNEX has a Zacks Rank #3, which increases the predictive power of ESP. However, its Earnings ESP of 0.00% in the combination makes surprise prediction difficult for the stock in its upcoming quarterly results.
Stocks With Favorable Combination
Here are a few stocks worth considering as our model shows that these have the right combination of elements to beat on earnings in the upcoming releases:
Applied Materials, Inc. AMAT has an Earnings ESP of +0.14% and is a #2 Ranked stock. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Alteryx, Inc. AYX has an Earnings ESP of +22.41% and a Zacks Rank #2.
Verizon Communications Inc. VZ has an Earnings ESP of +4.35% and a Zacks Rank of 3.
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 reportVerizon Communications Inc. (VZ) : Free Stock Analysis ReportSYNNEX Corporation (SNX) : Free Stock Analysis ReportApplied Materials, Inc. (AMAT) : Free Stock Analysis ReportAlteryx, Inc. (AYX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Despite killings, Continental Gold still on track with flagship Colombia mine
By Julia Symmes Cobb
BURITICA, Colombia (Reuters) - Last September, Continental Gold Inc's painstaking efforts to build community support for its gold and silver mine beneath the green skirts of Colombia's Andes suddenly looked vulnerable when gunmen killed four of its employees in two separate attacks.
Now, nine months later, and with upgraded security, the Buritica project is still on track to kick off production next May, with managers acknowledging last year's setback but also confident the venture will prosper.
"Even if it's terrorism you have to accept that you failed. You lost a life you failed, period," Chief Executive Ari Sussman told Reuters last week on the sidelines of a tour of the mine for journalists and investors. "We couldn't have seen this coming but it happened so we've rebuilt our system and brought in new people."
Buritica - whose high-grade ore and hearty output estimates make it a rare find - is shaping up as a key test for the future of large-scale underground mining in Colombia, whose mostly unexplored mineral riches have miners rubbing their hands.
The project also represents a moment of truth for junior miner Continental Gold, which has taken on debt to finance construction and which, like many junior miners, has not turned a profit for years. Buritica will be its flagship, allowing it to possibly overtake Canadian rival Gran Colombia Gold Corp as the country's biggest underground gold miner.
Other multinational gold miners like AngloGold Ashanti Ltd, Eco Oro Minerals Corp, Red Eagle Mining Corp and Mubadala Investment's Minesa have tried and so far failed to mount large-scale, successful underground projects in Colombia, stymied by a smorgasbord of legal, security, environmental and community relations problems.
'A TERRORIST ATTACK'
Continental's efforts to get support from the people of Buritica, population 7,000, were hailed as innovative when the project began. The town's population doubled a decade ago amid a gold rush, which sent illegal mining and violence soaring.
It seemed Continental had found the positive community relationships and security that eluded other multinational miners by partnering with charities on development efforts and providing hundreds of jobs.
Then four employees were killed in a single month - one near Buritica and the others at a different exploration site.
The families of some victims accused Continental of negligence, but the company says it had reacted to local rumors and was planning to evacuate the employees from the exploration site.
"That was a terrorist attack plain and simple. It was the most tragic event that I've ever gone through in my life," Sussman said.
The company hired new security directors and is working harder to gather intelligence, Sussman said. It has paused all exploration outside the Buritica concession until the mine is up and running.
Several former leftist rebels, who did not demobilize under a 2016 peace deal, are being prosecuted for the second attack.
Security looks to be the only factor that could hurt the project, said analyst Paul Harris, organizer of the Colombia Gold Symposium.
"The kind of people that cause those incidents - there's always the outside chance that they'll try and do something like that again," he said.
Several investors in the project, speaking on condition of anonymity, said the situation would need to be much worse before their enthusiasm is dampened.
Continental, 20% owned by Newmont Goldcorp, says the mine is worth $850 million, assuming a gold prices of $1,200 an ounce.
HIGH-GRADE ORE
U.S. gold futures hit a 14-month high of $1,358.04 per ounce during trading this month.
The mine's large vertical deposit is expected to produce between 250,000 and 300,000 ounces of high-grade gold and 460,000 ounces of silver per year for 14 years, Continental says, and the life of the mine may be extended depending on further exploration.
The project's combination of high-grade ore and hundreds of thousands of ounces of potential output make it comparable to well-known high-grade mines like Kirkland Lake Gold Ltd's Macassa in Ontario and Fosterville in Australia.
Other parts of the concession likely contain significant amounts of gold, silver and other minerals, the company says.
"There is a lot of expectation on this project from the whole country," Sussman said. "It's been a Cinderella turn-around story from terror to where it is today - so we need to deliver."
(Reporting by Julia Symmes Cobb; Editing by Helen Murphy, Christian Plumb and Marguerita Choy) |
'Top Gear' confirms Paddy McGuinness and Freddie Flintoff will present new series
'Top Gear' bosses have confirmed that Freddie Flintoff (L) and Paddy McGuinness (centre) will be back to host new episodes in the show's upcoming series (BBC) Looks like Paddy McGuinness and Freddie Flintoff wowed Top Gear bosses when they made their presenting debuts on Sunday 16 June, as they’ve already been confirmed for the next series. Along with returning co-host Chris Harris, the comedian and former cricketer pulled in 2.8 million viewers, which is among the largest audiences the motoring show has earned since it was rebooted three years ago. “The minute the trio started filming bosses saw the spark between them,” a source told The Sun . “They’re really pleased with how it’s started and with all the footage they’ve already got in the can.” Read more: 'Top Gear' paints rainbow flag on cars used for Brunei filming in wake of LGBTQ death penalty laws “They have been warmly received by viewers, too. Ratings are up on last year, which is a good sign. Now Freddie and Paddy have got their feet under the table, the ante will be upped for series two.” The insider revealed to the publication that the next series - which is set to start shooting next month - will see the presenters “go for bolder locations and bigger challenges.” They added: “This should bring great scenes and laughs for the audience.” Between 2002 and 2015, Top Gear was presented by petrolheads Richard Hammond and Jeremy Clarkson. In 2003, James May joined the line-up. But when Clarkson was involved in controversy backstage and eventually dismissed from the show. his fellow presenters stepped down too. In 2016, it was announced that radio star Chris Evans was going to front the new series but when he quit, Friends star Matt Le Blanc stepped in. Read more: I've crashed five times already making 'Top Gear,' admits Freddie Flintoff “He's gutted he couldn't carry on doing it,” Harris told Digital Spy when it was revealed that Blanc could not longer commit to the show after four series as host because of his busy schedule. “It's not because he didn't want to do it - the geography of his life didn't allow him to do it. You could argue he put himself out there for too long to carry on doing it. The travel for him was extraordinary.” Top Gear continues this Sunday at 8pm on BBC Two. |
UPDATE 2-Putin: ready for Trump talks but U.S. elections could complicate ties
(Adds quotes)
By Andrew Osborn and Maria Kiselyova
MOSCOW, June 20 (Reuters) - Russian President Vladimir Putin said on Thursday he was ready to hold talks with Donald Trump if that was what his U.S. counterpart wanted, but added that Trump's re-election campaign could complicate U.S.-Russia relations.
Trump has said he expects to meet Putin at a G20 summit in Osaka, Japan, next week, though Moscow has so far said it has yet to receive a formal invitation for such talks.
U.S.-Russia ties remain strained by everything from Syria to Ukraine and Venezuela, as well as by allegations of Russian interference in U.S. politics, which Moscow denies.
Putin said this month that relations between Moscow and Washington were getting worse and worse.
"Dialogue is always good, there’s always demand for it," said Putin during his annual question-and-answer session when quizzed about talks with Trump.
"Sure, if the American side shows interest ... we are ready for dialogue."
The Russian leader said the two countries had a lot to talk about, including strategic nuclear stability. A landmark arms control treaty is coming up for renewal, while both sides have said they are quitting the 1987 Intermediate-range Nuclear Forces (INF) Treaty, stoking fears of a wider arms race.
Putin said Trump's drive to win another presidential term might complicate the situation, however.
"We all understand and see what is going on in domestic politics in the United States," said Putin. "Even if the president wants to take steps towards us, wants to talk about anything, there are a huge number of limitations.
"Even more so now as the current head of state will make all his statements with his election campaign in mind. He has already started the campaign, so everything will not be simple in our relations," Putin said.
The Russian leader said talks, if they took place, could help re-establish what he called normal relations between Russia and the United States, including on the economy. He also said he wanted the two countries to talks about cyber security. (Additional reporting by Elena Fabrichnaya, Tom Balmforth, Vladimir Soldatkin and Gabrielle Tetrault-Farber and Moscow Bureau Writing by Andrew Osborn Editing by Jon Boyle) |
Have Insiders Been Selling Phivida Holdings Inc. (CNSX:VIDA) Shares?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sellPhivida Holdings Inc.(CNSX:VIDA), you may well want to know whether insiders have been buying or selling.
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
Check out our latest analysis for Phivida Holdings
Over the last year, we can see that the biggest insider purchase was by Director David Moon for CA$903k worth of shares, at about CA$0.85 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.40). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid CA$1.1m for 1.4m shares. But insiders sold 2.1m shares worth CA$1.5m. John Belfontaine divested 2.1m shares over the last 12 months at an average price of CA$0.70. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying.
At Phivida Holdings,over the last quarter, we have observed quite a lot more insider buying than insider selling. David Moon spent CA$993k on stock. But we did see John Belfontaine sell shares worth CA$742k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own CA$1.4m worth of Phivida Holdings stock, about 4.0% of the company. We prefer to see high levels of insider ownership.
It's certainly positive to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. The transactions over the last year don't give us confidence, and nor does the fairly low insider ownership, but at least the recent buying is a positive. Along with insider transactions, I recommend checking if Phivida Holdings is growing revenue. This free chart ofhistoric revenue and earnings should make that easy.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Former NFL Player and Olympic Gold Medalist Ron Brown Joins Vivera Pharmaceuticals' Advisory Board
Newport Beach, California--(Newsfile Corp. - June 20, 2019) -Vivera Pharmaceuticals, Inc., a pharmaceutical company focused on non-addictive pain management, today announces the appointment of Mr. Ron Brown to its Advisory Board. A former NFL player and Olympic gold medalist, Mr. Brown is an entrepreneur who specializes in business development and is an active member of many charitable organizations. His role at Vivera will include developing new business opportunities and building strategic relationships.
"I was attracted to Vivera because of their focus on non-addictive solutions as an alternative to opioids, and because of their passion for helping people in crisis situations," said Mr. Brown, "We're very like-minded. The team believes, as I do, in finishing. When I set out to do something, it gets done."
One only has to look back at Mr. Brown's athletic career to see the truth in that statement. Shortly after attending Arizona State University where Mr. Brown was both a gifted track athlete and football player, he turned down a multi-million dollar contract with the Cleveland Rams to retain his amateur track status. He then competed in the 1984 Olympics where he won a gold medal in the 4 x 100 meter relay. Days later, he signed with the Los Angeles Rams and went on to have an illustrious professional football career. Dedication and big-picture thinking have led him to success both on and off the field.
After retiring from the NFL, Mr. Brown turned his talents towards business where he is a major influencer and mentor in several organizations including Goals For Life, a program that provides training and strategies to at risk youth to set goals for success. Mr. Brown is also involved in the NFL Retired Players Congress, where proceeds help NFL veterans and military veterans in need. The NFL is starting to look at CBD as an alternative non-addictive treatment to reduce pain and inflammation and Mr. Brown believes they are on the right track.
"When you're playing at a professional level there's a lot of pressure to perform, it's what you're being paid to do, and as athletes, we want to give our best effort," added Mr. Brown. "I've seen a lot of players mask pain with opioids so I'm excited to help Vivera in their mission of providing non-addictive alternatives to help manage pain. It's time for a better solution and I believe Vivera has one."
"I've known Ron for a number of years and to have someone as committed to excellence as he is championing for Vivera is amazing," said Paul Edalat, Chairman and Founder of Vivera. "He is a true team player and his ability to motivate people is second to none. It's no wonder he has been so successful in sport, business, and in giving back to the community. It's an honor to have him on our Advisory Board."
Born in California, Mr. Brown graduated from Arizona State University. He competed in the 1984 Summer Olympics in 60 meters, 100 meters, 200 meters, and 4 x 100 meters relay. He then played for the NFL for nine seasons; eight seasons with the Los Angeles Rams and one with the Los Angeles Raiders.
Ron Brown
To view an enhanced version of this graphic, please visit:https://orders.newsfilecorp.com/files/6166/45768_e1b3bd446481bbed_001full.jpg
About Vivera Pharmaceuticals, Inc.
Vivera Pharmaceuticals, Inc. is an innovative, science-driven pharmaceutical company focused on opioid deterrence and cessation and non-addictive solutions for pain management.
In addition to its pharmaceutical and medical device products, the company has global exclusivity to license the patented and patent-pending TABMELT™ sublingual drug-delivery system for the pharmaceutical use of cannabinoid compounds.
Vivera Pharmaceuticals is seeking to conduct case studies and clinical trials on CBD in the TABMELT™ drug delivery format with the goal of gaining FDA approval for its products.
The company is vertically integrated with patented technology, manufacturing capabilities and distribution for its products.
For more information, visithttps://viverapharmaceuticals.com.
Investor Relations Inquiries:thinkHEROPatrick Piette, CFA for Vivera Pharmaceuticals, Inc.416-526-9911investorrelations@viverapharma.com
Press Inquiries:thinkHEROKarin Elz, for Vivera Pharmaceuticals, Inc.416-992-9848press@viverapharma.com
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45768 |
Should Value Investors Buy Essent Group (ESNT) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Essent Group (ESNT). ESNT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
ESNT is also sporting a PEG ratio of 0.89. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ESNT's PEG compares to its industry's average PEG of 1. Over the last 12 months, ESNT's PEG has been as high as 0.93 and as low as 0.61, with a median of 0.83.
We should also highlight that ESNT has a P/B ratio of 1.91. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.23. Over the past year, ESNT's P/B has been as high as 2.11 and as low as 1.38, with a median of 1.79.
Finally, our model also underscores that ESNT has a P/CF ratio of 9.59. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.72. Within the past 12 months, ESNT's P/CF has been as high as 9.64 and as low as 5.90, with a median of 8.33.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Essent Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ESNT feels like a great value stock at the moment.
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 reportEssent Group Ltd. (ESNT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
UPDATE 1-Philly Fed's U.S. Mid-Atlantic business index hit four-month low
(Adds background, details on latest data)
June 20 (Reuters) - The Philadelphia Federal Reserve said on Thursday its gauge on business activity in the U.S. Mid-Atlantic region declined to its lowest level since February, amid trade tensions between the United States and its trading partners.
The regional central bank's index fell to 0.3 in June from 16.6 in May. Analysts polled by Reuters had forecast a reading of 11.0 this month.
A figure above zero suggests the region's business activity is growing.
The weaker-than-expected Philadelphia Fed survey is the second regional central bank report this week, suggesting trade conflicts are taking a toll on U.S. businesses.
On Monday, the New York Federal Reserve said its gauge of business growth in New York state posted a record fall in June to its weakest level in more than 2-1/2 years.
The June Philadelphia Fed report showed a broad deceleration in business activities from May.
"The survey’s indexes for new orders, shipments, and employment remained positive but also declined from their May readings," the regional Fed said in the report. "Most of the survey’s future activity indexes improved but continue to reflect muted optimism for the remainder of the year."
The regional Fed's barometer on new orders fell to 8.3 from 11.0, while its employment gauge slipped to 15.4 from 18.2.
The measure on six-month business outlook, on the other hand, rose to 21.4 from 19.7. (Reporting By Richard Leong Editing by Chizu Nomiyama) |
Balanced Risk-Reward for Keurig Dr Pepper: Stock Up 18% YTD
Keurig Dr Pepper Inc.KDP displayed immense strength, driven by robust retail market performance, with market share gains across all categories. Further, the company’s strategy focused on partnerships and acquisitions bodes well for long-term growth. These efforts have not only aided quarterly outcome but also boosted the share price, with gain of 18.7% recorded in the year-to-date period. This performance is well ahead of the industry’s growth of 13.1% for the same period.
However, like many in the industry, Keurig Dr Pepper is battling headwinds related to the CSD category and higher input costs, particularly for aluminum cans. These along with adverse effects of changes made in its Allied Brands portfolio, negative comparisons resulting from a calendar shift this year and negative currency translations have been impacting the company’s top line. With these headwinds likely to continue through the rest of the year, let’s see how this beverage and coffee company will retain stock momentum.Factors Favoring the StockWe believe the aforementioned initiatives should provide enough support to maintain momentum in the Keurig Dr Pepper stock. Going into details, the company remains focused on partnerships and acquisitions, which form an important part of its growth strategy. Since the completion of the merger, it acquired Big Red and agreed to acquire CORE Hydration, adding these two partner brands to its owned portfolio.Keurig Dr Pepper added Forto Coffee Energy Shots as a new partner and expanded distribution terms with Peet's for ready-to-drink Iced Expresso. It will distribute Forto throughout its network and Peet's, primarily with the help of its network of convenience stores.The company recently signed a long-term agreement to sell, distribute and merchandise the Evian brand across the United States. It also added the iconic Canadian coffee brand, Tim Horton’s, and U.S.-based bakery-cafe brand, Panera, as Keurig partners. Furthermore, it signed an agreement with Met Café in Canada, which was an unlicensed brand previously, and will begin distributing in 2020. Meanwhile, Keurig Dr Pepper exited FIJI Water and BODYARMOR drink brands as part of the recent reorganization of its allied brands.Coming to market share gains, the company reported dollar consumption growth across the majority of its portfolio and KDP holding in the first quarter, with market share gains across all categories. Market share growth in its CSD premium unflavored still water, RTD coffee and shelf stable apple juice portfolios were backed by strength in Dr Pepper and Canada Dry CSD brands, CORE waters, Peet's and Forto RTD coffees, and Mott's apple juice. Further, retail consumption for the single-serve pods manufactured by KDP rose almost in line with category unit growth of 5%.These gains aided the company’s bottom line, which beat estimates and improved year over year in the first quarter. This marked the second beat in the last three quarters.Looking at the future, Keurig Dr Pepper remains on track with long-term targets set out at the time of the merger in July 2018. It continues to anticipate adjusted earnings per share growth of 15-17% in 2019, in line with the long-term target for the 2018-2021 period set at the time of the merger. This brings the company’s adjusted earnings per share guidance to $1.20-$1.22 for 2019. The earnings view for 2019 is supported by net sales growth of about 2%, in line with Keurig Dr Pepper’s long-term sales growth target of 2-3%.It anticipates capturing merger-related synergies of nearly $200 million in 2019, consistent with the long-term target of capturing $200-million synergies every year between 2019 and 2021. Additionally, the company expects significant cash flow generation and rapid deleveraging, targeting leverage ratio of less than 3.0 in two to three years from the closing of the merger.Factors Hindering GrowthKeurig Dr Pepper is no exception to the headwinds arising from sluggish CSD category trends and currency headwinds in the soft-drinks industry. Further, high input costs mainly due to rise in tariffs for aluminum has been hurting the company’s performance. Though it witnessed operating margin growth in the fourth quarter, higher input and logistic costs slightly offset results.Additionally, Keurig Dr Pepper displays a dismal sales history, which persisted in first-quarter 2019. The company missed sales estimates in three of the last four quarters. Sales also declined year over year in the first quarter due to 2.5% adverse effects of changes made in its Allied Brands portfolio, 0.6% negative comparisons resulting from a calendar shift this year and 0.5% negative currency translations. Notably, all of the company’s segments reported sales growth except for the Packaged Beverages segment due to the effects of the aforementioned changes in the Allied Brands portfolio and the calendar shift.ConclusionThe above discussion clearly shows that Keurig Dr Pepper has balanced risk-reward, with its progress on efforts likely to offset hurdles. Further, its Zacks Rank #3 (Hold) and expected long-term earnings growth rate of 15.4% speak well of its growth potential.Don’t Miss These Better-Ranked Beverage StocksMonster Beverage Corp. MNST has a long-term earnings growth rate of 14.3%. The stock presently carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.PepsiCo Inc. PEP, with long-term earnings per share growth rate of 7%, currently carries a Zacks Rank #2.Constellation Brands Inc. STZ, with long-term earnings per share growth rate of 8.6%, also carries a Zacks Rank #2 at present.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 reportConstellation Brands Inc (STZ) : Free Stock Analysis ReportMonster Beverage Corporation (MNST) : Free Stock Analysis ReportPepsico, Inc. (PEP) : Free Stock Analysis ReportKeurig Dr Pepper, Inc (KDP) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Did Changing Sentiment Drive Alimera Sciences's (NASDAQ:ALIM) Share Price Down A Painful 85%?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Long term investing is the way to go, but that doesn't mean you should hold every stock forever. We don't wish catastrophic capital loss on anyone. Anyone who heldAlimera Sciences, Inc.(NASDAQ:ALIM) for five years would be nursing their metaphorical wounds since the share price dropped 85% in that time. Shareholders have had an even rougher run lately, with the share price down 12% in the last 90 days.
While a drop like that is definitely a body blow, money isn't as important as health and happiness.
Check out our latest analysis for Alimera Sciences
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
During five years of share price growth, Alimera Sciences moved from a loss to profitability. That would generally be considered a positive, so we are surprised to see the share price is down. Other metrics may better explain the share price move.
Revenue is actually up 33% over the time period. So it seems one might have to take closer look at the fundamentals to understand why the share price languishes. After all, there may be an opportunity.
Depicted in the graphic below, you'll see revenue and earnings over time. If you want more detail, you can click on the chart itself.
We know that Alimera Sciences has improved its bottom line over the last three years, but what does the future have in store? Thisfreeinteractive report on Alimera Sciences'sbalance sheet strengthis a great place to start, if you want to investigate the stock further.
It's good to see that Alimera Sciences has rewarded shareholders with a total shareholder return of 5.9% in the last twelve months. Notably the five-year annualised TSR loss of 31% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. You could get a better understanding of Alimera Sciences's growth by checking outthis more detailed historical graphof earnings, revenue and cash flow.
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. |
Joe Biden: Cory Booker Should Apologize, Not Me
Democratic presidential candidate Joe Biden is dismissing calls to apologize for saying that the Senate “got things done” with “civility” even when the body included segregationists with whom he disagreed.
His rivals for the 2020 nomination, including the two major black candidates in the race, roundly criticized Biden’s comments. But Biden didn’t back down Wednesday and was particularly defiant in the face of criticism from New Jersey Sen. Cory Booker, who said the former vice president should apologize.
Biden said Booker should apologize because the senator “should know better” than to question Biden’s commitment to civil rights.
“There’s not a racist bone in my body,” Biden said. “I’ve been involved in civil rights my whole career.”
Booker’s response: “I was raised to speak truth to power and that I shall never apologize for doing that. And Vice President Biden shouldn’t need this lesson,” he told CNN.
It’s becoming one of the most intense disputes of the primary, showing the hazards for Biden as he tries to turn his decades of Washington experience into an advantage. Instead, he’s infuriating Democrats who say he’s out of step with the diverse party of the 21st century and potentially undermining his argument that he’s the most electable candidate to take on President Donald Trump.
At a New York fundraiser Tuesday, Biden pointed to two long-dead segregationist senators, Democrats James Eastland of Mississippi and Herman Talmadge of Georgia, to argue that Washington functioned more smoothly a generation ago than under today’s “broken” hyperpartisanship.
“We didn’t agree on much of anything,” Biden said of the two men, who were prominent lawmakers when Biden was elected in 1972. Biden described Talmadge as “one of the meanest guys I ever knew” and said Eastland called him “son,” though not “boy,” a reference to the racist way many whites addressed black men at the time.
Yet even in that Senate, Biden said, “At least there was some civility. We got things done.”
Biden’s rivals quickly pounced.
“I have to tell Vice President Biden, as someone I respect, that he is wrong for using his relationships with Eastland and Talmadge as examples of how to bring our country together,” said Booker, who is African American.
New York City Mayor Bill de Blasio, a white man who is married to a black woman, tweeted: “It’s 2019 & @JoeBiden is longing for the good old days of ‘civility’ typified by James Eastland. Eastland thought my multiracial family should be illegal.”
California Sen. Kamala Harris, who is black, said Biden was “coddling” segregationists in a way that “suggests to me that he doesn’t understand … the dark history of our country” — a characterization Biden’s campaign rejects.
Former Texas Rep. Beto O’Rourke said that for Biden “to somehow say that what we’re seeing in this country today is a function of partisanship or a lack of bipartisanship completely ignores the legacy of slavery and the active suppression of African Americans and communities of color right now.”
The tumult comes at a crucial point in the campaign. Biden is still recovering from controversy earlier this month when he angered many Democrats by saying he didn’t support federal taxpayer money supporting abortion. He later reversed his position.
He’s among the more than 20 candidates who will be in South Carolina this weekend to make their case to black voters at a series of events.
Meanwhile, most of the candidates will gather in Miami next week for the first presidential debate of the primary season. Biden will almost certainly face criticism for the comments.
He tried to defuse the tension by saying he was trying to argue that leaders sometimes have to work with people they disagree with to achieve goals, such as renewing the Voting Rights Act.
“The point I’m making is you don’t have to agree. You don’t have to like the people in terms of their views,” he said. “But you just simply make the case and you beat them without changing the system.”
He has received support from some black leaders. Louisiana Rep. Cedric Richmond, Biden’s campaign co-chairman and a former Congressional Black Caucus chairman, said Biden’s opponents deliberately ignored the full context of his argument for a more functional government.
“Maybe there’s a better way to say it, but we have to work with people, and that’s a fact,” Richmond said, noting he dealt recently with President Donald Trump to pass a long-sought criminal justice overhaul. “I question (Trump’s) racial sensitivity, a whole bunch of things about his character … but we worked together.”
Likewise, Richmond said, Biden mentioned Jim Crow-era senators to emphasize the depths of disagreements elected officials sometimes navigate. “If he gets elected president, we don’t have 60 votes in the Senate” to overcome filibusters, Richmond noted. “He could be less genuine and say, ‘We’re just going to do all these things.’ But we already have a president like that. (Biden) knows we have to build consensus.”
Biden also drew a qualified defense from Republican Sen. Tim Scott of South Carolina, the only black senator from his party.
Scott said that Biden “should have used a different group of senators” to make his point but that his remarks “have nothing to do with his position on race” issues. Scott said the reaction reflects an intense environment for Democrats in which the desire to defeat Trump means “anything the front-runner says that is off by a little bit” will be magnified.
—2020Democratic primary debates: Everything you need to know
—The campaign finance power behindTrump impeachment efforts
—Not every state is restrictingabortion rights—some are expanding them
—Richard Nixon‘s “Western White House” is back on the market—at a discount
—Trump administration to use former Japanese internment camp to housemigrant children
Get up to speed on your morning commute withFortune’sCEO Dailynewsletter. |
Is a Tough Q2 Earnings Season in Store for U.S. Steel Stocks?
U.S. steel companies reaped the benefits of higher domestic steel prices in 2018 that largely helped them to rack up solid earnings last year. However, a sharp decline in steel prices this year spells trouble for American steel makers. Moreover, recent profit warnings from some key players amid falling steel prices and demand have raised concerns about a possible weak second quarter for the U.S. steel industry.Are U.S. steel producers bracing for a disappointing second quarter? Let’s have a look.Downbeat Guidance From Major PlayersSome of the major U.S. steel makers came up with lower-than-expected earnings guidance for the June quarter this week. U.S. steel giant Nucor Corporation NUE, on Monday, issued underwhelming guidance for the second quarter. It sees earnings per share in the band of $1.20-$1.25 for the quarter, reflecting a decline from $1.63 in the first quarter and $2.13 in the year-ago quarter.Nucor expects performance in the steel mills unit to decline sequentially in the second quarter. The company noted that service center destocking is affecting order rates. Lower scrap prices and higher supply in the domestic market have led to aggressive inventory management by the company’s customers.Steel Dynamics, Inc. STLD also provided downbeat guidance for the second quarter as it expects lower earnings in its steel operations in the quarter. The steel producer expects earnings for the quarter in the band of 86-90 cents per share. That is a decrease from 91 cents per share recorded in the previous quarter and $1.53 per share it earned a year ago.Steel Dynamics expects earnings from its steel operations to be lower sequentially in the second quarter mainly due to reduced profitability from the long product steel operations as shipments and metal spread fell in the quarter. Average product prices declined across the steel platform in the second quarter, the company noted. Steel Dynamics also said that inventory destocking and hesitancy in steel buying have resulted from a softening scrap pricing environment.Moreover, United States Steel Corp. X on Tuesday provided disappointing second-quarter profit guidance and said that it will idle three blast furnaces in response to the weakening market conditions. The company expects adjusted earnings per share to be roughly 40 cents for the quarter. The projected earnings reflect a decrease from 47 cents per share recorded in the previous quarter and $1.46 per share the company earned a year ago.The company said that its Flat-Rolled segment is being hurt by lower steel prices and weakening end market demand. Flooding in the southern United States also led to lower-than-expected shipments in the second quarter.Moreover, the company sees sequentially lower adjusted EBITDA for both its U.S. Steel Europe (USSE) and Tubular segments in the second quarter. Lower selling prices are putting pressure on Tubular margins while higher imports and headwinds related to raw material costs and demand continue to hurt the USSE unit.Nucor currently has a Zacks Rank #3 (Hold), while both Steel Dynamics and U.S. Steel carry a Zacks Rank #5 (Strong Sell).
You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Falling Steel Prices, Weaker Demand Are WorriesThe 25% tariff on steel imports, which the Trump administration imposed in March 2018, provided a thrust to U.S. steel prices last year, driving profits and cash flows of American steel makers including Nucor, U.S. Steel, Steel Dynamics and AK Steel Holding Corp. AKS.The trade actions also boosted production capacity of American steel producers amid lower imports. They have helped U.S. steel industry capacity break above the important 80% level – the minimum rate required for sustained profitability of the industry. Improved capacity has led to increased U.S. steel production. A number of U.S. steel producers are investing heavily to beef up production capabilities and upgrade facilities.The tariffs led to a spike in U.S. steel prices during the first half of 2018. However, the momentum was short-lived as U.S. steel prices tracked downward in the back half of the year and dropped sharply during the fourth quarter. Prices continue to retreat so far this year.A concoction of factors is to blame for the downward drift in U.S. steel prices. Higher U.S. steel production, partly driven by restarted mills, has contributed to the drop in domestic steel prices.According to American Iron and Steel Institute (“AISI”), an association of North American steel makers, U.S. raw steel production through mid-June 2019 was 44,997,000 net tons at a capability utilization rate of 81.5%, up 5.9% from 42,472,000 net tons a year ago at a capability utilization rate of 76.7%. Rising domestic supply is hurting U.S. steel prices.Uncertainties surrounding global economic growth and concerns over a slowdown in steel demand in China (the world’s top consumer) amid a cooling Chinese economy are other factors for the decline in steel prices.In fact, after rallying to multi-year highs on the back of Trump administration’s imposition of tariffs on imported steel, U.S. steel prices have now fallen back to the levels seen prior to the tariff announcement. The benchmark hot-rolled coil steel prices are now well below their peak level of roughly $920 per short ton (st) reached in July 2018. Prices are down more than 35% from the high levels reached last year.Lower U.S. steel prices will likely put downward pressure on selling prices of American steel makers and crimp their margins in the second quarter.Waning steel demand also poses problems for steel producers. Slowdown across major end-use markets such as automotive, construction and energy are hurting steel demand. Demand has softened across the United States and Europe.Moreover, a slowing Chinese economy amid trade war has triggered a slowdown in steel demand in China. Signs of weakness across the country’s major steel end-use markets — construction and automotive — as reflected by a slowdown in real-estate investment growth and falling car sales have clouded steel demand outlook. As such, softening end-market demand may also hurt profitability of U.S. steel makers.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 reportSteel Dynamics, Inc. (STLD) : Free Stock Analysis ReportAK Steel Holding Corporation (AKS) : Free Stock Analysis ReportNucor Corporation (NUE) : Free Stock Analysis ReportUnited States Steel Corporation (X) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
For Every Investment, There Is a Season, So Tend Your Portfolio with Care
When I was a boy, working with my mother in her flower gardens helped shape my appreciation for how the different seasons dictate growth. SEE ALSO: Is 4% Withdrawal Rate Still a Good Retirement Rule of Thumb? As the weather changed in Cincinnati -- from brutal winter to beautiful spring to blazing hot summer to lovely fall -- the flower gardens changed with it. The tulips bloomed first and then faded, and then the roses took their turn showing off. In the spring, they were just sticks, bland and brown, but in the summer they flourished. And then, in the fall, it was time for the mums to take over. As a kid, I couldn't understand why everything didn't bloom at the same time -- and keep blooming until it snowed. But, of course, I eventually learned that each flower thrives under different conditions. And my mom, Connie, had a purposeful plan; she planted and pruned and kept her beautiful gardens prospering, assuring her prized flowers would shine throughout the growing seasons. Of course, purposeful planning isn't just for gardeners. Savers who want to grow their money for retirement can benefit from patiently nurturing a diverse group of investments in their portfolio. Your investment garden Take the six main asset classes we use with our clients: U.S. equities, international equities, fixed income, currencies, commodities and cash. Each has a place in a portfolio, but they won't all shine at once. There are times when it makes sense to overweight certain assets and underweight -- or cut back -- on others. For the past several years my firm has been overweighting the U.S. markets and underweighting bonds and commodities. It has been a great time to own large-cap equities (stocks that generally have a market capitalization of $10 billion or more). With a record-setting bull market, and the S&P 500 and Dow Jones Industrial Average near their all-time highs, it makes sense that these investments have been performing well. In response, many investors have been overweighting U.S. equities and trimming way back on commodities, which have not been doing well for a while. That makes sense, too. Story continues But the season will change, and winter will come. Remember 2008? Cash was king! The large-cap value sector was in horrible shape. So, commodities and currency held a much larger position in our clients' portfolios as we reduced exposure to the U.S. and international markets through that turbulent cycle. However, coming out of the recession, mid- and small-caps, commodities and currencies did well. With proper tending, those investments came to the forefront of many portfolios. Those who were still sitting in cash were looking at a market that was flourishing, and they had a flower garden without any plants. For many, it turned into an unfortunate mess. Fixed income is another portfolio category that requires attention from time to time. It isn't as showy as the other asset classes, but it's a critical piece of a retirement income plan. So, what's an investor to do about bonds in a rising interest rate environment? You don't pull out those investments and throw them away -- but maybe you trim them back. Fixed-income investors may find they're better off switching their longer-dated investments for those with a shorter duration, or they may want to consider something like Treasury Inflation-Protected Securities (TIPS). See Also: What's Your Investment Return? Setting Expectations for Your Stock and Bond Portfolio Nurturing your garden I've yet to meet a successful gardener who takes a set-it-and-forget-it attitude toward what's happening in his or her yard. Who would plant a seed and never water it or watch it grow? Those who don't pay attention risk waking up to something pretty ugly out there. Yet, that's the kind of buy-and-hold, set it and forget it style that some portfolio proponents are asking investors to take: Pick a fund, stock or ETF and expect a robust retirement in 20 or 30 years. The question one must ask is: What happens when this investment is out of favor? Do you have a garden full of rose bushes in January? Most investors will want to avoid the purest forms of market timing. Even financial professionals with sophisticated tools designed to analyze every market factor -- and do it without emotion -- can find it difficult to forecast what will happen and when. But using technical analysis, there are some strategic moves investors and their advisers can make -- putting more emphasis on particular assets when it makes sense -- to prepare for what's to come. In other words, tending to their investment gardens! It's important to keep the diversity in your portfolio and to manage everything with care, knowing someday one type of investment could be blooming when nothing else is. (If you hear the Byrds singing in your head right now -- "To everything (turn, turn, turn) there is a season" -- you get the idea.) Investments need to ebb and flow with the market. And investors should have a plan -- to underweight and overweight, trim and highlight -- in an ongoing effort to see their portfolio prosper. Just like Connie with her flower gardens, you can make sure you always have something blooming to enjoy the sweet smells of solid returns for years to come. See Also: How Dividend-Paying Stocks May Help Boost Retirement Income Kim Franke-Folstad contributed to this article. Investment advisory services offered only by duly registered individuals through AE Wealth Management LLC (AEWM). AEWM and Olson & Wilson Private Capital are not affiliated companies. Investing involves risk, including the potential loss of principal. Neither the firm nor its agents or representatives may give tax advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. 180075 Comments are suppressed in compliance with industry guidelines. Click here to learn more and read more articles from the author. This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA . EDITOR'S PICKS Control What You Can When Volatility Shakes Market Confidence Top 5 Retirement Podcasts Everyone Should Listen To What You Don\'t Know Can Hurt Your Retirement Copyright 2019 The Kiplinger Washington Editors |
E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – June 20, 2019 Forecast
September E-mini Dow Jones Industrial Average futures are trading sharply higher shortly before the cash market opening. The rally is being fueled by expectations of a Fed rate hike in July and the hope that the meeting between U.S. President Trump and China President Xi Jinping at the G-20 summit in Osaka, Japan will open the door to an eventual trade deal between the two economic powerhouses.
At 12:56 GMT,September E-mini Dow Jones Industrial Averagefutures are trading 26771, up 235 or +0.88%.
According to the bulls, the dovish Fed basically greenlit another leg up in this more than 10 year rally. One lesson that investors learned over this time period is cheap money drives the market. Who cares if the on-going trade dispute with China is costing companies money.
The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers drove prices through the April 23 main top at 26710. The next target is the contract high at 27031.
The main trend will change to down on a trade through 25897. This is highly unlikely today. With resistance scarce at current price levels, the best sign of meaningful resistance will be a closing price reversal top chart pattern.
Now that we’ve crossed to the strong side of 26710, we’d like to see buyers come in at this level if tested. This is called buying with conviction. If this occurs then it could generate the upside momentum needed to race toward the all-time high at 27031.
If 26710 fails as support then this could open the door for a pullback into a steep uptrending Gann angle at 26537. Since the main trend is up, buyers could come in on a test of this level.
If 26537 fails as support then look for the selling to possibly continue with the next target the longer-term uptrending Gann angle at 26290.
Don’t try to pick a top if you’re bearish, you’ll just be feeding the bull. Wait for a closing price reversal top because this is a safer trade. It is usually the best indication that the selling is greater than the buying at current price levels.
Thisarticlewas originally posted on FX Empire
• Natural Gas Price Forecast – Natural gas markets drift lower
• S&P 500 Price Forecast – Stock markets reached towards the highs
• USD/JPY Weekly Price Forecast – US dollar breaks support
• GBP/USD Price Forecast – British pound runs into resistance
• GBP/USD Weekly Price Forecast – British pound bounces
• EUR/USD Weekly Price Forecast – Euro shows strength during the week |
US STOCKS-S&P 500 set to open at record high on dovish Fed
(For a live blog on the U.S. stock market, click or type LIVE/ in a news window.)
* Fed sees case building for rate cuts this year
* Apple rises after brokerage raises PT
* Carnival Corp slides on cutting 2019 profit forecast
* Futures up: Dow 0.90%, S&P 0.98%, Nasdaq 1.40% (Updates prices, adds comments)
By Shreyashi Sanyal
June 20 (Reuters) - The S&P 500 index was set to open at a record high on Thursday, after the Federal Reserve reassured investors that it was ready to cut interest rates as soon as next month to counter growing risks to global and domestic growth.
The central bank left rates unchanged at the end of its two-day June policy meeting on Wednesday, but pledged to "act as appropriate" to sustain economic health.
The S&P and the Dow Jones Industrial Average have gained in recent weeks on hopes of a rate cut, moving within striking distance of record closes set in late April.
"Chairman Jerome Powell's comments that 'the case for additional accommodation has strengthened' was exactly what market participants wanted to hear," said Robert Johnson, chief executive officer at Economic Index Associates in New York.
"A continued trade war with China could be the catalyst that sends the U.S. economy into recession and rates cuts can be viewed as preemptive strikes by the Fed to prevent that from happening."
At 8:52 a.m. ET, Dow e-minis were up 240 points, or 0.9%. S&P 500 e-minis were up 28.75 points, or 0.98% and Nasdaq 100 e-minis were up 107.5 points, or 1.4%.
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.
U.S. treasury bond yields tumbled and the dollar was on track for its biggest two-day drop this year on the more-than-expected dovish Fed.
Top Chinese and U.S. officials will resume trade talks in accordance with the wishes of their leaders, but China hopes the United States will create the necessary conditions for dialogue, the Chinese commerce ministry said on Thursday.
Among stocks, Apple Inc rose 1.5% in premarket trading after Evercore ISI raised its price target on the iPhone maker, saying investors are underappreciating a large growth opportunity.
Boeing Co gained 1% after the planemaker said it is in talks with other airlines for sales of its 737 MAX after receiving a letter of intent for 200 of the grounded planes from British Airways owner IAG.
Oracle Corp jumped 6.6% after the business software maker forecast current-quarter profit above estimates as it benefited from demand for its on-premise IT, cloud services and license support businesses.
Cruise operator Carnival Corp slid 8.9% after cutting its profit forecast for the year on the Trump administration's sudden ban on cruises to Cuba and expected lower ticket prices in the coming months.
Rivals Royal Caribbean Cruises Ltd and Norwegian Cruise Line Holdings Ltd also fell. (Reporting by Shreyashi Sanyal and Aparajita Saxena in Bengaluru; Editing by Sriraj Kalluvila) |
Why Farmers National Banc (FMNB) is a Great Dividend Stock Right Now
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Farmers National Banc in Focus
Based in Canfield, Farmers National Banc (FMNB) is in the Finance sector, and so far this year, shares have seen a price change of 10.83%. The bank is currently shelling out a dividend of $0.09 per share, with a dividend yield of 2.55%. This compares to the Banks - Midwest industry's yield of 2.57% and the S&P 500's yield of 1.94%.
In terms of dividend growth, the company's current annualized dividend of $0.36 is up 20% from last year. Farmers National Banc has increased its dividend 4 times on a year-over-year basis over the last 5 years for an average annual increase of 29.31%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Farmers National's current payout ratio is 30%, meaning it paid out 30% of its trailing 12-month EPS as dividend.
FMNB is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2019 is $1.26 per share, with earnings expected to increase 9.57% from the year ago period.
Bottom Line
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, FMNB presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).
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 reportFarmers National Banc Corp. (FMNB) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Sandy Spring Bancorp (SASR) is a Top Dividend Stock Right Now: Should You Buy?
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Sandy Spring Bancorp in Focus
Sandy Spring Bancorp (SASR) is headquartered in Olney, and is in the Finance sector. The stock has seen a price change of 7.75% since the start of the year. The holding company for Sandy Spring Bank is currently shelling out a dividend of $0.3 per share, with a dividend yield of 3.55%. This compares to the Banks - Northeast industry's yield of 1.89% and the S&P 500's yield of 1.94%.
Taking a look at the company's dividend growth, its current annualized dividend of $1.20 is up 9.1% from last year. In the past five-year period, Sandy Spring Bancorp has increased its dividend 4 times on a year-over-year basis for an average annual increase of 8.43%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. Right now, Sandy Spring Bancorp's payout ratio is 38%, which means it paid out 38% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, SASR expects solid earnings growth. The Zacks Consensus Estimate for 2019 is $3.23 per share, which represents a year-over-year growth rate of 12.94%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that SASR is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).
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 reportSandy Spring Bancorp, Inc. (SASR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
The Latest: Putin ready to meet with Trump at G-20 summit
MOSCOW (AP) — The Latest on Putin's annual call-in show (all times local): 4:15 p.m. Russian President Vladimir Putin says he's ready for a meeting with U.S. President Donald Trump, but doesn't expect a quick improvement of Russia-U.S. ties. Trump said he expects to meet with Putin on the sidelines of next week's G-20 summit in Osaka, Japan, but the Kremlin said that the White House hasn't yet formally requested a meeting. Speaking during Thursday's live call-in show, Putin said that "we are ready for dialogue as much as our partners are." He added that Russia and the U.S. particularly need to talk about arms control issues. Putin charged that U.S.-Russian relations have become part of domestic political infighting, clouding prospects for improvement of ties between Washington and Moscow. Putin added that even if Trump wants to improve diplomacy with Russia, he faces strong resistance from the establishment. ___ 4:05 p.m. Russian President Vladimir Putin has called on Ukraine's new president to negotiate directly with separatists in eastern Ukraine. Speaking on his annual call-in show, Putin on Thursday berated Volodymyr Zelenskiy, who was sworn in last month, for his comments earlier this week in which he refused to negotiate directly with the separatists who overran large swathes of Ukraine's east with the help of Russian funds, weapons and manpower. The peace accords signed in the Belarusian capital Minsk in 2015 called for direct negotiations between Kiev and the separatists with the mediation of Russia, France and Germany. Putin said the "political will of the Ukrainian leadership" is necessary to stop the hostilities between Ukrainian government troops and Russia-backed separatists which have killed more than 13,000 since 2014. Putin pointed out that Zelenskiy's campaign promises to bring peace to the east and stop the fighting haven't yet been fulfilled. ___ 3:15 p.m. Story continues President Vladimir Putin says he's against easing punishments for drug-related crimes but considers it necessary to tighten controls in order to prevent police abuses. Speaking during a live marathon call-in show, Putin said it's necessary to strengthen the oversight of police anti-drug actions in the wake of the arrest of a journalist on drug charges that were quickly dropped for lack of evidence. Putin said additional controls need to be introduced to prevent police from faking evidence in drug cases. The case against journalist Ivan Golunov case caused public outrage, and Putin responded last week by firing two senior police officers. Putin said he expects an official probe to track down all those responsible. ___ 1:45 p.m. President Vladimir Putin says that Russia will not compromise on its core interests to win a respite from Western sanctions. Putin admitted that the 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 due to the restrictions. Speaking during Thursday's live call-in show, the Russian leader said that the sanctions have encouraged Russia 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 the U.S. trade restrictions against China serve a similar purpose. ___ 12:35 p.m. President Vladimir Putin is promising to boost spending on social programs as part of the government's modernization efforts. Speaking in an annual live call-in show Thursday, Putin faced an array of complaints about low wages and pensions. Putin responded by spelling out plans to boost salaries for public sector workers. More than 1.5 million people have sent their questions by phone, video calls or internet. For the people across the vast country, the tightly-choreographed 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. |
Fed rate-cut hints power S&P 500 to all-time high
By Shreyashi Sanyal
(Reuters) - A rally on Wall Street lost strength on Thursday after the S&P 500 index touched a record high, powered by the Federal Reserve's signals that it could cut interest rates as early as July to combat growing risks to global and domestic growth.
The U.S. central bank left rates unchanged at the end of its two-day June 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, hit an intraday record high of 2,956.20 on Thursday.
"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.
"It's clear that the G20 meeting next week will either give them (the Fed) that out or make the decision to cut quite straightforward."
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.
Financial stocks dropped 0.34%, while the energy index jumped 2.01%, 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.
Stocks pared some gains after President Donald Trump's comment "You'll find out" when asked how the United States will respond to Iran.
At 12:56 p.m. ET, the Dow Jones Industrial Average was up 120.53 points, or 0.45%, at 26,624.53 and the S&P 500 was up 12.90 points, or 0.44%, at 2,939.36.
The Nasdaq Composite was up 28.58 points, or 0.36%, at 8,015.91.
The technology sector rose 0.89%, boosting the S&P 500 by the most, with Oracle Corp leading the charge.
Oracle's shares jumped 7.37% after the business software maker forecast current-quarter profit above estimates.
Cruise operator Carnival Corp slid 9.41%, 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 more than 3% 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.
Advancing issues outnumbered decliners by a 2.49-to-1 ratio on the NYSE and by a 1.31-to-1 ratio on the Nasdaq.
The S&P index recorded 95 new 52-week highs and three new lows, while the Nasdaq recorded 118 new highs and 35 new lows.
(Reporting by Shreyashi Sanyal and Aparajita Saxena in Bengaluru; Editing by Arun Koyyur and Sriraj Kalluvila) |
Messaging giant LINE close to securing Japanese regulator’s approval to launch crypto exchange
Japanese messaging giant LINE is likely to get regulatory approval to launch a cryptocurrency exchange in the country, BloombergreportedThursday.
The Japanese Financial Services Agency (FSA) could grant the license as early as this month, “people familiar with the matter” told the news agency.
The pending exchange, called BitMax, will reportedly start operations a few weeks after receiving the license. BitMax will allow LINE’s 80 million users in Japan to trade cryptocurrencies, including bitcoin and the giant’s own token Link, according to the report. It would be LINE's second crypto exchange, havinglaunchedBitbox in Singapore in July 2018.
The firm initially started as a messaging app but has gradually beenmovinginto the fintech space to turn profitable. Earlier this month, LINE’s digital wallet LINE Paypartneredwith Visa to create new financial services for their app customers, including blockchain-based solutions, cross-border payments, and “alternative currency payments.”
The company is also awaiting a separate banking license in Japan that is unlikely to be issued until next year, according to Bloomberg. In addition, LINE reportedly aims to enter into stock brokerage and banking services in the near future. |
AstraZeneca's Triple-Combo COPD Inhaler Gets Japan's Nod
AstraZeneca plc. AZN announced that its investigational triple combination therapy, PT010 has been approved by the Japanese regulatory authority to relieve symptoms of chronic obstructive pulmonary disease (COPD). PT010 is a combination of budesonide, an ICS with glycopyrronium, a long-acting muscarinic antagonist (LAMA) and formoterol fumarate, a long-acting beta-agonists (LABA) therapy. PT010 can be delivered using AstraZeneca’s Aerosphere Delivery Technology. With the approval, PT010, to be marketed by the trade name of Breztri Aerospher, will be the only triple-combination therapy in a pressurized metered-dose inhaler device to be approved in Japan. This approval marks the first global regulatory approval for Breztri Aerospher while the candidate is under review in the United States and EU. The approval is based on positive data from the KRONOS study, which compared PT010 to dual combination therapies — Bevespi Aerosphere, Symbicort Turbuhaler, and PT009 — in COPD. The study demonstrated that PT010 led to a statistically-significant improvement in trough forced expiratory volume in one second (FEV1), a measure of lung function and the primary endpoint for Japan, versus the dual combination therapies. We remind investors that Glaxo GSK also markets a once-daily, single inhaler triple combination therapy Trelegy Ellipta, for COPD. Trelegy Ellipta is a combination of fluticasone furoate — an ICS, umeclidinium — a LAMA and vilanterol — a LABA therapy. Trelegy Ellipta is delivered in Glaxo’s Ellipta dry powder inhaler. Theravance Biopharma, Inc. TBPH has an economic interest in Trelegy Ellipta and earns royalties on its sales. Along with the approval for the triple combo inhaler, Japan’s Ministry of Health, Labour and Welfare also granted approval to Bevespi Aerosphere, AstraZeneca’s fixed-dose dual (LABA/LAMA) inhaler that is delivered in a pressurized metered-dose inhaler. Bevespi Aerosphere is already approved in the United States, Europe Canada and Australia as a dual bronchodilator for the long-term maintenance treatment of COPD. Story continues AstraZeneca’s stock has rallied 9.7% this year so far, outperforming the industry’s rise of 3.3%. AstraZeneca and partner Merck MRK also gained approval in Japan for their PARP inhibitor Lynparza for first-line maintenance treatment of BRCA-mutated advanced ovarian cancer. It was approved in the United States for the indication in late 2018 while the same in Europe came earlier this week. With the latest approval, Lynparza can now be used in Japan as a maintenance treatment after first-line chemotherapy in patients with BRCA-mutated advanced ovarian cancer as detected by an approved companion diagnostic test. AstraZeneca currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here . 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 report Merck & Co., Inc. (MRK) : Free Stock Analysis Report AstraZeneca PLC (AZN) : Free Stock Analysis Report GlaxoSmithKline plc (GSK) : Free Stock Analysis Report Theravance Biopharma, Inc. (TBPH) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research |
5 Top Rate-Sensitive Stocks to Buy Amid Fed's Rate Cut Hints
In its FOMC minutes on Jun 19, the Fed kept interest rate unchanged while giving a clear indication that it will not hesitate to take appropriate action, when required, to sustain economic expansion. The central bank is concerned about global economic slowdown and lingering tariff war between the United States and China.Tepid manufacturing data, lower business spending and muted inflation may compel the Fed to cut interest rates this year. Moreover, non-farm payroll in May was extremely low, signaling a possible halt in labor market growth, which was one of the key pillars of U.S. economic expansion.Fed Signals Near-Term Rate CutOn Jun 14, in his speech following the FOMC meeting, Fed Chair Jerome Powell said that the benchmark lending rate was kept intact at 2.25-2.5%. Fed’s fund flow rate projection chart is not showing any possibility of a reduction in rate before early 2020.However, the noticeable fact is that out of 17 voting members of the Fed, a strong bunch of eight is expecting a rate cut this year, while another eight members are in favor of maintaining status quo. Only one member is expecting a rate hike instead of a rate cut.Market participants feel the numbers are strong indication of one or more rate cut this year. In fact, several market watchers are expecting a quarter to half a percentage point cut in benchmark rate throughout the rest of 2019. Notably, the Fed has removed the term “patient’ from its minutes and added that “the FOMC will closely monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion”.The Fed has said that adoption of more accommodative policy is gaining ground as some economic developments raised concerns about U.S. and global growth. Meanwhile, traders are wholeheartedly expecting at least one rate cut in July. Per CME FedWatch, Fed funds futures market tool is pointing a 67.7% probability of a 25 basis-point reduction in fund rate while 32.3% probability of a reduction of 50 basis points.Tepid Global Economic DataLingering trade conflict between the United States and China has already dented investors’ confidence internationally. Non-farm job addition in May came in at just 75,000. Moreover, total job addition in April and March was reduced by 75,000.U.S. manufacturing is suffering due to lack of global demand. The ISM Manufacturing Index for May came in at 52.1, the lowest level since October 2016. Factory orders for U.S.-made durable goods declined 0.8% in April. Additionally, U.S. core PCE inflation index – Fed’s favorite inflation gauge – rose 1.6% in April, well below the central bank’s target rate of 2%.China’s official manufacturing PMI for May slipped to 49.4, from April’s reading of 50.1. PMI readings below 50 signal contraction in the Chinese manufacturing sector. The National Bureau of Statistics of China reported that value-added industrial output rose 5.0% in May compared with 5.4% in April. This was the lowest growth rate in 17 years.Yields on 10-year Treasury bond in Germany, Switzerland and Japan are currently in negative territory. Moreover, yields on 10-year Treasury bonds declined to less than 1% in France, Spain and the U.K.Our Top PicksUnder these circumstances, rate-sensitive investments like utilities, REITs and health care, with strong growth potential, will be prudent. We narrowed down our search to five such stocks, each carrying a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.The chart below shows price performance of our five picks year to date.
Middlesex Water Co.MSEX owns and operates regulated water utility and wastewater systems. It operates in two segments, Regulated and Non-Regulated. The company has expected earnings growth of 10.7% for the current year. The Zacks Consensus Estimate for the current year has improved by 5.9% over the last 60 days.Atlantic Power Corp.AT owns and operates a fleet of power generation assets in the United States and Canada. The company has expected earnings growth of 50% for the current year. The Zacks Consensus Estimate for the current year has improved by 118.2% over the last 60 days.NexPoint Residential Trust Inc.NXRT invests primarily in residential mortgage loans and mortgage-related assets in the United States. The company has expected earnings growth of 10.6% for the current year. The Zacks Consensus Estimate for the current year has improved by 0.5% over the last 60 days.Illumina Inc.ILMN provides sequencing and array-based solutions for genetic analysis. The company operates in two segments, Core Illumina and Consolidated VIEs. The company has expected earnings growth of 16.8% for the current year. The Zacks Consensus Estimate for the current year has improved by 2.3% over the last 60 days.BioDelivery Sciences International Inc.BDSI is a specialty pharmaceutical company, which engages in the development and commercialization of pharmaceutical products in the United States and internationally. The company has expected earnings growth of 80.8% for the current year. The Zacks Consensus Estimate for the current year has improved by 33.3% over the 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 reportAtlantic Power Corporation (AT) : Free Stock Analysis ReportMiddlesex Water Company (MSEX) : Free Stock Analysis ReportIllumina, Inc. (ILMN) : Free Stock Analysis ReportBioDelivery Sciences International, Inc. (BDSI) : Free Stock Analysis ReportNexPoint Residential Trust, Inc. (NXRT) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Best Job Search Sites
To find a job, all you need to do is apply online and wait to be contacted. Right? If only it were that easy. One obstacle is discerning great job search sites from ones that are merely mediocre. Where should you go to find job postings online? The job-finding website options seem endless. HR professionals and recruiters are becoming more strategic about where they post job opportunities to attract the best candidates, which is especially challenging with low unemployment rates. For job seekers, this means that your favorite job board may not be the preferred job search site for every company. What really matters is which options recruiters use and believe are the most effective in attracting the best new employees. [ READ: How to Follow Up on a Job Application. ] The best job search sites include: -- Indeed. -- LinkedIn. -- Glassdoor. -- CareerBuilder. -- Monster. -- Google for Jobs. -- Company career pages. -- SimplyHired. Don't rely only on job search sites. SilkRoad, a talent management software company, surveyed 1,000 companies to find out which job search sites produced the best results. According to the data, it took 129 applications from external job search sites to hire one new employee. But it only took eight applicants to hire one person using internal sources such as referrals, recruiter outreach and internal job boards. The key takeaway is that you shouldn't rely solely on job boards, because referred candidates are far more likely to make it to the final interview stage than those who simply apply online. For better results, invest your time contacting people you know inside companies before you apply. Dedicate most of your job search efforts to talking with people in your industry , meeting new people and keeping in touch with past colleagues. These relationships are likely to yield information about openings before they are posted, and people you know might be able to fast-track you to the interview. Check out these best job search websites: Story continues Indeed You'll find almost every type and level of job on Indeed. It also provides an app to access jobs easily from your mobile device. LinkedIn LinkedIn is a social networking site , but it also has a job board. Under the jobs tab, type the keyword or job title and select a city. Once you've received your results, you can filter them by when the job was posted or by experience level. One noteworthy feature allows you to filter your results based on jobs posted by companies where you have contacts or people in your network. Glassdoor Primarily known for providing anonymous company reviews, Glassdoor also lists jobs. Having easy access to company reviews helps you evaluate the company before you apply. [ See: 10 Tech Jobs That Make the Most Money. ] CareerBuilder CareerBuilder is one of the top recognized job boards. You'll find jobs of all levels posted here. Monster Monster is another well-known name for jobs of all types and levels. Google for Jobs Google for Jobs is a product by Google. It isn't a job board but a job search engine that compiles listings from many different sources, including other job search engines, in your Google search results. This can be a huge time-saver and may even find jobs from sources you didn't know about. Users can narrow their search by type of job, location, company type, date posted and more. [ SEE: What Hiring Managers Wished You Knew. ] Company Career Pages You can be sure that a company will post jobs on its own career page, so don't forget to set alerts on the career pages of companies that interest you. If alerts aren't possible, be sure to check those pages regularly for new jobs. Also follow company social media accounts and monitor updates for news and new jobs. Other Job Search Websites LinkUp only pulls jobs posted on company career pages while SimplyHired aggregates jobs found on company career sites as well as other job boards and social media. You may be redirected to the original source of the job posting. ZipRecruiter is an online job marketing service that shares job openings to more than 100 sites and uses algorithms to help match applicants to jobs. Craigslist is another option. Employers may choose to post jobs here for anonymity or due to the low cost. Specialty or Niche Job Boards It is common for companies to post job opportunities on specialty or niche job boards in order to reach candidates with an industry, occupational or geographic specialty. It is worth searching for a site that caters to your area of interest. If you are a veteran, nurse, or are looking for a company that welcomes diversity, try asking people you know in your field which sites they recommend. Some of the examples include: -- Dice, for technical jobs . -- eFinancialCareers, for finance jobs . -- Higheredjobs.com, for jobs from colleges and universities. -- Idealist, for nonprofit work openings. -- USAJobs.gov, for government jobs. More From US News & World Report The 25 Best Jobs of 2019 25 Best Jobs That Pay $100K 10 Tech Jobs That Make the Most Money |
Minor league team loses when right fielder throws ball into stands
One of the most fundamental aspects of playing baseball isn’t fielding, or hitting, or running. It’s knowing the score. That seems basic, but a right fielder with the Norfolk Tides, the Triple-A team for the Baltimore Orioles, forgot the score on Wednesday night. That’s not great most of the time, but it’s especially not great in an extra-innings game that your team is about to win — or was. The Tides were facing the Scranton/Wilkes-Barre RailRiders, the New York Yankees’ Triple-A team, and were leading 6-5 when the RailRiders came up to bat in the bottom of the tenth inning. One RailRiders player was placed on second base at the start of the inning (which is the rule in extra innings in minor league baseball), but after a strikeout the Tides were just two outs from a win. They were so close, but not close enough. The Tides didn’t count on their right fielder, Anderson Feliz, forgetting that the game was no longer tied and the Tides had scored in the previous inning. And that was something he really, really needed to remember for what came next. The Minors gave us one of the weirdest walk-offs you'll ever see. @swbrailriders ' Breyvic Valera hits what appears to be a game-tying double, but Norfolk's right fielder forgets how many outs there are.... (via @MiLB ) pic.twitter.com/tc5knvf2Mt — Cut4 (@Cut4) June 20, 2019 You can practically hear “The Price is Right” fail horn during that play. When the batter sent a line-drive to right field, it should have been a game-tying double. But Feliz barely jogged to the ball and then picked it up and threw it into the stands, obviously thinking that the Tides had already lost. In the meantime, two RailRiders runners scored instead of just one and the Tides lost for real. That’s a nice souvenir for whoever got that ball, but it’s one huge whoopsie for Feliz. Feliz’s truly unfortunate brain fart snatched a defeat from the jaws of victory for the Tides. Baseball is a game of many moving parts, but when you forget the basics, sometimes you end up on a team’s blooper highlight reel. A minor league player forgot the score of the game he was playing in and allowed the winning run to score when he thought the game was over. (Photo by Jamie Sabau/Getty Images) More from Yahoo Sports: CP3, Harden relationship deemed ‘unsalvageable’ From mid-major to NBA draft: Morant's historic rise Coach K on Zion’s NBA potential: 'He’s a gift from God' Why D-Wade supported son at Miami Pride View comments |
When Can We Expect A Profit From Akebia Therapeutics, Inc. (NASDAQ:AKBA)?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Akebia Therapeutics, Inc.'s (NASDAQ:AKBA): Akebia Therapeutics, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapeutics for patients with kidney diseases. With the latest financial year loss of -US$143.6m and a trailing-twelve month of -US$192.6m, the US$532m market-cap amplifies its loss by moving further away from its breakeven target. As path to profitability is the topic on AKBA’s investors mind, I’ve decided to gauge market sentiment. In this article, I will touch on the expectations for AKBA’s growth and when analysts expect the company to become profitable.
View our latest analysis for Akebia Therapeutics
According to the 9 industry analysts covering AKBA, the consensus is breakeven is near. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$66m in 2021. So, AKBA is predicted to breakeven approximately 2 years from today. In order to meet this breakeven date, I calculated the rate at which AKBA must grow year-on-year. It turns out an average annual growth rate of 71% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, I won’t go into details of AKBA’s upcoming projects, though, bear in mind that by and large a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
Before I wrap up, there’s one aspect worth mentioning. AKBA currently has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which usually has a high level of debt relative to its equity. AKBA currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
There are too many aspects of AKBA to cover in one brief article, but the key fundamentals for the company can all be found in one place –AKBA’s company page on Simply Wall St. I’ve also put together a list of relevant aspects you should further examine:
1. Valuation: What is AKBA worth today? Has the future growth potential already been factored into the price? Theintrinsic value infographic in our free research reporthelps visualize whether AKBA is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look atwho sits on Akebia Therapeutics’s board and the CEO’s back ground.
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. |
Aimmune Therapeutics, Inc. (NASDAQ:AIMT) Is Expected To Breakeven
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Aimmune Therapeutics, Inc.'s (NASDAQ:AIMT): Aimmune Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops and commercializes product candidates for the treatment of peanut and other food allergies. The US$1.3b market-cap posted a loss in its most recent financial year of -US$210.8m and a latest trailing-twelve-month loss of -US$215.5m leading to an even wider gap between loss and breakeven. Many investors are wondering the rate at which AIMT will turn a profit, with the big question being “when will the company breakeven?” In this article, I will touch on the expectations for AIMT’s growth and when analysts expect the company to become profitable.
See our latest analysis for Aimmune Therapeutics
AIMT is bordering on breakeven, according to the 9 Biotechs analysts. They expect the company to post a final loss in 2021, before turning a profit of US$240m in 2022. So, AIMT is predicted to breakeven approximately 3 years from now. What rate will AIMT have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 75%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving AIMT’s growth isn’t the focus of this broad overview, however, bear in mind that typically a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing I’d like to point out is that AIMT has managed its capital prudently, with debt making up 15% of equity. This means that AIMT has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.
This article is not intended to be a comprehensive analysis on AIMT, so if you are interested in understanding the company at a deeper level, take a look atAIMT’s company page on Simply Wall St. I’ve also compiled a list of important aspects you should further research:
1. Historical Track Record: What has AIMT's performance been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look atwho sits on Aimmune Therapeutics’s board and the CEO’s back ground.
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. |
Why Should You Add Magellan Health to Your Portfolio?
Magellan Health, Inc. MGLN is well-placed for growth on the back of inorganic growth strategies and operating excellence. This Zacks Rank #1 (Strong Buy) company’s growth trajectory is also apparent from its impressive Value Score of A. Our research shows that stocks with a Value Style Score of A or B when combined with a top Zacks Rank of 1 or 2 offer the best opportunities in the value investing space. Having shed nearly 32% of value in a year’s time compared with its industry’s decline of 2.1%, the current price levels provide an attractive entry point to own the stock. Its return on tangible equity — a profitability measure — stands at 89.3% versus its industry’s negative average of 120.8%. The company has constantly made efforts to enhance its capabilities through a series of acquisitions. In Healthcare segment, a number of buyouts from 2013 to 2016 expanded its Magellan Complete Care (MCC) reporting unit. The acquisition of Armed Forces Services Corporation (“AFSC”) in 2016, also helped the company boost its existence in the federal marketplace. All these inorganic growth initiatives are expected to augur well for the company’s long-term growth. The company has also been making efforts to rein in costs and to this end, already made headcount reduction during the fourth quarter of 2018. It is also seeking additional opportunities for a more industry competitive administrative cost structure in 2020 and beyond. These measures are projected to lead to a cost improvement of $30-$40 million in the next two to three years. We believe, these endeavors will aid margins going forward. Moreover, its debt to equity ratio declined in 2018, thereby strengthening the balance sheet. Its current debt to equity ratio of 57.8% is lower than the industry average of 63.2%, which reduces financial risk. The company’s long-term growth rate came in at 23.8%, higher than the industry's 14% average, which is steadily positive for the company. The Zacks Consensus Estimate for current-year earnings per share is pegged at $3.92, suggesting a surge of 59.4% on revenues of $7.14 billion from the year-ago reported figures. For 2020, the Zacks Consensus Estimate for earnings per share stands at $4.96 on $7.32 billion revenues, implying a respective 26.6% and 2.5% rise from the prior-year reported numbers. Other Key Picks Investors interested in the medical sector can also take a look at some other top-ranked stocks like WellCare Health Plans, Inc. WCG, HCA Healthcare, Inc. HCA and Molina Healthcare, Inc MOH. You can see the complete list of today’s Zacks #1 Rank stocks here . Story continues WellCare Health offers managed care services to government-sponsored health care programs. The company pulled off average positive surprise of 13.52% in the preceding four quarters. It holds a Zacks Rank #2 (Buy). HCA Healthcare provides health care services. In the last four quarters, the company delivered average beat of 15.74%. It carries a Zacks Rank of 2. Molina Healthcare is a multi-state healthcare organization. In the trailing four quarters, the company came up with average beat of 88.17%. It sports a Zacks Rank #1 (Strong Buy). 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 report WellCare Health Plans, Inc. (WCG) : Free Stock Analysis Report Magellan Health, Inc. (MGLN) : Free Stock Analysis Report Molina Healthcare, Inc (MOH) : Free Stock Analysis Report HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report To read this article on Zacks.com click here. |
Exclusive: HSBC lands top adviser role in Qatar for first time since Gulf row - sources
By Davide Barbuscia and Eric Knecht
DUBAI/DOHA (Reuters) - HSBC has been hired by Qatari state-controlled port operator QTerminals to coordinate a planned $500 million loan, sources said, the bank's first mandate as top adviser for a deal in Qatar since a row erupted between Doha and its neighbours.
London-listed HSBC, along with other banks, was caught up in Qatar's dispute with Saudi Arabia, United Arab Emirates, Bahrain and Egypt, which in 2017 cut diplomatic and transport ties with Qatar, accusing it of financing terrorism, a charge Doha denies.
QTerminals said in a statement on Friday that the loan deal had not yet been finalised.
"With regards to HSBC, no international financing agreements have been concluded to date. With its strong financial position and support from its shareholders, QTerminals has multiple options to fund current and future growth," it said.
HSBC side-stepped high-profile Qatar deals in the aftermath of the diplomatic crisis and prioritised business in Saudi Arabia, where it has a strong presence, as the kingdom promised a slate of deals as part of its efforts to open and transform the economy in an era of lower oil prices.
As a result, HSBC has not arranged any bond deals out of Qatar since the crisis began, Refinitiv data shows, after having been at the top of bond league tables.
Though it has participated in Qatari loan transactions over the past two years, it never won lead roles, and its ranking in the local bank debt market has fallen.
But after missing out on profitable mandates like Doha's $12 billion sovereign bond issuance HSBC has been seeking to regain its foothold in Qatar, sources familiar with the matter said.
HSBC, which declined to comment, has been appointed as sole coordinator for a $500 million five-year facility for QTerminals, which is in charge of developing and operating Qatar's Hamad Port and has approached other banks for the transaction, the sources said.
LEAD ROLE
HSBC has led almost every sovereign bond issue in the Gulf over the past few years, as governments turned to debt to refill budget deficits caused by a drop in energy prices.
In its latest bond this year, a jumbo $12 billion debt sale, Qatar hired almost the same group of banks that arranged its bond issue last year, in what a source at the time said was a demonstration of Doha's commitment to its existing partners.
Those included Standard Chartered, Credit Agricole, and four banks with Qatari investment: Barclays, Credit Suisse, Deutsche Bank and Qatar National Bank. None of these banks has arranged Saudi Arabia's recent bond issues.
Over the past few years HSBC has consolidated its presence in Saudi Arabia, as the kingdom opened up to foreign investors as part of reforms under crown prince Mohammed bin Salman.
It was one of the banks appointed to lead Saudi Aramco's debut international bond this year, and had been previously mandated as an adviser for the state-owned giant's initial public offering, which is now expected to take place between 2020 and early 2021.
(Reporting by Davide Barbuscia and Eric Knecht; Editing by Keith Weir/Alexander Smith) |
Those Who Purchased Albireo Pharma (NASDAQ:ALBO) Shares A Year Ago Have A 11% Loss To Show For It
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Albireo Pharma, Inc.(NASDAQ:ALBO) shareholders should be happy to see the share price up 13% in the last quarter. But in truth the last year hasn't been good for the share price. After all, the share price is down 11% in the last year, significantly under-performing the market.
See our latest analysis for Albireo Pharma
With just US$2,108,000 worth of revenue in twelve months, we don't think the market considers Albireo Pharma to have proven its business plan. We can't help wondering why it's publicly listed so early in its journey. Are venture capitalists not interested? So it seems shareholders are too busy dreaming about the progress to come than dwelling on the current (lack of) revenue. For example, they may be hoping that Albireo Pharma comes up with a great new product, before it runs out of money.
Companies that lack both meaningful revenue and profits are usually considered high risk. There is almost always a chance they will need to raise more capital, and their progress - and share price - will dictate how dilutive that is to current holders. While some such companies go on to make revenue, profits, and generate value, others get hyped up by hopeful naifs before eventually going bankrupt.
When it last reported its balance sheet in March 2019, Albireo Pharma had cash in excess of all liabilities of US$89m. While that's nothing to panic about, there is some possibility the company will raise more capital, especially if profits are not imminent. We'd venture that shareholders are concerned about the need for more capital, because the share price has dropped 11% in the last year. You can click on the image below to see (in greater detail) how Albireo Pharma's cash levels have changed over time.
In reality it's hard to have much certainty when valuing a business that has neither revenue or profit. What if insiders are ditching the stock hand over fist? It would bother me, that's for sure. You canclick here to see if there are insiders selling.
While Albireo Pharma shareholders are down 11% for the year, the market itself is up 5.0%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. Putting aside the last twelve months, it's good to see the share price has rebounded by 13%, in the last ninety days. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). You could get a better understanding of Albireo Pharma's growth by checking outthis more detailed historical graphof earnings, revenue and cash flow.
Of courseAlbireo Pharma may not be the best stock to buy. So you may wish to see thisfreecollection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on 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. |
Coinbase detected and blocked attempted attack on user funds
Coinbase was among several crypto companies able to detect and block an attempted hack on Monday,according to reports.
The attackers are believed to have exploited a Firefox zero-day bug to target Coinbase's employees remotely in a spear-phishing attempt.
"If successful, a hacker could have gained access to the Coinbase backend network and used this access to steal funds from the exchange -- a tactic that has been used numerous times in the past and has led to gigantic losses at many cryptocurrency exchanges before," the report noted.
Coinbase's Chief Security Officer Philip Martintook to Twitteryesterday to share more details about how the crypto exchange handled the attack.
"[We] pulled apart the malware and infra used in the attack and are working with various [organisations] to continue burning down attacker infrastructure and digging into the attacker involved," he said.
Martin also reiterated they had "seen no evidence of exploitation targeting customers," only employees. |
Koenigsegg Seriously Wants To Race at Le Mans
Photo credit: James Holm From Road & Track Back in 2007, Koenigsegg built a GT1-spec racing car that resembled a CCR road car, but was based more on the original CC prototype. The CCGT, shown above, had a dry weight of 2200 lbs. and a V-8 producing well over 600 horsepower. With AP Racing six-piston brakes in all corners and Koenigsegg's ultra-stiff carbon fiber chassis, this GT1 dream showed great promise during testing. But then, the FIA decided to change the rules of homologation, and the Swedes were out before they could enter. The CCGT remained a one-off. Now, the FIA World Endurance Championship's LMP1 era is coming to a close. The new Hypercar Class is in , so far populated by Toyota , Aston Martin , possibly Scuderia Cameron Glickenhaus , and who know who else. Perhaps Koenigsegg? Well, back in March, just before the Jesko's debut at the Geneva Motor Show, Christian von Koenigsegg had this to tell us about his current racing ambitions: We would love to go racing if there’s an opportunity. Because for the first time ever, there’s a category that’s geared towards our type of car. To race in the last ten years, after GT1 was gone, against 911s and 458s, would have been crazy, with a car costing ten times as much, being bogged down by balance of performance. But now, it can make sense again, and it’s extremely interesting. We have a lot of companies wanting to sponsor us, if we want to go, so it wouldn’t have to cost us that much either, and it would be very exciting. Probably if we do it, we’ll team up with some racing team instead of doing everything from the factory. The question mark is around the hybrid system. How can we fit it? In the Jesko, or do we have to make sort of another car? With WEC's Hypercar rules finally out in the open, we reached out to the factory again, but at this point, they wish not to comment further. A Jesko-based racing car has been rendered already, we're told. And there's still plenty of time until 2021. ('You Might Also Like',) 16 of the Most Interesting Engine Swaps We've Ever Seen See 70 Years of the Greatest Ferraris Ever Built These Are the 14 Best New Cars for Less Than $45,000 |
Vera Bradley To Acquire Majority Ownership Of Pura Vida For $75M
The Fort Wayne, Indiana-based bag and luggage companyVera Bradley, Inc.(NASDAQ:VRA) said Thursday it will acquire majority ownership of Pura Vida for $75 million plus up to $22.5 million in earnout consideration.
Vera Bradley signed a definitive agreement to acquire a 75% interest in Creative Genius, which also operates under the name Pura Vida Bracelets, or Pura Vida.
The transaction is expected to close late in Vera Bradley’s second quarter of 2020 and has been approved by the company's board of directors.
Vera Bradley’s revenues totaled $416.1 million for the fiscal year ended Feb. 2, and as of that date, the company has cash and investments totaling $156.6 million.
Pura Vida reported total revenue of $68.3 million, net income of $3.8 million and adjusted EBITDA of $13.7 million for the fiscal year ended Dec. 31.
Vera Bradley’s existing available cash and investments will fund 100% of the purchase price, the company said.
Vera Bradley shares closed Wednesday's session down 3.81% at $11.88.
Related Links:
Earnings Scheduled For June 20, 2019
Economic Data Scheduled For Thursday
Photo by Vbcorpcommvia Wikimedia.
See more from Benzinga
• Kroger Reports Q1 Earnings Beat
• Methode Electronics Shares Fall After Q4 Earnings Miss
• Darden Restaurants Reports Mixed Q4 Earnings, Shares Fall
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
The Carpool Karaoke microphone is pretty pointless
When senior mobile editorChris Velazcoand I go to California to coverGoogle I/O, one thing keeps me sane -- our in-car karaoke (caraoke?) sessions. We're both showtunes nerds, so belting out songs fromWickedorLes Miserablesreally makes our time stuck in Silicon Valley traffic more tolerable. So naturally, when I heard about a product aimed at improving these vehicular singing sessions, I jumped.
Karaoke equipment maker Singing Machine designed a microphone that makes you feel like you're hosting your own episode of thepopular James Corden show. The device is calledCarpool KaraokeThe Mic, and it serves as a sort of lasso that brings together all the different components you need for a karaoke session in your vehicle. The Mic isn't a standalone system with a built-in library; it's just a microphone that broadcasts your voice and your tracks to your car's speakers.
Though you can use it pretty much anywhere thanks to a standard ⅛" auxiliary port, The Mic is designed to be used by passengers in cars (and not by drivers). The easiest way to get your songs played on your car's speakers is by looking up an open frequency on the radio and tuning the mic to that channel. During our demo, a company rep surfed to 89.7FM, tuned the Mic to the same channel, and the two devices were connected, and Corden's voice played over the speakers, saying "Do you mind if we listen to some music?"
That, and the device's branding, are the only references toCarpool Karaoke. I spoke into the mic and my voice played over the car's sound system, but I also noticed some static and distortion over the radio. Singing Machine reps attributed this to us being in a more building-dense neighborhood. Once we got closer to the slightly more open west side of NYC, I stopped hearing the crackling.
Setup's not done yet, though. To play a song, you connect the mic to your phone over Bluetooth. Then, you can play from basically any music app and it will stream to your car's speakers. We used Spotify during the demo, and searched specifically for karaoke tracks (that is, without the original vocals). The mic itself won't do anything to remove vocals from music, so if you can't find an instrumental version of the song you wanted, you'll have to sing along with the artist. I was a little disappointed, as I was hoping the mic had its own built-in repertoire of songs, though to be fair Spotify or YouTube Music probably have more comprehensive libraries.
On the mic is a control panel that lets you adjust volume, echo, lights, Bluetooth connectivity and the channel you're playing on. The light effects are supposed to flicker in sync with the music, though I didn't test that during my demo. You can also adjust volume via your phone or your car's dashboard. Despite packing a battery that the company says will last four hours, the Mic was surprisingly light, especially compared to the sticks I'm used to holding at typical karaoke bars.
Once you've loaded up your song and hit play on your phone, you'll still need to find song lyrics. This to me is the biggest challenge the company has to tackle. It's simply not as fun to read lyrics off your phone while holding up a mic. If your vehicle has a tablet built-in or propped up somewhere, this might be a bit easier, but you'd still have to go through the tedious process of searching for lyrics, then zooming in so the words are big enough for everyone to read. If there was a companion app that could recognize the song you were playing (a la Shazam) and automatically displayed the lyrics in large font and scroll in time with the song, I could see this setup working so much better.
My other gripe with the mic, and this is a minor one, is that it makes karaoke such an individual event. Sure, you can huddle with your friends so you can all shout into the mic together, but when you're in an enclosed space like a car, you don't really need a mic to hear each other. Plus, if you wanted to perform a dramatic duet ofAgainst All Oddswith a friend, it might be cumbersome to share the mic in such an enclosed space. In future, though, Singing Machine said it's considering making microphones that would allow multiple people to sing along to the same song at once.
Road trip karaoke isn't an activity that needs much improvement: Singing with your friends and being silly is about 90 percent of the fun -- it's not really about hearing your voice over the radio. But kudos to Singing Machine for trying. While I was hoping for more of an all-in-one experience, I could see this working in a limo or RV where there's plenty of room to also have a screen for lyrics. If you already want one for your upcoming road trip to Vegas for a bachelorette party, you can pre-order The Mic on July 1st for $60. |
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.