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Warwick Davis' charity slams Jimmy Carr for dwarf abortion joke
Jimmy Carr's joke about dwarfism has been blasted by Warwick Davis' charity (Credit: AP/PA) Jimmy Carr has come under fire from the dwarfism community for a joke in latest show asking “Is a dwarf an abortion that made it?” Little People UK, a charity patronised by Warwick Davis has released a statement branding the comment “offensive” and “detrimental” to the well being of people with dwarfism. They said: "Anyone can have a child with dwarfism. "For parents, particularly new parents, to hear such jokes about their child can have long lasting effects. "We strongly urge reconsideration of using people with dwarfism as the subject of jokes. Read more: Ricky Gervais calls BBC out for hypocritical treatment of Jo Brand and Danny Baker "We appreciate comedy is a matter of person opinion, however in 2019, people with dwarfism should not have to live with the consequences of being the subject of someone else's humour." LPUK #RAISINGAWARENESS : The following statement has been released to the media. pic.twitter.com/o1YE5EKV9I — Little People UK (@LPUKOnline) June 19, 2019 Little People UK was co-founded in 2012 by Harry Potter star Davis , along with his wife Samantha and others. His daughter Anabelle is also on the committee. Read more: Jimmy Carr 'Morally Wrong' On Tax, Says PM In 2015 Ofcom launched an investigation into Carr's comments about dwarfs made on BBC One’s The One Show . “I tried to write the shortest joke possible,” he said. “So, I wrote a two-word joke which was: ‘Dwarf shortage’. It’s just so I could pack more jokes into the show.” Representatives for Jimmy Carr have been contacted for comment. |
How Much is Atlantic American Corporation's (NASDAQ:AAME) CEO Getting Paid?
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Hilton Howell has been the CEO of Atlantic American Corporation (NASDAQ:AAME) since 1995. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Atlantic American
According to our data, Atlantic American Corporation has a market capitalization of US$50m, and pays its CEO total annual compensation worth US$3.2m. (This figure is for the year to December 2018). That's a notable increase of 203% on last year. While we always look at total compensation first, we note that the salary component is less, at US$500k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$452k.
Thus we can conclude that Hilton Howell receives more in total compensation than the median of a group of companies in the same market, and of similar size to Atlantic American Corporation. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Atlantic American has changed over time.
Over the last three years Atlantic American Corporation has grown its earnings per share (EPS) by an average of 7.8% per year (using a line of best fit). It achieved revenue growth of 13% over the last year.
This revenue growth could really point to a brighter future. And the improvement in earnings per share is modest but respectable. Although we'll stop short of calling the stock a top performer, we think the company has potential. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking outthis more detailed historical graphof earnings, revenue and cash flow.
Given the total loss of 36% over three years, many shareholders in Atlantic American Corporation are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared the total CEO remuneration paid by Atlantic American Corporation, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. So shareholders might not feel great about the fact that CEO pay increased on last year. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. Whatever your view on compensation, you might want tocheck if insiders are buying or selling Atlantic American shares (free trial).
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
US STOCKS-S&P 500 hits all-time high as Fed signals rate cuts
(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
* Financials flat; Energy up most among S&P sectors
* Carnival Corp slides on cutting 2019 profit forecast
* Indexes up: Dow 0.91%, S&P 0.96%, Nasdaq 1.15% (Updates to open)
By Shreyashi Sanyal
June 20 (Reuters) - The S&P 500 index hit a record high on Thursday, after the Federal Reserve indicated that it could cut interest rates as soon as next month to offset 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.
The benchmark S&P 500 index, which has risen 7.4% so far in June and is on track to recoup its previous month's losses, hit an intraday record high of 2,956.20 on Thursday.
"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."
Financial stocks were flat, while the energy index jumped 1.98%, the most among all 11 major S&P sectors, as oil prices surged over 3% on renewed tensions in the Middle East after Iran shot down a U.S. military drone.
At 9:53 a.m. ET, the Dow Jones Industrial Average was up 241.66 points, or 0.91%, at 26,745.66 and the S&P 500 was up 28.07 points, or 0.96%, at 2,954.53.
The Nasdaq Composite was up 91.66 points, or 1.15%, at 8,078.98.
The technology sector rose 1.57%, boosting the S&P 500 by the most, with large-cap favorites Microsoft Corp and Apple Inc leading the charge.
Also helping tech stocks was Oracle Corp, which jumped 8.15%, after the business software maker forecast current-quarter profit above estimates.
Boeing Co gained 1.01% 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.
Cruise operator Carnival Corp slid 9.77%, 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 expected lower ticket prices in the coming months.
Rivals Royal Caribbean Cruises Ltd and Norwegian Cruise Line Holdings Ltd dropped more than 2% each.
Buoying sentiment further 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 6.14-to-1 ratio on the NYSE and by a 3.14-to-1 ratio on the Nasdaq.
The S&P index recorded 92 new 52-week highs and two new lows, while the Nasdaq recorded 99 new highs and 16 new lows. (Reporting by Shreyashi Sanyal and Aparajita Saxena in Bengaluru; Editing by Sriraj Kalluvila) |
What Kind Of Shareholders Own Abal Group plc (LON:ABAL)?
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If you want to know who really controls Abal Group plc (LON:ABAL), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. 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.'
Abal Group is not a large company by global standards. It has a market capitalization of UK£809k, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about ABAL.
Check out our latest analysis for Abal Group
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
We can see that Abal Group does have institutional investors; and they hold 60% of the stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Abal Group's earnings history, below. Of course, the future is what really matters.
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don't have many shares in Abal Group. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
I can report that insiders do own shares in Abal Group plc. In their own names, insiders own UK£46k worth of stock in the UK£809k company. This shows at least some alignment, but I usually like to see larger insider holdings. You canclick here to see if those insiders have been buying or selling.
With a 11% ownership, the general public have some degree of sway over ABAL. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
With a stake of 23%, private equity firms could influence the ABAL board. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.
It's always worth thinking about the different groups who own shares in a company. But to understand Abal Group better, we need to consider many other factors.
I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow for free.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, backed by strong financial data.
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. |
Netflix Earnings: Mark Your Calendar
Netflix(NASDAQ: NFLX)is one of the first major growth stocks to report earnings every quarter, and its second-quarter earnings report is already less than a month away. The streaming TV company will report its latest quarterly results on July 17.
Ahead of the earnings release, expectations are high. Despiterecent rate hikeson customers' subscriptions, Netflix continues to attract millions of new customers every quarter. The company'sfirst-quarter subscriber growthcame in well ahead of both management's and analysts' forecasts as customers flocked to watch the media company's growing menu of high-quality original content.
Can Netflix keep up its strong momentum?
When the streaming TV giant reports its second-quarter results, here's what to watch for.
Image source: Getty Images.
As is usually the case, Netflix's paid net member additions will likely be the most closely watched metric in the quarterly update. The company added 9.6 million paid members in Q1 -- significantly more than the 8.9 million management had forecast for the period.
In Netflix's second quarter, management expects to add 5 million new paid members. In contrast to recent quarterly trends, this figure would be below the 5.45 million new paid members Netflix garnered in the year-ago quarter.
But there's a good explanation for management's conservative forecast. The company's content schedulefavors the second half of the year. Beginning in July, Netflix has a long list of big-name series and movies coming out, including the latest seasons ofStranger Things,13 Reasons Why, andOrange Is the New Black, and Michael Bay's new film,Six Underground. These are the type of shows that bring in record numbers of subscribers.
Investors should also watch Netflix's international growth, as growth outside of the U.S. now represents the bulk of the company's net member additions. In Q1, for instance, about 80% of net member additions were international.
Look for international net additions to be close to the 3.7 million members the company added in the second quarter of 2018.
Finally, investors should check in on Netflix's operating margin, or its operating profit as a percentage of revenue. The company's operating margin fell year over year in Q1, declining from 12.1% in the first quarter of 2018 to 10.2%. In the company's second quarter, however, Netflix expects an operating margin of 12.5% -- higher than an operating margin of 11.8% in the second quarter of 2018.
Importantly, investors should look for Netflix to at least maintain its guidance for its full-year operating margin to be 13%. Management believes it can pull this off because it expects its second-half operating margin to be higher than it was during the first half of the year.
Keep an eye out for Netflix's second-quarter update after market close on Wednesday, July 24.
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Daniel Sparkshas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Netflix. The Motley Fool has adisclosure policy. |
Investing in These 3 Dividend Stocks Could Make You a Millionaire Retiree
In general, dividend stocks are the best means of turning a rather modest amount of money into a huge sum over the long term.
Their amazing growth potential largely stems from the incredible power of compounding, which occurs when you reinvest dividends. In the second year after buying a dividend stock, you earn a dividend not only on your original investment sum but also on the dividend you received and reinvested in year one, and so on and so on.
No matter your age or how close you are to retirement, you'll likely find at least one of the following top dividend stocks a good fit:American Water Works(NYSE: AWK),Realty Income(NYSE: O), andNextEra Energy(NYSE: NEE).
Company
Market Cap
Dividend Yield
3-Year Beta
Projected Average Annual EPS Growth Over Next 5 Years*
Return Since American Water's April 2008 IPO (11 years and 2 months)
American Water Works
$21.3 billion 1.7% 0.23 8.2% 678%
Realty Income
$23.1 billion 3.7% 0.21 7.8% 382%
NextEra Energy
$98.8 billion 2.4% 0.13 7.9% 346%
S&P 500
N/A 1.9% 1.0 N/A 168%
Data sources: Yahoo! Finance and YCharts. Data as of June 19, 2019. EPS = earnings per share. *Wall Street's consensus estimates.
Beta is a measure of stock-price volatility relative to the overall market. So American Water's beta of 0.23 means that it's been only 23% as volatile as the overall market over the last three years.
The following chart shows the total return picture over 20 years. American Water has been publicly traded for just over 11 years, so I usedAmerican States Wateras a proxy for American Water. (American States operates regulated water utilities in California and, like American Water, also has a notable military base business.) It's likely a conservative proxy, as American Water has outperformed American States since it went public.
NextEra Energy and American States Water stocks have returned six times as much as the broader market over the last two decades -- and Realty Income stock has beaten the market by nearly nine times!
Data by YCharts.
New Jersey-based American Water Works is the largest investor-owned water and wastewater utility in the United States, providing regulated and market-based services to about 15 million people in 47 states and one Canadian province. It has regulated businesses in 16 states -- double the number of the second-most geographically diverse U.S. water utility.
Its large size and wide footprint give it an edge over competitors in acquiring small regulated utilities, which is a notable advantage since municipalities across the country are increasing sales of their water and wastewater systems. Water utilities generally expand where they have current operations, as it's much more efficient than expanding elsewhere.
American Water has increased its dividend every year since it went public in 2008. While it's not a high yielder, the dividend is very secure, and investors should be able to count on continued annual dividend increases of 7% to 10%.
Realty Incomeis a real estate investment trust (REIT) that has historically focused on freestanding, single-tenant retail occupancies in the U.S. In April, however, it channeled its inner affluent college junior and ventured abroad for the first time, scooping up 12 properties in the U.K.
The San Diego-based REIT owned more than 5,800 properties in 49 U.S. states and Puerto Rico at the end of the first quarter. It targets financially sound tenants that are resistant to economic downturns and competition from online retailers. Many of its tenants are household names, with pharmacy chain Walgreens, convenience store chain 7-Eleven, andFedExits three top tenants.
Its consistently high occupancy rate, continued expansion, and use of triple-net leases (whereby tenants pay all major variable expenses) with built-in annual increases result in a predictable and growing income stream, which it uses to fund its dividend. Realty Income's dividend is quite robust, as REITs are required to pay out at least 90% of their income as dividends to investors.
NextEra Energy bills itself as the world's largest utility. It owns two electric companies in Florida: Florida Power & Light Company, or FPL, which keeps the lights on for more than 5 million customer accounts in the Sunshine State, and Gulf Power Company, which serves more than 460,000 customers in northwest Florida. The company also owns NextEra Energy Resources, the world's largest generator of renewable energy from the wind and sun.
Moreover, NextEra Energy has a noncontrolling stake inNextEra Energy Partners LP(NYSE: NEP), a limited partnership that owns interests in wind and solar projects across North America and natural gas pipeline assets in the U.S. As is typically the case with such setups, the LP is riskier and more volatile -- as reflected in its beta of 0.6 -- and its dividend yield (currently 4.1%) is more generous. Of the two, NextEra Energy is the better choice for most investors, as it's less risky and has outperformed the LP by 81% since the LP went public in mid-2014.
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Beth McKennahas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends FedEx. The Motley Fool recommends NextEra Energy. The Motley Fool has adisclosure policy. |
Abacus Health Products, Inc. (CNSX:ABCS): Time For A Financial Health Check
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While small-cap stocks, such as Abacus Health Products, Inc. (CNSX:ABCS) with its market cap of CA$105m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. Since ABCS is loss-making right now, it’s vital to understand the current state of its operations and pathway to profitability. Let's work through some financial health checks you may wish to consider if you're interested in this stock. Nevertheless, this is just a partial view of the stock, and I recommend youdig deeper yourself into ABCS here.
ABCS has increased its debt level by about US$2.8m over the last 12 months – which includes long-term debt. With this growth in debt, ABCS currently has US$13m remaining in cash and short-term investments , ready to be used for running the business. Its negative operating cash flow means calculating cash-to-debt wouldn't be useful. For this article’s sake, I won’t be looking at this today, but you can examine some of ABCS’soperating efficiency ratios such as ROA here.
With current liabilities at US$14m, the company has been able to meet these obligations given the level of current assets of US$20m, with a current ratio of 1.45x. The current ratio is calculated by dividing current assets by current liabilities. Generally, for Pharmaceuticals companies, this is a reasonable ratio since there's a sufficient cash cushion without leaving too much capital idle or in low-earning investments.
ABCS is a relatively highly levered company with a debt-to-equity of 47%. This is somewhat unusual for small-caps companies, since lenders are often hesitant to provide attractive interest rates to less-established businesses. But since ABCS is presently unprofitable, there’s a question of sustainability of its current operations. Running high debt, while not yet making money, can be risky in unexpected downturns as liquidity may dry up, making it hard to operate.
ABCS’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 ABCS's liquidity needs, this may be its optimal capital structure for the time being. Keep in mind I haven't considered other factors such as how ABCS has been performing in the past. I recommend you continue to research Abacus Health Products to get a more holistic view of the small-cap by looking at:
1. Valuation: What is ABCS 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 ABCS is currently mispriced by the market.
2. Historical Performance: What has ABCS's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity.
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. |
Kroger's (KR) Q1 Earnings Surpass Estimates, Decline Y/Y
The Kroger Co.KR reported first-quarter fiscal 2019 results, wherein both the top and bottom line came ahead of the Zacks Consensus Estimate. However, both the metrics continued to decline year over year. Management also reiterated its fiscal 2019 forecast.
Let’s Introspect
The company, which concluded the sale of Turkey Hill business, delivered adjusted earnings of 72 cents a share that came a penny ahead of the Zacks Consensus Estimate but fell 1.4% from 73 cents reported in the prior-year quarter. This Cincinnati, OH-based company continues to envision fiscal 2019 net earnings in the band of $2.15-$2.25 per share, which indicates an improvement over adjusted earnings of $2.11 per share reported in fiscal 2018.
Total sales of $37,251 million surpassed the Zacks Consensus Estimate of $36,865 million but decreased 1.2% from the prior-year quarter. The year over year decline in total sales was due to the sale of Kroger's convenience store business unit.
Excluding fuel and the impact of the sale of convenience store business unit, top line improved 2% from the year-ago period. The company’s digital sales surged 42%, while identical sales, excluding fuel, grew 1.5%. Management reaffirms identical sales growth forecast of 2-2.25% in fiscal 2019.
We note that gross margin increased 20 basis points to 22.2%, after expanding 10 basis points in the preceding quarter. FIFO gross margin, excluding fuel, shrunk 40 basis points from the year-ago period, mainly due to industry-wide lower gross margin rates in pharmacy. Adjusted FIFO operating profit fell 6.4% to $957 million. Kroger anticipates adjusted operating profit in the band of $2.9-$3 billion.
The Kroger Co. Price, Consensus and EPS Surprise
The Kroger Co. price-consensus-eps-surprise-chart | The Kroger Co. Quote
Strategic Endeavors
The grocery industry has been undergoing a fundamental change, with technology playing a major role and the focus shifting to online shopping. Kroger, which faces stiff competition from bellwethers such as Walmart WMT and Amazon AMZN, has taken stock of the situation and is in the process of giving itself a complete makeover. The company is expanding store base, introducing new items, digital coupons, and order online, pick up in store initiative.
The company’s “Restock Kroger” program is also gaining traction. Management informed that “Our Brands” sales grew 3.3% buoyed by double-digit growth in Simple Truth. The company also introduced 219 new Our Brands items. Pickup or Delivery reached 93% of Kroger households. The company is testing new Home Chef retail meal solutions, comprising oven-ready options, Heat & Eat choices, and lunch kits. Management is also targeting “margin-rich alternative profit streams” which are likely to contribute an estimated incremental $100 million in operating profit this fiscal year versus the prior.
Other Financial Aspects
Kroger ended the quarter with cash of $365 million, total debt of $13,469 million, and shareholders’ equity of $8,532 million. Total debt decreased $832 million from the prior-year period. The company's net total debt to adjusted EBITDA ratio jumped to 2.54 compared with 2.43 in the year-ago period but down from 2.83 at the end of fiscal 2018.
In the trailing four quarters, the company bought back $216 million of shares and paid $440 million in dividends. Management project capital expenditures — excluding mergers, acquisitions and purchases of leased facilities — to be in the range of $3-$3.2 billion in fiscal 2019.
Bottom Line
We believe that Kroger’s customer-centric business model provides a strong value proposition. However, intensifying price war among grocery stores to lure budget-constrained consumers poses concern.
Kroger carries a Zacks Rank #3 (Hold). A favorably-ranked stock includes Ingles Markets, Incorporated IMKTA having a long-term earnings growth rate of 8% with a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAmazon.com, Inc. (AMZN) : Free Stock Analysis ReportWalmart Inc. (WMT) : Free Stock Analysis ReportThe Kroger Co. (KR) : Free Stock Analysis ReportIngles Markets, Incorporated (IMKTA) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Gold ETFs in Play as Precious Metal Eyes a Rate Cut
This article was originally published onETFTrends.com.
The prospect of a Federal Reserve rate cut saw U.S. equities and gold rise ahead of the Federal Reserve's interest rate policy decision on Wednesday. The precious metal is eyeing a rate cut and even more to come through 2019, which should give gold other metals a boost.
Will Rhind, CEO of GraniteShares, is looking to more gold strength as long as the central bank remains dovish in its stance.
“The expectations, in terms of the market right now, are so overwhelmingly for a rate cut that we have, right now from a probabilities perspective, more chance of rates going to zero than we do one hike in the market,” Rhind told Kitco News. “So, at the moment, you’ve got real interest rates coming down, or expectations of real interest rates coming down and that’s always a positive to gold.”
A data-fueled Fed will not doubt take into account the latest economic data, such as the latest jobs report from the Commerce Department as an indicator on the health of the economy. Earlier this month, the Labor Department revealed that only 75,000 jobs were created in May, which fell below expectations and could be a sign that the U.S. economy could be on the verge of a slowdown.
Nonetheless, the unemployment rate remained at a generational low of 3.6 percent.
“The overwhelming factor here is the dollar and the interest rates and particularly real interest rates. That’s one of the best correlations or relationships that we have, in terms of real interest rates and gold, and so if you see real interest rates coming down, the opportunity cost obviously of holding a zero-interest rate asset like gold diminishes, and that’s positive for gold,” he said.
U.S. markets came to life on Tuesday, which also resuscitated the Asian markets on Wednesday after optimism from improved prospects of a U.S.-China trade deal came when U.S. President Donald Trump said in a tweet he “had a very good telephone conversation” with Chinese President Xi Jinping. The positive news could cast emerging markets in a positive light as the hopes for a trade deal don't appear dashed just yet.
The G-20 Summit in Japan will be on the docket for June 28 where the two leaders of the world's largest economies will discuss the current trade impasse.
Gold ETFs to Play
investors can look at exchange-traded funds (ETFs) like theSPDR Gold MiniShares (GLDM) andSPDR Gold Shares (GLD) . Adding precious metals to a portfolio certainly speaks to the diversification benefits of gold, among other things.
Additionally, short-term traders can also play the gold market through miners via theVanEck Vectors Gold Miners (GDX) ,Direxion Daily Jr Gold Miners Bull 3X ETF (JNUG)and theDirexion Daily Gold Miners Bull 3X ETF (NUGT).
For more relative market trends, visit ourRelative Value Channel.
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Saudi Arabia’s Investment in AI Could Help Boost a Pair of ETFs
This article was originally published onETFTrends.com.
As Saudi Arabia is experiencing exponential economic growth, it can utilize its surplus capital by reinvesting in disruptive technologies like artificial intelligence (AI). The country has long been a beneficiary of its vast oil reserves, but AI could help realize areas where it can diversify its economic growth.
"The United Arab Emirates (UAE) and Saudi Arabia have long-enjoyed abundant hydrocarbons reserves, granting them a prominent place in world markets and a strategic position in regional and global geopolitics,"wroteThe Economist's Economic Intelligence Unit. "However, both countries have found it harder than less well-endowed countries to diversify their economies and boost productivity growth. Today, the countries face a mixed outlook, with real GDP growth set to grow slower than in the past decade. Artificial Intelligence (AI) could help to boost diversification and growth in the next decade, and governments in both countries are keen to seize the opportunity."
Disruptive technology is not relegated to certain sectors as it will permeate into all industries in some form or fashion. For example, augmented reality is technology comprised of digital images superimposed over the real world, and its use is primed to drive industry growth–industries like real estate and manufacturing are already putting the technology to use in a variety of ways.
According to theHarvard Business Review, global firm Deloitte identified seven disruptive forces that leaders should understand and incorporate into their strategy for future growth:
1. Internet of things (IoT): disrupting the labor market and forcing employees to be “tech fluent.”
2. Continued growth of big data via analytics in organizations
3. “Cyber-physical world” that focuses on efficiency and the automation of manual tasks
4. Automation and higher-level value creation
5. The concept of “career” is changing via technology, resulting in a 60-70-year work life with continuous learning and career shifts.
6. An explosion in contingent work with a distributed talent pool that improves productivity and speed
7. Diversity and generational change for the workforce
One ETF to consider for broad-based exposure to AI and other potentially disruptive technologies is theARK Innovation ETF (ARKK) . Investors looking to capture single country strength in Saudi Arabia, they can look to theiShares MSCI Saudi Arabia ETF (KSA) .
More Saudi Arabia Index Exposure
Furthermore, Saudi Arabia's inclusion in the MSCI Index will help diversify the emerging markets index, which currently has a large tilt towards China and South Korea. After the inclusion of Saudi Arabia stocks, the total allocation towards the country will be at 2.6 percent.
MSCI plans to roll out the inclusion in two steps--one was completed May and the next one is slated for August.
While the majority of investors might have been driven away by the red prices in emerging markets during much of 2018, savvy investors who were quick to see the opportunity viewed EM as a substantial markdown. From a fundamental standpoint, low price-to-earnings ratios in emerging markets ETFs have made them prime value plays as capital inflows continue in 2019.
Saudi Arabia, however, may have been overlooked by investors via KSA. The fund seeks to track the investment results of the MSCI Saudi Arabia IMI 25/50 Index, which is a free float-adjusted market capitalization-weighted index with a capping methodology applied to issuer weights so that no single issuer of a component exceeds 25 percent of the index weight, and all issuers with a weight above 5% do not cumulatively exceed 50% of the index weight.
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Steelcase Misses Its Own Revenue Guidance in an Otherwise Strong Quarter
Office furnishings giantSteelcase(NYSE: SCS)announced its fiscal first-quarter 2020 results on Wednesday after the markets closed. The manufacturer presented a generally positive report to investors, although customer-initiated order delays prevented it from realizing its expected revenue potential over the last three months. Note that in the discussion that follows, all comparative numbers are presented against the prior-year quarter.
[{"Metric": "Revenue", "Q1 2020": "$824.3 million", "Q1 2019": "$754.0 million", "Change (YOY)": "9.3%"}, {"Metric": "Net income", "Q1 2020": "$17.8 million", "Q1 2019": "$17.0 million", "Change (YOY)": "4.7%"}, {"Metric": "Diluted earnings per share", "Q1 2020": "$0.15", "Q1 2019": "$0.14", "Change (YOY)": "7.1%"}]
Data source: Steelcase. YOY = year over year.
• While Steelcase reported a healthy revenue increase and organic revenue growth of 6%, the top line fell short of the company's own projected range of between $830 million and $855 million.
• Management explained that order growth was weighted toward the second half of the quarter. In addition, some customers requested delayed deliveries of products due to construction labor shortages that impacted office furnishing projects.
• The Americas, EMEA (Europe, Middle East, and Africa), and "other category" segments increased organic revenue by 5%, 9%, and 10%, respectively.
• Orders grew at a 15% clip on both a reported and an organic basis. The company ended the quarter with what it described as "a high backlog" of unfilled orders.
• Steelcase'sgross margindecreased slightly by 30basis pointsto 31.3%. The company attributed that contraction to higher cost of sales in the Americas segment, an effect partially offset by pricing increases instituted over the last few quarters.
• Operating expenses fell 50 basis points to 28% of sales, helpingoperating marginto improve modestly to 3.3%, compared to 3.1% in the first quarter of fiscal 2019.
Image source: Steelcase.
In the company's earnings press release, CFO Dave Sylvester highlighted the recent success of the EMEA segment, which is its fastest-growing division. Sylvester addressed one of investors' concerns -- namely, the time frame in which segment earnings are expected to catch up to brisk top-line growth: "We delivered strong year-over-year improvement in EMEA this quarter, with 9 percent organic revenue growth, improvements in gross margin and lower operating expenses as a percentage of revenue. Our teams remain solidly focused on achieving profitability in EMEA for fiscal 2020 and reaching a low- to mid-single-digit operating margin for that segment within the next three years."
That Steelcase fumbled on its own revenue outlook in the second quarter is a bit problematic as we look ahead. The delay in order completion requested by customers represents an external factor over which the company has little control. Management remains confident regarding its deep order backlog and "strong customer opportunities." Yet investors may proceed with caution in the next few months, at least until the company recognizes its delayed revenue in its second-quarter report.
As for the next quarter, management is projecting revenue of $970 million-$995 million, which equates to organic growth of 6%-9%. Diluted EPS is expected to land between $0.41-$0.45, compared to $0.41 in the second quarter of fiscal 2019. The prior-year period included a $7.5 million gain on the sale of property, which positively impacted EPS by $0.06. Thus, the fiscal second-quarter 2020 projection (at the midpoint) will represent adjusted earnings growth of roughly 19% if achieved.
In a signal that quarterly revenue recognition is indeed simply a matter of timing, Steelcase reiterated its full-year projection of 2%-6% year-over-year organic growth, and diluted earnings per share (EPS) of $1.20-$1.35. Nailing its second-quarter targets will help Steelcase persuade shareholders that this is indeed the case.
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Trucks And Drivers Targeted For Cargo Theft, Kidnapping And Hostage-Taking
Truck-borne freight is the most popular target for thieves, according to a new global study by cargo insurerTT Cluband supply chain consultantBSI. Trucks and truckers face a variety of threats including firearm-bearing kidnappers and fake ‘police.'
Trucks were the overwhelmingly favorite target of thieves in 84 percent of all incidents globally. Unfortunately, the report "Global Cargo Theft Intelligence Report for 2018" did not provide absolute numerical data.
However, the report does say that there were, on average, 15 "cargo theft incidents" per day, which would imply a global total of about 5,340 global cargo theft incidents.
In a far distant second place was theft from cargo facilities, which accounted for a mere 13 percent of all incidents. Other modalities of freight transport were involved in a tiny fraction of attacks.
Modus Operandi – slash & grab, hijacking and kidnap
The nature of how a theft was carried out showed a much greater diversity in methodology. The nature of attacks tended to vary by location, which reflects a wide variety of factors such as a country's general lawfulness (or lack thereof), sophistication of law enforcement response, facilities available to the trucking industry, attitudes regarding bribery and so on.
The so-called "Slash and Grab" attack, which is an attack by cutting through curtain-sided trailers or trucks hauling a flatbed trailer with under-tarpaulin cargo, was the primary method of attack. About 27 percent of all incidents around the world were slash and grab attacks. This method of attack is employed in Europe partly because there is a lack of secure truck parking facilities and partly because of a high prevalence of curtain-sided trucks in Europe.
The far more violent vehicle hijacking crimes were, lamentably, in second place and accounted for 16 percent of all attacks.
Central America was noted for firearms-related hijackings and kidnappings. Thieves use firearms to force truck drivers to the side of the road and "commonly" kidnap drivers to take them hostage to delay a police response.
Beware fake policemen
In the Middle East and South Africa, truck drivers have to be wary of fake policemen. It is thought that corrupt police officers supply authentic uniforms to accomplices. The fake police will attempt to carry out hijackings. They will pull trucks over on spurious grounds such as allegedly having a broken tail-light.
Thefts from trucks accounted for 12 percent of attacks, theft from other vehicles accounted for 8 percent of attacks and thefts of vehicles accounted for a further 8 percent of attacks.
As truckers around the world will no doubt testify, they are quite vulnerable on the job. Warehouses and other such facilities, while not being immune to theft, are largely secure when compared to the trucks themselves.
Insecure trucks and opportunistic thieves
Trucks are clearly not secure. About 29 percent of all cargo thefts happened in-transit, about 16 percent happened in rest areas and a further 10 percent happened at unsecured roadside parking.
Thieves appear to be fairly opportunistic in what they will steal as there was no one type of cargo that appeared to be overwhelmingly targeted.
Food and beverages accounted for 15 to 19 percent of all cargo thefts, while alcohol and tobacco accounted for a further 15 percent. Consumer products accounted for 13 percent of all goods stolen. Electronics, apparel (including footwear) and automotive cargoes were each involved in 5 percent of thefts. Other cargoes (including cargoes of an unknown nature) were involved in 42 percent of all thefts.
North and Central America
In North and Central America, the median value of a theft was US$58,500 (all dollar references hereafter are in U.S. dollars).
Cargo thefts are particularly violent in Central America, with truck hijackings used "as a primary tactic."
It's a markedly different situation in Canada and the U.S.; thieves in those jurisdictions typically target unattended trucks at insecure locations such as truck stops and gas stations.
In this region, 37 percent of all theft/attacks are hijackings; 25 percent of incidents involve theft of a shipping container or trailer; a further 15 percent involve the theft of a vehicle.
Mexico is the number one country for attacks and accounts for 68 percent of all thefts. The United States is in a far distant second at 23 percent. Other countries account for minimal percentages of thefts/attacks.
Goods and commodities stolen vary and include food and beverages (33 percent); consumer products (19 percent); construction materials (9 percent) and a wide variety of other materials.
Asia
The median theft value in Asia was $18,923. The top countries for cargo theft in this region were India (59 percent), followed by China (24 percent) and Indonesia (11 percent).
Thefts from facilities were the overwhelming method of attack, with 43 percent of thefts carried out in this way.
"A significant portion of incidents involve thieves stealing goods directly from facilities in each of these countries.
Supply chain corruption is a major element of thefts in China and India, with corrupt employees removing goods they are transporting or accessing shipments stored in warehouses or logistics facilities. "Thieves generally pilfer small numbers of items but occasionally manage to steal larger quantities of goods," the report reads.
Poor management practices
Poor management practices contribute to in-facility thefts. The report notes that in India, employees whose jobs are terminated "often" retain keys, which are later used to carry out thefts. Other failures in management include failures to follow security protocols or ensuring doors remain secure.
Other tactics in Asia include in-transit theft, where thieves board a moving truck and then throw goods to accomplices in cars trailing the freight vehicle.
Hijackings of freight vehicles remain a risk in northern India and Indonesia.
Like other regions, the nature of the goods stolen in Asia appears to be opportunistic and includes food and beverages (30 percent); metal (14 percent); electronics (8 percent); and a wide range of other goods.
Image Sourced From Pixabay
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© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
U.S. Senate Republican leader McConnell backs Saudi arms sales
By Patricia Zengerle
WASHINGTON, June 20 (Reuters) - U.S. Senate Majority Leader Mitch McConnell urged lawmakers on Thursday to vote against resolutions seeking to block President Donald Trump's plan to sidestep congressional review and go ahead with $8 billion in weapons sales to Saudi Arabia and the United Arab Emirates.
Hours before the Senate was due to vote on 22 resolutions opposing the sale of smart bombs, aircraft parts and other military equipment, McConnell noted tensions with Iran and argued that it is important for Washington to stay close to Saudi Arabia and the UAE.
"Let's not cut ourselves off from our partners," he said. "Let's not undercut the administration at a time of such delicate diplomacy."
Backers believe the resolutions of disapproval will pass, as lawmakers try to send a strong message to Riyadh over rights abuses including the murder of Saudi journalist Jamal Khashoggi, a U.S. resident, and to both countries over the civilian toll of the war in Yemen.
They also objected to Trump's decision to circumvent the congressional review process by declaring that Iran's actions pose an emergency.
However, they acknowledged it would be difficult to garner the two-thirds majorities necessary in both houses to overcome an expected Trump veto.
Iran on Thursday shot down a U.S. military drone, in an incident that fanned fears of wider military conflict as Trump tries to isolate Iran over its nuclear and ballistic missile programs and role in regional wars.
Despite McConnell's opposition, a handful of Trump's fellow Republicans in the Senate have broken with the administration over the weapons sales.
Republican Senator Lindsey Graham, normally a close Trump ally, is a resolution co-sponsor.
"There’s no amount of oil coming out of Saudi Arabia and there’s no threat from Iran that’s going to get me to back off," he said on Wednesday. (Reporting by Patricia Zengerle Editing by Bill Trott) |
Trump Says Iran Made ‘Big Mistake’ Shooting Down U.S. Drone
Iran shot down an American spy drone near the entrance to the Persian Gulf under disputed circumstances, escalating tensions in a region that’s been on the brink of a military confrontation for weeks. Oil prices surged.
“Iran made a very big mistake!” President Donald Trump said on Twitter Thursday morning.
Iranian media said the aircraft was hit inside Iranian airspace. The U.S. said the Global Hawk drone was flying in international airspace when it was shot down by an Iranian missile over the Strait of Hormuz, an oil choke point.
“Iranian reports that the aircraft was over Iran are false,” said Navy Captain Bill Urban, a spokesman for U.S. Central Command. “This was an unprovoked attack on a U.S. surveillance asset in international airspace.”
The downing of the drone fanned fears that a military clash between the U.S. and Iran is just a matter of time, stoking tension throughout the Gulf, which supplies one-third of the world’s oil. Iranian media said the aircraft was hit near Kuh Mobarak, on Iran’s southern coast.
“We will defend Iran’s airspace and maritime boundaries with all our might,” Ali Shamkhani, secretary for the Supreme National Security Council, was quoted as saying by state-run Iranian Students’ News Agency. “It doesn’t matter which country’s aircraft cross our airspace.”
Russian President Vladimir Putin warned that a war in the region could trigger a fresh wave of refugees.
“I want to say at once that this would be a catastrophe for the region�� that may stoke “a surge in violence and perhaps an increase in the number of refugees,” Putin said at his annual “Direct Line” call in show on Thursday.
The region has been volatile since Trump tightened sanctions on Iranian oil sales in early May, sent military reinforcements to the region and provoked an increasingly squeezed Iranian government to pull back on commitments under the 2015 deal that was meant to prevent it from developing a nuclear bomb.
Washington quit the accord a year ago and reimposed sanctions to try to force Iran to rein back regional proxy militias and its weapons programs.
Frictions flared further last week after an attack on two oil tankers outside the entrance to the Gulf. The U.S. blamed Iran, which has denied involvement. Iran on Monday warned European nations that it would breach the multilateral nuclear accord, which had traded some sanctions relief for limits on Tehran’s nuclear program, as soon as June 27 unless they find a way to circumvent U.S. penalties.
Iran made a very big mistake!
— Donald J. Trump (@realDonaldTrump)June 20, 2019
“We are seeing an escalation and the frequency of attacks is concerning even though they are still mostly minor,’’ said Renad Mansour, a research fellow in the Middle East and North Africa program at Chatham House. “People across the region are starting to make preparation for the possibility of a trigger coming from somewhere.’’
The tensions come with the Pentagon’s leadership in flux. Acting Secretary Patrick Shanahan is scheduled to hand over responsibility for the Defense Department to Army Secretary Mark Esper on Sunday night. It’s not clear if Esper will be Trump’s pick to permanently lead the Pentagon, which is approaching its seventh month without a confirmed secretary in charge.
On Thursday, former Vice President Joe Biden, front-runner in the Democratic presidential race, said Trump’s Iran strategy is a “self-inflicted disaster” and blamed the stepped up hostilities on U.S. withdrawal from the nuclear accord.
Oil rose after the report, with futures climbing as much as 3.3% in New York.
Attacks on regional oil infrastructure since mid-May have helped whipsaw oil prices. A measure of price volatility for the benchmark U.S. crude grade reached a five-month high on Monday, pulled between the threat of disrupted supply and mounting concern that trade wars will weaken demand.
The drone downing followed a missile strike by Iranian-backed Yemeni rebels overnight on Saudi Arabia. President Donald Trump was briefed and was “closely monitoring the situation,” White House Press Secretary Sarah Huckabee Sanders said on Wednesday night, without providing details of the incident.
A news agency operated by Iran-backed Houthi rebels in Yemen said that they had hit a power station in Jazan, on the southwestern coast of Saudi Arabia, with a cruise missile. The official Saudi Press Agency later said a projectile fired from Yemen had fallen near a desalination plant causing no damage or casualties.
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Despite Talk Of Budding Rivalry, Amazon And UPS May Find They're Stuck With Each Other
For all its symbolism,FedEx Corp.'s (NYSE:FDX) June 7 announcement that it would not renew its U.S. air delivery contract withAmazon.com, Inc.(NASDAQ:AMZN) was relatively small potatoes. The decision only affects $150 to $200 million in annual revenue for Memphis-based FedEx, whose fiscal year 2019 top-line will approach, if not exceed, $70 billion.
The real story, instead, may percolate some 400 miles to the southeast in Atlanta, home ofUPS Inc. (NYSE:UPS). Unlike FedEx, which had little to lose by dumping the domestic flying portion of its Amazon business, UPS has much more at stake. Amazon tendered 397 million parcels to UPS last year, the vast majority of which were delivered by UPS' ground network, according to data from ShipMatrix, Inc., a consultancy. By some estimates, Amazon accounts for 5 to 8 percent of UPS' $72 billion in annual revenue, compared with 1.3 percent for FedEx prior to its recent move. UPS is more deeply involved in e-commerce than is its rival, elevating the importance of its arrangement with Seattle-based Amazon, which, depending on the source of the data, has around a 40 to 50 percent share of U.S. e-commerce.
Perhaps most important, UPS relies on Amazon's package density to help it "bend the cost curve" in business-to-consumer delivery in order to wring profits out of the challenging segment, according to Rob Martinez, co-founder and CEO of consultancy Shipware, LLC.
There is a lot on the line for Amazon as well. UPS handles about 21 to 26 percent of Amazon's volumes, according to ShipMatrix. Amazon's traffic is spiking by double-digit amounts each quarter with no end in sight. Amazon's air and ground delivery network, although it is rapidly expanding, is incapable of transporting all of its volumes in time to meet its delivery commitments. Amazon faces heightened pressures now that it has made one-day delivery the standard for orders placed through its popular "Prime" service. As a result, UPS remains an important cog in Amazon's delivery wheel. "Both parties are getting what they want out of the relationship," said Martinez. "FedEx picking up its marbles and leaving the sandbox doesn't change that."
At the same time, the UPS-Amazon relationship is conflicted, and will likely get more so as Amazon continues to gain strength as a transport and logistics provider. UPS and Amazon compete to provide fulfillment and delivery services for small- to mid-size e-merchants. Amazon's "Fulfillment by Amazon" service, in which third-party merchants use it for storefront, fulfillment and delivery and which now accounts for more than half of the company's revenue, threatens to poach business from UPS – if it hasn't done so already – as merchants that may have used UPS for deliveries in the past now bundle fulfillment and delivery with Amazon. Amazon chooses how to move FBA packages based on a series of criteria, according to a company spokeswoman.
UPS Spokesman Steve Gaut said the company is sanguine about the "co-opetition" that exists between the two. UPS, Gaut said, has "mutually beneficial business relationships and competitive relationships with companies in our industry. We closely monitor the behavior of our customers and competitors. We work to optimize the relationship so that it serves the interests of UPS while also delivering value to our customers."
As Amazon builds out its shipping network, it will face the same question more frequently – whether to make deliveries with its in-house operation, or continue to outsource. According to ShipMatrix, it costs Amazon $3 per parcel to deliver via its own network, and $6 to use UPS' ground-delivery service. However, Satish Jindel, head of ShipMatrix, said the comparisons are skewed by distance and density. Amazon uses its drivers on short-haul, densely populated routes. Parcels tendered to UPS cover less-dense, longer-haul markets, thus accounting for the higher unit charges, Jindel said.
In the long run, Amazon will conclude the in-house option is the way to proceed, and will be "pulling more business away from UPS" in the process. He added, though, that UPS may benefit in the short-term as Amazon looks to find a home for some of the volumes it previously tendered to FedEx.To offset the loss of any Amazon business, UPS will need to attract volume from all other online retailers, particularly the small- to mid-size shippers that generate higher yields for carriers because they can't command the higher discounts routinely granted to customers like Amazon, Jindel said.
Because of its huge volumes, Amazon has been able to call the shots with its carriers. ShipWare's Martinez estimated that its transportation rates and any accessorial charges not already waived are capped at a 1.5 percent annual increase. Accessorial charges, which are imposed by carriers for services that go beyond the basic line-haul – can account for as much as 35 percent of a shipper's bill. Unless, of course, they are waived or are drastically reduced.
But there are hints that the pendulum may be swinging in the opposite direction. A couple of weeks ago, eMarketer, considered an authoritative e-commerce resource, said Amazon's direct share of the e-commerce market, rather than being around 50 percent as the consultancy has long thought, may actually be closer to 38 percent. The revision came after Amazon Chairman and CEO Jeff Bezos said third-party merchant traffic was growing at a much faster rate than its traditional first-party business, where Amazon directly buys goods at wholesale and sells them at retail.
The e-merchant pile-on may also dilute Amazon's outsize parcel influence in the years ahead. Businesses other than Amazon will account for more than half of the expected e-commerce revenue growth over the next five years, said Amit Mehrotra, analyst for Deutsche Bank. FedEx has said that daily U.S. parcel volumes will double from current levels to 100 million by 2026. FedEx said it ended the Amazon contract because it sees a much broader e-commerce market to support with its air services. Though it didn't say as much, that reshaped market will likely be more lucrative since most merchants won't receive Amazon-like discounts.
Analysts like Mehrotra and Kevin Sterling of Seaport Global Securities believe that in the wake of the FedEx move, the time is right for UPS to take a harder pricing line with Amazon. Sterling said UPS has already begun to adopt a firmer stand. However, the gauntlet may not be thrown down until the upcoming peak holiday shipping season. The ordering and shipping cycle will be compressed to just three weeks because Thanksgiving falls on November 28, putting additional pressure on Amazon's resources, Sterling said. FedEx will not be available to fly Amazon packages, and Amazon's air network will likely not be fully ramped up to handle the expected parcel avalanche. What's more, UPS is no longer afraid to walk away from excess peak volume to maintain network fluidity.
The last time the peak season was this short was in 2014, according to Sterling. Then, Amazon deluged UPS with millions of unexpected last-minute parcels. UPS accepted them, and in the process gummed up its network. Hundreds of thousands of holiday packages were delivered late, leaving UPS with a reputational black eye and putting Amazon in full "blame game" mode. It was around that time, Sterling noted, that Amazon began developing its own air network.
Image sourced from Google
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© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Massimo Bottura Will Teach You How to Make Tortellini in New MasterClass
Massimo Bottura is often hailed as one of the best, if not the best, chefs in the world—and it’s easy to see why. His Modena restaurant Osteria Francescana frequently tops the World’s 50 Best Restaurants list , with a menu that touts artistic, high-concept dishes like an “eel swimming up the Po River” and “Oops! I dropped the lemon tart.” You’d think taking cooking classes with him would be a once-in-a-lifetime opportunity, or at the very least incredibly expensive, but a new MasterClass will change that. On Thursday, the online learning platform announced that Bottura is joining the ranks of many other high-profile chefs, like Alice Waters and Gordon Ramsay, in teaching his own MasterClass—all dedicated to modern Italian cooking. “To me, cooking is an act of love,“ Bottura said in a statement. “In my MasterClass, we will reimagine cooking. I’ll 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.” In the 12-class course, Bottura and his sous chef at Osteria Francescana, Taka Kondo, will show you how to make several classic dishes from the Emilia-Romagna region of Italy, including tagliatelle with ragu, tortellini, pumpkin risotto, and Bottura’s famous Emilia Burger —consisting of a seared ground beef patty mixed with Parmigiano-Reggiano, topped with green sauce and balsamic mayo on a toasted brioche bun. A quick glance at the lesson plan also finds an entire episode dedicated to the evolution of pesto (Bottura apparently likes to use breadcrumbs instead of pine nuts), as well as “spin-painted beet,” a roasted beet dish that’s inspired by Damien Hirst , one of Bottura’s favorite artists. Bottura is also passionate about zero-waste cooking—his non-profit organization, Food for the Soul , empowers communities to fight food waste through social inclusion and partnerships. Accordingly, several episodes demonstrate how to repurpose leftover food, like the passatelli accompanied by vegetable brodo di tutto (“broth of everything”), made with vegetable scraps; his “Better Than Panettone” soufflé takes leftover cakes and sweet breads (in this case, panettone) to make a light dessert. The course rounds out with two bonus episodes—a tasting demonstration of three ingredients fundamental to Italian cuisine (tomatoes, Parmigiano-Reggiano, and balsamic vinegar), and an explainer behind two signature dishes at Osteria Francescana, “The Crunchy Part of the Lasagna” and “Mediterranean Sole.” All skill levels are welcome to the course, according to the announcement. If you’re interested, the classes are live now—you can enroll with unlimited access for a one-time fee of $90; or, a yearly fee of $180 will give you unlimited access to all MasterClass courses. In other MasterClass news, the online learning platform also debuted an Aaron Franklin course last month, just in time for summer. The 16-lesson series covers everything from smoking pork ribs to creating that famous Central Texas barbecue brisket—learn more in our chat with Franklin . |
Introducing Atlantic Capital Bancshares (NASDAQ:ACBI), The Stock That Dropped 19% In The Last Year
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Investors can approximate the average market return by buying an index fund. But if you buy individual stocks, you can do both better or worse than that. Unfortunately theAtlantic Capital Bancshares, Inc.(NASDAQ:ACBI) share price slid 19% over twelve months. That falls noticeably short of the market return of around 5.0%. Longer term investors have fared much better, since the share price is up 17% in three years. It's down 1.7% in the last seven days.
View our latest analysis for Atlantic Capital Bancshares
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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).
Atlantic Capital Bancshares managed to increase earnings per share from a loss to a profit, over the last 12 months. Earnings per share growth rates aren't particularly useful for comparing with the share price, when a company has moved from loss to profit. So it makes sense to check out some other factors.
Atlantic Capital Bancshares managed to grow revenue over the last year, which is usually a real positive. Since we can't easily explain the share price movement based on these metrics, it might be worth considering how market sentiment has changed towards the stock.
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 Atlantic Capital Bancshares has improved its bottom line over the last three years, but what does the future have in store? You can see how its balance sheet has strengthened (or weakened) over time in thisfreeinteractive graphic.
Atlantic Capital Bancshares shareholders are down 19% for the year, but the broader market is up 5.0%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Fortunately the longer term story is brighter, with total returns averaging about 5.2% per year over three years. Sometimes when a good quality long term winner has a weak period, it's turns out to be an opportunity, but you really need to be sure that the quality is there. Before spending more time on Atlantic Capital Bancsharesit might be wise to click here to see if insiders have been buying or selling shares.
We will like Atlantic Capital Bancshares better if we see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on 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. |
American man given death setence after bones of Brit dug up in desert
Tracy Petrocelli (pictured) killed British man Stephen Scane, whose skull was found in Utah 35 years ago (SWNS) A US serial killer suspected of killing a man from Somerset in 1981 has been sentenced to death by a Nevada court for his crimes. Tracy Petrocelli, 67, is thought to have killed Stephen Scane, whose weathered skull was found in Utah 35 years ago. Petrocelli was convicted of two murders in 1981 but detectives believe he is responsible for killing eight people across three US states. Mr Scane’s case failed to make court due to a lack of evidence. British Carpenter Stephen Scane, then 23, whose remains were discovered buried in Utah in August 1984 (SWNS) Petrocelli was given the death sentence in 1985 but this was overturned two years later by an appeal court, which found his rights had been violated ahead of sentencing. In December 2018, at the time of Mr Scane's inquest, Summit County Police said in a statement: "Petrocelli remains a suspect in the murder of Stephen Scane." Petrocelli’s executing was re-ordered in May of this year, after rejecting the killers plea for life in prison without parole. A police mugshot of Petrocelli when he was charged with murder in 1984 (SWNS) Mr Scane's uncle Derek, speaking from Frome, Somerset, said: "Why should he draw breath when he has committed all these crimes? "100 per cent he should be executed, for Stephen and for the others." Somerset carpenter Mr Scane moved from his home in Somerset to Wyoming in 1981. Read more on Yahoo News UK CCTV captures brutal crowbar attack that left man in four-day coma Mother lay dead in airing cupboard for 15 months 'unnoticed' Speedboat killer Jack Shepherd loses appeal against conviction Three years later in 1984, Mr Scanes’ skull and collarbone were discovered by hikers in a national forest park in Utah. The skull showed evidence of multiple gunshot wounds. The cold case was reopened 14 years ago, when detectives identified Petrocelli as a murder suspect. The cold case of Mr Scanes' remains was reopened after 14 years (SWNS) He was also convicted of murdering car salesman James Wilson in Reno, Nevada, and his 18-year-old fiancée, Melanie Barker, in Seattle in 1982, receiving the death sentence. Then, in 2009, Petrocelli pleaded guilty to the murder of surfer Dennis Gibson with a judge sentencing him to 15 years to life in prison. View comments |
Factors Setting the Tone for Carnival's (CCL) Q2 Earnings
Carnival Corporation CCL is likely to witness earnings decline, when it reports second-quarter fiscal 2019 numbers. However, the company came up with with an average trailing four-quarter beat of 7.1%. Furthermore, Carnival delivered a positive earnings surprise of 11.4% in the last reported quarter. How Are Estimates Faring? The Zacks Consensus Estimate for second-quarter earnings is pegged at 61 cents, which remained flat over the past 30 days. This reflects a 10.3% decline from 68 cents registered in the year-ago quarter. Revenues are expected to come in at $4,532 million, up 4% year over year. Factors at Play Carnival’s top line in second-quarter fiscal 2019 is likely to be driven by strength in passenger tickets, and onboard and other as well as tour and other businesses. However, earnings in the quarter are likely to hurt by higher costs. Passenger Tickets revenues are expected to increase year over year, courtesy of solid bookings. The Zacks Consensus Estimate for the segment’s second-quarter revenues is pegged at $3,246 million, implying a 1.7% improvement from the year-ago reported figure. In the fiscal first quarter, passenger tickets revenues increased 1.6% year over year. Meanwhile, Onboard and Other revenues, which witnessed a 35% gain in second-quarter fiscal 2018, are anticipated to keep the trend alive. The Zacks Consensus Estimate for the segment’s revenues is pegged at $1,239 million, indicating 10.4% growth from the prior-year reported figure. The upside is expected to be driven by higher onboard spending by guests. However, the consensus estimate for net revenue yield in the second quarter is likely to decrease 2.3% year over year, following a 0.5% increase in the last reported quarter. Notably, Carnival has adopted a strategy to grow beyond its familiar itineraries and capitalize on new markets. The Asian source market for cruises is expected to grow steadily as it becomes more consumer-driven. Carnival is especially optimistic about growth prospects of the Japanese and Australian markets. Story continues Carnival Corporation Price and EPS Surprise Carnival Corporation Price and EPS Surprise What Does the Zacks Model Say? Our proven model does not conclusively show that Carnival is likely to beat earnings estimates in second-quarter fiscal 2019. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Carnival has an Earnings ESP of -0.70% and a Zacks Rank #3, which make surprise prediction difficult. You can see the complete list of today’s Zacks #1 Rank stocks here . Stocks Poised to Beat Earnings Estimates Here are some Consumer Discretionary stocks that according to our model have the right combination of elements to post an earnings beat in the upcoming releases. BJ's Wholesale Club Holdings, Inc. BJ, Las Vegas Sands Corp. LVS and Marriott Vacations Worldwide Corporation VAC, each has a Zacks Rank #3 and an Earnings ESP of +0.27%, +7.28% and +4.41%, respectively. 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 >> Click to get this free report Las Vegas Sands Corp. (LVS) : Free Stock Analysis Report Marriot Vacations Worldwide Corporation (VAC) : Free Stock Analysis Report Carnival Corporation (CCL) : Free Stock Analysis Report BJ's Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research |
EMERGING MARKETS-Latam currencies, stocks rally as Fed lifts rate cut hopes
June 20 (Reuters) - Most Latin American currencies firmed on Thursday as the U.S. dollar remained on the backfoot after the Federal Reserve boosted bets of an interest rate cut as early as next month. Emerging market assets rallied, with the MSCI's index of Latin American stocks gaining 1.3% and the region's currencies index rising over 1%. However, trading volumes were thin as markets in Brazil, which have a big impact on the indexes, and Argentina were closed for Corpus Christi day. Boosting appetite for risky assets, the Fed on Wednesday signaled interest rate cuts this year, saying it is ready to battle growing global and domestic economic risks as it took stock of rising trade tensions and growing concerns about weak inflation. Mexico's peso touched over a seven-week high against the dollar, while the country's main IPC stock index jumped, led by a 2.6% gain for airport operator Grupo Aeroportuario del Pacifico. Mexico on Wednesday became the first country to ratify the United States-Mexico-Canada Agreement (USMCA) agreed late last year to replace the North American Free Trade Agreement (NAFTA) at the behest of U.S. President Donald Trump. However, analysts pointed to caution about reaching an agreement with the United States. "The agreement's main hurdle is still in the U.S., where it is unlikely the Democrat-controlled House of Representatives will approve it this year (a 35% probability)," analysts at Eurasia Group wrote in a note. "As the U.S. presidential elections ramp up and the tensions between Democrats and the White House increase, it will become more difficult for the USMCA to be approved." Chile's peso gained over 1%, tracking a gain in the price of copper, the country's top export. Colombia's peso firmed more than 1%, while local stocks posted similar gains, with energy firm Ecopetrol SA riding on the back of higher lower oil prices . Key Latin American stock indexes and currencies at 1425 GMT Stock indexes daily % Latest change MSCI Emerging Markets 1055.82 1.69 MSCI LatAm 2840.27 1.3 Brazil Bovespa - - Mexico IPC 43845.70 1.08 Chile IPSA 5044.43 0.18 Argentina MerVal - - Colombia IGBC 12678.55 1.13 Currencies daily % change Latest Brazil real - - Mexico peso 18.9680 0.26 Chile peso 683.6 1.26 Colombia peso 3204.1 1.07 Peru sol 3.312 0.51 Argentina peso - - (interbank) (Reporting by Sruthi Shankar, additional reporting by Aaron Saldanha in Bengaluru Editing by Marguerita Choy) |
Inflation is Healthy for the Economy – but too much can Trigger a Recession
This article was written by Richard S. Warr, Professor of Finance at North Carolina State University, and originally appeared onThe Conversation, a not-for-profit news site dedicated to unlocking ideas and knowledge from academic experts.
In a healthy economy, prices tend to go up – a process called inflation.
While you might not like that as a consumer, moderate price growth is a sign of a healthy, growing economy. And, historically at least, wages tend to go up at about the same pace during periods of inflation.
The U.S. Federal Reserve sees 2% inflation as the sweet spot for the economy, which is about its current level. But some economists, including those at the Fed, worry the economy is weakening, which would cause inflation to drop below its target – something it wants to avoid. The latest data, out June 12, suggested this may be happening.
As a result, the Fed signaled on June 19 that it is ready to cut interest rates for the first time in more than a decade to give the economy a boost, which could indirectly spur more inflation.
The problem is, too much inflation can also be a bad thing.
I've been studying how inflation affects markets for many years. Let me explain what it is – and why the Fed has a tough job ahead.
Inflation is defined as the rate of change in the prices of everything from a bar of Ivory soap to the cost of an eye exam.
In the U.S., the most commonly used measure of inflation is based on something called the consumer price index. Simply put, the index is the average price of a basket of goods and services that households typically purchase. It's often used to determine pay raises or to adjust benefits for retirees. The year-over-year change is what we call the inflation rate.
The current change in the index is around 2%. But this is an average across a range of categories. For example, over the last year, the price of tobacco products went up 4.6%, while the pricing of apparel actually fell 3%. Clearly, the actual change in cost of living will vary from person to person depending on how they spend their money.
The latest data from the Department of Labor showed a closely watched measure of inflation was lower than expected in May, a worrying sign that the economy may be growing too slowly.
A moderate amount of inflation is generally considered to be a sign of a healthy economy, because as the economy grows, demand for stuff increases. This increase in demand pushes prices a little higher as suppliers try to create more of the things that consumers and businesses want to buy. Workers benefit because this economic growth drives an increase in demand for labor, and as a result, wages usually increase.
Finally, these workers with higher wages go out and buy more stuff, and so this "virtuous" cycle continues. Inflation isn't really causing all this to happen – it is merely the symptom of a healthy, growing economy.
But when inflation is too low – or too high – a "vicious" cycle can take its place.
Very low inflation usually signals demand for goods and services is lower than it should be, and this tends to slow economic growth and depress wages. This low demand can even lead to a recession with increases in unemployment – as we saw a decade ago during the Great Recession.
Deflation, or falling prices, is particularly bad. When prices are decreasing, consumers will delay purchases. For example, why buy a new washing machine today if you could wait a few months to get it cheaper?
Deflation also discourages lending because it leads to lower interest rates. Lenders typically don't want to lend money at rates that give them a very small return.
Fortunately, deflation is rare in developed economies.
But getting the balance right isn't easy. Too much inflation can cause the same problems as low inflation.
If left unchecked, inflation could spike, which would likely cause the economy to slow down quickly and unemployment to increase. The combination of rising inflation and unemployment is called "stagflation," and is feared by economists, central bankers and pretty much everyone else. It's what can cause an economic boom to suddenly turn to bust, as Americans saw in the late 1970s.
The Fed managed to reduce inflation to normal levels only after driving up short-term interest rates to a record 20% in 1979.
So returning to the current situation, the Fed has to tread carefully.
Cutting interest rates now should boost the U.S. economy but risks driving up inflation beyond “healthy” levels. If the Fed does nothing, inflation may fall as economic growth slows. Either path could lead to recession.
This is why the Fed is typically very cautious.
The Motley Fool has adisclosure policy. |
Why Fresh Del Monte Produce Inc. (NYSE:FDP) Could Be Worth Watching
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Fresh Del Monte Produce Inc. ( NYSE:FDP ), which is in the food business, and is based in Cayman Islands, saw a decent share price growth in the teens level on the NYSE over the last few months. As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Today I will analyse the most recent data on Fresh Del Monte Produce’s outlook and valuation to see if the opportunity still exists. View our latest analysis for Fresh Del Monte Produce What's the opportunity in Fresh Del Monte Produce? Great news for investors – Fresh Del Monte Produce is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $36.82, but it is currently trading at US$27.71 on the share market, meaning that there is still an opportunity to buy now. Another thing to keep in mind is that Fresh Del Monte Produce’s share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again. What does the future of Fresh Del Monte Produce look like? NYSE:FDP Past and Future Earnings, June 20th 2019 Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with a relatively muted revenue growth of 10.0% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Fresh Del Monte Produce, at least in the short term. Story continues What this means for you: Are you a shareholder? Even though growth is relatively muted, since FDP is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation. Are you a potential investor? If you’ve been keeping an eye on FDP for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy FDP. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy. Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Fresh Del Monte Produce. You can find everything you need to know about Fresh Del Monte Produce in the latest infographic research report . If you are no longer interested in Fresh Del Monte Produce, you can use our free platform to see my list of over 50 other stocks with a high growth potential . We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-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. |
Car payment trouble? How to turn it around
Your monthly car payment is not only a ticket to freedom, letting you enjoy summer road trips, but also a lifeline that gets the kids to school and you to work. But if it consumes too much of your budget, your ticket to ride could turn into a ticket to financial trouble. More than 7 million Americans were "seriously delinquent," or over 90 days late, on their car payment at the end of 2018, according to the Federal Reserve Bank of New York. And 2.4% of loans transitioned into serious delinquency in the final quarter of 2018, up from 1.5% in 2012. If you're struggling with a car payment, dig into your budget and options. Then, take action. UNDERSTAND YOUR CAR BUDGET "The first thing someone struggling with a car payment should do is reevaluate where their money is going," says Chicago financial coach Shanna Due. Car expenses go beyond your monthly loan payment. The total cost of ownership includes insurance, gas and regular maintenance. In general, aim to spend less than 10% of your take-home pay on your car loan and less than 15% to 20% of it on overall costs. Total up what you've paid on all car-related costs over the past three months to get a clearer picture of your total ownership costs. Next, try to trim your auto expenses. Get insurance quotes to see if you can find similar coverage for less, and take on small repairs or maintenance tasks yourself. If needed, expand your cost-cutting to the rest of your budget. "Once they've reevaluated where they are (with their car budget), can they modify the rest of their expenses to make their car costs fit in," Due says. "If not, begin to look at an exit plan." DIAGNOSE THE PROBLEM Use what you learn about your car budget to understand your payment trouble: Was it a one-time blip or the sign of an unaffordable loan? You have a few remedies to get back on track if you've just missed a payment or are a few months behind. Act fast to limit damage to your credit and to avoid repossession. Story continues It was a short-term issue: — You just overlooked the bill: Pay what's needed to bring your account current as soon as you can. See if you can automate future payments to avoid mistakes. — You were temporarily short of cash: Maybe a job loss or a big expense made your loan unaffordable in the short term. If so, you can ask your lender for forbearance, where it suspends payments for a few months and lengthens your loan by a corresponding time. You'll pay more in interest over the life of the loan but get temporary relief while you catch up. It's a long-term problem: If you simply can't afford your car and need to make big changes to your monthly auto expenses, first determine if you have equity. To do this, find the current value of your car . If your car is worth more than you owe, you have equity. If it's worth less than you owe, you're "underwater" — and you have fewer options. "Equity is code for 'I can escape,'" says Matt Jones, senior consumer advice editor at automotive website Edmunds.com. "If you have equity, you can sell it without too much of a problem and thus can fix the problem." — If you have equity: You could sell and get a less-costly car. Or, you could try to refinance. Check credit unions, banks or online lenders to see if you can refinance your loan at a lower interest rate and make your payment more manageable. — If you don't have equity: When the balance of your loan is more than the value of the car, you'll have to make up the difference to get out of the loan. If you want to sell or refinance, be prepared to pay the difference in cash or by taking out a small loan. TAKE ACTION Once you know your equity standing and how you want to manage your car loan, work to resolve the problem. For an unaffordable car, it's best to downsize or refinance your loan. Call your lender if you want forbearance or to extend your loan terms. Both options will cost you more in the long term but can make payments more manageable. Regardless of your equity, lenders will likely work with you, Jones says. "The banks are so eager to work with people because they do not want these cars back," he says. ______________________________________ This column was provided to The Associated Press by the personal finance website NerdWallet. Sean Pyles is a writer at NerdWallet. Email: spyles@nerdwallet.com. Twitter: @seanpyles. RELATED LINKS: NerdWallet: What's my car worth? How to find its resale value http://bit.ly/nerdwallet-whats-my-car-worth |
2019’s Bitcoin Price Boom is Reawakening Hellish Crypto Scammers
ByCCN Markets: Cryptocurrency evangelist and educator Andreas Antonopoulos has warned that the bull run the bitcoin price has been enjoying has revived fraudulent activities in the crypto space.
In a series oftweets, Antonopoulos indicated that the prolonged crypto winter had driven scammers away. But now with the bitcoin price having nearly tripled from its 2018 low, bad actors are back with a bang.
Antonopoulos likened the current wave of scams as reminiscent of the period between August and December 2017. This was when the bitcoin price from below $3,000 to a record high of nearly $20,000.
Bitcoin Price between August – December 2017 | Source: CoinMarketCap
Read the full story on CCN.com. |
Asia rice: Demand lulls in top hubs; Bangladesh hopes for a deal with Philippines
By Diptendu Lahiri
BENGALURU (Reuters) - Export prices for Indian rice edged up this week on the back of an appreciation in the rupee even as demand was lacklustre in most exporting centres, while Bangladeshi traders looked for an export deal with the Philippines.
For top rice exporter India, prices for the 5% broken parboiled variety were quoted around $367-$370 per tonne this week, up from last week's $365-$367.
Export demand is weak and unlikely to revive in the next few weeks unless prices correct, said one exporter based at Kakinada in the southern state of Andhra Pradesh.
In neighbouring Bangladesh, traders are in talks with the Philippines to strike a deal for rice exports, the country's agriculture minister Abdur Razzak said earlier this week.
The South Asian country could export 200,000 tonnes to 300,000 tonnes of rice to the Philippines, he added.
Bangladesh, which usually produces parboiled rice, has lifted its long-standing ban on rice exports, hoping to sell as much as 1.5 million tonnes to support farmers after a sharp drop in prices.
However, it still finds it difficult to export rice even after a fall in domestic prices, given the produce is more expensive than in India and Thailand.
In Thailand, the world's second largest rice exporter, prices widened to $390-$407 a tonne on Thursday, free on board Bangkok (FOB), from $393-$404 a tonne last week.
Traders say the increase in prices can be attributed to a seasonal decline in rice supply.
"It is normal that the price increases during the rainy season, there is less supply and the logistic cost is higher," a Bangkok-based rice trader said.
Thailand's baht, which hit its highest in nearly six years against the U.S. dollar on Thursday, is also boosting prices for the staple, which continue to dampen demand for Thai rice.
"Demand has been flat since the start of the year and exporters are only selling to their usual customers," another Bangkok-based rice trader said.
"Supply will continue to decline through the rainy season until at least August, when a new batch of rice will enter the market."
Demand was uninspiring in Vietnam as well, where rates for the 5% broken rice variety fell to $340-$345 a tonne on Thursday from $345-$350 last week, traders said.
"Trading activities are quiet this week on lacklustre demand, though supplies from the ongoing summer-autumn harvest are abundant," a trader based in Ho Chi Minh City said.
Traders said the harvest will end in two to three weeks.
(Reporting by Panu Wongcha-um in Bangkok, Khanh Vu in Hanoi, Rajendra Jadhav in Mumbai, Ruma Paul in Dhaka; Additional reporting by Swati Verma; Editing by Jan Harvey) |
Sector ETFs & Stocks to Buy or Avoid Post Fed Meeting
In its latest FOMC meeting that concluded yesterday, the Fed left interest rates unchanged as widely expected within its target range of 2.25-2.5% but hinted at future rate cuts, if needed, to protect the economy from trade conflicts and other threats.The central bank has dropped the word “patient” in favor of language promising to “closely monitor the implications of incoming information for the economic outlook.” Fed also said that it would "act as appropriate to sustain the expansion” because "uncertainties" have increased (read: Best June for Stocks in Decades: 5 Best ETFs).A survey of the 17 Fed officials showed that nearly half expect at least one rate cut this year, with seven projecting two cuts. According to the CME FedWatch tool, chances for a cut at the Fed's July meeting rose to 100% compared with 84% before the meeting concludes. Fed funds futures also show a 100% chance of at least a 25-bps rate cut at the Fed’s July meeting. Futures also show 80% odds of rates being cut by 50 bps between now and September.
Rate Cuts: Boon and BaneIn a lower-rate environment, high-dividend-yield sectors such as utilities and real estate will be the biggest beneficiaries given their sensitivity to interest rates. This is especially true as these offer higher returns due to their outsized yields. Additionally, securities in capital-intensive sectors like telecom would also be benefited by lower rates. Further, lower interest rates will keep borrowing cost down, thereby resulting in higher consumer spending and rise in economic activities. This will in turn increase profitability across various segments. Businesses will also face lower loan rates over time (read: ETF Strategies to Follow If Fed Cuts Rate).However, decline in rates will weigh on the U.S. dollar against the basket of other currencies, thereby pulling out capital from the country. Sectors like financials, industrials, technology and consumer discretionary will be severely impacted. In fact, banks are in the most disadvantageous position as they seek to borrow money at short-term rates and lend at long-term rates. If interest rates drop, banks would be able to earn less on lending and pay higher on deposits. This would compress net margins and banks’ profits. Also, insurance companies are able to earn lower returns on their investment portfolio of longer-duration bonds.Given this, we have highlighted ETFs & stocks from sectors that will benefit from lower rates and some that will be badly impacted.Sectors to BuyReal EstateSchwab U.S. REIT ETF SCHH, having AUM of $5.6 billion and average daily trading volume of 883,000 shares, offers broad exposure to the real estate sector. It has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.With market cap of $13.8 billion,Host Hotels & Resorts Inc. HSTis the largest lodging real estate investment trust (REIT) and one of the largest owners of luxury and upper-upscale hotels. This #2 (Buy) Ranked stock is expected to post earnings decline of 2.82% for this year.UtilitiesThis Zacks #3 RankedUtilities Select Sector SPDR XLUprovides exposure to companies from the electric utility, gas utility, multi-utility, and independent power producer and energy trader industries. It has amassed $9.9 billion in its asset base and trades in volume of 17.8 million shares per day on average (read: ETFs Set to Soar on Rate Cuts Signal).Brookfield Renewable Partners L.P. BEP, an operator of renewable power platform, is expected to post earnings growth of 261.5% for this year. It has a Zacks Rank #2 and a market cap of $6.1 billion.Consumer StaplesVanguard Consumer Staples ETF VDC, carrying a Zacks ETF Rank #3, offers broad exposure to the U.S. consumer staples segment. It has managed assets worth $5.1 billion and sees volume of 187,000 shares a day on average (read: Consumer Staples ETFs Red Hot: Will the Rally Last?).With a market cap of $6.4 billion,Pilgrim's Pride Corporation PPCis one of the largest chicken companies in the United States, Mexico and Puerto Rico. The stock is expected to see earnings growth of 43% year over year this year and has a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Sectors to AvoidFinancialsSPDR S&P Regional Banking ETF KRE, with AUM of $2.2 billion and average daily volume of 8.3 million shares, offers broad exposure to the regional banks segment. The fund charges 35 bps in annual fees and has a Zacks ETF Rank #3.With a market cap of $20.6 billion,State Street Corporation STTis one of the world's leading providers of financial services to institutional investors, including investment servicing, investment management and investment research and trading. The stock is expected to post earnings decline of 14.5% for this year. It carries a Zacks Rank #5 (Strong Sell).IndustrialsZacks #3 RankedInvesco S&P 500 Equal Weight Industrials ETF RGIoffers exposure to the broad industrial sector with equal-weight exposure. It has AUM of $204.6 million and trades in an average daily volume of nearly 22,000 shares (read: US Manufacturing PMI Data Highly Disappointing: ETFs in Focus).Astec Industries Inc. ASTEis a manufacturer of specialized equipment for building and restoring the world's infrastructure. It has a Zacks Rank #5 (Strong Sell) and market cap of $684.7 million. Its earnings are expected to decline 19.9% for this year.Consumer DiscretionaryInvesco DWA Consumer Cyclicals Momentum ETF PEZprovides exposure to consumer discretionary companies that are showing relative strength (momentum). With AUM of $50.8 million and average daily volume of 13,000 shares, the fund carries a Zacks ETF Rank #3.Sony Corporation SNE, which develops and manufactures consumer and industrial electronic equipment, has a Zacks Rank #4 (Sell) and a market cap of $66 billion. It is expected to see earnings decline of 41.4% for this fiscal year (ending March 2020).
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportBrookfield Renewable Partners L.P. (BEP) : Free Stock Analysis ReportState Street Corporation (STT) : Free Stock Analysis ReportSony Corporation (SNE) : Free Stock Analysis ReportInvesco DWA Consumer Cyclicals Momentum ETF (PEZ): ETF Research ReportsSPDR S&P Regional Banking ETF (KRE): ETF Research ReportsSchwab U.S. REIT ETF (SCHH): ETF Research ReportsUtilities Select Sector SPDR Fund (XLU): ETF Research ReportsVanguard Consumer Staples ETF (VDC): ETF Research ReportsInvesco S&P 500 Equal Weight Industrials ETF (RGI): ETF Research ReportsPilgrim's Pride Corporation (PPC) : Free Stock Analysis ReportAstec Industries, Inc. (ASTE) : Free Stock Analysis ReportHost Hotels & Resorts, Inc. (HST) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report |
Under pressure, plane industry vows cleaner flight _ someday
LE BOURGET, France (AP) — Battery-powered planes, solar planes, hydrogen planes — jet makers are working on myriad ways to make flying less damaging to the planet. Yet clean flying on a mass scale remains decades away. That's despite growing pressure from regulators and from a blossoming environmental movement to shun air travel altogether . The problem, argue aviation powerhouses gathered this week at the Paris Air Show , is that growing world populations and economies mean that the number of planes in the sky could double in the next 20 years. And today's clean-aviation technologies aren't ready to keep up. Here are some options already out there, and what's on the horizon. ___ ELECTRIFIED FLIGHT Carmakers figured out how to go electric, so why can't we do it in the air, too? Weight, altitude and storage, primarily. A mid-sized passenger plane weighs 100 times as much as a mid-sized car, and there is no battery system currently strong enough to lift a machine that size off the ground and keep it there. So the dozens of companies working on electric planes — including Boeing and Airbus — are starting small. Israeli company Eviation unveiled its 9-seat, all-electric plane named Alice at the air show, and won its first customer, U.S.-based Cape Air. It hopes to get the plane certified and in service by 2022. With a sleek nose, futuristic aura and 3.8 metric tons of batteries built into the frame, the plane can theoretically fly up to 540 nautical miles (1,046 kilometers), or about the equivalent of a Washington-Chicago flight. But it travels at less than half the speed of fuel-powered planes traveling such routes. Urban air taxis may be the first widespread use of electric aviation. Uber wants to start flying them by 2023 around Houston and Los Angeles, but needs to overcome technology and certification challenges first. Safety is paramount, and batteries notably heat up. The CEO of the company that makes Alice's electric motors, Roei Ganzarski of magniX, notes that jet fuel too "is very combustible. But just like there are safety precautions on how to store fuel and use fuel on aircrafts, there will be safety precautions on how to use and store batteries on an aircraft. And so that too will be certified and tested way before it flies with passengers." Story continues ___ HYBRID OPTIONS Until someone solves the battery weight problem, most of the industry is betting for now on some middle-ground solution instead, combining electric power and traditional jet fuel. Analysts say some 200 hybrid projects are under development. Some use electric technology for takeoff and standard fuel for cruising. United Technologies announced this week that it's aiming to have a "city hopper" regional passenger hybrid jet within three years that would save 30% of fuel that way. That's also the idea behind Voltaero, started by a former Airbus technology chief, Jean Botti. Botti wants to see it enter in service by 2021 or 2022, and says they've had interest from operators in Scotland, Norway and Switzerland for regional jets. "Pure electric airplanes can be nice for training pilots, a nice little toy I can play with. But when it comes time for commercial and you want to have some range, hybrid is the solution," he told The Associated Press. Manufacturers are also looking at recycling fuels or mixing them — adding synthetic fuel or renewable biofuel to kerosene to reduce its carbon footprint — or using hydrogen, a far-off but increasingly talked-about option. ___ PAYING TO POLLUTE The industry is also looking for financial ways to ward off regulators and retain environmentally conscious passengers. A U.N.-driven system called CORSIA will allow airlines to buy credits to compensate for, or "offset," their emissions. But critics say CORSIA — or Carbon Offsetting and Reduction Scheme for International Aviation — isn't ambitious or punitive enough. Germany's Lufthansa is among the airlines that let customers offset their flights by calculating how much damage they are doing to the environment and paying a voluntary tax. Lufthansa works through Switzerland-based MyClimate to calculate how much passengers should pay. But climate-savvy travelers note that Lufthansa charges less than MyClimate itself calculates, because it ignores an effect called "radiative forcing" that experts say doubles the climate impact of airline emissions at high altitude. ___ REALITY CHECK While the aviation industry is doing more than ever to lower emissions, at times it seems overwhelmed by the task, or unwilling to dramatically rethink the business. Even if Europeans shun planes for cleaner high-speed trains, most U.S. travelers don't have that option, Asia's growing middle class will increasingly take to the skies, and low-cost airlines are making air travel ever more accessible. "It's the grand challenge of our generation. I don't think we have the solution," said Paul Eremenko of United Technologies. The airline industry has committed to halving greenhouse gas emissions by 2050 compared with 2005 levels. That's far short of the target increasingly set by governments and backed by scientists to almost eliminate emissions by 2050. Boeing's Chief Technology Officer Greg Hyslop says the industry's own targets are a "very hard problem." "It's going to be an all of the above approach," he said. "Because we don't know how we're going to solve that exactly." ___ Frank Jordans in Berlin and Milos Krivokapic in Le Bourget, France, contributed to this report. |
Top Ranked Growth Stocks to Buy for June 20th
Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, June 20th:
Westlake Chemical Partners LP(WLKP): This operator of ethylene production facilities and related assets, which carries a Zacks Rank #1 (Strong Buy), has witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.4% over the last 60 days.
Westlake Chemical Partners LP Price and Consensus
Westlake Chemical Partners LP price-consensus-chart | Westlake Chemical Partners LP Quote
Westlake Chemical has a PEG ratio 0.71, compared with 1.11 for the industry. The company possesses a Growth Score of B.
Westlake Chemical Partners LP PEG Ratio (TTM)
Westlake Chemical Partners LP peg-ratio-ttm | Westlake Chemical Partners LP Quote
First Business Financial Services, Inc.(FBIZ): This bank holding company for First Business Bank, which carries a Zacks Rank #2 (Buy), has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.7% over the last 60 days.
First Business Financial Services, Inc. Price and Consensus
First Business Financial Services, Inc. price-consensus-chart | First Business Financial Services, Inc. Quote
First Business has a PEG ratio 1.29, compared with 1.34 for the industry. The company possesses a Growth Score of B.
First Business Financial Services, Inc. PEG Ratio (TTM)
First Business Financial Services, Inc. peg-ratio-ttm | First Business Financial Services, Inc. Quote
Oasis Midstream Partners LP(OMP): This provider of crude oil, natural gas and water-related midstream services, which carries a Zacks Rank #1 (Strong Buy), has witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.9% over the last 60 days.
Oasis Midstream Partners LP Price and Consensus
Oasis Midstream Partners LP price-consensus-chart | Oasis Midstream Partners LP Quote
Oasis has a PEG ratio 0.54, compared with 2.80 for the industry. The company possesses a Growth Score of A.
Oasis Midstream Partners LP PEG Ratio (TTM)
Oasis Midstream Partners LP peg-ratio-ttm | Oasis Midstream Partners LP Quote
See the full list of top ranked stocks here
Learn more about theGrowth score and how it is calculated here.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportWestlake Chemical Partners LP (WLKP) : Free Stock Analysis ReportOasis Midstream Partners LP (OMP) : Free Stock Analysis ReportFirst Business Financial Services, Inc. (FBIZ) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Slack's unique way of going public may be a look into the future: NYSE COO
Slack’s direct listing route on the New York Stock Exchange Thursday may become all the rage among well-capitalized tech unicorns that don’t want to deal with big, fee-seeking investment banks.
“It’s not for everybody, and it’s not going to displace the current IPO. But it’s for companies that fit a specific profile, meaning they don’t need to necessarily raise capital but they want the other benefits of being a publicly traded company,” New York Stock Exchange Chief Operating Officer John Tuttle explained in an interview Yahoo Finance’sThe First Trade. “So, this is a new option for them.”
A direct listing allows a company to go public sans underwriters. Rather, shares held by insiders are sold directly to new investors that want to get into the company. Using this process, companies are able to cut out the costs associated with a normal IPO and sidestep (usually) massive swings in their stocks on the first day of trading.
Slack is the latest buzzy tech player to go the direct listing route, following in the footsteps of Spotify (SPOT) in 2018. The networking upstart will list today on the New York Stock Exchange under the ticker symbol “WORK.” To Tuttle’s point, Slack will enter its public life with more than $800 million in cash (thanks to several funding rounds) despite having never been profitable.
With that cash war chest and a CEO like Stewart Butterfield who tends to seek the limelight, it’s not a shocker Slack is doing a direct listing.
“They are independent thinkers [Slack and Spotify management]. They don’t necessarily want to take the path that everybody has taken. They are doing what’s best for their company, customers and shareholders — and that’s why they are taking this approach today,” Tuttle added.
Brian Sozzi is an editor-at-large and co-host of ‘The First Trade’ at Yahoo Finance. Follow Brian Sozzi him on Twitter@BrianSozzi
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Kroger's Latest Earnings Don't Change Weak Operating Story
Kroger(NYSE: KR)investors weren't expecting great news from the retailer's first-quarter earnings report. Its fiscal 2018 results were underwhelming, after all, and showed no signs of an impending market-share rebound.
Its latest report (out Thursday) extended those disappointing trends into a new fiscal year that, at best, is on track to be another transition period for the supermarket chain's business.
Here's a look at how the Q1 results stacked up against the prior year:
[{"Metric": "Revenue", "Q1 2018": "$37.7 billion", "Q1 2019": "$37.3 billion", "Change (YOY)": "(1%)"}, {"Metric": "Net income", "Q1 2018": "$2 billion", "Q1 2019": "$772 million", "Change (YOY)": "(62%)"}, {"Metric": "Earnings per share", "Q1 2018": "$2.37", "Q1 2019": "$0.95", "Change (YOY)": "(60%)"}]
Data source: Kroger's financial filings. YOY = year over year.
Kroger's sales only inched higher, which left it trailing major retailing peers likeWalmart(NYSE: WMT)even as its spending initiatives kept a lid on earnings growth. Profits fell modestly after accounting for the sale of its convenience store business in 2018.
Image source: Getty Images.
Highlights of the quarter include:
• Sales rose 1.5% after adjusting for the sale of its convenience store segment. Adding in Kroger's alternative revenue streams, that figure landed at around 2%. Walmart, in contrast, recently posted its fourth straight quarter of over 3% comparable-store sales gains.
• Gross profit margin held steady at 22% of sales, indicating modest success at passing along higher prices.
• Operating profit declined to $957 million after adjusting for one-time events, compared to $1.02 billion a year ago. This result stacked up poorly against Walmart andTarget(NYSE: TGT), which recently reportedrobust bottom-line profitability growth.
• Kroger made progress on its transformation initiatives, including by expanding home delivery and pickup offerings to nearly all of its customer base.
Executives expressed confidence that the company's rebound plan, which management calls "Restock Kroger," is on track. "We are building momentum in the second year of Restock Kroger," CEO Rodney McMullen stated in a press release, "which is off to a solid start."
"It all starts with our customer obsession, which is why Kroger is assembling a platform to deliver anything, anytime, anywhere," McMullen said. Management highlighted improving operating profit results and healthy free cash flow as two of the most direct payoffs from the turnaround strategy to date.
McMullen and his team confirmed their full-year outlook and still see comps rising by about 2% as profits are pressured by investments in areas like pricing, store remodels, and the online selling infrastructure. That steady and conservative outlook contrasts with what peers have said about the industry recently. Walmart predicts comps gains of around 3% this year, with robust growth in its grocery segment. Target, meanwhile, claimed that it will generate strong market-share gains across every major selling category this year after it began 2019 with a 5% comps spike.
Kroger's prediction implies modest market-share losses in the context of these reports and the significant customer-traffic growth that most of the industry is seeing today. Investors are looking forward to the retailer's capital spending initiatives boosting results, just as they have for peers in recent years. Yet there's scant evidence to date that Kroger can close the widening gap with its rivals, which have better managed the shift toward a multichannel selling environment over the past several quarters.
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Oil Jumps as Iran Hits U.S. Drone; ‘Very Big’ but ‘Stupid’ Mistake, Says Trump
By Barani Krishnan
Investing.com – Iran’s downing of a U.S. drone has given oil prices their biggest boost for the year, and President Donald Trump’s tweet that Tehran made “a very big” but “stupid” mistake leaves crude traders unsure on how the White House will respond.
New York-traded West Texas Intermediate crude settled up $2.89, or 5.4%, at $56.65 a barrel. That was WTI’s biggest one-day gain since the year. The U.S. crude benchmark had rallied as much 6.3% earlier to a session peak of $57.37.
London-traded Brent crude, the benchmark for oil outside of the U.S., was up $2.80, or 4.5%, at $64.62 per barrel by 2:50 PM ET (18:50 GMT), The session peak was $64.80.
Tehran’s Islamic Revolutionary Guard Corps said Thursday the drone was shot down near the Kouhmobarak district north of the Strait of Hormuz because it was spying on Iran. The U.S. has said the aircraft, which the Pentagon identified as a RQ-4A Global Hawk surveillance drone, was in international airspace when targeted and destroyed by a surface-to-air missile.
In a separate development, Riyadh’s Arab News service reported that Saudi air defense forces shot down a “hostile drone” launched by Yemen’s Iran-backed Houthi militia headed towards Jazan in southwest Saudi Arabia.
The shallow, narrow strait is one of the world’s most important passageways for oil shipments and Iran, facing U.S. sanctions on its oil exports, has hinted in the past that it could disrupt the channel. The strait's width ranges from 21 nautical miles to 60 nautical miles, but its two shipping lanes are far smaller, two miles wide each and separated by a two-mile-wide buffer.
Nearly a day after the shooting down of the U.S. drone, the White House had yet to say how it would respond. Trump’s initial reaction on Twitter was cryptic but ominous: “Iran made a very big mistake!” the president tweeted.
But he later seemed to backtrack from that stance, saying it was likely the action of a “stupid” individual Iranian general who made a “foolish” unintentional mistake.
“This country will not stand for it,” the president told reporters after a Canadian Prime Minister Justin Trudeau at the White House, seemingly backing away from a military showdown with Tehran.
“You’ll soon find out,” Trump said, when asked the White House would respond.
“This is a new wrinkle, a new fly in the ointment,” he added, providing a colorful quote that did not, however, give an insight into his thoughts or strategy.
While Trump has been the architect of much of the tensions with Iran, he has also been surprisingly restrained lately in his response to its taunts.
Some analysts suspect the president was doing his best not to add to the escalation of geopolitical tensions that could drive oil prices – as well as prices of gasoline at U.S. pumps – higher as he embarks on his bid for reelection in 2020. High gasoline prices have historically have a negative impact on incumbent U.S. presidents during election year.
“Trump’s measured response in recent weeks to much of the Iranian overtures is telling that he’s trying to avoid further stoking the fires of an oil rally,” said John Kilduff, partner at New York energy hedge fund Again Capital.
The drone downing comes on the heels of last week’sattacks on two tankersin the Gulf of Oman and last month’s sabotage of more vessels and oil infrastructure belonging to Saudi Arabia and the UAE which have the U.S. has also blamed on Tehran. These aside, there have also been rocket attacks on U.S.-linked facilities in Iraq by suspected Iranian proxies that have stoked the fires of potential military showdown between the Islamic Republic and Washington.
U.S. officials say these incidents are evidence that Tehran is an aggressive and terrorist power that must be confronted by the international community.
Iran also pledged this week to begin enriching uranium again, raising fears that it was seeking nuclear weapons after Trump pulled the U.S. out an international nuclear accord with Tehran initiated by predecessor Barack Obama in 2015 and imposed sanctions on the Islamic Republic.
Oil prices have turned volatile since hitting 2019 highs of $66.60 for WTI and $75.60 for Brent in April. OPEC production cuts and the combination U.S. sanctions on Iranian and Venezuelan oil exports initially gave the market a gain of more than 40% on the year. But crude slipped into a bear market last month after falling as much as 20% from those April peaks on surging U.S. crude production and stockpiles and fears of a global recession from the U.S.-China trade war.
The average retail price of regular gasoline was $2.669 a gallon Thursday, down slightly from Wednesday, according to the American Automobile Association'sDaily Fuel Gauge report. While up 57.4% for the year, the average has fallen for 20 straight days. The average peaked at $2.895 on May 3, up nearly 71% for 2019.
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Canopy Growth (CGC): The Emperor Isn’t Wearing Any Clothes
By Gary Bourgeault
I think the gushing over Canopy Growth (CGC) may be gradually coming to an end, as the company attempts to position itself as an international and medical cannabis player, when in fact it’s heavily exposed to recreational pot, the weakest link under the cannabis umbrella.
Much of the positive sentiment toward the company is it did much of what the market expected of it, including receiving a big cash infusion and taking a dubious stake in Acreage Holdings, which will cost the company a hefty $3.4 billion if the U.S. ever legalizes recreational pot at the federal level.
The company is operating in a very traditional manner, which in the short term is of great benefit, and why it temporarily is the largest cannabis company by market cap. But as the domestic cannabis market begins to take shape and supply chain issues are resolved, it’s becoming apparent the company is going to struggle to keep up with its key competitor Aurora Cannabis, which for some time has reduced it long-term exposure to recreational cannabis, even though it has cost it short term sales.
Now that it’s obvious Aurora Cannabis has a superior business model, Canopy Growth is pulling out all stops to give the impression it’s matching Aurora in international and medical cannabis growth, even though it’s far behind it in both.
That’s going to be a problem when in the not-too-distant future recreational sales in Canada start to push up against a ceiling.
International markets and medical cannabis
Knowing the market is starting to look for the long-term growth associated with international cannabis markets and medical cannabis revenue, Canopy Growth provided an update on its international operations recently.
One of the things that looks impressive with a cursory glance is the declaration Canopy, after a string of deals, was now licensed to produce for over 35 million square feet. That includes properties across Africa, Europe and South America.
What’s troubling is when you read the fine print. For example, it states things like “only a portion of the cultivation area is in use,” “patient registrations have increased tenfold over the last year to more than 1,300 today,” and “Spectrum Therapeutics to its knowledge now owns one of the largest legal outdoor CBD cultivation sites on the continent of Africa, some of which is currently operational.”
It goes on in other sections of the press release to talk about integration of some of its units and in the process of developing plans to build other facilities.
The point is this is all presented in a way that gives the impression of rapid growth, and it is actually reflective of a lot of activity that has very little in the way of revenue or growth potential in the near term.
I would be okay with that, but even when looking at it all from a long-term perspective, I’m not convinced this will necessarily result in meaningful international growth and improved product mix for Canopy Growth.
My view is it’s just starting to learn about the international and medical cannabis markets and is struggling to catch up with market leader Aurora Cannabis, which I believe over the next two to three quarters is going to surpass the performance of Canopy.
Consequently, its heavy exposure to recreational cannabis could start to hurt the company in a couple of quarters.
Recreational pot
As of the last quarter, recreational pot accounted for approximately 75 percent of Canopy’s sales. This is a strength and a weakness for the company. In the short term it’s a strength, as recreational pot sales are the major revenue driver for the overall cannabis sector at this time. This is one of the reasons Canopy has the appearance of being a market leader.
The weakness of being over exposed to recreational pot is it has long-term limitations because of the large amount of supply coming in the near future, and the eventual ceiling of demand that shouldn’t take long to discover in Canada.
The problem that must be solved is where sales growth will come from once it hits the Canadian adult-usage ceiling.
Again, I see this as a major reason for the fanfare surrounding the Acreage Holdings announcement. That isn’t to say it may not have value in the future if the deal actually is closed because of legalization in the U.S.
I am saying that it isn’t going to have any impact on the performance of Canopy Growth, other than giving the illusion it is aggressively advancing its long-term growth outlook, when in reality this is nothing more than a possible revenue stream.
On the other hand, if legalization were to come at all, and quicker than I think it will at this time, it would be a huge catalyst for Canopy on the recreational pot side of the market.
But as I said, I believe that future is farther off than most in the market think, if it ever comes.
Since federal legalization is probably far off, as the market absorbs that fact after a prolonged period of nothing happening, it will start to penalize Canopy Growth in a big way as it struggles to find other revenue streams outside of recreational pot.
Conclusion
I think Canopy Growth might be okay for a couple of quarters, depending on how its recreational sales in Canada do, but further out, it’s readily apparent it’s going to come under more pressure as Canadian demand for recreational pot is met.
This is why it’s scrambling to give the impression it has all sorts of potential for international and medical pot growth, and it appears it has done little more than entered into a bunch of partnerships that may or may not pan out.
A lot of Canopy bulls will continue to point out the cash infusion it received from Constellation Brands and its deal to acquire Acreage Holdings at some future date, along with its production capacity of about 500,000 kilograms a year, as reasons to continue to believe in the company.
But I haven’t seen the billions Canopy has had at its disposal being leveraged in ways that would propel it to a surge in sustainable growth. It really isn’t doing anything different than most of its competitors, and I think, it is attempting to copy Aurora Cannabis in what it’s doing in order to keep the wide differentiations between the two companies from being visible to investors.
Looking ahead, it’s not a certainty, but it’s possible Canopy Growth could enjoy a couple of decent quarters are rising recreational pot sales in Canada. It’s not a guarantee, but it is very probable.
After that I think the glaring weaknesses in Canopy’s business model are going to show, especially in light of Aurora Cannabis ramping up production at a much quicker and larger rate.
It is far ahead of Canopy in international exposure, and doesn’t have near the percentage of medical revenue Aurora has. I think that is going to stand out the next several quarters, and Canopy, if it can’t find real revenue streams, and not just promotional announcements with little in the way of numbers and potential, could start to get hammered over the next year or so.
I don’t see Canopy as a bad company, but I do see it has one that has positioned itself as a recreational cannabis producer, and even though it may retain its leadership as the most valuable cannabis company as measured by market cap, I see it rapidly eroding if it doesn’t get more of a sense of urgency in real execution and efficiencies with the properties it has, and the agreements it has entered into.
Potential is one thing, performance is another. Canopy Growth has a lot to prove outside of its recreational cannabis sales. The time is now to do so.
To read more on the nitty gritty of what’s going on in the rising cannabis industry,click here.
Disclosure:The author is Long Aurora stock
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• Avoid Canopy Growth Stock Like the Plague; Here’s Why
• Analyst Sees Canopy Growth (CGC) Stock as a Winning Horse
• Cracks Are Forming in Canopy Growth Stock
• A Sign of Trouble Ahead for Canopy Growth (CGC) Stock
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Our Take On Zargon Oil & Gas Ltd.'s (TSE:ZAR) CEO Salary
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Craig Hansen has been the CEO of Zargon Oil & Gas Ltd. (TSE:ZAR) since 1993. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Zargon Oil & Gas
According to our data, Zargon Oil & Gas Ltd. has a market capitalization of CA$8.4m, and pays its CEO total annual compensation worth CA$282k. (This is based on the year to December 2018). That's actually a decrease on the year before. While we always look at total compensation first, we note that the salary component is less, at CA$245k. We looked at a group of companies with market capitalizations under CA$267m, and the median CEO total compensation was CA$151k.
As you can see, Craig Hansen is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Zargon Oil & Gas Ltd. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Zargon Oil & Gas has changed over time.
On average over the last three years, Zargon Oil & Gas Ltd. has grown earnings per share (EPS) by 84% each year (using a line of best fit). In the last year, its revenue is down -14%.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assessthis data-rich visualizationof earnings, revenue and cash flow.
With a three year total loss of 96%, Zargon Oil & Gas Ltd. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared total CEO remuneration at Zargon Oil & Gas Ltd. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. Whatever your view on compensation, you might want tocheck if insiders are buying or selling Zargon Oil & Gas shares (free trial).
Important note:Zargon Oil & Gas 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. |
Keep calm and buy more avocados: Walmart-Cornershop deal falls
SANTIAGO (Reuters) - Walmart and delivery app Cornershop have ditched plans to link up after Mexican anti-trust officials blocked the deal earlier this month, Cornershop co-founder Oskar Hjertonsson said on Twitter.
Walmart had struck a deal to buy the popular app for $225 million in a bid to boost its e-commerce ambitions in Mexico, one of the retailer's priority markets, and better compete with Amazon.com online.
Cornershop's Hjertonsson confirmed late on Wednesday that the deal was off.
"We respect their decision, and there's no turning back," he said on Twitter, advising his followers to "Keep calm and order even more avocados."
Walmart could not be immediately reached for comment.
Reuters reported exclusively last week that Mexican officials blocked Walmart Inc's move to purchase Cornershop because it could not guarantee a level playing field for rival retailers, whose customers use the app to order groceries and other goods.
Cornershop operates in Mexico and Chile, promoting the app as providing delivery of "groceries to your front door in one hour" from retailers including Costco Wholesale Corp, Chedraui and Walmart. It charges retail chains a commission for its services.
The deal would have put Walmart in the unusual position of owning an online platform selling its own merchandise alongside goods sold by rivals, with potential access to data about orders placed with competitors.
That raised a red flag for the regulator in Mexico, where Walmart's Walmex unit is already a dominant bricks-and-mortar retailer. Walmex operates 2,459 stores in Mexico, and is the country's largest supermarket chain by far.
(Reporting by Dave Sherwood; Editing by Chizu Nomiyama) |
Trump faces new pressure to respond after U.S. accuses Iran of unprovoked attack
WASHINGTON President Trump on Thursday said he doesnt believe Iran meant to shoot down a U.S. drone and that it was probably a mistake. It was a general or somebody who made a mistake in shooting that drone down, President Trump said from the Oval Office, appearing alongside Canadian Prime Minister Justin Trudeau. Irans latest shootdown of a U.S. military drone appears to fit exactly the scenario that a senior U.S. general warned earlier this week would trigger an American military response, dragging the United States into a military conflict the Trump administration has said it does not want. Yahoo News photo illustration; photos: AP, Getty Images/Shutterstock Weve been very clear in our message that if they directly engage U.S. forces, or they directly engage U.S interests or citizens in the region, that we will respond, Air Force Gen. Paul Selva, vice chairman of the Joint Chiefs of Staff, told reporters Tuesday, before the drone shootdown. Iran shot down the U.S. Navy RQ-4A Global Hawk drone early Thursday morning local time over the Strait of Hormuz, according to a statement from Navy Capt. Bill Urban, a spokesman for U.S. Central Command, which is responsible for U.S. military operations in the Middle East. Iranian reports that the aircraft was over Iran are false, Urban said. This was an unprovoked attack on a U.S. surveillance asset in international airspace. An RQ-4 Global Hawk unmanned aircraft. (Photo: U.S. Air Force/Bobbi Zapka/Handout/Reuters) Urbans use of the word asset echoed Selvas comments Tuesday. If the Iranians come after U.S. citizens, U.S. assets or U.S military, we reserve the right to respond with a military action, Selva said. And they need to know that. But Trump on Thursday appeared to downplay the importance of the incident, which sparked fears of a possible new military conflict in the Middle East. We didn't have a man or woman in the drone, Trump said. It would have made a big, big difference." As tensions have mounted in the Gulf, Trump and senior members of his administration have insisted they dont want to go to war with Iran, even as they have ramped up the U.S. military presence in the region. Story continues In his splashy campaign kickoff on Tuesday night, Trump returned to an idea that was a key part of his last election bid, expressing opposition to endless wars in the Middle East and suggesting he would be the president to bring them to an end. However, as he stumps with an antiwar message, tensions have steadily grown between the United States and Iran. The Trump administration has withdrawn from the Iran nuclear deal, designated Irans Islamic Revolutionary Guard Corps a terrorist organization and deployed more than 1,000 additional troops to the region, while blaming Iran for a series of attacks on commercial ships. National security adviser John Bolton, Secretary of State Mike Pompeo (Photos: Stephanie Keith/Getty Images, Alex Brandon/AP) The escalation is occurring during a time of chaos in the administrations national security leadership. Acting Secretary of Defense Patrick Shanahan, who was Trumps pick to permanently lead the Pentagon, this week announced he plans to resign, citing his desire to protect his family from a public airing of the details of his messy divorce, which involved accusations of domestic violence. Meanwhile, two of the administrations more hawkish members, Secretary of State Mike Pompeo and national security adviser John Bolton, have publicly warned Iran not to provoke the United States. Nonetheless, the White House and other officials maintain that Trumps position on Iran is clear and that his vision is guiding the posture toward Tehran. The presidents Iran strategy is to use maximum economic pressure and stop its malign activities, said a senior Trump administration official before the latest shootdown. America is not seeking military conflict with Iran, but in an effort to deter credible Iranian threats, we have made clear that the U.S. has the capability and willingness to defend U.S. forces and interests in the region. The president is reluctant to fight but willing to do so if necessary, agreed a former Trump administration official. The president doesnt want to go to war, but he will use force to defend American interests, the former official explained. We do not seek conflict with Iran and want to resolve differences through negotiation, wrote Pentagon spokesperson Navy Cmdr. Rebecca Rebarich in an email Wednesday to Yahoo News. This image, taken from a U.S. Navy helicopter, shows what the Navy says are members of the Islamic Revolutionary Guard Corps Navy removing an unexploded mine from the ship Kokuka Courageous. (Photo: U.S. Department of Defense via AP) While Trumps position on Iran is nuanced, there are more aggressive influential voices in his administration. Press reports have suggested that in the absence of a permanent secretary of defense, Bolton a longtime hawk on Iran is wielding an outsize influence over U.S. policy toward that country. And without contradicting the president, recent comments by Bolton and Pompeo have taken a harsher tone toward Iran than those of Trump, who described June 13 attacks against two tankers in the Gulf of Oman as very minor. As Trumps national security adviser, Bolton has the job of supporting Trumps agenda and leading coordination with government agencies to ensure they follow through on it. In an interview with the Washington Free Beacon, a right-wing website, Bolton said the notion that he was trying to push the president toward war with Iran was an idea promoted by the Iranian government and stenographers in the American media. Bolton and Pompeo both work closely with Trump and follow his lead, according to Fred Fleitz, who served as Boltons chief of staff on the National Security Council last year. Bolton is very particular about not getting ahead of the president, Fleitz said. The president makes the policy. Trump has appeared eager to avoid war. He even dispatched Japanese Prime Minister Shinzo Abe to Iran as an emissary, according to Pompeo, who mistakenly referred to the Japanese head of state as President Abe in remarks Tuesday. Japanese Prime Minister Shinzo Abe and Iranian President Hassan Rouhani after a joint press conference in Tehran on June 12. (Photo: Ebrahim Noroozi/AP) President Trump had sent President Abe to take a message of his to the leadership in Iran, Pompeo told reporters during a visit to MacDill Air Force Base in Tampa, which is home to U.S. Central Command and U.S. Special Operations Command. The Japanese Embassy in Washington did not respond to a request for comment. Japan is one of several Asian countries that together import most of the oil shipped from the Persian Gulf via the Strait of Hormuz, the narrow entryway to the Persian Gulf that Iran has threatened to shut down. In any case, Abes trip appears to underscore the administrations approach, whether acknowledged or not, in engaging allies. Speaking to reporters on Tuesday, Selva said there will be no U.S. military response to the tanker attacks without support from the international community. Itll require an international consensus before force is used, Selva said. In one sign of at least some tension between the more hawkish voices in the presidents orbit, one former Trump administration official expressed dismay when told about Selvas comments. According to the former Trump administration official, the reliance on international consensus does not fit with the America First agenda the president ran on in 2016. Gen. Paul Selva, vice chairman of the Joint Chiefs of Staff (Photo: Andrew Harrer/Bloomberg via Getty Images) Waiting for international consensus means giving the Europeans and Russia veto over U.S. policy toward Iran, the former official said. America First means were not getting into globalism, were not asking for permission to take action, the former official added. The White House did not respond to questions about Selvas remarks. Selva, however, said that if Iran or any of its proxy forces were to attack U.S. targets, military or otherwise, it would guarantee a U.S. military response. We want them to be very clear-eyed in whatever it is they are planning, so that they know we are also very clear-eyed in the necessity to respond, he said. The United States is more willing to back up its words with action than it might have been in its past dealings in the Middle East, according to Selva. It is a fair assessment that our history in the region is, we have threatened to respond but not responded, he said. That would be a miscalculation on the part of the Iranians to believe that thats going to persist. Selva also shed light on the messages he said U.S. interlocutors have sent to Tehran. Because the risks of miscalculation are real, Selva said, the United States has sent one signal to Iran via the Iraqi government, the Swiss government and through public statements: Hands off: Dont come after our forces. Even so, Trumps message on Thursday was not specific on what actions the United States might undertake in response. Let's just see what happens, he said. It's all going to work out. _____ Read more from Yahoo News: Trump wants his next press secretary to be a cable news 'street fighter' For politicians, the D.C. elite and even a presidential candidate, a Navy program has been an attractive fast-track path to military service Trump admits his Cabinet had 'some clinkers' Confronted with multiple errors in his new Trump book, a testy Michael Wolff says, 'You have to trust me' Why are people willing to risk death for a selfie? PHOTOS: Dancing under the stars |
Bronstein, Gewirtz & Grossman, LLC Announces Investigation of Eros International Plc (EROS)
NEW YORK, NY / ACCESSWIRE / June 20, 2019 /Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Eros International Plc ("Eros" or the "Company") (EROS). Such investors are encouraged to obtain additional information and assist the investigation by visiting the firm's site:www.bgandg.com/eros.
The investigation concerns whether Eros and certain of its officers and/or directors have violated federal securities laws.
On June 5, 2019, CARE Ratings, an Indian credit rating agency, reduced Eros's Indian subsidiary's credit rating to "Default," noting problems with "ongoing delays/default in debt servicing due to slowdown in collection from debtors." Following this news, Eros stock dropped $3.59 per share or over 49% to close at $3.71 on June 6, 2019.
The next day, Hindenburg Research published a report, "Eros International: On-The-Ground Research, Employee Interviews, and Private Company Documents Expose Egregious Accounting Irregularities," and alleged the reason for the downgrade saying, "a significant portion of Eros's receivables don't exist" and that Eros has documented "multiple undisclosed related-party transactions that appear designed to hide receivables."
If you are aware of any facts relating to this investigation, or purchased Erosshares,you can assist this investigation by visiting the firm's site:www.bgandg.com/eros. You can also contact Peretz Bronstein or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC: 212-697-6484.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact:
Bronstein, Gewirtz & Grossman, LLCPeretz Bronstein or Yael Hurwitz212-697-6484 |info@bgandg.com
SOURCE:Bronstein, Gewirtz & Grossman, LLC
View source version on accesswire.com:https://www.accesswire.com/549300/Bronstein-Gewirtz-Grossman-LLC-Announces-Investigation-of-Eros-International-Plc-EROS |
Stormy Thursday From The Plains To The Northeast
Another round of severe storms:Drivers will run into minor to moderate delays today and tonight due to areas of rain and thunderstorms from the Great Plains to the Mid-Atlantic. Severe storms producing large hail, damaging winds and isolated tornadoes will be scattered from eastern Alabama to the Pococnos in northeastern Pennsylvania, with a few severe storms spreading to Baltimore, New York City, Philadelphia and Washington, D.C. Severe storms will also pop up from Kansas City to Sioux City and from northwestern Kansas to Scottsbluff, Nebraska. A concentrated region of numerous severe storms could develop along I-85 from Anderson, South Carolina to the Raleigh-Durham area. Roads may be blocked off where localized flash flooding occurs.
Northwest:Several inches of snow will accumulate in the high elevations from eastern Oregon to central Idaho and southwestern Montana. Drivers will have to slow down going over some mountain passes on I-15, I-84 and I-90, and the National Weather service has issued aWinter Weather Advisoryfor part of the region.
Texas toast:The southern two-thirds of the Lone Star State will sizzle with intense heat today. Highs will reach the upper 90s to 105° from San Angelo to Dallas, southward to Brownsville where it'll feel like 110°-115°. Drivers: Pack extra ice and bottled water in your coolers, and be careful out there!
Image Sourced From Pixabay
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© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
U.S. Supreme Court upholds retroactive part of sex offender law
(y) By Lawrence Hurley WASHINGTON, June 20 (Reuters) - The U.S. Supreme Court on Thursday upheld the federal government's authority under a 2006 law to require thousands of sex offenders to register with authorities in the states where they live, as the justices ruled against a child rapist convicted in Maryland. In its 5-3 decision, the court rejected convicted sex offender Herman Gundy's argument that in passing the law, Congress handed too much power to the U.S. attorney general in violation of a principal of constitutional law called the nondelegation doctrine. This doctrine forbids Congress from assigning its legislative powers to the federal government's executive branch. Justice Brett Kavanaugh, who had not yet joined the court when the case was argued last October, did not participate in the decision. Gundy was convicted in 2005 in Maryland of raping an 11-year-old girl. After serving seven years in prison, Gundy was arrested in New York in 2012 for failing to register as a sex offender there. He challenged the indictment over the nondelegation question, but his claim was rejected by a district court judge and then in 2017 by the New York-based 2nd U.S. Circuit Court of Appeals. The law requires anyone convicted of a sex offense to register as a sex offender in any jurisdiction in which they live. But the law did not specify whether the requirement would apply to roughly 500,000 people already convicted of sex offenses when the law was passed. Instead, Congress said the attorney general - the top U.S. law enforcement official - should decide, which Gundy's lawyers argued violates the nondelegation doctrine. Since the law was enacted, different U.S. attorneys general under Republican and Democratic presidents have interpreted the law, with all saying it does apply retroactively in some fashion. Even before the law was passed, all 50 states had laws requiring registration. The federal law was designed to create a uniform system to be used nationwide that would prevent sex offenders from falling off the radar. As recently as May 2018, only 17 states have fully implemented the federal requirements, according to court papers. (Reporting by Lawrence Hurley and Andrew Chung; Editing by Will Dunham and Grant McCool) |
France Hitches a Ride on NASA’s Next Mission to the Moon
(Bloomberg) -- France has joined a NASA-led moon mission and Europe should do the same, the French space chief said.
The American and French space agencies, NASA and CNES, signed an accord during the Paris Air Show on June 19 that will allow France to take part in the mission dubbed “Artemis,” after the Greek goddess of hunting and the moon. The U.S.-designed project aims to send "the first woman and the next man" to the lunar surface as soon as 2024.
“There’s a certain enthusiasm around the mission," CNES President Jean-Yves Le Gall said in an interview in the French capital after talks between the heads of the world’s major space agencies. "Clearly Europe must be part of it.”
He said Europe will discuss the scope of its participation in Artemis in Seville, Spain, in November when member states and the European Space Agency, gather to talk about future space plans. The bloc could spend up to 600 million euros ($680) a year on the project, Le Gall said.
Europe has been mostly watching from the sidelines as the U.S. and China compete to achieve the first manned moon landing since 1972, weighing what role to play given its budget constraints and smaller appetite for gigantic space projects.
But French President Emmanuel Macron has been urging the bloc to enhance its space strategy, citing new threats by China and Russia and tensions with the U.S., the traditional guarantor of European security. He has vowed to reinforce France’s military space program amid the creeping militarization of the Earth’s outer atmosphere.
Le Gall said that one way to fund Artemis would be to divert the 150 million euros that France spends each year on the International Space Station -- a joint mission between Russia, Japan, the U.S., Europe, Canada and other nations that was launched in 1998 and is due to end around 2030.
A woman or another man landing on the moon in five years time isn’t certain, though.
NASA is still lobbying Congress and President Donald Trump to sign off on the project, which requires an extra $20 billion to $30 billion, on top of the agency’s normal budget, to get off the ground in 2024, Administrator Jim Bridenstine told CNN on June 14. Trump this month said on Twitter that NASA should focus on Mars.
Read more: Trump Chides NASA for Focus on Moon After Focusing NASA on Moon
China, meanwhile, hasn’t set a date for a manned moon mission. Beijing landed a robot on the far side of the moon in January and has said humans could follow, without giving a time frame.
Le Gall said there’s no plan for Europe to develop its own capacity to send humans to space and “for now” it will stick to being the “passenger.”
But space research itself brings benefits, he added, and has led to breakthroughs -- such as magnetic resonance imaging, or MRI, the Global Positioning System, or GPS, as well as the Teflon, the non-stick coating used in cooking pans.
“Space," Le Gall said, "is a showcase."
To contact the reporter on this story: Helene Fouquet in Paris at hfouquet1@bloomberg.net
To contact the editors responsible for this story: Ben Sills at bsills@bloomberg.net, Caroline Alexander
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
Sri Lanka cardinal says government hiding truth over Easter attacks
By Philip Pullella ROME (Reuters) - The head of the Catholic church in Sri Lanka on Thursday issued a scathing criticism of the government over the Easter attacks that killed more than 250 people, decrying a "total lack of interest" in determining why intelligence reports were ignored. Cardinal Malcolm Ranjith spoke of his frustrations just hours before he was due to meet Pope Francis and show the pontiff a video with graphic images of the April 21 attacks on three churches and four hotels. The attacks were claimed by Islamic State militants. "There was a serious lack of responsibility on the part of the government," Ranjith told reporters. "Now they have appointed all kinds of committees and commissions and there is bickering going on between the sides, you know, (about) who is responsible." President Maithripala Sirisena has criticised a parliamentary investigation, where some have accused him of mishandling national security. Ranjith, 71, said Indian intelligence services first notified Sri Lanka on April 4 of an impending attack and then three times more, including a phone call at 6:45 a.m. on the day of the blasts. "But nobody took serious note. This disaster could have been prevented because if I knew that there was an attack planned I would have closed the churches and told the people to go home," he said in answer to a question. A Parliamentary Select Committee led by allies of Sirisena’s rival Prime Minister Ranil Wickremesinghe is trying to identify possible lapses that allowed the attacks to happen. "Everybody is trying to pass the blame on to the others. And there is an attempt to hide (the facts)," the cardinal said. "Even his (the president's) own culpability in the matter might be in question, so they are trying to hide it. There is a total lack of interest in this matter on the part of the government and on the part of various agencies that are responsible for security," he said. Story continues The video he prepared for the pope, who visited Sri Lanka in 2015, shows the suicide bombers with backpacks approaching and then cuts away to scenes of mangled corpses, a blood-spattered statue of Jesus and mass burial sites. The cardinal spoke at the presentation of a report by Aid to the Church in Need, a Catholic charity that helps Christians in places where they are a minority. Sri Lanka is about 70 percent Buddhist, 13 percent Hindu, 10 percent Muslim and 7 percent Catholic. (Additional reporting by Ranga Sirilal in Colombo; Editing by Hugh Lawson) |
UK arm sales to Saudi Arabia: public split over human rights and trade
Protests over the disappearance of prominent Saudi journalist Jamal Khashoggi. Photo: AP Photo/Jacquelyn Martin Half of the British public think the UK should only trade with countries that have good human rights records, according to a new survey. British people were among the most likely in the world to want governments to prioritise human rights over economic benefits in international trade deals. But one in five Brits think the UK should trade with any country regardless of human rights abuses, the poll by Ipsos MORI and King’s College London found. The findings were released on Thursday just as a court ruled the UK government broke the law by allowing arms sales to Saudi Arabia. Britain ranks alongside #Sweden as top for prioritising #humanrights in international #trade ; 50% of Britons say we should only trade with countries that have a good human rights record, even if it harms our economy https://t.co/oH0v1ErEOr pic.twitter.com/pwc52hi4JZ — Ipsos MORI (@IpsosMORI) June 20, 2019 READ MORE: The UK government ‘does not know’ if all aid spending is value for money A court found that the British authorities should not have allowed weapon sales to a regime knowing they may have been used in the war in Yemen. The court’s findings mean the UK cannot grant any more new export licences to firms seeking to sell arms to the kingdom, which is Britain’s biggest buyer. The government was taken to court after activists argued there was a clear risk the weapons could be used to violate human rights in the brutal civil war. The conflict has been described by the United Nations as the word’s worst humanitarian crisis. The survey was carried out across 24 countries, with Britain and Sweden topping the list for respondents most keen to avoid trade with brutal regimes. Story continues While half of British voters wanted to trade only with countries with good human rights records, just 15% of Russians shared their views. A majority of Russians, 55%, said they should trade with any country if it benefited their economy, regardless of any human rights concerns. READ MORE: Could the UK still nationalise British Steel after its collapse? |
Tesla’s price target slashed, Waymo’s new deal, GM’s plea to regulators: Companies to watch
Here are the companies Yahoo Finance is watching today.
A big price cut forTesla(TSLA). Goldman Sachs has lowered its target for the stock to $158 a share. It was originally at $200. Analysts there see a "downward path" for Tesla's shares, and expect demand to slide.
Google's(GOOG) Waymo has two new partners as it develops self-driving cars, Nissan and Renault. The companies have struck a deal to work together on autonomous vehicles in France and Japan, and could expand it to other places. Waymo already has a partnership with Lyft and has been testing self-driving taxis in Phoenix.
General Motors(GM) is trying to prevent another recall of its Takata air bags. The automaker is asking federal regulators to exempt it from recalls that were required under a 2015 deal between Takata and the government. Twenty-four people have been killed and hundreds of others have been injured from the airbags worldwide.
Adam Sandler's “Murder Mystery” just had the biggest opening weekend ever for aNetflix(NFLX) movie, racking up more than 30 million views worldwide. This eclipses the previous record held by Sandra Bullock's “Bird Box.” Back in 2017, Netflix confirmed viewers had already watched half a billion hours of Sandler, leaving little doubt about the success of his four-film deal with the streaming platform. |
Why Shares of Carnival Are Sinking on Thursday
What happened Shares of Carnival (NYSE: CCL) (NYSE: CUK) fell more than 10% on Thursday morning after the cruise operator cut its full-year outlook because of what it called "macroeconomic headwinds," projecting rough waters in the quarters to come. So what Carnival on Thursday morning reported fiscal second-quarter adjusted earnings of $0.66 per share on revenue of $4.84 billion, topping analyst expectations for $0.61 per share in earnings on sales of $4.53 billion. The company said that capacity growth and improved onboard spending had led to revenue growth. Revenue per available berth increased by 5.6%, including currency fluctuations, but changes in fuel prices and currency exchange rates decreased earnings by $0.09 per share. A Carnival cruise ship coming into port in Australia. Carnival said that cumulative advance bookings for the remainder of the year are slightly ahead of the prior year's, and cumulative advance bookings for full-year 2020 are well ahead at prices that are in line with those of fiscal 2019. Still, Carnival lowered its outlook for full-year results. The company now expects full-year adjusted earnings of $4.25 to $4.35 per share, down from $4.35 to $4.55 per share and below the consensus $4.54 expectation. Company CEO Arnold Donald in a statement said the setback is due to global economic weakness and changes in the U.S. government's policy on travel to Cuba. "Recent booking trends have been impacted by ongoing geopolitical and macroeconomic headwinds affecting our Continental European brands," Donald said. "We continue to expect higher yields in our North America and Australia brands offset by lower yields in our Europe and Asia brands for the remainder of the year." Carnival had previously warned that sales momentum was fading , but had hoped capacity growth would offset any weakness in pricing. Now what The results caused William Blair analyst Sharon Zackfia to downgrade Carnival to market perform from outperform, with the analyst noting that Carnival's flattish yield expectations compare poorly to the mid-single-digit gains projected by rivals Royal Caribbean and Norwegian Cruise Line . Story continues It appears Carnival's higher-than-average exposure to Europe is a drag on the company for the foreseeable future. The shares could face resistance in trying to cruise forward until Carnival can show these geopolitical issues are behind it. 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 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool recommends Carnival. The Motley Fool has a disclosure policy . |
Did You Miss INTL FCStone's (NASDAQ:INTL) 83% Share Price Gain?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
INTL FCStone Inc.(NASDAQ:INTL) shareholders might be concerned after seeing the share price drop 12% in the last quarter. Looking further back, the stock has generated good profits over five years. After all, the share price is up a market-beating 83% in that time.
View our latest analysis for INTL FCStone
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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).
Over half a decade, INTL FCStone managed to grow its earnings per share at 37% a year. The EPS growth is more impressive than the yearly share price gain of 13% over the same period. Therefore, it seems the market has become relatively pessimistic about the company. The reasonably low P/E ratio of 8.42 also suggests market apprehension.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
Thisfreeinteractive report on INTL FCStone'searnings, revenue and cash flowis a great place to start, if you want to investigate the stock further.
INTL FCStone shareholders are down 32% for the year, but the market itself is up 5.0%. 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. Longer term investors wouldn't be so upset, since they would have made 13%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. Before spending more time on INTL FCStoneit might be wise to click here to see if insiders have been buying or selling shares.
If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Top Democrat Pelosi: U.S. has no appetite to go to war with Iran
WASHINGTON (Reuters) - U.S. House of Representatives Speaker Nancy Pelosi said on Thursday the United States has no appetite to go to war with Iran, after Tehran shot down a U.S. military surveillance drone in the Gulf region. Pelosi, the top Democrat in Congress, told reporters that 20 lawmakers will receive a briefing to learn more about the incident. "I think it's a dangerous situation," Pelosi said. "We have to be strong and strategic about how we protect our interests. We also cannot be reckless in what we do, so it will be interesting to see what they have to say. "I don't think the president wants to go to war. There's no appetite for going to war in our country." Iran on Thursday shot down a U.S. military drone it said was on a spy mission over its territory but Washington said the aircraft was targeted in international air space in "an unprovoked attack." Pelosi said tensions were high in the region and worried that "a miscalculation on either side could provoke something very bad." (The story refiled to fix spelling of 'interesting' in paragraph three.) (Reporting by Susan Cornwell; Writing by Doina Chiacu; Editing by David Alexander and Alistair Bell) |
Turkey sends second ship to drill near Cyprus, EU warns of action
DILOVASI, Turkey/BRUSSELS (Reuters) - Turkey launched a second drilling ship on Thursday which will conduct natural gas operations off the northeast coast of Cyprus for three months, a move which risks aggravating a conflict with Cyprus over jurisdiction rights for oil and gas exploration. Turkey and the internationally-recognised government of Cyprus have overlapping claims in that part of the Mediterranean, an area thought to be rich in natural gas. Energy Minister Fatih Donmez said at the launch of the vessel, Yavuz, it would operate in a borehole near Cyprus' Karpas Peninsula, and reach a depth of 3,300 metres (3,609 yards). Turkey already has a ship offshore Cyprus, and Cyprus last week issued arrest warrants for its crew. European Union leaders warned Turkey on Thursday to end its gas drilling in disputed waters or face action from the bloc, after Greece and Cyprus pressed other EU states to speak out. At an EU summit in Brussels, leaders issued a formal statement saying Turkey's drilling is "illegal" and that the bloc "stands ready to respond appropriately." "The European Council underlines the serious immediate negative impact that such illegal actions have across the range of EU-Turkey relations," leaders said, using the official title of their summit. "The European Council calls on Turkey to show restraint." The statement also threatened "targeted measures": EU code for possible travel bans and asset freezes of Turkish companies and individuals involved in the drilling. The dispute has escalated in the past month and also risks straining Ankara's relations with its western allies. Ankara, which does not have diplomatic relations with Cyprus, claims that certain areas in Cyprus's offshore maritime zone, known as an EEZ, fall under the jurisdiction of Turkey or of Turkish Cypriots, who have their own breakaway state in the north of the island recognised only by Turkey. Story continues Cyprus says that defining its EEZ is its sovereign right. Donmez said unilateral agreements made between Cyprus and the regional countries that attempted to "steal" the rights of Turkey and Turkish Cypriots had "no legal validity". "Turkey will continue its operations in its own continental shelf and in areas where the Turkish Republic of Northern Cyprus has licensed Turkiye Petrolleri without stopping," Donmez said, referring to Turkey's main oil exploration company. "We are warning actors from outside the region that are forming cooperations with Cyprus: Do not chase illusions that will yield no results," he said. The bloc will now ask its foreign service, the European External Action Service, to put forward options, the statement said. Cyprus has threatened to jeopardise the EU membership bids of North Macedonia and Albania if the bloc does not take action against Ankara. One senior EU official said that, aside from sanctions, one option was to end talks with Turkey over extending a customs union, which already allows tariff-free trade with the EU for industrial goods but not services or agriculture. Another option could be formally suspending Turkey's status as an official candidate to become a member of the European Union, although talks have been frozen for over a year. Cyprus was divided in 1974 after a Turkish invasion triggered by a brief Greek-inspired coup. Several peacemaking endeavours have failed and the discovery of offshore resources has increasingly complicated peace negotiations. (Reporting by Can Sezer and Ezgi Erkoyun in Dilovasi and Robin Emmott in Brussels; writing by Ali Kucukgocmen and Tuvan Gumrukcu; editing by Daren Butlers, Alexandra Hudson and Jonathan Oatis) |
UK's Domino's eyes Europe chief of Aussie Domino's as next CEO: Sky News
(This June story corrects throughout to say UK's Domino's to replace its CEO with Europe CEO of Australia's Domino's Pizza Enterprises)
(Reuters) - Domino's Pizza Group Plc is looking to replace Chief Executive Officer David Wild with Andrew Rennie, the head of the European business at Domino's Pizza Enterprises, Sky News reported on Thursday, sending Domino's Pizza Group shares as much as 12% higher.
Andrew Rennie, chief executive for Europe at Domino's Pizza Enterprises, which is a separate listed entity in Australia, has emerged as the frontrunner for the top job, the report said.
Shares of the company closed 10.5% higher at 278.1 pence and had its best day in over 3.5 years.
Domino's declined to comment on the report.
The company was already considering a succession plan to replace three senior board members, including Chairman Stephen Hemsley and CEO Wild, Britain's biggest pizza delivery firm's annual report showed in May.
The changes follow the Financial Reporting Council's revised corporate code that emphasizes the need for boards to refresh themselves, become diverse and plan properly for replacing top jobs.
The company's spokesperson had said in May that the Board has held internal discussions about succession planning for the chairman and CEO.
Rennie's tryst with Domino's began in 1994 after he purchased a franchise store which grew to 13. Rennie then merged his stores with Domino's in 2004.
He headed Domino's Pizza Enterprises' business in France and Belgium for four years and is credited with expanding the brand to 200 stores from 93, making it the largest pizza company in the country, according to the Australian business' website https://investors.dominos.com.au/andrew-rennie . Since 2013, Rennie has been the company's European business head.
(Reporting by Sangameswaran S in Bengaluru; Editing by Sriraj Kalluvila and Arun Koyyur) |
Kimco Realty Corporation (NYSE:KIM) Insiders Have Been Selling
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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 sellKimco Realty Corporation(NYSE:KIM), 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, 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. 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 Kimco Realty
Over the last year, we can see that the biggest insider sale was by the Executive VP & COO, David Jamieson, for US$301k worth of shares, at about US$18.33 per share. That means that even when the share price was below the current price of US$19.08, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 14.9% of David Jamieson's holding.
Over the last year we saw more insider selling of Kimco Realty shares, than buying. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Kimco Realty better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
Over the last three months, we've seen significant insider selling at Kimco Realty. Specifically, insiders ditched US$369k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Kimco Realty insiders own 4.4% of the company, currently worth about US$355m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
Insiders haven't bought Kimco Realty stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. It is good to see high insider ownership, but the insider selling leaves us cautious. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check thisfreereport showing analyst forecasts for its future.
But note:Kimco Realty may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
You Can Learn to Make Pasta From Massimo Bottura on MasterClass Now
Photo credit: MasterClass From Town & Country Like virtually every homecook in the world who's ever enjoyed a plate of delicious pasta, you've probably yearned for the secrets behind that perfectly toothsome strand, that flawlessly silky sauce that coats every morsel, that flawless folding technique that keeps tortellini shapely and show off-worthy. You've read the books, you've taken the classes, and you've got your al dente game down pat, but what if you could take your fare to the next level by learning to cook Italian food from the best chef in the world? No, thats not hyperbole; today the famed chef Massimo Bottura , owner and executive chef of two-time The World's 50 Best Restaurants number one restaurant, Osteria Francescana, debuts his first MasterClass , to help teach you to cook Italian like a pro. In addition to tips on how to develop your palette and the philosophy that drives his cooking, including his passion for eliminating food waste by using every tasty morsel in some surprising compliments and confections, the chef's class will offer a window into a three Michelin starred Italian kitchen with recipes like Tagliatelle with Ragu, his beloved Tortellini, and Pumpkin Risotto. On top of the pastas, the chef is also giving out the secrets behind his world-famous Emilia Burger and even a sweet treat in the form of "Better Than Panettone" Soufflé. For a sneak peek, here are some of the chef's secrets to spotting properly rolled pasta dough: "To me, cooking is an act of love," Bottura said in a release. "In my MasterClass, we will reimagine cooking. I’ll 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." Bottura's class is available right now along with lessons from other culinary greats like Alice Waters and Thomas Keller for $90 for one class, or $180 for a year long all-access pass. ('You Might Also Like',) 12 Weekend Getaway Spas For Every Type of Occasion What Your Favorite Champagne Brand Says About You Beauty Gurus Share Their Makeup Secrets for Older Women |
Introducing Kirkland Lake Gold (TSE:KL), A Stock That Climbed 100% In The Last Year
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The simplest way to invest in stocks is to buy exchange traded funds. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). For example, theKirkland Lake Gold Ltd.(TSE:KL) share price is up 100% in the last year, clearly besting than the market return of around -2.3% (not including dividends). So that should have shareholders smiling. Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.
View our latest analysis for Kirkland Lake Gold
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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.
Kirkland Lake Gold was able to grow EPS by 73% in the last twelve months. This EPS growth is significantly lower than the 100% increase in the share price. So it's fair to assume the market has a higher opinion of the business than it a year ago.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. Before buying or selling a stock, we always recommend a close examination ofhistoric growth trends, available here..
Kirkland Lake Gold boasts a total shareholder return of 100% for the last year(that includes the dividends). The more recent returns haven't been as impressive as the longer term returns, coming in at just 16%. It seems likely the market is waiting on fundamental developments with the business before pushing the share price higher (or lower). If you want to research this stock further, the data on insider buying is an obvious place to start. You canclick here to see who has been buying shares - and the price they paid.
There are plenty of other companies that have insiders buying up shares. You probably donotwant to miss thisfreelist of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on 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. |
Want to lower your phone bill to $15 a month? Check out Mint Mobile
Ah, phone plans. We know you can’t live without ‘em, but maybe you could live without paying ridiculously high monthly fees?
Despite what the carriers say, all network coverage is essentially the same in 2019. So, what are you really paying for? Hint: it isn’t the network — it’s the retail stores and overheadMint Mobilere-imagined the wireless shopping experience and made it easy and online-only, allowing them tocut out the overhead and pass on significant savings to you.
Wait, what’s Mint Mobile, you ask? Mint is a wireless service with wallet-friendly options that won’t cramp your swipe-happy lifestyle. When you sign up for a three-month plan, Mint Mobile hooks you up with a free SIM card and premium wireless service including 3GB 4G LTE data with unlimited calls and texts nationwide for just $15 a month.Read more...
More aboutSupported,Shopping List,Shopping Skimlinks,Mint Mobile, andCheap Phone Plans |
Christians want Good Omens, based on the book by Neil Gaiman and Terry Pratchett, to be cancelled but accidentally addressed their petition to Netflix instead of Amazon Prime.
Michael Sheen and David Tennant attend the World Premiere of new Amazon Original "Good Omens" (David M. Benett/Dave Benett/WireImage) Writer Neil Gaiman could barely contain his glee when Christians campaigning for the cancellation of his Good Omens show accidentally petitioned Netflix instead of Amazon Prime. The series which is based on the 1990 novel Good Omens: The Nice And Accurate Prophecies Of Agnes Nutter, Witch by Gaiman and Terry Pratchett - sees an angel (Michael Sheen) and a demon (David Tennant) joining forces to save the world. It has come under fire from the Christian Return To Order movement, which claims it is blasphemous and has compiled a 20,000-strong petition asking for it to be canned. Photo by: KGC-158/STAR MAX/IPx 2019 5/28/19 Neil Gaiman at the premiere 'Good Omens' in London, England. However, the group accidentally took up their complaint with the wrong streaming service. The petition reads: Tell Netflix: Cancel blasphemous Good Omens series. Gaiman clearly saw the funny side, tweeting a link to a post about the gaffe and writing: This is so beautiful... Promise me you won't tell them? This is so beautiful... Promise me you won't tell them? https://t.co/thYTOG7GBE Neil Gaiman (@neilhimself) June 19, 2019 I love that they are going to write to Netflix to try and get #GoodOmens cancelled, he added. Says it all really. Return To Order claims the programme presents devils and Satanists as normal and even good, where they merely have a different way of being, and mocks God's wisdom. It points to the fact that an angel and demon are good friends and that God is voiced by a woman. Read more: Tennant and Sheen team up to save world It concludes: In the end, this is a denial of Good and Evil: morality and natural law do not exist, just humanitarianism and an ultimately useless creed. This is another step to make Satanism appear normal, light and acceptable. We must show our rejection. Please sign our petition, telling Netflix that we will not stand silent as they destroy the barriers of horror we still have for evil. |
Game of Thrones Queen Natalie Dormer Joins Real Queen Elizabeth at Royal Ascot
Game of Thron es actress Natalie Dormer was back among the royals on Thursday — but a friendlier sort than those on the beloved HBO series. Dormer joined Queen Elizabeth and members of the royal family at the third day of Royal Ascot, known as “Ladies Day.” Dormer — who also starred in The Tudors , featuring some of the real-life royals’ ancestors — attended the annual event to hand out a trophy in the first race. The award came after the traditional carriage ride onto the course, led by the Queen, 93. Joining her were several members of her family, including Princess Eugenie , 29, who is also giving out a trophy but in the second race. Chris Jackson/Getty Natalie Dormer presents jockey Frankie Dettori with a cup in the first race at Royal Ascot on June 20. | James Veysey/Shutterstock In that contest, the Queen has a horse named Eightsome Reel competing. Natalie Dormer at Royal Ascot. | James Veysey/Shutterstock The five days of racing kicked off on Tuesday, when Prince William and Kate Middleton were among the family members enjoying the sport and socializing. Can’t get enough of PEOPLE’s Royals coverage? Sign up for our newsletter to get the latest updates on Kate Middleton, Meghan Markle and more! Yesterday, the Queen’s youngest son, Prince Edward. and his wife Sophie, Countess of Wessex celebrated their 20th wedding anniversary at the racecourse. The couple only live only a few miles away at the magnificent mansion, Bagshot Park. |
How to Roll Over Your 401(k) -- and Why You Should
Good for you if you're considering rolling over your 401(k) into a retirement account such as a Rollover IRA when leaving your job. It's a penalty-free strategy that can be a powerful boost to your retirement savings. Cashing out your 401(k) can result in an early withdrawal penalty -- and paltry retirement savings.
Here's a closer look at how you can roll over a 401(k) account, along with some persuasive reasons for doing so.
Image source: Getty Images.
A401(k) planis a retirement plan typically sponsored by an employer, permitting workers to sock away a portion of their earnings into atax-advantaged retirement account. The traditional form of the 401(k) works much like a traditional IRA: Your contributions within a given year reduce your taxable income for that year. In a simplified example, if you earn $75,000 and contribute $10,000, your earnings fall to $65,000, saving you tax dollars up front. (Your withdrawals will eventually be taxed, though.)
A newer form of 401(k) plans is theRoth 401(k), which shares some features ofRoth IRAs. For example, like a Roth IRA, you fund it with post-tax contributions. So if you earn $75,000 and contribute $10,000, your earnings remain at $75,000. While there's no up-front tax break, your withdrawals in retirement can be entirely tax-free.
401(k)s differ in a few meaningful ways from IRAs:
• Contribution limits:401(k)s have much higher contribution limits. The IRA contribution limit for 2019 is $6,000, plus another $1,000 for those 50 and older, while the 401(k) 2019 limit is a whopping $18,000, plus $6,000 for those 50 and up, totaling $24,000 for many people.
• Investment options:401(k)s typically offer a more limited menu of investment options for your contributions, such as perhaps a dozen assorted mutual funds. In an IRA opened at a major brokerage, you can invest in just about any stock or exchange-traded fund (ETF), and often any of hundreds of mutual funds, too.
• Matching funds:You're on your own with IRAs, but 401(k) plans tend to feature matching contributions from employers -- which is essentially free money. A typical employer match might be 50% of worker contributions up to 6% of pay, resulting in employers contributing a maximum of 3% of worker pay.
You may not have changed your job that often in your work life so far, but many people routinely do. The Bureau of Labor Statistics noted in 2015 that workers born between 1957 and 1965 held an average of 11.7 jobs between ages 18 and 48 -- changing jobs, on average, about every 2 1/2 years. Each time someone with a 401(k) changes a job, they need to decide what to do with their existing account -- and there are roughly 15 million 401(k) participants changing jobs each year, per the Employee Benefit Research Institute.
These folks have three main options when leaving a job that has sponsored a 401(k) account for them:
• Cash out the account
• Leave it in place, if that's allowed
• Roll over the account to a new one
A closer look at each of these options is coming up, but there's an important detail to be aware of as soon as possible: 60 days. That's how long you have to transfer those funds, once you withdraw them, if you want to roll over your account.
Also, know that you might even be able to do two or more of the above. For example, you might leave your account in place, and then, later, transfer just some of its value to an IRA.
For most people in most situations, the answer to the question above is no --don't cash out your 401(k). Many do -- about 1 in 3 people cashed out their 401(k)s before reaching age 59 1/2 (typically because of leaving a job), per data from Fidelity Investments -- but it's not a smart move, as it shortchanges your future.
Remember that a 401(k) account is not meant to be a short-term savings account, but a long-term vehicle to help fund your retirement. With many people not staying at jobs for very long, their 401(k) accounts will often have relatively little money in them, making it not seem worth rolling over. Even if you only have $20,000 in your account, if that sum can remain invested for another 25 years and grows by an average of 8% annually, it will end up worth almost $137,000. That can be very helpful in retirement. Indeed, if youwithdraw 4% per year in retirement, it will give you more than $5,000 per year, or around $450 per month.
Here's another incentive to not cash out: If you're withdrawing funds from your 401(k) before age 59 1/2, you'll have to fork over a 10% penalty, not to mention having to pay taxes on the withdrawal, too.
Some workers leaving a job with a 401(k) account may be allowed to leave their account in place. So you might move from you job at Company A to a job at Company B and keep a 401(k) account at Company A.
The main upside of this move is that it's very easy. It also lets you decide, in the future, to roll over the account into another one. But there are some downsides, too. You won't be an employee at the company any more, so you won't be receiving any more matching contributions, and you can't add any more money into the account on your own, either. Your investment options will remain limited to those offered by the plan. The plan may charge fees, which might be higher than the fees in your new employer's 401(k) or in an IRA. And perhaps most important, this strategy, if you do it repeatedly when leaving multiple jobs, can have your financial life getting progressively more complicated, with lots of retirement accounts to keep track of.
If you don't leave your account in place and you don't cash it out, you'll likely be rolling it over into a new account. That can take several forms, though. You might roll it over into a new employer's plan, a traditional IRA, or a Roth IRA. Here's a closer look at each of the three options above.
If you're moving to a job with a company that has a 401(k) plan of its own, you may be able to roll over your 401(k) account into an account in that plan. This is especially smart if the new 401(k) plan isa good 401(k) plan-- perhaps with particularly appealing investment options and/or low fees.
One upside is that you'll continue to enjoy tax-deferred growth in the account -- as you would if you rolled over your 401(k) into a traditional IRA. But unlike a traditional IRA that requires you to start taking required minimum distributions (RMDs) beginning at age 70 1/2, you can postpone starting to take them if you're still working.
You may also be able to take distributions penalty-free beginning at age 55, if you leave your job between the ages of 55 and 59 1/2. With IRAs, you face penalties for withdrawals before age 59 1/2. (This is allowed only for a 401(k) sponsored by the employer at the current job you're leaving, not for any old 401(k) account held at a former employer.) The 401(k) plan at your new employer might also permit loans to be taken from accounts, which may be handy on occasion -- though it's generallynot an advisable move.
This kind of consolidation can also help simplify your financial life, as you combine what might otherwise be two accounts into one. And here's one last upside: 401(k) accounts are also generally protected from any claims by creditors. That's not the case with IRAs.
A disadvantage of rolling over a 401(k) into a new employer's plan is that the money remains in a 401(k), which will offer far fewer investment choices than an IRA, through which you can invest in just about any stock, possibly hundreds or even thousands of mutual funds, and other securities. And many 401(k) plans charge more in fees than you'd face elsewhere.
One more consideration is that upon your death, the entire value of your 401(k) account might be paid to your beneficiary, possibly triggering a major tax headache. (If you have a surviving spouse, he or she can roll over the sum into an IRA without triggering taxes.) You'll likely have more options with an IRA, but if this is a concern, look into the rules governing the new 401(k) plan -- as plan rules can vary from company to company.
Perhaps the biggest caveat regarding a rollover from one 401(k) plan to another 401(k) plan (or an IRA) is if you're transferring any company stock that you received. If your 401(k) plan has some company stock in it, and especially if it has alotof company stock in it, take some time to read up on an "NUA strategy," which could save you thousands or tens of thousands of dollars -- or more.
If your new employer doesn't offer a 401(k) plan or it simply isn't a very appealing plan, consider rolling over your 401(k) into an IRA. Remember that there are two kinds of IRAs -- traditional and Roth -- with the former accepting pre-tax contributions and letting you defer taxation until withdrawals that typically occur in retirement and the latter accepting post-tax dollars and letting you eventually maketax-freewithdrawals. Each has its pros and cons.
Funds transferred into either a traditional or Roth IRA can be invested in a very wide range of stocks, ETFs, mutual funds, and other securities, and they will grow in a tax-advantaged way. If you've rolled over those assets into an IRA at a good brokerage that offers many handy services, such as financial advising or Wall Street research reports, you can take advantage of those, too.
Drawbacks for rolling over a 401(k) account into an IRA include the fact that IRAs don't let you borrow against them the way that 401(k)s do, and assets held in an IRA are generally not protected from creditors who may come calling -- unless you've filed for bankruptcy protection.
A potentially big drawback if you're rolling over a 401(k) to an IRA will materialize if you're transferring any company stock that you received. If you've received company stock from the employer you are leaving or have just left and it's in your 401(k) account, be sure to read up on an "NUA strategy" that could save you alotof money.
A last consideration when rolling over a 401(k) into an IRA is whether you should do so to a traditional or Roth IRA. With traditional IRAs, know that you'll have to start taking required minimum distributions once you turn 70 1/2. With Roth IRAs, you can leave the money in the account for as long as you live, if you want.
You can easily transfer assets from a Roth 401(k) into a Roth IRA, but if you're transferring from a traditional 401(k) into a Roth IRA, you'll be taxed on the value of the assets. That's because a traditional 401(k) will have been funded with pre-tax dollars, unlike Roth IRAs, which get funded with post-tax dollars in order to qualify for eventual tax-free withdrawals.
Now that you have an idea of how you want to proceed with your 401(k) rollover, you need to know exactlyhowto do it. Read on.
Image source: Getty Images.
Before taking this action, be sure to review your new employer's plan, and make sure it's agood 401(k) plan. Sites such as brightscope.com can help -- and can allow you to compare the new plan with the old one. Next, assuming you want to proceed, contact the 401(k) plan administrator at your new employer. You'll need an "address" for their plan, so that your current plan administrator can direct the funds to your account. A common format for this address might be something like "NewEmployerName 401(k) Plan FBO [for the benefit of] YourName." After that, the funds will either be sent directly to your new account or will be sent to you via a check that's made out to that account address. Both of these ways count as "direct" rollovers and are the easiest options.
A less simple way is the "indirect" rollover, which involves your former employer simply sending you a check for the contents of your 401(k) account, made out to you -- less 20% which is withheld for taxes, in case the transaction ends up being a cash-out of the account. Meanwhile, you have 60 days in which to complete your rollover, giving your new employer's 401(k) administrator that sum of money. If you don't follow the rules, you may end up facing a 10% early withdrawal penalty.
Once you're all set with your new and funded 401(k) account, be sure to have those assets invested effectively and to continue contributing to the account. Don't makecommon 401(k) mistakes, such as being too conservative, not aiming to increase your contributions over time, and not grabbing all available matching funds. Simply keeping much of your money in one or more low-feeindex fundsis a sound investment strategy.
A simple way to roll over your 401(k) account into an IRA is to do so through a brokerage. Take a little time to reviewgood brokeragesand to choose which one will serve you best. (If you already have one or more accounts with a particular brokerage and you're satisfied with it, you might just stick with that one.)
Here are some factors to consider when assessing brokerage contenders:
• Costs:Ideally, focus on brokerages that charge little per trade. Many good ones charge $10 or $7 or less per trade. This factor isn't as critical if you don't trade frequently, though. Look into any other fees that might charged, too, such as IRA custodian fees, account inactivity fees, paper statement fees, annual fees, and so on.
• Research:Many brokerages offer free company research reports and tools such as stock screeners. If this is valuable to you, see what each of your contenders offers.
• Mutual funds:Some brokerages offer hundreds of funds in which you can invest, while others offer thousands. If you're interested in any particular funds, see whether they're available.
• Non-stock offerings:If you're interested in investing in bonds or CDs in your IRA, for example, see whether they're offered.
• Usability:Look into how easy to use each brokerage's online trading system is and how user-friendly its website is.
• Customer service:Ask some questions of the customer service department to see how responsive it is.
• Convenience:Would you rather place trade orders through an actual person, your phone, or online? See which brokerages offer what you want. Some have brick-and-mortar locations, for instance, while others are only available online.
Once you've settled on the brokerage, contact both the brokerage and your 401(k) plan's administrator to ask how they do such transfers and what information they may need you to provide. For example, you may need to set up an IRA account at the brokerage first and then have your company wire the funds to that account. Or you may be given a check, made out to the brokerage, which needs to be deposited relatively soon. (Remember that 60-day rule!) It's important to follow the rules and procedures of your IRA provider, so that the transfer takes place smoothly, without triggering any headaches such as taxes or penalties.
Again, as with money moved to a new 401(k) plan, be sure to invest those assets effectively and to continue contributing to the account. Don't makecommon IRA mistakes, such as forgetting required minimum distributions, not designating beneficiaries, and trading too often in the account. Consider just keeping much of your money in one or more low-fee index funds -- which is whatWarren Buffetthas recommended for most people. If you're near or in retirement now and aren't too focused on growing your assets and you want to minimize volatility, you might keep a meaningful chunk of your assets in lower-risk places, such as CDs or bonds.
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Global regulators and politicians react to Facebook’s Libra cryptocurrency initiative
Facebook's plans for its upcoming Libra cryptocurrency are already facing regulatory scrutiny as central banks and politicians around the world have called for oversight on the social network’s crypto project. The Block has compiled their reactions:
France’s finance minister Bruno Le Mairesaidthat Libra “can’t and...must not happen” and that “it is out of question’’ for the cryptocurrency to “become a sovereign currency.” He has reportedly called on the Group of Seven (G7) central bank governors and guardians of the global monetary system to review the social media giant’s upcoming cryptocurrency and submit a report next month.
Markus Ferber, a German member of the European Parliament,warned that Facebook could become a “shadow bank” and said regulators should be vigilant.
U.S. Rep. Patrick McHenry, senior Republican on the House Financial Services Committee, firstaskedfor a hearing on Project Libra in a letter to committeeChairwoman, U.S. Rep. Maxine Waters. Later, Waters, a Democrat, called for a halt to Facebook's development of its cryptocurrency.
"Regulators should see this as a wake-up call to get serious about the privacy and national security concerns, cybersecurity risks, and trading risks that are posed by cryptocurrencies," Waters said, adding, "Given the company's troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action."Ohio U.S. Senator Sherrod Brown, the top Democrat on the Senate Banking Committee,reportedlysaid: “Facebook is already too big and too powerful, and it has used that power to exploit users’ data without protecting their privacy. We cannot allow Facebook to run a risky new cryptocurrency out of a Swiss bank account without oversight."
U.S. Federal Reserve chairman Jerome Powellsaidthat the central bank has spoken to Facebook about Libra. "Facebook has made rounds with regulators around the world to discuss its plans [Libra], including us. There are benefits...but also risks we're watching, and echo the statement [Bank of England] Governor Carney issued."
Bank of England governor Mark Carneysaidhe is open-minded about Libra, but warned mass adoption would force it "to be subject to the highest standards of regulation.” He also said that Libra would not launch with an “open door” from regulators.Australia’s central bank chief Philip Lowereportedlysaid: “There’s a lot of water under the bridge before Facebook’s proposal becomes something we’re using all the time.” He added: “There are a lot of regulatory issues that need to be addressed and they’ve got to make sure there’s a solid business case, so we’ve got to be careful before we jump to conclusions.”
Swiss Financial Market Supervisory Authorityis also reportedlyin contactwith the "initiators" of Facebook's crypto project, and is to determine "whether the planned services require approval under Swiss supervisory law and, if so, which."
Facebook officiallyunveiledits cryptocurrency plans earlier this week, with an aim to serve the unbanked and facilitate low-fee money transfers globally. The cryptocurrency Libra is expected to go live next year. |
Legal pot market to hit US$40B, U.S. legalization will trigger 'giants' buying cannabis companies: report
Global spending on legal cannabis will reach US$40.6 billion by 2024, according to a new projection by Arcview Market Research and cannabis industry analysis firm BDS Analytics.
The annual "State of the Legal Cannabis Markets" report released on Thursday is calling for the market to nearly triple from the US$14.9 billion in spending that researchers projected for this year as legal sales gain momentum in more jurisdictions.
“North America will almost certainly continue producing the lion’s share of legal spending, particularly as more U.S. markets transition from medical-only access for a limited pool to full legalization with sales open to all legal adults,” Tom Adams, managing director of industry intelligence at BDS Analytics, wrote in the report.
In Canada, Arcview and BDS are calling for total legal cannabis sales to reach $5.2 billion by 2024. Ontario is expected to account for the bulk of Canadian annual spending at $1.84 billion, followed by Alberta, British Columbia and Quebec.
Medical and adult-use spending for 2018 was estimated to be $570 million. Canada legalized recreational cannabis sales on Oct. 17, 2018.
“Though less spectacular than many had expected and smaller than forecast in previous editions of this report, Canada’s launch of adult-use cannabis should be considered a success,” the report said. “Despite initial supply chain shortages and regulatory hurdles, sales of legal adult-use cannabis in Canada reached an estimated $113 million during the final two-and-a-half months of 2018.”
‘Giants’ await U.S. legalization
Investors saw their cannabis stocks decline sharply in late 2018. It was followed by a rally in early 2019, fuelled by continuing consolidation in Canada and dramatic expansion activity in the United States.
The report said the year ahead will be shaped by many factors including the continued evolution of cannabis retail in Canada, the roll out of next generation products like edibles and vape pens, and the federal election in October.
“With profits scarce, investors are rewarding revenue growth since it is indicative of the likelihood of making it into the top tier of companies big enough to survive when the industry growth slows to a more normal pace,” Adams wrote.
He cites Corona beer-maker Constellation Brands Inc.’s (STZ) major investments in Canopy Growth Corp. (WEED.TO) as the “date of cannabis investment growing up.” The report expects the next “graduation” for publicly-traded companies will be triggered by U.S. federal legalization.
“When that happens, probably in the 2021-2024 period after the next national elections in the U.S . . . many more giants from the agriculture, consumer products and retail sectors will step in to buy cannabis companies, delivering substantial payout to those daring enough to have started building them during the madhouse last days of federal prohibition,” the report said.
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REFILE-Renewable energy sector hails New York state's new climate plan
(Corrects error in fourth paragraph; please read "American Council on Renewable Energy" instead of "American Conference on Renewable Energy")
By Dave Gregorio
NEW YORK, June 20 (Reuters) - Investors, developers and users of renewable energy at an industry conference in New York this week were buzzing about the state's ambitious plan https://www.reuters.com/article/us-climate-change-new-york/new-york-lawmakers-pass-aggressive-law-to-fight-climate-change-idUSKCN1TK2GT to reduce greenhouse gas emissions to zero by 2050.
"New York is leading a path forward with public policy that signals to the capital markets and developers to deploy projects to achieve its ambitious goals," Susan Nickey, managing director at Hannon Armstrong Sustainable Infrastructure Capital Inc , said on Wednesday. New York state lawmakers passed the legislation early Thursday morning.
If Governor Andrew Cuomo signs the bill into law as expected, New York would become the second U.S. state to aim for a carbon-neutral economy. California Governor Jerry Brown signed an executive order last year to make that state carbon-neutral by 2045.
"It's great to have California and New York competing to see who can cut the most carbon," said Gregory Wetstone, president and chief executive officer of the American Council on Renewable Energy, sponsor of the REFF-Wall Street conference in Manhattan.
Wetstone, whose group includes investors, developers and other professionals involved in renewable energy, noted that New York and California are the two most populous U.S. states, "and that matters. The grid will be changing more quickly and that's exciting."
The plan "creates new opportunities for investors in renewable energy that is grid connected but especially 'behind-the-meter' solutions like green roofs, distributed solar, advanced lighting and controls, onsite storage and battery storage projects," said Nickey, whose company invests about $1 billion a year in the sector.
Ted Bardacke, executive director of the Clean Power Alliance of California, a coalition of 31 agencies that band together to buy clean power, said New York's plan could hasten the day when "high levels of renewables on an electric grid are normalized. ... It will bring more capital into the sector and also more thought leadership."
John Rhodes, chairman of the New York State Public Service Commission, told the conference on Tuesday that his office is working to streamline a site application process that can be "lengthy and arduous" for solar and wind developers.
He said power transmission will be another big challenge because there is a lot of land to build wind and solar capacity on upstate, but "the heaviest demand is downstate." He also said he expects a lot more offshore wind projects will be developed in the next few years. (Reporting By Dave Gregorio; editing by Daniel Wallis and Jonathan Oatis) |
What Are Analysts Expecting From Murphy Oil Corporation (NYSE:MUR) In Next 12 Months?
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Looking at Murphy Oil Corporation's (NYSE:MUR) earnings update in March 2019, analyst consensus outlook appear pessimistic, as a 9.3% fall in profits is expected in the upcoming year. However, compared to its 5-year track record of the average earnings growth rate of -12%, this is still an improvement. With trailing-twelve-month net income at current levels of US$415m, the consensus growth rate suggests that earnings will decline to US$376m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. For those keen to understand more about other aspects of the company, you canresearch its fundamentals here.
See our latest analysis for Murphy Oil
The longer term expectations from the 11 analysts of MUR is tilted towards the negative sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
By 2022, MUR's earnings should reach US$330m, from current levels of US$415m, resulting in an annual growth rate of -2.7%. EPS reaches $1.98 in the final year of forecast compared to the current $2.4 EPS today. The main reason for MUR’s earnings contraction is cost outpacing top line growth of 5.7% over the next few years. Furthermore, the current 16% margin is expected to contract to 11% by the end of 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Murphy Oil, I've put together three relevant factors you should further research:
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 Murphy Oil 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 Murphy Oil is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of Murphy Oil? 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. |
3 Stocks the World's Best Investors Are Buying Right Now
One great way to learn how to become a better investor is to watch how the best in the business invest their money. By taking a closer look at what they're buying, investors can see what attracted them to these stocks. They can then apply their learnings to improve their own stock-picking process.
Three stocks that some of the top investors in the world are buying these days are small-cap biotechAxsome Therapeutics(NASDAQ: AXSM), e-commerce giantAmazon(NASDAQ: AMZN), and Canadian utilityTransAlta(NYSE: TAC). Here's what they see in this trio of stocks.
Image source: Getty Images.
George Budwell(Axsome Therapeutics):This year, several of Wall Street's top investors have been buying large chunks of Axsome Therapeutics, a clinical-stage biotech developing novel treatments for central nervous system disorders. In the most recent quarter, for example, Julian and Felix Baker of Baker Bros. Advisors, as well as Kenneth Griffin of Citadel Advisors, bought sizable stakes in this small-cap biotech. Not surprisingly, this surge of interest from Wall Street's super-investor class has coincided with a sharp rise in Axsome's share price in 2019. At its peak, the biotech's shares had risen by a staggering 750% over just the first five months of 2019.
What's all the fuss about? Axsome has two high-value drug candidates in late-stage development -- each of which could produce blockbuster-level sales. The company's lead candidate,AXS-05, is being developed as a first-in-class treatment for treatment-resistant depression, major depressive disorder (MDD), agitation associated with Alzheimer's disease, and smoking cessation. The drug was granted fast track status by the Food and Drug Administration for its treatment-resistant depression and agitation associated with Alzheimer's disease indications, and breakthrough therapy designation for MDD. These coveted regulatory designations could speed up the drug's regulatory review in a big way -- that is, in the event that it succeeds in late-stage testing.
In addition, Axsome hopes to throw its hat into the high-value migraine market soon with its candidate AXS-07. The migraine headache space has seen a number of recent drug approvals, but that doesn't mean that AXS-07 can't carve out a profitable niche in this multibillion-dollar-a-year space if its late-stage trial goes as planned.
Should retail investors also buy into this compelling growth story? The long and short of it is that Axsome's near-term fate depends entirely on the clinical success of AXS-05 and AXS-07. The trial data so far have been encouraging for both drugs, but this is a risky growth play nonetheless. Therefore, retail folk may not want to go hog wild with this prerevenue biotech stock just yet. A smallish position might be a good idea based on how this story is unfolding, but this developmental biotech stock arguably shouldn't make up a disproportionate amount of your portfolio at this stage. Clinical trials, after all, are an inherently risky endeavor.
Rich Duprey(Amazon.com):When Warren Buffett speaks, people listen, and when he opens his wallet to buy a stock, legions of investors follow suit. While running like lemmings anytime any guru makes a move is not smart, whenBerkshire Hathaway(NYSE: BRK-A)(NYSE: BRK-B)buys stock inAmazon.com(NASDAQ: AMZN), there's good reason to take notice.
First, a caveat. It wasn't Buffett himself who made the purchase, but rather one of his two other investment managers, Ted Weschler and Todd Combs. Still,Buffett himself has said he admires Amazonand made a mistake in not buying it before.
The most recent SEC filing by Berkshire shows the holding company bought over 483,000 shares at a value of more than $860 million. It's a sizable investment, but not nearly one of the portfolio's biggest (that would beAppleat around $46 billion). Yet there are a number of good reasons why it should be in Berkshire Hathaway's portfolio, and perhaps yours.
Amazon, of course, is the dominant e-commerce platform accounting for a third of all online retail transactions in 2018, but the cloud computing platform Amazon Web Services is where the real profitable action is. AWS is becoming a larger percentage of Amazon's total sales, and it offers much higher profit margins.
Amazon is also becoming a potent advertising force as ad managers switch hundreds of millions of dollars to Amazon from current leaders Google andFacebook. The threat has Google responding by showing more shopping ads across its platform in a bid to undercut Amazon.
The e-commerce giant is a massive enterprise that touches virtually every aspect of our life and shows no signs of curtailing its reach. It remains an innovative leader and a smart tactician in taking on adversaries. Buffett's purchase of Amazon.com, even if it was done by his lieutenants, is worth noting and perhaps even emulating.
Image source: Getty Images.
Matt DiLallo(TransAlta):Canadian utility TransAlta has caught the attention of some of the world's top energy investors in recent months. Earlier this year, a group of investment funds increased their stake in TransAlta to more than 10% to press the company to make changes. Among the funds involved in that partnership was one managed byBluescape Resources, led by longtime energy industry investor John Wilder.
In addition to that,Brookfield Renewable Partners(NYSE: BEP), the renewable-focused investment arm of leading asset managerBrookfield Asset Management, made a big bet on TransAlta. Brookfield Renewable willinvest750 million Canadian dollars ($569 million) into the company to help it transition to clean energy by 2025. In addition to that direct investment in TransAlta's hydro assets, Brookfield Renewable agreed to buy enough shares on the open market over the next two years to increase its stake in the company from 4.9% up to 9%.
The reason these smart investors are buying shares of TransAlta is that they believe it's significantly undervalued. While the two groups don't agree on the best path to unlock the value of the company -- one of the funds even sued Brookfield to stop its deal -- they both believe that TransAlta could have significant upside if it makes changes. That battle of the energy-investing titans makes it an interesting stock to watch these days.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors.George Budwellhas no position in any of the stocks mentioned.Matthew DiLalloowns shares of Amazon, Apple, Berkshire Hathaway (B shares), Brookfield Asset Management, Brookfield Renewable Partners L.P., and Facebook and has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple.Rich Dupreyhas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon, Apple, and Facebook. The Motley Fool recommends Berkshire Hathaway (B shares) and Brookfield Asset Management. The Motley Fool has adisclosure policy. |
Logitech PC gaming accessories on sale: Shop keyboards, headsets, and more
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Avid PC gamers will swear up and down that playing on apersonal computeris the best way — theonlyway — to get the very most out of your video games. They even say that once you foray into the world of PC gaming, you’ll be hard-pressed to ever touch a console again. Whether you agree with that sentiment or not, it’s difficult to deny the sheer power in terms of performance and graphical fidelity that one of these machines provides.
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CSE New Listing - Michelin Mining Commences Trading on the Canadian Securities Exchange - Video News Alert on Investmentpitch.com
Vancouver, British Columbia--(Newsfile Corp. - June 20, 2019) - Michelin Mining (CSE: MICH) is one of the latest new listings on the Canadian Securities Exchange. The junior natural resource company holds an option to acquire up to a 70% interest in the Rude Creek Property.
For more information, please view the InvestmentPitch Media "video" which provides additional information on the company. If this link is not enabled, please visitwww.InvestmentPitch.comand enter "Michelin" in the search box.
Cannot view this video? Visit:http://www.investmentpitch.com/video/0_d03oxfuk/New-Listing-Michelin-Mining-CSEMICH
The Rude Creek Property, comprised of 204 claims covering an area of approximately 4,157 hectares in west-central Yukon, is located approximately 160 kilometres south of Dawson City. The Rude Creek Gold Project covers the Haxe anomaly and Rude Creek showing, both documented as silver-lead-zinc +/- gold vein occurrences by the Yukon Geological Survey.
A summary of the extensive historical work completed by various operators on the Rude Creek Project is documented the company's NI 43-101 which is available on Sedar.
Following the discovery of the Casino porphyry copper deposit in the late 1960's, 15 kilometers northwest of the property, work in the Dawson Range was aimed at porphyry copper exploration. In the 1980's, the emphasis generally switched to precious metal exploration through the Dawson Range due to the discovery of the Mt. Skukum mine and activity at the Mt. Nansen mine. Gold exploration was renewed and rocketed in 2009 with the discovery of the Golden Saddle deposit at White Gold by Underworld Resources and subsequent discovery of the Coffee deposit in 2011 by Kaminak Gold. The recent discovery in 2018 of high-grade gold at the Vertigo showing of White Gold Corp. has intensified exploration in the region.
Two significant gold soil anomalies have been delineated on the Rude Creek property. Multiple northerly anomalous trends are evident in the Northeast zone, with at least five distinct, linear, 800 meter long gold anomalies over the 1.5 kilometer wide grid, remaining open in all directions.
The NI 43-101 recommends a two-phase exploration program with Phase 1 consisting of: additional grid soil sampling in the Northeast and Trombley areas and detailed mapping, prospecting and structural analysis including a detailed integration and interpretation of the airborne geophysical data. An initial Phase 2 drill program, contingent on results from Phase 1, is recommended with 1,000 meters of RC drilling in about 5 to 6 holes with a helicopter supported rig. The plan is to test the gold mineralization intersected in the RAB and RC drilling on the Trombley zone and the multiple northerly trending gold in soil anomalies at the Northeast zone, and/or additional soil anomalies generated in Phase 1.
In order to earn its 70% interest, Michelin must issue 3,950,000 shares, making cash payments totaling $2.5 million, and carry out exploration and development work of $4,120,000, staged over 4 years.
For more information, please contact Mark T. Brown, CEO, at 604-687-3520 or emailmtbrown@pacificopportunity.com.
About InvestmentPitch Media
InvestmentPitch Media leverages the power of video, which together with its extensive distribution, positions a company's story ahead of the 1,000's of companies seeking awareness and funding from the financial community. The company specializes in producing short videos based on significant news releases, research reports and other content of interest to investors.
CONTACT:InvestmentPitch MediaBarry Morgan, CFObmorgan@investmentpitch.com
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45769 |
IQVIA Holdings (IQV) Looks Good: Stock Adds 5.9% in Session
IQVIA Holdings Inc.IQV was a big mover last session, as the company saw its shares rise nearly 6% on the day. The move came on solid volume too with far more shares changing hands than in a normal session. This continues the recent uptrend for the company as the stock is now up 15.4% in the past one-month time frame.
The company has seen four positive estimate revisions in the past few months, while its Zacks Consensus Estimate for the current quarter has also moved higher over the past few months, suggesting that more solid trading could be ahead for IQVIA Holdings. So, make sure to keep an eye on this stock going forward to see if this recent jump can turn into more strength down the road.
IQVIA Holdings currently has a Zacks Rank #3 (Hold) while its Earnings ESP is positive.
IQVIA Holdings Inc. price | IQVIA Holdings Inc. Quote
A better-ranked stock in the Technology Services industry is Blucora, Inc. BCOR, which currently carries a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Is IQV going up? Or down? Predict to see what others think: Up or Down
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportBlucora, Inc. (BCOR) : Free Stock Analysis ReportIQVIA Holdings Inc. (IQV) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Alexandra Ocasio-Cortez Has a Message for Democrats After 'Boy Bye' Tweet
Leave it toAlexandra Ocasio-Cortezto put politicians in check on Twitter—this time it’s her fellow Democrats.
On Wednesday, the freshman Congresswoman from New York responded to atweeton Saturday from the Democratic National Committee’s officialTwitteraccount.
The tweet mentions a phone wallpaper featuring President Donald Trump’s face along with the words “Boy Bye,” a famous lyric from Beyoncé’s 2016 hit song “Sorry” (Yep, that song that also says “He better call Becky with the good hair”) placed on top of it. The wallpaper can be downloaded by texting a five-digit number.
Ocasio-Cortez gave a rather snarky reply to her DNC colleagues.
“Someone didn’t go to my Twitter class,” she said.
The Congresswoman is no stranger to letting her feelings be known on Twitter, even clapping back to politicians, including President Donald Trump. On Sunday, she called out Trump’s “bluff” on Twitter after hetweetedcomments she said earlier during a TV interview about the Democrats’ mounting pressure to try to impeach him.
“Mr. President, you’re from Queens. You may fool the rest of the country, but I’ll call your bluff any day of the week,” Ocasio-Cortez, a native from The Bronx,tweetedlate Sunday. “Opening an impeachment inquiry is exactly what we must do when the President obstructs justice, advises witnesses to ignore legal subpoenas, & more,” she continued.
She also added the word “Bye,” and a waving-hand emoji.
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Should We Worry About Vail Resorts, Inc.'s (NYSE:MTN) P/E Ratio?
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This article is written for those who want to get better at using price to earnings ratios (P/E ratios). We'll look at Vail Resorts, Inc.'s (NYSE:MTN) P/E ratio and reflect on what it tells us about the company's share price.Vail Resorts has a price to earnings ratio of 31, based on the last twelve months. That means that at current prices, buyers pay $31 for every $1 in trailing yearly profits.
See our latest analysis for Vail Resorts
Theformula for P/Eis:
Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Or for Vail Resorts:
P/E of 31 = $235.66 ÷ $7.6 (Based on the trailing twelve months to April 2019.)
A higher P/E ratio means that buyers have to paya higher pricefor each $1 the company has earned over the last year. That is not a good or a bad thingper se, but a high P/E does imply buyers are optimistic about the future.
Probably the most important factor in determining what P/E a company trades on is the earnings growth. That's because companies that grow earnings per share quickly will rapidly increase the 'E' in the equation. And in that case, the P/E ratio itself will drop rather quickly. Then, a lower P/E should attract more buyers, pushing the share price up.
Vail Resorts saw earnings per share decrease by 25% last year. But it has grown its earnings per share by 44% per year over the last five years.
The P/E ratio essentially measures market expectations of a company. As you can see below, Vail Resorts has a higher P/E than the average company (22.8) in the hospitality industry.
Vail Resorts's P/E tells us that market participants think the company will perform better than its industry peers, going forward. Shareholders are clearly optimistic, but the future is always uncertain. So further research is always essential. I often monitordirector buying and selling.
One drawback of using a P/E ratio is that it considers market capitalization, but not the balance sheet. So it won't reflect the advantage of cash, or disadvantage of debt. The exact same company would hypothetically deserve a higher P/E ratio if it had a strong balance sheet, than if it had a weak one with lots of debt, because a cashed up company can spend on growth.
While growth expenditure doesn't always pay off, the point is that it is a good option to have; but one that the P/E ratio ignores.
Vail Resorts has net debt worth 14% of its market capitalization. That's enough debt to impact the P/E ratio a little; so keep it in mind if you're comparing it to companies without debt.
Vail Resorts has a P/E of 31. That's higher than the average in the US market, which is 17.9. With a bit of debt, but a lack of recent growth, it's safe to say the market is expecting improved profit performance from the company, in the next few years.
Investors should be looking to buy stocks that the market is wrong about. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' So thisfreereport on the analyst consensus forecastscould help you make amaster moveon this stock.
Of course,you might find a fantastic investment by looking at a few good candidates.So take a peek at thisfreelist of companies with modest (or no) debt, trading on a P/E below 20.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Is the Options Market Predicting a Spike in EnscoRowan (ESV) Stock?
Investors inEnsco Rowan plcESV need to pay close attention to the stock based on moves in the options market lately. That is because the Jun 21, 2019 $9.00 Put had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for EnscoRowan shares, but what is the fundamental picture for the company? Currently, EnscoRowan is a Zacks Rank #3 (Hold) in the Oil and Gas – Drilling industry that ranks in the Top 36% of our Zacks Industry Rank. Over the last 60 days, one analyst has increased the earnings estimate for the current quarter, while five have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from a loss of $1.33 per share to a loss of $1.30 in that period.
Given the way analysts feel about EnscoRowan right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Each week, our very own Dave Bartosiak gives his top options trades. Check out his recent live analysis and options trade for the NFLX earnings report completely free. See it here: Trading Netflix's (NFLX) Earnings with Options or check out the embedded video below for more details:
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 reportEnsco plc (ESV) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
What Wall Street is saying about the 10-year yield dipping below 2%
Thestock and bond marketscontinue to tell very different stories. On Thursday, the 10-year Treasury (^TNX) yielddipped below 2%, to as low as 1.97%, for the first time in almost three years, while the S&P 500 (^GSPC) notched record highs.
The divergence between the stock and bond markets was exacerbated by the Federal Reserve’sdovish tiltin its statement on Wednesday. The Fed acknowledged “muted inflation pressures” and priced in rate cuts for 2020. Though multiple Wall Street banks, including Goldman Sachs, Barclays and Deutsche Bank, expect the Fed to act sooner and cut rates in 2019.
The expectations of a dovish Fed sparks two types of reactions from investors:
1. Investors plow money into bonds, for fear that the Fed’s support is a signal that the economy is weakening. Bonds act as a safe-haven asset during times of economic duress. This sentiment contributed to the falling 10-year yield as increased demand for bonds pushes yields down. Bond prices and yields move in opposite directions
1. With bond yields lower, yield hungry investors have no choice but to allocate money into the stock market, hence the new record highs reached Thursday.
It’s this type of playbook that leaves many investors wondering how to view the economic outlook for the near-term.
Yahoo Finance asked three Wall Street experts to weigh in on this dynamic:
“As it relates to the one-handle on U.S. 10-year, global yields have come down rapidly this week. It was inevitable to see pressure on U.S yields while all of the developed countries sovereign debt yields have come under extreme pressure. For example, the German 10-year yield is negative. It’s impossible for U.S. yields to remain elevated in a global marketplace while yields around the globe are crashing. The move in U.S. bonds is probably overdone.” -Art Hogan, chief market strategist, National Securities
“With stocks at all-time highs, investors are operating on pure sentiment. That means psychological levels matter, especially on the world’s benchmark risk-free rate, the 10-year Treasury. Breaking below 2% signals that the markets have begun to price in a recession in the U.S. Trade deal or not, Fed Chair Jerome Powell’s hand will be forced by the data. It’s also telling that the most hawkish house on the Street, Goldman Sachs, flipped their forecast from no rate changes this year to two cuts this year.” -Danielle DiMartino Booth, former Federal Reserve advisor and CEO of Quill Intelligence
“I’m a bit surprised the 10-year yield slipped, since the prospect of lower short-term rates would increase the likelihood of higher inflation down the road, which should drive up the 10-year yield, not down. If there is one consolation, it’s that the 10-yr yield is now below the dividend yield on the S&P 500, which has typically been favorable for equity prices.” -Sam Stovall, chief investment strategist, CFRA Research
Scott Gamm is a reporter at Yahoo Finance. Follow him on Twitter@ScottGamm.
More from Scott:
• The next rate cut is unlikely to be caused by weak growth, economist explains
• Why Trump should be worried about the stock market selloff
• What the plunging 10-year Treasury yield says about the economy and stock market
• Why one top strategist is bullish on tech even with lingering trade worries
Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,LinkedIn, andreddit. |
If You Like EPS Growth Then Check Out MSA Safety (NYSE:MSA) Before It's Too Late
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Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses.
So if you're like me, you might be more interested in profitable, growing companies, likeMSA Safety(NYSE:MSA). Even if the shares are fully valued today, most capitalists would recognize its profits as the demonstration of steady value generation. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed.
Check out our latest analysis for MSA Safety
The market is a voting machine in the short term, but a weighing machine in the long term, so share price follows earnings per share (EPS) eventually. It's no surprise, then, that I like to invest in companies with EPS growth. We can see that in the last three years MSA Safety grew its EPS by 15% per year. That's a pretty good rate, if the company can sustain it.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. While we note MSA Safety's EBIT margins were flat over the last year, revenue grew by a solid 8.1% to US$1.4b. That's a real positive.
In the chart below, you can see how the company has grown earnings, and revenue, over time. For finer detail, click on the image.
The trick, as an investor, is to find companies that aregoing toperform well in the future, not just in the past. To that end, right now and today, you can checkour visualization of consensus analyst forecasts for future MSA Safety EPS100% free.
It makes me feel more secure owning shares in a company if insiders also own shares, thusly more closely aligning our interests. So it is good to see that MSA Safety insiders have a significant amount of capital invested in the stock. Indeed, they have a glittering mountain of wealth invested in it, currently valued at US$311m. I would find that kind of skin in the game quite encouraging, if I owned shares, since it would ensure that the leaders of the company would also experience my success, or failure, with the stock.
It's good to see that insiders are invested in the company, but are remuneration levels reasonable? Well, based on the CEO pay, I'd say they are indeed. I discovered that the median total compensation for the CEOs of companies like MSA Safety with market caps between US$2.0b and US$6.4b is about US$5.2m.
MSA Safety offered total compensation worth US$2.8m to its CEO in the year to December 2018. That seems pretty reasonable, especially given its below the median for similar sized companies. CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders. I'd also argue reasonable pay levels attest to good decision making more generally.
As I already mentioned, MSA Safety is a growing business, which is what I like to see. Earnings growth might be the main game for MSA Safety, but the fun doesnotstop there. With a meaningful level of insider ownership, and reasonable CEO pay, a reasonable mind might conclude that this is one stock worth watching. Once you've identified a business you like, the next step is to consider what you think it's worth. And right now is your chance to view our exclusivediscounted cashflow valuationof MSA Safety. You might benefit from giving it a glance today.
You can invest in any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here isa list of companies with insider buying in the last three months.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Philippines' Globe Telecoms launches 5G service backed by Huawei equipment
By Neil Jerome Morales MANILA (Reuters) - Philippines' Globe Telecom Inc on Thursday launched Southeast Asia's first 5G broadband service, with embattled Huawei Technologies Co Ltd providing the equipment, a win for the Chinese firm despite cybersecurity worries from Western nations. The telecoms firm aims to offer high-speed internet to tens of thousands of homes and offices in key urban centers as part of its $1.2 billion capital spending this year, Alberto de Larrazabal, Globe's chief commercial officer, told reporters. Globe would use Huawei's equipment like radios and modems to deliver 5G quality broadband internet, he added. Huawei and Finland's Nokia were Globe's equipment providers for its 4G service. The United States had warned that next-generation 5G equipment, which some telecoms experts see as more vulnerable to attack than previous technology, could be exploited by the Chinese government for spying if supplied by Huawei, which the company denies. Washington, a treaty ally of Manila, had persuaded governments and telecoms operators to shun Huawei, the world’s largest maker of telecommunications equipment. Globe hired independent firms "to ensure that our security protocols are up to date, to make sure privacy and security issues are addressed," de Larrazabal said. Philippine consumers, the world's top social media users, often get frustrated with slow and choppy internet connections. The Philippines' mobile internet and fixed broadband speeds lag behind its neighbors, data from Ookla's Speedtest Global Index showed. It ranks 107th among 178 countries in terms of fixed broadband speed at 19.55 megabits per second (Mbps) versus the global average of 59.6 Mbps. Among 140 countries, it ranks 107th in terms of mobile internet speed at 15.10 Mbps, nearly half of the 27.22 Mbps global average. Globe is owned by Philippine conglomerate Ayala Corp, with Singapore Telecommunications Ltd holding a minority stake. (Editing by Alexandra Hudson) |
Goldman slashes Tesla price target by $42 on demand concerns
(Reuters) - Goldman Sachs on Thursday cut its price target on Tesla Inc by 21%, to third lowest on the Street, on concerns about the sustainability of demand for the electric car maker's models.
Earlier this month, Chief Executive Officer Elon Musk told shareholders that Tesla was on track to hit its volume production goal for the year and had "a decent shot at a record quarter on every level".
Goldman Sachs analyst David Tamberrino believes although the second quarter has been witnessing a better environment for demand for Tesla's cars, he doesn't think it is sustainable.
"While there is potential upside surprise from a faster ramp or pull forward of Model Y ahead of schedule, there is likely cannibalization of current Model X and Model 3 product demand with a crossover variant," Tamberrino wrote in a note.
Analysts have questioned if there is global demand for the hundreds of thousands of Model 3 sedans and other vehicles Tesla aims to produce, after deliveries fell 31% in the first quarter.
"We believe that is the largest question for investors to underwrite at this point — what are sustainable demand levels for the Model S, Model X, and Model 3 — and how does that change with the introduction of Model Y production," Tamberrino said.
The brokerage maintained his "sell" rating on the stock and cut its target by $42 to $158, 34% below the median target, saying the Street is "still modeling too optimistic sustainable volumes for Tesla".
Tesla stock has seen more session wins in June than losses, a rare for the company which has lost 33% in value so far this year. However, led by Musk's near-term delivery promises, shares have bounced back lately. June so far has been the best month since October for Tesla stock.
Tamberrino expects the downward spiral for shares to resume as it becomes more clear that sustainable demand for Tesla's products are below expectations.
Shares of the company were marginally down at $226.10 in early trading.
Twelve of 31 brokerages covering the stock rate it "buy" or higher, 7 "hold" and 12 "sell" or lower, according to IBES data from Refinitiv.
(Reporting by Vibhuti Sharma in Bengaluru; Editing by Shinjini Ganguli) |
Is Nomad Foods Limited (NYSE:NOMD) Potentially Undervalued?
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Nomad Foods Limited (NYSE:NOMD), which is in the food business, and is based in United Kingdom, maintained its current share price over the past couple of month on the NYSE, with a relatively tight range of $20.15 to $22.09. However, does this price actually reflect the true value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Nomad Foods’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for Nomad Foods
According to my valuation model, Nomad Foods seems to be fairly priced at around 17% below my intrinsic value, which means if you buy Nomad Foods today, you’d be paying a fair price for it. And if you believe the company’s true value is $24.53, then there isn’t much room for the share price grow beyond what it’s currently trading. So, is there another chance to buy low in the future? Given that Nomad Foods’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Nomad Foods’s earnings over the next few years are expected to increase by 91%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
Are you a shareholder?NOMD’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor?If you’ve been keeping an eye on NOMD, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Nomad Foods. You can find everything you need to know about Nomad Foods inthe latest infographic research report. If you are no longer interested in Nomad Foods, you can use our free platform to see my list of over50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Feast On Income With A New ETF Of ETFs
Tuttle Tactical Management is getting back into the exchange traded funds game with a new ETF of ETFs designed to deliver high levels of income.
What Happened
In partnership with Belpointe Asset Management, Tuttle recently launched theBelpointe Tactical Income ETF(NYSE:TBND).
The new TBND, which is actively managed, can be seen as a multi-asset play because its selection universe includes dividend stocks, master limited partnerships, real estate investment trusts and various fixed income instruments.
Why It's Important
Tuttle's refined tactical asset allocation strategy serves as the backstop for the new TBND.
“Tactical Asset Allocation (TAA) is becoming more popular as investors prefer a methodology that strives to protect from market downside while still participating in market upside,” according to Tuttle. “Unfortunately, many tactical methodologies fail to protect investors in all markets. Traditional tactical management styles do well in a straight up or straight down market, but tend to struggle to perform well in choppy markets. Trend Aggregation differentiates from a traditional tactical style by having well-defined strategies for all market climates.”
Holdings in the new ETF include theiShares U.S. Real Estate ETF(NYSE:IYR),iShares TIPS Bond ETF(NYSE:TIP),iShares J.P. Morgan USD Emerging Markets Bond ETF(NASDAQ:EMB) and theiShares iBoxx $ High Yield Corporate Bond ETF(NYSE:HYG).
What's Next
With the Federal Reserve setting the stage for an interest rate cut later this year, an ETF chock full of high-yielding assets, such as the new TBND, could thrive in terms of performance. However, the potential stumbling block for this fund is its rich annual fee of 1.71%, meaning the managers better deliver the goods in terms of performance.
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© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Announcing: Marinus Pharmaceuticals (NASDAQ:MRNS) Stock Increased An Energizing 187% In The Last Three Years
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It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But when you pick a company that is really flourishing, you canmakemore than 100%. To wit, theMarinus Pharmaceuticals, Inc.(NASDAQ:MRNS) share price has flown 187% in the last three years. That sort of return is as solid as granite. In the last week shares have slid back 2.8%.
Check out our latest analysis for Marinus Pharmaceuticals
With zero revenue generated over twelve months, we don't think that Marinus Pharmaceuticals has proved its business plan yet. As a result, we think it's unlikely shareholders are paying much attention to current revenue, but rather speculating on growth in the years to come. It seems likely some shareholders believe that Marinus Pharmaceuticals will significantly advance the business plan before too long.
As a general rule, if a company doesn't have much revenue, and it loses money, then it is a high risk investment. You should be aware that there is always a chance that this sort of company will need to issue more shares to raise money to continue pursuing its business plan. While some companies like this go on to deliver on their plan, making good money for shareholders, many end in painful losses and eventual de-listing. Marinus Pharmaceuticals has already given some investors a taste of the sweet gains that high risk investing can generate, if your timing is right.
When it last reported its balance sheet in March 2019, Marinus Pharmaceuticals had cash in excess of all liabilities of US$51m. That's not too bad but management may have to think about raising capital or taking on debt, unless the company is close to breaking even. With the share price up 42% per year, over 3 years, the market is seems hopeful about the potential, despite the cash burn. You can see in the image below, how Marinus Pharmaceuticals's cash levels have changed over time (click to see the values).
In reality it's hard to have much certainty when valuing a business that has neither revenue or profit. One thing you can do is check if company insiders are buying shares. It's usually a positive if they have, as it may indicate they see value in the stock. You canclick here to see if there are insiders buying.
Marinus Pharmaceuticals shareholders are down 38% for the year, but the broader market is up 5.0%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Fortunately the longer term story is brighter, with total returns averaging about 42% 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. Most investors take the time to check the data on insider transactions. You canclick here to see if insiders have been buying or selling.
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. |
Phunware Launches PhunCoin Cryptocurrency
Phunware Inc(NASDAQ:PHUN) has launched its own cryptocurrency: the Phun utility token.
The PhunCoin is a utility token that allows consumers to “monetize their digital activity as they engage in profitable behavior with brands," according to the company.
Users can “monetize their digital identity” with the company, and Phunware said it offers token holders a PhunCoin dividend.
“PhunCoin empowers consumers and seeks to ensure that they are properly compensated for their personal data and information, while Phun allows brands to unlock many of the features and capabilities of Phunware's cloud platform for mobile to better engage consumers,” CEO Alan Knitowski said in a statement.
Phunware shares were up 19.66% at $4.20 at the time of publication Thursday.
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Photo courtesy of Phunware.
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© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Stock Market News: Slack Keeps Investors Waiting; Kroger Doubles Down on Digital
Thursday morning featured a strong open on Wall Street, as investors apparently took more time to consider the latest comments from the Federal Reserve and concluded that they could be beneficial for the market as a whole. As of 11 a.m. EDT, theDow Jones Industrial Average(DJINDICES: ^DJI)gained 192 points to 26,696. TheS&P 500(SNPINDEX: ^GSPC)picked up 22 points to 2,948, and theNasdaq Composite(NASDAQINDEX: ^IXIC)was higher by 69 points to 8,056.
One of the most closely followed private companies in the tech industry,Slack Technologies(NYSE: WORK), is supposed to begin trading on the New York Stock Exchange today, but it was slow to come out of the gate as market technicians sought to balance buyers and sellers to ensure an orderly debut for the enterprise chat specialist. Meanwhile,Kroger(NYSE: KR)operates in a business that few would think has much potential for being associated with high tech, but its efforts in promoting digital ordering as a new way to shop have borne fruit.
Shares ofSlack Technologieshadn't yet begun to trade as of 11 a.m. EDT. The NYSE set a reference price of $26 per share late Wednesday in anticipation of this morning's open, but the latest indications from market makers suggested that the stock could first trade at a higher level between $30 and $34 per share.
Image source: Slack Technologies.
Slack decided a while backnot to do a traditional initial public offering, in which a company engages underwriters to help it sell stock to an initial set of investors. Only after the IPO does the stock begin secondary trading on the stock market, and that can lead to a wide disparity between what the company receives from IPO participants and what ordinary investors end up having to pay for the stock.
Instead,Slack opted for a direct listing, in which the company connects early investors who want to sell all or a portion of their holdings directly with would-be buyers of the stock. Slack itself won't get any proceeds from the listing, as there won't be any new stock offered to investors. Instead, supply and demand will work naturally to determine pricing for Slack shares.
That's not to say that there won't necessarily be fireworks in how Slack's stock trades.Spotifywent the direct-listing route in early 2018, and its stock soared from its reference price when it opened before easing back lower. However, with a larger float, it's more likely that trading will happen in an orderly manner, and that will let long-term investors focus more on Slack's potential for growth in its core business.
Meanwhile, Kroger saw its stock drop 1% after the grocerreleased its first-quarter financial report. Total revenue fell about 1% from year-ago levels, and adjusted earnings per share were also down slightly over the same period, although Kroger's bottom line came in higher than most investors had expected.
Yet Kroger didn't spend much time reflecting on its past. Instead, CEO Rodney McMullen made it clear that the grocery giant is working hard to keep up with the pace of innovation in the industry, with its Restock Kroger initiative concentrating on a number of key areas. The company's overall goal of "assembling a platform to deliver anything, anytime, anywhere" resonates well with today's shoppers, and Kroger hopes it'll work in the grocery context.
That transformation has already largely taken shape. Kroger now offers pickup in almost 1,700 locations, and it offers more than 2,100 delivery locations. Together, that covers 93% of Kroger's customer base. Moreover, the company is testing its Home Chef concept of meal kits and other convenience-oriented options for customers, and its partnership with Ocado to build robot-powered grocery warehouses should position Kroger to boost its logistical efficiency.
Withkey competitors emphasizing online groceries, Kroger has dedicated itself to fighting back. Despite somewhat lackluster overall results, the most important thing about Kroger's report today is the extent to which it sees itself remaining an innovative leader in the grocery business for the foreseeable future.
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Dan Caplingerhas 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. |
How Much Of Mercury Systems, Inc. (NASDAQ:MRCY) Do Institutions Own?
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The big shareholder groups in Mercury Systems, Inc. (NASDAQ:MRCY) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that used to be publicly owned tend to have lower insider ownership.
Mercury Systems is a pretty big company. It has a market capitalization of US$3.8b. Normally institutions would own a significant portion of a company this size. Our analysis of the ownership of the company, below, shows 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 MRCY.
View our latest analysis for Mercury Systems
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
We can see that Mercury Systems does have institutional investors; and they hold 87% of the stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Mercury Systems, (below). Of course, keep in mind that there are other factors to consider, too.
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 Mercury Systems. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Shareholders would probably be interested to learn that insiders own shares in Mercury Systems, Inc.. This is a big company, so it is good to see this level of alignment. Insiders own US$79m worth of shares (at current prices). It is good to see this level of investment by insiders. You cancheck here to see if those insiders have been buying recently.
The general public holds a 11% stake in MRCY. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
It's always worth thinking about the different groups who own shares in a company. But to understand Mercury Systems better, we need to consider many other factors.
I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow, for free.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss thisfreereport on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
What Is Slack? And Other Burning Questions, Answered
You can’t get within 10 clicks of a business website today and not beoverwhelmed with storiesaboutSlack’s kinda-sorta, but not really IPO. It’s expected to be one of thebiggest public offerings of the year, but this red hot company is still something of a mystery to many workers.
Slack Technologies might be an invaluable tool for many office workers (its CEO is predicting it willend company emails within seven years), but there are millions of people whose jobs don’t require the service and might be a bit confused about the hoopla.
If you’re among them, we’ve got some explainers for you. Call it a Slack FAQ, if you will.
Slack is a messaging tool for offices thatlets workers communicate securely, regardless of location. It can trace its roots back to older services like AOL Messenger, but it’s much more robust, with organized discussions via channels (letting company divisions, project teams and even office locations have their own discussions without the clutter of a larger group chat). It’s easy to join or leave these channels, controlling which conversations you want to be included in or a part of.
That lets you set up both work-specific chats as well as a virtual office water cooler, if you have a number of workers who telecommute. (Here areFortune, we tend to gather to talk about our pets.)
The service also has thousands of apps that can integrated into it, making it an extremely flexible communications device.
Part of Slack’s appeal is its flexibility. The company offers a free service as well as two paid plans forsmaller companies, as well as an Enterprise Grid plan for larger ones.
Small and medium-sized businesses pay $6.67 per person per month, when billed annually. Larger businesses pay $12.50 per person per month, with a few extra tools at their disposal.
Founder Stewart Butterfield originally codenamed the service “linefeed” when he was working with his team to develop it, but on Nov. 14, 2012, hehad a revelationthat would lead to the company’s name. Slack, technically, is an acronym for “Searchable Log of All Conversation & Knowledge.” But he also liked it because it was “just nice to say.”
It was supposed to be a short term placeholder. It became the company’s calling card.
Slack shares will trade on the New York Stock Exchange under the ticker WORK. The company isvalued at around $17 billion.
It’s not. Not yet, anyways. In paperwork filed with the SEC, it said there was no guarantee it ever would reach that goal. Investors, for now, don’t care.
Slack expects revenue growth of 50% in its fiscal second quarter, a slowdown from previous quarters, but still an impressive rate. In fiscal 2019, it reported $400 million in revenue, but $138 million in losses.
Slack’s chairman wasn’t your typical tech startup founder. He didn’t care much about computers as a kid and wasraised in a log cabin without running wateror electricity. He studied philosophy in college and didn’t really have a goal when he graduated with his Master’s degree. Eventually, he founded Flickr, the photo and video hosting service now owned by Yahoo. He stayed with the company after that takeover until 2008, when he left to found Slack. He’s now worth over $1 billion.
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Florida City Officials Approve $600,000 Ransomware Payment of 65 Bitcoins
ByCCN Markets: Hackers who paralyzed Florida’s Riviera Beach City’s IT infrastructure are about to laugh all the way to the bank. This is after the Riviera Beach City Council voted to authorize the city’s insurer to meet the ransom demands of the hackers who planted ransomware in the city’s computer systems. The hackers have been demanding 65 bitcoins, worth over $606,000 at the current bitcoin price, perThe Palm Beach Post.
Perhaps as an indication of the urgency of the matter, the council voted unanimously in two minutes the board to authorize the payments. The city will fork out about $25,000 to cover the deductible.
The ransomware attack started towards the end of last month. It has been traced to the opening of an infected email attachment by an employee at the city’s police department. Essential services such as email were knocked offline.
The city has had to resort to a manual workaround to make payments to vendors and to accept payments for utility services.
Read the full story on CCN.com. |
UPDATE 1-Mexican president slams 'failure' of energy reform, defends economic record
(Updates with quotes, background on economy)
By Dave Graham
MEXICO CITY, June 20 (Reuters) - Mexican President Andres Manuel Lopez Obrador on Thursday renewed his attacks on his predecessor's opening of the oil and gas industry to private investment, saying that no more contracts would be awarded unless companies produced results.
Lopez Obrador, a leftist who took office in December, has been a persistent critic of a 2013-14 legislative overhaul by his predecessor, Enrique Pena Nieto, that opened Mexican oil and gas production and exploration to private capital.
Speaking at his regular morning news conference, the president also pushed back against suggestions that the Mexican economy, which contracted by 0.2% quarter-on-quarter in the first three months of this year, could be sliding towards a recession under his watch.
Noting he was privy to information that painted a rosier economic picture, Lopez Obrador said higher wages were boosting private consumption and that inflation was under control.
Under the oil reform legislation, more than 100 contracts were issued, but Lopez Obrador has argued that Pena Nieto's reform failed, making the prospect of new tender rounds for contracts "inadmissible" unless output and investment increased.
"I have never committed myself to the rounds continuing," Lopez Obrador said.
"How are we going to justify having more invitations to bid for oil blocks if what was done was a failure, or hasn't delivered results?" he added. "We can't continue to hand out contracts like was done in the mining industry."
The architects of Pena Nieto's energy reform "deceived" the public by saying it would boost oil output, he added.
Lopez Obrador's remarks came in the midst of the Congreso Mexicano del Petroleo, one of the most important annual gatherings for the oil industry in Mexico.
Lopez Obrador had been responding to a question on whether his efforts to inspire business confidence last week by signing an investment pact with executives had been undermined by the oil regulator's announcement that same day that planned auctions to find partners for state oil firm Pemex were being canceled.
Pemex has struggled with hefty losses and is saddled with around $106 billion in debt.
Lopez Obrador has pledged to revive the company's fortunes, and many analysts argue that partnerships with other firms are imperative to provide it with more funds.
Mexican crude output, meanwhile, has fallen by around half since peaking in 2004 at some 3.4 million barrels per day.
Proponents of Pena Nieto's energy reform say it will take years to bring new production on stream.
Lopez Obrador has had an awkward relationship with corporate leaders, and he infuriated many by canceling a partly built $13 billion airport for Mexico City just weeks before taking office.
(Additional reporting by Diego Ore Editing by Chizu Nomiyama and Steve Orlofsky) |
Naspers Sets the Date for Its Tencent Stake Spinoff: What Investors Need to Know
While many investors may be interested in owning shares of Chinese internet conglomerateTencent(NASDAQOTH: TCEHY), Irecently recommendedinvesting in Tencent indirectly, viaNaspers(NASDAQOTH: NPSNY)-- South Africa's biggest company.
Naspers is the lucky venture capital firm that invested in Tencent early on, and it retains a 31% stake in the Chinese giant -- a stake now worth $125 billion. In addition, Naspers owns several media businesses in South Africa, as well as equity stakes in some 20 global internet businesses operating in the classifieds, payments and fintech, food delivery, travel, and social media spaces. Most of these companies are in high-growth emerging markets like China, India, Latin America, Africa, and the Middle East.
Yet despite outperforming Tencent over the past month, Naspers is still trading at a 20% discount to its Tencent stakealone.The company is essentially a victim of its own success: At this point, it accounts for about 25% of the share weighed value on the Johannesburg Stock Exchange. But because most South African mutual funds and institutional investors can't hold more than 10% of their value in a single stock, they have been forced to repeatedly trim their Naspers stakes, which has put downward pressure on the share price.
However, this situation will be changing soon. Earlier this year, Naspers announced plans to spin off its global internet businesses -- including its Tencent stake -- into a new company fittingly called "NewCo," to be listed on Euronext Amsterdam, with a secondary listing on the JSE. The company believes that this will relieve some of the selling pressure Naspers experiences on the JSE.
Late last month, Naspers issued a document giving more details on the spinoff, including dates for the new share issuance. Here's what you need to know.
Image source: Getty Images.
On the issue date, Naspers N shareholders will receive one Naspers M share, which will then be exchanged for one NewCo N share. However, if current Naspers shareholders don't wish to receive NewCo shares, they'll have the option of receiving additional Naspers N shares instead.
Following the capitalization, Naspers will own roughly 73% of NewCo, with the rest as independent float. Naspers will also retain its South African assets, consisting of Media24 and several e-commerce sites such as Takealot, Mr D Food and Property24.
Naspers itself trades on the JSE, so U.S. investors can only own shares one of two ways: either by using a broker that has access to the JSE, or by purchasing NaspersAmerican Depositary Receipts, (ADRs), which trade over-the-counter in the U.S. Since ADR holders don't own shares directly, one might wonder if ADR holders will receive their own shares of NewCo.
The answer is, fortunately, yes.
For U.S. Naspers ADR holders, the arrangement will be much the same. Naspers will establish a NewCo ADR facility in the U.S. throughBank of New York Mellon(NYSE: BK), and Naspers ADR holders will receive NewCo ADRs on much the same terms as regular NewCo shares will be distributed on the JSE.
The one drawback for ADR holders is that they won't have the option of receiving more Naspers ADRs instead of NewCo ADRs. However, that shouldn't be a problem for most, as I expect the NewCo shares to rerate even more on Euronext than even the remaining Naspers shares.
If you're interested, there's still time to get into Naspers before the NewCo spinoff. The "ex-distribution" date will be July 17, with the record date being July 19, followed by the distribution of temporary M shares scheduled for July 22, and finally the exchange of NewCo shares on July 23.
Therefore, as long as you purchase Naspers ADS' s before July 17, you will qualify to receive NewCo shares by July 23.
Though Naspers' market cap is still about 20% below the value of its Tencent stake, the gap has narrowed over the past month in anticipation of the spinoff.
NPSNY 1 Month Total Returns (Daily)data byYCharts
After the July issuance of Newco shares, Naspers' stock will still make up about 18% of the value of the Johannesburg Exchange -- an outsize portion of that market that will perhaps leave it subject to technical selling pressure. However, that pressure should ease further. Additionally, it's possible that NewCo shares could appreciate substantially, since they will trade on the much larger Euronext exchange.
How much will the gap shrink between the market values of Naspers/NewCo and the underlying values of their assets? Only time will tell, but considering NewCo will own stakes in some 20-odd businesses in addition to its Tencent holding, I'd expect there to be at least a noticeable movement in shares. At any rate, it will be exciting to see what happens.
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Billy Dubersteinowns shares of Naspers Limited (ADR). His clients may own shares of the companies mentioned. The Motley Fool owns shares of and recommends Tencent Holdings. The Motley Fool has adisclosure policy. |
Quadriga’s Crypto Ended Up in CEO’s Accounts on Rival Exchanges
(Bloomberg) -- It’s looking more and more like QuadrigaCX founder Gerald Cotten mismanaged the digital-asset exchange before he died, with cryptocurrencies from clients ending up at rival marketplaces in his personal accounts.
The latest report from Ernst & Young, which is overseeing the bankruptcy process for Quadriga Fintech Solutions Corp., paints a clearer picture of a Vancouver-based firm that lacked financial reporting and operational controls, run primarily by a founder whose actions ultimately led to its collapse, leaving hundreds of customers owed millions in cash and cryptocurrency.
“Quadriga’s operating infrastructure appears to have been significantly flawed from a financial reporting and operational control perspective,” the June 19 report said. “Activities were largely directed by a single individual, Mr. Cotten, and as a result typical segregation of duties and basic internal controls did not appear to exist.”
Cotten ran Quadriga mostly from his laptop, and his sudden death in December while traveling in India threw the business into disarray. Speculation has swirled around the firm as a series of peculiar details have filtered out, including that digital storage accounts used by Quadriga to hold Bitcoin for clients were empty for months before Cotten’s death.
There were “significant volumes” of cryptocurrency transferred off the Quadriga platform into competitor exchanges and into personal accounts controlled by Cotten, the report said.
“It appears that user cryptocurrency was traded on these exchanges and in some circumstances used as a security for a margin trading account established by Cotten,” according to the report.
Competitor exchanges received multiple forms of cryptocurrencies from Quadriga wallets from 2016 through 2019 -- 9,450 Bitcoin, 387,738 Ethereum and 239,020 Litecoin, according to the report. Quadriga’s cryptocurrency reserves were “adversely affected” by trading losses and incremental fees charged by other exchanges, the report said.
“The conversion of user cryptocurrency into other currencies through competitor exchanges resulted in incremental fees being incurred and currency exchange fluctuations relative to the original currency generating gains and losses,” the report said. “In addition, it appears that the activity in the exchange accounts resulted in overall trading losses.”
The late CEO also created accounts under aliases where “unsupported deposits” were used to trade within the platform, resulting in inflated revenue figures, artificial trades with users and ultimately the withdrawal of cryptocurrency, the report said. And “substantial funds” were transferred to Cotten personally and other related parties.
Ernst & Young said it learned from one exchange that Cotten established a margin account and traded various cryptocurrencies “extensively” -- 67,000 individual transactions -- with multiple digital assets that didn’t trade on Quadriga. That account was subject to substantial fees and generated substantial losses.
Cotten also used an offshore exchange, of which 21,501 Bitcoin were deposited into an account in Cotten’s name. Ernst & Young’s investigation suggests that at least some of that Bitcoin came from Quadriga, though it’s unclear exactly how much. The report said it appears Cotten liquidated all but 8 Bitcoin from that account over the course of three years, for the equivalent of C$80 million ($60.6 million).
Ernst & Young also updated the amount owed to QuadrigaCX users, to C$74.1 million in cash and C$140.5 million in cryptocurrency. Court filings from January initially estimated account holders had C$70 million in cash balances and C$190 million in cryptocurrency.
To contact the reporter on this story: Doug Alexander in Toronto at dalexander3@bloomberg.net
To contact the editors responsible for this story: Michael J. Moore at mmoore55@bloomberg.net, ;Jeremy Herron at jherron8@bloomberg.net, Dave Liedtka
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
Trade war risks outweigh gains from stimulus for emerging markets: Fitch
By Tom Arnold
LONDON (Reuters) - Looser monetary policy from major central banks will help relieve some of the pressures felt by emerging markets but U.S.-China trade tensions remain an urgent concern, a senior official at Fitch Ratings said.
Turkey, Russia and South Africa are among those to benefit from a stampede to high-yielding assets in recent days as investors bet the United States Federal Reserve will cut interest rates as early as next month and Mario Draghi hinted of further monetary easing by the European Central Bank (ECB).
Among the big movers, the Russian rouble surged to its highest level since August 2018 while South Africa's 2044 dollar bond reached its highest point since January 2018.
But Fitch managing director Tony Stringer said any positive lift could be short-lived.
"More accommodative monetary policy from the major central banks, including the Fed and ECB, could to some extent mitigate some of the pressures felt by the major emerging markets, but we don't think that will be sufficient to be prevent all the damage that could come from an escalation in trade tensions between the U.S. and China," he said on the sidelines of a conference.
Further policy easing from the Fed was not guaranteed to reignite capital flows to emerging markets, he added, pointing to the fall in capital flows to emerging markets in April and May, even after the Fed adopted a more dovish stance.
"Apart from the trade tensions, other factors that are weighing heavily on emerging markets more generally are the downturn in global manufacturing and investment, and those factors combined in our view will outweigh any benefit you might see from accommodative monetary policy," he said.
(Editing by Mark Heinrich) |
The Terror: Infamy First Trailer: A George Takei-Led Horror of Internment Camps
AMC has released a first official trailer for the second season of its horror anthology series, The Terror : Infamy, proving that we need look no further than our own past to find true terror. Executive produced by Ridley Scott, and created by Alexander Woo and Max Borenstein, The Terror: Infamy sets its sights on a stain on this countrys World War II history: Japanese internment camps. The first minute of footage offers a first look at veteran actor George Takei in one of his first horror roles after a string of comedy appearances of late. The trailer also promises plenty of creepy crawly things, demon possessions, shapeshifting spirits, and various evil ephemera. But is the evil coming from inside the house? The official synopsis reads: Set during World War II, the haunting and suspenseful second season of the horror-infused anthology, The Terror: Infamy, centers on a series of bizarre deaths that haunt a Japanese-American community, and a young mans journey to understand and combat the malevolent entity responsible. Related stories AMC Could Pull Productions from Georgia -- Taking 'The Walking Dead' Franchise With It 'Into the Badlands': Creators Explain Their Plans for 'Deadwood'-esque Spinoff The series stars Derek Mio (Greek) as Chester Nakayama; Kiki Sukezane (Lost in Space) as Yuko, a mysterious woman from Chesters past; Cristina Rodlo (Miss Bala) as Luz, Chesters secret girlfriend; Shingo Usami (Unbroken) as Henry Nakayama, Chesters father; Naoko Mori (Everest) as Asako Nakayama, Chesters mother; Miki Ishikawa (9-1-1) as Amy, a Nakayama family friend; and renowned actor, producer, author and activist Takei (Star Trek) as Yamato-san, a community elder and former fishing captain. The first season of the AMC series received overwhelmingly positive reviews, currently holding a 95% Fresh rating on Rotten Tomatoes. It was an IndieWire Critics Pick when it was released last year, with TV critic Ben Travers writing : The Terror is an exceptional series of surviving in the face of real yet unimaginable horrors, and in blending the two, AMC has one helluva frightfest. Story continues Created by David Kajganich and guided by fellow showrunner and executive producer Soo Hugh (along with E.P. Scott), Season 1 of The Terror also received praise for exceptional performances as well as stunning visual and CGI effects. AMC will premiere The Terror: Infamy on Aug. 12. Check out the chilling first trailer (including an explanation of the title that will have you smacking your head you didnt get it sooner) below. Sign up for Indiewire's Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram . |
What Kind Of Investor Owns Most Of DeepMarkit Corp. (CVE:MKT)?
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The big shareholder groups in DeepMarkit Corp. (CVE:MKT) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.
DeepMarkit is a smaller company with a market capitalization of CA$574k, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions don't own many shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about MKT.
See our latest analysis for DeepMarkit
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
Since institutions own under 5% of DeepMarkit, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. So if the company itself can improve over time, we may well see more institutional buyers in the future. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.
Hedge funds don't have many shares in DeepMarkit. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own a reasonable proportion of DeepMarkit Corp.. Insiders have a CA$75k stake in this CA$574k business. 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 -- mostly retail investors -- own 71% of DeepMarkit . This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.
It seems that Private Companies own 11%, of the MKT stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow for free.
Of coursethis may not be the best stock to buy. So take a peek at thisfreefreelist of interesting companies.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Aurora Cannabis (ACB): Investors Seem to Be Missing the Latin American Opportunity
By Gary Bourgeault
Much of the focus on Aurora Cannabis (ACB) is its world class facilities in Canada, its market-leading international presence, and its focus on higher-margin medical cannabis.
In regard to the international reach of the company, which now has climbed to 24 countries, the market has largely looked at the potential it has in Europe, somewhat ignoring or in some cases, even unaware of the potential the Latin American market has for the company over the long term, which represents a gigantic 650 million people.
To that end Aurora acquired Uruguay-based ICC Labs as a foothold into the Latin American market, making the announcement in September 2018, which initially gave the company a boost, but since then hasn't attracted much attention. Even in its recent earnings report the company didn't mention it.
The primary reason I think the market has ignored it is because the European market will have more of an impact on the company in the near term. It's also why I believe Aurora Cannabis management hasn't been talking about it much, which has resulted in little media coverage.
Latin American cannabis
Aurora paid C$290 million for ICC Labs, and in my view it was well worth it; although I believe the Latin American market will take more time to develop than some of its European counterparts, even though the continent is more liberal in its outlook concerning cannabis than other regions of the world.
Part of that comes from the need to build up various aspects of infrastructure associated with the industry, as well as boost the amount of production capacity to meet demand in the market, along with competing in other markets.
In 2018 the Latin American market was valued at $125 million, and is projected to grow to $12.7 billion by 2028. I think it could be far larger than that.
Medical cannabis has been considered to be the largest segment of that market, but the rapid increase in production capacity in Columbia will probably change the product mix going forward, as it boosts low-cost recreational pot exports over time.
ICC Labs
Uruguay was the first country in the world to legalize recreational pot, and at the time Aurora acquired ICC Labs, it accounted for 70 percent of that market in the country.
Also included with ICC Labs was licenses it held in Columbia for the production of medical cannabis. Aurora can also grow cannabidiol rich hemp for the purpose of developing CBD-based products. This should allow Aurora to produce at a low-cost, potentially winning more share in a market that generates wider margins and better earnings.
As for production capacity, ICC Labs has the capacity to process up to 150,000 kilograms of CBD annually.
Including a 124,000 greenhouse in Colombia and another 1 million sq. ft. facility in Uruguay, it'll have the potential to increase production capacity by another 100,000 kilograms a year.
Taking into account all its existing capacity and facilities under construction, the company could produce up to 450,000 kilograms annually when fully operational. That's a little under 1 million pounds a year.
Last, the company has an agreement in place with Mexico to export cannabidiol products. That represents a market of about 125 million.
Conclusion
Even though ICC Labs has extraordinary potential, I think that it's going to move forward at an incremental pace in contrast to other markets Aurora Cannabis competes in.
While the Latin American market is projected to grow to $12.7 billion by 2028, the actual number, if including exports, is probably going to be much larger. In other words, internal sales may be $12.7 billion, but if including all sales to global markets, it's probably going to be much higher than that.
As for the additional production capacity that accompanies ICC Labs, it's probably going to push Aurora Cannabis to significantly higher than the 625,000 kilograms a year guided for to come in mid-2020.
If, over time, it does in fact approach the 450,000 kilograms a year level, it'll push Aurora Cannabis far beyond its closest competitor on the production side. That's only valuable as global cannabis demand rises. For now, Aurora should have more than enough supply to meet its commitments.
The good news is can expand its production capacity a lot more with existing facilities if it chooses to.
Taking the overall company into account, I think ICC Labs may be the most neglected of its holdings, and the Latin American market not really on the radar of many investors and analysts.
For that reason I believe once production ramps up and exports reach a meaningful level, it could be a major catalyst to the overall performance of Aurora Cannabis.
To read more on the nitty gritty of what’s going on in the rising cannabis industry,click here.
Disclosure:The author is Long Aurora stock.
Read more on ACB:
• Market Delays Can Derail Aurora Cannabis Stock
• Can Aurora Cannabis Stock Set Up for Another Breakout?
• Will Aurora Cannabis Be Impacted by Low-Cost Latin Competitors?
• Aurora Cannabis Stock Gets Caution Flags
• Is 33% Upside Good Enough to Risk Buying Fitbit (FIT) Stock? Deutsche Bank Doesn't Think So
• Deutsche Bank Remains Sidelined on AMD Stock; Here's Why
• Aurora Cannabis (ACB): Buy the Dip or Pump the Brakes?
• Antitrust Investigation Is Not a Major Threat to Alphabet (GOOGL) Stock, Says Top Analyst |
StockBeat - Carnival Sinks on Profit Warning Amid U.S. Ban on Cruises to Cuba
Investing.com – Carnival (NYSE:CCL) sank Thursday after the cruise company cut its profit outlook as the U.S. ban on cruises to Cuba and higher costs weighed on performance.
Carnival said the policy change from the Trump administration will dent earnings by between $0.04 and $0.06 this year while trip cancellations for its Carnival Vista ocean liner will cost $0.08 to $0.10 a share, sending shares more than 9% lower before recovering to a 7.4% loss at 3:35 p.m. ET.
Carnival said it now expects full-year adjusted per-share earnings between $4.25 and $4.35, down from its previous guidance in March of $4.35 to $4.55 and short of Capital IQ's consensus of $4.50.
The cruise company reported earlier in the day that Carnival had canceled the Vista's July 6, 13 and 20 cruises.
"The Carnival Vista has been experiencing an issue affecting its maximum cruising speed," Carnival said, according to media reports. "Unfortunately, we will be unable to operate the above voyages, as it is necessary to remove the ship from service to complete the required repairs."
The warning on profit overshadowedbetter-than-expectedfiscal second-quarter $0.66 a share on revenue of $4.84 billion, prompting Wall Street to turn bearish on shares of the cruise company.
William Blair downgraded Carnival to Market Perform from Outperform on expectations for weaker revenue yields, or revenue per available lower-berth day compared to rivals.
The bank expects the cruise company’s net revenue yields to come in flat, compared to estimates of mid single-digit growth for Royal Caribbean and Norwegian Cruise Line.
The stock is down about 1% for the year.
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Akero Therapeutics IPO Opens Above IPO Price
Akero Therapeutics(NASDAQ:AKRO) shares opened at $16.16 Thursday morning after pricing of 5.75 million shares of common stock at $16.
Akero was founded in January 2017 and focuses on developing transformative treatments for serious metabolic diseases with high unmet medical need, with the accent on non-alcoholic steatohepatitis, or NASH, which currently has no FDA-approved therapies.
Akero's lead candidate AKR-001, an analog of fibroblast growth factor 21, or FGF21, is being evaluated for NASH. FGF21 is a hormone that regulates metabolism of lipids, carbohydrates and proteins and also protects tissues from various forms of stress.
Akero reported a wider loss of $81.71 million for the fiscal year 2018 compared to $4.56 million in 2017. For the three months ended March 2019, the company reported a loss of $5.36 million.
The stock traded around $16.71 per share at time of publication.
Related Links:
Akero Therapeutics IPO: What You Need To Know
IPO Outlook For The Week: Biotechs And A Grocery Outlet
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© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
US STOCKS-S&P 500 hits record high as Fed signals rate cuts
(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
* Financials fall; Energy up most among S&P sectors
* Carnival Corp slides on 2019 profit warning
* Indexes up: Dow 0.68%, S&P 0.59%, Nasdaq 0.59% (Updates prices, adds comments)
By Shreyashi Sanyal
June 20 (Reuters) - The S&P 500 index touched an all-time high on Thursday, after the Federal Reserve indicated 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 Osaka, Japan.
The benchmark S&P 500 index, which has risen 7% so far in June and is on track to recoup its previous month's losses, 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."
Financial stocks dropped 0.42%, while the energy index jumped 2.16%, the most among all 11 major S&P sectors, as oil prices surged over 4% on renewed tensions in the Middle East after Iran shot down a U.S. military drone.
At 11:23 a.m. ET the Dow Jones Industrial Average was up 179.03 points, or 0.68%, at 26,683.03 and the S&P 500 was up 17.35 points, or 0.59%, at 2,943.81.
The Nasdaq Composite was up 46.86 points, or 0.59%, at 8,034.19.
The technology sector rose 1.16%, boosting the S&P 500 by the most, with Oracle Corp leading the charge.
Shares of the business software maker jumped 8.30%, after it forecast current-quarter profit above estimates.
Boeing Co gained 0.83% 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.
Cruise operator Carnival Corp slid 10.22%, 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 about 3% each.
Buoying sentiment further 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 2.92-to-1 ratio on the NYSE and by a 1.62-to-1 ratio on the Nasdaq.
The S&P index recorded 95 new 52-week highs and three new lows, while the Nasdaq recorded 113 new highs and 26 new lows. (Reporting by Shreyashi Sanyal and Aparajita Saxena in Bengaluru; Editing by Sriraj Kalluvila and Arun Koyyur) |
When Can We Expect A Profit From Tandem Diabetes Care, Inc. (NASDAQ:TNDM)?
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Tandem Diabetes Care, Inc.'s (NASDAQ:TNDM): Tandem Diabetes Care, Inc., a medical device company, designs, develops, and commercializes various products for people with insulin-dependent diabetes in the United States. The US$3.9b market-cap company’s loss lessens since it announced a -US$122.6m bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -US$112.9m, as it approaches breakeven. As path to profitability is the topic on TNDM’s investors mind, I’ve decided to gauge market sentiment. In this article, I will touch on the expectations for TNDM’s growth and when analysts expect the company to become profitable.
Check out our latest analysis for Tandem Diabetes Care
According to the 13 industry analysts covering TNDM, the consensus is breakeven is near. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$4.5m in 2021. Therefore, TNDM is expected to breakeven roughly 2 years from today. In order to meet this breakeven date, I calculated the rate at which TNDM must grow year-on-year. It turns out an average annual growth rate of 63% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
I’m not going to go through company-specific developments for TNDM given that this is a high-level summary, though, keep in mind that generally 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 TNDM has no debt on its balance sheet, which is quite unusual for a cash-burning loss-making, growth company, which typically has high debt relative to its equity. TNDM currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
This article is not intended to be a comprehensive analysis on TNDM, so if you are interested in understanding the company at a deeper level, take a look atTNDM’s company page on Simply Wall St. I’ve also compiled a list of key aspects you should look at:
1. Valuation: What is TNDM worth today? Has the future growth potential already been factored into the price? Theintrinsic value infographic in our free research reporthelps visualize whether TNDM 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 Tandem Diabetes Care’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 ESG is a New Trend
We sat down for an exclusive interview with Francis Menassa, JAR Capital.
As European legislation includes more ESG (Environmental, Social, and Governance) or sustainable factors and there is an increasing number of funds on offer, the trend is set to continue. Even a recentWorld Bank reportstated that incorporating ESG into fixed income investments should be part of the overall credit risk analysis and should contribute to more stable financial returns.
Yet, Francis Menassa, Principal, JAR Capital believes that assessing environmental, social and governance factors in fixed income investing is nothing new. Here he answers some key questions about the state of ESG investing in 2019 and tells us a bit about his experience investing in the sector.
So far in 2019, we are seeing a major push for ESG investing strategies. In fact, in the last two years investing inESG fixed income has increased 34%and now accounts for over a third of responsible investing, according to the Global Sustainable Investment Alliance. In Scandinavia, Holland and France, many fund groups incorporate sustainability at the heart of their investing strategy, and there are a growing number of family offices in the US that are switching to sustainability.
The particular interest in fixed income is partly because there have been a number of industry-wide approaches and some major policy developments which are now beginning to take effect.
For example, theEU’s 2014 Non-Financial Reporting Directivewhich was fully implemented at the end of 2017. It will apply to every country on a national level to implement and requires large companies to disclose non-financial and diversity information. This also includes providing information on how they operate and manage social and environmental challenges. The aim is tohelp investors, consumers, policy makers, and other stakeholders to evaluate the non-financial performance of large companies. Ultimately, the Directive encourages European companies to develop a responsible approach to business.
One aspect of this law is that it requires previously unrated or poorly rated companies to increase transparency when issuing debt. As a result, many companies are now actively working to improve corporate governance and channels of communication. Because more companies are working on reducing their environmental and reputational risks and even legal risks, there are now many more opportunities for sustainable fixed income investment.
From our perspective as investors, ESG is a natural selection in risk management. The EU Non-Financial Reporting Directive is just another tool that enables us to conduct more thorough due diligence of a company; the balance sheet, governance structure, and environmental issues to name a few. The better we understand a company, the more we can minimise our risks.
Inevitably, investing in the sustainable high yield bond market is higher risk. It involves a complex analysis of companies’ opaque debt structures. There are also reporting inconsistencies and gaps in accessible information which make it difficult to compare companies.Often, they are completely new to the concept of sustainability ratings and the rating process itself.
However,our investable universe is limited to around 1000 companies. Because we have been investing in this sector for over 15 years, we have been able to develop relationships with our target companies. In some cases, we already invest in their bonds and the companies approach us with further financing needs. In others, our investing approach provides added value.
The European car industry is a good example of where we can add value. In terms of components, most cars are produced by the suppliers and almost 60% are privately held. To begin with, many of the companies that we invested in had no published data and there was very little transparency in their operational structure. Yet we found that most complied to sustainable standards, but their lack of active public engagement meant no sustainability rating which limited their financing options and potentially raised the overall costs of financing. We were able to offer guidance on sustainability standards, resolving problems in resourcing as well as communication procedures and subsequently their ESG ratings improved.
There is undoubtedly a lack of information in this sector. Until recently, incorporating ESG factors into fixed income investment analysis, particularly in high yield, was easier said than done. Unlike the equity space, there have been no ESG credit ratings (rating agencies had little or no access to ESG information) or sustainability indices against which to benchmark performance.
However, we have always assessed environmental, social and corporate governance factors as an integral part of the decision-making process. In the last decade, we have developed our own ratings universe, partnering with ISS-oekom, one of the largest independent rating agencies in the sustainable space. Additionally, we now employ ESG experts to enhance our analysis. Our extensive due diligence has meant that we have had no defaults in any of our funds.
We are now seeing more wide-ranging approaches to high yield debt. Advancements in technology mean that there are more sophisticated methods of data collection and interpretation. We now have a range of benchmarks to draw from as well as highly regarded sustainability standards, both private and governmental. In March 2019, the European Parliament adopted rules under itsSustainable Finance Action Planto require asset managers to use a common reporting standard to disclose how they consider ESG factors and to prevent them from greenwashing.
On a private level, theFNG Label, established in 2015 for sustainable mutual funds provides a transparent standard for funds which pursue a consistent and rigorous sustainability strategy.
In time, integrating sustainability criteria should become a standard part of investment analysis. But we strongly believe that ESG should involve active engagement and dialogue with analysed companies, providing them with incentives to improve their ESG credentials. In the long run, this will benefit both investors and issuers.
Thisarticlewas originally posted on FX Empire
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Why Scholar Rock Is Sinking Today
Shares ofScholar Rock Holding Corporation(NASDAQ: SRRK)had sunk 13.3% lower as of 11:17 a.m. EDT on Thursday. The decline came after the clinical-stage biotech announced the pricing of its latest public stock offering after the market closed on Wednesday.
There are two reasons Scholar Rock's pricing of its stock offering caused its share price to drop. First, any time a company issues new shares it causesdilutionin the value of existing shares. Scholar Rock plans to issue 3 million new shares, which represent roughly 11.5% of its current outstanding shares. Second, Scholar Rock set the price of its stock offering at $15 per share. That's 12.4% lower than the closing share price on Wednesday.
Image source: Getty Images.
That's the bad news for investors. However, there is some good news as well.
Scholar Rock expects to generate gross proceeds of $45 million from the stock offering. The company plans to put that money to good use, including by helping fund clinical development of its experimental spinal muscular atrophy (SMA) drug SRK-015 and its experimental cancer drug SRK-181, as well as other preclinical programs.
Also, the negative effects of stock offerings are usually temporary. After the initial sell-off caused by the dilution and lower offering price, Scholar Rock's stock performance should be driven primarily by how well its pipeline candidates perform in clinical studies.
It's those clinical studies that investors should focus on now. Scholar Rock kicked off aphase 2 clinical studyin May evaluating SRK-015 in treating SMA. The biotech expects to report some preliminary pharmacokinetics and pharmacodynamics data from a subset of patients in this study later this year. It also anticipates announcing interim results in the first half of next year and top-line results in Q4 of 2020.
In addition, Scholar Rock intends to advance its second drug into clinical testing in mid-2020. The company plans to evaluate SRK-181 for the treatment of solid tumors in aphase 1 clinical study.
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UPDATE 5-Ambitious 2050 climate goal relegated to footnote at EU summit
* Majority of EU nations back the goal
* Eastern states worry about economic toll
* EU wants to show leadership at U.N. climate talks (Adds comment from Macron)
By Daphne Psaledakis and Alissa de Carbonnel
BRUSSELS, June 20 (Reuters) - A push by most European Union nations for the world's biggest economic bloc to go carbon-neutral by 2050 was dropped to a footnote at a summit on Thursday after fierce resistance from Poland, the Czech Republic and Hungary.
France and Germany had led efforts for the 28-member EU to lead by example in setting an ambitious new climate goal ahead of U.N. climate talks in September that U.S. President Donald Trump has abandoned.
But unanimity was needed, and last-ditch persuasion efforts in what diplomats described as "impassioned" talks that dragged on for four hours failed to ease fears among the central and eastern European states, including Estonia, that it would hurt economies like theirs dependent on nuclear power and coal.
EU leaders called on the European Investment Bank (EIB) to increase climate funding and acknowledged vast differences in the continent's energy mix, but Poland remained unmoved.
"We need concrete things on the table," Polish Prime Minister Mateusz Morawiecki said. "What additional money could be allotted to Poland so that we do not end up in an offside trap?"
In an unusual move that nevertheless sends a strong signal to businesses, 24 of the EU leaders chose instead to reflect support for the mid-century goal as a footnote in their final statement:
"For a large majority of member states, climate neutrality must be achieved by 2050."
TIME IS RUNNING OUT
Since French President Emmanuel Macron in March launched the push for the EU to absorb as much as it emits by 2050, along with three other nations, support had snowballed, showing the growing political prominence of the fight against global warming.
Addressing the holdouts during the summit, German Chancellor Angela Merkel pointed to months of climate protests by youths that helped propel Green parties to their strongest showing yet in May's European Parliament elections.
Macron said after the summit that the growing support of EU countries for the 2050 target - from four in March to 24 on Thursday - showed the credibility of the EU's engagement with the Paris accord.
"So when we debate, when we advance, we are able to grow the club, we are able to convince, we are able to progress," Macron said.
Although EU diplomats said they still believed the bloc would eventually agree to the goal at a later date, Thursday's summit was the last chance to do so before global climate talks in September at which U.N. negotiators hoped to secure higher pledges to do more to limit warming to 1.5 degrees Celsius.
U.N. Secretary-General Antonio Guterres has called on the bloc to aim for a 55% reduction of greenhouse gases by 2030, far more than the bloc's existing goal.
The 2050 target was widely seen as paving the way for the EU to revise up the nearer-term target - although doing so has far less support as doubts remain over how to pay for the economic shift to low-carbon technology in big employment sectors such as transport, farming and building.
To achieve net-zero emissions, the bloc would have to invest an additional 175 billion to 290 billion euros ($198 billion-327 billion) per year in clean energy technology, according to an EU projection.
On the eve of the summit, Greenpeace activists projected the image of a bomb-shaped earth ready to explode on the facade of the building, warning "time was running out".
"With people on the streets demanding action and warnings from scientists that the window to respond is closing fast, our governments had a chance to lead from the front," Greenpeace EU climate policy adviser Sebastian Mang said.
"They blew it." ($1 = 0.8857 euro) (Reporting by Daphne Psaledakis and Alissa de Carbonnel in Brussels Additional reporting by Gabriela Baczynska, Jan Strupczewski, Sabine Siebold, Andreas Rinke and Jean-Baptiste Vey in Brussels; Jan Lopatka in Prague; Writing by Alissa de Carbonnel Editing by Andrew Cawthorne and Matthew Lewis) |
Federal court: Walmart to pay $138 million over claims that its Brazilian subsidiary paid a "sorceress" to speed permits
ALEXANDRIA, Va (AP) — Federal court: Walmart to pay $138 million over claims that its Brazilian subsidiary paid a "sorceress" to speed permits. |
Dynasty Star Catherine Oxenberg 'Couldnt Stop Sobbing' With Joy After Nxivm Founder's Conviction
When Nxivm founder Keith Raniere was convicted in federal court on Wednesday of sex trafficking charges in connection with the sexually coercive group, Catherine Oxenberg burst into tears of redemption. I couldnt stop sobbing. It was like all of this pent up emotion and I was trying to be quiet and not be disruptive, she tells PEOPLE in an exclusive interview. The actress, whose daughter India joined the New York-based group in 2011 but has since left, adds, Im so grateful to those jurors, I cannot tell you, for seeing through the monster that Keith Raniere is. Raniere had pleaded not guilty on all seven charges he faced, including racketeering and sex trafficking. He will be sentenced in September and could face life in prison. PEOPLE was not immediately able to reach his lawyers. RELATED: How Smallvilles Allison Mack Allegedly Recruited Unwitting Women Into Sexual Pyramid Scheme Matthew Eisman/Getty Prosecutors described Nxivm as a sexual pyramid scheme involving sex slaves, with Raniere at the top. The group has long marketed itself as a group that empowers people and helps them manage emotional trauma, but prosecutors and Oxenberg have said it has a darker side built on coercion and manipulation. Allison Mack | Todd Williamson/Getty Investigators said Raniere, who was known as Vanguard to his followers, occupied the top of a pyramid called DOS, with tiers of female slaves, each of whom could become a master to slaves beneath them. RELATED: Catherine Oxenberg Speaks Out After Founder of Daughters Self-Help Group Is Accused of Sex Slavery Ranieres top lieutenant in the organization was Allison Mack , the actress who starred on Smallville . In April, Mack pleaded guilty to conspiracy and racketeering charges and will be sentenced in September. Oxenberg publicly blew the whistle on Nxivm , which prosecutor Richard Donoghue described in court as a cult-like organization involved in sex trafficking, child pornography, extortion, compelled abortions, branding, degradation and humiliation. Story continues Want to keep up with the latest crime coverage? Click here to get breaking crime news, ongoing trial coverage and details of intriguing unsolved cases in the True Crime Newsletter. She spoke out against the group and her attempts to rescue her daughter, and chronicling her experience in her 2018 memoir, CAPTIVE: A Mothers Crusade to Save Her Daughter From a Terrifying Cult, cowritten by PEOPLE contributor Natasha Stoynoff, which will soon be out in paperback. She describes the verdict to PEOPLE as unbelievable vindication for me. Incredible relief. Closure, finally being able to move forward. RELATED: Woman Says Smallville s Allison Mack Tried Recruiting Her Into Alleged Sex Group With Creepy Emails She said the verdict also represented vindication for these young women who got up there and testified the most vulnerable details of their lives. Exposing these terrible abuses by this man. And the fear that he was going to get away with it yet again. Oxenberg: Raniere Is Sociopath Oxenberg tells PEOPLE that when the verdict was read, Raniere had no expression. And you know, I think thats symptomatic of a sociopath is they lack empathy. No emotion at all. Nothing. Nothing. During the trial, another former Nxivm member testified that Mack allegedly imposed a restrictive diet on India to suit Ranieres sexual desires. Alison was trying to have [India] get down to a certain weight. It was just really hard to watch, sometimes, the former member, a 31-year-old actress identified only as Nicole, said in court, The New York Post reported . Allison Mack | Drew Angerer/Getty The Post reported that previous witnesses described Ranieres alleged preference for his slaves to be skinny, sleep-deprived and compliant. Oxenberg told PEOPLE Macks alleged behavior was horrendous and despicable and confirmed the reports of her daughters restrictive diet. I knew India was on a restricted diet of between 500 to 900 calories, but I had no idea it was down to 500 calories for a year, said Oxenberg. Its so many layers of disgust. When you think it cant get worse, it does. The layers of sadism and cruelty are endless. Strong and Empowered Women In 2018, Oxenberg told PEOPLE India had left NXIVM and was moving forward. She says the trial was eye opening for India and other survivors, showing the way that they were using these girls and setting them up for sex for Keith. And that was this whole plan. And the girls had no idea. None. Catherine Oxenberg | Allison Michael Orenstein Asked how India was faring after escaping the group, Oxenberg says, Pretty amazing. Really quite amazing. And I would say for all of the women whod been through this ordeal.
They are not broken and they will be stronger than they were before. She adds, They will be strong and empowered women as a result of this experience. And deeply vindicated because I think that this is going to be a groundbreaking case as far as redefining coercion, and sex trafficking. I really do. Oxenbergs memoir, CAPTIVE: A Mothers Crusade to Save Her Daughter From a Terrifying Cult, cowritten by PEOPLE contributor Natasha Stoynoff, will soon be out in paperback. |
Top Benefits of MLPs and Related ETFs
This article was originally published on ETFTrends.com. Master limited partnerships (MLPs) and the related exchange traded funds, including the Alerian Energy Infrastructure ETF ( ENFR ) , are often favored destinations for income investors looking for energy exposure, but there are other benefits to this asset class beyond high yields. ENFR acts as a type of hybrid energy infrastructure ETF, which could help investors capture some of the high yields from MLPs but limits the tax hit from solely owning MLPs. A fund like ENFR can be a solid complement or alternative to traditional energy sector strategies like the Energy Select Sector SPDR ( XLE ) . “Both midstream and the integrated majors can be thought of as defensive energy investments but for different reasons,” according to new research from Alerian . “Midstream MLPs and C-Corps are defensive by nature of their business models, collecting a fee for each unit of energy transported, stored, or processed. This limits midstream’s exposure to commodity price fluctuations in terms of cash flows, though prices can impact sentiment.” Perks of the MLP Business Model MLPs primarily deal with the distribution and storage of energy products, so their business model is less reliant on the commodities market since MLPs profit off the quantity of oil and natural gas they are able to move around. Consequently, MLPs have historically shown a weaker correlation to energy prices over longer periods as MLPs act more like energy toll roads, profiting on the volume of oil moving through their pipelines. Comparisons of midstream assets against the IXE, XLE's underlying index, have recently been favorable. “Comparing against the IXE, midstream again stands out for better performance this year and its generous yields,” notes Alerian. “However, the IXE boasts better credit quality based on the weighting of investment grade companies. The IXE has a higher correlation with WTI crude, which one would expect given the weighting towards E&Ps, as well as a higher correlation with the broader market. Midstream screens more favorably based on the Sharpe ratio, which is calculated using total return and goes back eight years based on the availability of IXE total return data.” Story continues And yes, ENFR comes through on yield. Its dividend yield is about 170 basis points higher than XLE's. For more information on master limited partnerships, visit our MLPs category . POPULAR ARTICLES AND RESOURCES FROM ETFTRENDS.COM SPY ETF Quote VOO ETF Quote QQQ ETF Quote VTI ETF Quote JNUG ETF Quote Top 34 Gold ETFs Top 34 Oil ETFs Top 57 Financials ETFs The Secure Act and Retirement Accounts Pet Food IPO Chewy May Put Amazon On Its Heels Mark Cuban: Success Comes From Outworking Everyone A Piece Of Advice From Warren Buffett CNBC’s ETF Edge Panel Discusses Non-Transparent ETFs READ MORE AT ETFTRENDS.COM > |
Have Insiders Been Selling MasTec, Inc. (NYSE:MTZ) Shares This Year?
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares inMasTec, Inc.(NYSE:MTZ).
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
View our latest analysis for MasTec
The Independent Director, Robert Dwyer, made the biggest insider sale in the last 12 months. That single transaction was for US$517k worth of shares at a price of US$51.66 each. So we know that an insider sold shares at around the present share price of US$48.44. While we don't usually like to see insider selling, it's more concerning if the sales take price at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). The only individual insider seller over the last year was Robert Dwyer.
You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that MasTec insiders own 21% of the company, worth about US$775m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check thisfreereport showing analyst forecasts for its future.
Of courseMasTec 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. |
3 Speculative Stocks to Buy and Keep for the Long Term
Today I focus on three high profile stocks whose performances cover the whole spectrum. But long term they all have tremendous upside potential. At one end,Beyond Meat(NASDAQ:BYND) stock is the most loved, up 200% year-to-date. At the other end,Nvidia(NASDAQ:NVDA) cannot catch a break lately. Somewhere off to the side isUber(NYSE:UBER), which is in limbo while it recovers from a controversial botched IPO process.
These are three entirely different bullish thesis, but they will all need the help from the overall market action. Maybe only BYND can defy gravity in falling markets because of its particular situation.
So with that in mind, my view is positive on the macroeconomic conditions. We have full employment in the U.S. and companies are delivering impressive profit and loss statements. Worry warts complain about deteriorating conditions based on the recent reports, but to me, the government data is highly unreliable.
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Government reports are notoriously inaccurate and subject to huge revisions. But even if data continues to worsen into the summer, we know that the Federal Reserve is ready to save the day. Just yesterday, Federal Chairman Jerome Powell reiterated the Fed’s stance on rates. It is done raising them and seven members want to cut rates twice this year.
Clearly, the Fed put is back in and investors see this as a large safety net. Usually this makes it possible to buy-the-dips. Sellers will need new headlines to cause corrections and even then, they are not likely able to sustain them. The default price action absent from headlines is up.
The next hurdle is the G20 meeting coming next week. After a contentious month, we learned recently that the U.S. and China have recommitted to a new round of negotiations.
Presidents Trump and Xi are also tentatively set to meet in Osaka. These discussions are very volatile, but for now, the bulls have the reins unless politicians decide to blow the talks up. So we are likely to meander up into the June 28 event.
• 10 'Buy-and-Hold' Stocks to Own Forever
But the point of today’s write up is to argue for the long-term outcomes of these great stocks and each for its own reason. But starting out on a good note is a plus and that’s why we evaluate the immediate outcome of markets. Moreover, if the meetings yield results, then theS&P 500will make a new all-time high and I bet it would go much higher than most experts’ estimates. With all of that said, here’s a deeper look into why BYND, NVDA and UBER would live up to their huge potential in a rising market.
Source: Shutterstock
BYND stock has become a full-fledged phenomenon. It is making headlines every day. The consensus in the media that it’s definitely overdone and that it’s only rising because of a short squeeze.
But what if it’s not just a technical blip?
The debate over humans being meat eaters or not is ancient. There are solid arguments on both sides. It comes down to the motivation of not eating meat. Some believe it’s healthier, but the more interesting reason is moral. Vegetarians avoid meat to be more humane to the animals. On that front, the incremental upside demand on BYND products will come from the massive group of people who currently eat meat but need a reason to stop. If BYND offers that option to do the right thing and come close in look, feel and taste, hoards will make the switch.
The point is that there is tremendous demand lurking and it’s a matter of how fast Beyond Meat can ramp up production. This is similar to the Cannabis thesis where the companies’ bottleneck is production to meet demand. That’s why pot stocks likeCanopy Growth(NYSE:CGC) andCronos(NASDQQ:CRON) are bid so high over the massive addressable market.
So from an investment perspective, this thesis suggests that the high demand for a replacement product for meat will make BYND stock grow into its current astronomic valuation. Plug your nose and buy it.
Source: Shutterstock
Before Beyond Meat stole the show, Uber was the stock that hogged the headlines. This is the poster child of the unicorns.
Critics say that it remained private for too long and that it lost too much money. There is a strong wave of detractors who even believe UBER will never be profitable. During its last earnings report, the CEO clearly stated otherwise.
The bullish thesis for UBER stock is simple. This is an app that will be on almost every smart phone on the planet. There is very little chance the company fails in its mission. Uber is already disrupting passenger, food and freight deliveries. Recently we also learned that it will launch airborne deliveries, so the sky is literally the limit.
Its most tangible and immediate leap higher in earnings will probably come from the Uber Freight division. Business accounts are usually harder to acquire, but the recurring benefits from them grow faster and they are stickier. This addresses the concerns that investors have from their battle withLyft(NASDAQ:LYFT). Lyft shows no intention of following Uber anywhere else.
The bottom line for UBER stock is that we don’t even have a clue to what the future upside potential will include. So betting against it now is short-sighted.
• 7 Blue-Chip Stocks to Buy for a Noisy Market
I don’t have an exact target for Uber stock since above here, there is nothing but open air. But likeAmazon(NASDAQ:AMZN) andNetflix(NASDAQ:NFLX), this is a stock that is disrupting multiple industries and it will be three digits sooner rather than later.
Source: Shutterstock
Unlike the first two stocks to buy on this list, Nvidia is not bloated. The long-term thesis was already established, but things went wrong as it took a massive detour in October 2018.
The start of its correction was that it had too much love on Wall Street. So now the prism is simple: It rose too fast to its highs of $290 and consensus was too directional. This caused the wave of hate to overshoot the other way and go too low. So admiration turned into disrespect.
Both positions are wrong. Eventually, Wall Street will go back to the middle-of-the-range opinion, which would bring NVDA stock closer to $230 per share. After all, NVDA is a premier technology company that will be a major supplier to all the right technological advancements from AI to self-driving cars.
Nicolas Chahine is the managing director ofSellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room freehere.
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The post3 Speculative Stocks to Buy and Keep for the Long Termappeared first onInvestorPlace. |
Read This Before Buying Myriad Genetics, Inc. (NASDAQ:MYGN) Shares
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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares inMyriad Genetics, Inc.(NASDAQ:MYGN).
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. 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.'
View our latest analysis for Myriad Genetics
Over the last year, we can see that the biggest insider sale was by the , Ralph McDade, for US$61k worth of shares, at about US$31.00 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$24.25. So it may not tell us anything about how insiders feel about the current share price. Ralph McDade was the only individual insider to sell shares in the last twelve months.
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!
For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Myriad Genetics insiders own about US$23m worth of shares. That equates to 1.3% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
It doesn't really mean much that no insider has traded Myriad Genetics shares in the last quarter. We don't take much encouragement from the transactions by Myriad Genetics insiders. But we do like the fact that insiders own a fair chunk of the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check thisfreereport showing analyst forecasts for its future.
But note:Myriad Genetics may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Displaced families suffering subhuman conditions in Ethiopia: Egeland
By Dawit Endeshaw ADDIS ABABA (Reuters) - Displaced families are enduring subhuman conditions in Ethiopia without enough food and shelter, Jan Egeland, secretary general of the Norwegian Refugee Council, said on Thursday. Egeland told Reuters he had seen 3,500 people without food in an abandoned factory, sharing 16 overflowing latrines flooded by torrential rains, during a visit to the southern town of Dilla a day earlier. "These people feel abandoned and I don't blame them," the former Norwegian politician and U.N. official said. There was no immediate comment from the government, which says 2.3 million citizens are displaced inside the country, 1.7 million of them after fleeing conflict. The Geneva-based Internal Displacement Monitoring Centre last month gave a higher figure saying an estimated 3.2 million Ethiopians had fled conflict and drought by April this year. Those - on top of 900,000 refugees, mainly from South Sudan, Somalia and Eritrea - meant the Horn of Africa nation hosted the most displaced people in the world, the center added. Ethiopia's government has not commented on the difference in the figures. "We are all failing, Egeland told Reuters. "The IDPs (internally displaced people) are living totally in subhuman conditions." Egeland said he met one young man on Wednesday who had had his hand cut off at the market by an attacker hostile to his ethnic group. Ethiopia's Prime Minister Abiy Ahmed took power more than a year ago after the unprecedented resignation of his successor following three years of intermittent deadly protests. Abiy has won plaudits for releasing journalists and political prisoners and unbanning political parties. But the country of 100 million people is still hit by bouts of ethnic violence. The United Nations' Ethiopia appeal for this year is $1.31 billion, but it has only received a third of those funds, Egeland said. (Writing by Katharine Houreld) |
Airbus Vows to Challenge the Secret Boeing 737 Deal that Stunned the Paris Air Show
Airbus SE vowed to put up a fight to undo a $24 billion deal landed by rivalBoeingCo. for 737 Max planes that proved to be the sales coup of this year’s Paris Air Show.
Speaking at a final press conference from Le Bourget airfield outside the French capital on Thursday, Airbus sales chief Christian Scherer said the European planemaker never received a request for proposals—a document that formally launches bidding for most major aircraft contracts—from IAG SA, the owner of British Airways.
The secret negotiations between Boeing and IAG led to the biggest surprise of the week-long show: a letter of intent from the carrier to purchase 200 of the Max aircraft, a model that is grounded following two fatal crashes. IAG is currently an Airbus-only narrow-body customer and has said it plans to use the planes for its discount and leisure divisions, including Vueling and Level.
“We are taking the position that we would like to bid for this business,” Scherer told reporters. “IAG is a very good customer. Every one of these airlines are A320 operators. Our intent is to bid.”
The shock announcement came midway through the exhibition and helped Boeing clear some of the gloom surrounding the 737 Max by instilling a measure of confidence in its future.
The Boeing agreement was outlined as a letter of intent, meaning that negotiations over the details will need to be confirmed in the coming months. Airbus Chief Executive Officer Guillaume Faury said he’d like to find a way in before the deal develops into a final contract.
“We’d be very happy to compete when it comes to a tender for this large number of planes,” he said. “We are quite sure we will have an opportunity to apply. And make sure that in the end the best solution prevails for IAG, which is an important customer.”
In many ways, the U.S. planemaker couldn’t have found a better buyer than IAG to endorse the Max, whose future has been clouded as regulators demand fixes to make the plane safer. IAG has proven to be a savvy aircraft buyer and is led by a former 737 pilot, CEO Willie Walsh.
—Boeing’sstunning moment of redemption
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—Listen to our new audio briefing,Fortune500 Daily
Catch up withData Sheet,Fortune‘s daily digest on the business of tech. |
Zion Williamson sued for $100 million
On the eve of the NBA draft, probable No. 1 overall pick Zion Williamson got some unfortunate news. Williamson is being sued for $100 million by a marketing company that says Williamson broke his contract , according to the Associated Press. This continues a back and forth between Williamson, Creative Artists Agency (CAA) and Prime Sports Marketing LLC. Shortly after Williamson declared for the NBA draft, he signed a marketing deal with Prime Sports. Williamson was supposed to remain with the company for five years. Instead, he left the company less than a month later to sign with CAA. Prime Sports threatened to sue, prompting Williamson to take action first. The 18-year-old Williamson sued Prime Sports, arguing its contract was unlawful in North Carolina. In response to that lawsuit, Prime Sports filed a suit against Williamson and CAA for $100 million. Prime Sports is arguing Williamson broke his contract, and that CAA interfered in the process. Williamson, who starred at Duke, is expected to be picked No. 1 overall by the New Orleans Pelicans on Thursday. Given the hype surrounding Williamson — Popeyes is selling an 82-inch box of food to celebrate Williamson being drafted — there’s a lot of money at stake for whatever firm ends up with his marketing rights. ——— Chris Cwik is a writer for Yahoo Sports. Have a tip? Email him at christophercwik@yahoo.com or follow him on Twitter! Follow @Chris_Cwik More from Yahoo Sports: NBA mock draft 5.0: What will Pelicans do? Report: Davis, Lillard to feature in ‘Space Jam 2’ Authorities: Ortiz wasn’t intended target of shooting How Celtics shockingly combusted so quickly |
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