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Here’s What Hedge Funds Think About A. O. Smith Corporation (AOS) It was a rough fourth quarter for many hedge funds, which were naturally unable to overcome the big dip in the broad market, as the S&P 500 fell by about 4.8% during 2018 and average hedge fund losing about 1%. The Russell 2000, composed of smaller companies, performed even worse, trailing the S&P by more than 6 percentage points, as investors fled less-known quantities for safe havens. Luckily hedge funds were shifting their holdings into large-cap stocks. The 20 most popular hedge fund stocks actually generated an average return of 18.7% so far in 2019 and outperformed the S&P 500 ETF by 6.6 percentage points. We are done processing the latest 13f filings and in this article we will study how hedge fund sentiment towards A. O. Smith Corporation (NYSE:AOS) changed during the first quarter. A. O. Smith Corporation (NYSE:AOS)has seen a decrease in enthusiasm from smart money of late.AOSwas in 27 hedge funds' portfolios at the end of the first quarter of 2019. There were 29 hedge funds in our database with AOS positions at the end of the previous quarter. Our calculations also showed that AOS isn't among the30 most popular stocks among hedge funds. In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to. Let's take a look at the fresh hedge fund action encompassing A. O. Smith Corporation (NYSE:AOS). At the end of the first quarter, a total of 27 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -7% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards AOS over the last 15 quarters. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Impax Asset Managementwas the largest shareholder of A. O. Smith Corporation (NYSE:AOS), with a stake worth $206.6 million reported as of the end of March. Trailing Impax Asset Management was Two Sigma Advisors, which amassed a stake valued at $70.5 million. Balyasny Asset Management, Marshall Wace LLP, and Millennium Management were also very fond of the stock, giving the stock large weights in their portfolios. Since A. O. Smith Corporation (NYSE:AOS) has faced a decline in interest from hedge fund managers, we can see that there lies a certain "tier" of hedge funds who sold off their positions entirely last quarter. It's worth mentioning that Robert Joseph Caruso'sSelect Equity Groupsaid goodbye to the largest position of all the hedgies watched by Insider Monkey, totaling an estimated $30.6 million in stock, and Jim Simons's Renaissance Technologies was right behind this move, as the fund dropped about $11.2 million worth. These moves are important to note, as total hedge fund interest fell by 2 funds last quarter. Let's now review hedge fund activity in other stocks similar to A. O. Smith Corporation (NYSE:AOS). We will take a look at National Retail Properties, Inc. (NYSE:NNN), LKQ Corporation (NASDAQ:LKQ), Reinsurance Group of America Inc (NYSE:RGA), and Molina Healthcare, Inc. (NYSE:MOH). All of these stocks' market caps are closest to AOS's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position NNN,12,248443,-3 LKQ,43,1068048,3 RGA,23,409256,-4 MOH,30,1026129,3 Average,27,687969,-0.25 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 27 hedge funds with bullish positions and the average amount invested in these stocks was $688 million. That figure was $475 million in AOS's case. LKQ Corporation (NASDAQ:LKQ) is the most popular stock in this table. On the other hand National Retail Properties, Inc. (NYSE:NNN) is the least popular one with only 12 bullish hedge fund positions. A. O. Smith Corporation (NYSE:AOS) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately AOS wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); AOS investors were disappointed as the stock returned -22.4% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Gaming and Leisure Properties Inc (GLPI) Insider Monkey finished processing more than 738 13F filings submitted by hedge funds and prominent investors. These filings show these funds' portfolio positions as of March 31st, 2019. What do these smart investors think about Gaming and Leisure Properties Inc (NASDAQ:GLPI)? Gaming and Leisure Properties Inc (NASDAQ:GLPI)shares haven't seen a lot of action during the first quarter. Overall, hedge fund sentiment was unchanged. The stock was in 27 hedge funds' portfolios at the end of the first quarter of 2019. At the end of this article we will also compare GLPI to other stocks including Graco Inc. (NYSE:GGG), Black Knight, Inc. (NYSE:BKI), and Jazz Pharmaceuticals Public Limited Company (NASDAQ:JAZZ) to get a better sense of its popularity. Why do we pay any attention at all to hedge fund sentiment? Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. Let's check out the new hedge fund action regarding Gaming and Leisure Properties Inc (NASDAQ:GLPI). At the end of the first quarter, a total of 27 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from the fourth quarter of 2018. On the other hand, there were a total of 27 hedge funds with a bullish position in GLPI a year ago. So, let's review which hedge funds were among the top holders of the stock and which hedge funds were making big moves. Among these funds,Renaissance Technologiesheld the most valuable stake in Gaming and Leisure Properties Inc (NASDAQ:GLPI), which was worth $370.3 million at the end of the first quarter. On the second spot was Gates Capital Management which amassed $115.5 million worth of shares. Moreover, Citadel Investment Group, Cardinal Capital, and Two Sigma Advisors were also bullish on Gaming and Leisure Properties Inc (NASDAQ:GLPI), allocating a large percentage of their portfolios to this stock. Because Gaming and Leisure Properties Inc (NASDAQ:GLPI) has faced falling interest from hedge fund managers, logic holds that there exists a select few fund managers that elected to cut their entire stakes last quarter. It's worth mentioning that Ken Heebner'sCapital Growth Managementcut the biggest stake of the "upper crust" of funds followed by Insider Monkey, comprising about $36.5 million in stock, and Paul Reeder and Edward Shapiro's PAR Capital Management was right behind this move, as the fund cut about $32.5 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience). Let's go over hedge fund activity in other stocks similar to Gaming and Leisure Properties Inc (NASDAQ:GLPI). We will take a look at Graco Inc. (NYSE:GGG), Black Knight, Inc. (NYSE:BKI), Jazz Pharmaceuticals Public Limited Company (NASDAQ:JAZZ), and Booz Allen Hamilton Holding Corporation (NYSE:BAH). All of these stocks' market caps match GLPI's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position GGG,18,180514,0 BKI,40,991316,4 JAZZ,27,772683,-4 BAH,19,230572,-7 Average,26,543771,-1.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $544 million. That figure was $946 million in GLPI's case. Black Knight, Inc. (NYSE:BKI) is the most popular stock in this table. On the other hand Graco Inc. (NYSE:GGG) is the least popular one with only 18 bullish hedge fund positions. Gaming and Leisure Properties Inc (NASDAQ:GLPI) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Hedge funds were also right about betting on GLPI as the stock returned 2.9% during the same period and outperformed the market by an even larger margin. Hedge funds were rewarded for their relative bullishness. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Elton John Has a Message for Struggling LGBTQ Youth: ‘Be Proud of Who You Are’ Elton John isn’t at a loss for words when asked if he has a message for young LGBTQ people who are struggling with their sexuality or gender identity. In an exclusive interview with Variety at last month’s Cannes Film Festival , just hours before the world premiere of his long-in-the-works biopic “ Rocketman ,” John spoke candidly about the “privilege” of being a gay entertainer. Related stories Brandon Flynn on Hollywood Double Standards and Never Actually Coming Out 'My So-Called Life' 25 Years Later: Claire Danes and Wilson Cruz Look Back From 'Tales of the City' to 'Will & Grace,' Queer Show Revivals Reveal TV's Evolution “Just be yourself,” says the legendary singer-songwriter-pianist, dressed in a custom powder blue Gucci suit and matching bedazzled rhinestone glasses. “Don’t let anybody do you down. I’ve been very privileged because I’m in a business that kind of accepts gay people. There are kids that aren’t privileged. They come from poor backgrounds. Their parents don’t understand; religion gives them a hard time.” Long before there was Ellen DeGeneres, “Will & Grace” and “Pose,” there was Elton John . The singer was 29 years old and an international superstar when he told Rolling Stone in 1976 that he was bisexual. But in 1992, at age 45, he was quoted in the same magazine saying he was “quite comfortable being gay.” Now 72, John tells Variety that he was 23 when he actually realized he was gay. “I got off to a very slow start,” he says with a laugh. “I was like the tortoise and the hare, and then suddenly the tortoise overtook the hare, and I made up for lost time.” As “ Rocketman ” shows in harrowing detail, making up for lost time led to a decade-long near fatal drug addiction before John finally got sober 28 years ago. Over his 50-year career in music, he has earned an Oscar, a Tony and multiple Grammys and is in the middle of his retirement tour, Farewell Yellow Brick Road, which is set to end in late 2020. Story continues John, who in 1998 was knighted by Queen Elizabeth, is also an outspoken activist, particularly around HIV and AIDS. In 1986, he teamed up with Dionne Warwick, Gladys Knight and Stevie Wonder to record “That’s What Friends Are For,” with all the profits going to the American Foundation for AIDS Research. Since its start in 1993, his annual Oscar viewing party has raised more than $200 million for the Elton John AIDS Foundation. And then there’s his family. John and his husband, “Rocketman” producer David Furnish , have been together for more than 26 years. They were one of the first couples to register for civil partnership in the U.K. on the same day that the Civil Partnership Act became law. Nine years later, they married on Dec. 21, 2014, just months after same-sex marriage became legal in the U.K. John and Furnish have two sons, Zachary Jackson Levon, 8, and Elijah Joseph Daniel, 6. It’s a far cry from John’s own childhood. His father left the family when John wasn’t even a teenager, and his mother was cold and distant. According to “Rocketman,” she told her son he would never be truly loved because he was gay. “It’s wonderful to be gay. I love being gay. I really do,” says John, whose first and only authorized memoir, “Me,” will be published by Macmillan in October. “And I think I wouldn’t have had the life I’ve had if I hadn’t been gay. And I’m very proud of that. I’m very proud that I can appreciate that.” “If you’re unhappy at home, leave,” John advises. “Don’t let anybody torture you for being gay or for your sexuality.” It’s that pride and his activism that have transformed John into an elder statesman of the LGBTQ community. He’s Yoda wrapped in a rainbow flag. “Be proud of who you are,” John says, continuing his message for young people. “There are so many wonderful diverse people in the world — straight people, gay people [and] transgender people. We’re all God’s kids. People who should know better in places of responsibility [and] attack gay people, transgender people … they claim to be close to God, [but] they couldn’t be further away from God if they tried.” Sign up for Variety’s Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram .
Here’s What Hedge Funds Think About News Corp (NWSA) The 700+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the first quarter, which unveil their equity positions as of March 31. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards News Corp (NASDAQ:NWSA). IsNews Corp (NASDAQ:NWSA)ready to rally soon? Money managers are taking a bearish view. The number of bullish hedge fund positions decreased by 2 recently. Our calculations also showed that nwsa isn't among the30 most popular stocks among hedge funds. Why do we pay any attention at all to hedge fund sentiment? Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. Let's review the key hedge fund action surrounding News Corp (NASDAQ:NWSA). At the end of the first quarter, a total of 21 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -9% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in NWSA over the last 15 quarters. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. Among these funds,Pzena Investment Managementheld the most valuable stake in News Corp (NASDAQ:NWSA), which was worth $274.1 million at the end of the first quarter. On the second spot was International Value Advisers which amassed $108 million worth of shares. Moreover, D E Shaw, AQR Capital Management, and Tensile Capital were also bullish on News Corp (NASDAQ:NWSA), allocating a large percentage of their portfolios to this stock. Seeing as News Corp (NASDAQ:NWSA) has faced falling interest from hedge fund managers, it's easy to see that there lies a certain "tier" of fund managers who sold off their full holdings by the end of the third quarter. Interestingly, Israel Englander'sMillennium Managementsaid goodbye to the largest investment of the "upper crust" of funds watched by Insider Monkey, comprising close to $12.2 million in stock. Jeffrey Talpins's fund,Element Capital Management, also dropped its stock, about $4.4 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 2 funds by the end of the third quarter. Let's check out hedge fund activity in other stocks similar to News Corp (NASDAQ:NWSA). These stocks are Enel Chile S.A. (NYSE:ENIC), Aspen Technology, Inc. (NASDAQ:AZPN), Unum Group (NYSE:UNM), and The Middleby Corporation (NASDAQ:MIDD). All of these stocks' market caps match NWSA's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ENIC,5,31551,-2 AZPN,25,1108955,0 UNM,25,373181,0 MIDD,20,656010,3 Average,18.75,542424,0.25 [/table] View table here if you experience formatting issues. As you can see these stocks had an average of 18.75 hedge funds with bullish positions and the average amount invested in these stocks was $542 million. That figure was $518 million in NWSA's case. Aspen Technology, Inc. (NASDAQ:AZPN) is the most popular stock in this table. On the other hand Enel Chile S.A. (NYSE:ENIC) is the least popular one with only 5 bullish hedge fund positions. News Corp (NASDAQ:NWSA) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately NWSA wasn't nearly as popular as these 20 stocks and hedge funds that were betting on NWSA were disappointed as the stock returned -8% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Hubbell Incorporated (HUBB) We at Insider Monkey have gone over 738 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st. In this article, we look at what those funds think of Hubbell Incorporated (NYSE:HUBB) based on that data. IsHubbell Incorporated (NYSE:HUBB)worth your attention right now? Hedge funds are becoming less confident. The number of long hedge fund positions were trimmed by 3 in recent months. Our calculations also showed that hubb isn't among the30 most popular stocks among hedge funds. At the moment there are a large number of methods investors put to use to analyze publicly traded companies. A duo of the most innovative methods are hedge fund and insider trading sentiment. We have shown that, historically, those who follow the top picks of the best money managers can outclass the market by a very impressive margin (see the details here). Let's analyze the key hedge fund action surrounding Hubbell Incorporated (NYSE:HUBB). At the end of the first quarter, a total of 21 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -13% from the fourth quarter of 2018. By comparison, 28 hedge funds held shares or bullish call options in HUBB a year ago. With hedgies' capital changing hands, there exists an "upper tier" of key hedge fund managers who were upping their holdings considerably (or already accumulated large positions). The largest stake in Hubbell Incorporated (NYSE:HUBB) was held byRoyce & Associates, which reported holding $109.2 million worth of stock at the end of March. It was followed by Impax Asset Management with a $71.2 million position. Other investors bullish on the company included Carlson Capital, Balyasny Asset Management, and Renaissance Technologies. Judging by the fact that Hubbell Incorporated (NYSE:HUBB) has experienced bearish sentiment from the smart money, logic holds that there lies a certain "tier" of fund managers who were dropping their positions entirely heading into Q3. Intriguingly, Phill Gross and Robert Atchinson'sAdage Capital Managementsold off the largest stake of the "upper crust" of funds followed by Insider Monkey, totaling an estimated $20.3 million in stock. Paul Marshall and Ian Wace's fund,Marshall Wace LLP, also sold off its stock, about $4.2 million worth. These transactions are interesting, as total hedge fund interest dropped by 3 funds heading into Q3. Let's also examine hedge fund activity in other stocks - not necessarily in the same industry as Hubbell Incorporated (NYSE:HUBB) but similarly valued. These stocks are LATAM Airlines Group S.A. (NYSE:LTM), Autoliv Inc. (NYSE:ALV), Planet Fitness Inc (NYSE:PLNT), and Donaldson Company, Inc. (NYSE:DCI). This group of stocks' market valuations resemble HUBB's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position LTM,8,21281,0 ALV,13,444882,0 PLNT,25,498649,-5 DCI,16,121565,-3 Average,15.5,271594,-2 [/table] View table here if you experience formatting issues. As you can see these stocks had an average of 15.5 hedge funds with bullish positions and the average amount invested in these stocks was $272 million. That figure was $358 million in HUBB's case. Planet Fitness Inc (NYSE:PLNT) is the most popular stock in this table. On the other hand LATAM Airlines Group S.A. (NYSE:LTM) is the least popular one with only 8 bullish hedge fund positions. Hubbell Incorporated (NYSE:HUBB) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Hedge funds were also right about betting on HUBB, though not to the same extent, as the stock returned 0% during the same time frame and outperformed the market as well. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Our Take On HC2 Holdings, Inc.'s (NYSE:HCHC) CEO Salary Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! In 2014 Phil Falcone was appointed CEO of HC2 Holdings, Inc. (NYSE:HCHC). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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. See our latest analysis for HC2 Holdings At the time of writing our data says that HC2 Holdings, Inc. has a market cap of US$107m, and is paying total annual CEO compensation of US$12m. (This number is for the twelve months until December 2018). Notably, that's an increase of 42% over the year before. We think total compensation is more important but we note that the CEO salary is lower, at US$600k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$452k. Thus we can conclude that Phil Falcone receives more in total compensation than the median of a group of companies in the same market, and of similar size to HC2 Holdings, Inc.. 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. The graphic below shows how CEO compensation at HC2 Holdings has changed from year to year. HC2 Holdings, Inc. has increased its earnings per share (EPS) by an average of 90% a year, over the last three years (using a line of best fit). It achieved revenue growth of 19% over the last year. This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to checkthis free visual report onanalyst forecastsfor future earnings. Given the total loss of 47% over three years, many shareholders in HC2 Holdings, Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously. We compared the total CEO remuneration paid by HC2 Holdings, Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group. Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. So shareholders might not feel great about the fact that CEO pay increased on last year. 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. CEO compensation is one thing, but it is also interesting tocheck if the CEO is buying or selling HC2 Holdings (free visualization of insider trades). 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.
Wall Street ratchets up chances for 'precautionary' Fed rate cut A growing number of Wall Street analysts are banking on theFederal Reservecutting rates at least twice this year — and perhaps as early as July — following the central bank's dovish policy statement on Wednesday. The Fed left the target rate for funds unchanged at 2.25%- 2.5%. Yet Fed Chairman Jerome Powell indicated the central bank was prepared to do whatever was“appropriate to sustain the expansion” as theU.S. economy shows signs of fatigue, and the U.S.-China trade disputedrags on without resolution. The not-so-subtle hint put investors in a buying mood — which sent major stocks on a tear. In Thursday’s trading, the S&P 500 (^GSPC) soared to a record intraday high, while the Dow (^DJI) rallied over 120 points and the Nasdaq (^IXIC) rose more than 30 points. For months, Treasurybond yields have been sending markets a signalthat the economy could be set to turn down — making the Fed Open Market Committee’s (FOMC) message timely. And with Wall Street’s top analysts saying the central bank could act as early as July, here’s how some of them greeted the Fed’s decision: “The dovish tone from the June FOMC meeting was consistent with our expectations and supports our existing call for three 25bp rate cuts this year, with the first coming in July,” wrote Deutsche Bank (DB) analysts in their economic report. “The FOMC statement and presser point to 50 bps in cuts—probably July… Pushing things off past July is clearly possible if we get our forecast. But the shift in sentiment makes July seem more likely,” UBS (UBS) analysts wrote. “Powell was careful to say the committee sees the economy as likely to remain in an expansion phase, boosted by growth of household spending and still-healthy labor market conditions… this has all the hallmarks of precautionary rate cuts,” Barclays’ (BCS) analyst wrote. “After we penciled in cuts last month for the September and December meetings we noted the risks skewed for more cuts and sooner… we are pulling forward our expected cuts to July and September,” wrote JP Morgan (JPM) analysts. “We now expect cuts in July and September, as well as an end to balance sheet runoff in July. Our base case is for moves in 25 [basis point] increments, but a 50bp cut is possible if the news flow disappoints and/or Fed officials feel compelled to get ahead of bond market pricing,” wrote analysts from Goldman Sachs (GS). “The change in the dot plot reinforces our view that the Fed will indeed be cutting rates soon. In that regard, we expect that the FOMC will cut its target range for the fed funds rate 25 bps at its next meeting on July 31,” Wells Fargo (WFC) analysts wrote. “We believe this is largely consistent with our forecast for the Fed to cut a total of 75bp… Our baseline is for the Fed to begin cutting in September… if we get another weak payroll report, disappointing ISM surveys and a bad outcome from the G20, the Fed will likely be inclined to cut in July,” BoFAML (BAC) analysts wrote. Donovan Russo is a writer for Yahoo Finance. Follow him@Donovanxrusso. Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,LinkedIn, andreddit.
Is Hasbro, Inc. (NASDAQ:HAS) At Risk Of Cutting Its Dividend? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Dividend paying stocks like Hasbro, Inc. (NASDAQ:HAS) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. While Hasbro's 2.5% dividend yield is not the highest, we think its lengthy payment history is quite interesting. The company also bought back stock during the year, equivalent to approximately 2.0% of the company's market capitalisation at the time. Some simple research can reduce the risk of buying Hasbro for its dividend - read on to learn more. Explore this interactive chart for our latest analysis on Hasbro! Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Hasbro paid out 90% of its profit as dividends, over the trailing twelve month period. With a payout ratio this high, we'd say its dividend is not well covered by earnings. This may be fine if earnings are growing, but it might not take much of a downturn for the dividend to come under pressure. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Hasbro paid out 106% of its free cash flow last year, which we think is concerning if cash flows do not improve. Cash is slightly more important than profit from a dividend perspective, but given Hasbro's payouts were not well covered by either earnings or cash flow, we would definitely be concerned about the sustainability of this dividend. As Hasbro's dividend was not well covered by earnings, we need to check its balance sheet for signs of financial distress. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. Hasbro has net debt of less than two times its earnings before interest, tax, depreciation, and amortisation (EBITDA), which we think is not too troublesome. Net interest cover can be calculated by dividing earnings before interest and tax (EBIT) by the company's net interest expense. Hasbro has EBIT of 10.38 times its interest expense, which we think is adequate. Consider gettingour latest analysis on Hasbro's financial position here. One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. Hasbro has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. During this period the dividend has been stable, which could imply the business could have relatively consistent earnings power. During the past ten-year period, the first annual payment was US$0.80 in 2009, compared to US$2.72 last year. Dividends per share have grown at approximately 13% per year over this time. It's rare to find a company that has grown its dividends rapidly over ten years and not had any notable cuts, but Hasbro has done it, which we really like. Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. Hasbro has grown its earnings per share at 5.3% per annum over the past five years. Although per-share earnings are growing at a credible rate, virtually all of the income is being paid out as dividends to shareholders. This is okay, but may limit growth in the company's future dividend payments. To summarise, shareholders should always check that Hasbro's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. It's a concern to see that the company paid out such a high percentage of its earnings and cashflow as dividends. Earnings growth has been limited, but we like that the dividend payments have been fairly consistent. With this information in mind, we think Hasbro may not be an ideal dividend stock. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 14 analysts we track are forecasting for Hasbrofor freewith publicanalyst estimates for the company. We have also put together alist of global stocks with a market capitalisation above $1bn and yielding more 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
In warming West, Rio Grande roars back to life, for now By Andrew Hay TAOS, N.M., June 20 (Reuters) - After years of drought, no one in Rio Grande County, Colorado, can remember the last time their namesake river was closed to the public because it was running too high. But after the deepest snowpack in over two decades, topped off by a "bomb cyclone" spring storm in the Rockies, the raging, snowmelt-fed river has been shut to recreation in two Colorado counties. The Rio Grande's revival after one of its lowest years on record has brought relief to Indian pueblos, farmers and water managers along its course from the Colorado Rockies to the Gulf of Mexico. However, the future of the United States' third-longest river, and that of other Southwest rivers, remains clouded by a warming climate. Colorado rafting company owner Joel Condren is looking forward to an epic season this year, following 2018 when he could not open his business because the Rio Grande was too low. This year he has the opposite problem, with the river dangerously high. "Right now we can't fit under the bridges," said Condren, 51, who operates 8200 Mountain Sports in South Fork, Rio Grande County, near the river's San Juan Mountains headwaters. FEAST OR FAMINE The health of the 1,900 mile (3,058 km) Rio Grande reflects broader trends across the U.S. Southwest, where rising temperatures and lower snowpacks since the turn of the century have made droughts more severe. Reduced snowmelt runoff threatens endangered species like the Rio Grande's silvery minnow, starves farmers of water allotted through century-old treaties, and in the case of Arizona's Lake Mead, threatens water shortages in California, which relies heavily on the reservoir. Migrants have long crossed the river, whose course forms much of the U.S.-Mexico border. Its swollen flows have led to a spike in rescues and drownings during the current surge of Central American families entering the United States from Mexico, where it is known as the Rio Bravo or "fierce river." The river has a "feast or famine" cycle, with a wet year typically helping it recover from dry periods. Strong precipitation and unusually low temperatures this year have boosted soil moisture and pulled a vast swathe of the region, straddling Arizona, Utah, Colorado and New Mexico, from extreme or exceptional drought, according to the U.S. Drought Monitor, a U.S. government map showing the intensity of drought across the country. But it would take years of similar snowfall to recharge reservoirs brought to near-record lows. "The long term, decadal-scale drought conditions are not necessarily over," said David Gutzler, professor of earth and planetary sciences at the University of New Mexico. A BLIP? Having fallen to 3% of capacity in 2018, New Mexico's Elephant Butte Reservoir may hit around 30% in a couple of weeks, before being drained for irrigation, said U.S. Bureau of Reclamation water operations supervisor Carolyn Donnelly. The last time the Rio Grande-fed reservoir was full was in the mid 1990s. "Until we get repeated years of high flow, it's difficult to build up a storage pool," said Donnelly, whose agency manages dozens of reservoirs across the U.S. West. Driving lower snowpacks and rainfall has been an average temperature rise of 2 degrees Fahrenheit in the region over the last 50 years. Temperatures are expected to keep rising over the course of this century. How high they will go depends on policy decisions about fossil fuel emissions, said Gutzler. For now, hydrologists like Tony Anderson are enjoying the wetter conditions after documenting low-moisture levels and high temperatures that sparked some of Colorado's worst ever wildfires in 2018. "There's been an incredible hydrological recovery since January," said Anderson, with the National Weather Service in Pueblo, Colorado. "This could very well just be a blip in the long dry stretch we've been in." (Reporting by Andrew Hay in Taos, New Mexico; Editing by Phil Berlowitz)
Why Hasbro, Inc. (NASDAQ:HAS) Could Be Worth Watching Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we're going to take a look at the well-established Hasbro, Inc. (NASDAQ:HAS). The company's stock saw a significant share price rise of over 20% in the past couple of months on the NASDAQGS. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Today I will analyse the most recent data on Hasbro’s outlook and valuation to see if the opportunity still exists. See our latest analysis for Hasbro According to my valuation model, Hasbro seems to be fairly priced at around 18.78% above my intrinsic value, which means if you buy Hasbro today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is $90.36, there’s only an insignificant downside when the price falls to its real value. Although, there may be an opportunity to buy in the future. This is because Hasbro’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity. 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. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Hasbro’s earnings over the next few years are expected to increase by 81%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder?HAS’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 track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value? Are you a potential investor?If you’ve been keeping an eye on HAS, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect 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 Hasbro. You can find everything you need to know about Hasbro inthe latest infographic research report. If you are no longer interested in Hasbro, 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.
Ripple CEO: Facebook Libra Cryptocurrency Push Makes Me Happy Ripple CEO Brad Garlinghouse is adamant that Facebook’s unveiling of its Libra cryptocurrency will lead to big business for his banking software and cryptocurrency startup. “This is going to be a record week for Ripple,” Garlinghouse gushed Thursday duringFortune’sBrainstorm Finance conferencein Montauk, N.Y. Garlinghouse said it was a “fact” thatFacebook’s Libra announcementhas caused more banks to seriously consider using the company’s xCurrent banking payment software and associated XRP cryptocurrency to assist with transferring money across borders. “[It] has absolutely catalyzed contract activity,” Garlinghouse said. “This has been a call to action.” Facebook’s plans to eventually debut a cryptocurrency for its billions of users—for use in making payments on its various online networks such as Messenger and WhatsApp—is akin to the social networking giant saying “we don’t needWestern Unionanymore,” the Ripple executive explained. Now big banks are likely to consider switching from the traditional SWIFT software used for cross-border payments in favor of newer alternatives, he said. “I will send a case of champagne to David Marcus the guy who runs Libra,” Garlinghouse said of Facebook’s blockchain chief. The executive also discussedRipple’s big partnershipwith MoneyGram that involves Ripple purchasing an 8%-to-10% stake in the money transfer firm. Although the deal caused MoneyGram’s shares to skyrocket 168%, it had little effect on the XRP cryptocurrency, of which Ripple maintains a vast horde. Garlinghouse attributed the lack of movement in XRP’s value to a lot of “bullshit” and “a lot of noise” in the cryptocurrency and related blockchain category. “I think it’s really hard for people in these economies to say what is real and what is noise.” He said “it was a big deal for Ripple,” and overtime, people will believe it was “bigger deal for the cryptocurrency markets overall.” Many unspecified companies use the term blockchain “as frankly catnip for investors, for marketing.” Ripple, on the hand, is focused on very specific use case, he contends. “It is around transaction banking and liquidity management,” he said. —Brainstorm Finance 2019: Watch the livestreamof the inaugural conference —Bank of America CEO: “We want acashless society” —Tala CEO: HowFacebook’s Libra cryptocurrencycan help companies scale —Charles Schwab CEO: Actually, we’rekilling it with millennials —Listen to our new audio briefing,Fortune500 Daily Sign up forThe Ledger, a weekly newsletter on the intersection of technology and finance.
Trump should stop bragging about the stock market What have you done for me lately? That’s what voters want to know when politicians run for reelection. And President Trump’s boasts about stock market gains under his watch are growing very dated. Trump has bragged more than 60 times about the performance of the stock market since his election in 2016. Heposted a celebratory tweeton June 20, when the S&P 500 index closed at a new high. The day before, hebragged, “since Election Day 2016, Stocks up almost 50%.” Trump’s not wrong. But almost all of the gains in the stock market since his election came in the first 14 months. From Nov. 9, 2016, through Jan. 26, 2018, the S&P 500 index rose 34%. Since then, the S&P has risen just 2.5%. On an annualized basis, stocks have returned just 1.8% during the last 17 months—roughly equal to inflation, for no real gain at all. Trump calculates stock market gains since his election using the Dow Jones average, which is a much smaller sample than the S&P and generates better numbers for him. Between Election Day 2016 and Jan. 26, 2018, the Dow gained 45%. But since then, the Dow is up by just 2.7%, essentially the same as the S&P. By either measure, stocks have gone sideways for the last year and a half. Through last November, the performance of the stock market was a winner for Trump on theYahoo Finance Trumponomics Report Card, where he ranked second on stocks compared with six prior presidents. But Trump has now fallen to fifth, behind Presidents Obama, Clinton, George H.W. Bush and Reagan. Trump himself is responsible for some of the market’s weak performance during the last 17 months, largely because of his trade wars with China and other countries. The tariffs Trump has imposed take about $9 billion per month out of the economy, according to theNew York Federal Reserve. That’s $831 per U.S. household on an annualized basis. There are further costs to U.S. exporters facing retaliatory tariffs from trading partners. Business investment andhiring are slowingasCEOs increasingly worrythattrade tensionscould trigger arecession. Stocks rose after theFederal Reserve signaledon June 19 that it might be more willing tocut interest rates. That’s what Trump wants—looser monetary policy that might boost markets. But if the Fed cuts rates, it will be due to worries about a weakening economy, which doesn’t augur a stock-market rally. Investors seem to expect a breakthrough on trade when Trump meets with President Xi of China during a meeting of global leaders in Japan in late June. But those talks have been at an impasse because China won’t do what the United States wants. It’sunlikely Trump will personally persuade Xito make those concessions. If there’s no progress, Trump has promisedmore tariffsthat will start tohit consumers directly in the wallet. Trump may believe he can juice the market himself when needed, by calling off his trade war with China or announcing some new policy investors will love. Perhaps. But the president’s ability to control markets and the economy is overrated. Investors are nervous for good reason, and a 10-year rally in stocks feels tired. If Trump is still bragging about the 2017 stock market a year from now, voters won’t buy it. Confidential tip line:rickjnewman@yahoo.com.Encrypted communication available. Click here toget Rick’s stories by email. Read more: Markets are still getting the Trump trade war wrong Meet the 2020 presidential candidates How China could meddle in the 2020 election Elizabeth Warren’s best and worst economic ideas Medicare for all won’t work. This might Rick Newman is the author of four books, including “Rebounders: How Winners Pivot from Setback to Success.” Follow him on Twitter:@rickjnewman Read the latest financial and business news from Yahoo Finance
Apple recalls certain older MacBook Pro units (Reuters) - Apple Inc said on Thursday it would recall a limited number of 15-inch MacBook Pro units as their batteries are susceptible to overheating and pose a "fire safety risk". The units were sold between September 2015 and February 2017 and can be identified by their product serial number, said the company in a statement http://pdf.reuters.com/htmlnews/htmlnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20190620:nBw3712Nza. Apple, which has asked customers to stop using the affected MacBook Pro units, said the recall does not affect any other units or Mac notebooks. In the past, Samsung Electronics Co Ltd scrapped its Galaxy Note 7, less than two months since its launch, after the phones caught fire due to battery explosion. (Reporting by Sayanti Chakraborty in Bengaluru; Editing by Shinjini Ganguli)
Vape pen explosion shatters 17-year-old boy's jaw: It looked 'like a close-range gunshot wound' A Nevada teenager was hospitalized after his vape pen exploded in his mouth, leaving him with injuries consistent with "a close-range gunshot wound." Austin Adams, now 18, asked his mother, 45-year-old Kailani Burton, to buy him a vape kit in March 2018 to help him quit smoking, a request which she agreed to, according to a case study published Wednesday in theNew England Journal of Medicine. Adams used the device — made by a company called VGOD — for about a month until one day it exploded in his mouth while he was smoking, shattering his jaw, breaking several of his teeth and leaving him with severe burns to his lips and face. "Austin came in with his hand up to his mouth," Burton toldNBC News. "He was in shock and unable to speak." Burton had to drive her wounded son, who was 17 at the time, five hours from their rural town of Ely, Nev., to the nearest hospital capable of treating his injury, which was Primary Children's Hospital in Salt Lake City, Utah. Dr. Katie Russell, the trauma medical director at Primary Children's Hospital who co-authored the case published in the New England Journal of Medicine, said she had never seen an injury like Adams' before. "I had no idea that a vape pen could cause this major of an injury because it takes some serious force to break your jaw," she remarked. Dr. Jonathan Skiro, a pediatric ear, nose and throat surgeon who treated Adams, told theWashington Postthat the teen's injuries resembled "a close-range gunshot wound." "The tissue kind of got vaporized," he recalled. Photos of the injury: Dr. Russel said she wanted to share the case in order to educate the public, especially children and their parents, about the dangers of electronic vaping devices. "I don't think we've adequately educated the public about the consequences," she said. "As a pediatric surgeon, I'm really focusing on children, and I think that there are millions of children that have access to these devices." Adams underwent multiple surgeries to fix his wounds, including having titanium plates placed in his jaw bone, and has since recovered. His mother said she hopes the incident will have parents reconsider allowing their children to use e-cigarettes. "I want parents to know how dangerous it is for their kids," Burton said. "It could've killed him. It could've been worse." Burton is certainly not misguided in her concern. In February, a Texas man identified as 24-year-old William Eric Brown died after avaping device he was smoking explodedin the parking lot of a vape supply store, severing his carotid artery. Brown is the second person in the U.S. known to have died due to an exploding e-cigarette. The first was a Florida man who perished in a house fire started by one of the devices in May 2018,NBC Newsreports.
Could Facebook's Crypto Plans Trigger an Antitrust Probe? Facebook(NASDAQ: FB)this week announced that it was forming a consortium to create a new, open-source cryptocurrency called Libra. The group includes payment companies likeVisa,Mastercard, andPayPal, as well as tech companies likeUber,Lyft, andSpotify. Facebook won't control the consortium, which could have as many as 100 members. Instead, it will be led by a nonprofit association in which all members will have an equal vote. The value of the Libra will be pinned to stable fiat currencies to reduce market volatility and speculation -- two key issues that have hindered the wider adoption of cryptocurrencies as mediums with which to make ordinary payments. It plans to launch Libra in the first half of 2020. Image source: Getty Images. The consortium believes that making Libra a "global cryptocurrency" could solve payment issues for the 1.7 billion people worldwide who lack bank accounts. It also believes that Libra payments will be faster and cheaper than bank-to-bank fund transfers. Facebook won't profit directly from the development of Libra, but it launched a new subsidiary, Calibra, to represent it in the consortium and develop a digital wallet for the currency. Facebook's announcement wasn't particularly surprising since the companyhad been makingmoves in the cryptocurrency space since last year. However, it immediately triggered bipartisan calls for regulatory hearings in Congress and could push the company closer to an antitrust probe. U.S. Rep. Maxine Waters (D-California), who chairs the House Financial Services Committee, requested 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." The committee's ranking Republican member, U.S. Rep. Patrick McHenry (R-North Carolina), expressed similar concerns. "We know there are many open questions as to the scope and scale of the project and how it will conform to our global financial regulatory framework," he wrote. "It is incumbent upon us as policymakers to understand Project Libra. We need to go beyond the rumors and speculations and provide a forum to assess this project and its potential unprecedented impact on the global financial system." It's unclear if Facebook will agree to a hearing, but rejecting the request could spark an antitrust probe from the Federal Trade Commission. The FTC recently announced that it would oversee investigations into Facebook, but it hasn't made any moves against the social networking giant yet. Facebook's core platform serves 2.38 billion monthly active users and 1.56 billion daily active users worldwide. More than 2.1 billion people use at least one of its apps -- Facebook, Instagram, WhatsApp, or Messenger -- on a daily basis. Image source: Getty Images. Facebook generates 99% of its revenue from online ads. That business is highly sensitive to economic headwinds, and its use of targeted ads raises red flags with privacy and security experts. Therefore, the company needs to diversify into new markets. Mobile payments and e-commerce services would fit naturally into its family of apps. Facebook has already taken a few steps into these markets, offering integrated payments in Messenger, WhatsApp, and Instagram; shoppable posts and in-app checkouts on Instagram; and live shopping videos on Facebook Live -- but its footprint in those businesses remains relatively small. Libra and Calibra could tie together Facebook's thus-far fragmented efforts. It could give out free Libra coins to early adopters, offer them as loyalty points for buying products or even use them to pay users to view its ads. It could also sell ads at discounts to companies that pay with Libra, or offer rewards to merchants that accept the digital currency from customers. The growth of that ecosystem could unite Facebook users across different countries, eliminate barriers to cross-border sales, and lower the barriers between its core apps. These efforts would help it lock in users in developing countries -- which it's already trying to do with its internet-beaming drones and "zero-rated" apps (which don't count toward a users' mobile data caps). Irecently statedthat it could be tough for the FTC to build a case against Facebook for three reasons: 1. It's not the largest online ad platform in America; 2. It still faces meaningful rivals in the social media space; 3. It's not employing unfair tactics (like undercutting rivals or subsidizing companies) to crush the competition. Facebook's attempt to launch a global currency raises concerns since nearly a third of the world's population interacts with it every month. But Facebook could easily argue that it won't own Libra, other companies plan to use it, and it will be an open-source cryptocurrency available to anyone. Even if Mark Zuckerberg does show up for a Congressional hearing about Libra, I doubt it will give the FTC enough ammo to launch an antitrust probe. 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 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.Leo Sunowns shares of Amazon and Facebook. The Motley Fool owns shares of and recommends Amazon, Facebook, Mastercard, PayPal Holdings, and Visa. The Motley Fool recommends Uber Technologies. The Motley Fool has adisclosure policy.
Ethereum Classic’s Next Crypto Code Upgrade Set for September In a public call Thursday, Ethereum classic developers recommitted to releasing a system-wide upgrade, or hard fork, to the blockchain’s main network in September. The targeted block number for the so-called Atlantis activation is 8,772,000, which is expected to hit at roughly 12:00 UTC on Sept. 17. After a disagreementin Mayabout the contents of the Atlantis upgrade, developers agreed last Thursday about the 10 Ethereum Improvement Proposals (EIPs) set for inclusion in what will be the blockchain network’s first hard fork in over a year. Related:Meet Alternateth: A ‘Friendly Fork’ of the Ethereum Blockchain Atlantis, paired with a later upgrade called Agharta, is intended to boost chain interoperability between the ethereum classic and ethereum networks. Starting with a bundle of EIPs activated on the ethereum blockchain back in 2017, Atlantis is the first step towards ensuring that the migration of decentralized applications (dapps) from either chain is smooth and seamless. However, today’s decision to recommit to a hard fork activation date in mid-September was not reached without a fair amount of controversy and debate between developers. Ethereum classic is by far the most infamous and long-running competitor to the ethereum blockchain. Createdin 2016,ethereum classic is essentially a version of the ethereum blockchain that did not restore stolen funds back to users following a major code exploit in the DAO – a now-defunct smart-contract-based funding vehicle. While ethereum classic doesn’t come close to matching the near$30 billionvaluation of the ethereum blockchain, it is one of the top 20 performing cryptocurrencies in the world by market capitalization. Related:Ethereum Classic to Test Code for ‘Atlantis’ Upgrade This Month What’s more, ethereum classic developers are now working towards updating the network to resemble a feature set that mimics the ethereum blockchain more closely. Earlier this month, San Francisco-based startup Ethereum Classic Labs announcedin a blog postits intention to implement Atlantis on the ethereum classic mainnet by July 1 instead of the previously agreed upon activation date for September. Ethereum Classic Labs maintains the most popular software client implementation of ethereum classic, called Classic Geth. The announcement of a July 1 hard fork activation date was reportedly pushed as a result of strong sentiment from miners and cryptocurrency exchanges in Asia wanting to see the Atlantis upgrade sooner than September. “People in Asia are eager for this hard fork,” said Asia community manager for the Ethereum Classic Cooperative, Christian Xu, duringa developer callon Thursday. “In each of our articles, we say that Atlantis will happen on July 1. We did a lot of meetups around cities in China. Even more than 20 cities, we have visited.” In light of the communication that went out for a July 1 hard fork, ethereum classic developers reached consensus that same day to speed-up testing for the Atlantis upgrade. Given a faster testing timeline,certain community membersnoted that mainnet activation of the upgrade could also be bumped up and executed a month earlier than originally planned. However, since then, other community members including Tang and Roy Zou – founder of blockchain research startup Gödel Labs – have accused Xu of falsifying claims about the ethereum classic community in Asia. “We asked them about Atlantis. We got the normal ‘don’t care’ response,” Tang told CoinDesk. “But several exchanges/miners also said that they’re not aware of this before. That makes me feel suspicious.” Both Tang and Zou have insisted there’s no pressure from the ethereum classic Asia community to speed up a hard fork activation date, while Xumaintainsthe support is unrelenting for a faster launch date in August. Last week, members of Ethereum Classic Labs, including CEO Terry Culver, were resistant to the idea of delaying an August activation of Atlantis. “I strongly disagree,” Culver said on the call last Thursday. “We can’t subscribe to that schedule. We stick to the schedule that we originally agreed upon.” Since then, Culver and the broader Ethereum Classic Labs team have come around to the idea after further discussion with the community. Yesterday, the team releaseda public blog postto affirm the new hard fork roadmap. “We look forward to our continued cooperation with the ETC community,” the blog post reads. “ETC Labs will work jointly with all developers and teams to successfully complete the hard fork, making ETC stronger.” Now, with rough consensus from the entire ethereuem classic community, today’s call affirmed the official “accepted” status of the Atlantis hard fork and its delayed mainnet activation date to mid-September. “We can move forward with [Atlantis] then and start preparing clients,” concluded ethereum classic developer “soc1c”during Thursday’s call. ETC Labs event image via Twitter • Privacy Crypto Grin’s First Hard Fork Planned for July • Ethereum Classic May Delay Upcoming Hard Fork ‘Atlantis’
Here's How P/E Ratios Can Help Us Understand Hanmi Financial Corporation (NASDAQ:HAFC) Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). To keep it practical, we'll show how Hanmi Financial Corporation's (NASDAQ:HAFC) P/E ratio could help you assess the value on offer. Looking at earnings over the last twelve months,Hanmi Financial has a P/E ratio of 11.82. That corresponds to an earnings yield of approximately 8.5%. See our latest analysis for Hanmi Financial Theformula for P/Eis: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Hanmi Financial: P/E of 11.82 = $21.47 ÷ $1.82 (Based on the trailing twelve months to March 2019.) A higher P/E ratio means that buyers have to paya higher pricefor each $1 the company has earned over the last year. That isn't a good or a bad thing on its own, but a high P/E means that buyers have a higher opinion of the business's prospects, relative to stocks with a lower P/E. Generally speaking the rate of earnings growth has a profound impact on a company's P/E multiple. When earnings grow, the 'E' increases, over time. That means even if the current P/E is high, it will reduce over time if the share price stays flat. A lower P/E should indicate the stock is cheap relative to others -- and that may attract buyers. Hanmi Financial's earnings per share grew by -5.3% in the last twelve months. And it has bolstered its earnings per share by 7.2% per year over the last five years. One good way to get a quick read on what market participants expect of a company is to look at its P/E ratio. The image below shows that Hanmi Financial has a P/E ratio that is roughly in line with the banks industry average (12.7). Its P/E ratio suggests that Hanmi Financial shareholders think that in the future it will perform about the same as other companies in its industry classification. If the company has better than average prospects, then the market might be underestimating it. Further research into factors such asmanagement tenure, could help you form your own view on whether that is likely. One drawback of using a P/E ratio is that it considers market capitalization, but not the balance sheet. That means it doesn't take debt or cash into account. Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings. 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. Hanmi Financial has net cash of US$52m. That should lead to a higher P/E than if it did have debt, because its strong balance sheets gives it more options. Hanmi Financial has a P/E of 11.8. That's below the average in the US market, which is 17.9. Recent earnings growth wasn't bad. And the healthy balance sheet means the company can sustain growth while the P/E suggests shareholders don't think it will. Given analysts are expecting further growth, one might have expected a higher P/E ratio.That may be worth further research. Investors should be looking to buy stocks that the market is wrong about. If it is underestimating a company, investors can make money by buying and holding the shares until the market corrects itself. So thisfreereport on the analyst consensus forecastscould help you make amaster moveon this stock. 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.
Over-use of smartphones may be causing ‘horn-like’ growths in young people Growths of up to 3cm have been found on the skulls of up to 40 per cent of young people - USC The over-use of smartphones and hand-held devices like games consoles may be causing ‘horn-like’ growths on the back of the skulls of young people, scientists have warned. Researchers at the University of the Sunshine Coast (USC) in Queensland, Australia, took x-rays of 218 people aged between 18 and 30-years-old and found that four in 10 had developed a bony lump of up to 3cm, just above the top of the neck. A second study of 1,000 people found the strange growths were larger and more common with young adults that with the older population, suggesting they are a relatively recent phenomenon. Dr David Shahar, who was completing his PhD at USC at the time of the study, said the bony growths were once exclusive to older patients, resulting from the slumping that comes with age. The growths are thought to be caused by strain on the neck ligaments and tendons Credit: USC But he was surprised to find so many growths in younger people. Testing including MRI scans and blood testing ruled out the possibility that the growths were the result of genetic factors or inflammation. Instead the researchers believe they are linked to stress on the neck ligaments and tendons caused by the head being tilted down for extended periods. “We hypothesise that the sustained increase load at that muscle attachment is due to the weight of the head shifting forward with the use of modern technologies for long periods of time,” said Dr Shahar. “Shifting the head forwards results in the transfer of the head’s weight from the bones of the spine to the muscles at the back of the neck and head. “The increased load prompts remodelling on both the tendon and the bony ends of the attachment. The tendon’s footprint on the bone becomes wider to distribute the load on a larger surface area of the bone.” Scientists believe that constant tilting of the head could be responsible Credit: David Paul Morris Bloomberg The growths always occur at a spot on the skull called the external occipital protuberance (EOP), a little bump on the bottom of the occipital bone, a large plate at the lower back side of the head, It is where some of the neck ligaments and muscles join and such areas are prone to forming growths when muscles are under stress. Story continues Dr Shahar said the findings offered a warning about “the early and silent development of bone and joint damage due to poor posture” and highlighted the need for prevention intervention through posture modification when using hand-held technologies. “This is evidence that musculoskeletal degenerative processes can start and progress silently from an early age,” added Dr Shahar. “These findings were surprising because typically they take years to develop and are more likely to be seen in the ageing population. “It is important to understand that, in most cases, bone spurs measure a few single millimetres and yet we found projections of 10 to 30 millimetres in the studied young population.” Some of the growths were larger than people in their 50s Credit: USC The researchers found that being male increased an individual's chances of having bony growth by more than five-fold. But they believe that it could be corrected by posture exercises and are now developing a programme for schools which could prevent the growths Dr Sayers, who was Dr Shahar’s supervisor for the study, said the pair are still collaborating on research with plans to develop resources to help avoid the problem, particularly for school children. Co-author Associate Professor Mark Sayers: “The thing is that the bump is not the problem, the bump is a sign of sustained terrible posture, which can be corrected quite simply.” He recommended using specially contoured pillows or do exercises that involved lifting the upper chest. The research was published in the journals Scientific Reports and the Journal of Anatomy . Want the best of The Telegraph direct to your email and WhatsApp? Sign up to our free twice-daily Front Page newsletter and new audio briefings .
Could Granite Oil Corp.'s (TSE:GXO) Investor Composition Influence The Stock Price? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Every investor in Granite Oil Corp. (TSE:GXO) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. 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. With a market capitalization of CA$27m, Granite Oil is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have not yet purchased much of the company. We can zoom in on the different ownership groups, to learn more about GXO. See our latest analysis for Granite Oil Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. Since institutions own under 5% of Granite Oil, 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. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most. Our data indicates that hedge funds own 16% of Granite Oil. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage. The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. We can see that insiders own shares in Granite Oil Corp.. As individuals, the insiders collectively own CA$2.5m worth of the CA$27m company. Some would say this shows alignment of interests between shareholders and the board, though I generally prefer to see bigger insider holdings. But it might be worth checkingif those insiders have been selling. The general public, mostly retail investors, hold a substantial 71% stake in GXO, suggesting it is a fairly popular stock. With this size of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to decline an acquisition or merger that may not improve profitability. While it is well worth considering the different groups that own a company, there are other factors that are even more important. I like to dive deeperinto how a company has performed in the past. You can 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.
IOTA to Enter a New Partnership to Track Potentially Fatal Food Allergens With DLT Non-profitblockchainorganizationIOTAFoundation has teamed up with digitalfoodsafety management firmPrimorityto track food allergens via blockchain, IOTAtweetedon June 20. The newpartnershipaims to reduce risks associated with potentially fatal food allergens, targeting 220 million people with food allergy worldwide, as IOTA noted in the tweet. The collaboration includes the development of a prototype of an application that would enable consumers to check food products for allergens, particularly those that go under usual radars for a number of reasons, including cases when products share production lines with allergen-containing products, according to ablog postby IOTA. Specifically, the application will be based on IOTA’s immutable distributed ledger protocolTangle, and integrated with Primority’s 3iVerify platform, which will enable the information collected from manufacturers to be automatically shared on IOTA’s Tangle. As such, the application will reportedly allow consumers to access a number of details about food products by scanning a barcode on the app. The shared information would include tracking of raw materials used and their suppliers, as well as a review of food production processes. As IOTA stressed in the announcement, consumers will be able to access the data “without sharing any personal, sensitive information, and without owning anycryptocurrency.” Recently, Cointelegraphreportedon collaboration betweenAmericanseafood trade association National Fisheries Institute (NFI) andIBM’sblockchain-basedsupply chainsolution Food Trust to trace seafood species. In April, research firm Gartnerpredictedthat as much as 20% of the top 10 global grocery suppliers will run using blockchain technology by 2025. • Microsoft to Collaborate With Icertis in Enhancing Blockchain-Based Contractual Offering • 44% of European Healthcare Organizations Have Never Heard of Blockchain: IDC Survey • Blockchain Genomics Firm, Merck’s EMD Serono Sign Anonymized Data Sharing Agreement • Tracking Drugs on Blockchain: How Significant Is Walmart and IBM's New Collaboration?
Is Coty Inc (COTY) A Good Stock To Buy? The Insider Monkey team has completed processing the quarterly 13F filings for the March quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Coty Inc (NYSE:COTY). Coty Inc (NYSE:COTY)investors should be aware of an increase in enthusiasm from smart money lately.COTYwas in 24 hedge funds' portfolios at the end of March. There were 19 hedge funds in our database with COTY holdings at the end of the previous quarter. Our calculations also showed that coty isn't among the30 most popular stocks among hedge funds. So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio. We're going to review the latest hedge fund action surrounding Coty Inc (NYSE:COTY). Heading into the second quarter of 2019, a total of 24 of the hedge funds tracked by Insider Monkey were long this stock, a change of 26% from the previous quarter. The graph below displays the number of hedge funds with bullish position in COTY over the last 15 quarters. With the smart money's capital changing hands, there exists an "upper tier" of noteworthy hedge fund managers who were adding to their holdings considerably (or already accumulated large positions). More specifically,Millennium Managementwas the largest shareholder of Coty Inc (NYSE:COTY), with a stake worth $463 million reported as of the end of March. Trailing Millennium Management was Empyrean Capital Partners, which amassed a stake valued at $51.8 million. Diamond Hill Capital, Alyeska Investment Group, and Millennium Management were also very fond of the stock, giving the stock large weights in their portfolios. As industrywide interest jumped, key hedge funds have been driving this bullishness.Empyrean Capital Partners, managed by Michael A. Price and Amos Meron, established the biggest position in Coty Inc (NYSE:COTY). Empyrean Capital Partners had $51.8 million invested in the company at the end of the quarter. Anand Parekh'sAlyeska Investment Groupalso initiated a $26.1 million position during the quarter. The following funds were also among the new COTY investors: Israel Englander'sMillennium Management, Andrew Weiss'sWeiss Asset Management, and Andrew Hahn'sUrsa Fund Management. Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Coty Inc (NYSE:COTY) but similarly valued. We will take a look at Huntington Ingalls Industries Inc (NYSE:HII), OGE Energy Corp. (NYSE:OGE), American Financial Group, Inc. (NYSE:AFG), and Teledyne Technologies Incorporated (NYSE:TDY). This group of stocks' market valuations are closest to COTY's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position HII,31,708221,4 OGE,17,265837,1 AFG,30,316813,1 TDY,28,596871,8 Average,26.5,471936,3.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 26.5 hedge funds with bullish positions and the average amount invested in these stocks was $472 million. That figure was $689 million in COTY's case. Huntington Ingalls Industries Inc (NYSE:HII) is the most popular stock in this table. On the other hand OGE Energy Corp. (NYSE:OGE) is the least popular one with only 17 bullish hedge fund positions. Coty Inc (NYSE:COTY) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. A small number of hedge funds were also right about betting on COTY as the stock returned 9.3% during the same time frame and outperformed the market by an even larger margin. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
What to Expect When Paychex Reports Earnings Payroll, human resources, and employee services providerPaychex(NASDAQ: PAYX)reports on the final quarter of its fiscal 2019 year on June 26 before the markets open for trading. Will the company be able to maintain its phenomenal stock ascent of 37% year to date? Below, let's review significant items that will influence investors' reactions when Paychex issues its financial statements next Wednesday. Paychex completed its $1.2 billion acquisition of Oasis Outsourcing, the nation's largest PEO (professional employer organization), in late December 2018. To make its earnings projections a little easier on investors, Paychex's fiscal 2019 outlook excludes the impacts of Oasis on revenue and earnings. The company's guidance calls for year-over-year revenue growth of 4% in the management solutions segment, growth of 18% to 20% in the PEO and insurances services segment, and growth of interest on funds held for clients of 20% to 25%. This equates to an overall year-over-year revenue improvement of 6% to 7%. Barring an unexpected fourth-quarter stumble, Paychex shouldn't have a problem meeting this target, as it recorded top-line expansion of 10% through the first three quarters of fiscal 2019. Moreover, in the company's third-quarterearnings conference call, management provided a ballpark fourth-quarter revenue growth estimate of 9%, so executives' confidence on the revenue front remains high. As for earnings, the company projects full-year improvement of roughly 4% in net income and diluted earnings per share (EPS) over fiscal 2018 benchmarks of $933.7 million and $2.58, respectively. Again, these targets are well within reach, since through the first nine months of the year, Paychex has recorded $804 million in net income and $2.22 in diluted EPS. Image source: Getty Images. One of the factors driving Paychex's shares higher is the company's improving operating leverage. As Paychex has bulked up its top linethrough both organic growth and acquisitions, it's maintained rich profit margins: Through three quarters of the current fiscal year, the company achieved anoperating marginof nearly 37%. This high level of operating profitability resulted in a net profit margin of 28%, and, as CFO Efrain Rivera pointed out on last quarter's earnings call, it enabled a formidable 42%return on equityover the last 12 months. Shareholders can expect that management will discuss strategies for margin improvement in the coming fiscal year on next week's earnings call. Much of this conversation will likely revolve around Paychex's investments in neuro-linguistic programming, or NLP. Paychex has created a platform that combines NLP with artificial intelligence (AI) to automate some of its customer-service function via chatbots. While the use of chatbots is an exploratory field for many large corporations seeking to improve customer service, it's especially relevant for a company like Paychex, which offers communication-intensive services like payroll processing. Automating the answering of customer questions on payroll and other human capital management (HCM) tasks translates into higher efficiency and tangible margin improvement for Paychex. And as CFO Rivera and CEO Martin Mucci both observed last quarter, the availability of this technology also helps to accelerate sales. In both Paychex's earnings release and earnings conference call next week, shareholders will hone in on guidance for the coming fiscal year. Management has already provided an informal preliminary framework for 2020. This includes the expectation that the management solutions segment will again post year-over-year revenue growth of 4%. Including Oasis sales, the PEO and insurances services segment is slated to notch top-line expansion of 30% to 35% through roughly the midpoint of the fiscal year, when the acquisition will reach its first anniversary. Finally, operating margin is once again expected to land in the 37% to 38% range. Investors will receive tightened estimates on both revenue and earnings when Paychex provides a formal fiscal 2020 outlook alongside earnings next week. 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 Asit Sharmahas 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.
Here is What Hedge Funds Think About Invesco Ltd. (IVZ) Before putting in our own effort and resources into finding a good investment, we can quickly utilize hedge fund expertise to give us a quick glimpse of whether that stock could make for a good addition to our portfolios. The odds are not exactly stacked in investors' favor when it comes to beating the market, as evidenced by the fact that less than 49% of the stocks in the S&P 500 did so during the second quarter. The stats were even worse in recent years when most of the advances in the market were due to large gains by FAANG stocks. However, one bright side for individual investors was the strong performance of hedge funds' top consensus picks. This year hedge funds' top 20 stock picks outperformed the S&P 500 Index by 6.6 percentage points through May 30th. Thus, we can see that the tireless research and efforts of hedge funds to identify winning stocks can work to our advantage when we know how to use the data. While not all of their picks will be winners, our odds are much better following their best stock picks than trying to go it alone. Invesco Ltd. (NYSE:IVZ)shares haven't seen a lot of action during the first quarter. Overall, hedge fund sentiment was unchanged. The stock was in 24 hedge funds' portfolios at the end of March. At the end of this article we will also compare IVZ to other stocks including Robert Half International Inc. (NYSE:RHI), PulteGroup, Inc. (NYSE:PHM), and Hyatt Hotels Corporation (NYSE:H) to get a better sense of its popularity. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Let's take a glance at the recent hedge fund action encompassing Invesco Ltd. (NYSE:IVZ). At the end of the first quarter, a total of 24 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from one quarter earlier. On the other hand, there were a total of 24 hedge funds with a bullish position in IVZ a year ago. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. The largest stake in Invesco Ltd. (NYSE:IVZ) was held byPzena Investment Management, which reported holding $51.1 million worth of stock at the end of March. It was followed by Select Equity Group with a $49.6 million position. Other investors bullish on the company included Arrowstreet Capital, Renaissance Technologies, and Two Sigma Advisors. Since Invesco Ltd. (NYSE:IVZ) has faced falling interest from the entirety of the hedge funds we track, we can see that there exists a select few funds that slashed their full holdings heading into Q3. Interestingly, Ray Dalio'sBridgewater Associatessaid goodbye to the biggest position of the 700 funds watched by Insider Monkey, comprising about $32.8 million in stock. Ravi Chopra's fund,Azora Capital, also said goodbye to its stock, about $15.8 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience). Let's check out hedge fund activity in other stocks similar to Invesco Ltd. (NYSE:IVZ). We will take a look at Robert Half International Inc. (NYSE:RHI), PulteGroup, Inc. (NYSE:PHM), Hyatt Hotels Corporation (NYSE:H), and Kilroy Realty Corp (NYSE:KRC). All of these stocks' market caps are closest to IVZ's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position RHI,25,642582,-1 PHM,25,739765,1 H,24,761564,-1 KRC,11,140109,-2 Average,21.25,571005,-0.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 21.25 hedge funds with bullish positions and the average amount invested in these stocks was $571 million. That figure was $173 million in IVZ's case. Robert Half International Inc. (NYSE:RHI) is the most popular stock in this table. On the other hand Kilroy Realty Corp (NYSE:KRC) is the least popular one with only 11 bullish hedge fund positions. Invesco Ltd. (NYSE:IVZ) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Hedge funds were also right about betting on IVZ as the stock returned 7.1% during the same period and outperformed the market by an even larger margin. Hedge funds were rewarded for their relative bullishness. Disclosure: None. This article was originally published atInsider Monkey. 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Wilderness Society sues Trump administration over mine rules MINNEAPOLIS (AP) — The Wilderness Society is suing the Trump administration to try to force the release of documents on its decision to lift restrictions on mining upstream from the Boundary Waters Canoe Area Wilderness in northern Minnesota. The Trump administration last year canceled a proposed 20-year ban on mining in the Boundary Waters watershed and an associated environmental study that were ordered in the final weeks of the Obama administration. Last month, it renewed the mineral rights leases for the proposed Twin Metals copper-nickel mine near Ely. The Wilderness Society says in its lawsuit filed Thursday in federal court in Washington that federal agencies have failed for months to respond to its requests under the Freedom of Information Act for the documents. The Interior Department says it can't comment on ongoing litigation. View comments
Here’s What Hedge Funds Think About Exelixis, Inc. (EXEL) Many investors, including Paul Tudor Jones or Stan Druckenmiller, have beensayingbefore the Q4 market crash that the stock market is overvalued due to a low interest rate environment that leads to companies swapping their equity for debt and focusing mostly on short-term performance such as beating the quarterly earnings estimates. In the first quarter, most investors recovered all of their Q4 losses as sentiment shifted and optimism dominated the US China trade negotiations. Nevertheless, many of the stocks that delivered strong returns in the first quarter still sport strong fundamentals and their gains were more related to the general market sentiment rather than their individual performance and hedge funds kept their bullish stance. In this article we will find out how hedge fund sentiment to Exelixis, Inc. (NASDAQ:EXEL) changed recently. Hedge fund interest inExelixis, Inc. (NASDAQ:EXEL)shares was flat at the end of last quarter. This is usually a negative indicator. At the end of this article we will also compare EXEL to other stocks including Mobile TeleSystems Public Joint Stock Company. (NYSE:MBT), Zillow Group Inc (NASDAQ:Z), and Tripadvisor Inc (NASDAQ:TRIP) to get a better sense of its popularity. In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to. Let's take a glance at the key hedge fund action regarding Exelixis, Inc. (NASDAQ:EXEL). Heading into the second quarter of 2019, a total of 24 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from the previous quarter. By comparison, 29 hedge funds held shares or bullish call options in EXEL a year ago. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves. When looking at the institutional investors followed by Insider Monkey,AQR Capital Management, managed by Cliff Asness, holds the number one position in Exelixis, Inc. (NASDAQ:EXEL). AQR Capital Management has a $377.3 million position in the stock, comprising 0.4% of its 13F portfolio. Sitting at the No. 2 spot is Jim Simons ofRenaissance Technologies, with a $227.7 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Remaining peers that hold long positions comprise Thomas Steyer'sFarallon Capital, Samuel Isaly'sOrbiMed Advisorsand Panayotis Takis Sparaggis'sAlkeon Capital Management. Since Exelixis, Inc. (NASDAQ:EXEL) has witnessed falling interest from the entirety of the hedge funds we track, it's easy to see that there were a few hedge funds that decided to sell off their entire stakes last quarter. At the top of the heap, Mitchell Blutt'sConsonance Capital Managementdumped the largest investment of the "upper crust" of funds watched by Insider Monkey, comprising close to $130.7 million in stock. Kris Jenner, Gordon Bussard, Graham McPhail's fund,Rock Springs Capital Management, also said goodbye to its stock, about $12.2 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience). Let's check out hedge fund activity in other stocks similar to Exelixis, Inc. (NASDAQ:EXEL). We will take a look at Mobile TeleSystems OJSC (NYSE:MBT), Zillow Group Inc (NASDAQ:Z), Tripadvisor Inc (NASDAQ:TRIP), and Columbia Sportswear Company (NASDAQ:COLM). All of these stocks' market caps are closest to EXEL's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position MBT,13,321821,1 Z,33,623335,10 TRIP,27,1354971,-2 COLM,32,359364,8 Average,26.25,664873,4.25 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 26.25 hedge funds with bullish positions and the average amount invested in these stocks was $665 million. That figure was $788 million in EXEL's case. Zillow Group Inc (NASDAQ:Z) is the most popular stock in this table. On the other hand Mobile TeleSystems Public Joint Stock Company. (NYSE:MBT) is the least popular one with only 13 bullish hedge fund positions. Exelixis, Inc. (NASDAQ:EXEL) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately EXEL wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); EXEL investors were disappointed as the stock returned -16.1% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Charles River Laboratories International Inc. (CRL) A Good Stock To Buy? Does Charles River Laboratories International Inc. (NYSE:CRL) represent a good buying opportunity at the moment? Let’s quickly check the hedge fund interest towards the company. Hedge fund firms constantly search out bright intellectuals and highly-experienced employees and throw away millions of dollars on satellite photos and other research activities, so it is no wonder why they tend to generate millions in profits each year. It is also true that some hedge fund players fail inconceivably on some occasions, but net net their stock picks have been generating superior risk-adjusted returns on average over the years. Charles River Laboratories International Inc. (NYSE:CRL)was in 24 hedge funds' portfolios at the end of March. CRL investors should be aware of a decrease in hedge fund interest recently. There were 28 hedge funds in our database with CRL holdings at the end of the previous quarter. Our calculations also showed that crl isn't among the30 most popular stocks among hedge funds. So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio. [caption id="attachment_30621" align="aligncenter" width="487"] Cliff Asness of AQR Capital Management[/caption] Let's take a look at the new hedge fund action encompassing Charles River Laboratories International Inc. (NYSE:CRL). At Q1's end, a total of 24 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -14% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in CRL over the last 15 quarters. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. Among these funds,AQR Capital Managementheld the most valuable stake in Charles River Laboratories International Inc. (NYSE:CRL), which was worth $301 million at the end of the first quarter. On the second spot was Renaissance Technologies which amassed $273.9 million worth of shares. Moreover, Ariel Investments, Millennium Management, and Fisher Asset Management were also bullish on Charles River Laboratories International Inc. (NYSE:CRL), allocating a large percentage of their portfolios to this stock. Since Charles River Laboratories International Inc. (NYSE:CRL) has witnessed bearish sentiment from the smart money, logic holds that there were a few funds who were dropping their entire stakes heading into Q3. At the top of the heap, Steve Cohen'sPoint72 Asset Managementdropped the biggest stake of the 700 funds tracked by Insider Monkey, totaling an estimated $34.8 million in call options, and Israel Englander's Millennium Management was right behind this move, as the fund dumped about $4 million worth. These bearish behaviors are interesting, as total hedge fund interest was cut by 4 funds heading into Q3. Let's now take a look at hedge fund activity in other stocks similar to Charles River Laboratories International Inc. (NYSE:CRL). These stocks are The Madison Square Garden Company (NYSE:MSG), East West Bancorp, Inc. (NASDAQ:EWBC), CEMEX, S.A.B. de C.V. (NYSE:CX), and Qurate Retail, Inc. (NASDAQ:QRTEA). All of these stocks' market caps are closest to CRL's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position MSG,52,1778621,6 EWBC,29,437635,2 CX,15,90996,5 QRTEA,33,725955,-2 Average,32.25,758302,2.75 [/table] View table here if you experience formatting issues. As you can see these stocks had an average of 32.25 hedge funds with bullish positions and the average amount invested in these stocks was $758 million. That figure was $994 million in CRL's case. The Madison Square Garden Company (NYSE:MSG) is the most popular stock in this table. On the other hand CEMEX, S.A.B. de C.V. (NYSE:CX) is the least popular one with only 15 bullish hedge fund positions. Charles River Laboratories International Inc. (NYSE:CRL) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately CRL wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); CRL investors were disappointed as the stock returned -13.5% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Teradyne, Inc. (TER) A Good Stock To Buy? "The end to the U.S. Government shutdown, reports of progress on China-U.S. trade talks, and the Federal Reserve’s confirmation that it did not plan further interest rate hikes in 2019 allayed investor fears and drove U.S. markets substantially higher in the first quarter of the year. Global markets followed suit pretty much across the board delivering what some market participants described as a “V-shaped” recovery," This is how Evermore Global Value summarized the first quarter in itsinvestor letter. We pay attention to what hedge funds are doing in a particular stock before considering a potential investment because it works for us. So let’s take a glance at the smart money sentiment towards one of the stocks hedge funds invest in. Teradyne, Inc. (NASDAQ:TER)investors should pay attention to a decrease in activity from the world's largest hedge funds recently. Our calculations also showed that ter isn't among the30 most popular stocks among hedge funds. In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to. We're going to take a look at the key hedge fund action encompassing Teradyne, Inc. (NASDAQ:TER). At the end of the first quarter, a total of 24 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -4% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards TER over the last 15 quarters. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Renaissance Technologieswas the largest shareholder of Teradyne, Inc. (NASDAQ:TER), with a stake worth $163.3 million reported as of the end of March. Trailing Renaissance Technologies was Alkeon Capital Management, which amassed a stake valued at $102 million. Two Sigma Advisors, Citadel Investment Group, and Millennium Management were also very fond of the stock, giving the stock large weights in their portfolios. Seeing as Teradyne, Inc. (NASDAQ:TER) has experienced a decline in interest from the aggregate hedge fund industry, it's safe to say that there exists a select few hedge funds who sold off their entire stakes heading into Q3. It's worth mentioning that Chuck Royce'sRoyce & Associatesdropped the largest investment of the 700 funds watched by Insider Monkey, worth about $36.7 million in stock, and Joshua Friedman and Mitchell Julis's Canyon Capital Advisors was right behind this move, as the fund cut about $23.1 million worth. These transactions are important to note, as total hedge fund interest was cut by 1 funds heading into Q3. Let's now review hedge fund activity in other stocks - not necessarily in the same industry as Teradyne, Inc. (NASDAQ:TER) but similarly valued. These stocks are Alaska Air Group, Inc. (NYSE:ALK), Capri Holdings Limited (NYSE:CPRI), Douglas Emmett, Inc. (NYSE:DEI), and Nordstrom, Inc. (NYSE:JWN). All of these stocks' market caps are closest to TER's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ALK,20,466021,-12 CPRI,37,1222168,4 DEI,14,363321,2 JWN,26,283069,3 Average,24.25,583645,-0.75 [/table] View table here if you experience formatting issues. As you can see these stocks had an average of 24.25 hedge funds with bullish positions and the average amount invested in these stocks was $584 million. That figure was $564 million in TER's case. Capri Holdings Limited (NYSE:CPRI) is the most popular stock in this table. On the other hand Douglas Emmett, Inc. (NYSE:DEI) is the least popular one with only 14 bullish hedge fund positions. Teradyne, Inc. (NASDAQ:TER) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. A small number of hedge funds were also right about betting on TER as the stock returned 7% during the same time frame and outperformed the market by an even larger margin. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here is What Hedge Funds Think About Encompass Health Corporation (EHC) Billionaire hedge fund managers such as David Abrams, Steve Cohen and Stan Druckenmiller can generate millions or even billions of dollars every year by pinning down high-potential small-cap stocks and pouring cash into these candidates. Small-cap stocks are overlooked by most investors, brokerage houses, and financial services hubs, while the unlimited research abilities of the big players within the hedge fund industry can easily identify the undervalued and high-potential stocks that reside the ignored corners of equity markets. There are numerous small-cap stocks that have turned out to be great winners, which is one of the main reasons the Insider Monkey team pays close attention to the hedge fund activity in relation to these stocks. Encompass Health Corporation (NYSE:EHC)shareholders have witnessed a decrease in hedge fund sentiment of late. Our calculations also showed that ehc isn't among the30 most popular stocks among hedge funds. In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to. Let's take a look at the latest hedge fund action regarding Encompass Health Corporation (NYSE:EHC). At Q1's end, a total of 24 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -20% from the previous quarter. By comparison, 19 hedge funds held shares or bullish call options in EHC a year ago. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves. Among these funds,Renaissance Technologiesheld the most valuable stake in Encompass Health Corporation (NYSE:EHC), which was worth $130.7 million at the end of the first quarter. On the second spot was D E Shaw which amassed $53 million worth of shares. Moreover, Rock Springs Capital Management, Two Sigma Advisors, and Millennium Management were also bullish on Encompass Health Corporation (NYSE:EHC), allocating a large percentage of their portfolios to this stock. Seeing as Encompass Health Corporation (NYSE:EHC) has experienced declining sentiment from hedge fund managers, it's easy to see that there exists a select few fund managers who sold off their entire stakes by the end of the third quarter. It's worth mentioning that Vishal Saluja and Pham Quang'sEndurant Capital Managementcut the biggest stake of the 700 funds tracked by Insider Monkey, worth close to $5.3 million in stock, and Anand Parekh's Alyeska Investment Group was right behind this move, as the fund dumped about $1.9 million worth. These moves are interesting, as total hedge fund interest was cut by 6 funds by the end of the third quarter. Let's go over hedge fund activity in other stocks - not necessarily in the same industry as Encompass Health Corporation (NYSE:EHC) but similarly valued. We will take a look at EPR Properties (NYSE:EPR), First American Financial Corp (NYSE:FAF), HUYA Inc. (NYSE:HUYA), and Brookfield Renewable Partners L.P. (NYSE:BEP). This group of stocks' market values resemble EHC's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position EPR,17,136803,-5 FAF,30,679005,-3 HUYA,21,307858,5 BEP,3,2816,0 Average,17.75,281621,-0.75 [/table] View table here if you experience formatting issues. As you can see these stocks had an average of 17.75 hedge funds with bullish positions and the average amount invested in these stocks was $282 million. That figure was $465 million in EHC's case. First American Financial Corp (NYSE:FAF) is the most popular stock in this table. On the other hand Brookfield Renewable Partners L.P. (NYSE:BEP) is the least popular one with only 3 bullish hedge fund positions. Encompass Health Corporation (NYSE:EHC) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Hedge funds were also right about betting on EHC, though not to the same extent, as the stock returned 1.6% during the same time frame and outperformed the market as well. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Senate Votes to Block Arms Sales to Saudi Arabia—But Trump Can Still Veto The Senate has voted to block the sales of arms to Saudi Arabia following months of controversy surrounding the murder of formerWashington Postjournalist Jamal Khashoggi. However, President Donald Trump is expected to veto the measure, in line with the administration’s relationship with Riyadh. The vote of 53-45 meant some Republicans showed a rare moment of not supporting the White House after Trump’s decision last month to bypass the Congressional review process and complete more than $8 billion in arms sales in the form of precision guided munitions, other bombs and ammunition, and aircraft maintenance support to Saudi Arabia, the United Arab Emirates, and others. The number of votes prevents the president from using his emergency authority from completing the sales but fell short of the 67 votes to prevent a veto. Still, those in Congress looking to curb Trump’s foreign policy powers could consider this progress since two bills meant to stop the Trump administration from being able to sell arms to Bahrain and Qatar failed late last week after being introduced by Republican Rand Paul. “We are told that because ofIran’s threat, the U.S. must accept selling arms to anyone who opposes Iran,” Paul said. Tensions between Washington and Tehran continue to rise after the Trump administration decided not to honor its commitment to the six-party Iran nuclear deal, signed by predecessor Barack Obama in 2015. The latest incident saw the Iranian Revolutionary Guard shoot down a U.S. surveillance drone over the Strait of Hormuz, a move Trump initially called a “big mistake” on Twitter, but later told media gathered in the Oval Office that it was “a general or somebody” being “loose and stupid” who shot it down. “They are carrying a significant amount of equity to protect U.S. interests and U.S. persons, and it is incumbent upon us to stand shoulder to shoulder with our partners, especially when they are on the front line for our interests,” assistant secretary of state for political-military Affairs Clarke Cooper said during a teleconference with reporters. Critics of the administration’s Middle East policy, seemingly centered on a close financially beneficial relationship through arms sales, cite Khashoggi’s October 2018 murder at the at the hands of 15 government agents who had flown to the Saudi Arabian consulate in Istanbul, Turkey, for that purpose. The following month, the CIA ruled the journalist’s death was ordered by Saudi Crown PrinceMohammed bin Salmanand a recentUnited Nations reportsaid there was corroborating evidence to support that. The arms up for sale are largely made by U.S.-basedRaytheonCorporation, whose former executive Mark Esper was just nominated for secretary of defense by Trump. —2020Democratic primary debates: Everything you need to know —The campaign finance power behindTrump impeachment efforts —Not every state is restrictingabortion rights—some are expanding them —Richard Nixon‘s “Western White House” is back on the market—at a discount —Trump administration to use former Japanese internment camp to housemigrant children
Endangered rhinos ready to be sent from Europe to Rwanda DVUR KRALOVE, Czech Republic (AP) — Five critically endangered eastern black rhinos from wildlife parks in three European countries are ready to be transported back to their natural habitat in Rwanda, where the entire rhino population was wiped out during the genocide in the 1990s. Officials from the Czech Republic's Dvur Kralove zoo said Thursday that the three female and two male rhinos have been slowly trained to get used to custom-made transport boxes to take them Sunday to Akagera National Park in eastern Rwanda, which is now considered safe for rhinos. Their journey will mark the biggest single transport of rhinos from Europe to Africa. Transporting them won't be easy and the animals will have to be tranquilized several times during the trip. The rhinos weigh between 850 and 1,150 kilograms (1,874 and 2,535 pounds) The rhinos first met in November when the three already at the Dvur Kralove zoo were joined by one from Flamingo Land in Britain and one from Ree Park Safari in Denmark. "Even though they have been well prepared, you know it is still a long trip, it is stressful, it is stressful for me, it is probably stressful for them," said Pete Morkel, an internationally recognized veterinarian from Zimbabwe and expert on rhino relocations. "It is not easy moving black rhino, they are explosive animals, they can get unhappy very quickly. So you have to keep your finger on the pulse and see what happens and respond accordingly," Morkel said. When they get to Rwanda, the rhinos will undergo a lengthy process of adaption before they will be allowed to roam freely and join 18 eastern black rhinos that were transported to the park from South Africa in 2017. More than 500,000 people were killed in the genocide in Rwanda in 1994. The conflict also devastated the entire population of lions there. Rwanda's ambassador to Berlin, Igor Cesar, described the transport as "historic" and recognition for his country's efforts to restore its wildlife diversity. African rhinos remain under intense pressure from poachers who kill them to meet demand for their horns in illegal markets, primarily in Vietnam and China. There are only a few hundred of the eastern black subspecies remaining in the world.
Here’s What Hedge Funds Think About Oshkosh Corporation (OSK) The Insider Monkey team has completed processing the quarterly 13F filings for the March quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Oshkosh Corporation (NYSE:OSK). IsOshkosh Corporation (NYSE:OSK)going to take off soon? The smart money is taking a pessimistic view. The number of bullish hedge fund bets were cut by 5 lately. Our calculations also showed that osk isn't among the30 most popular stocks among hedge funds.OSKwas in 24 hedge funds' portfolios at the end of the first quarter of 2019. There were 29 hedge funds in our database with OSK positions at the end of the previous quarter. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. Let's take a glance at the fresh hedge fund action encompassing Oshkosh Corporation (NYSE:OSK). At the end of the first quarter, a total of 24 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -17% from one quarter earlier. By comparison, 26 hedge funds held shares or bullish call options in OSK a year ago. With hedge funds' sentiment swirling, there exists a select group of notable hedge fund managers who were increasing their stakes substantially (or already accumulated large positions). More specifically,AQR Capital Managementwas the largest shareholder of Oshkosh Corporation (NYSE:OSK), with a stake worth $101.6 million reported as of the end of March. Trailing AQR Capital Management was Two Sigma Advisors, which amassed a stake valued at $43.7 million. Atlantic Investment Management, Citadel Investment Group, and Lodge Hill Capital were also very fond of the stock, giving the stock large weights in their portfolios. Seeing as Oshkosh Corporation (NYSE:OSK) has faced bearish sentiment from the aggregate hedge fund industry, it's safe to say that there were a few hedgies that decided to sell off their positions entirely heading into Q3. It's worth mentioning that Robert Polak'sAnchor Bolt Capitaldumped the biggest investment of the "upper crust" of funds tracked by Insider Monkey, comprising close to $32.2 million in stock, and Andrew Feldstein and Stephen Siderow's Blue Mountain Capital was right behind this move, as the fund dropped about $10 million worth. These moves are interesting, as aggregate hedge fund interest fell by 5 funds heading into Q3. Let's check out hedge fund activity in other stocks similar to Oshkosh Corporation (NYSE:OSK). We will take a look at National Fuel Gas Company (NYSE:NFG), Huntsman Corporation (NYSE:HUN), NIO Inc. (NYSE:NIO), and Buckeye Partners, L.P. (NYSE:BPL). This group of stocks' market valuations are closest to OSK's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position NFG,16,236763,0 HUN,35,470004,9 NIO,21,215822,8 BPL,5,12374,0 Average,19.25,233741,4.25 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 19.25 hedge funds with bullish positions and the average amount invested in these stocks was $234 million. That figure was $354 million in OSK's case. Huntsman Corporation (NYSE:HUN) is the most popular stock in this table. On the other hand Buckeye Partners, L.P. (NYSE:BPL) is the least popular one with only 5 bullish hedge fund positions. Oshkosh Corporation (NYSE:OSK) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Hedge funds were also right about betting on OSK, though not to the same extent, as the stock returned 0.4% during the same time frame and outperformed the market as well. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Third of Greece ‘could turn into a desert’ as climate change blasts Europe Crete could be at risk (Getty) Areas around the Mediterranean including Greece could turn into dry, sand-blasted deserts as rain dries up due to climate change, experts have warned. Christos Zerefos, head of the Research Center for Atmospheric Physics and Climatology at the Academy of Athens, told Kathimerini, ‘Around 30 percent of Greece could be threatened with desertification. Popular holiday resorts such as the Aegean islands and parts of Crete could be under threat, as declining rainfall and extreme weather changes the soil in the areas. Christos Giannakopoulos of the National Observatory of Athens said that the blame lay with ‘climate change and erroneous human intervention.’ Read more from Yahoo News UK: Boris Johnson one step closer to becoming Prime Minister 'Neo-nazis' paint swastikas on walls of occupation bunker in Jersey Black cab rapist John Worboys admits to four additional sex attacks On Tuesday, United Nations' climate chief Patricia Espinosa told government representatives and U.N. officials meeting in Bonn, Germany, they were falling far short of what was needed to reduce emissions by 45 percent by 2030 to limit global warming. However, some countries have announced new targets, such as Britain's goal to reach net zero emissions by 2050 and Chile's plan to become carbon neutral by 2050 and shut all coal plants by 2040. Destinations such as Santorini could be at risk (Getty) Currently, five countries - including India and Costa Rica - have targets compatible with limiting a temperature rise to 2C, the Climate Action Tracker report said. Ten more - including Brazil, Canada, the European Union, Australia and New Zealand - have plans compatible with a 3C limit; nine more - including Japan, China and Chile - have targets compatible with a 4C limit. Five countries - Russia, Saudi Arabia, Turkey, Ukraine and the United States - have targets compatible with a world experiencing temperature rise above 4C, the report said. Governments have been urged to put forward new plans to increase efforts to combat climate change at a United Nations summit this September in New York.
Did Hedge Funds Drop The Ball On Skechers USA Inc (SKX) ? It was a rough fourth quarter for many hedge funds, which were naturally unable to overcome the big dip in the broad market, as the S&P 500 fell by about 4.8% during 2018 and average hedge fund losing about 1%. The Russell 2000, composed of smaller companies, performed even worse, trailing the S&P by more than 6 percentage points, as investors fled less-known quantities for safe havens. Luckily hedge funds were shifting their holdings into large-cap stocks. The 20 most popular hedge fund stocks actually generated an average return of 18.7% so far in 2019 and outperformed the S&P 500 ETF by 6.6 percentage points. We are done processing the latest 13f filings and in this article we will study how hedge fund sentiment towards Skechers USA Inc (NYSE:SKX) changed during the first quarter. IsSkechers USA Inc (NYSE:SKX)the right investment to pursue these days? The best stock pickers are turning less bullish. The number of long hedge fund bets were trimmed by 1 in recent months. Our calculations also showed that skx isn't among the30 most popular stocks among hedge funds.SKXwas in 24 hedge funds' portfolios at the end of the first quarter of 2019. There were 25 hedge funds in our database with SKX positions at the end of the previous quarter. So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio. [caption id="attachment_30621" align="aligncenter" width="487"] Cliff Asness of AQR Capital Management[/caption] We're going to take a look at the recent hedge fund action surrounding Skechers USA Inc (NYSE:SKX). Heading into the second quarter of 2019, a total of 24 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -4% from the previous quarter. The graph below displays the number of hedge funds with bullish position in SKX over the last 15 quarters. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Tremblant Capitalwas the largest shareholder of Skechers USA Inc (NYSE:SKX), with a stake worth $65.7 million reported as of the end of March. Trailing Tremblant Capital was AQR Capital Management, which amassed a stake valued at $59.2 million. Arrowstreet Capital, Millennium Management, and Two Sigma Advisors were also very fond of the stock, giving the stock large weights in their portfolios. Seeing as Skechers USA Inc (NYSE:SKX) has faced declining sentiment from hedge fund managers, logic holds that there was a specific group of funds that elected to cut their full holdings by the end of the third quarter. It's worth mentioning that James Woodson Davis'sWoodson Capital Managementcut the biggest stake of the 700 funds monitored by Insider Monkey, comprising an estimated $13.4 million in stock, and Zachary Miller's Parian Global Management was right behind this move, as the fund dropped about $7.7 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest fell by 1 funds by the end of the third quarter. Let's also examine hedge fund activity in other stocks - not necessarily in the same industry as Skechers USA Inc (NYSE:SKX) but similarly valued. We will take a look at Primerica, Inc. (NYSE:PRI), Alteryx, Inc. (NYSE:AYX), Sinopec Shanghai Petrochemical Company Limited (NYSE:SHI), and Owens Corning (NYSE:OC). This group of stocks' market valuations resemble SKX's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position PRI,12,311623,-4 AYX,31,766712,2 SHI,5,12597,-1 OC,27,932300,-13 Average,18.75,505808,-4 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 18.75 hedge funds with bullish positions and the average amount invested in these stocks was $506 million. That figure was $320 million in SKX's case. Alteryx, Inc. (NYSE:AYX) is the most popular stock in this table. On the other hand Sinopec Shanghai Petrochemical Company Limited (NYSE:SHI) is the least popular one with only 5 bullish hedge fund positions. Skechers USA Inc (NYSE:SKX) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately SKX wasn't nearly as popular as these 20 stocks and hedge funds that were betting on SKX were disappointed as the stock returned -16.7% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Why Slack Stock Popped 61.5% at Its IPO What happened Slack (NYSE: WORK) stock is up 61.5%! No, it's only up 47.1%. Or maybe Slack is up only 59%? Actually, all these answers may be right or wrong, depending on how you look at the Slack IPO today -- and how well you understand the concept of a direct listing IPO . Block letters I P O So what In contrast to an "ordinary" IPO, where a company works with its underwriters to try to pick an IPO price that will (a) give it a lot of money but (b) not give it so much money that folks allocated shares in the IPO don't get a chance to make a big first-day profit, a direct listing IPO doesn't set an IPO price at all. Instead, it lets investors decide on the right price from the very first minute of trading -- and that first "buy" order of the day becomes the stock's initial price. Now, in Slack's case, the New York Stock Exchange, where the shares are listed, did set a "reference price" -- its best guess at where Slack would begin trading today -- yesterday; $26 was the price the NYSE settled upon. Thus, when Slack shares hit their high of the day, $42, that was in fact 61.5% above the reference price. The lowest price the shares have fetched today -- $38.25 -- was 47.1% above the reference price of $26. And $41.30 -- the price Slack shares go for as I type these words at 12:50 p.m. EDT -- is 59% more than the offer price. But it's only a 6.9% gain from Slack's opening share price of $38.50. Now what After NYSE set its reference price last night, IPO watchers at TheFly.com spent most of this morning revising that number, as the price at which Slack was "indicated to open" rose steadily -- $30 to $34 as of 10:20 a.m. EDT today, $32 to $34 by 10:54, $35.50 to $36.50 at 11:20, $36 to $37 nine minutes later, $37 to $38 15 minutes after that, and finally $37.50 to $38.50 in the seconds before trading actually began at noon. Then Slack maxed out that latest pronouncement. Where Slack shares go from here is anybody's guess, but from where I sit, Slack's momentum doesn't seem to be slackening one bit. Story continues 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 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
Here is What Hedge Funds Think About Insperity Inc (NSP) It is already common knowledge that individual investors do not usually have the necessary resources and abilities to properly research an investment opportunity. As a result, most investors pick their illusory “winners” by making a superficial analysis and research that leads to poor performance on aggregate. Since stock returns aren't usually symmetrically distributed and index returns are more affected by a few outlier stocks (i.e. the FAANG stocks dominating and driving S&P 500 Index's returns in recent years), more than 50% of the constituents of the Standard and Poor’s 500 Index underperform the benchmark. Hence, if you randomly pick a stock, there is more than 50% chance that you'd fail to beat the market. At the same time, the 20 most favored S&P 500 stocks by the hedge funds monitored by Insider Monkey generated an outperformance of 6 percentage points during the first 5 months of 2019. Of course, hedge funds do make wrong bets on some occasions and these get disproportionately publicized on financial media, but piggybacking their moves can beat the broader market on average. That's why we are going to go over recent hedge fund activity in Insperity Inc (NYSE:NSP). Hedge fund interest inInsperity Inc (NYSE:NSP)shares was flat at the end of last quarter. This is usually a negative indicator. The level and the change in hedge fund popularity aren't the only variables you need to analyze to decipher hedge funds' perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That's why at the end of this article we will examine companies such as Bemis Company, Inc. (NYSE:BMS), Chesapeake Energy Corporation (NYSE:CHK), and MKS Instruments, Inc. (NASDAQ:MKSI) to gather more data points. In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to. Let's go over the key hedge fund action encompassing Insperity Inc (NYSE:NSP). At Q1's end, a total of 24 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 0% from the fourth quarter of 2018. The graph below displays the number of hedge funds with bullish position in NSP over the last 15 quarters. So, let's review which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Renaissance Technologieswas the largest shareholder of Insperity Inc (NYSE:NSP), with a stake worth $84.4 million reported as of the end of March. Trailing Renaissance Technologies was AQR Capital Management, which amassed a stake valued at $74.2 million. Marshall Wace LLP, Winton Capital Management, and D E Shaw were also very fond of the stock, giving the stock large weights in their portfolios. Since Insperity Inc (NYSE:NSP) has witnessed bearish sentiment from the entirety of the hedge funds we track, it's easy to see that there lies a certain "tier" of hedgies that slashed their full holdings last quarter. It's worth mentioning that D. E. Shaw'sD E Shawdropped the largest position of the "upper crust" of funds monitored by Insider Monkey, valued at close to $0.5 million in stock, and David Andre and Astro Teller's Cerebellum Capital was right behind this move, as the fund sold off about $0.3 million worth. These transactions are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience). Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Insperity Inc (NYSE:NSP) but similarly valued. These stocks are Bemis Company, Inc. (NYSE:BMS), Chesapeake Energy Corporation (NYSE:CHK), MKS Instruments, Inc. (NASDAQ:MKSI), and Popular Inc (NASDAQ:BPOP). All of these stocks' market caps match NSP's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position BMS,29,373125,3 CHK,20,179653,5 MKSI,22,559663,-8 BPOP,33,776860,1 Average,26,472325,0.25 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $472 million. That figure was $458 million in NSP's case. Popular Inc (NASDAQ:BPOP) is the most popular stock in this table. On the other hand Chesapeake Energy Corporation (NYSE:CHK) is the least popular one with only 20 bullish hedge fund positions. Insperity Inc (NYSE:NSP) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately NSP wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); NSP investors were disappointed as the stock returned -6.8% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Hedge Funds Have Never Been This Bullish On Globus Medical Inc (GMED) The first quarter was a breeze as Powell pivoted, and China seemed eager to reach a deal with Trump. Both the S&P 500 and Russell 2000 delivered very strong gains as a result, with the Russell 2000, which is composed of smaller companies, outperforming the large-cap stocks slightly during the first quarter. Unfortunately sentiment shifted in May as this time China pivoted and Trump put more pressure on China by increasing tariffs. Hedge funds' top 20 stock picks performed spectacularly in this volatile environment. These stocks delivered a total gain of 18.7% through May 30th, vs. a gain of 12.1% for the S&P 500 ETF. In this article we will look at how this market volatility affected the sentiment of hedge funds towards Globus Medical Inc (NYSE:GMED), and what that likely means for the prospects of the company and its stock. Globus Medical Inc (NYSE:GMED)has seen an increase in support from the world's most elite money managers recently.GMEDwas in 24 hedge funds' portfolios at the end of the first quarter of 2019. There were 18 hedge funds in our database with GMED positions at the end of the previous quarter. Our calculations also showed that gmed isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. We're going to take a peek at the key hedge fund action encompassing Globus Medical Inc (NYSE:GMED). At Q1's end, a total of 24 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 33% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards GMED over the last 15 quarters. With hedgies' sentiment swirling, there exists an "upper tier" of key hedge fund managers who were adding to their holdings considerably (or already accumulated large positions). More specifically,AQR Capital Managementwas the largest shareholder of Globus Medical Inc (NYSE:GMED), with a stake worth $107.6 million reported as of the end of March. Trailing AQR Capital Management was Renaissance Technologies, which amassed a stake valued at $67.2 million. Point72 Asset Management, GLG Partners, and Sio Capital were also very fond of the stock, giving the stock large weights in their portfolios. With a general bullishness amongst the heavyweights, some big names have jumped into Globus Medical Inc (NYSE:GMED) headfirst.Point72 Asset Management, managed by Steve Cohen, initiated the most outsized position in Globus Medical Inc (NYSE:GMED). Point72 Asset Management had $24 million invested in the company at the end of the quarter. Michael Castor'sSio Capitalalso made a $10 million investment in the stock during the quarter. The other funds with new positions in the stock are Michael Hintze'sCQS Cayman LP, Efrem Kamen'sPura Vida Investments, and Israel Englander'sMillennium Management. Let's also examine hedge fund activity in other stocks similar to Globus Medical Inc (NYSE:GMED). These stocks are H&R Block, Inc. (NYSE:HRB), Curtiss-Wright Corp. (NYSE:CW), Grupo Aeroportuario del Sureste, S. A. B. de C. V. (NYSE:ASR), and NewMarket Corporation (NYSE:NEU). This group of stocks' market caps are closest to GMED's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position HRB,16,238498,-2 CW,21,429271,1 ASR,8,35587,3 NEU,21,88478,5 Average,16.5,197959,1.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 16.5 hedge funds with bullish positions and the average amount invested in these stocks was $198 million. That figure was $265 million in GMED's case. Curtiss-Wright Corp. (NYSE:CW) is the most popular stock in this table. On the other hand Grupo Aeroportuario del Sureste, S. A. B. de C. V. (NYSE:ASR) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Globus Medical Inc (NYSE:GMED) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately GMED wasn't nearly as popular as these 20 stocks and hedge funds that were betting on GMED were disappointed as the stock returned -19.9% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About argenx SE (ARGX) Investing in hedge funds can bring large profits, but it’s not for everybody, since hedge funds are available only for high-net-worth individuals. They generate significant returns for investors to justify their large fees and they allocate a lot of time and employ a complex analysis to determine the best stocks to invest in. A particularly interesting group of stocks that hedge funds like is the small-caps. The huge amount of capital does not allow hedge funds to invest a lot in small-caps, but our research showed that their most popular small-cap ideas are less efficiently priced and generate stronger returns than their large- and mega-cap picks and the broader market. That is why we pay special attention to the hedge fund activity in the small-cap space. Isargenx SE (NASDAQ:ARGX)the right investment to pursue these days? The best stock pickers are becoming less confident. The number of long hedge fund bets retreated by 3 lately. Our calculations also showed that argx isn't among the30 most popular stocks among hedge funds.ARGXwas in 24 hedge funds' portfolios at the end of March. There were 27 hedge funds in our database with ARGX positions at the end of the previous quarter. Why do we pay any attention at all to hedge fund sentiment? Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. We're going to go over the key hedge fund action surrounding argenx SE (NASDAQ:ARGX). Heading into the second quarter of 2019, a total of 24 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -11% from the fourth quarter of 2018. On the other hand, there were a total of 21 hedge funds with a bullish position in ARGX a year ago. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. The largest stake in argenx SE (NASDAQ:ARGX) was held byBaker Bros. Advisors, which reported holding $127.3 million worth of stock at the end of March. It was followed by Redmile Group with a $127.2 million position. Other investors bullish on the company included venBio Select Advisor, EcoR1 Capital, and Deerfield Management. Judging by the fact that argenx SE (NASDAQ:ARGX) has faced declining sentiment from the aggregate hedge fund industry, it's safe to say that there is a sect of hedge funds that slashed their positions entirely by the end of the third quarter. At the top of the heap, Joseph Edelman'sPerceptive Advisorssaid goodbye to the biggest position of all the hedgies monitored by Insider Monkey, totaling close to $53.9 million in stock, and Christopher James's Partner Fund Management was right behind this move, as the fund said goodbye to about $11.3 million worth. These moves are important to note, as total hedge fund interest was cut by 3 funds by the end of the third quarter. Let's also examine hedge fund activity in other stocks - not necessarily in the same industry as argenx SE (NASDAQ:ARGX) but similarly valued. These stocks are Integra Lifesciences Holdings Corp (NASDAQ:IART), The Howard Hughes Corporation (NYSE:HHC), Ascendis Pharma A/S (NASDAQ:ASND), and DCP Midstream LP (NYSE:DCP). All of these stocks' market caps are similar to ARGX's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position IART,19,159928,1 HHC,22,471962,-4 ASND,35,2904435,9 DCP,2,8323,-3 Average,19.5,886162,0.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 19.5 hedge funds with bullish positions and the average amount invested in these stocks was $886 million. That figure was $751 million in ARGX's case. Ascendis Pharma A/S (NASDAQ:ASND) is the most popular stock in this table. On the other hand DCP Midstream LP (NYSE:DCP) is the least popular one with only 2 bullish hedge fund positions. argenx SE (NASDAQ:ARGX) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Hedge funds were also right about betting on ARGX as the stock returned 2.6% during the same period and outperformed the market by an even larger margin. Hedge funds were rewarded for their relative bullishness. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
How Much Of Guyana Goldfields Inc. (TSE:GUY) Do Institutions Own? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Every investor in Guyana Goldfields Inc. (TSE:GUY) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that have been privatized tend to have low insider ownership. Guyana Goldfields is not a large company by global standards. It has a market capitalization of CA$158m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about GUY. Check out our latest analysis for Guyana Goldfields Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. As you can see, institutional investors own 54% of Guyana Goldfields. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Guyana Goldfields'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. Our data indicates that hedge funds own 7.3% of Guyana Goldfields. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. 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. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Our information suggests that Guyana Goldfields Inc. insiders own under 1% of the company. It has a market capitalization of just CA$158m, and the board has only CA$792k worth of shares in their own names. Many investors in smaller companies prefer to see the board more heavily invested. You canclick here to see if those insiders have been buying or selling. With a 38% ownership, the general public have some degree of sway over GUY. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. It's always worth thinking about the different groups who own shares in a company. But to understand Guyana Goldfields 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 are like me, you may want to think about whether this company will grow or shrink. Luckily, you can checkthis free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Hedge Funds Have Never Been This Bullish On Paylocity Holding Corp (PCTY) Billionaire hedge fund managers such as David Abrams, Steve Cohen and Stan Druckenmiller can generate millions or even billions of dollars every year by pinning down high-potential small-cap stocks and pouring cash into these candidates. Small-cap stocks are overlooked by most investors, brokerage houses, and financial services hubs, while the unlimited research abilities of the big players within the hedge fund industry can easily identify the undervalued and high-potential stocks that reside the ignored corners of equity markets. There are numerous small-cap stocks that have turned out to be great winners, which is one of the main reasons the Insider Monkey team pays close attention to the hedge fund activity in relation to these stocks. Paylocity Holding Corp (NASDAQ:PCTY)investors should be aware of an increase in enthusiasm from smart money recently. Our calculations also showed that pcty isn't among the30 most popular stocks among hedge funds. In the 21st century investor’s toolkit there are tons of gauges stock market investors employ to grade publicly traded companies. A couple of the less known gauges are hedge fund and insider trading moves. We have shown that, historically, those who follow the best picks of the top money managers can trounce the broader indices by a healthy amount (see the details here). [caption id="attachment_745225" align="aligncenter" width="473"] Noam Gottesman, GLG Partners[/caption] We're going to take a glance at the recent hedge fund action encompassing Paylocity Holding Corp (NASDAQ:PCTY). Heading into the second quarter of 2019, a total of 24 of the hedge funds tracked by Insider Monkey were long this stock, a change of 71% from the previous quarter. The graph below displays the number of hedge funds with bullish position in PCTY over the last 15 quarters. With the smart money's positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were increasing their holdings considerably (or already accumulated large positions). According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey,Echo Street Capital Management, managed by Greg Poole, holds the biggest position in Paylocity Holding Corp (NASDAQ:PCTY). Echo Street Capital Management has a $31.1 million position in the stock, comprising 0.6% of its 13F portfolio. Coming in second isD E Shaw, managed by D. E. Shaw, which holds a $20.6 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining peers that are bullish contain John Overdeck and David Siegel'sTwo Sigma Advisors, Israel Englander'sMillennium Managementand Noam Gottesman'sGLG Partners. With a general bullishness amongst the heavyweights, some big names were breaking ground themselves.Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, created the biggest position in Paylocity Holding Corp (NASDAQ:PCTY). Arrowstreet Capital had $8.5 million invested in the company at the end of the quarter. Phill Gross and Robert Atchinson'sAdage Capital Managementalso initiated a $4 million position during the quarter. The following funds were also among the new PCTY investors: Panayotis Takis Sparaggis'sAlkeon Capital Management, Matthew Hulsizer'sPEAK6 Capital Management, and Benjamin A. Smith'sLaurion Capital Management. Let's also examine hedge fund activity in other stocks - not necessarily in the same industry as Paylocity Holding Corp (NASDAQ:PCTY) but similarly valued. We will take a look at Casey's General Stores, Inc. (NASDAQ:CASY), BWX Technologies Inc (NYSE:BWXT), Avnet, Inc. (NYSE:AVT), and Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC). All of these stocks' market caps resemble PCTY's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CASY,18,51288,0 BWXT,18,107854,-1 AVT,17,586463,-7 TKC,7,8792,-2 Average,15,188599,-2.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $189 million. That figure was $149 million in PCTY's case. Casey's General Stores, Inc. (NASDAQ:CASY) is the most popular stock in this table. On the other hand Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Paylocity Holding Corp (NASDAQ:PCTY) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Hedge funds were also right about betting on PCTY as the stock returned 13% during the same period and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Hedge Funds Have Never Been More Bullish On Cameco Corporation (CCJ) Hedge funds are known to underperform the bull markets but that's not because they are bad at investing. Truth be told, most hedge fund managers and other smaller players within this industry are very smart and skilled investors. Of course, they may also make wrong bets in some instances, but no one knows what the future holds and how market participants will react to the bountiful news that floods in each day. Hedge funds underperform because they are hedged. The Standard and Poor’s 500 Index returned approximately 12.1% in the first 5 months of this year through May 30th (including dividend payments). Conversely, hedge funds’ top 20 large-cap stock picks generated a return of 18.7% during the same 5-month period. An average long/short hedge fund returned only a fraction of this due to the hedges they implement and the large fees they charge. Our research covering the last 18 years indicates that investors can outperform the market by imitating hedge funds' stock picks rather than directly investing in hedge funds. That's why we believe it isn't a waste of time to check out hedge fund sentiment before you invest in a stock like Cameco Corporation (NYSE:CCJ). Cameco Corporation (NYSE:CCJ)shares haven't seen a lot of action during the first quarter. Overall, hedge fund sentiment was unchanged. The stock was in 24 hedge funds' portfolios at the end of March. At the end of this article we will also compare CCJ to other stocks including Eaton Vance Corp (NYSE:EV), FibroGen Inc (NASDAQ:FGEN), and Portland General Electric Company (NYSE:POR) to get a better sense of its popularity. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Let's analyze the recent hedge fund action regarding Cameco Corporation (NYSE:CCJ). At Q1's end, a total of 24 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from the previous quarter. By comparison, 14 hedge funds held shares or bullish call options in CCJ a year ago. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. According to Insider Monkey's hedge fund database, Phill Gross and Robert Atchinson'sAdage Capital Managementhas the most valuable position in Cameco Corporation (NYSE:CCJ), worth close to $124.3 million, amounting to 0.3% of its total 13F portfolio. Sitting at the No. 2 spot isKopernik Global Investors, led by David Iben, holding a $111.5 million position; 19.5% of its 13F portfolio is allocated to the stock. Other professional money managers that hold long positions consist of John Burbank'sPassport Capital, Amit Wadhwaney'sMoerus Capital Managementand Carson Yost'sYost Capital Management. Due to the fact that Cameco Corporation (NYSE:CCJ) has witnessed falling interest from the entirety of the hedge funds we track, we can see that there exists a select few hedge funds who were dropping their full holdings by the end of the third quarter. It's worth mentioning that Dmitry Balyasny'sBalyasny Asset Managementcut the largest position of the "upper crust" of funds tracked by Insider Monkey, valued at about $15.7 million in stock, and Paul Marshall and Ian Wace's Marshall Wace LLP was right behind this move, as the fund dropped about $7.3 million worth. These moves are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience). Let's now take a look at hedge fund activity in other stocks similar to Cameco Corporation (NYSE:CCJ). These stocks are Eaton Vance Corp (NYSE:EV), FibroGen Inc (NASDAQ:FGEN), Portland General Electric Company (NYSE:POR), and The Hanover Insurance Group, Inc. (NYSE:THG). This group of stocks' market valuations resemble CCJ's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position EV,13,115183,-4 FGEN,21,193833,1 POR,19,251671,0 THG,23,300220,3 Average,19,215227,0 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $215 million. That figure was $351 million in CCJ's case. The Hanover Insurance Group, Inc. (NYSE:THG) is the most popular stock in this table. On the other hand Eaton Vance Corp (NYSE:EV) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Cameco Corporation (NYSE:CCJ) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately CCJ wasn't nearly as popular as these 20 stocks and hedge funds that were betting on CCJ were disappointed as the stock returned -14.9% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Hedge Funds Have Never Been This Bullish On CarGurus, Inc. (CARG) Many investors, including Paul Tudor Jones or Stan Druckenmiller, have beensayingbefore the Q4 market crash that the stock market is overvalued due to a low interest rate environment that leads to companies swapping their equity for debt and focusing mostly on short-term performance such as beating the quarterly earnings estimates. In the first quarter, most investors recovered all of their Q4 losses as sentiment shifted and optimism dominated the US China trade negotiations. Nevertheless, many of the stocks that delivered strong returns in the first quarter still sport strong fundamentals and their gains were more related to the general market sentiment rather than their individual performance and hedge funds kept their bullish stance. In this article we will find out how hedge fund sentiment to CarGurus, Inc. (NASDAQ:CARG) changed recently. CarGurus, Inc. (NASDAQ:CARG)was in 24 hedge funds' portfolios at the end of the first quarter of 2019. CARG has seen an increase in hedge fund sentiment lately. There were 19 hedge funds in our database with CARG positions at the end of the previous quarter. Our calculations also showed that carg isn't among the30 most popular stocks among hedge funds. Today there are a multitude of gauges investors employ to grade stocks. A pair of the most useful gauges are hedge fund and insider trading signals. We have shown that, historically, those who follow the top picks of the elite hedge fund managers can beat the S&P 500 by a very impressive amount (see the details here). We're going to take a gander at the key hedge fund action encompassing CarGurus, Inc. (NASDAQ:CARG). At the end of the first quarter, a total of 24 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 26% from the previous quarter. By comparison, 7 hedge funds held shares or bullish call options in CARG a year ago. With the smart money's positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were adding to their holdings considerably (or already accumulated large positions). Among these funds,Hound Partnersheld the most valuable stake in CarGurus, Inc. (NASDAQ:CARG), which was worth $234.3 million at the end of the first quarter. On the second spot was Matrix Capital Management which amassed $208.3 million worth of shares. Moreover, Cat Rock Capital, Renaissance Technologies, and Two Sigma Advisors were also bullish on CarGurus, Inc. (NASDAQ:CARG), allocating a large percentage of their portfolios to this stock. Now, key hedge funds were breaking ground themselves.Alyeska Investment Group, managed by Anand Parekh, established the most valuable position in CarGurus, Inc. (NASDAQ:CARG). Alyeska Investment Group had $5.4 million invested in the company at the end of the quarter. Doug Gordon, Jon Hilsabeck and Don Jabro'sShellback Capitalalso made a $4.5 million investment in the stock during the quarter. The following funds were also among the new CARG investors: James Thomas Berylson'sBerylson Capital Partners, Andrew Feldstein and Stephen Siderow'sBlue Mountain Capital, and Peter Muller'sPDT Partners. Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as CarGurus, Inc. (NASDAQ:CARG) but similarly valued. We will take a look at Hawaiian Electric Industries, Inc. (NYSE:HE), First Horizon National Corporation (NYSE:FHN), Williams-Sonoma, Inc. (NYSE:WSM), and Itau CorpBanca (NYSE:ITCB). This group of stocks' market caps are similar to CARG's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position HE,12,144367,-1 FHN,16,126038,-3 WSM,29,371142,12 ITCB,1,4168,0 Average,14.5,161429,2 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 14.5 hedge funds with bullish positions and the average amount invested in these stocks was $161 million. That figure was $820 million in CARG's case. Williams-Sonoma, Inc. (NYSE:WSM) is the most popular stock in this table. On the other hand Itau CorpBanca (NYSE:ITCB) is the least popular one with only 1 bullish hedge fund positions. CarGurus, Inc. (NASDAQ:CARG) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately CARG wasn't nearly as popular as these 20 stocks and hedge funds that were betting on CARG were disappointed as the stock returned -15.9% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Thursday Apple Rumors: Apple Employees Are Testing its Credit Card Leading theApple(NASDAQ:AAPL) rumor mill today is news of credit card tests. Today, we’ll look at that and otherApple Rumorsfor Thursday. Credit Card :Apple is expanding the test of its credit cards to include more employees, reportsBloomberg. The company is now allowing its retail employees to give the credit card a whirl before its official launch. Tests of the credit card were already underway with the help of AAPL’s corporate employees. This new credit card is in partnership withGoldman Sachs(NYSE:GS) and will likely launch in the U.S. sometime this summer. MacBook Pro Recall:AAPL is recalling some versions of the MacBook Pro over possible defective batteries,9to5Macnotes. This recall affects 15-inch MacBook Pro laptops sold between September 2015 and February 2017. AAPL claims that the reason for this recall is that the batteries in the laptops can overheat. It notes that this can make them a safety risk for the owner. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Trump Tariffs:Apple is trying to avoid President Donald Trump’s tariffs on its devices, reportsAppleInsider. The company sent out a letter requesting that its products not be included in the trade war with China. The company argues that doing so will result in its global competitors gaining an unfair advantage over it. There’s been talk that AAPL may choose to move creation of its products out of China to avoid the tariffs. However, this could take years to complete. Check out more recentApple RumorsorSubscribe to Apple Rumors:RSS As of this writing, William White did not hold a position in any of the aforementioned securities.Compare Brokers The postThursday Apple Rumors: Apple Employees Are Testing its Credit Cardappeared first onInvestorPlace.
8 Things You Need To Know About How Banks & Lenders Sell To You Nobody wants to be sold to, but everybody wants to buy. This is true whether reminding a store employee you’re “just looking” or buying a home in the largest transaction of your life. To win, you must know when and how you’re being sold to, especially when it comes to finance. Last week we were ground zero at HousingWire’s 2019 Engage.Marketing conference, one of the banking and real estate industry’s top marketing summits, and below are 8 key takeaways about how banks and lenders sell the American Dream of homeownership to you. +++ 1. Banks will use one product to win you for life. Lenders and realtors are realizing the one product model doesn’t serve you properly over your financial life. It costs them too much to find new customers all the time, so they want to win you once then keep you happy for life. After a smart lender does your mortgage, they’ll optimize your budget with refis when rates drop, talk to you about student loan consolidation, and offer investing and saving ideas so maybe your kids don’t have to get student loans. “Organizations crave mass customer acquisition, but the most lifetime value a customer adds is AFTER the initial transaction. My grandmother has had the same checking account since 1942. Think of that lifetime value add,” said Joe Welu, CEO of Total Expert, a startup that helps lenders market to you in ways that actually matter to you. Remember this: whatever financial product you’re shopping for right now, see if the bank or lender also offers other products you might need later. +++ 2. Winning you means making you a “super-fan.” Brittany Hodak shared a story about how someone turned her into a super-fan. Her husband is a rabid University of Michigan football fan, and he wanted Michigan coach Jim Harbaugh to come to Hodak’s gender reveal party when she was pregnant. Harbaugh couldn’t come, but wrote the Hodaks a handwritten note offering the baby a scholarship 18 years from now. A quick note from one of the busiest people in the world turned Hodakinto a super-fan for life. “The best marketing doesn’t cost money,” Hodak said. “You can’t buy superfans. You can’t pay someone to love you.” The best lenders and realtors are getting better at making you a super-fan by adding human touch in this digital era. +++ 3. Lenders want to be Facebook friends, but they have rules to follow. If any of your friends are loan officers, it’s all over their social media. They must follow strict regulations on what they can say on social media and how they can say it, so if you end up having specific questions, be prepared for them to ask to engage with you directly. They can’t get too specific on social. Also you should look out for proper disclosures on your banker and lender’s social accounts. If they talk shop on social, they’re required to put their license numbers on their social account profiles. So look out for NMLS IDs or other indicators on individual’s pages that are posting about business a lot. And of course brand-level social accounts have a different, less personal voice so you know you’re being sold to in these cases. +++ 4. Video now rules social. Which videos resonate with you? The current Facebook algorithm loves long videos. Expect to see more 3+ minute videos by every brand and individual banker/lender under the sun. Will banks and realtors find their voice? Most industry folks think individual loan officers and real estate agents will win the video game over big brands. We think it’ll be a mix—big brandscan be more creativethan some give them credit for. What type of videos are resonating with you on social right now?Let us know! +++ 5. Loan officers & real estate agents will be your most active social friends. Facebook’s algorithm loves engagement. When posters chime in on others’ content with insightful commentary, Facebook starts to think you’re friends. So you’ll see your local loan officers and real estate agents start commenting more and more on your posts, and then Facebook will start to show you their content in your feed. This is good because when it’s finally time for you to start mortgage hunting, that friendly neighborhood lender or realtor will be right in your Facebook feed. If they’re good, their content will make you want to engage with them when you’re ready for serious questions about your situation. +++ 6. Bank marketing will get more relevant. No, seriously! Just yesterday, Spencer got an email from his bank saying he should take out student loans with them. Yes, this is the same bank who’s been sending his monthly student loan statements to him for years. This is absurd and happens to all of us still to this day. Alex Kutsishin, CEO of Sales Boomerang, talks to lenders about thinking like a farmer and you the customer are the corn. He joked: “Yes, I just called your borrowers corn.” But he’s right. Banks and lenders need to know how you’re growing and how your needs are changing so they can deliver the right message to you based on your needs at a specific time. Financial marketers call this nuturing. They have a lot of data on you and your life and your family that you consent to give them when you apply for a loan or a bank or investment account. If you also consent for them to use this data for the future, they are getting better at reaching out to you exactly when you need it: – If rates drop they’ll lower your existing mortgage rate. – If you have a kid they’ll offer you a cheap loan to remodel a room, or show you listings for a bigger home you can afford in your neighborhood, or talk to you about college savings plans. Total Expert is all over this, and will lead the way in helping banks hit you with relevant offers. +++ 7. Marketers finally get that not every homebuyer is a straight white man. Homebuyers are increasingly diverse, but a lot of mortgage advertising sells the lily-white suburbs and minivan. “Single women are buying homes like crazy, but if all your marketing is a husband and wife and golden retriever buying homes, that’s not connecting with that audience,” said Keosha Burns, a marketer at Chase. She’s right and it’s great to see one of the biggest banks in the U.S. understand this. +++ 8. Education is equally important as a good deal. Home buying, selling, and financing is complicated, and the best lenders and realtors are finally getting good at making this simple for you. “Millennial homebuyers are looking for education. There are so many acronyms in this industry,” said Jim Anderson, CMO of Stearns Lending. “You need to have the educational material. The top search terms are how much home you can afford and how a home fits into financial plans.” The good part about social media is that lenders must be more human (instead of technical) when talking about home buying, selling, and financing concepts, and you’ll start to see this more from your bankers soon (per #6 above). The technology is getting smarter at educating you, but in finance, most of you still need and want human advice, and the best technology being deployed within financial firms helps them super-power their human advisors to deliver education to you more easily. +++ More to come on these topics, and below is more reading. Pleasehit us with questions. ___Reference: –The Basis Point’s HousingWire Engage Liveblog 2019 – Day 1 –The Basis Point’s HousingWire Engage Liveblog 2019 – Day 2 – More posts onMoneyandHomes. Slightly higher rates barely slow mortgage application train Linkage: e-scooters so hot they’re catching fire, literally Why Google pulled the plug on becoming a bank, for now
Imagine Owning Guyana Goldfields (TSE:GUY) And Trying To Stomach The 90% Share Price Drop Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Every investor on earth makes bad calls sometimes. But really bad investments should be rare. So spare a thought for the long term shareholders ofGuyana Goldfields Inc.(TSE:GUY); the share price is down a whopping 90% in the last three years. That might cause some serious doubts about the merits of the initial decision to buy the stock, to put it mildly. The more recent news is of little comfort, with the share price down 81% in a year. Shareholders have had an even rougher run lately, with the share price down 28% in the last 90 days. We really feel for shareholders in this scenario. It's a good reminder of the importance of diversification, and it's worth keeping in mind there's more to life than money, anyway. See our latest analysis for Guyana Goldfields Because Guyana Goldfields is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth. In the last three years, Guyana Goldfields saw its revenue grow by 20% per year, compound. That's well above most other pre-profit companies. So on the face of it we're really surprised to see the share price down 54% a year in the same time period. The share price makes us wonder if there is an issue with profitability. Sometimes fast revenue growth doesn't lead to profits. Unless the balance sheet is strong, the company might have to raise capital. The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart. It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. If you are thinking of buying or selling Guyana Goldfields stock, you should check out thisfreereport showing analyst profit forecasts. Guyana Goldfields shareholders are down 81% for the year, but the market itself is up 1.0%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 18% per year over five years. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality businesses. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought.You can find out about the insider purchases of Guyana Goldfields by clicking this link. Guyana Goldfields is not the only stock insiders are buying. So take a peek at thisfreelist of growing companies with insider buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on 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.
Easy Come, Easy Go: How Granite Oil (TSE:GXO) Shareholders Torched 98% Of Their Cash Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Long term investing is the way to go, but that doesn't mean you should hold every stock forever. We really hate to see fellow investors lose their hard-earned money. For example, we sympathize with anyone who was caught holdingGranite Oil Corp.(TSE:GXO) during the five years that saw its share price drop a whopping 98%. We also note that the stock has performed poorly over the last year, with the share price down 76%. On top of that, the share price has dropped a further 17% in a month. We really feel for shareholders in this scenario. It's a good reminder of the importance of diversification, and it's worth keeping in mind there's more to life than money, anyway. See our latest analysis for Granite Oil 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). During five years of share price growth, Granite Oil moved from a loss to profitability. That would generally be considered a positive, so we are surprised to see the share price is down. Other metrics may better explain the share price move. Arguably, the revenue drop of 45% a year for half a decade suggests that the company can't grow in the long term. That could explain the weak share price. You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow). We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. So it makes a lot of sense to check out what analysts think Granite Oil willearn in the future (free profit forecasts). It's important to keep in mind that we've been talking about the share price returns, which don't include dividends, while the total shareholder return does. In some ways, TSR is a better measure of how well an investment has performed. Over the last 5 years, Granite Oil generated a TSR of -85%, which is, of course, better than the share price return. Although the company had to cut dividends, it has paid cash to shareholders in the past. While the broader market gained around 1.0% in the last year, Granite Oil shareholders lost 74%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 31% per year over five years. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality businesses. It is all well and good that insiders have been buying shares, but we suggest youcheck here to see what price insiders were buying at. Granite Oil is not the only stock that insiders are buying. For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
The Real Reason Why Slack Did a Direct Listing Instead of an IPO Slack Technologies(NYSE: WORK) hit the public markets today by way of a direct listing instead of a traditional IPO. The wildly popular enterprise chat platform is the second company in recent memory to use that relatively rare method of going public afterSpotify(NYSE: SPOT)did likewise early last year. Direct listings aren't for every company. Most use IPOs to raise capital, so a direct listing is a viable option for companies that aren't looking to raise capital. "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," NYSE COO John Tuttle told Yahoo! Finance regarding Slack's debut today. "So, this is a new option for them." So what is the exact reason why Slack isn't doing a regular IPO? In an interview withCNBCthis morning, co-founder and CEO Stewart Butterfield said the primary reason why Slack was eschewing the standard IPO process was that it simply does not need to raise capital at this time, which would dilute existing shareholders. Butterfield said: The big thing for us was -- in a traditional IPO it's the company that's offering shares. You might raise, you know, a billion dollars or something like that. When you raise a billion dollars, you dilute existing shareholders by issuing new shares. So we're not doing that. We are just opening it up for trading. Butterfield notes that Slack has nearly $800 million ($792.7 million) in cash on the balance sheet already and doesn't need any more. Slack does lose money and burn cash, but not at astronomical rates, and that existing cash position already offers a cushion. Net loss last fiscal year was $138.9 million and free cash flow was negative $97.2 million. That being said, going public does give Slack greater access to capital markets if it decides to raise capital in the future. Butterfield acknowledged that Slack could do a secondary offering at some point later. "One of the things about being public is it opens up capital markets generally," Butterfield told the outlet. "So not just equity, but debt, converts, all kinds of stuff." Additionally, Slack shares won't be bound by any lock-up agreements, and distribution is somewhat more equitable in a direct listing compared to an IPO. In the traditional IPO process, underwriters allocate shares based on investor demand. Inevitably, institutional investors (that often have other business with investment banks) get priority while retail investorsmay not get all of the shares they want-- institutional investors typically get 90% of allocations on average, according to Fidelity. In a direct listing, institutional investors and retail investors have the same access to the open market with no allocation process. In contrast, Spotify had a less publicized reason for pursuing a direct listing:finagling its way out of a terrible convertible debt dealwith private investors. That situation was unique to Spotify and does not apply to Slack, but both companies now enjoy the benefits of being public. 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 Evan Niu, CFAowns shares of Spotify Technology. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy.
Walmart to pay $144 mln to settle SEC charge over Brazil unit corruption claim WASHINGTON, June 20 (Reuters) - Walmart Inc has agreed to pay a penalty of over $144 million to settle charges by the U.S. markets regulator that its Brazilian unit violated the Foreign Corrupt Practices Act, according to regulatory filings. This penalty is in addition to the $138 million it has agreed to pay to settle charges with the U.S. Department of Justice. Walmart did not immediately respond to a request seeking comment. (Reporting by Nandita Bose in Washington; editing by Jonathan Oatis)
Woman suing Harvard over slave portraits gets key support CAMBRIDGE, Mass. (AP) — A woman suing Harvard University over 19th century images of slaves she says were her ancestors received the backing Thursday of dozens of descendants of the professor who commissioned the images in his attempt to prove blacks were inferior to whites. Forty-three of professor Louis Agassiz's descendants, including several with degrees from Harvard, delivered a letter to the Ivy league school's president and Board of Overseers calling on the university to return images of an enslaved African man named Renty, and his daughter, Delia, to their descendants. Tamara Lanier, of Norwich, Connecticut, sued Harvard in March for "wrongful seizure, possession and expropriation" of the images. Her suit, filed in state court, demands that Harvard turn over the photos, acknowledge her ancestry and pay unspecified damages. Harvard continues to profit from the images, the suit says. Lanier says she is Renty's great-great-great granddaughter. The daguerreotypes are believed to be the earliest known photographs of slaves. They were commissioned by Agassiz in 1850 to support his belief that people of African descent were inherently inferior to whites, his descendants said. His belief, carrying with it Harvard prestige, was used to justify slavery by those who profited from it, the family said. "For too many years, we have ignored Agassiz's role in promoting a pseudoscientific justification for white supremacy," the letter reads. "We see this as a collective failure to live up to our values of anti-racism and compassion. Now is the time to name, acknowledge and redress the harm done by Louis Agassiz." The family said their stand is particularly important now. "At a time when racism is ascendant, from the streets of Charlottesville to the White House, we believe that both individuals and institutions need to take a stand and acknowledge our part in it, past and present," the letter says. Story continues Lanier welcomed the support of Agassiz's family. "We hope that the lesson of confronting the past head on is one that that Harvard can learn from Papa Renty," she said in a statement. "Slave owners profited from his suffering — it's time for Harvard to stop doing the same thing to our family." Harvard "cannot comment on the subject of ongoing litigation," school spokeswoman Rachael Dane said via email. But she added Harvard "has and will continue to come to terms with and address its historic connection to slavery." The daguerreotypes, because of their fragility, are kept in a special storage room at Harvard's Peabody Museum, she said.
With A 1.2% Return On Equity, Is Neo Lithium Corp. (CVE:NLC) A Quality Stock? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. To keep the lesson grounded in practicality, we'll use ROE to better understand Neo Lithium Corp. (CVE:NLC). Neo Lithium has a ROE of 1.2%, based on the last twelve months. One way to conceptualize this, is that for each CA$1 of shareholders' equity it has, the company made CA$0.012 in profit. See our latest analysis for Neo Lithium Theformula for return on equityis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Neo Lithium: 1.2% = CA$797k ÷ CA$69m (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is all the money paid into the company from shareholders, plus any earnings retained. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets. Return on Equity measures a company's profitability against the profit it has kept for the business (plus any capital injections). The 'return' is the amount earned after tax over the last twelve months. That means that the higher the ROE, the more profitable the company is. So, all else being equal,a high ROE is better than a low one. Clearly, then, one can use ROE to compare different companies. Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As shown in the graphic below, Neo Lithium has a lower ROE than the average (8.4%) in the Metals and Mining industry classification. That's not what we like to see. It is better when the ROE is above industry average, but a low one doesn't necessarily mean the business is overpriced. Nonetheless, it might be wise tocheck if insiders have been selling. Most companies need money -- from somewhere -- to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the use of debt will improve the returns, but will not change the equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. One positive for shareholders is that Neo Lithium does not have any net debt! So while I find its ROE to be rather low, at least it didn't use debt. At the end of the day, when a company has zero debt, it is in a better position to take future growth opportunities. Return on equity is useful for comparing the quality of different businesses. In my book the highest quality companies have high return on equity, despite low debt. All else being equal, a higher ROE is better. Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to check this FREEvisualization of analyst forecasts for the company. But note:Neo Lithium may not be the best stock to buy. So take a peek at thisfreelist 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.
With used smart home devices, you never know who could be watching Used smart home devices might be tempting because they're cheaper. But be careful: the original owner may be able to spy on you. According toWirecutter, a member of theFacebook Wink Users Grouplearned he was still able to see images from a Google Nest Cam Indoor he had factory reset and then sold. Turns out the camera could still be accessed from a Wink Hub, a centralized smart home hub that connects different smart devices and lets you control them all from a single app. This was even after de-registering the camera from hisNestaccount, which cut off his access to its video feed from the Nest App.Read more... More aboutGoogle,Security,Nest,Smart Home, andPsa
Trump to consider inviting Raptors 'if they'd like to do it' WASHINGTON (AP) — President Donald Trump says he'll consider inviting the NBA champion Toronto Raptors to the White House "if they'd like to do it." Asked whether he'd invite the Canadian team, Trump said Thursday that he hadn't thought about it. Trump said the Raptors played "phenomenal basketball" to win the team's first NBA title by defeating the Golden State Warriors. Trump says "if they'd like to do it, we'll think about that." The once-routine White House visit by championship college and professional sports teams has become politically fraught under Trump, with some teams and individual athletes declining to make the trip. The Warriors avoided the White House while visiting Washington in 2018. Raptors coach Nick Nurse said during a radio interview Wednesday that he hadn't heard anything about a White House visit.
U.S. top court takes on Puerto Rico financial oversight board dispute By Lawrence Hurley WASHINGTON (Reuters) - The U.S. Supreme Court on Thursday agreed to decide whether members of Puerto Rico's federally created financial oversight board were lawfully appointed in a dispute that could disrupt the panel's restructuring of about $120 billion of the bankrupt U.S. commonwealth's debt. The justices will hear an appeal by the board after a lower court ruled in February that the 2016 appointments of its seven members violated the U.S. Constitution's "appointments clause" because they were not confirmed by the Senate. Creditors challenging the appointments filed appeals separately, asking the Supreme Court to find that the decisions made by the board are invalid because its members were unlawfully installed. The justices also agreed to hear that part of the dispute. The court scheduled oral arguments for October in a bid to resolve the issue quickly. The board is overseeing the restructuring of debt and pension obligations through a form of bankruptcy. The board welcomed the court's decision to hear the case and said in a statement that its members "look forward to continuing their service." The legal challenge to the board's composition was brought in 2017 by Puerto Rico creditors including Aurelius Investment, LLC, a hedge fund that holds Puerto Rico bonds, and Unión de Trabajadores de la Industria Eléctrica y Riego, Inc, a labor group that represents workers at Puerto Rico's government-owned electricity utility. Bondholders face losses as a result of debt restructuring while the labor group has said that the board's proposed restructuring of the utility's debt would lead to its members having worse working conditions. In an effort to resolve the dispute, the White House on June 18 officially sent nominations for the board's current members to the Senate. The Trump administration filed its own appeal to the Supreme Court defending the appointments. Story continues In the meantime, the oversight board has asked an appeals court to extend a July 15 deadline it set for the board's seven members to be reappointed or replaced. While the Boston-based 1st U.S. Circuit Court of Appeals declined in its February ruling to void actions taken by the board, the decision created uncertainty as the panel continues its efforts to restructure Puerto Rico's debt and pension obligations. Congress created the board in 2016 to address Puerto Rico's fiscal crisis. The law stated that the board is part of the U.S. territory's government, not a separate federal agency, and that the president can appoint members without Senate approval from a list approved by lawmakers. The appeals court said that members are federal officers and therefore must be confirmed by the Senate. The board argues that because Puerto Rico is a territory not a state, the appointments clause does not apply. (Reporting by Lawrence Hurley; additional reporting by Karen Pierog; editing by Grant McCool)
What Makes HomeTrust Bancshares, Inc. (NASDAQ:HTBI) A Great Dividend Stock? Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Dividend paying stocks like HomeTrust Bancshares, Inc. ( NASDAQ:HTBI ) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. HomeTrust Bancshares has only been paying a dividend for a year or so, so investors might be curious about its 1.0% yield. The company also bought back stock during the year, equivalent to approximately 5.0% of the company's market capitalisation at the time. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this. Click the interactive chart for our full dividend analysis NasdaqGS:HTBI Historical Dividend Yield, June 20th 2019 Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Looking at the data, we can see that 8.2% of HomeTrust Bancshares's profits were paid out as dividends in the last 12 months. Given the low payout ratio, it is hard to envision the dividend coming under threat, barring a catastrophe. We update our data on HomeTrust Bancshares every 24 hours, so you can always get our latest analysis of its financial health, here. Dividend Volatility Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. With a payment history of less than 2 years, we think it's a bit too soon to think about living on the income from its dividend. Its most recent annual dividend was US$0.24 per share, effectively flat on its first payment one years ago. Story continues We like that the dividend hasn't been shrinking. However we're conscious that the company hasn't got an overly long track record of dividend payments yet, which makes us wary of relying on its dividend income. Dividend Growth Potential Examining whether the dividend is affordable and stable is important. However, it's also important to assess if earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see HomeTrust Bancshares has grown its earnings per share at 26% per annum over the past five years. The company is only paying out a fraction of its earnings as dividends, and in the past been able to use the retained earnings to grow its profits rapidly - an ideal combination. Conclusion When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. Firstly, we like that HomeTrust Bancshares has a low and conservative payout ratio. We were also glad to see it growing earnings, although its dividend history is not as long as we'd like. HomeTrust Bancshares has a credible record on several fronts, but falls slightly short of our standards for a dividend stock. You can also discover whether shareholders are aligned with insider interests by checking our visualisation of insider shareholdings and trades in HomeTrust Bancshares stock. We have also put together a list of global stocks with a market capitalisation above $1bn and yielding more 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor 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.
Pelosi slams Trump administration for delaying Harriet Tubman on $20 bill: 'An insult to the hopes of millions' House Speaker Nancy Pelosi called out the Trump administration’s decision to delay putting former slave and abolitionist Harriet Tubman on the $20 bill, calling it “an insult to the hopes of millions.” “It is an insult to the hopes of millions that the Trump Administration is refusing to honor Harriet Tubman on our $20 bill,” Pelosi tweeted Thursday morning. “This unnecessary decision must be reversed.” The bill’s new design replaced President Andrew Jackson, a slave owner who backed the removal of Native Americans, with Tubman, who freed hundreds of slaves as the “conductor” of the Underground Railroad and worked as a Union spy during the Civil War. It was set to be released in 2020 to commemorate the 100th anniversary of the 19th Amendment, which gave women the right to vote. But in May, Treasury Secretary Steve Mnuchin announced during a House Finance Committee hearing that there would be a delay in the redesign. He said the new bill would not be ready for release for at least eight years. "The primary reason we’ve looked at redesigning the currency is for counterfeiting issues,” Mnuchin said when pressed by Rep. Ayanna Pressley, D-Mass. “Based upon this, the $20 bill will now not come out until 2028.” House Speaker Nancy Pelosi and Harriet Tubman (Photo illustration: Yahoo News; photos: Al Drago/Reuters, LOC via Reuters, AP) The updated design, in which Tubman would replace Jackson on the front of the $20 note and move Jackson to the back, was initially announced in 2016 by then-Treasury Secretary Jack Lew in the Obama administration. Trump, then a presidential candidate, called the decision "pure political correctness" and praised Jackson as “somebody that really was very important to this country." Trump suggested Tubman be put on the $2 bill or “another bill” instead. But a month after Mnuchin’s announcement, the New York Times reported that the design was “completed in late 2016," after “extensive work was well underway,” possibly lining up perfectly with the timeline of when the bill was originally set to be unveiled in 2020. A descendant of Tubman said the delay "smacks of racism," and supporters cried foul at the “administration’s decision to drag their feet,” despite having a design for the bill. Story continues In response, Mnuchin said in a statement that his “first responsibility is to ensure all security and anti-counterfeiting measures are properly taken in accordance with [the Bureau of Engraving and Printing’s] mandates.” “The suggestion that this process is being stalled is completely erroneous,” he said. In a separate statement, Director of the Bureau of Engraving and Printing Len Olijar said, “No Bureau or Department official has ‘scrapped’ anything; it is too early to develop an integrated concept or design until security features are finalized.” “Everything remains on the table,” he added. Nonetheless, Senate Minority Leader Chuck Schumer, D-N.Y., on Wednesday — or Juneteenth , which commemorates the end of slavery in the U.S. — requested that the Treasury Department’s inspector general open an investigation into the agencies involved in the design and its delay. “We do not know the real reason for these decisions, but we do know that during his campaign, President Trump referred to efforts to replace President Jackson’s likeness on the front of the $20 note as ‘pure political correctness,’” Schumer wrote . The Democratic leader called Mnuchin’s explanation for the delay “simply not credible,” considering “all the resources and expertise of the U.S. Treasury and Secret Service.” _____ 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
Why This CEO Thinks Esports Is The Best ETF Opportunity Benzinga'sFintech Focus Podcastfeatures conversations with the biggest names in fintech. Subscribe to theFintech Focus newsletterto get a roundup of industry news delivered to your inbox weekly, and check out upcoming programming atBenzinga events. When you think about hot sectors, what comes to mind? Crypto? Cannabis? How about video games? In thisepisodeof the Fintech Focus podcast, Evolve ETFS CEO and Founder Raj Lala talks with Benzinga about why he believes ETFs are ideal for capturing growth in new and evolving industries, and why their new e-gaming ETF, HERO, will be among the hottest performers in the space. In The Beginning Before launching Evolve ETFs in 2017, Lala had an impressive track record in the financial space, running retail for Fiera Capital and spearheading the launch Jovian Asset Management, part of the larger Jovian Capital. Lala eventually moved on to head the Canadian branch of WisdomTree ETFs, one of the largest ETF providers in the world. However, while running WisdomTree, Lala missed the entrepreneurial independence he had with Jovian Asset Management. Following that feeling, Lala noticed that the Canadian ETF space was overly commoditized and saw the potential in non-traditional ETFs to thrive. “I mean, when you look at the ETF space in Canada today, there's over 800 funds,” Lala said. “We have an oversupply of products, but many of them are commoditized versions of each other. I didn't feel that this country needed another TSX 60 ETF or another Dow 30 ETF. I wanted to focus in on really two pillars to the business, one that was more underserved and the other that was unserved in the marketplace.” Generating An Idea When evaluating a fund idea, Evolve ETFs attempts to avoid “fad” industries by looking closely at sectors and technologies with a good long-term investment thesis behind them. However, Lala believes there is first mover advantage in the Canadian market with these cutting edge areas of the market, such as the continued demand increase for cybersecurity services by governments and corporations. “When we launched Canada's first cyber security ETF, everyone agrees that cyber crime's going to continue to increase and the demand for cybersecurity services and spending by our government agencies and by Fortune 500 companies is going to continue to increase to protect themselves from cyber breaches,” Lala said. “Therefore, it makes a great long term investment thesis.” Still, Lala has run up against investors wary of particular ETF ideas, but it’s usually because clients do not always realize how quickly industries are evolving. Lala explained, “We tend to overestimate the kind of changes that are going to take place over the next two years. We tend to underestimate the kind of changes that are going to take place over the next 10 to 15 years. To me, that's the hardest part: convincing people that the world is changing significantly, and your day to day life is going to change significantly with the improvements in technology.” Game On In June, Evolve ETFs launched the Evolve E-Gaming Index ETF (TSX:HERO) Canada’s first esports ETF. Initially, Lala himself was skeptical of what colleagues and investment advisors were telling him about gaming’s market potential. However, after performing some research and realizing that there are nearly2.2 billion ‘gamers’in the world across an array of demographics and revenue streams, he was sold. “It's not just your teenage kid in their basement playing all night,” Lala said. “It's 45-year-olds waking up on Saturday morning and going on at the same time as their other 45-year-old friends and playing an esport together against other teams. So, I realized after doing a lot more research how big the potential was for that market, and that's why we decided to file for the first egaming ETF in the country.” That aspect of addressing ignored or underserved markets has itself become an emerging feature of ETFs. Thematic investing now allows individual investors to demonstrate and hold stake in specific interests or beliefs, which prompted Lala to pursue funds like Evolve’s Gender Diversity ETF. “It (the idea) could be a view on a sector like autonomous cars or egaming,” Lala said. “But it can also be a view of society. They're (millennials) very supportive of supporting climate change. They're very supportive of increasing gender diversity in the workplace. So, you have to move with that demographic.” The Active/Passive Challenge While Evolve’s mission is very much forward-looking, that comes with the challenge of effectively communicating how their products are built to function. New investors might be unaware of what an ETF is, while more seasoned traders might just see them as a way to access cheap beta. But Lala is keen to make sure Evolve caters to all kinds of investment styles and objectives by offering both indexed and activity managed ETFs. “One of the reasons why I launched activity managed ETFs is because I felt that, from an advisor's perspective, it's much easier to jump from actively managed mutual funds to actively managed ETFs versus jumping from actively managed mutual funds all the way to pure beta, cheap, passive ETFs,” Lala said. This mission to cater to individual trader types also informed how Evolve prioritizes lines of communication, between them and investment advisors and, eventually, to investors themselves. “Today, probably about 30% to 35% of their [investment advisor] time is being spent on compliance,” Lala said. “The challenge for us and a lot of issuers out there is getting facetime with the investment advisor, and many times that's because they are burdened with all of these extra operational and compliance work.” This week’sepisodeis sponsored by Evolve ETFs. Listen to the full podcast below for more. See more from Benzinga • This CEO Thinks Big Tech Enables Data Breaches • From Kyrgyzstan To London: How This CEO Is Trying To Revolutionize Productivity In Financial Services • Fintech Focus Rewind: What Does Venmo's First Investor Think Is Missing In Fintech? © 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
PHOTOS: They fled Venezuela's crisis by boat - then vanished The niece of Maroly Bastardo, who, along with her children, her husband's sister, uncle and father, disappeared in the Caribbean Sea after boarding a smuggler's boat during an attempt to cross from Venezuela to Trinidad and Tobago, at her relatives' home in El Tigre, Venezuela, on June 3. (Photo: Ivan Alvarado/Reuters) GUIRIA, Venezuela — A taxi dropped Maroly Bastardo and her two small children by a cemetery not far from the shore in northeast Venezuela. She still had time to change her mind. Eight months pregnant, Bastardo faced forbidding choices in a nation whose economy has collapsed: Give birth in Venezuela, where newborns are dying at alarming rates in shortage-plagued maternity wards. Or board a crowded smuggler's boat bound for Trinidad, the largest of two islands that make up the Caribbean nation of Trinidad and Tobago. Her husband, Kennier Berra, had landed there in February, found work and beckoned her to join him. Bastardo's mother, Carolina, begged her to stay. Neither Bastardo nor her children could swim. Barely three weeks earlier, 27 people had gone missing after a migrant boat went down in the narrow stretch of water separating Venezuela from Trinidad. The 20-kilometer strait, known for its treacherous currents, is nicknamed the Dragon's Mouths. But the 19-year old hairdresser was determined. On May 16, she and the kids packed into an aging fishing vessel along with 31 other people, including three relatives of her husband. They snapped cellphone photos from the shore near the port town of Guiria, where thousands of Venezuelans have departed in recent years, and messaged loved ones goodbye. The craft, the Ana Maria, never arrived. No migrants or wreckage have been found. A girl holds on to a boat while playing near where Maroly Bastardo disappeared in the Caribbean Sea, in Guiria, Venezuela, on May 24. (Photo: Ivan Alvarado/Reuters) A man believed to be the boat's pilot, a 25-year-old Venezuelan named Alberto Abreu, was plucked from the sea on May 17 by a fisherman and taken to nearby Grenada. Abreu told his rescuer the Ana Maria had sunk the night before. He fled before police could complete their investigation, Grenadian authorities said, and hasn't been spotted since. Bastardo's anguished mother, Carolina, clings to hope that perhaps a lesser tragedy has befallen her daughter and grandchildren. She prays smugglers are holding them hostage to extract more money and that any day now she will get the ransom call. Story continues "My heart tells me they are alive," Carolina said. "But it's a torture." The disappearance of Bastardo, five relatives and her unborn child underscores the ever-more perilous lengths Venezuelans are taking to escape a nation in freefall. Years of economic mismanagement by the socialist government have crippled the oil-rich nation with hyperinflation, shortages and misery. An estimated 4 million people — about 12 percent of the populace — have fled the South American country in just the past five years. The vast majority have traveled overland to neighboring Colombia and Brazil. But in images reminiscent of desperate Cubans fleeing their homeland in decades past, Venezuelans increasingly are taking to the sea in rickety boats. A customer outside a local market in El Tigre, Venezuela, on June 2. (Photo: Ivan Alvarado/Reuters) Prime destinations are the nearby islands of Aruba, Curacao, Grenada, and Trinidad and Tobago off Venezuela's Caribbean coast. Formerly welcoming of Venezuelans, who once brought tourist dollars, all have clamped down hard on these mostly impoverished migrants. Their governments have tightened visa requirements, increased deportations and beefed up coast-guard patrols to intercept smugglers' vessels. Trinidad and Tobago, with a population of more than 1.3 million people and among the highest incomes in the region, has been a particular magnet. Since 2016, almost 25,000 Venezuelans have arrived in Trinidad, according to government figures, many without documentation. The United Nations last year estimated 40,000 Venezuelans were living in Trinidad, straining the government's ability to assist them. Traffickers have been known to abandon their human cargo in rough waters and force female and child passengers into prostitution. A shortage of spare parts in Venezuela means boats often take to sea in disrepair. Most migrants leave Guiria in open, low-slung wooden vessels with patched hulls and jury-rigged outboard motors. Smugglers often stuff these boats well beyond their 10-person capacity, locals familiar with the trade told Reuters. But for Maroly Bastardo, the grinding hardships of life in Venezuela loomed as the greater danger. She was feeling exhausted and increasingly anxious about her health and that of the baby in the event of a difficult labor. "Things are too rough here girl," Bastardo texted an aunt in the days leading up to her departure from Venezuela. "I can't give myself the luxury of staying here all beat down." Reuters reconstructed Bastardo's ill-fated journey in interviews with her family members, friends and the relatives of others missing from the Ana Maria, along with authorities and people involved in the human smuggling trade. Carolina Gil shows a picture of her daughter Maroly Bastardo, at her home in El Tigre, Venezuela, on June 4. (Photo: Ivan Alvarado/Reuters) A FAMILY'S DESCENT Bastardo grew up in El Tigre, an interior boomtown in Venezuela's famed Orinoco Oil Belt, the source of much of the nation's oil wealth. Carolina, Bastardo's mother, worked in the kitchen of a fancy hotel that catered to visiting oil executives. Bastardo attended private school and talked of becoming a doctor. She and her little sister, Aranza, sang songs in the bedroom they shared. The good times faded with mismanagement of state-run oil company PDVSA by late President Hugo Chavez and his successor Nicolas Maduro. With government loyalists at the helm of the company, oil revenue funded social programs while basic maintenance and investment tumbled. Skilled petroleum professionals fled for opportunities abroad. Despite possessing some of the world's largest oil reserves, Venezuela has seen oil production slump by about 75% since the turn of the century, when it was producing 3 million barrels a day. The fallout hit El Tigre hard. The swanky hotel closed its doors and Carolina lost her job. Bastardo quit school at age 16 to earn a few dollars a week cutting hair. She and Berra, a construction worker, had two children, Dylan and Victoria. With another baby on the way - a little boy they planned to name Isaac Jesus - Berra left in February for Trinidad. He found a job frying chicken and laid plans for his family to follow. Bastardo would require a Cesarean section, her third. The prospect of giving birth in the local hospital terrified her, her mother said. Venezuela's national health care system, once considered a model for Latin America, is now plagued by shortages of imported drugs, equipment and even basics like rubber gloves. Thousands of doctors and nurses, their salaries ravaged by inflation, no longer show up for work. A sign reading "Restricted Access" at the house of Maroly Bastardo, in El Tigre, Venezuela, on June 3. (Photo: Ivan Alvarado/Reuters) At the Luis Felipe Guevara Rojas Hospital in El Tigre, signs at the maternity ward inform women in need of Cesareans to bring their own antibiotics, needles, surgical sutures and IV drip. Even electricity isn't a given. Doctors there said the power fails almost daily, forcing them to rely on backup generators. Infant mortality rose sharply, to 21.1 deaths per 1,000 live births in 2016 from 15 deaths per 1,000 live births in 2008, reversing nearly two decades of progress, according to a study published in January in The Lancet medical journal. Mothers, too, are dying at higher rates during childbirth, the study said. Some 11,466 babies died before their first birthday in 2016, up 30% from the year before, according to the most recent figures from Venezuela's Health Ministry. "Any woman who gives birth in a Venezuelan hospital is running a risk," said Yindri Marcano, director of the El Tigre hospital. Trinidad would almost certainly have better medical care, Bastardo and Berra reckoned. An extra incentive: a child born there would be a citizen and could make it easier for them to obtain legal residency someday. Family members would accompany Bastardo to watch out for her and the little ones, 3-year-old Dylan and Victoria, 2. On April 2, Bastardo, the children, and her sister-in-law Katerin traveled 500 kilometers by taxi to the port of Guiria. Located on Venezuela's remote and lawless Paria Peninsula, the city is known as a hub of migrant tracking and drug running. El Tigre city, the hometown of Maroly Bastardo, on June 2. (Photo: Ivan Alvarado/Reuters) There they joined Berra's father, Luis, and his Uncle Antonio, who would also make the trip. The six settled into a rundown hotel above a Chinese restaurant to make final preparations. They hung out with a friend of Luis's, Raymond Acosta, a 37-year-old local mechanic. Luis took charge of securing their places in a smuggler's boat. A construction worker, he and his wife had already emigrated to Trinidad and had helped other relatives make the journey in recent years. Acosta said Luis had negotiated a price of $1,000 for all six members of the party: $400 payable up front, with the balance due in Trinidad, U.S. dollars only. But as the departure approached, the smuggler jacked up the price. They would need an extra $500 cash up front. Rather than back out, Luis had his wife in Trinidad drain their savings, and he arranged for a contact there to transport the cash to Guiria. Another setback followed on April 23: A migrant boat heading for Trinidad with 37 passengers overturned in the Dragon's Mouths. Rescuers found nine survivors and a corpse; the rest remain missing, according to Venezuela's Civil Protection and Disaster Management Authority. Smugglers hunkered down for a few weeks, according to people involved in the boat trade in Guiria. The family's crossing was delayed. News of the accident unnerved Bastardo's mother in El Tigre. The night before the scheduled departure, Carolina begged her daughter to reconsider. Bastardo replied via text: "Mothers have to do what they can to help their children....Don't worry. Better times are coming." The maternity department of Felipe Guevara Rojas Hospital in El Tigre, Venezuela, on June 3. (Photo: Ivan Alvarado/Reuters) PHOTOS, TEXTS, THEN SILENCE On Thursday, May 16, Acosta took the six voyagers to a taxi stand, where they said their goodbyes around 3 p.m. They were headed to the small fishing village of La Salina, 4 kilometers from Guiria, to meet their boat, and were relieved to be finally getting underway, Acosta said. He said he felt uneasy that none of the family took a life jacket in case the smugglers didn't have enough to go around. He also fretted about the possibility of an overloaded boat. "People are now more desperate," Acosta said. "I always told Luis that they shouldn't go if there were too many passengers on board." Before they boarded, Bastardo snapped a cellphone photo of Katerin, Dylan and Victoria with their backs to the camera, staring out to sea. She sent it to her family. The plan was to arrive at the Trinidadian port of Chaguaramas under cover of darkness. The 70-kilometer journey from Guiria typically takes about four hours, putting them in port around 8:30 p.m. at the latest. Luis wanted his son there early. "At 6.30 in Chaguaramas, be waiting," he texted Berra at 4:37 p.m. as their voyage got underway. Those who know the route say pilots headed for Chaguaramas carrying migrants typically navigate along the coastline until reaching the eastern tip of the Paria Peninsula around nightfall. At that point, the lights of Trinidad’s towns are visible as they prepare to enter the final 20-kilometer stretch, the Dragon's Mouths. (For a graphic on the sea route, see: https://tmsnrt.rs/2X9VqVn) Evening turned to night. The Ana Maria didn't show. Berra said he paced anxiously until police arrived at midnight on the Chaguaramas dock and told him to leave. He said he returned early Friday morning and waited all day and deep into the second night. Still nothing. He repeated the vigil on Saturday. "After the first sinking, Maroly was afraid, but she still wanted to be here with us," Berra said in a phone interview from Trinidad. Maroly Bastardo's home, in El Tigre, Venezuela, on June 3. (Photo: Ivan Alvarado/Reuters) Back in El Tigre, Bastardo's family was growing uneasy. She and the others were not returning text messages. On Friday, they heard instead from someone identifying himself only as Ramon. Locals in Guiria said Ramon had helped arrange for their relatives to cross by boat to Trinidad without documents, including on the Ana Maria. The vessel had engine trouble, Ramon wrote, but would soon be on its way. "We are going to change the motors and continue," Ramon said in text messages viewed by Reuters. In a telephone interview, Ramon said he works for an operation that takes people to Trinidad legally, with a limit of 10 passengers per vessel. He said he was simply passing along information given to him by an unidentified smuggler to ease the family’s fears. He declined to give his surname and denied he was involved in any illicit activity. By Saturday, May 18, reports of the Ana Maria's disappearance had surfaced in the news and social media. A local resident points at an area nicknamed the Dragon's Mouths, where Maroly Bastardo disappeared in the Caribbean Sea, in Guiria, Venezuela, on May 23. (Photo: Ivan Alvarado/Reuters) In an early morning Facebook post, Robert Richards, an American fisherman, said he had found a "young man" on Friday afternoon, floating 50 kilometers offshore of Trinidad, "fighting for his life." Photos accompanying the post showed a figure in a life jacket bobbing near a piece of floating debris. Richards said the man had "been in the water for 19 hours...on a boat that sunk the night before with 20 other people on board, so far no other survivors." Richards, whose Facebook page says he resides in the U.S. Virgin Islands, has not responded to calls and text messages seeking comment. Abreu was identified as the man in the photos by relatives of people on the Ana Maria who saw the Facebook post. Venezuela's Civil Protection agency confirmed he had been rescued. In a May 24 statement, police in Grenada said a man "in need of urgent medical attention" was rescued May 17 by a vessel in waters between Trinidad and Grenada and brought to Grenada for treatment. They said the man, a Venezuelan national, left the hospital without "authorisation." His whereabouts remain unknown. Venezuelan authorities barely searched for the Ana Maria. The Civil Protection authority, in charge of maritime rescue, had no boats to send. Its half-dozen-or-so vessels are all in disrepair or missing parts, said Luisa Marin, an agency official in Guiria. The Venezuelan military sent out a boat from Guiria on Saturday, May 18, two days after the Ana Maria vanished, but the craft malfunctioned after 20 minutes and had to return to harbor, Marin and other locals said. Trinidad's coast guard conducted its own search in Trinidadian waters, but spotted no signs of the Ana Maria or its passengers, National Security Minister Stuart Young said publicly on May 21. A homeless man kneels across from graffiti that reads "Maduro President," in El Tigre, Venezuela, on June 2. (Photo: Ivan Alvarado/Reuters) HOPING AGAINST HOPE With no wreckage or bodies found, some relatives of the missing say they believe the migrants were kidnapped by criminal gangs. But Trinidadian authorities have not presented any evidence that this happened. The National Security Ministry declined to comment. Bastardo's mother, Carolina, 38, says she no longer sleeps. She scours the news and social media for any shred of information. Every time she reads that Trinidadian authorities have apprehended yet another group of undocumented Venezuelan migrants, she wonders if her Maroly might be among them. "It just causes me more agony: Is it her? Is it not her?" Carolina said from her porch in El Tigre, staring into the distance. Bastardo's nine-year-old sibling, Aranza, says she believes her big sister is still alive. The child's birthday is coming up June 30. She tells her mom the only present she wants is to have Bastardo and the others back. (Reuters) Vegetables for sale in El Tigre, Venezuela, on June 2. (Photo: Ivan Alvarado/Reuters) Aranza, sister of Maroly Bastardo, plays outside the family house in El Tigre, Venezuela, on June 3. (Photo: Ivan Alvarado/Reuters) Relatives of the people who disappeared in the Caribbean Sea after boarding a smuggler's boat during an attempt to cross from Venezuela to Trinidad and Tobago, gather outside the coast guard building in Guiria, Venezuela, on May 23. (Photo: Ivan Alvarado/Reuters) A drawing of Venezuelan flag in the room of Maroly Bastardo, at her home in El Tigre, Venezuela, on June 3. (Photo: Ivan Alvarado/Reuters) A view of a trail taken by migrants, in Guiria, Venezuela, on May 24. (Photo: Ivan Alvarado/Reuters) An out-of-service school bus remains near a school on the outskirts at El Tigre, Venezuela, on June 4. (Photo: Ivan Alvarado/Reuters) A vandalized cross in the hometown of Maroly Bastardo, in El Tigre, Venezuela, June 2, 2019. (Photo: Ivan Alvarado/Reuters) A maternity room at Felipe Guevara Rojas Hospital in El Tigre, Venezuela, on June 3. (Photo: Ivan Alvarado/Reuters) An nonoperative oil pump on the outskirts of El Tigre, Venezuela, on June 2. (Photo: Ivan Alvarado/Reuters) An oil pipeline from a petroleum plant crosses a field on the outskirts in El Tigre, Venezuela, on June 2. (Photo: Ivan Alvarado/Reuters) A view of an empty industrial zone in El Tigre, Venezuela, June 2, 2019. (Photo: Ivan Alvarado/Reuters) A whiteboard of the Civil Protection authority shows search operations data of the Ana Maria boat, near where Maroly Bastardo, disappeared in the Caribbean Sea, in Guiria, Venezuela, on May 23. (Photo: Ivan Alvarado/Reuters) Mangoes on the ground on the outskirts of El Tigre, Venezuela, on June 2. (Photo: Ivan Alvarado/Reuters) A view of the room of Maroly Bastardo, at her home in El Tigre, Venezuela, on June 3. (Photo: Ivan Alvarado/Reuters) A sculpture depicting a tiger in El Tigre, Venezuela, on June 2. (Photo: Ivan Alvarado/Reuters) Local residents at a dock at Guiria, Venezuela, on May 23. (Photo: Ivan Alvarado/Reuters) A hair salon that was the workplace of Maroly Bastardo, in El Tigre, Venezuela, on June 4. (Photo: Ivan Alvarado/Reuters) A friend of Maroly Bastardo shows a picture of the boat that Bastardo and her family boarded, in Guiria, Venezuela, on May 24. (Photo: Ivan Alvarado/Reuters) Relatives of Maroly Bastardo show a T-shirt of Maroly at their home in El Tigre, Venezuela, on June 4. (Photo: Ivan Alvarado/Reuters) Children play along the shore of the La Salina area, from where Maroly Bastardo disappeared, in Guiria, Venezuela, on May 24. (Photo: Ivan Alvarado/Reuters) A hotel room where Maroly Bastardo,stayed before disappearing in the Caribbean Sea, in Guiria, Venezuela, on May 24. (Photo: Ivan Alvarado/Reuters) Raymond Acosta, a friend of the family of Maroly Bastardo, talks with Reuters at his house in Guiria, Venezuela, on May 24. (Photo: Ivan Alvarado/Reuters) A taxi driver waits for customers in El Tigre, Venezuela, on June 4. (Photo: Ivan Alvarado/Reuters) A sculpture depicting a tiger in El Tigre, Venezuela, on June 4. (Photo: Ivan Alvarado/Reuters) _____ 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
All You Need To Know About HealthEquity, Inc.'s (NASDAQ:HQY) Financial Health Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as HealthEquity, Inc. (NASDAQ:HQY), with a market capitalization of US$4.5b, rarely draw their attention from the investing community. While they are less talked about as an investment category, mid-cap risk-adjusted returns have generally been better than more commonly focused stocks that fall into the small- or large-cap categories. HQY’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourselfinto HQY here. See our latest analysis for HealthEquity A debt-to-equity ratio threshold varies depending on what industry the company operates, since some requires more debt financing than others. Generally, mid-cap stocks are considered financially healthy if its ratio is below 40%. The good news for investors is that HealthEquity has no debt. This means it has been running its business utilising funding from only its equity capital, which is rather impressive. Investors' risk associated with debt is virtually non-existent with HQY, and the company has plenty of headroom and ability to raise debt should it need to in the future. Given zero long-term debt on its balance sheet, HealthEquity has no solvency issues, which is used to describe the company’s ability to meet its long-term obligations. However, another measure of financial health is its short-term obligations, which is known as liquidity. These include payments to suppliers, employees and other stakeholders. With current liabilities at US$23m, it appears that the company has been able to meet these obligations given the level of current assets of US$365m, with a current ratio of 15.59x. The current ratio is calculated by dividing current assets by current liabilities. However, a ratio above 3x may be considered excessive by some investors, yet this is not usually a major negative for a company. HQY has zero-debt in addition to ample cash to cover its short-term commitments. Its safe operations reduces risk for the company and its investors, however, some degree of debt could also ramp up earnings growth and operational efficiency. Keep in mind I haven't considered other factors such as how HQY has performed in the past. You should continue to research HealthEquity to get a more holistic view of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for HQY’s future growth? Take a look at ourfree research report of analyst consensusfor HQY’s outlook. 2. Valuation: What is HQY 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 HQY is currently mispriced by the market. 3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Actress Jo Joyner ‘wishes she could fancy a woman’ – as Ackley Bridge co-star would make perfect life partner From left: Jo Joyner, podcast host Kate Thornton and Ackley Bridge co-star Sunetra Sarker Actress Jo Joyner says her friendship with one of her Ackley Bridge co-stars has become so close, she sometimes wishes she could take it to the next level. Chatting to Kate Thornton on the latest episode of the White Wine Question Time podcast, Jo joked that she and co-star Sunetra Sarker would make the perfect power couple. “I've said this to Sunetra before: if only I could fancy a woman. We would be a powerhouse. If we just had that last bit of this connection as well, then we could take over the world.” No Angels to Ackley The pair met 15 years ago while auditioning for Channel 4 drama, No Angels , and have recently been professionally reunited on our screens in Ackley Bridge . Throwback Thursday: Jo Joyner and Sunetra Sarker at a magazine launch in 2007 – their friendship started just a few years earlier. Sunetra, who was also in studio for the taping, admitted: “You do fall in friendship.” “You get high,” she explained, “You look forward to seeing each other. You don't need to go out to a nightclub. External influences are not welcome. We just need each other.” Love at first bite? Sunetra also told Kate she remembered thinking that she and Jo would get on really well when they first met. In Jo’s memory, the love affair was sparked the moment Sunetra pulled a chocolate out of her bag and passed it round the waiting room during the painfully long auditions for No Angels. Jo, Kate and Su at the Yahoo studio for a taping of White Wine Question Time. “I think there's something really interesting to say about actors... We literally work for four weeks on some jobs, 10 weeks for some, one day on a job… So, you don't know when you'll ever bump into anybody again. “I think when you do find the kind of connection that makes you want to be friends with each other, it just feels like it's more special.” READ MORE Jo Joyner says Ackley Bridge to tackle tougher subjects in new series What we have works – Sunetra Sarker and husband will live apart half the week Listen to the full episode of Kate Thornton’s White Wine Question Time with Jo Joyner and Sunetra Sarker below or subscribe on Apple or Spotify to get first access to all the celebrity confessions.
Trump administration readying final review of new vehicle fuel economy rules By David Shepardson WASHINGTON (Reuters) - Trump administration officials defended their controversial proposal to freeze fuel efficiency requirements at 2020 levels at a congressional hearing on Thursday and said the proposal would be submitted to the White House for final review in the coming weeks. The administration has rebuffed requests from automakers and some lawmakers to make a last-ditch effort to reach a deal with California to extend national standards after it ended talks in February. The administration plans in the coming months to finalize a dramatic rewrite of fuel efficiency standards through 2026 that would also strip California, the most populous U.S. state, which wants stricter rules to fight climate change, of the right to set its own, tougher emissions rules. The final regulation potentially faces a multi-year legal battle that could leave automakers in limbo about future emissions and fuel efficiency requirements and ultimately decrease the number of U.S. electric vehicles offered by automakers. At a joint five-hour hearing of two House of Representatives Energy and Commerce subcommittees, Democrats cast the administration plan as a blow against efforts to combat climate change and a boon for oil companies. Republicans said it would reduce vehicle prices and rein in California. The Trump administration plan aims to roll back emission standards set by former Democratic President Barack Obama. The Obama administration had made a dramatic jump in fuel efficiency requirements a key part of its climate agenda, and said it would save motorists $1.7 trillion in fuel costs over the life of the vehicles, but cost the auto industry about $200 billion over 13 years. Earlier this month, 17 major automakers including General Motors Co, Volkswagen AG and Toyota Motor Corp urged the White House to resume talks with California to avoid a lengthy legal battle. Automakers warn that the lack of a deal could lead to "an extended period of litigation and instability." Story continues The carmakers urged a compromise “midway” between the Obama-era standards that require annual decreases of about 5% in emissions and the Trump administration’s proposal. Reuters reported in April that officials expected the final rule would include a small increase in the yearly fuel efficiency requirements. Representative Debbie Dingell, a Michigan Democrat whose district is home to many auto plants, implored officials to return to the bargaining table with California. "I am really not interested in a pissing contest between California and this administration," she said at the hearing. Deputy National Highway Traffic Safety Administration chief Heidi King was skeptical of Dingell's idea. "I don't know whether that would achieve the goal," she told Dingell. EPA Assistant Administrator Bill Wehrum said the agency was moving forward to finalize the rules "as soon as possible" after it had engaged in talks with California for about a year. Trump administration officials argued its plan -- which it says will eventually boost U.S. oil consumption by 500,000 barrels of oil daily -- will save lives because it will reduce the forecasted cost of new vehicles and prod more people to sell older, less safe models. Environmentalists and others disagree. Representative Frank Pallone, chairman of the Energy and Commerce Committee, called the Obama standards "our single most important action taken to combat climate change." "So, naturally, the Trump administration is trying to gut those standards as part of its reckless anti-climate agenda," he said. "WE LIKE BIG THINGS" Transportation accounts for 30% of U.S. greenhouse emissions, with light cars and trucks accounting for 60% of that figure. Republicans cast the issue as a divide between rural areas that use more trucks and urban areas where people are more likely to buy electric vehicles. "We like big things. We like big trucks. We like big engines," said Representative John Shimkus, an Illinois Republican whose district covers a heavily rural swath of the eastern part of the state. The Obama-era rules called for a fleetwide fuel efficiency average of 46.7 miles per gallon by 2026, compared with 37 mpg under the Trump administration’s preferred option. Mary Nichols, who heads the California Air Resources Board, told lawmakers Thursday the Trump proposal will cost Americans millions in fuel costs, kill jobs, add smog, undermine the auto industry and worsen the climate crisis. "We have been open to accommodations that would adjust compliance timing and flexibility, that would create new paths to promote innovative technologies and zero emission vehicles, and that would benefit the public,” she said. Environmental Protection Agency Administrator Andrew Wheeler said in a letter to lawmakers on Thursday that California did not negotiate in good faith and said Nichols's written testimony was "false" -- a claim she strongly denied. (Reporting by David Shepardson; Editing by Bill Berkrot and Leslie Adler)
Slack surges 50% in unusual listing, grabs $23 billion valuation (Reuters) - Shares of Slack Technologies Inc surged 50 percent in their debut through a direct listing on Thursday, giving the workplace messaging app owner a valuation of about $23 billion. The stock opened at $38.50, nearly 48% above a reference price of $26 set by the New York Stock Exchange on Wednesday. Slack is the second high-profile technology company after Spotify Technology SA to opt for a direct listing over a traditional IPO. The direct listing could further pave the way for companies looking to go public without the aid of Wall Street underwriters, who charge millions of dollars in fees. (Reporting by Bharath Manjesh in Bengaluru)
Is Kohl's Corporation (NYSE:KSS) A Financially Sound Company? Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Mid-caps stocks, like Kohl's Corporation ( NYSE:KSS ) with a market capitalization of US$7.6b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. Despite this, commonly overlooked mid-caps have historically produced better risk-adjusted returns than their small and large-cap counterparts. Let’s take a look at KSS’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. Don’t forget that this is a general and concentrated examination of Kohl's’s financial health, so you should conduct further analysis into KSS here . See our latest analysis for Kohl's Does KSS Produce Much Cash Relative To Its Debt? KSS's debt levels surged from US$4.0b to US$6.0b over the last 12 months , which includes long-term debt. With this increase in debt, KSS currently has US$543m remaining in cash and short-term investments , ready to be used for running the business. Additionally, KSS has produced US$1.9b in operating cash flow during the same period of time, resulting in an operating cash to total debt ratio of 31%, indicating that KSS’s operating cash is sufficient to cover its debt. Can KSS pay its short-term liabilities? Looking at KSS’s US$2.8b in current liabilities, the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.66x. The current ratio is the number you get when you divide current assets by current liabilities. Generally, for Multiline Retail companies, this is a reasonable ratio since there is a bit of a cash buffer without leaving too much capital in a low-return environment. NYSE:KSS Historical Debt, June 20th 2019 Is KSS’s debt level acceptable? KSS is a relatively highly levered company with a debt-to-equity of 59%. This is not uncommon for a mid-cap company given that debt tends to be lower-cost and at times, more accessible. We can check to see whether KSS is able to meet its debt obligations by looking at the net interest coverage ratio. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In KSS's, case, the ratio of 5.86x suggests that interest is appropriately covered, which means that debtors may be willing to loan the company more money, giving KSS ample headroom to grow its debt facilities. Story continues Next Steps: KSS’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. This may mean this is an optimal capital structure for the business, given that it is also meeting its short-term commitment. This is only a rough assessment of financial health, and I'm sure KSS has company-specific issues impacting its capital structure decisions. I recommend you continue to research Kohl's to get a better picture of the mid-cap by looking at: Future Outlook : What are well-informed industry analysts predicting for KSS’s future growth? Take a look at our free research report of analyst consensus for KSS’s outlook. Valuation : What is KSS worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether KSS is currently mispriced by the market. Other High-Performing Stocks : Are there other stocks that provide better prospects with proven track records? Explore our free 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 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.
'Extreme Presidential Harassment.' Trump Takes to Twitter to Rail Against Democrats After Rally President Donald Trump held a rally in Orlando, Fla., and it included some of his most infamous 2016 campaign lines, echoed in histweetsthe morning after. Hillary Clinton, the Russia investigation, “rigged” in capital letters, and an attack on the media were part of the presidential tweetstorm we all have grown accustomed to these past few years. Trump, who often tweets in the early morning while watching Fox News, began a bit later in the morning than usual by writing that “Dems are very unhappy with the Mueller Report.” He was referring to the heavily-redacted report issued by former special counsel Robert Mueller regarding the investigation into whether Trump or his 2016 campaign team had colluded with Russia or committed any other crimes in the process regarding the election. The president gave a breakdown of the Russia investigation in the re-election speech, saying in characteristic hyperbole with no follow up evidence that “no one has been tougher on” Moscow than he has. He continues to say the report found no evidence of collusion after issuing 500 subpoenas and conducting numerous interviews. However, Mueller said during his press briefing on May 29 his team investigated 10 possible instances of obstruction of justice but would not make a decision to prosecute the president based on the evidence. Democrats have run with that point and House Majority Leader Nancy Pelosi is set to view a “less redacted” version of the Mueller report this week. “I really don’t trust the attorney general of the United States” William Barr, Pelosi said after Barr had refused to turn over an unredacted version of the report plus all of the evidence Mueller’s team had gathered to reach the conclusions in the report. The attorney general has been held in contempt by House Judiciary Committee. Both it and the House intelligence committee are conducting investigations into Trump’s possible obstructions of justice, but have hit a roadblock in interviewing former White House Communications Director Hope Hicks. Democrats on the judiciary committee said a White House lawyer has indicated Hicks has “blanket immunity” from discussing her time working for the president, particularly six specific incidents the committee wants to ask about. Trump tweeted the questioning of Hicks and continued investigations were “extreme Presidential Harassment” and quickly launched into a renewed attack on “crooked Hillary,” who he said was given “complete immunity” by Democrats. As chants of “Lock her up!” could be heard from the crowd in the Florida convention hall, reminiscent of so many political rallies on the 2016 campaign trail, Trump noted: “If I got a subpoena for emails, if I deleted one email, like a love note to Melania, it’s the electric chair.” He tweeted Clinton “acid washed” more than 33,000 emails following a subpoena to produce them, a point he raised during his speech as well, but is not accurate, according to an FBI investigation into the matter which concluded there was no wrongdoing. “That is real obstruction that the Dems want no part of because hearings are RIGGED,” he angrily tweeted and tweeted the sentiment again in all capital letters. It is unclear, however, what he means by using that term. Trump used term “witch hunt,” something he has tweeted well over 200 times, and wrote that the “fake news media” are “partner[s] in crime” with Congressional Democrats. He claimed he would have been up in polls “by 20 points” if it had not been for those two factors, but wrote: “I’m winning away!” to cap it off. —2020Democratic primary debates: Everything you need to know —The campaign finance power behindTrump impeachment efforts —Not every state is restrictingabortion rights—some are expanding them —Richard Nixon‘s “Western White House” is back on the market—at a discount —Trump administration to use former Japanese internment camp to housemigrant children Get up to speed on your morning commute withFortune’sCEO Dailynewsletter.
Collector is 'beyond obsessed' with Nikes: 'I once had 600 pairs of brand new Air Jordans in my size' Jordan Michael Geller of Portland, Ore., is “beyond obsessed” with Nike sneakers . “I think about them all the time,” he says. “I dream about them.” Growing up in Southern California, Geller recalls, “My parents would not buy me Air Jordans because they were way too expensive. So I had to wait until I was away at college and I had some of my own money and I could finally afford to get my first pair.” It was 1996, and he chose the black and red patent-leather wrapped Air Jordan 11, which is still his favorite. “Times have definitely changed a lot but my love of the Air Jordan has not,” Geller says, noting that he and his wife were married on 11/11, for which they each broke out a fresh pair of Nike Jordan 11s . “We wore them that one day, and we never wore them again.” Jordan Michael Geller with just a few pairs. (Photo: Yahoo Lifestyle) Geller started collecting sneakers, he explains, “much like other sneaker collectors, where I was just buying the shoes that I loved.” Eventually, he had an idea to build and curate the now-defunct Shoezeum , in Las Vegas, which was “the most comprehensive collection of Nikes in the world, and the world’s first sneaker museum.” That was right around the time when his 2,504 pairs of shoes (only 10 of which were not Nikes) had earned him a spot in the Guinness Book of World Records for the world’s largest sneaker collection. And though he shut the museum down in 2012, after realizing that “having a sneaker museum is just not sustainable,” he’s still collecting, and currently has around 300 pairs. “At one point,” he recalls, “I had 600 pairs of brand new Air Jordans in my size. I’ve spent millions of dollars on Nikes over the years.” The most money Geller has ever spent on a single pair? A cool $11,200, which went to charity. With the beloved Air Jordan. (Photo: Yahoo Lifestyle) Although he did get to meet Michael Jordan, back in 2011, he says he controlled himself from gushing and comparing their names and chatting about sneakers, and instead just shook his hand. Geller, who has a law degree but has never practiced law, has instead been focused on being a full-time collector, trader and seller. And he still has enough shoes that the CEO of Nike pays him visits occasionally — despite the fact that he was once banned from Nike outlet stores for buying and reselling their shoes. Story continues Since then, he’s made peace with the brand, which has flown him to All-Star Games and other events to show off his Jordans. Though his current passion is for the very earliest of Nikes — including an original Nike moon shoe found buried in the yard of Nike cofounder Bill Bowerman, who used a waffle iron to make the shoe’s signature soles. View this post on Instagram A post shared by shoezeum (@shoezeum) on Jan 28, 2019 at 2:41pm PST Another beat-up pair in Geller’s collection had been worn by runner Mark Covert, and were the first pair of Nike waffles to be worn across a finish line in competition. He noticed the shoes on Facebook and pursued Covert for nine months, he says, before he could convince him to sell. Now, he says, “They’re my holy grail.” View this post on Instagram A post shared by shoezeum (@shoezeum) on Feb 17, 2019 at 4:02pm PST The vintage waffles are, of course, among the many pairs he’d never sell or trade, either due to their history or what an athlete was able to accomplish while wearing them. “And other times, it’s about the chase, and what I had to do to get my hands on the shoes,” Geller explains. In any event, he says, “I’ll never stop collecting.” Read more from Yahoo Lifestyle: This teen is so obsessed with Funko Pops, he has 1,300 of the colorful collectibles Meet OG Ma — the mother and Chinese immigrant who’s obsessed with Supreme fashion ‘I have a fascination with pizza’: Why this guy eats 700 slices a year — and collects pizza boxes from around the world Follow us on Instagram , Facebook and Twitter for nonstop inspiration delivered fresh to your feed, every day.
This top strategist thinks super free money from the Federal Reserve is here to stay The Federal Reserve may be poised to unleash its bazooka to jumpstart a trade war ravaged U.S. economy this year. The bullets inside that bazooka: aggressive rate cuts, hints one top strategist. Barclays Chief U.S. Economist Michael Gapen — who expected 75 basis points in cuts going into Fed decision day on Wednesday — reiterated that call on Thursday. Gapen anticipates the increasingly dovish Fed will slash rates by a whopping 50 basis points at its July meeting followed by one more cut later in the year. The Jerome Powell Fed left rates unchanged on Wednesday. But Powell struck another dovish tone in a Q&A with reporters after the decision was announced. The Fed itself cut its forward rate projections for 2020 as well. Powell mostly blamed the U.S. trade war with China and weakening economic data as reasons for the dovishness. “It’s pretty clear the Fed is setup to ease policy at the July meeting,” Gapen said on Yahoo Finance’sThe First Trade. To be sure, Gapen’s call is one of the more aggressive on Wall Street. Most strategists Yahoo Finance has talked with are looking for two rates this year. The main risk to Gapen’s forecast is a “more favorable” outcome to the G20 meeting this month and stabilization in economic data. “Our view is that the data is slowing. Risks to the outlook have risen. Inflation is soft. And there are trade concerns. It’s not just a trade story — there is plenty of evidence for the Fed to ease given the macro outlook,” Gapen said of his rate call. Brian Sozzi is an editor-at-large and co-host of ‘The First Trade’ at Yahoo Finance. Follow Brian Sozzi him on Twitter@BrianSozzi Read the latest financial and business news from Yahoo Finance • Trump's trade war with China may shock investors this summer • 2 black swans could come out of nowhere and kill stocks this summer • Why scrapping Trump's corporate tax cuts could crush businesses Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,SmartNews,LinkedIn,YouTube, andreddit.
The Quick Read About… President Xi Jinping’s Trip to North Korea What Happened This Week: As anticipation builds for the G-20 meeting between Chinese President Xi Jinping and US President Donald Trump next week in Japan, China’s state broadcaster announced on Monday a surprise state visit by Xi to North Korea for later this week. Why It Matters: While this state visit is intended for an audience of one that’s currently sitting in Washington, it also serves as a reminder to the rest of the world that any lasting resolution on the Korean peninsula still runs through Beijing. China remains North Korea’s main link to the outside world—Beijing is Pyongyang’s largest trade partner, and has been responsible for 90 percent of North Korea’s trade since 2000. China’s decision to join (and actually enforce) UN sanctions against North Korea helped push Kim Jong-un to the negotiating table with the US in the first place. This will be Xi’s first trip to North Korea as president (he previously travelled there in 2008 as China’s vice president), and it will be the first trip to the Hermit Kingdom by a sitting Chinese president since Hu Jintao visited Kim Jong-il back in 2005 . Crucially, this trip is being billed as an actual “state visit”, a departure from the usual designation Beijing uses to describe trips to North Korea (usually referred to as “ official friendly visits ”). South Korea has also endorsed the trip, hoping that Xi’s trip will kickstart the stalled denuclearization talks. There’s also an element of PR damage control here for Xi. Criticism over his dealings with the US on trade, and more recently the mass protests in Hong Kong over the controversial extradition bill, have put Xi on the back foot. Taking this trip to North Korea puts him back in the driver seat of a critical global issue ahead of next week’s showdown with Trump. What Happens Next: The visit will be cordial and filled with pomp, but don’t expect substantial headlines to emerge from the meeting between Xi and Kim. The real measure of Xi’s Pyongyang trip will come one week later when Xi meets with Trump at the G20 in Japan. In the past, Trump has tied China trade talks to Beijing’s support in dealing with the North Korea threat. While that has been lost in recent months as the trade war between the US and China has heated up, Xi may be banking on a last-minute trip to Pyongyang to remind Trump that his most promising foreign policy success to date—engagement with North Korea—requires Xi’s blessing to move forward. While the US currently has the upper hand in trade negotiations with China (evinced by the US decision to include Chinese state-champion Huawei on the Commerce Department’s Entity List, which has brought the company to its knees), China has something that Trump wants, too—a legitimate foreign policy victory that eluded Barack Obama. It’s doubtful that moves the needle much with Trump given how much political capital he has invested in taking a hardline against China, but Xi may be hoping to play to Trump’s ego. That isn’t the worst strategy in the world. Story continues The Key Quote That Sums It All Up: “China was relieved when the talks fell apart in Hanoi, because it was an opportunity for China to play a role in denuclearization talks again… Trump was the first president to say he would deal with the North Korean leader without including China.” – Lee Seong-hyon , director at the Center for Chinese Studies at the Sejong Institute in Seoul. The One Thing to Watch About It: For all the talk of trade wars and nuclear deals, it’s far too easy to overlook the actual human lives that hang in the balance. You need to watch this first-person account of a woman who defected from North Korea at age 13: The One Major Misconception About It: That this North Korea trip for Xi is risk-free. Kim Jong-un has a history of using big international gatherings to take provocative actions. Xi will want Kim to keep quiet while the G20—and more importantly, bilateral talks with Trump—are ongoing next week. Should Kim not fall in line, it will raise questions over how much control over the North Korea situation Xi really has. Even worse, if Kim doesn’t keep quiet while the G20 is underway and decides to test a missile (or nuclear device), it may even lead to speculation that Xi prodded Kim to take aggressive steps, straining US-China relations even further. The One Thing to Say About It at a Dinner Party: While plenty try to draw comparisons, the US approach to North Korea is in no way similar to its approach to Iran, the other big nuclear threat Washington sees out there. While Trump likes to use brash and aggressive rhetoric with both, the reality is that the US has remarkably little leverage over North Korea (especially compared to China), whereas the US has plenty of leverage over Iran via oil and financial sanctions (not to mention the European countries that want to see the Iran nuclear deal remain in place). And that’s exactly the way both situations are currently playing out.
Young people ‘are growing bony bumps on their skulls’ and phones could be to blame The spurs are more common in young people Young people are growing bony bumps at the base of their skulls, Australian researchers have found - and smartphones could be to blame. The protrusions, just above the neck, were found in X-ray images of adult Australians, with researchers analysing 1,200 of the images. The researchers found that 41% of people aged between 18 and 30 had developed the spurs, 8% above average. Lead author David Shahar said, ‘I have been a clinician for 20 years, and only in the last decade, increasingly I have been discovering that my patients have this growth on the skull.’ Read more from Yahoo News UK: Boris Johnson one step closer to becoming Prime Minister 'Neo-nazis' paint swastikas on walls of occupation bunker in Jersey Black cab rapist John Worboys admits to four additional sex attacks Some of the bony bumps were smaller than half an inch, but others were up to 1.1 inches in length, the researchers said. The researchers have suggested that the spurs could be related to the ‘hand held technological revolution’, and specifically the poor posture brought on by using devices such as smartphones. The researchers write, ‘We acknowledge factors such as genetic predisposition and inflammation influence enthesophyte growth. ‘However, we hypothesise that the use of modern technologies and hand-held devices, may be primarily responsible for these postures and subsequent development of adaptive robust cranial features in our sample.’
LED Medical Diagnostics Announces Appointment of New Directors VANCOUVER, BC / ACCESSWIRE / June 20, 2019 / LED Medical Diagnostics Inc. ("LED" or the "Company") ( LMD.V ) is pleased to announce that Mr. George Reznik and Dr. Lou Shuman were appointed to the Company's board of directors during LED's Annual General Meeting, held on June 19, 2019 in Vancouver, BC. George Reznik will also be serving as the Chair of the Audit Committee. George Reznik is the Chief Financial Officer ("CFO") and Corporate Secretary of Intrinsyc Technologies Corporation. Mr. Reznik has more than twenty-five years of experience in executive finance and operations roles with the last twenty years spent at rapidly growing public companies in the high technology industry. He has extensive expertise in international corporate finance, strategic business planning, mergers and acquisitions, business restructuring and growth management, investor relations, and operational management in addition to public company reporting. Prior to joining Intrinsyc, Mr. Reznik was CFO of DDS Wireless in which he was instrumental in execution of a high growth strategic acquisition strategy that doubled revenues with strong profitability in addition to having formerly been the CFO and Chief Operating Officer of Infowave Software, and the Vice President of Finance at Pivotal Corporation where he played a leadership role through its IPO on Nasdaq and its subsequent rapid business growth. Mr. Reznik previously was the Corporate Finance Valuation Practice Leader of Deloitte and was with the firm for over twelve years primarily based in Canada and the UK. Mr. Reznik is a Chartered Professional Accountant - Chartered Accountant (CPA, CA), a Chartered Business Valuator (CBV), a Certified Fraud Examiner (CFE) and holds a Bachelor of Commerce (Honors) degree from the University of Manitoba. He is the Chair of the BC Tech Association CFO Council and was the recipient of the BC Public Company CFO of the Year award in 2017. Lou Shuman, DMD, CAGS, is the president and CEO of Cellerant Consulting Group, dentistry's leading incubator and accelerator. Cellerant services clients that range from venture-funded startups, Fortune 500 dental industry companies, and dental industry associations (such as the ADA). Dr. Shuman is a graduate of Boston University School of Dental Medicine with a specialty in orthodontics. He is a recognized key opinion leader in the fields of dental technology and digital marketing and holds clinical advisory and editorial positions with the dental industry's leading publications, including Dentistry Today, Dental Economics, Inside Dentistry, Dental Products Report, Orthodontic Practice US, Seattle Sleep Education LLC, and Dental Sleep Practice. He authors national columns for Dental Products Report and Dental Economics and is on the boards of the Foundation for Airway Health and the Dental Assisting National Board. Prior to starting Cellerant, Dr. Shuman was president of Pride Institute and Vice President of Clinical Education and Strategic Relations at Align Technology. He is also the co-founder of a new venture-funded technology company, LightForce Orthodontics. Story continues "I am excited to welcome two new members to our board of directors," stated Dr. David Gane, CEO of LED. "Dr. Shuman brings independent dental domain business experience, strategic thinking and many valuable relationships in the dental profession to our board, while Mr. Reznik will contribute his many years of experience in corporate finance, corporate governance and business leadership. Both Dr. Shuman and Mr. Reznik are uniquely talented individuals to help guide us forward in our business growth." LED also announces that James Topham did not stand for reappointment as a director at the Annual General Meeting. "We would like to thank James for his service and contributions to LED," concluded Dr. Gane. About LED Medical Diagnostics LED Medical Diagnostics Inc. is a dental imaging technology provider focused on delivering state-of-the-art imaging software and systems. Through its wholly-owned subsidiaries LED Dental Inc., LED Dental Ltd., and Apteryx, Inc., LED Medical has provided dentists and oral health specialists with advanced diagnostic imaging products and software for over 20 years. LED's proprietary technologies include the VELscope Vx Enhanced Oral Assessment and TUXEDO Intraoral Sensors, in addition to Apteryx's XrayVision, XVWeb and XrayVision DCV imaging software solutions. Backed by an experienced leadership team and dedicated to a higher level of service and support, LED is committed to providing dental practitioners with the best technology available by identifying and adding leading products to its growing portfolio. The Company is currently listed on the TSXV under the symbol LMD, the OTCQB under the symbol LEDIF, as well as the Frankfurt Stock Exchange under the symbol LME. Media Contact: LED Dental Chris Koch Phone: 678.293.9413 Email: chris.koch@leddental.com CorporateContact: LED Medical David Gane, CEO Phone: 604.434.4614 ext 227 Email: david.gane@leddental.com Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. SOURCE: LED Medical Diagnostics Inc. View source version on accesswire.com: https://www.accesswire.com/549391/LED-Medical-Diagnostics-Announces-Appointment-of-New-Directors View comments
Why Guidewire Software, Inc. (NYSE:GWRE) Is A Financially Healthy Company Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as Guidewire Software, Inc. (NYSE:GWRE), with a market capitalization of US$8.2b, rarely draw their attention from the investing community. Despite this, the two other categories have lagged behind the risk-adjusted returns of commonly ignored mid-cap stocks. GWRE’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. Don’t forget that this is a general and concentrated examination of Guidewire Software's financial health, so you should conduct further analysisinto GWRE here. Check out our latest analysis for Guidewire Software GWRE's debt level has been constant at around US$314m over the previous year which accounts for long term debt. At this current level of debt, GWRE currently has US$1.0b remaining in cash and short-term investments , ready to be used for running the business. On top of this, GWRE has generated US$117m in operating cash flow over the same time period, leading to an operating cash to total debt ratio of 37%, signalling that GWRE’s current level of operating cash is high enough to cover debt. At the current liabilities level of US$189m, it seems that the business has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 6.38x. The current ratio is calculated by dividing current assets by current liabilities. However, a ratio above 3x may be considered excessive by some investors, yet this is not usually a major negative for a company. GWRE’s level of debt is appropriate relative to its total equity, at 21%. This range is considered safe as GWRE is not taking on too much debt obligation, which may be constraining for future growth. GWRE’s high cash coverage and appropriate debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow. Furthermore, the company exhibits proper management of current assets and upcoming liabilities. Keep in mind I haven't considered other factors such as how GWRE has been performing in the past. I suggest you continue to research Guidewire Software to get a more holistic view of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for GWRE’s future growth? Take a look at ourfree research report of analyst consensusfor GWRE’s outlook. 2. Valuation: What is GWRE 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 GWRE is currently mispriced by the market. 3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Security Tokens Will Be the 'Killer App' of Cryptocurrency, Overstock CEO Says Bitcoin has been around for more than a decade, yet the question still persists: “What’s the purpose of cryptocurrency?” Even though people have bought and sold billions of dollars of the stuff, it has yet to find a role in everyday life. Now, this search for the cryptocurrency world’s “killer app”—the equivalent of a transformative application like Gmail or Uber—may be over. According to Patrick Byrne, the CEO of Overstock and a longtime booster of digital money, the breakthrough is coming in the form of security tokens. These are units of cryptocurrency that are tied to some real world asset such as real estate, precious metal or fiat currency. Byrne, who was speaking atFortune’sBrainstorm Financeevent on Thursday in Montauk, N.Y., hinted that he would soon be making a major announcement related to security tokens but couldn’t immediately provide details due to regulatory reasons. If Overstock, which was among the first major retailers to let customers pay in Bitcoin, does announce a security token offering, it wouldn’t be the first company to try this. In late 2018, a company called Harbordesigned tokensrepresenting stakes in a student residence, while a luxury hotel in Colorado has attempted to do the same. The Harbor project, however, abruptly fell through this spring amid a dispute with a mortgage lender, and it’s unclear if any similar real estate deals are in the works. Despite such setbacks, the promise of security tokens received a boost this week from the announcement ofFacebook’s Project Libra, which will see a consortium backing the project issue such tokens to accredited investors. All of this comes as the vast majority of activity surrounding cryptocurrency remains highly speculative. According to Alesia Haas, the CFO of Coinbase, over 95% of people buying crypto are doing so purely for speculative reasons. She also spoke, however, of a major change that’s been underway in the last 18 months. Haas said “the utility phase has taken off during this time,” and that there is a new push to make digital tokens—including security tokens—part of traditional financial operations and other aspects of day-to-day commerce. For many ordinary consumers, though, the arrival of crypto’s “killer app” may feel as far away as ever. —Brainstorm Finance 2019: Watch the livestreamof the inaugural conference —Andreessen Horowitz: HowFacebook’s Libra cryptocurrencywill be governed —Welcome to the next generation ofcorporate phishing scams —Western Union and Zelle dishon the competition and talk mobile payments —Millennials arenot basement-dwelling potheads, says Wealthfront CEO Sign up forThe Ledger, a weekly newsletter on the intersection of technology and finance.
L'Oreal Taps its First Female President for the World's Biggest Beauty Brand L’Oreal SA has named the first female president of its flagship cosmetics label, elevating Delphine Viguier-Hovasse to the top job at theworld’s biggest beauty brand. Viguier-Hovasse, who has been running the company’s Garnier unit, succeeds Pierre-Emmanuel Angeloglou as head of L’Oreal Paris. Angeloglou is taking on a new role withLVMH‘s Louis Vuitton, leading strategic missions in fashion and leather. The move comes as L’Oreal wrestles with sluggish growth in its consumer products division, whose drugstore brands have underperformed the units selling high-end perfumes and premium skin care. L’Oreal Paris, which makes products such as True Match foundation and Revitalift wrinkle creams, is the cosmetics giant’s founding division. Viguier-Hovasse will report to Alexis Perakis-Valat, president of L’Oreal’s consumer products division, the company said in a statement. Even as lagging U.S. consumption and a rising interest in niche competitors dragged down growth for mass-market brands, L’Oreal Paris grew faster than the market last year and kept its crown as the world’s biggest beauty brand, L’OrealChief Executive Officer Jean-Paul Agonsaid in a presentation to investors in February. “It’s a tougher battlefield,” Agon said of the U.S., where L’Oreal Paris has dominated drugstore shelves for years. As consumers increasingly turn to online stores for cosmetics, L’Oreal Paris under Angeloglou staged splashy social media events, including live-streamed fashion shows. —Applepartners with Best Buyfor repairs. —President Trump’s Chinatariffs threatens U.S. bridal gownindustry. —GameStop wants to be the“Local Church” of gaming. —It’s all clicking for Wayfair, aFortune500 newcomer. —Sears’seven decades of self-destruction. —Listen to our new audio briefing,Fortune500 Daily. FollowFortuneon Flipboardto stay up-to-date on the latest news and analysis.
Slack's direct listing shows how much we’re obsessed with work Slack (WORK) stock skyrocketed after going public via direct listing on Thursday. The stock began trading at $38.50 on the New York Stock Exchange, nearly 50% higher than the $26reference priceset Wednesday afternoon. Shares of the workplace messaging platform climbed as high as $42 during the trading session, putting Slack’s market cap at over $20 billion. Ten million people (95,000 of them paying customers) spend more than 50 million hours on the platform in a typical work week, according to Slack co-founder and CEO Stewart Butterfield. “Annualized, that’s billions of hours each year and growing,” he said passionatelyduring the first-quarter earnings callearlier this month. That means each user, on average, is spending an hour each day on the app. Slack’s financials show just how much time Americans spend, well, at work. Entire corporate environments have shifted their attention from email to Slack — for group channels and direct messages alike. Workers can access Slack on their desktops or on their phones, suggesting their work can follow them anywhere. Employees can also post funny GIFs and discuss non-work matters on Slack. Now, a purported tool for efficiency is being blamed for promoting the opposite, with pieces likeSlack is ruining workandHow Slack killed my productivitybecoming quite commonplace. But Slack is arguably filling a need for mobile workplace communication, particularly for remote workers. Describing the white space he stumbled upon in 2009, Butterfield eventually launched the first version of the product in 2014. “When we introduced Slack five years ago, the supply hit the demand and that's where we are today. It was a supernova product market fit,” he said. Ahead of its IPO, the team chat appdiscloseda net loss of $31.8 million, or 26 cents per share, for the first quarter. For the second quarter of fiscal year 2020, Slack expects revenue of $139 million to $141 million, a notable slowdown from the 67% annualized growth it reported for the first quarter. If the successful public offerings of cloud computing firm PagerDuty (PD) and video conferencing company Zoom (ZM) are any indication, the business-to-business space may not sound sexy. But it’s teeming with opportunity. It also illuminates how much time Americans are spending in the office — or trying to bring their work outside the office — and entrepreneurs are capitalizing on it. In fact, citing the wide range of industry professionals who use Slack for everything from coordinating job fairs to covering elections, Butterfield calls it “a whole new way of working.” Slack’s only real competitor is Microsoft (MSFT) teams. “Microsoft is a serious competitor to anybody they're competing with I think. But I think that that's been good for us. When you start a product startup, you have to have an irrational belief that it's definitely going to succeed, and it's a thing that everybody wants, and it's inevitable,” co-founder and CTO Cal Henderson told Yahoo Finance last year. “It’s very validating to have such a serious competitor as Microsoft validate that too, that this really is a product category that everybody is going to be using over the next few years.” With half of Slack’s users outside the U.S., the company has yet to fully penetrate any region, and the road ahead is fairly open. “One thing we hear from customers all the time is this,”Butterfield said Monday. “Slack is the kind of thing you don't know you need but once you have it, you can't live without it.” Melody Hahm is a senior writer at Yahoo Finance, covering entrepreneurship, technology and real estate. Follow her on Twitter@melodyhahm. She hostsBreakouts, a monthly interview series for Yahoo Finance featuring up-close and intimate conversations with today’s most innovative business leaders. Read more: • Bombas CEO: We could easily be a billion-dollar brand in the next 5 years • Preet Bharara: College admissions scandal is 'not that different from insider trading' • Two couples turned an axe-throwing hobby into a million-dollar business • How Anjali Sud became Vimeo’s CEO at 34 years old • How a single dad turned weed tours into a $1.8 million business • 3 Dreamers describe how DACA helped them find careers in America • Etsy CEO: We are the voice of the new, digital Main St.
Do Institutions Own Shares In The Goldman Sachs Group, Inc. (NYSE:GS)? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! A look at the shareholders of The Goldman Sachs Group, Inc. (NYSE:GS) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see lower insider ownership in companies that were previously publicly owned. With a market capitalization of US$72b, Goldman Sachs Group is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. In the chart below below, we can see that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about GS. View our latest analysis for Goldman Sachs 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 Goldman Sachs Group does have institutional investors; and they hold 66% of the stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. 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 Goldman Sachs Group, (below). Of course, keep in mind that there are other factors to consider, too. Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Goldman Sachs Group is not owned by hedge funds. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. We can see that insiders own shares in The Goldman Sachs Group, Inc.. It is a very large company, and board members collectively own US$1.2b worth of shares (at current prices). It is good to see this level of investment. You cancheck here to see if those insiders have been buying recently. With a 27% ownership, the general public have some degree of sway over GS. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. It appears to us that public companies own 5.0% of GS. It's hard to say for sure, but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership. It's always worth thinking about the different groups who own shares in a company. But to understand Goldman Sachs Group better, we need to consider many other factors. I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph. But ultimatelyit is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look atthis free report showing whether analysts are predicting a brighter future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Shopify Is Now More Valuable Than Two of Canada’s Oldest Companies (Bloomberg) -- Canada’s Shopify Inc., an e-commerce company that went public four years ago, is now more valuable than Manulife Financial Corp. and Canadian Imperial Bank of Commerce -- two financial institutions that have been around for more than a century. Shopify eclipsed the financial heavyweights in market value on Wednesday after announcing plans to spend $1 billion setting up a network of fulfillment centers in the U.S. and upgrades to its tools merchants use to sell products. Shopify traded at C$438.24 a share at 1 p.m. in Toronto on Thursday, giving it a market value of C$48.8 billion ($36.9 billion) and making the 12th biggest publicly traded company in Canada. Manulife was at C$46.7 billion and CIBC at C$46.4 billion. The Ottawa-based company has surged 132% this year, the top-performer on the S&P/TSX and a bigger advance than any stock on the S&P 500. To contact the reporter on this story: Simran Jagdev in Toronto at sjagdev1@bloomberg.net To contact the editors responsible for this story: Jacqueline Thorpe at jthorpe23@bloomberg.net, ;Jillian Ward at jward56@bloomberg.net, David Scanlan For more articles like this, please visit us atbloomberg.com ©2019 Bloomberg L.P.
Here’s What Hedge Funds Think About BHP Group (BBL) At Insider Monkey we track the activity of some of the best-performing hedge funds like Appaloosa Management, Baupost, and Tiger Global because we determined that some of the stocks that they are collectively bullish on can help us generate returns above the broader indices. Out of thousands of stocks that hedge funds invest in, small-caps can provide the best returns over the long term due to the fact that these companies are less efficiently priced and are usually under the radars of mass-media, analysts and dumb money. This is why we follow the smart money moves in the small-cap space. IsBHP Group (NYSE:BBL)a healthy stock for your portfolio? The smart money is becoming more confident. The number of long hedge fund bets inched up by 6 recently. Our calculations also showed that BBL isn't among the30 most popular stocks among hedge funds. So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio. Let's take a look at the key hedge fund action regarding BHP Group (NYSE:BBL). At Q1's end, a total of 21 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 40% from the fourth quarter of 2018. The graph below displays the number of hedge funds with bullish position in BBL over the last 15 quarters. With hedge funds' sentiment swirling, there exists a select group of noteworthy hedge fund managers who were adding to their holdings considerably (or already accumulated large positions). More specifically,Arrowstreet Capitalwas the largest shareholder of BHP Group (NYSE:BBL), with a stake worth $274.7 million reported as of the end of March. Trailing Arrowstreet Capital was Polaris Capital Management, which amassed a stake valued at $213.9 million. Fisher Asset Management, York Capital Management, and LMR Partners were also very fond of the stock, giving the stock large weights in their portfolios. With a general bullishness amongst the heavyweights, key hedge funds were breaking ground themselves.York Capital Management, managed by James Dinan, created the biggest position in BHP Group (NYSE:BBL). York Capital Management had $98 million invested in the company at the end of the quarter. Jonathan Barrett and Paul Segal'sLuminus Managementalso initiated a $13.6 million position during the quarter. The other funds with new positions in the stock are Michael Hintze'sCQS Cayman LP, Paul Marshall and Ian Wace'sMarshall Wace LLP, and Robert B. Gillam'sMcKinley Capital Management. Let's go over hedge fund activity in other stocks - not necessarily in the same industry as BHP Group (NYSE:BBL) but similarly valued. We will take a look at Paypal Holdings Inc (NASDAQ:PYPL), DowDuPont Inc. (NYSE:DWDP), PetroChina Company Limited (NYSE:PTR), and 3M Company (NYSE:MMM). This group of stocks' market valuations are closest to BBL's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position PYPL,93,3610295,-10 DWDP,61,1910098,-6 PTR,12,124953,-2 MMM,43,441353,7 Average,52.25,1521675,-2.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 52.25 hedge funds with bullish positions and the average amount invested in these stocks was $1522 million. That figure was $948 million in BBL's case. Paypal Holdings Inc (NASDAQ:PYPL) is the most popular stock in this table. On the other hand PetroChina Company Limited (NYSE:PTR) is the least popular one with only 12 bullish hedge fund positions. BHP Group (NYSE:BBL) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately BBL wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); BBL investors were disappointed as the stock returned -5.5% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Hertz Global Holdings, Inc. (HTZ) A Good Stock To Buy? "The end to the U.S. Government shutdown, reports of progress on China-U.S. trade talks, and the Federal Reserve’s confirmation that it did not plan further interest rate hikes in 2019 allayed investor fears and drove U.S. markets substantially higher in the first quarter of the year. Global markets followed suit pretty much across the board delivering what some market participants described as a “V-shaped” recovery," This is how Evermore Global Value summarized the first quarter in itsinvestor letter. We pay attention to what hedge funds are doing in a particular stock before considering a potential investment because it works for us. So let’s take a glance at the smart money sentiment towards one of the stocks hedge funds invest in. Hertz Global Holdings, Inc. (NYSE:HTZ)shareholders have witnessed an increase in enthusiasm from smart money recently. Our calculations also showed that HTZ isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. We're going to view the recent hedge fund action surrounding Hertz Global Holdings, Inc. (NYSE:HTZ). At the end of the first quarter, a total of 26 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 13% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards HTZ over the last 15 quarters. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Icahn Capital LPwas the largest shareholder of Hertz Global Holdings, Inc. (NYSE:HTZ), with a stake worth $421.5 million reported as of the end of March. Trailing Icahn Capital LP was Renaissance Technologies, which amassed a stake valued at $109.3 million. PAR Capital Management, GAMCO Investors, and D E Shaw were also very fond of the stock, giving the stock large weights in their portfolios. As one would reasonably expect, key money managers have jumped into Hertz Global Holdings, Inc. (NYSE:HTZ) headfirst.Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, initiated the largest position in Hertz Global Holdings, Inc. (NYSE:HTZ). Arrowstreet Capital had $21.9 million invested in the company at the end of the quarter. Wilmot B. Harkey and Daniel Mack'sNantahala Capital Managementalso made a $6.9 million investment in the stock during the quarter. The following funds were also among the new HTZ investors: Benjamin A. Smith'sLaurion Capital Management, Matthew Hulsizer'sPEAK6 Capital Management, and Joel Greenblatt'sGotham Asset Management. Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Hertz Global Holdings, Inc. (NYSE:HTZ) but similarly valued. These stocks are Endava plc (NYSE:DAVA), Kinsale Capital Group, Inc. (NASDAQ:KNSL), Installed Building Products Inc (NYSE:IBP), and Tootsie Roll Industries, Inc. (NYSE:TR). All of these stocks' market caps are similar to HTZ's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position DAVA,6,16966,0 KNSL,9,18995,-3 IBP,13,187591,5 TR,16,94425,5 Average,11,79494,1.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $79 million. That figure was $944 million in HTZ's case. Tootsie Roll Industries, Inc. (NYSE:TR) is the most popular stock in this table. On the other hand Endava plc (NYSE:DAVA) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Hertz Global Holdings, Inc. (NYSE:HTZ) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately HTZ wasn't nearly as popular as these 20 stocks and hedge funds that were betting on HTZ were disappointed as the stock returned -16% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Everi Holdings Inc (EVRI) Most investors tend to think that hedge funds and other asset managers are worthless, as they cannot beat even simple index fund portfolios. In fact, most people expect hedge funds to compete with and outperform the bull market that we have witnessed in recent years. However, hedge funds are generally partially hedged and aim at delivering attractive risk-adjusted returns rather than following the ups and downs of equity markets hoping that they will outperform the broader market. Our research shows that certain hedge funds do have great stock picking skills (and we can identify these hedge funds in advance pretty accurately), so let’s take a glance at the smart money sentiment towards Everi Holdings Inc (NYSE:EVRI). Everi Holdings Inc (NYSE:EVRI)shares haven't seen a lot of action during the first quarter. Overall, hedge fund sentiment was unchanged. The stock was in 26 hedge funds' portfolios at the end of the first quarter of 2019. The level and the change in hedge fund popularity aren't the only variables you need to analyze to decipher hedge funds' perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That's why at the end of this article we will examine companies such as INTL Fcstone Inc (NASDAQ:INTL), Verso Corporation (NYSE:VRS), and Laredo Petroleum Inc (NYSE:LPI) to gather more data points. So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio. Let's go over the recent hedge fund action surrounding Everi Holdings Inc (NYSE:EVRI). Heading into the second quarter of 2019, a total of 26 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 0% from the fourth quarter of 2018. By comparison, 28 hedge funds held shares or bullish call options in EVRI a year ago. With hedge funds' sentiment swirling, there exists a few notable hedge fund managers who were adding to their stakes substantially (or already accumulated large positions). The largest stake in Everi Holdings Inc (NYSE:EVRI) was held byIndaba Capital Management, which reported holding $73.7 million worth of stock at the end of March. It was followed by Private Capital Management with a $37.6 million position. Other investors bullish on the company included Renaissance Technologies, Becker Drapkin Management, and Engine Capital. Due to the fact that Everi Holdings Inc (NYSE:EVRI) has faced bearish sentiment from the aggregate hedge fund industry, we can see that there was a specific group of hedgies that decided to sell off their positions entirely by the end of the third quarter. Intriguingly, Didric Cederholm'sLion Pointdumped the largest investment of the "upper crust" of funds monitored by Insider Monkey, totaling an estimated $8.1 million in stock, and Ken Grossman and Glen Schneider's SG Capital Management was right behind this move, as the fund dropped about $7.2 million worth. These moves are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience). Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as Everi Holdings Inc (NYSE:EVRI) but similarly valued. We will take a look at INTL Fcstone Inc (NASDAQ:INTL), Verso Corporation (NYSE:VRS), Laredo Petroleum Inc (NYSE:LPI), and Winmark Corporation (NASDAQ:WINA). This group of stocks' market values are similar to EVRI's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position INTL,15,78246,2 VRS,24,142939,2 LPI,18,187141,4 WINA,7,101640,-1 Average,16,127492,1.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $127 million. That figure was $245 million in EVRI's case. Verso Corporation (NYSE:VRS) is the most popular stock in this table. On the other hand Winmark Corporation (NASDAQ:WINA) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Everi Holdings Inc (NYSE:EVRI) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Hedge funds were also right about betting on EVRI as the stock returned 7.9% during the same period and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Ecolab Inc. (ECL) Most investors tend to think that hedge funds and other asset managers are worthless, as they cannot beat even simple index fund portfolios. In fact, most people expect hedge funds to compete with and outperform the bull market that we have witnessed in recent years. However, hedge funds are generally partially hedged and aim at delivering attractive risk-adjusted returns rather than following the ups and downs of equity markets hoping that they will outperform the broader market. Our research shows that certain hedge funds do have great stock picking skills (and we can identify these hedge funds in advance pretty accurately), so let’s take a glance at the smart money sentiment towards Ecolab Inc. (NYSE:ECL). Ecolab Inc. (NYSE:ECL)shares haven't seen a lot of action during the first quarter. Overall, hedge fund sentiment was unchanged. The stock was in 27 hedge funds' portfolios at the end of the first quarter of 2019. At the end of this article we will also compare ECL to other stocks including Deere & Company (NYSE:DE), Vodafone Group Plc (NASDAQ:VOD), and Norfolk Southern Corp. (NYSE:NSC) to get a better sense of its popularity. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. We're going to view the fresh hedge fund action regarding Ecolab Inc. (NYSE:ECL). At Q1's end, a total of 27 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from the previous quarter. On the other hand, there were a total of 26 hedge funds with a bullish position in ECL a year ago. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. Among these funds,Bill & Melinda Gates Foundation Trustheld the most valuable stake in Ecolab Inc. (NYSE:ECL), which was worth $770.8 million at the end of the first quarter. On the second spot was Cantillon Capital Management which amassed $410 million worth of shares. Moreover, Impax Asset Management, Eagle Capital Management, and AQR Capital Management were also bullish on Ecolab Inc. (NYSE:ECL), allocating a large percentage of their portfolios to this stock. Because Ecolab Inc. (NYSE:ECL) has experienced declining sentiment from the smart money, we can see that there is a sect of hedge funds that elected to cut their full holdings heading into Q3. Intriguingly, Will Cook'sSunriver Managementdropped the biggest investment of the 700 funds tracked by Insider Monkey, valued at an estimated $16.2 million in stock, and Phill Gross and Robert Atchinson's Adage Capital Management was right behind this move, as the fund dumped about $5.5 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience). Let's go over hedge fund activity in other stocks similar to Ecolab Inc. (NYSE:ECL). These stocks are Deere & Company (NYSE:DE), Vodafone Group Plc (NASDAQ:VOD), Norfolk Southern Corp. (NYSE:NSC), and Occidental Petroleum Corporation (NYSE:OXY). This group of stocks' market values resemble ECL's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position DE,31,1412560,-16 VOD,18,438299,0 NSC,47,1869998,0 OXY,35,880306,3 Average,32.75,1150291,-3.25 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 32.75 hedge funds with bullish positions and the average amount invested in these stocks was $1150 million. That figure was $1966 million in ECL's case. Norfolk Southern Corp. (NYSE:NSC) is the most popular stock in this table. On the other hand Vodafone Group Plc (NASDAQ:VOD) is the least popular one with only 18 bullish hedge fund positions. Ecolab Inc. (NYSE:ECL) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. A small number of hedge funds were also right about betting on ECL as the stock returned 3.9% during the same time frame and outperformed the market by an even larger margin. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Itau Unibanco Holding SA (ITUB) A Good Stock To Buy? Hedge funds and other investment firms run by legendary investors like Israel Englander, Jeffrey Talpins and Ray Dalio are entrusted to manage billions of dollars of accredited investors' money because they are without peer in the resources they use to identify the best investments for their chosen investment horizon. Moreover, they are more willing to invest a greater amount of their resources in small-cap stocks than big brokerage houses, and this is often where they generate their outperformance, which is why we pay particular attention to their best ideas in this space. Itau Unibanco Holding SA (NYSE:ITUB)investors should be aware of an increase in support from the world's most elite money managers of late. Our calculations also showed that ITUB isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Let's take a gander at the key hedge fund action encompassing Itau Unibanco Holding SA (NYSE:ITUB). Heading into the second quarter of 2019, a total of 21 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 17% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards ITUB over the last 15 quarters. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. Among these funds,Fisher Asset Managementheld the most valuable stake in Itau Unibanco Holding SA (NYSE:ITUB), which was worth $405.3 million at the end of the first quarter. On the second spot was Orbis Investment Management which amassed $220.5 million worth of shares. Moreover, Capital Growth Management, Oaktree Capital Management, and AQR Capital Management were also bullish on Itau Unibanco Holding SA (NYSE:ITUB), allocating a large percentage of their portfolios to this stock. As industrywide interest jumped, key hedge funds were breaking ground themselves.Alyeska Investment Group, managed by Anand Parekh, assembled the largest position in Itau Unibanco Holding SA (NYSE:ITUB). Alyeska Investment Group had $5.7 million invested in the company at the end of the quarter. David Costen Haley'sHBK Investmentsalso initiated a $3.8 million position during the quarter. The following funds were also among the new ITUB investors: James Dondero'sHighland Capital Management, Matthew Tewksbury'sStevens Capital Management, and Mike Vranos'sEllington. Let's now review hedge fund activity in other stocks similar to Itau Unibanco Holding SA (NYSE:ITUB). These stocks are Lockheed Martin Corporation (NYSE:LMT), Banco Santander (Brasil) SA (NYSE:BSBR), Gilead Sciences, Inc. (NASDAQ:GILD), and ASML Holding N.V. (NASDAQ:ASML). All of these stocks' market caps resemble ITUB's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position LMT,35,1219528,-7 BSBR,10,160949,0 GILD,58,3780289,1 ASML,15,504431,-1 Average,29.5,1416299,-1.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 29.5 hedge funds with bullish positions and the average amount invested in these stocks was $1416 million. That figure was $1087 million in ITUB's case. Gilead Sciences, Inc. (NASDAQ:GILD) is the most popular stock in this table. On the other hand Banco Santander (Brasil) SA (NYSE:BSBR) is the least popular one with only 10 bullish hedge fund positions. Itau Unibanco Holding SA (NYSE:ITUB) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. A small number of hedge funds were also right about betting on ITUB, though not to the same extent, as the stock returned -0.1% during the same time frame and outperformed the market as well. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Illinois Tool Works Inc. (ITW) Before we spend countless hours researching a company, we'd like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors' consensus returns have been exceptional. In the following paragraphs, we find out what the billionaire investors and hedge funds think of Illinois Tool Works Inc. (NYSE:ITW). Illinois Tool Works Inc. (NYSE:ITW)was in 27 hedge funds' portfolios at the end of March. ITW has seen a decrease in enthusiasm from smart money recently. There were 28 hedge funds in our database with ITW positions at the end of the previous quarter. Our calculations also showed that ITW isn't among the30 most popular stocks among hedge funds. So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio. Let's go over the latest hedge fund action encompassing Illinois Tool Works Inc. (NYSE:ITW). Heading into the second quarter of 2019, a total of 27 of the hedge funds tracked by Insider Monkey were long this stock, a change of -4% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards ITW over the last 15 quarters. With hedge funds' positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their stakes substantially (or already accumulated large positions). Among these funds,Citadel Investment Groupheld the most valuable stake in Illinois Tool Works Inc. (NYSE:ITW), which was worth $79.3 million at the end of the first quarter. On the second spot was Ariel Investments which amassed $52.1 million worth of shares. Moreover, AQR Capital Management, Markel Gayner Asset Management, and Nitorum Capital were also bullish on Illinois Tool Works Inc. (NYSE:ITW), allocating a large percentage of their portfolios to this stock. Seeing as Illinois Tool Works Inc. (NYSE:ITW) has experienced bearish sentiment from the entirety of the hedge funds we track, logic holds that there exists a select few funds that elected to cut their positions entirely by the end of the third quarter. Intriguingly, Matt Simon (Citadel)'sAshler Capitaldropped the biggest position of the 700 funds tracked by Insider Monkey, valued at an estimated $34.1 million in stock, and Clint Carlson's Carlson Capital was right behind this move, as the fund cut about $22.2 million worth. These moves are interesting, as total hedge fund interest fell by 1 funds by the end of the third quarter. Let's go over hedge fund activity in other stocks - not necessarily in the same industry as Illinois Tool Works Inc. (NYSE:ITW) but similarly valued. We will take a look at UBS Group AG (NYSE:UBS), Biogen Inc. (NASDAQ:BIIB), Northrop Grumman Corporation (NYSE:NOC), and Micron Technology, Inc. (NASDAQ:MU). This group of stocks' market valuations are similar to ITW's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position UBS,11,750775,0 BIIB,49,2936721,-8 NOC,35,815559,6 MU,61,3472436,0 Average,39,1993873,-0.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 39 hedge funds with bullish positions and the average amount invested in these stocks was $1994 million. That figure was $315 million in ITW's case. Micron Technology, Inc. (NASDAQ:MU) is the most popular stock in this table. On the other hand UBS Group AG (NYSE:UBS) is the least popular one with only 11 bullish hedge fund positions. Illinois Tool Works Inc. (NYSE:ITW) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately ITW wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); ITW investors were disappointed as the stock returned -1.9% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. 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Here’s What Hedge Funds Think About Paychex, Inc. (PAYX) Investing in small cap stocks has historically been a way to outperform the market, as small cap companies typically grow faster on average than the blue chips. That outperformance comes with a price, however, as there are occasional periods of higher volatility. The last 8 months is one of those periods, as the Russell 2000 ETF (IWM) has underperformed the larger S&P 500 ETF (SPY) by nearly 9 percentage points. Given that the funds we track tend to have a disproportionate amount of their portfolios in smaller cap stocks, they have seen some volatility in their portfolios too. Actually their moves are potentially one of the factors that contributed to this volatility. In this article, we use our extensive database of hedge fund holdings to find out what the smart money thinks of Paychex, Inc. (NASDAQ:PAYX). Paychex, Inc. (NASDAQ:PAYX)has experienced a decrease in activity from the world's largest hedge funds recently.PAYXwas in 21 hedge funds' portfolios at the end of the first quarter of 2019. There were 30 hedge funds in our database with PAYX positions at the end of the previous quarter. Our calculations also showed that PAYX isn't among the30 most popular stocks among hedge funds. So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio. [caption id="attachment_745225" align="aligncenter" width="473"] Noam Gottesman, GLG Partners[/caption] Let's take a glance at the recent hedge fund action regarding Paychex, Inc. (NASDAQ:PAYX). At the end of the first quarter, a total of 21 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -30% from the fourth quarter of 2018. By comparison, 22 hedge funds held shares or bullish call options in PAYX a year ago. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Select Equity Groupwas the largest shareholder of Paychex, Inc. (NASDAQ:PAYX), with a stake worth $406.1 million reported as of the end of March. Trailing Select Equity Group was Arrowstreet Capital, which amassed a stake valued at $217 million. AQR Capital Management, GLG Partners, and Citadel Investment Group were also very fond of the stock, giving the stock large weights in their portfolios. Judging by the fact that Paychex, Inc. (NASDAQ:PAYX) has faced falling interest from hedge fund managers, we can see that there exists a select few money managers who sold off their entire stakes last quarter. At the top of the heap, Jim Simons'sRenaissance Technologiesdumped the biggest investment of the "upper crust" of funds followed by Insider Monkey, worth close to $37.7 million in stock. Clint Carlson's fund,Carlson Capital, also cut its stock, about $16.4 million worth. These moves are important to note, as total hedge fund interest fell by 9 funds last quarter. Let's go over hedge fund activity in other stocks similar to Paychex, Inc. (NASDAQ:PAYX). We will take a look at ONEOK, Inc. (NYSE:OKE), Baker Hughes, a GE company (NYSE:BHGE), Southwest Airlines Co. (NYSE:LUV), and Pinduoduo Inc. (NASDAQ:PDD). This group of stocks' market caps are closest to PAYX's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position OKE,14,278924,-12 BHGE,23,415986,-5 LUV,35,3383550,-5 PDD,32,496446,12 Average,26,1143727,-2.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $1144 million. That figure was $808 million in PAYX's case. Southwest Airlines Co. (NYSE:LUV) is the most popular stock in this table. On the other hand ONEOK, Inc. (NYSE:OKE) is the least popular one with only 14 bullish hedge fund positions. Paychex, Inc. (NASDAQ:PAYX) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. A small number of hedge funds were also right about betting on PAYX as the stock returned 8.3% during the same time frame and outperformed the market by an even larger margin. Disclosure: None. This article was originally published atInsider Monkey. 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If You Like EPS Growth Then Check Out Goldman Sachs Group (NYSE:GS) Before It's Too Late Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit. Unfortunately, high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies likeGoldman Sachs Group(NYSE:GS). While profit is not necessarily a social good, it's easy to admire a business than can consistently produce it. While a well funded company may sustain losses for years, unless its owners have an endless appetite for subsidizing the customer, it will need to generate a profit eventually, or else breathe its last breath. View our latest analysis for Goldman Sachs Group The market is a voting machine in the short term, but a weighing machine in the long term, so share price follows earnings per share (EPS) eventually. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Who among us would not applaud Goldman Sachs Group's stratospheric annual EPS growth of 39%, compound, over the last three years? That sort of growth never lasts long, but like a shooting star it is well worth watching when it happens. I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. Not all of Goldman Sachs Group's revenue this year is revenuefrom operations, so keep in mind the revenue and margin numbers I've used might not be the best representation of the underlying business. Goldman Sachs Group reported flat revenue and EBIT margins over the last year. That's not a major concern but nor does it point to the long term growth we like to see. The chart below shows how the company's bottom and top lines have progressed over time. To see the actual numbers, click on the chart. In investing, as in life, the future matters more than the past. So why not check out thisfreeinteractive visualization of Goldman Sachs Group'sforecastprofits? Since Goldman Sachs Group has a market capitalization of US$72b, we wouldn't expect insiders to hold a large percentage of shares. But we do take comfort from the fact that they are investors in the company. Indeed, they have a glittering mountain of wealth invested in it, currently valued at US$1.2b. 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. Goldman Sachs Group's earnings per share growth has been so hot recently that thinking about it is making me blush. That EPS growth certainly has my attention, and the large insider ownership only serves to further stoke my interest. The hope is, of course, that the strong growth marks a fundamental improvement in the business economics. So to my mind Goldman Sachs Group is worth putting on your watchlist; after all, shareholders do well when the market underestimates fast growing companies. Of course, just because Goldman Sachs Group is growing does not mean it is undervalued. If you're wondering about the valuation, check outthis gauge of its price-to-earnings ratio, as compared to its industry. Of course, you can do well (sometimes) buying stocks thatare notgrowing earnings anddo nothave insiders buying shares. But as a growth investor I always like to check out companies thatdohave those features. You can accessa free list of them here. 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.
Trump Suggests Iran's Shooting Down of Drone Was an Accident President Donald Trump declared Thursday that “Iran made a very big mistake” in shooting down a U.S. drone but suggested it was an accident rather than a strategic error. Asked about a U.S. response, he said repeatedly, “You’ll find out.” A few minutes earlier, a senior U.S. military officer saidIran shot down the huge, unmanned American aircraftover international waters in an attempt to disrupt U.S. efforts to monitor the Persian Gulf area where Trump has blamed Iran for attacking shipping vessels. But Trump said he could not imagine the missile attack on the drone was intentional and he had a feeling “a general or somebody” mistakenly ordered the attack. Some members of Congress expressed alarm at the possibility of open conflict in the Middle East, especially after Trump’s morning tweet that said only, “Iran made a very big mistake.” But when asked about it later, he merely described the incident as a “new wrinkle” in escalating tensions between the U.S. and Iran — a “fly in the ointment.” Still he said the U.S. “will not stand for it.” Shortly before Trump spoke, at a photo opportunity with visiting Canadian Prime Minister Justin Trudeau, Air Force Lt. Gen. Joseph Guastella, commander of U.S. Central Command air forces in the region, took a different tack from Trump’s idea of an accidental shootdown. “This attack is an attempt to disrupt our ability to monitor the area following recent threats to international shipping and free flow of commerce,” he said. Iran said earlier that it shot down the drone after it violated its territorial airspace. Guastella disputed that contention, telling reporters that the unmanned aircraft was 34 kilometers from the nearest Iranian territory and flying at high altitude when struck by a surface-to-air missile. The downing of the drone follows of weeks of escalating tensions in the Middle East, starting with the U.S. announcement last month that it was rushing an aircraft carrier strike group and other military assets to the Persian Gulf area in response to Iranian threats. The Trump administration has been putting increasing economic pressure for more than a year. It reinstated punishing sanctions following Trump’s decision to pull the U.S. out of an international agreement intended to limit Iran’s nuclear program in exchange for relief from earlier sanctions. Trump has said repeatedly that the U.S. does not want war in the Mideast, yet members of Congress reacted quickly with that possibility as background. The Senate’s top Democrat called the downing of the American drone “deeply concerning” and accused the administration of not having an Iran strategy and keeping Congress and the American people in the dark. “The president needs to explain to the American people why he’s driving us toward another endless conflict in the Middle East,” said Sen. Chuck Schumer of New York. House Speaker Nancy Pelosi said she doesn’t think Trump wants war with Iran and the American people have “no appetite” for it either. She said the U.S. needs to be “strong and strategic” about protecting its interests and “cannot be reckless.” —2020Democratic primary debates: Everything you need to know —The campaign finance power behindTrump impeachment efforts —Not every state is restrictingabortion rights—some are expanding them —Richard Nixon‘s “Western White House” is back on the market—at a discount —Trump administration to use former Japanese internment camp to housemigrant children
Here’s What Hedge Funds Think About Cintas Corporation (CTAS) Russell 2000 ETF (IWM) lagged the larger S&P 500 ETF (SPY) by nearly 9 percentage points since the end of the third quarter of 2018 as investors worried over the possible ramifications of rising interest rates and escalation of the trade war with China. The hedge funds and institutional investors we track typically invest more in smaller-cap stocks than an average investor (i.e. only 298 S&P 500 constituents were among the 500 most popular stocks among hedge funds), and we have seen data that shows those funds paring back their overall exposure. Those funds cutting positions in small-caps is one reason why volatility has increased. In the following paragraphs, we take a closer look at what hedge funds and prominent investors think of Cintas Corporation (NASDAQ:CTAS) and see how the stock is affected by the recent hedge fund activity. IsCintas Corporation (NASDAQ:CTAS)a buy, sell, or hold? Money managers are becoming less confident. The number of long hedge fund bets were trimmed by 2 lately. Our calculations also showed that CTAS isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Let's take a look at the latest hedge fund action encompassing Cintas Corporation (NASDAQ:CTAS). At the end of the first quarter, a total of 27 of the hedge funds tracked by Insider Monkey were long this stock, a change of -7% from the previous quarter. On the other hand, there were a total of 31 hedge funds with a bullish position in CTAS a year ago. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves. Among these funds,Select Equity Groupheld the most valuable stake in Cintas Corporation (NASDAQ:CTAS), which was worth $137.5 million at the end of the first quarter. On the second spot was AQR Capital Management which amassed $77.8 million worth of shares. Moreover, Alkeon Capital Management, Citadel Investment Group, and Point72 Asset Management were also bullish on Cintas Corporation (NASDAQ:CTAS), allocating a large percentage of their portfolios to this stock. Because Cintas Corporation (NASDAQ:CTAS) has faced declining sentiment from the entirety of the hedge funds we track, it's safe to say that there exists a select few money managers who were dropping their positions entirely in the third quarter. At the top of the heap, Richard Chilton'sChilton Investment Companysaid goodbye to the largest investment of the "upper crust" of funds monitored by Insider Monkey, worth an estimated $63.8 million in stock, and Jim Simons's Renaissance Technologies was right behind this move, as the fund dumped about $59.7 million worth. These moves are intriguing to say the least, as total hedge fund interest was cut by 2 funds in the third quarter. Let's go over hedge fund activity in other stocks - not necessarily in the same industry as Cintas Corporation (NASDAQ:CTAS) but similarly valued. We will take a look at FleetCor Technologies, Inc. (NYSE:FLT), Hewlett Packard Enterprise Company (NYSE:HPE), Rockwell Automation Inc. (NYSE:ROK), and Boston Properties, Inc. (NYSE:BXP). This group of stocks' market values resemble CTAS's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position FLT,34,1733702,1 HPE,30,967419,1 ROK,28,534625,-7 BXP,27,572101,10 Average,29.75,951962,1.25 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 29.75 hedge funds with bullish positions and the average amount invested in these stocks was $952 million. That figure was $525 million in CTAS's case. FleetCor Technologies, Inc. (NYSE:FLT) is the most popular stock in this table. On the other hand Boston Properties, Inc. (NYSE:BXP) is the least popular one with only 27 bullish hedge fund positions. Compared to these stocks Cintas Corporation (NASDAQ:CTAS) is even less popular than BXP. Hedge funds clearly dropped the ball on CTAS as the stock delivered strong returns, though hedge funds' consensus picks still generated respectable returns. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. A small number of hedge funds were also right about betting on CTAS as the stock returned 10.6% during the same period and outperformed the market by an even larger margin. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Hedge Funds Have Never Been This Bullish On Boston Properties, Inc. (BXP) How do you pick the next stock to invest in? One way would be to spend hours of research browsing through thousands of publicly traded companies. However, an easier way is to look at the stocks that smart money investors are collectively bullish on. Hedge funds and other institutional investors usually invest large amounts of capital and have to conduct due diligence while choosing their next pick. They don't always get it right, but, on average, their stock picks historically generated strong returns after adjusting for known risk factors. With this in mind, let’s take a look at the recent hedge fund activity surrounding Boston Properties, Inc. (NYSE:BXP). IsBoston Properties, Inc. (NYSE:BXP)the right pick for your portfolio? Prominent investors are betting on the stock. The number of bullish hedge fund bets increased by 10 in recent months. Our calculations also showed that BXP isn't among the30 most popular stocks among hedge funds. In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to. Let's take a look at the key hedge fund action surrounding Boston Properties, Inc. (NYSE:BXP). At the end of the first quarter, a total of 27 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 59% from the fourth quarter of 2018. On the other hand, there were a total of 11 hedge funds with a bullish position in BXP a year ago. With hedgies' sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their holdings considerably (or already accumulated large positions). The largest stake in Boston Properties, Inc. (NYSE:BXP) was held byAEW Capital Management, which reported holding $191.8 million worth of stock at the end of March. It was followed by Millennium Management with a $86.1 million position. Other investors bullish on the company included Citadel Investment Group, Balyasny Asset Management, and Renaissance Technologies. As industrywide interest jumped, specific money managers were leading the bulls' herd.Balyasny Asset Management, managed by Dmitry Balyasny, created the largest position in Boston Properties, Inc. (NYSE:BXP). Balyasny Asset Management had $48.5 million invested in the company at the end of the quarter. Paul Tudor Jones'sTudor Investment Corpalso initiated a $7 million position during the quarter. The other funds with new positions in the stock are Steve Cohen'sPoint72 Asset Management, Minhua Zhang'sWeld Capital Management, and Benjamin A. Smith'sLaurion Capital Management. Let's now review hedge fund activity in other stocks - not necessarily in the same industry as Boston Properties, Inc. (NYSE:BXP) but similarly valued. These stocks are Ulta Beauty, Inc. (NASDAQ:ULTA), Stanley Black & Decker, Inc. (NYSE:SWK), ArcelorMittal (NYSE:MT), and The Clorox Company (NYSE:CLX). This group of stocks' market caps resemble BXP's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ULTA,43,994415,1 SWK,31,1033655,-4 MT,12,222442,-1 CLX,29,1070055,1 Average,28.75,830142,-0.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 28.75 hedge funds with bullish positions and the average amount invested in these stocks was $830 million. That figure was $572 million in BXP's case. Ulta Beauty, Inc. (NASDAQ:ULTA) is the most popular stock in this table. On the other hand ArcelorMittal (NYSE:MT) is the least popular one with only 12 bullish hedge fund positions. Boston Properties, Inc. (NYSE:BXP) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately BXP wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); BXP investors were disappointed as the stock returned -2.3% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Fastenal Company (FAST) A Good Stock To Buy? We know that hedge funds generate strong, risk-adjusted returns over the long run, therefore imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, smart money investors have to conduct complex analyses, spend many resources and use tools that are not always available for the general crowd. This doesn't mean that they don't have occasional colossal losses; they do (like Peltz's recent General Electric losses). However, it is still a good idea to keep an eye on hedge fund activity. With this in mind, as the current round of 13F filings has just ended, let’s examine the smart money sentiment towards Fastenal Company (NASDAQ:FAST). IsFastenal Company (NASDAQ:FAST)a marvelous investment today? Prominent investors are taking a pessimistic view. The number of bullish hedge fund bets retreated by 4 in recent months. Our calculations also showed that FAST isn't among the30 most popular stocks among hedge funds. At the moment there are a lot of methods investors can use to appraise publicly traded companies. A duo of the best methods are hedge fund and insider trading interest. We have shown that, historically, those who follow the top picks of the best hedge fund managers can outpace their index-focused peers by a solid margin (see the details here). We're going to take a glance at the recent hedge fund action regarding Fastenal Company (NASDAQ:FAST). At the end of the first quarter, a total of 21 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -16% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards FAST over the last 15 quarters. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves. According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, William Duhamel'sRoute One Investment Companyhas the most valuable position in Fastenal Company (NASDAQ:FAST), worth close to $522.4 million, accounting for 12.5% of its total 13F portfolio. Sitting at the No. 2 spot is Brian Bares ofBares Capital Management, with a $287 million position; 8.1% of its 13F portfolio is allocated to the company. Some other peers that are bullish contain William von Mueffling'sCantillon Capital Management, Lee Hicks and Jan Koerner'sPark Presidio Capitaland Ken Griffin'sCitadel Investment Group. Since Fastenal Company (NASDAQ:FAST) has witnessed a decline in interest from hedge fund managers, it's safe to say that there is a sect of fund managers that elected to cut their entire stakes heading into Q3. At the top of the heap, Robert Joseph Caruso'sSelect Equity Groupsold off the biggest investment of the 700 funds watched by Insider Monkey, worth about $5.9 million in stock. Michael Gelband's fund,ExodusPoint Capital, also said goodbye to its stock, about $4.1 million worth. These transactions are interesting, as total hedge fund interest fell by 4 funds heading into Q3. Let's also examine hedge fund activity in other stocks similar to Fastenal Company (NASDAQ:FAST). We will take a look at Hess Corporation (NYSE:HES), Entergy Corporation (NYSE:ETR), Ameren Corporation (NYSE:AEE), and Waters Corporation (NYSE:WAT). This group of stocks' market valuations resemble FAST's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position HES,29,1774205,-7 ETR,33,1469733,2 AEE,21,739961,-2 WAT,30,689161,-2 Average,28.25,1168265,-2.25 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 28.25 hedge funds with bullish positions and the average amount invested in these stocks was $1168 million. That figure was $1145 million in FAST's case. Entergy Corporation (NYSE:ETR) is the most popular stock in this table. On the other hand Ameren Corporation (NYSE:AEE) is the least popular one with only 21 bullish hedge fund positions. Compared to these stocks Fastenal Company (NASDAQ:FAST) is even less popular than AEE. Hedge funds dodged a bullet by taking a bearish stance towards FAST. Our calculations showed that the top 15 most popular hedge fund stocks returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately FAST wasn't nearly as popular as these 20 stocks (hedge fund sentiment was very bearish); FAST investors were disappointed as the stock returned -52.1% during the same time frame and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in the second quarter. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Edison International (EIX) A Good Stock To Buy? We at Insider Monkey have gone over 738 13F filings that hedge funds and famous value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of March 31st. In this article we look at what those investors think of Edison International (NYSE:EIX). Edison International (NYSE:EIX)has experienced a decrease in enthusiasm from smart money lately. Our calculations also showed that EIX isn't among the30 most popular stocks among hedge funds. In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to. Let's take a look at the new hedge fund action encompassing Edison International (NYSE:EIX). Heading into the second quarter of 2019, a total of 27 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -4% from the fourth quarter of 2018. The graph below displays the number of hedge funds with bullish position in EIX over the last 15 quarters. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. The largest stake in Edison International (NYSE:EIX) was held byPzena Investment Management, which reported holding $465.4 million worth of stock at the end of March. It was followed by Renaissance Technologies with a $245.9 million position. Other investors bullish on the company included D E Shaw, Zimmer Partners, and Arrowstreet Capital. Seeing as Edison International (NYSE:EIX) has faced falling interest from the entirety of the hedge funds we track, logic holds that there is a sect of money managers that elected to cut their positions entirely heading into Q3. It's worth mentioning that Jos Shaver'sElectron Capital Partnersdumped the biggest investment of the "upper crust" of funds followed by Insider Monkey, valued at close to $31.1 million in stock, and Josh Donfeld and David Rogers's Castle Hook Partners was right behind this move, as the fund sold off about $24 million worth. These transactions are interesting, as aggregate hedge fund interest was cut by 1 funds heading into Q3. Let's now review hedge fund activity in other stocks - not necessarily in the same industry as Edison International (NYSE:EIX) but similarly valued. These stocks are Check Point Software Technologies Ltd. (NASDAQ:CHKP), McCormick & Company, Incorporated (NYSE:MKC), Northern Trust Corporation (NASDAQ:NTRS), and Kellogg Company (NYSE:K). This group of stocks' market caps match EIX's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CHKP,24,749535,-2 MKC,24,250259,-4 NTRS,34,605695,-3 K,26,607117,-1 Average,27,553152,-2.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 27 hedge funds with bullish positions and the average amount invested in these stocks was $553 million. That figure was $1425 million in EIX's case. Northern Trust Corporation (NASDAQ:NTRS) is the most popular stock in this table. On the other hand Check Point Software Technologies Ltd. (NASDAQ:CHKP) is the least popular one with only 24 bullish hedge fund positions. Edison International (NYSE:EIX) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately EIX wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); EIX investors were disappointed as the stock returned -3.6% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Ball Corporation (BLL) Reputable billionaire investors such as Jim Simons, Cliff Asness and David Tepper generate exorbitant profits for their wealthy accredited investors (a minimum of $1 million in investable assets would be required to invest in a hedge fund and most successful hedge funds won't accept your savings unless you commit at least $5 million) by pinpointing winning small-cap stocks. There is little or no publicly-available information at all on some of these small companies, which makes it hard for an individual investor to pin down a winner within the small-cap space. However, hedge funds and other big asset managers can do the due diligence and analysis for you instead, thanks to their highly-skilled research teams and vast resources to conduct an appropriate evaluation process. Looking for potential winners within the small-cap galaxy of stocks? We believe following the smart money is a good starting point. IsBall Corporation (NYSE:BLL)a first-rate investment right now? Money managers are reducing their bets on the stock. The number of long hedge fund positions were trimmed by 6 in recent months. Our calculations also showed that BLL isn't among the30 most popular stocks among hedge funds.BLLwas in 27 hedge funds' portfolios at the end of March. There were 33 hedge funds in our database with BLL positions at the end of the previous quarter. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. Let's take a peek at the recent hedge fund action regarding Ball Corporation (NYSE:BLL). At Q1's end, a total of 27 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -18% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards BLL over the last 15 quarters. So, let's review which hedge funds were among the top holders of the stock and which hedge funds were making big moves. Among these funds,Rivulet Capitalheld the most valuable stake in Ball Corporation (NYSE:BLL), which was worth $86.5 million at the end of the first quarter. On the second spot was Select Equity Group which amassed $65.8 million worth of shares. Moreover, Brookside Capital, PEAK6 Capital Management, and MD Sass were also bullish on Ball Corporation (NYSE:BLL), allocating a large percentage of their portfolios to this stock. Due to the fact that Ball Corporation (NYSE:BLL) has faced bearish sentiment from the aggregate hedge fund industry, logic holds that there lies a certain "tier" of fund managers that decided to sell off their positions entirely last quarter. At the top of the heap, Richard Chilton'sChilton Investment Companysold off the largest investment of the 700 funds monitored by Insider Monkey, valued at close to $146.5 million in stock. David Cohen and Harold Levy's fund,Iridian Asset Management, also sold off its stock, about $125.7 million worth. These bearish behaviors are interesting, as total hedge fund interest dropped by 6 funds last quarter. Let's go over hedge fund activity in other stocks - not necessarily in the same industry as Ball Corporation (NYSE:BLL) but similarly valued. We will take a look at Sasol Limited (NYSE:SSL), IDEXX Laboratories, Inc. (NASDAQ:IDXX), Credicorp Ltd. (NYSE:BAP), and Newmont Goldcorp Corporation (NYSE:NEM). This group of stocks' market valuations are similar to BLL's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position SSL,5,18378,-2 IDXX,29,695512,-4 BAP,20,762470,6 NEM,35,787316,4 Average,22.25,565919,1 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 22.25 hedge funds with bullish positions and the average amount invested in these stocks was $566 million. That figure was $324 million in BLL's case. Newmont Goldcorp Corporation (NYSE:NEM) is the most popular stock in this table. On the other hand Sasol Limited (NYSE:SSL) is the least popular one with only 5 bullish hedge fund positions. Ball Corporation (NYSE:BLL) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Hedge funds were also right about betting on BLL as the stock returned 5.5% during the same period and outperformed the market by an even larger margin. Hedge funds were rewarded for their relative bullishness. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Garmin Ltd. (GRMN) While the market driven by short-term sentiment influenced by the accomodative interest rate environment in the US, increasing oil prices and optimism towards the resolution of the trade war with China, many smart money investors kept their cautious approach regarding the current bull run in the first quarter and hedging or reducing many of their long positions. However, as we know, big investors usually buy stocks with strong fundamentals, which is why we believe we can profit from imitating them. In this article, we are going to take a look at the smart money sentiment surrounding Garmin Ltd. (NASDAQ:GRMN). IsGarmin Ltd. (NASDAQ:GRMN)the right investment to pursue these days? The best stock pickers are in a pessimistic mood. The number of bullish hedge fund bets fell by 4 in recent months. Our calculations also showed that GRMN isn't among the30 most popular stocks among hedge funds.GRMNwas in 27 hedge funds' portfolios at the end of March. There were 31 hedge funds in our database with GRMN holdings at the end of the previous quarter. In today’s marketplace there are several metrics stock traders put to use to value stocks. A couple of the less known metrics are hedge fund and insider trading sentiment. Our experts have shown that, historically, those who follow the best picks of the elite money managers can outperform the market by a very impressive amount (see the details here). We're going to analyze the latest hedge fund action surrounding Garmin Ltd. (NASDAQ:GRMN). Heading into the second quarter of 2019, a total of 27 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -13% from one quarter earlier. By comparison, 24 hedge funds held shares or bullish call options in GRMN a year ago. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,D E Shawwas the largest shareholder of Garmin Ltd. (NASDAQ:GRMN), with a stake worth $124.9 million reported as of the end of March. Trailing D E Shaw was Select Equity Group, which amassed a stake valued at $99.3 million. AQR Capital Management, Renaissance Technologies, and Arrowstreet Capital were also very fond of the stock, giving the stock large weights in their portfolios. Seeing as Garmin Ltd. (NASDAQ:GRMN) has faced a decline in interest from hedge fund managers, we can see that there lies a certain "tier" of money managers that elected to cut their full holdings heading into Q3. Interestingly, James Woodson Davis'sWoodson Capital Managementdropped the biggest stake of the 700 funds tracked by Insider Monkey, totaling an estimated $4.2 million in stock, and Daniel Arbess's Perella Weinberg Partners was right behind this move, as the fund dumped about $4 million worth. These bearish behaviors are interesting, as total hedge fund interest fell by 4 funds heading into Q3. Let's go over hedge fund activity in other stocks - not necessarily in the same industry as Garmin Ltd. (NASDAQ:GRMN) but similarly valued. These stocks are Genuine Parts Company (NYSE:GPC), Omnicom Group Inc. (NYSE:OMC), Alexandria Real Estate Equities Inc (NYSE:ARE), and SS&C Technologies Holdings, Inc. (NASDAQ:SSNC). This group of stocks' market valuations are closest to GRMN's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position GPC,22,326495,-7 OMC,20,661219,2 ARE,17,207362,-5 SSNC,37,1718479,0 Average,24,728389,-2.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 24 hedge funds with bullish positions and the average amount invested in these stocks was $728 million. That figure was $513 million in GRMN's case. SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) is the most popular stock in this table. On the other hand Alexandria Real Estate Equities Inc (NYSE:ARE) is the least popular one with only 17 bullish hedge fund positions. Garmin Ltd. (NASDAQ:GRMN) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately GRMN wasn't nearly as popular as these 20 stocks and hedge funds that were betting on GRMN were disappointed as the stock returned -10.6% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Ameren Corporation (AEE) A Good Stock To Buy? World-class money managers like Ken Griffin and Barry Rosenstein only invest their wealthy clients' money after undertaking a rigorous examination of any potential stock. They are particularly successful in this regard when it comes to small-cap stocks, which their peerless research gives them a big information advantage on when it comes to judging their worth. It's not surprising then that they generate their biggest returns from these stocks and invest more of their money in these stocks on average than other investors. It's also not surprising then that we pay close attention to these picks ourselves and have built a market-beating investment strategy around them. IsAmeren Corporation (NYSE:AEE)a bargain? Hedge funds are in a bearish mood. The number of bullish hedge fund positions were trimmed by 2 in recent months. Our calculations also showed that AEE isn't among the30 most popular stocks among hedge funds. So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio. Let's check out the key hedge fund action surrounding Ameren Corporation (NYSE:AEE). At the end of the first quarter, a total of 21 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -9% from one quarter earlier. On the other hand, there were a total of 21 hedge funds with a bullish position in AEE a year ago. With the smart money's positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were upping their stakes substantially (or already accumulated large positions). According to Insider Monkey's hedge fund database, Jim Simons'sRenaissance Technologieshas the largest position in Ameren Corporation (NYSE:AEE), worth close to $330.4 million, corresponding to 0.3% of its total 13F portfolio. The second largest stake is held byAQR Capital Management, led by Cliff Asness, holding a $283.1 million position; 0.3% of its 13F portfolio is allocated to the stock. Some other professional money managers that hold long positions encompass Noam Gottesman'sGLG Partners, Phill Gross and Robert Atchinson'sAdage Capital Managementand John Overdeck and David Siegel'sTwo Sigma Advisors. Due to the fact that Ameren Corporation (NYSE:AEE) has witnessed falling interest from the aggregate hedge fund industry, we can see that there exists a select few money managers who were dropping their full holdings heading into Q3. Interestingly, Andrew Feldstein and Stephen Siderow'sBlue Mountain Capitalcut the largest investment of the 700 funds tracked by Insider Monkey, totaling close to $4.5 million in stock. Paul Tudor Jones's fund,Tudor Investment Corp, also cut its stock, about $2.3 million worth. These transactions are important to note, as aggregate hedge fund interest dropped by 2 funds heading into Q3. Let's also examine hedge fund activity in other stocks similar to Ameren Corporation (NYSE:AEE). These stocks are Waters Corporation (NYSE:WAT), Liberty Global Plc (NASDAQ:LBTYK), Mettler-Toledo International Inc. (NYSE:MTD), and The Hartford Financial Services Group Inc (NYSE:HIG). This group of stocks' market valuations match AEE's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position WAT,30,689161,-2 LBTYK,33,3302492,1 MTD,18,221886,-4 HIG,37,1332799,7 Average,29.5,1386585,0.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 29.5 hedge funds with bullish positions and the average amount invested in these stocks was $1387 million. That figure was $740 million in AEE's case. The Hartford Financial Services Group Inc (NYSE:HIG) is the most popular stock in this table. On the other hand Mettler-Toledo International Inc. (NYSE:MTD) is the least popular one with only 18 bullish hedge fund positions. Ameren Corporation (NYSE:AEE) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. A small number of hedge funds were also right about betting on AEE, though not to the same extent, as the stock returned -0.9% during the same time frame and outperformed the market as well. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Did Hedge Funds Drop The Ball On DISH Network Corp. (DISH) ? The 700+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the first quarter, which unveil their equity positions as of March 31. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards DISH Network Corp. (NASDAQ:DISH). IsDISH Network Corp. (NASDAQ:DISH)a healthy stock for your portfolio? Money managers are in a bearish mood. The number of long hedge fund positions were cut by 10 recently. Our calculations also showed that DISH isn't among the30 most popular stocks among hedge funds.DISHwas in 27 hedge funds' portfolios at the end of the first quarter of 2019. There were 37 hedge funds in our database with DISH positions at the end of the previous quarter. So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio. Let's take a glance at the latest hedge fund action surrounding DISH Network Corp. (NASDAQ:DISH). Heading into the second quarter of 2019, a total of 27 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -27% from the fourth quarter of 2018. On the other hand, there were a total of 45 hedge funds with a bullish position in DISH a year ago. With hedgies' positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were adding to their stakes considerably (or already accumulated large positions). Among these funds,King Street Capitalheld the most valuable stake in DISH Network Corp. (NASDAQ:DISH), which was worth $440.5 million at the end of the first quarter. On the second spot was Eagle Capital Management which amassed $395.2 million worth of shares. Moreover, Paulson & Co, Key Square Capital Management, and GAMCO Investors were also bullish on DISH Network Corp. (NASDAQ:DISH), allocating a large percentage of their portfolios to this stock. Seeing as DISH Network Corp. (NASDAQ:DISH) has faced falling interest from the entirety of the hedge funds we track, it's easy to see that there exists a select few money managers that decided to sell off their entire stakes last quarter. It's worth mentioning that Paul Singer'sElliott Managementsaid goodbye to the biggest position of the 700 funds monitored by Insider Monkey, totaling an estimated $46.6 million in stock. Matthew Knauer and Mina Faltas's fund,Nokota Management, also sold off its stock, about $43.6 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest fell by 10 funds last quarter. Let's now review hedge fund activity in other stocks - not necessarily in the same industry as DISH Network Corp. (NASDAQ:DISH) but similarly valued. We will take a look at Altice USA, Inc. (NYSE:ATUS), Symantec Corporation (NASDAQ:SYMC), Evergy, Inc. (NYSE:EVRG), and KB Financial Group, Inc. (NYSE:KB). This group of stocks' market caps are similar to DISH's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ATUS,52,2522218,1 SYMC,29,1762346,-4 EVRG,24,925650,-1 KB,12,54461,6 Average,29.25,1316169,0.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 29.25 hedge funds with bullish positions and the average amount invested in these stocks was $1316 million. That figure was $1306 million in DISH's case. Altice USA, Inc. (NYSE:ATUS) is the most popular stock in this table. On the other hand KB Financial Group, Inc. (NYSE:KB) is the least popular one with only 12 bullish hedge fund positions. DISH Network Corp. (NASDAQ:DISH) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. A small number of hedge funds were also right about betting on DISH as the stock returned 9.7% during the same time frame and outperformed the market by an even larger margin. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Do Insiders Own Shares In CO2 Gro Inc. (CVE:GROW)? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Every investor in CO2 Gro Inc. (CVE:GROW) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.' With a market capitalization of CA$27m, CO2 Gro is a small cap stock, so it might not be well known by many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutional investors have not yet purchased much of the company. We can zoom in on the different ownership groups, to learn more about GROW. View our latest analysis for CO2 Gro Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. Since institutions own under 5% of CO2 Gro, 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. CO2 Gro is not owned by hedge funds. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Our information suggests that insiders maintain a significant holding in CO2 Gro Inc.. Insiders own CA$6.9m worth of shares in the CA$27m company. This may suggest that the founders still own a lot of shares. You canclick here to see if they have been buying or selling. The general public, mostly retail investors, hold a substantial 70% stake in GROW, suggesting it is a fairly popular stock. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio. It's always worth thinking about the different groups who own shares in a company. But to understand CO2 Gro 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. 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.
Here’s What Hedge Funds Think About Cincinnati Financial Corporation (CINF) How do you pick the next stock to invest in? One way would be to spend hours of research browsing through thousands of publicly traded companies. However, an easier way is to look at the stocks that smart money investors are collectively bullish on. Hedge funds and other institutional investors usually invest large amounts of capital and have to conduct due diligence while choosing their next pick. They don't always get it right, but, on average, their stock picks historically generated strong returns after adjusting for known risk factors. With this in mind, let’s take a look at the recent hedge fund activity surrounding Cincinnati Financial Corporation (NASDAQ:CINF). IsCincinnati Financial Corporation (NASDAQ:CINF)worth your attention right now? Investors who are in the know are in a pessimistic mood. The number of bullish hedge fund positions were cut by 1 lately. Our calculations also showed that CINF isn't among the30 most popular stocks among hedge funds.CINFwas in 21 hedge funds' portfolios at the end of the first quarter of 2019. There were 22 hedge funds in our database with CINF holdings at the end of the previous quarter. To the average investor there are numerous formulas stock market investors use to size up publicly traded companies. A pair of the most under-the-radar formulas are hedge fund and insider trading moves. Our experts have shown that, historically, those who follow the best picks of the best money managers can outclass the market by a solid amount (see the details here). We're going to view the key hedge fund action surrounding Cincinnati Financial Corporation (NASDAQ:CINF). At the end of the first quarter, a total of 21 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -5% from one quarter earlier. By comparison, 17 hedge funds held shares or bullish call options in CINF a year ago. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. Of the funds tracked by Insider Monkey,Select Equity Group, managed by Robert Joseph Caruso, holds the most valuable position in Cincinnati Financial Corporation (NASDAQ:CINF). Select Equity Group has a $470.1 million position in the stock, comprising 3.2% of its 13F portfolio. Coming in second isRenaissance Technologies, managed by Jim Simons, which holds a $16.1 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other hedge funds and institutional investors that hold long positions consist of Noam Gottesman'sGLG Partners, Frederick DiSanto'sAncora Advisorsand Ken Fisher'sFisher Asset Management. Due to the fact that Cincinnati Financial Corporation (NASDAQ:CINF) has witnessed bearish sentiment from the smart money, it's safe to say that there lies a certain "tier" of hedgies that elected to cut their entire stakes in the third quarter. Intriguingly, John Brandmeyer'sCognios Capitaldropped the largest stake of all the hedgies followed by Insider Monkey, totaling close to $2 million in stock, and Ray Dalio's Bridgewater Associates was right behind this move, as the fund said goodbye to about $1.1 million worth. These moves are important to note, as total hedge fund interest dropped by 1 funds in the third quarter. Let's go over hedge fund activity in other stocks - not necessarily in the same industry as Cincinnati Financial Corporation (NASDAQ:CINF) but similarly valued. We will take a look at Host Hotels and Resorts Inc (NYSE:HST), Annaly Capital Management, Inc. (NYSE:NLY), Western Digital Corporation (NASDAQ:WDC), and Principal Financial Group Inc (NASDAQ:PFG). This group of stocks' market caps match CINF's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position HST,27,576569,5 NLY,21,339026,5 WDC,33,387729,8 PFG,15,62018,-3 Average,24,341336,3.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 24 hedge funds with bullish positions and the average amount invested in these stocks was $341 million. That figure was $546 million in CINF's case. Western Digital Corporation (NASDAQ:WDC) is the most popular stock in this table. On the other hand Principal Financial Group Inc (NASDAQ:PFG) is the least popular one with only 15 bullish hedge fund positions. Cincinnati Financial Corporation (NASDAQ:CINF) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. A small number of hedge funds were also right about betting on CINF as the stock returned 14.5% during the same time frame and outperformed the market by an even larger margin. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Viking Therapeutics, Inc. (VKTX) Is Viking Therapeutics, Inc. (NASDAQ:VKTX) a good place to invest some of your money right now? We can gain invaluable insight to help us answer that question by studying the investment trends of top investors, who employ world-class Ivy League graduates, who are given immense resources and industry contacts to put their financial expertise to work. The top picks of these firms have historically outperformed the market when we account for known risk factors, making them very valuable investment ideas. Viking Therapeutics, Inc. (NASDAQ:VKTX)shares haven't seen a lot of action during the first quarter. Overall, hedge fund sentiment was unchanged. The stock was in 20 hedge funds' portfolios at the end of March. At the end of this article we will also compare VKTX to other stocks including Johnson Outdoors Inc. (NASDAQ:JOUT), Univest Financial Corporation (NASDAQ:UVSP), and Ituran Location and Control Ltd. (NASDAQ:ITRN) to get a better sense of its popularity. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Let's take a look at the recent hedge fund action encompassing Viking Therapeutics, Inc. (NASDAQ:VKTX). Heading into the second quarter of 2019, a total of 20 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards VKTX over the last 15 quarters. So, let's review which hedge funds were among the top holders of the stock and which hedge funds were making big moves. The largest stake in Viking Therapeutics, Inc. (NASDAQ:VKTX) was held byPark West Asset Management, which reported holding $15.6 million worth of stock at the end of March. It was followed by Citadel Investment Group with a $10.7 million position. Other investors bullish on the company included Sio Capital, Rubric Capital Management, and Opaleye Management. Since Viking Therapeutics, Inc. (NASDAQ:VKTX) has experienced falling interest from the aggregate hedge fund industry, logic holds that there is a sect of fund managers that slashed their positions entirely heading into Q3. At the top of the heap, Lawrence Hawkins'sProsight Capitaldumped the largest position of all the hedgies tracked by Insider Monkey, comprising about $4.8 million in stock, and Chuck Royce's Royce & Associates was right behind this move, as the fund dropped about $1 million worth. These bearish behaviors are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience). Let's check out hedge fund activity in other stocks similar to Viking Therapeutics, Inc. (NASDAQ:VKTX). These stocks are Johnson Outdoors Inc. (NASDAQ:JOUT), Univest Financial Corporation (NASDAQ:UVSP), Ituran Location and Control Ltd. (NASDAQ:ITRN), and Noble Corporation plc (NYSE:NE). This group of stocks' market values resemble VKTX's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position JOUT,11,60260,-1 UVSP,9,35349,4 ITRN,11,126208,2 NE,23,102367,-1 Average,13.5,81046,1 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 13.5 hedge funds with bullish positions and the average amount invested in these stocks was $81 million. That figure was $73 million in VKTX's case. Noble Corporation plc (NYSE:NE) is the most popular stock in this table. On the other hand Univest Financial Corporation (NASDAQ:UVSP) is the least popular one with only 9 bullish hedge fund positions. Viking Therapeutics, Inc. (NASDAQ:VKTX) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately VKTX wasn't nearly as popular as these 20 stocks and hedge funds that were betting on VKTX were disappointed as the stock returned -21.1% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Maine becomes the latest state with a 'Student Loan Bill of Rights' This post has been updated with comment from the Maine governor’s office. Maine is the latest state to pass a law amid frustration with federal inaction over the supervision of student loan companies. On Thursday, Maine Governor Janet Mills signed the “Act To Establish a Student Loan Bill of Rights To License and Regulate Student Loan Servicers,” which will go into effect in September. “Paying back student loan debt is difficult enough without a profit-hungry lender trying to make it harder and more expensive,” Governor Mills said in a statement. “By signing this bill into law, Maine is taking critical action to create oversight, implement accountability, and protect the interests of our borrowers.” The legislation follows similar actions taken by about a dozen states, includingConnecticutandIllinois, and reveals a strategy where lawmakers on the state level are taking political action to address the student debt crisis that arose from years of lax oversight and predatory loan servicers. “There are talks of federal legislation that would lessen the need for states to act,” D.C.-based nonprofit Generation Progress' Charlotte Hancock told Yahoo Finance. “But in the interim and in with the [Education Secretary Betsy] DeVos deregulation agenda firmly in place… state legislators are taking matters into their own hands to do something about the problems they’re hearing about over and over again from their constituents.” The states’ actions come amid a student debt crisis where about 45 million borrowers across the U.S. hold nearly$1.5 trillion in outstanding loans. Citing the lack of action taken by the Department of Education and the Consumer Financial Protection Bureau in regulating and supervising companies like Navient and Nelnet, states fromCaliforniato Connecticut — and now Maine — have been pushing for increased protections for student loan borrowers, just like those thatmortgage and credit card borrowers enjoy. Maine’s bill in particular will establish a student loan ombudsman who will review and possibly resolve complaints from borrowers, a superintendent who will supervise the loan servicers, and will also formalize a list of “prohibited acts” for the companies. That irony of the situation — that states are now regulating federally approved loan servicers — was not lost on Hancock. "We are thrilled to see so many states taking up servicer licensing and protecting their student loan borrowers with the Betsy DeVos Department of Education refusing to put servicers in check and hold them accountable to the jobs the federal government has hired them to do," she said. Maine’s proposed solution to the student debt crisis was a response to the financial hardship inflicted upon student loan borrowers, the bill’s sponsor explained. People “have been making payments trying to deal with their student debt, and have been misled, misguided, and in some cases, outright lied to, and have ended up owing more than they may have started out with,” Maine State Senator Eloise Vitelli (D) told Yahoo Finance. The average student debt held by borrowers in Maine this year was around $32,500 according toExperian. “The frustration level, the anxiety that comes with that, has just affected people of this state of all ages,” Vitelli added. “I've heard from people who are paying down student loans from their children, as well as their own still. One woman told me that she thought she would go to her grave, still owing on her student debt.” Recent reports revealed thatparents and even grandparentsare shouldering student loans on behalf of their children, pitching in to shoulder as much as $35,600. Data from the New York Fed also indicates that the 40 to 49 age group ranks highest in terms of debt that’s transitioning into serious delinquency. In other words, this group is finding it hard to repay student loans that they or their children have taken on, exceeding deadlines by more than 90 days. Vitelli added that ultimately, she hopes that the U.S. moves towards the Nordic model of free college education, a contentious proposal that has been raised by several presidential candidates likeBernie SandersandElizabeth Warren. “While it doesn't eliminate all the costs associated with being a student, that they still have to pay for their room and board… they don't end up at the end of their degree with the thousands of dollars to American students end up with,” said Vitelli. “There are some small steps that are being taken in that direction as well to reduce the cost of higher education.” — Aarthi is a writer for Yahoo Finance. Follow her on Twitter@aarthiswami. Read more: • Americans are stressed about money, and student loans are 'probably leading the way' • Over half of parents willing to go into debt to pay children’s college tuition • Household debt hits $13.6 trillion as student loan and credit card delinquencies rise • Elizabeth Warren unveils 'broad cancellation plan' for student debt • Read the latest financial and business news from Yahoo Finance Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,SmartNews,LinkedIn,YouTube, andreddit.
Apple Warns Trump Administration of Tariff Impact Rising trade tensions between the U.S. and China has been a major overhang forApple(NASDAQ: AAPL)shares in recent months, as the escalations expose the company to extraordinary risk across many parts of its business, from pricing and profitability to supply-chain operations. The risks are so great that the Mac maker is reportedly even considering moving15% to 30%of iPhone production out of the Middle Kingdom -- but those jobs wouldn't be coming to the U.S., contrary to what President Trump may think. Alongside many other companies, Apple has written a letter to the United States Trade Representative (USTR) Robert Lighthizer warning of the impacts. All of Apple's most important products would be affected. Image source: Apple. The Trump administration's proposed China tariffs could climb as high as 25% and impact "all of Apple's major products," the Cupertino tech giant notes. We're talking about the iPhone, MacBook, iPad, iPod Touch, Apple Watch, AirPods, HomePod, Beats, AirPort, Time Capsule, iMac, Apple TV, iPhone repair parts, keyboards, wired headphones and speakers, computer monitors, batteries, and battery cases, according to a list that Apple provided to USTR. Apple discontinued its AirPort lineup (including Time Capsule) last year, so it's not clear how discontinued products would be affected. The company does not currently offer any first-party computer monitors, but it did recently unveil thePro Display XDR, which ships later this year. The company notes that last year it committed to contributing $350 billion to the U.S. economy over the course of five years, and Apple is "pleased to report that we are on track to achieve this contribution." Trump's tariffs "would result in a reduction of Apple's U.S. economic contribution," Apple writes. Note that much of that headline total is purchases from domestic suppliers and manufacturers thatthe company would be making anyway, while other domestic investments like corporate facilities and data centers may not have materialized without tax reform. The tariffs would hurt Apple's ability to compete on the global stage. The company notes that it competes with many Chinese and other international rivals in international markets, and many of those competitors do not have strong positions in the U.S. and would therefore be largely unaffected by U.S. tariffs. Hitting all of Apple's major products with more taxes would "tilt the playing field in favor of our global competitors." Apple has already been struggling in emerging markets, where Chinese rivals like Xiaomi and Huawei have been enjoying considerable success with affordable products. The last thing that the tech titan needs in those markets is more costs. "We urge the U.S. Government not to impose tariffs on these products," Apple pleads. 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 Evan Niu, CFAowns shares of Apple. The Motley Fool owns shares of and recommends Apple. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool has adisclosure policy.
Oracle's Slow-and-Steady Business Might Be What Your Portfolio Needs Integrated enterprise software providerOracle(NYSE: ORCL) rocketed to fresh all-time highs Wednesday after reporting earnings for the final quarter of its 2019 fiscal year. The company is by no means the most exciting cloud-based software and services play out there, but it is nonetheless benefiting from the massive digital transformation movement. The outlook for the next 12 months wasn't anything exciting, but that could be exactly what investors need right now. Let's get one thing straight: Oracle's growth has for years been sluggish at best. Once a leader in software technology, the company didn't exactly enter the world of cloud computing gracefully. Now many of its peers are taking the lion's share of the new digital era, from newer arrivals likeSalesforce.comto old rivals likeMicrosoft. Even Oracle's leadership in database management is getting disrupted by upstartMongoDB. Yet, in spite of mounting competition, Oracle had a respectable fiscal 2019. Overall revenue was flat due to currency exchange headwinds caused by a stronger U.S. dollar (up 3% when excluding the negative exchange rate), but cloud revenue grew 4% when excluding currency effects. Gross profit margins remained high, and management expects them to continue to increase next year. Metric 12 Months Ended May 31, 2018 12 Months Ended May 31, 2019 YOY Change Revenue $39.4 billion $39.5 billion 0% Operating expenses $26.1 billion $26.0 billion 0% Operating profit margin 33.7% 34.3% 0.6 p.p. Adjusted earnings per share $3.05 $3.52 15% YOY = year over year. P.p. = percentage point. Data source: Oracle. Oracle has been quick to use its lucrative profit margins to return cash to shareholders. The company is paying a yearly dividend of 1.7%, but share buybacks have been the biggest bonus. Oracle co-CEO Safra Catz pointed out on the earnings call that the total share count has been reduced by 25% over the last five years, with over half of that reduction occurring in the last year alone. That is some serious return of value to shareholders and explains the big earnings jump this last year even as revenue remains subdued. While the cloud and data-driven economy keep getting bigger, Oracle seems content to continue on its current path. While the company will make the occasional acquisition, they aren't the headline makers that have grown common as of late (thinkAlphabetand Salesforce's recentmultibillion-dollar big-data takeovers). In a fast-growing and equally fast-changing industry, that conservative approach could spell serious trouble in the not-so-distant future. In the meantime, though, Oracle's slow-and-steady take on software could be a welcome change of pace during periods of overall volatility. The dividend isn't much to speak of, but Oracle expects another year of low-single-digit revenue growth (excluding currency exchange, naturally) to equate to double-digit earnings growth. For the new 2020 fiscal year, Catz said to look for 12% to 14% adjusted earnings growth in the first quarter and Oracle is projecting 20% for the full-year baseline. Note too that the stock's trailing 12-month price to free cash flow is at 16.8, and its one-year forward price to earnings is even lower at 13.9 (factoring for continued share buybacks to keep profits rising). Oracle isn't the most exciting of tech businesses, but if minimizing volatility and capturing slow-and-steady growth is your game, this stock is worth a look. 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 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors.Nicholas Rossolilloand his clients own shares of Alphabet (C shares), Microsoft, and Salesforce.com. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Microsoft, MongoDB, and Salesforce.com. The Motley Fool has adisclosure policy.
The next big thing? Algorand’s $60m raise leads to top-three market cap forecast The Algo, native token of Ethereum competitor Algorand, is not yet listed onexchanges, but that hasn’t stopped investors from speculating that the blockchain start-up will be a major new player in the crypto ballpark. The Algorand Foundation, which administers theproof-of-stakebased blockchain protocol, announced on Wednesday that it’s raised over$60 millionin its first token sale. Within four hours, the Boston-based startup,which is working towards building a borderless economy,sold 25 million Algos at $2.40 each. These are currently being transferred to buyers’ wallets. Algorand plans a series of sales to allow the tokens to gradually enter the market, auctioning off 600 million Algos yearly until the total supply reaches 10 billion over the next five years. Investors have valued the hugely-ambitious project at $24 billion, assuming the price holds up. Algorand boasts a transaction speed and low latency on a par with global payment networks such as Mastercard and Visa. Juan Villaverde, who heads theWeiss Cryptocurrency Ratingsteam, said that the technology behind the project was admirable. But he sounded a note of alarm over the steep valuation: “The token amount distributed to the public and the amount raised make no sense to us. It has an implied valuation close to that of Ethereum, the most successful and established smart contract platform in the world. In light of this, the token is sure to trade lower upon hitting exchanges, so we wonder if token holders’ interests are being looked after here.” However, On Yavin, founder and CEO of research and analysis firmCointelligence, disagreed. “In this case the valuation might be right, because there is a great and serious vision, and a professional, dedicated team at work here,” he toldDecrypt. Algorand was founded byMIT professor and Turing Award winnerSilvio Micali. He’sput together a crack team, including distributed computing pioneer,Maurice Herlihy, and Ethereum Virtual Machine developerGreg Colvin, who will play a prime role in creating atomic swaps, smart contracts and virtual machines for Algorand. “We’re well into the design process,” Colvin toldDecrypt. “Given the cryptography skills we have, we really want to push the state of the art. Silvio’s solved important scalability problems with blockchain, and that’s pretty exciting.” In addition to funds from Wednesday’s sale, Algorand has raised $66 million over the past year from investors including Union Square Ventures and Pillar Venture Capital. The startup was in takeover talks with Facebook last year. The deal fell through, partly due to disagreements over the amount of control the social media giant would exert and how decentralised its cryptocurrency project,Libra, would be, sources familiar with the mattertoldthe Financial Times. Good call. Now let’s see it give Facebook a run for its Libra.
Comcast is bringing Amazon Music to Xfinity X1 and Flex Amazon Musicmight be coming to a TV near you soon. Comcast is bringing the music streaming service toXfinity X1over the next few weeks. It says it's the first time you'll be able to access Amazon Music on a TV via a pay-TV provider. You can say "Amazon Music" into the remote to access the service's library and playlists, or find it in the Apps section of the system. Comcast also says Amazon Music is now accessible on Xfinity Flex,its streaming TV product.If you're an Amazon Prime member, you can choose from more than two million songs and thousands of playlists at no extra charge, while Amazon Music Unlimited subscribers have access to more than 50 million tunes. In any case, this could be a useful way to play Amazon Music through your display and your home theater system, particularly if they aren't compatible with Alexa.
Google is worth 50% more broken up: Analyst Wall Street is typically not a fan of big government breaking up companies, but at least one equity analyst is all for it. “I love the idea of breaking up these FAANGs,” Needham & Co. senior analyst Laura Martin tells Yahoo Finance’s “The First Trade.” Big tech is under the microscope, now thatU.S. regulators investigatewhether Amazon(AMZN), Apple(AAPL), Facebook(FB), and Google(GOOG)havetoo much power. While Silicon Valley tech titans defend their respective business models, Martin believes Google is worth 50% more broken up. “I think Google would be more well-run, and certainly have more disclosure if you broke it up,” she says. Martin envisions breaking up Google into four pure-plays: advertising network, search engine, YouTube and Waymo. “Wall Street vastly prefers to invest in pure-plays rather than a big conglomerate,” Martin says. “They’re all different businesses, they have different risk profiles, and therefore, different investment bases.” The Federal Trade Commission is taking the reins in antitrustinvestigationsof Amazon andFacebook, while the Department of Justice will oversee investigations of Alphabet’s Google and Apple. In a note to clients Martin wrote, “The fact that the FTC now has jurisdiction over FB and AMZN weakens their position as an investment alternative vs. AAPL and GOOGL.” Unlike the DOJ, which operates largely behind closed doors, Martin says the FTC is a more open process, and fears the companies will be “dragged through the mud” with hearings that play out in the court of public opinion. “Historically, the FTC has not gone through the breakup process. So I don’t expect them to break up [Facebook and Amazon], but I do expect them to hurt the consumer-facing businesses and the brand value of [these companies],” Martin says. Martin says even if Facebook can continue to grow users and revenue, she predicts the company’s margins will fall and its headline risks will rise steadily through the 2020 presidential election. Kim Forrest, chief investment officer at Bokeh Capital Partners, says investors will need to make some tough decisions as these government investigations of big tech play out. “You take a really good look and say who is likely to grow, even in a highly regulated arena,” Forrest says. “You keep those and jettison the rest... I don’t care what they’ve done in the past. Walk away. Alexis Christoforous is co-anchor of Yahoo Finance’s “The First Trade.” Follow her on Twitter@AlexisTVNews. Read more: Salesforce exec: There is a 'crisis of trust' in big tech Beyond Meat's stock could fall 50%: Strategist The Raytheon-United Technologies merger is a sign of more defense deals to come Charles Schwab strategist: Recession may be a '2020 event' Read the latest financial and business news from Yahoo Finance Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,LinkedIn,YouTube, andreddit.
IBM’s Blockchain Division Largely Unscathed After Layoffs of 1,700: Report Only a “very, very tiny percentage” of this month’s 1,700joblosses atIBMaffected itsblockchaindivision, The Blockreportedon June 20. Jerry Cuomo, the vice president of IBM Blockchain Technology, told the website that the tech giant is prioritizing blockchain skills when making hiring and firing decisions — adding it was “full steam ahead” for his department. The layoffs have been described as a “realignment plan.” The consulting arm of IBM’s blockchain business experienced some losses of  redundant positions, but its engineering side reportedly escaped unscathed. A source told The Block: “The product team had no layoffs, there was nothing out of development. It was very limited on the blockchain side.” IBM currently has about 340,000 employees, meaning that it let go of roughly 0.5% of its workforce. As CNBCreportedon June 7, this doesn’t mean a hiring freeze is on the horizon. More than 7,600 openings werelistedon IBM’s website at press time, many of them for newer areas of the business. Earlier this week, the companyannouncedupgrades to its IBM Blockchain Platform so it can run on multiple cloud networks includingMicrosoftAzureandAmazonWeb Services. IBM has also beeninvolvedin a blockchain platform known as “Device ID,” which officially launched last week. The solution is designed to authenticate digital signatures to clamp down onfinancial crime, and is set to be used by ninebanksacrossBrazil. • IBM Announces New Multicloud Update to Blockchain • Life of Luxury: Fashion Turns to Blockchain • Tracking Drugs on Blockchain: How Significant Is Walmart and IBM's New Collaboration? • Malaysia Launches Work Visa Program for Blockchain Tech Professionals