text stringlengths 1 675k ⌀ |
|---|
Strong Demand Aids Carpenter Technology, Transportation a Woe
On Jun 19, we issued an updated research report onCarpenter Technology CorporationCRS. Efforts to strengthen customer relationships, continued execution of its commercial strategy, and acquisitions will aid the company’s growth. Strong demand across most of its end markets, barring transportation, bode well.
Upbeat Q3 Earnings, Poised for Improved Q4
Carpenter Technology delivered adjusted earnings of 87 cents per share in the third quarter of fiscal 2019 (ended Mar 31, 2019), higher than the year-ago quarter’s 60 cents per share. Strong operational performance and healthy demand across key end-use markets led to the improvement in the quarterly results.
Notably, the company has delivered nine consecutive quarters of year over growth in both its top and bottom line. Further, in the third quarter of fiscal 2019, backlog rose 9% sequentially and 44% year over year — representing the 11th consecutive quarter of sequential backlog growth.
For the Specialty Alloys Operations (SAO) segment, the company expects continued positive demand across most end-use markets for fourth quarter of fiscal 2019. Operating income is expected to increase 5-10% sequentially, after adjusting for insurance recovery.For the Performance Engineered Products (PEP) segment, the company anticipates continued demand for titanium products to drive revenues in the fourth quarter of fiscal 2019. Operating income is expected to remain flat sequentially after adjusting for insurance benefit. The company also plans to make continued investments in additive manufacturing.
End Markets Remain Strong, Transportation Ails
Sales to the Aerospace and Defense end-use market continues to be robust, reflecting the impact of a strong product mix for materials utilized in aerospace engine applications and strong demand for defense applications driven by specific programs. The Medical end-use market continues to grow through expanded relationships with leading industry OEMs which increasingly recognize the value of the company’s high-end solutions.
Strong market conditions within the orthopedic and cardiology sub-markets will continue to bolster sales. The company intends to increase titanium capacity, backed by planned expansion of Dynamet business unit within the next fiscal year. Sales to the Energy end-use market has also been increasing on the back of oil and gas sub-market expansion and improved demand for power generation applications.
However, transportation end-use market sales have been affected by weaker demand for the company’s applications, of late. This can be attributed to trade actions and tariffs which have impacted customer order patterns. Further, a weak global light vehicle market is negatively impacting sales.
Commercial Strategy & Acquisitions: Other Catalysts
Carpenter Technology remains focused on continued execution of its commercial strategy. Through the ongoing implementation of the Carpenter Operating Model, the company has unlocked incremental capacity via efficiency and productivity improvements.
The company also increased focus and investment in targeted growth areas such as additive manufacturing and soft magnetics. The investment in the soft magnetics portfolio remains on track with $100 million investment in precision strip hot rolling mill.
There exists steady growth potential for solutions in this market given its auxiliary power unit application leadership and expected impact of electrification in the global transportation industry. Carpenter Technology will continue to grow from its acquisitions which include LPW Technology Ltd., CalRAM, and Puris LLC.
Near-Term Challenge in the PEP Segment
The PEP segment’s results in the third quarter of fiscal 2019 were below expectations owing to the underperformance of the Amega West business unit. Results of Amega West were impacted by challenges associated with lower-than-anticipated rentals for certain new tools that have been introduced recently.
Price Performance
Year-to-date, Carpenter Technology’s shares have gained 29.1%, outperforming the industry’s growth of 19.7%.
Zacks Rank & Stocks to Consider
Carpenter Technology currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the Basic Materials space are Materion Corp. MTRN, Flexible Solutions International Inc. FSI and AngloGold Ashanti Limited AU, all currently sporting a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Materion has an expected earnings growth rate of 27.3% for 2019. The company’s shares have gained 17.7% in the past year.
Flexible Solutions has a projected earnings growth rate of 342.9% for the current year. The company’s shares have soared 181.7% in a year’s time.
AngloGold has an estimated earnings growth rate of 90.6% for the ongoing year. Its shares have surged 95% in the past year.
Will you retire a millionaire?
One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”
Click to get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportFlexible Solutions International Inc. (FSI) : Free Stock Analysis ReportAngloGold Ashanti Limited (AU) : Free Stock Analysis ReportMaterion Corporation (MTRN) : Free Stock Analysis ReportCarpenter Technology Corporation (CRS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Could R3D Global Limited's (ASX:R3D) 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!
The big shareholder groups in R3D Global Limited (ASX:R3D) have power over the company. 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.'
R3D Global is a smaller company with a market capitalization of AU$1.6m, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions don't own shares in the company. Let's delve deeper into each type of owner, to discover more about R3D.
See our latest analysis for R3D Global
We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.
There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. R3D Global's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.
Hedge funds don't have many shares in R3D Global. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
It seems insiders own a significant proportion of R3D Global Limited. Insiders have a AU$599k stake in this AU$1.6m business. It is great to see insiders so invested in the business. It might be worth checkingif those insiders have been buying recently.
With a 11% ownership, the general public have some degree of sway over R3D. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
It seems that Private Companies own 52%, of the R3D stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
I always like to check for ahistory of revenue growth. You can too, by accessing this free chart ofhistoric revenue and earnings in thisdetailed graph.
Of coursethis may not be the best stock to buy. Therefore, you may wish to see ourfreecollection of interesting prospects boasting favorable financials.
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. |
Ex-NBA star Marcus Camby Settles Divorce Battle, Agrees To Pay Ex-Wife $4.1 Million
Former NBA star Marcus Camby has reached a deal to settle his divorce, agreeing to pay his ex-wife $4.1 million and $15k a month in support. According to court documents obtained by The Blast, Marcus has agreed to pay his former wife Eva a total of $4,100,000 in their divorce settlement. Per their deal, Marcus will pay a lump sum of $3,600,000 followed by an additional check of $500,000 as an equalization payment. They agree these payments will cover all obligations per their prenuptial agreement. Eva will leave the marriage with a 2018 Tesla X (white), Porsche Panamera, all bank accounts in her name, the home in Manvel, Texas, all of her jewelry and other personal effects, 50% of all furnishings, art, appliances, dishes, china, silverware, decoration and art at their martial home. Marcus gets to keep the 2018 Tesla (black), all other vehicles in his name and bank accounts under his name. He also keeps their martial home (wife has to leave this month) and all of his jewelry. He will also cover $35,000 for Eva’s divorce attorneys and outstanding credit card debt. Marcus agreed to also pay $8,5000 a month for their kid Milan and another $6,500 for Maya for a total of $15,000 a month. Eva Camby filed for divorce from Marcus after nearly 14 years of marriage. The two married in July 2005 and ceased living together on April 5, 2019. They share two minor kids. In her petition for divorce, Eva accused Marcus of causing her personal injuries and claims he “repeatedly and continuously committed adultery, including fathering an extra-martial child.” Eva wanted the prenuptial agreement they signed to be thrown out, saying it is "unconscionable" and claims she signed the deal "under duress." In addition, Eva claimed that Marcus "contracted an infectious disease" and "intentionally exposed" her to it. She said she was unsure if she has "contracted the infectious disease." Marcus Camby responded to the divorce and asked the judge to enforce their 2005 prenuptial agreement. He sought 50/50 custody of their kids and wanted the judge to order his ex to not trash him on social media or hide their kids from him. In regard to the STD allegation, he argued Eva's claims were barred because of the statute of limitations and “consent.” As The Blast first reported, Marcy Camby reached a child support and custody deal in December 2018 with a woman named Noemi Valdez. The two agreed that Camby is the father to Makiah Camby, born in 2011. Valdez will have primary custody and Camby will see his daughter two times a month, for three hours each visit. Story continues Camby will pay $4,000 in child support per month and both of them will cover any medical expenses. He will not have to pay for private schooling unless he agrees on the specific school. Valdez originally sued Camby seeking child support and full custody of their 7-year-old daughter, accusing the former NBA star of having a “pattern of child neglect.” View comments |
U.S. FTC objects to Qualcomm's submission of Apple documents in antitrust case
June 20 (Reuters) - The U.S. Federal Trade Commission on Thursday objected to a move by mobile chip supplier Qualcomm Inc to introduce internal Apple Inc documents in its fight to stop the enforcement of a May antitrust ruling.
On Tuesday, Qualcomm submitted a set of slides to U.S. District Judge Lucy Koh as part of its effort to put on hold a sweeping ruling that would alter its business model as it pursues an appeal. The slides, in which Apple outlined goals to "Create Leverage by Building Pressure" and "Hurt Qualcomm Financially," were part of the opening statement presentation in Qualcomm's separate civil trial against Apple in April.
FTC officials on Thursday said allowing the slides, which were not admitted as evidence in Qualcomm's trial with the FTC, to become part of the court records that higher courts will review would be "improper, unfair, and prejudicial." (Reporting by Stephen Nellis in San Francisco Editing by Leslie Adler) |
Teva Pharmaceutical Industries Ltd. (TEVA) Stock Sinks As Market Gains: What You Should Know
Teva Pharmaceutical Industries Ltd. (TEVA) closed at $8.12 in the latest trading session, marking a -0.73% move from the prior day. This change lagged the S&P 500's 0.95% gain on the day. Meanwhile, the Dow gained 0.94%, and the Nasdaq, a tech-heavy index, added 0.8%.
Prior to today's trading, shares of the company had lost 29.12% over the past month. This has lagged the Medical sector's gain of 5.28% and the S&P 500's gain of 2.47% in that time.
TEVA will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.58, down 25.64% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.27 billion, down 9.15% from the year-ago period.
TEVA's full-year Zacks Consensus Estimates are calling for earnings of $2.37 per share and revenue of $17.18 billion. These results would represent year-over-year changes of -18.84% and -8.87%, respectively.
Investors should also note any recent changes to analyst estimates for TEVA. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TEVA is currently a Zacks Rank #3 (Hold).
In terms of valuation, TEVA is currently trading at a Forward P/E ratio of 3.45. For comparison, its industry has an average Forward P/E of 6.95, which means TEVA is trading at a discount to the group.
It is also worth noting that TEVA currently has a PEG ratio of 0.94. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Medical - Generic Drugs stocks are, on average, holding a PEG ratio of 0.94 based on yesterday's closing prices.
The Medical - Generic Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 151, putting it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportTeva Pharmaceutical Industries Ltd. (TEVA) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Crocs (CROX) Gains But Lags Market: What You Should Know
Crocs (CROX) closed the most recent trading day at $17.87, moving +0.62% from the previous trading session. This move lagged the S&P 500's daily gain of 0.95%. Elsewhere, the Dow gained 0.94%, while the tech-heavy Nasdaq added 0.8%.
Heading into today, shares of the footwear company had lost 21.24% over the past month, lagging the Consumer Discretionary sector's gain of 1.89% and the S&P 500's gain of 2.47% in that time.
CROX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.48, up 37.14% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $357.23 million, up 8.91% from the year-ago period.
CROX's full-year Zacks Consensus Estimates are calling for earnings of $1.25 per share and revenue of $1.16 billion. These results would represent year-over-year changes of +45.35% and +6.77%, respectively.
It is also important to note the recent changes to analyst estimates for CROX. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. CROX is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that CROX has a Forward P/E ratio of 14.27 right now. Its industry sports an average Forward P/E of 14.49, so we one might conclude that CROX is trading at a discount comparatively.
Also, we should mention that CROX has a PEG ratio of 0.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CROX's industry had an average PEG ratio of 1.43 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportCrocs, Inc. (CROX) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Energy Transfer LP (ET) Gains But Lags Market: What You Should Know
In the latest trading session, Energy Transfer LP (ET) closed at $14.24, marking a +0.67% move from the previous day. This move lagged the S&P 500's daily gain of 0.95%. Elsewhere, the Dow gained 0.94%, while the tech-heavy Nasdaq added 0.8%.
Coming into today, shares of the energy-related services provider had lost 5.23% in the past month. In that same time, the Oils-Energy sector lost 1.31%, while the S&P 500 gained 2.47%.
Wall Street will be looking for positivity from ET as it approaches its next earnings report date. In that report, analysts expect ET to post earnings of $0.37 per share. This would mark year-over-year growth of 12.12%. Our most recent consensus estimate is calling for quarterly revenue of $14.75 billion, up 4.47% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.40 per share and revenue of $57.58 billion, which would represent changes of +21.74% and +6.46%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for ET. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.04% higher within the past month. ET is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that ET has a Forward P/E ratio of 10.07 right now. This represents a discount compared to its industry's average Forward P/E of 11.84.
The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 56, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportEnergy Transfer LP (ET) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Canada Goose (GOOS) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Canada Goose (GOOS) closed at $37.23, marking a +1.17% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.95%. Meanwhile, the Dow gained 0.94%, and the Nasdaq, a tech-heavy index, added 0.8%.
Coming into today, shares of the high-end coat maker had lost 25.04% in the past month. In that same time, the Retail-Wholesale sector gained 2.74%, while the S&P 500 gained 2.47%.
Wall Street will be looking for positivity from GOOS as it approaches its next earnings report date. In that report, analysts expect GOOS to post earnings of -$0.17 per share. This would mark a year-over-year decline of 41.67%. Our most recent consensus estimate is calling for quarterly revenue of $37.79 million, up 9.08% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.26 per share and revenue of $754.23 million, which would represent changes of +21.15% and +19.62%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for GOOS. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.94% lower. GOOS is currently a Zacks Rank #3 (Hold).
Investors should also note GOOS's current valuation metrics, including its Forward P/E ratio of 29.25. Its industry sports an average Forward P/E of 12.05, so we one might conclude that GOOS is trading at a premium comparatively.
Also, we should mention that GOOS has a PEG ratio of 1.03. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GOOS's industry had an average PEG ratio of 1.08 as of yesterday's close.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 89, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportCanada Goose Holdings Inc. (GOOS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Former FDIC chair: Trump 'should let Jay Powell do his job and he should do his'
Despite President Donald Trump’s ongoing pressure, theU.S. Federal Reserve left rates unchanged on Wednesday. The central bank did refrain from using the word“patient”in their release, signaling it could cut rates in the near future if needed. However, Federal Reserve Chairman Jerome Powell has made a clear stance that the Fed will not make rate decisions based on trade policy.
“The president keeps putting pressure and blame on the Fed for any kind of slowdown on the economy. [Trump] really should let Jay Powell do his job and he should do his job,” Sheila Bair, former chair of the U.S. Federal Deposit Insurance Corporation, told Yahoo Finance, adding that Trump “should negotiate and finalize the trade agreement. It’s hurting our economy, it’s hurting his re-election prospects next year.”
Bair explained that the ongoing trade dispute with China is a key problem for the economy, and a resolution should be a top priority for Trump. “If we did get a trade deal with China, it would be hugely beneficial to our economy and the stock market, in a way that’s really contributing to economic growth, not through monetary policy.”
Earlier this week, Trump confirmed a meeting with Chinese President Xi Jinping at the upcoming G20 summit later this month, indicating possible development in a trade war resolution.
Bair, who traveled to China last week and spoke to government officials and people in the finance industry, said that there is “an erroneous” perception overseas that the U.S. Federal Reserve makes interest rate decisions based on trade policy. Bair told Yahoo Finance, “that is the impression that is created when the president bashes the Fed. The Fed is just trying to do what is right for the economy.”
All in all, Bair is unsure that a resolution can be made. “Can he actually negotiate a deal? We see a lot of posturing, a lot of chest beating, a lot of putting peoples’ back to the wall, but where’s the agreement? That’s what we need.”
Taylor Locke is a Producer for Yahoo Finance On the Move. You can follow her on Twitter@itstaylorlocke.
Read the latest financial and business news from Yahoo Finance
Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,SmartNews,LinkedIn,YouTube, andreddit. |
Here's Why Gold Stocks Rose as Much as 15.3% Today
After meeting on Wednesday, the U.S. Federal Reserve announced itwouldn't be making any changes to interest rates at this time. However, the central bank said it was open to the possibility of reducing interest rates in the future if economic indicators warranted action. That statement pushed down yields on three-month and two-year bonds but resulted in bullish trading activity for gold and other precious metals.
In fact, the price of gold is flirting with $1,400 per ounce -- a level that hasn't been pierced since late 2013. That's having a positive effect on gold stocks, especially for small-cap companies most in need of a boost to operations.
Shares ofEldorado Gold(NYSE: EGO)led the pack with gains as high as 15.3%. Shares ofIAMGOLD(NYSE: IAG)weren't far behind with an intraday high of 14.4%. Meanwhile, shares ofCoeur Mining(NYSE: CDE),Yamana Gold(NYSE: AUY), andHecla Mining(NYSE: HL)each rose over 11%.
Image source: Getty Images.
Investors are increasingly optimistic that higher gold prices are here to stay, given signs that the U.S. economy and global economy are slowing. That would provide a healthy bump in operations for gold producers and potentially help to de-risk investments in smaller, riskier companies struggling to reduce costs or in the midst of ramping up important (and expensive) growth projects.
For instance, Eldorado Gold reported all-in sustaining costs (AISC) of $1,132 per ounce of gold sold in Q1. That's relatively high. Higher selling prices andrecent election results in Greececould provide more breathing room to the business.
IAMGOLD managed slightly better AISC of $1,086 per ounce of gold in Q1 2019 but encountered production issues at its Westwood mine due to increased earthquake activity. The company ismaking progress on cost-reduction efforts, which could deliver more value if gold prices keep trekking higher.
Image source: Getty Images.
Coeur Mining alsoran into production hurdlesin Q1 at its Palmarejo mine, which contributed 30% of total gold and 50% of total silver production in the quarter. However, that was expected, as the company mined through a lower-grade section of the asset. As Coeur Mining transitions back to higher-grade sections, gold and silver output will increase -- just in time to capture higher selling prices.
Meanwhile, Yamana Gold has for years been teasing investors with the growth potential of its Cerro Moro mine, which is now ramping up output. The company reported increases of18% for gold and 235% for silver output in Q1, compared to the year-ago period. Production is expected to rise for the next few years while AISC, which settled at $1,098 per gold equivalent ounce in Q1, is expected to fall.
That leaves Hecla Mining, which has encountered the most setbacks of the group. The company's recently acquired mines in Nevada arenot living up to expectations. Case in point: The assets reported an AISC of $3,056 per ounce in Q1, which pushed the company's total AISC for the quarter to $1,760 per ounce. That suggests the business needs a lot more than high gold prices to get back on course.
Gold prices often play off of economic indicators, so the recent surge to $1,400 per ounce isn't too surprising, given the circumstances. While higher selling prices can provide a tailwind to gold producers and provide more breathing room, investors shouldn't dismiss the risk of owning small-cap gold miners. Then again, most gold stocks never end up beating the returns of the S&P 500 over the long haul, which shouldn't be overlooked.
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
Maxx Chatskohas 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. |
Factors That Make Chevron (CVX) an Enticing Investment Pick
We are upbeat about Chevron Corporation ’s CVX prospects and believe it is a promising pick right now. The company currently carries a Zacks Rank #2 (Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best opportunities for investors. You can see the complete list of today’s Zacks #1 Rank stocks here . Let’s take a look at the other factors that make this integrated energy major an attractive bet. Strong Permian Focus The energy major expects its resource potential in the Permian — the most prolific basin in the United States — to jump from 9.3 billion barrel of oil equivalent (BBoE) in 2017 to 16.2 BBoE in 2019. Over the time frame, Chevron expects its portfolio value of its unconventional resources in the Permian to double. Notably, in the March quarter of 2019, the company produced 391 thousand barrel of oil equivalent per day (MBoE/D) from the Permian, reflecting an increase of 139 MBoE/D from a year ago. In fact, Chevron is planning to produce 900 MBoE/D by 2023 from the basin through 20 rigs. Attractive Dividend Chevron is a dividend aristocrat and has raised its dividend for 32 years in a row. This makes this stock attractive for dividend-hungry investors. Chevron also had a $4-billion share buyback program in place. The company has decided to increase the repurchase program to $5 billion by utilizing the $1 billion of cash termination fee it received from the failed acquisition of Anadarko Petroleum Corp. APC. This reflects the company’s strong commitment to returning capital to stock holders. Robust Financials The company has an industry-leading balance sheet with a net debt ratio of 13.5%, the lowest among other energy majors like BP plc BP, Royal Dutch Shell plc RDS.A, TOTAL SA TOT and Exxon Mobil Corp. XOM. Moreover, to remain cashflow neutral — for maintaining the same net debt position at year-end as at the beginning of the year — the required Brent crude oil price for Chevron is $51 a barrel, which is the lowest among oil majors, as per the company’s investor presentation. Story continues Will you retire a millionaire? One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.” Click to get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TOTAL S.A. (TOT) : Free Stock Analysis Report BP p.l.c. (BP) : Free Stock Analysis Report Royal Dutch Shell PLC (RDS.A) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Anadarko Petroleum Corporation (APC) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research |
Enphase Energy (ENPH) Stock Sinks As Market Gains: What You Should Know
Enphase Energy (ENPH) closed the most recent trading day at $18.40, moving -1.23% from the previous trading session. This move lagged the S&P 500's daily gain of 0.95%. Elsewhere, the Dow gained 0.94%, while the tech-heavy Nasdaq added 0.8%.
Heading into today, shares of the solar technology company had gained 22.41% over the past month, outpacing the Oils-Energy sector's loss of 1.31% and the S&P 500's gain of 2.47% in that time.
ENPH will be looking to display strength as it nears its next earnings release. On that day, ENPH is projected to report earnings of $0.14 per share, which would represent year-over-year growth of 600%. Meanwhile, our latest consensus estimate is calling for revenue of $121.19 million, up 59.67% from the prior-year quarter.
ENPH's full-year Zacks Consensus Estimates are calling for earnings of $0.52 per share and revenue of $483.76 million. These results would represent year-over-year changes of +420% and +53.01%, respectively.
Any recent changes to analyst estimates for ENPH should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ENPH currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that ENPH has a Forward P/E ratio of 35.83 right now. For comparison, its industry has an average Forward P/E of 18.79, which means ENPH is trading at a premium to the group.
The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 56, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportEnphase Energy, Inc. (ENPH) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Advanced Emissions Solutions (ADES) Gains But Lags Market: What You Should Know
Advanced Emissions Solutions (ADES) closed the most recent trading day at $12.64, moving +0.64% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.95%. Meanwhile, the Dow gained 0.94%, and the Nasdaq, a tech-heavy index, added 0.8%.
Coming into today, shares of the clean-coal technology company had gained 9.31% in the past month. In that same time, the Industrial Products sector gained 3.01%, while the S&P 500 gained 2.47%.
Investors will be hoping for strength from ADES as it approaches its next earnings release. In that report, analysts expect ADES to post earnings of $0.74 per share. This would mark a year-over-year decline of 1.33%. Our most recent consensus estimate is calling for quarterly revenue of $21.26 million, up 397.89% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.39 per share and revenue of $95.14 million, which would represent changes of +92.61% and +297.33%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for ADES. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ADES currently has a Zacks Rank of #4 (Sell).
Investors should also note ADES's current valuation metrics, including its Forward P/E ratio of 3.7. This represents a discount compared to its industry's average Forward P/E of 24.25.
The Pollution Control industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAdvanced Emissions Solutions, Inc. (ADES) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Alteryx, Inc. (AYX) Gains But Lags Market: What You Should Know
Alteryx, Inc. (AYX) closed at $109.98 in the latest trading session, marking a +0.85% move from the prior day. The stock lagged the S&P 500's daily gain of 0.95%. Elsewhere, the Dow gained 0.94%, while the tech-heavy Nasdaq added 0.8%.
Heading into today, shares of the company had gained 22.25% over the past month, outpacing the Computer and Technology sector's gain of 0.95% and the S&P 500's gain of 2.47% in that time.
Wall Street will be looking for positivity from AYX as it approaches its next earnings report date. In that report, analysts expect AYX to post earnings of -$0.06 per share. This would mark year-over-year growth of 33.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $76.45 million, up 63.35% from the year-ago period.
AYX's full-year Zacks Consensus Estimates are calling for earnings of $0.43 per share and revenue of $359.95 million. These results would represent year-over-year changes of +2250% and +76.18%, respectively.
It is also important to note the recent changes to analyst estimates for AYX. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.68% higher within the past month. AYX is currently a Zacks Rank #2 (Buy).
Looking at its valuation, AYX is holding a Forward P/E ratio of 252.3. This represents a premium compared to its industry's average Forward P/E of 64.47.
We can also see that AYX currently has a PEG ratio of 18.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.6 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 89, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAlteryx, Inc. (AYX) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Constellation Brands (STZ) Gains But Lags Market: What You Should Know
Constellation Brands (STZ) closed at $185.74 in the latest trading session, marking a +0.77% move from the prior day. The stock lagged the S&P 500's daily gain of 0.95%. Meanwhile, the Dow gained 0.94%, and the Nasdaq, a tech-heavy index, added 0.8%.
Heading into today, shares of the wine, liquor and beer company had lost 10.08% over the past month, lagging the Consumer Staples sector's gain of 1.12% and the S&P 500's gain of 2.47% in that time.
Wall Street will be looking for positivity from STZ as it approaches its next earnings report date. This is expected to be June 28, 2019. In that report, analysts expect STZ to post earnings of $2.09 per share. This would mark a year-over-year decline of 5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.06 billion, up 0.79% from the year-ago period.
STZ's full-year Zacks Consensus Estimates are calling for earnings of $8.56 per share and revenue of $7.78 billion. These results would represent year-over-year changes of -7.76% and -4.2%, respectively.
Investors might also notice recent changes to analyst estimates for STZ. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.69% higher. STZ is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, STZ is currently trading at a Forward P/E ratio of 21.52. This represents a discount compared to its industry's average Forward P/E of 23.17.
Meanwhile, STZ's PEG ratio is currently 2.51. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Beverages - Alcohol industry currently had an average PEG ratio of 3.42 as of yesterday's close.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportConstellation Brands Inc (STZ) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Criteo S.A. (CRTO) Gains But Lags Market: What You Should Know
In the latest trading session, Criteo S.A. (CRTO) closed at $18.57, marking a +0.05% move from the previous day. The stock lagged the S&P 500's daily gain of 0.95%. Meanwhile, the Dow gained 0.94%, and the Nasdaq, a tech-heavy index, added 0.8%. Prior to today's trading, shares of the company had lost 6.31% over the past month. This has lagged the Computer and Technology sector's gain of 0.95% and the S&P 500's gain of 2.47% in that time. CRTO will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.41, down 22.64% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $225.90 million, down 1.88% from the prior-year quarter. Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.42 per share and revenue of $980.21 million. These totals would mark changes of -2.81% and +1.53%, respectively, from last year. It is also important to note the recent changes to analyst estimates for CRTO. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook. Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CRTO is currently sporting a Zacks Rank of #1 (Strong Buy). Investors should also note CRTO's current valuation metrics, including its Forward P/E ratio of 7.66. This represents a discount compared to its industry's average Forward P/E of 29.64. Story continues It is also worth noting that CRTO currently has a PEG ratio of 1.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CRTO's industry had an average PEG ratio of 4.4 as of yesterday's close. The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% of all 250+ industries. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Criteo S.A. (CRTO) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research |
Iron Mountain (IRM) Stock Sinks As Market Gains: What You Should Know
Iron Mountain (IRM) closed at $32.55 in the latest trading session, marking a -0.03% move from the prior day. This move lagged the S&P 500's daily gain of 0.95%. At the same time, the Dow added 0.94%, and the tech-heavy Nasdaq gained 0.8%.
Heading into today, shares of the real estate investment trust had gained 2.97% over the past month, outpacing the Finance sector's gain of 2.43% and the S&P 500's gain of 2.47% in that time.
IRM will be looking to display strength as it nears its next earnings release. On that day, IRM is projected to report earnings of $0.51 per share, which would represent a year-over-year decline of 8.93%. Our most recent consensus estimate is calling for quarterly revenue of $1.07 billion, up 0.76% from the year-ago period.
IRM's full-year Zacks Consensus Estimates are calling for earnings of $2.23 per share and revenue of $4.31 billion. These results would represent year-over-year changes of -3.04% and +1.92%, respectively.
Any recent changes to analyst estimates for IRM should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.46% lower. IRM currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, IRM is holding a Forward P/E ratio of 14.61. This represents a discount compared to its industry's average Forward P/E of 15.7.
Investors should also note that IRM has a PEG ratio of 3.15 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 3.09 based on yesterday's closing prices.
The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportIron Mountain Incorporated (IRM) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Occidental Petroleum (OXY) Outpaces Stock Market Gains: What You Should Know
Occidental Petroleum (OXY) closed the most recent trading day at $51.30, moving +1.99% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.95%. Meanwhile, the Dow gained 0.94%, and the Nasdaq, a tech-heavy index, added 0.8%.
Coming into today, shares of the oil and gas exploration and production company had lost 4.7% in the past month. In that same time, the Oils-Energy sector lost 1.31%, while the S&P 500 gained 2.47%.
Investors will be hoping for strength from OXY as it approaches its next earnings release. In that report, analysts expect OXY to post earnings of $1.08 per share. This would mark a year-over-year decline of 1.82%. Our most recent consensus estimate is calling for quarterly revenue of $4.50 billion, up 10.14% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.80 per share and revenue of $17.24 billion, which would represent changes of -24.15% and -8.7%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for OXY. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.15% lower. OXY currently has a Zacks Rank of #3 (Hold).
Investors should also note OXY's current valuation metrics, including its Forward P/E ratio of 13.24. This represents a discount compared to its industry's average Forward P/E of 13.95.
Also, we should mention that OXY has a PEG ratio of 2.65. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Integrated - United States was holding an average PEG ratio of 1.58 at yesterday's closing price.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow OXY in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportOccidental Petroleum Corporation (OXY) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Honeywell (HON) Gains But Lags Market: What You Should Know
Honeywell (HON) closed the most recent trading day at $176.29, moving +0.5% from the previous trading session. This move lagged the S&P 500's daily gain of 0.95%. Elsewhere, the Dow gained 0.94%, while the tech-heavy Nasdaq added 0.8%.
Coming into today, shares of the industrial conglomerate had gained 3.6% in the past month. In that same time, the Conglomerates sector gained 2.12%, while the S&P 500 gained 2.47%.
Investors will be hoping for strength from HON as it approaches its next earnings release. In that report, analysts expect HON to post earnings of $2.08 per share. This would mark a year-over-year decline of 1.89%. Our most recent consensus estimate is calling for quarterly revenue of $9.36 billion, down 14.28% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.10 per share and revenue of $37.17 billion, which would represent changes of +1.12% and -11.08%, respectively, from the prior year.
Any recent changes to analyst estimates for HON should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. HON is currently a Zacks Rank #2 (Buy).
Digging into valuation, HON currently has a Forward P/E ratio of 21.64. This represents a premium compared to its industry's average Forward P/E of 16.86.
It is also worth noting that HON currently has a PEG ratio of 2.34. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HON's industry had an average PEG ratio of 1.81 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow HON in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportHoneywell International Inc. (HON) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Amgen (AMGN) Gains But Lags Market: What You Should Know
Amgen (AMGN) closed at $184.08 in the latest trading session, marking a +0.72% move from the prior day. The stock lagged the S&P 500's daily gain of 0.95%. Meanwhile, the Dow gained 0.94%, and the Nasdaq, a tech-heavy index, added 0.8%.
Heading into today, shares of the world's largest biotech drugmaker had gained 6.7% over the past month, outpacing the Medical sector's gain of 5.28% and the S&P 500's gain of 2.47% in that time.
Wall Street will be looking for positivity from AMGN as it approaches its next earnings report date. In that report, analysts expect AMGN to post earnings of $3.59 per share. This would mark a year-over-year decline of 6.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.66 billion, down 6.63% from the year-ago period.
AMGN's full-year Zacks Consensus Estimates are calling for earnings of $13.92 per share and revenue of $22.58 billion. These results would represent year-over-year changes of -3.33% and -4.94%, respectively.
Investors might also notice recent changes to analyst estimates for AMGN. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.2% lower. AMGN is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, AMGN is currently trading at a Forward P/E ratio of 13.14. This represents a discount compared to its industry's average Forward P/E of 23.52.
Meanwhile, AMGN's PEG ratio is currently 2.23. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.84 as of yesterday's close.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAmgen Inc. (AMGN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Zynga (ZNGA) Flat As Market Gains: What You Should Know
In the latest trading session, Zynga (ZNGA) closed at $6.07, marking no change from the previous day. This change lagged the S&P 500's daily gain of 0.95%. Elsewhere, the Dow gained 0.94%, while the tech-heavy Nasdaq added 0.8%.
Coming into today, shares of the maker of "FarmVille" and other online games had lost 2.25% in the past month. In that same time, the Consumer Discretionary sector gained 1.89%, while the S&P 500 gained 2.47%.
Investors will be hoping for strength from ZNGA as it approaches its next earnings release. On that day, ZNGA is projected to report earnings of $0.05 per share, which would represent year-over-year growth of 150%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $361.57 million, up 54.56% from the year-ago period.
ZNGA's full-year Zacks Consensus Estimates are calling for earnings of $0.22 per share and revenue of $1.46 billion. These results would represent year-over-year changes of +175% and +50.62%, respectively.
Any recent changes to analyst estimates for ZNGA should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 6.67% lower. ZNGA currently has a Zacks Rank of #3 (Hold).
Digging into valuation, ZNGA currently has a Forward P/E ratio of 27.59. This valuation marks a premium compared to its industry's average Forward P/E of 21.78.
Investors should also note that ZNGA has a PEG ratio of 1.84 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Gaming industry currently had an average PEG ratio of 1.32 as of yesterday's close.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportZynga Inc. (ZNGA) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Why Shares of Steelcase Plunged on Thursday
What happened Shares of Steelcase (NYSE: SCS) fell more than 11% on Thursday after the office furniture maker reported quarterly results that fell short of expectations. The company said it believes it can make up for the shortfall later in the year, but investors on Thursday were in no mood to hang around and find out. So what After markets closed Wednesday, Steelcase reported fiscal first-quarter earnings of $0.15 per share on revenue of $824.30 million, falling short of consensus estimates of $0.18 per share in earnings on sales of $839.07 million. Revenue grew by 9.3% and net income grew by 4.7% year over year, but the company wasn't able to generate the level of growth analysts had hoped for. An angry investor looks at a falling stock chart on a tablet at his desk. Image source: Getty Images. Company CEO Jim Keane, in a statement accompanying the results, attributed the miss to some of the broader macroeconomic trends that are impacting the economy, namely the uncertainty that dominated headlines early in the quarter and the labor shortages that have slowed construction projects. "We fell just short of our revenue estimates because order growth was weighted toward the second half of the quarter and customers requested delivery dates later than we typically see, in part because of construction labor shortages that caused their projects to be delayed," Keane said. "We ended the quarter with a high backlog and a strong pipeline of customer opportunities which support our outlook for the second quarter." Reinforcing that projection, Steelcase said it expects to generate full-year 2019 earnings of between $1.20 and $1.35 per share, in line with consensus expectations of $1.29 per share in earnings, and reaffirmed its fiscal 2020 target of 5.5% to 9.5% revenue growth. Now what So if Steelcase is so confident that the issues plaguing the quarter are temporary, why did investors run for the exits on Thursday? It could be the uncertainty that comes with problems that are beyond management's ability to control, which tends to spook investors. Story continues Following the miss, Steelcase has become more of a "show-me" story. It's up to management in three months' time to show that this miss was not the beginning of a troubling longer-term trend. More From The Motley Fool 10 Best Stocks to Buy Today The $16,728 Social Security Bonus You Cannot Afford to Miss 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) What Is an ETF? 5 Recession-Proof Stocks How to Beat the Market Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy . |
U.S. has no plans to cap H-1B work visa programme - State Department
WASHINGTON (Reuters) - The Trump administration has no plans to cap H-1B work visas for nations that force foreign companies to store data locally, the State Department said on Thursday.
Reuters reported on Wednesday that the United States had told India it was considering restricting the H-1B visa programmes for countries with the data storage requirement. The H-1B programme issues U.S. visas to skilled foreign workers.
"The Trump Administration has no plans to place caps on H-1B work visas for nations that force foreign companies to store data locally," a State Department spokeswoman said in a statement in response to the Reuters article.
While an administration's "Buy American Hire American" executive order calls for a broad review of U.S. worker visa programmes, including the H-1B program, it was not targeted at a specific country, the spokeswoman said.
It is "completely separate from our ongoing discussions with India about the importance of ensuring the free flow of data across borders," the spokeswoman added.
Earlier on Thursday, India said it was in talks with the United States on H-1B visas, but foreign ministry spokesman Raveesh Kumar told a news conference: "We have not heard anything officially from the U.S. government" on capping such permits for Indians.
U.S. Secretary of State Mike Pompeo is scheduled to visit New Delhi next week for talks that will include areas of disagreement between the two countries over trade.
Two senior Indian officials told Reuters on Wednesday they had been briefed last week on a U.S. plan to cap the number of H-1B visas given annually to Indians at between 10% and 15% of the total number issued.
There is no country-specific limit on the 85,000 H-1B work visas the United States issues every year, and an estimated 70% of them go to Indians.
(Reporting by Lesley Wroughton; Editing by Tom Brown and Peter Cooney) |
Will Delivery Transform Dunkin' Brands' Business?
Dunkin' Brands(NASDAQ: DNKN)formally entered the food delivery space on June 17, beginning what will be a nationwide rollout in one of its most doughnut-saturated markets: New York City. PartnerGrubHub(NYSE: GRUB)is now picking up customers' orders from more than 400 Dunkin' locations across the five boroughs, via its Seamless brand. The company says it will expand delivery service to other markets in the next few months, among them Chicago, Philadelphia, and Boston.
For Dunkin' Brands shareholders wondering how all this might impact the chain's bottom line, one of the marketing hooks of this campaign should be of interest to you. Those in the NYC metro area who order from Dunkin' through Seamless or Grubhub through June 23 using a designated code will have a chance to win an "exclusive, tricked out Dunkin' bicycle" designed in conjunction with the delivery launch.
Image source: Dunkin' Brands.
This bicycle is emblematic of the campaign, and the image encapsulates financial implications of the new partnership. Bikes are the delivery vehicles of choice in densely populated New York; automobile delivery is relegated to afterthought status due to the Big Apple's notorious traffic. And given the number of locations the chain has blanketing the city, most people who would order from one will be in close enough proximity to a Dunkin' that delivery via foot, bicycle or motorbike are viable options.
Conditions in most of the markets where Dunkin' will initially offer delivery are similarly dense and urban. If you think about the economics of a typical big-city Dunkin' location, those choices make sense.
As I explained in a recent piece oninvesting in food delivery companies, restaurants must pay commissions for every completed delivery -- fees that drag on those restaurants' profit margins. Those that produce high annual sales and consistent profitability can treat their delivery revenue streams as incremental boosts to their bottom lines. This certainly describes Dunkin's NYC locations, on average. But in smaller markets, tacking on a delivery option might be less than ideal for the doughnut purveyor, as it may simply weigh on franchisees' profits and cash flow.
As often seems to be the case with Dunkin' Brands, its decision to climb on board with this trend follows the successful implementation of a similar plan by fast-food giantMcDonald's(NYSE: MCD). On McDonald's most recentearnings conference call, executives discussed the numerous benefits it had reaped from initiating delivery service in a number of global markets, as well as in the U.S. via its partnership withUber's(NYSE: UBER)delivery arm, Uber Eats.
McDonald's views delivery as a sales accelerator, and it currently offers delivery in 20,000 locations across 75 countries. CEO Steve Easterbrook observed on the earnings call that delivery has grown into a $3 billion business for the company's owned and franchised locations -- amounting to roughly 3% of annual systemwide sales.
Will delivery prove to be a sales accelerator for Dunkin' as well? Without test data that only the company is privy to, it's impossible to guess how much consumer demand exists for its doughnuts, coffee beverages, and other wares in a delivery context. McDonald's' foray into the U.S. market yielded some surprising early discoveries, such as the propensity of college students to order burgers delivered to their dorm rooms late in the evening. We may see some similar unanticipated ordering patterns emerge as Dunkin' begins to share data with investors over the next few quarters.
Eventually, delivery could probably provide a systemwide sales boost to Dunkin' of the same magnitude that it has given to McDonald's -- 1% to 3%. The would be a meaningful improvement. And by offering this option, Dunkin' will avoid losing business among customers for whom ordering out is becoming second nature. But beyond the incremental profits to be garnered in major metropolitan areas, delivery is unlikely to have anything like a major impact on the company's bottom line -- at least, not for a very long while.
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 recommends Dunkin' Brands Group, Grubhub, and Uber Technologies. The Motley Fool has adisclosure policy. |
InterDigital Takes Part in Wireless Technology Demo at EUCNC
InterDigital, Inc.IDCC has announced its participation in two significant wireless technology demonstrations at the European Conference on Network and Communications (EUCNC) this week. The company continues to play a crucial role by contributing wireless technology intellectual property and coordination.It intends to exhibit specific application for 5G network resource slicing to meet Ultra-reliable low latency communication and enhanced Mobile Broadband goals, and ultra-high throughput encoder and decoder solutions for various use cases beyond 5G.InterDigital’s commitment toward licensing its broad portfolio of technologies to wireless terminal equipment makers, which allows it to expand its core market capability, is laudable. The company’s global footprint, diversified product portfolio and ability to penetrate in different markets instill optimism.InterDigital aims to enhance its licensing revenue base by adding licensees and expanding into adjacent technology areas that align with its intellectual property position. In the first demo, the wireless R&D company plans to display how the H2020 5G-CORAL architecture — a distributed and virtualized computing hierarchy — can be used to support simultaneous 5G slices for a remote robotic control and actuation application, based on adaptive 360-degree video technology.The company is optimizing its strength in core wireless licensing business. It remains poised to benefit from future growth opportunities, fueled by the 5G rollout. In the second demo, the EU EPIC consortium, — consisting of eight partners from seven different countries (Austria, Belgium, France, Germany, Sweden, Turkey and United Kingdom) — will highlight its progress in solving the ultra-high throughput encoder and decoder challenges for beyond 5G wireless systems.Moreover, in November 2018, InterDigital and other members of the 5G-CORAL consortium conducted their first 5G trial at Global Mall Nangang Station Store in Taipei, Taiwan. The trial was substantial in demonstrating how 5G can effectively work across a modern network deployment. The company aims to become a leading designer and developer of technology solutions and innovation for the mobile industry, IoT and allied technology areas by leveraging its R&D capabilities, technological knowhow and rich industry experience.InterDigital has long-term EPS growth expectation of 15%. It remains committed to its objective of expanding revenue sources while controlling expenses. The stock has lost 23.9% against the industry’s rise of 12.1% in the past year. Nevertheless, management provided healthy revenue guidance for second-quarter 2019, with an expectation of $73-$77 million.
InterDigital currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Comtech Telecommunications Corp. CMTL, Juniper Networks, Inc. JNPR and Ubiquiti Networks, Inc. UBNT. While Comtech sports a Zacks Rank #1 (Strong Buy), Juniper and Ubiquiti carry a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.Comtech has long-term earnings growth expectation of 5%.Juniper has long-term earnings growth expectation of 6.2%.Ubiquiti has long-term earnings growth expectation of 19.8%.Will you retire a millionaire?One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”Click to get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportJuniper Networks, Inc. (JNPR) : Free Stock Analysis ReportUbiquiti Networks, Inc. (UBNT) : Free Stock Analysis ReportInterDigital, Inc. (IDCC) : Free Stock Analysis ReportComtech Telecommunications Corp. (CMTL) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
UPDATE 1-Trump, Trudeau seek collaboration on 'critical minerals' - White House
(Adds background, quote from White House statement)
WASHINGTON, June 20 (Reuters) - U.S. President Donald Trump and Canadian Prime Minister Justin Trudeau ordered officials on Thursday to develop a plan for U.S.-Canada collaboration on "critical minerals," the White House said in a statement after a meeting of the two leaders.
Washington has grown concerned about its dependence on imports of rare earth minerals from China after Beijing suggested using them as leverage in their trade war.
Rare earths, a group of 17 elements that appear in low concentrations in the ground, are used in a wide variety of products ranging from lasers and military equipment to magnets found in consumer electronics.
China supplied 80% of the rare earths imported by the United States from 2014 to 2017.
Trump and Trudeau "instructed officials to develop a joint action plan on critical minerals collaboration," the White House statement said. (Reporting by Eric Beech; Editing by Mohammad Zargham and Jonathan Oatis) |
Roger Stone’s Social Media Posts Violated His Terms of Release, Prosecutors Say
Embattled political consultant Roger Stone risks being jailed during his criminal case after prosecutors accused President Donald Trump’s longtime ally of violating his bail terms by attacking Special Counsel Robert Mueller’s Russia probe in recent social-media posts.
Stone may have tainted the jury pool with posts on Instagram andFacebookquestioning the veracity of Mueller’s finding that Russia hacked into the Democratic National Committee’s servers, prosecutors said in a letter to the judge handling the case. Stone claimed Russia didn’t do it.
“The truth is slowly emerging. #NoCollusion,” Stone, 66, wrote in one such post. He also questioned in the posts why more mainstream news organizations weren’t covering his claims.
“It is exactly the kind of ‘fanning of the flames’ that the court warned could ‘incite others’ or impair ‘a fair trial by an impartial jury,”’ prosecutors wrote in the letter Thursday to U.S. District Judge Amy Berman Jackson in Washington.
It’s not the first time prosecutors have accused Stone of violating the court’s orders with his social-media posts. In February, he risked having his bail revoked after he posted to his Instagram account a photo of the judge presiding over the case with what appeared to be the crosshairs of a gun sight near her head.
Stone was indicted in January for lying to Congress and obstructing lawmakers’ probe into Russian meddling in the 2016 election, including its DNC hack. But Stone said there’s no evidence to support Mueller’s charges because the U.S. can’t prove the Russian government hacked the servers or sent the stolen emails to WikiLeaks for publication — the very events Stone allegedly lied about.
While Mueller’s long-awaited report concluded that Russia had carried out the hack, it cited the findings of a private cybersecurity firm hired by the DNC to investigate, rather than the FBI, Stone said.
In May, Stone asked Berman to suppress all evidence against him because U.S. agents had allegedly made “reckless misrepresentations” in their applications to search his emails, cell phones and computers. The warrants were based on the false premise that the DNC had been hacked, he claimed.
The U.S. responded Thursday by saying its investigation did uncover evidence that Russians had hacked the DNC server, but that Stone hasn’t seen the evidence because it doesn’t relate to his case.
“Russia’s role in the DNC hack is not material to the 18 findings of probable cause that Stone appears to be challenging,” the government said. “Nor does it bear on the charges at issue in this case — making false statements to Congress, obstruction of Congress, and witness tampering.”
The case is U.S.A. v. Stone, 1:19-cr-00018, U.S. District Court for the District of Columbia (Washington). |
Slack's Public Now. Here's What Investors Should Watch
Slack(NYSE: WORK)took a less-traveled path to becoming a public company. It used a direct listing rather than the more traditional initial public offering (IPO). A direct listing isn't about the company raising capital. Instead, it's a way for insiders to cash out without new equity being issued.
That, in theory, removes some of thevolatilitythat has often occurred after an IPO. That might prevent some of the drama that occurred after recent IPOs byLyftandUber. In reality, short-term volatility isn't something investors should focus on.
Slack'slong-term valuewill depend on whether it can grow its user base and figure out how to make money. That's something the company has not yet demonstrated.
Slack has become a default platform for intra-office communication at many companies. Image source: Getty Images.
In itsS-1 filingwith the SEC, Slack showed that it has a very large customer base. The company said its communication product is used by more than 10 million people across 600,000 organizations in more than 150 countries. Those users collectively spend more than 50 million hours using Slack in a typical week "on either a free or paid subscription plan."
The free part may be a big issue with future profitability, because the company currently does not make money. Slack's revenue has grown from $105.2 million in 2017 to $220.5 million in 2018 and $400.6 million in 2019. That's great, but the company laid out a pattern of steady losses in its S-1.
"We continue to invest in growing our business to capitalize on our market opportunity," the company wrote. "As a result, we incurred net losses of $146.9 million, $140.1 million, and $138.9 million in fiscal years 2017, 2018, and 2019, respectively. Our net losses have been decreasing as a percentage of revenue over time as revenue growth has outpaced the growth in operating expenses."
Yes, losses have decreased as a percentage of revenue, but the bottom-line number has remained pretty steady. That's something the company could turn around if it makes some changes, according toSmartsheetChief Product Officer Gene Farrell in an email to The Motley Fool.
"Slack's path to profitability lies in pivoting to become not just a communications tool, but a workplace hub," wrote Farrell, whose company's product has an integration with Slack. "The company has started to make some moves in that direction, but it's a challenge when competing against companies like [Alphabet's] Google andMicrosoftthat offer a complete suite of workplace tools that include messaging offerings."
It's fair to say that Slack has changed how people work. It has become a default tool that has lessened email use and made communication easier at the companies that use it. Building on that, however, may not be easy.
"The nature of work is changing and workers have a preference for tools that better support modern collaborative work than traditional productivity apps. This is a huge market opportunity and it will be interesting to see how much of it Slack can capture," Farrell wrote.
Basically, on its own, the current Slack product may not have a path to profitability, or at least it faces a very long slog to get there. To truly make money and offer a good return for investors, Slack needs to be more than it is.
The company has an audience. Its ability to make money, however, may depend on whether it can get that audience to pay for products it has yet to create.
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.Daniel B. Klineowns shares of Microsoft. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Microsoft. The Motley Fool recommends Uber Technologies. The Motley Fool has adisclosure policy. |
Here's the Reason Behind Lowe's Dismal Run on the Bourses
Lowe’s Companies, Inc.’s LOW performance has been unimpressive on the bourses lately. The stock has declined 4.7% against the industry’s growth of 5.9% in the past three months. Also, the stock underperformed the Zacks Retail-Wholesale sector and S&P 500’s growth of 1.2% and 2%, respectively.
In fact, in the past month, shares of this North Carolina-based company lost 11%. This may be attributable to the company’s first-quarter fiscal 2019 results, wherein the bottom line fell short of the Zacks Consensus Estimate. Following this, management trimmed fiscal 2019 earnings view.Consequently, the Zacks Consensus Estimate for the current quarter and fiscal year have moved south by 24 cents and 45 cents to $2.02 and $5.59, respectively, over the past 30 days.Let’s Delve Deeper...Lowe’s posted adjusted earnings of $1.22 per share during first-quarter fiscal 2019 that missed the Zacks Consensus Estimate of $1.33. Moreover, softness in the Canadian housing market continues to act as a deterrent. The company now projects adjusted earnings per share of $5.45-$5.65, down from the previous guidance of $6.00-$6.10.Further, the company witnessed gross margin contraction in the fiscal first quarter, owing to cost pressures. Consequently, this had a negative impact on the adjusted operating margin, which declined 45 basis points during the quarter. This led the company to revise its fiscal 2019 operating margin outlook. It now envisions adjusted operating margin to expand 20-50 basis points compared with growth of 85-95 basis points anticipated earlier.Will Efforts Counter Hurdles?Despite such downsides, the decent top-line performance has been providing some cushion to the company for a while. Notably, the metric grew 2.2% year over year during the first quarter of fiscal 2019. Moreover, comparable sales rose 3.5% in the quarter under review, following an increase of 1.7% in the fourth quarter of fiscal 2018. For fiscal 2019, management continues to envision total sales growth of approximately 2%, with comparable sales expected to increase roughly 3%.That said, there lies a significant opportunity for the company to enhance pro-sales. Lowe’s is steadily progressing on key sales initiatives, comprising inventory levels, job lot quantities, pro-service levels, better product presentation, in-store merchandising and labor scheduling system.These apart, strong digital presence also acts as a key growth driver. Incidentally, during the first quarter of fiscal 2019, the company achieved 16% comps growth from lowes.com, following an increase of 11% registered in the preceding quarter.
Going ahead, management continues to augment omni-channel capabilities and enhance consumers’ digital shopping experience. Lowe’s is also ramping up the amount of SKUs and assortments on lowes.com. Such well-chalked efforts are likely to provide further impetus to its comps in the forthcoming periods.Additionally, comparable sales for the U.S. home improvement business increased 4.2% during the first quarter, with growing consumers’ preference to invest in homes. Moreover, an improving job scenario, gradual recovery in the housing market and merchandising initiatives bode well for Lowe’s. Such factors have been prompting the company to exit less profitable businesses and allocate more resources in the booming home improvements arena.All said, we hope that these above-mentioned initiatives will drive the top line and support this Zacks Rank #3 (Hold) stock.3 Stocks to WatchHibbett Sports HIBB has a long-term earnings growth rate of 6.5% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Regis Corp. RGS has a long-term earnings growth rate of 7.5% and a Zacks Rank #2 (Buy).Tractor Supply Company TSCO has a long-term earnings growth rate of 11.4% and a Zacks Rank #2.Will you retire a millionaire?One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”Click to get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportLowe's Companies, Inc. (LOW) : Free Stock Analysis ReportHibbett Sports, Inc. (HIBB) : Free Stock Analysis ReportTractor Supply Company (TSCO) : Free Stock Analysis ReportRegis Corporation (RGS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
LATAM Airlines' Cost-Cut Plans Bode Well, Currency Woes Linger
We recently issued an updated report on LATAM Airlines Group LTM. While the Latin American carrier’s efforts to control non-fuel unit costs are encouraging, devaluation of local currencies do not bode well for the company.
In fact, the company’s results in the first-quarter of 2019, released in May, were hurt by currency-related woes. Lackluster passenger and cargo revenues also resulted in the company underperforming in the first-quarter.
Capacity-related woes are also hurting the company. In fact, load factor (% of seats filled by passengers) has declined year to date owing to capacity expansion outweighing traffic growth.
Owing to the headwinds, shares of LATAM Airlines have underperformed its industry on a year-to-date basis. The stock has declined 10% compared with the industry's 7.2% rise.
However, we are impressed with the company’s efforts to reward its shareholders. In 2018, LATAM Airlines paid dividends worth $72.6 million, up 9% year over year. Operating margin guidance for 2019 is also impressive. The carrier expects the metric between 7% and 9% compared with the 2018 operating margin of 6.8%.
Passenger revenues increased almost 2.5% year over year in 2018. Also, cargo revenues increased 6% in the same period. This bodes well for the stock and should boost the top line going forward.
Moreover, LATAM Airlines’ association with key airline players is likely to help the company attract additional traffic on key routes. Additionally, the company's prudent cost management should aid the bottom line going forward.
Zacks Rank & Key Picks
LATAM Airlines carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are Air China Ltd. AIRYY, SkyWest SKYW and GATX Corp. GATX. While Air China sports a Zacks Rank #1 (Strong Buy), SkyWest and GATX carry a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Shares of Air China and SkyWest have gained more than 17% and 34%, respectively, so far this year. Meanwhile, GATX has an impressive earnings record, having outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16%.
Will you retire a millionaire?One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”Click to get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportSkyWest, Inc. (SKYW) : Free Stock Analysis ReportAir China Ltd. (AIRYY) : Free Stock Analysis ReportGATX Corporation (GATX) : Free Stock Analysis ReportLATAM Airlines Group S.A. (LTM) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Why Funko Stock Popped 9% on Thursday
Shares of pop culture toy makerFunko(NASDAQ: FNKO)-- of "Funko Pop" fame -- popped indeed on Thursday, closing the day up 9%.
Curiously, this pop happenedbefore-- not after -- investment bankerDA Davidsonannounced it is initiating the stock with a "buy" rating and a $29 price target.
Image source: Funko.
Seeing a stock pop in response to an analyst's buy rating isn't exactly a new thing. But seeing Funko stock pop, and onlythenget its rating, seems a bit strange. So what might explain this curious phenomenon?
Best guess: Yesterday, Funko participated in an analyst "fireside chat " at the Jefferies 2019 Consumer Conference in Nantucket, Mass . During the course of this half-hour-or-so talk, Funko President Andrew Perlmutter and CFO Russell Nickel struck an optimistic tone, saying the company is enjoying "strong growth."
Perhaps the most informative tidbit Funko's execs mentioned during their talk was this: To develop a new "SKU" or toy for sale costs Funko only between $5,000 and $7,500. As the CFO pointed out, this means that once Funko has sold 2,500 units of any given product, it's already broken even and begun turning a profit -- definitely a positive aspect of the company's business.
Another bit of information revealed at the "chat" -- and perhaps the real reason the stock spiked today -- was the execs' observation that Funko products tend to enjoy a "massive" spike in sales in the month of July, around the time of the San Diego Comic-Con. July's just around the corner, some investors might have been thinking -- maybe it's time to go out and buy some Funko stock!
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 Smithhas 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. |
FTC objects to Qualcomm submission of Apple documents in antitrust case
By Stephen Nellis
(Reuters) - The U.S. Federal Trade Commission on Thursday objected to a move by mobile chip supplier Qualcomm Inc to introduce internal Apple Inc documents in its fight to stop the enforcement of a May antitrust ruling.
On Tuesday, Qualcomm submitted them to U.S. District Judge Lucy Koh in opposition to a sweeping ruling that would alter its business model as it pursues an appeal. In the slides from internal Apple presentations, the iPhone maker outlined goals to "Create Leverage by Building Pressure" and "Hurt Qualcomm Financially."
The slides were part of the opening statement presentation in Qualcomm's separate civil trial against Apple in April but were never submitted during Qualcomm's earlier trial with the FTC. If Koh accepts them, they would become part of the record that higher courts review when Qualcomm eventually files an appeal.
FTC officials on Thursday said the submission of the slides was "improper, unfair, and prejudicial."
The slides were part of Qualcomm's opening arguments from the Apple trial, in which the company outlined what its attorneys described as a targeted campaign by Apple to attack Qualcomm's patent licensing model. In them, Apple discussed how to "devalue" the kind of patents held by Qualcomm and "Reduce Apple's Net Royalty to Qualcomm."
The FTC said it had no formal chance to object to the slides.
"Had the document survived a high-priority objection, an Apple witness may have testified to, among other things, the document’s context and purpose and the meaning of the cited language," the FTC wrote Thursday.
Qualcomm, which supplies modem chips to connect phones to wireless data networks, is fighting for a freeze of Koh's ruling, which could potentially slice its patent royalties from several dollars per phone to pennies.
Smartphone maker LG Electronics Inc has opposed Qualcomm's efforts to freeze the ruling. The phone maker said it is negotiating chip supply and patent license agreements with Qualcomm and could be forced into signing another unfair deal unless Koh's protections remain in place. The FTC had also opposed Qualcomm's move.
On Tuesday, Qualcomm responded to LGE's allegations by saying that it had continued to supply chips to the Korean phone maker despite the fact that license negotiations ground to a halt and LGE had no license at all with Qualcomm earlier this year, the precise scenario that phone makers have argued could prompt Qualcomm to cut off chip supplies if Koh's ruling is not enforced.
(Reporting by Stephen Nellis in San Francisco; Editing by Leslie Adler and James Dalgleish) |
Do Honbridge Holdings's (HKG:8137) Earnings Warrant Your Attention?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. 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 likeHonbridge Holdings(HKG:8137). Even if the shares are fully valued today, most capitalists would recognize its profits as the demonstration of steady value generation. Loss-making companies are always racing against time to reach financial sustainability, but time is often a friend of the profitable company, especially if it is growing.
View our latest analysis for Honbridge Holdings
Over the last three years, Honbridge Holdings has grown earnings per share (EPS) like young bamboo after rain; fast, and from a low base. So I don't think the percent growth rate is particularly meaningful. As a result, I'll zoom in on growth over the last year, instead. Like a falcon taking flight, Honbridge Holdings's EPS soared from HK$0.08 to HK$0.10, over the last year. That's a impressive gain of 25%.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. While Honbridge Holdings did well to grow revenue over the last year, EBIT margins were dampened at the same time. So if EBIT margins can stabilize, this top-line growth should pay off for shareholders.
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.
While profitability drives the upside, prudent investors alwayscheck the balance sheet, too.
Many consider high insider ownership to be a strong sign of alignment between the leaders of a company and the ordinary shareholders. So we're pleased to report that Honbridge Holdings insiders own a meaningful share of the business. Indeed, with a collective holding of 51%, company insiders are in control and have plenty of capital behind the venture. To me this is a good sign because it suggests they will be incentivised to build value for shareholders over the long term. And their holding is extremely valuable at the current share price, totalling HK$3.3b. That means they have plenty of their own capital riding on the performance of the business!
It means a lot to see insiders invested in the business, but I find myself wondering if remuneration policies are shareholder friendly. A brief analysis of the CEO compensation suggests they are. I discovered that the median total compensation for the CEOs of companies like Honbridge Holdings with market caps between HK$3.1b and HK$13b is about HK$3.5m.
The Honbridge Holdings CEO received HK$1.8m in compensation for the year ending December 2018. That seems pretty reasonable, especially given its below the median for similar sized companies. While the level of CEO compensation isn't a huge factor in my view of the company, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. It can also be a sign of a culture of integrity, in a broader sense.
Given my belief that share price follows earnings per share you can easily imagine how I feel about Honbridge Holdings's strong EPS growth. If you need more convincing beyond that EPS growth rate, don't forget about the reasonable remuneration and the high insider ownership. This may only be a fast rundown, but the takeaway for me is that Honbridge Holdings is worth keeping an eye on. Now, you could try to make up your mind on Honbridge Holdings by focusing on just these factors,oryou couldalsoconsider how its price-to-earnings ratio compares to other companies in 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. |
Why Shares of PG&E Jolted Higher on Thursday
Shares of troubled California utilityPG&E(NYSE: PCG)climbed 14.9% on Thursday, following a report that California's governor was pressing lawmakers on a wildfire fund that could help utilities in the state pay for liabilities that arise from future catastrophic fires.
PG&Efiled for bankruptcy protectionin late January as part of a plan to deal with upwards of $30 billion in wildfire liabilities stemming from a blaze last fall. The so-called Camp Fire in northern California, which resulted in 85 deaths and massive property damage, was sparked by a PG&E power line.
Image source: Getty Images.
California Gov. Gavin Newsom in the months since has been pushing for a plan to balance holding PG&E and the state's other utilities responsible for damage they cause and maintaining a stable power grid for citizens of the state. Newsom, according to a Bloomberg report, is pressing lawmakers to establish a wildfire fund to assist utilities with future liabilities.
The report said that Newsom would like to see the fund seeded by at least $10 billion in Department of Water Resources bonds, with utilities asked to contribute upwards of $7.5 billion in equity. The bonds would be backed by a charge that utility customers have been paying since the early 2000s.
As part of the plan, Newsom is also seeking regulatory changes that would allow utilities to more easily recover the costs of wildfire damages from ratepayers.
Wildfires remain a major risk for PG&E, so it's no surprise that shares got a boost from the proposal. But it's worth noting that the legislation is far from approved, and even if it is, it would handle only future liabilities and not the current ones stemming from last year's fires.
This would be a step in the right direction for PG&E, but the company still has considerable challenges ahead.
More From The Motley Fool
• 10 Best Stocks to Buy Today
• The $16,728 Social Security Bonus You Cannot Afford to Miss
• 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own)
• What Is an ETF?
• 5 Recession-Proof Stocks
• How to Beat the Market
Lou Whitemanhas no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy. |
Atlantis Hard Fork for Ethereum Classic Scheduled for September 17 Launch
The Atlantishard forkfor Ethereum Classic (ETC) has been officially set to occur at block 8,772,000 on theblockchain, according to the Ethereum Classic Improvement Protocol (ECIP) finalizationcallvia Discord on June 20.
As per the discussions in the call, the developers and contributors had previously considered putting the hard fork at block number 8.75 million, which is predicted to run on September 15.
However, since the 15th is a Sunday, ETC Labs moved to increase the block number in order to have the projected update during the week, when more involved parties, such as exchanges and developers, are more likely be present to discover and deal with any issues that may arise.
Since the release is still several months away, the block number is an imperfect estimate of date; nonetheless, the number has been moved up with the aim of the hardfork arriving on Tuesday, September 17, around noon UST.
The decision appeared to be unanimous.
An official ETC blogpostproposed this shift on June 19, which noted block 8.772 million for an intended fork date of approximately September 17. Today’s discussion further solidifies that number.
The post also notes that Atlantis is currently undergoing testing to weed out any bugs or other unwelcome consequences from introducing the new hard fork code to ETC’s original scheme.
The post also notes the following as main priorities of the upcoming hardfork:
“(1) develop high-quality blockchain software that preserves thesecurityof the network
ETC itself is the originalEthereumblockchain, which is named Classic in response to Ethereum carrying out a hard fork in 2016. This happened amid the collapse of Ethereum-based project “TheDAO” after a majorhackexploited its security flaws.
• TRON Announces MainNet Upgrade Designed to Enhance Security and Convenience
• McAfee Trading Platform Suffers DOS Attack Upon Launch
• Grand Theft Crypto: The State of Cryptocurrency-Stealing Malware and Other Nasty Techniques
• Recent Firefox Zero-Day Flaw Was Used in Attacks Against Coinbase’s Employees |
Long-Term Bond ETFs Are Back in the Limelight
This article was originally published onETFTrends.com.
With more expecting the Federal Reserve to cut interest rates ahead, exchange traded funds that track long-term debt are beginning to pick up steam as investors hunt for attractive income in a lower-for-longer yield environment.
TheiShares 20+ Year Treasury Bond ETF (TLT) attracted $247.2 million in inflows over the past week and brought in $1.1 billion over the past month, according to ETFdb data.
Meanwhile, yields on benchmark 10-year Treasury bonds were even briefly trading back below 2% on Thursday for the first time since 2016.
Signs of a potential shift in central bank policy triggered a global bond rally, pulling yields to record lows Thursday, theWall Street Journalreports.
Investors and analysts highlighted the worsening projections for growth as a catalyst for the Federal Reserve to its loosening monetary policy outlook instead of tightening it. Sentiment for a rate cut picked up Wednesday and Thursday after the Fed held rates steady but signaled a possible cut in the months ahead to combat the weakening effects of a prolonged trade war.
Many previously assumed the Trump administration’s tax cuts and looser regulation would fuel stronger growth and inflation and, which would force the Fed to implement higher interest rates to keep the economy in check. However, the opposite has played out so far, with a falling 10-year yield, hitning that the economy is not performing as previously expected.
“Around the world economies are slowing down and central banks are in play,” David Norris, head of credit investing at TwentyFour Asset Management, told the WSJ. The change in monetary policy “certainly does add fuel to the fire” of the bond rally.
The low rates also encourages greater demand for riskier investments such as corporate bonds. For example, theiShares iBoxx $ Investment Grade Corporate Bond ETF (LQD)was among the most popular bond ETF plays over the past week, bringing in $1.4 billion, and theSPDR Barclays High Yield Bond ETF (JNK) attracted $516.8 million.
“Yields are going to be lower for longer, inflation is going to be lower for longer and growth is going to be lower for longer,” Colin Robertson, managing director for fixed income for Northern Trust Asset Management, told the WSJ.
For more information on the fixed-income market, visit ourbond ETFs category.
POPULAR ARTICLES AND RESOURCES FROM ETFTRENDS.COM
• SPY ETF Quote
• VOO ETF Quote
• QQQ ETF Quote
• VTI ETF Quote
• JNUG ETF Quote
• Top 34 Gold ETFs
• Top 34 Oil ETFs
• Top 57 Financials ETFs
• The Secure Act and Retirement Accounts
• Pet Food IPO Chewy May Put Amazon On Its Heels
• Mark Cuban: Success Comes From Outworking Everyone
• A Piece Of Advice From Warren Buffett
• CNBC’s ETF Edge Panel Discusses Non-Transparent ETFs
READ MORE AT ETFTRENDS.COM > |
NBA draft: Timberwolves trade Dario Saric, No. 11 pick to Suns
The Minnesota Timberwolves traded forward Dario Saric and the No. 11 pick in the NBA draft to the Phoenix Suns on Thursday afternoon, according to ESPN’s Adrian Wojnarowski. In return, the Suns sent Minnesota the No. 6 overall pick. Minnesota has traded No. 11 and Dario Saric to Phoenix for the No. 6 pick in the draft, league source tells ESPN. — Adrian Wojnarowski (@wojespn) June 20, 2019 After starting out the year with the Philadelphia 76ers, Saric averaged 10.5 points and 5.5 rebounds in 68 games with the Timberwolves last season, his third in the league. Saric landed in Minnesota as part of the blockbuster trade that sent Jimmy Butler to Philadelphia in November. The 25-year-old is set to become a restricted free agent after the 2019-20 season, though is eligible for an extension this summer. He is due $3.5 million next season, the final year of his initial rookie deal. According to ESPN’s Bobby Marks , the Suns have taken on $1.7 million in new money by landing Saric. The trade marks the second major move the Suns made before Thursday’s NBA draft. Less than an hour before reaching the deal with Minnesota, the Suns traded forward T.J. Warren and the No. 32 overall pick in the draft to the Indiana Pacers for cash — a move that helped create much-needed cap space for Phoenix. With the No. 6 overall pick, the Timberwolves selected Texas Tech star Jarrett Culver, and the Suns took North Carolina guard Cam Johnson at No. 11. More from Yahoo Sports: Marketing company suing Zion for $100M Report: Davis, Lillard to feature in ‘Space Jam 2’ Authorities: Ortiz wasn’t intended target of shooting How Celtics shockingly combusted so quickly View comments |
If You Like EPS Growth Then Check Out Greatview Aseptic Packaging (HKG:468) 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. But as Warren Buffett has mused, 'If you've been playing poker for half an hour and you still don't know who the patsy is, you're the patsy.' When they buy such story stocks, investors are all too often the patsy.
So if you're like me, you might be more interested in profitable, growing companies, likeGreatview Aseptic Packaging(HKG:468). While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. Conversely, a loss-making company is yet to prove itself with profit, and eventually the sweet milk of external capital may run sour.
View our latest analysis for Greatview Aseptic Packaging
If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Greatview Aseptic Packaging managed to grow EPS by 4.6% per year, over three years. That might not be particularly high growth, but it does show that per-share earnings are moving steadily in the right direction.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. While Greatview Aseptic Packaging did well to grow revenue over the last year, EBIT margins were dampened at the same time. So it seems the future my hold further growth, especially if EBIT margins can stabilize.
The chart below shows how the company's bottom and top lines have progressed over time. Click on the chart to see the exact numbers.
While it's always good to see growing profits, you should always remember that a weak balance sheet could come back to bite. So check Greatview Aseptic Packaging'sbalance sheet strength, before getting too excited.
I like company leaders to have some skin in the game, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. So it is good to see that Greatview Aseptic Packaging insiders have a significant amount of capital invested in the stock. Indeed, they hold CN¥359m worth of its stock. That shows significant buy-in, and may indicate conviction in the business strategy. Those holdings account for over 6.2% of the company; visible skin in the game.
As I already mentioned, Greatview Aseptic Packaging is a growing business, which is what I like to see. Just as polish makes silverware pop, the high level of insider ownership enhances my enthusiasm for this growth. The combination sparks joy for me, so I'd consider keeping the company on a watchlist. While we've looked at the quality of the earnings, we haven't yet done any work to value the stock. So if you like to buy cheap, you may want tocheck if Greatview Aseptic Packaging is trading on a high P/E or a low P/E, relative to its industry.
Although Greatview Aseptic Packaging certainly looks good to me, I would like it more if insiders were buying up shares. If you like to see insider buying, too, then thisfreelist of growing companies that insiders are buying, could be exactly what you're looking for.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Ports Criticize Double-Tax Hurdle For U.S. Domestic Shipping
A tax that the United States charges shippers on the value of their cargo upon entering U.S. ports needs to be altered if the domestic maritime industry is going to better compete with trucks and trains, according to second-tier ports.
Money collected from theHarbor Maintenance Tax (HMT)is fed into the Harbor Maintenance Trust Fund, a critical account used to keep ports dredged to levels needed to accommodate large ocean-going vessels that carry the nation's imports and exports .
But for imports that are subsequently transloaded onto smaller vessels and barges, the cargo is taxed again upon arrival at the secondary port. It's a "double-jeopardy" situation that some contend is a major reason why U.S. domestic shipping lanes, and port projects located on them, are having trouble generating business.
"The HMT [.125 percent] ad valorem tax sounds like a small amount, but in an industry where margins are razor-thin, any cost that's added just makes it that much less competitive" with truck and rail, said Jonathan Nass, CEO of the Maine Port Authority, testifying on June 19 before the Maritime subcommittee of the U.S. House Transportation and Infrastructure Committee.
Those testifying at the hearing, titled "Short Sea Shipping: Rebuilding America's Maritime Industry," all pointed to the HMT as a point of contention.
"I'm not sure how that will be fixed – the issue has been raised repeatedly," said Mark Buzby, head of the U.S. Maritime Administration (MarAd), which is tasked with overseeing the health of U.S. domestic maritime industry. "It's been made to work in some places, depending on the market, the commodity, the circumstances, but it can be more of a challenge in keeping some of the projects moving forward."
Those projects are part of MarAd's America's Marine Highway Program (AMPH), a program created in 2007 that awards competitive grants to spur development of 25 designated marine highways with the purpose of reducing freight delays caused by over-the-road congestion while reducing air pollution. To date, the program has awarded $24 million in grants that support six new and two existing marine highway services, according to MarAd.
A recent project being supported by the program, theNorth Atlantic Marine Highway Alliance, plans to use barge services to offset the use of trucks and supplement rail cargo to and from the Port of New York and New Jersey.
The program has so far been slow, however, in diverting freight from roads and rails. Data from the U.S. Department of Transportation estimated that grant-funded projects in 2016 had saved approximately $1.5 million in road maintenance and congestion costs, increasing to $3.6 million in 2017 and $4.9 million in 2018.
Larger ports have taken issue with the HMT as well. The ports of Seattle and Tacoma have complained for years that Asian imports destined for the U.S. have been able to avoid the tax by importing into the nearby Port of Vancouver in Canada and railing shipments to midwestern hubs such as Chicago and St. Louis.
"It's not only a disincentive to use the West Coast ports, it's also a disincentive to come into the Great Lakes ports," testified James Weakley, president of the Lake Carriers' Association. "Cargo is offloaded in Montreal and railed to Detroit and Chicago – I see them crossing the [international] bridges all the time. It prevents ports like Cleveland from becoming a feeder port to Europe."
Representative John Garamendi (D-California) said that the double taxation problem for domestic shipping "should be the foundation for an amendment to our current tax law, so that we can eliminate this financial disincentive."
Garamendi used the opportunity to ask for support from the Maritime Administration forlegislation he plans to reintroduce next weekto promote U.S. exports of liquefied natural gas (LNG). His bill, which had stalled in the previous Congress, would require an escalating annual percentage of LNG exports to move on U.S. flag ships.
Image Sourced From Pixabay
See more from Benzinga
• Without Standardization, Blockchain Can Become A Forgotten Piece Of Code
• FreightWaves NOW: Last-Mile Delivery And Drones Coming To A House Near You
• APM Gets Los Angeles Port's Okay To Go Ahead On Automation Plan
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
President Trump Opens Door For Future Tariffs Against Canada And Mexico
President Trump opened the door to placing tariffs on Canada and Mexico again in response to "tremendous shipments of certain products."
He made the remarks during an appearance with Canadian Prime Minister Justin Trudeau on June 20 ahead of a meeting in Washington to discuss trade and other issues.
"We'll see," President Trump said, after a reporter asked if there would be more tariffs on Canada and Mexico. "They have to do what they have to do. We can't have big, tremendous shipments of certain products – they understand that very well."
President Trumpcalled off his planned tariffs against Mexicoless than two weeks ago. In May, the U.S.lifted its 25 percent and 10 percent tariffson Canadian steel and aluminum.
The talk of tariffs tinged an otherwise positive meeting for U.S.-Canada trade relations. Trump and Trudeau agreed to ratify a new preclearance agreement for Canada and the U.S., which includes cargo.
"We can't overstate the importance of free trade to the Canada-U.S. relationship," Trudeau said, appearing upbeat after his day of meetings in Washington.
But earlier, President Trump suggested he was concerned about potential transshipping of products via Canada. While he didn't specify a country of origin, China is a likely candidate.
"There won't be, hopefully, transshipping," President Trump said. "If there's transshipping, I'll call Justin, and I'm sure he'll take care of it."
"We'll be fine," Trudeau said.
The Prime Minister also met with House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell to drum up support for the United States–Mexico–Canada Agreement (USMCA), NAFTA's successor.
Pelosi has said Congressional action on the USMCAwill depend on changesincluding environmental and labor protections.
Trudeau is keen to get the agreement ratified as quickly as possible ahead of Canada's federal elections in October.
Mexico approved the agreement on June 19.
Image Sourced From Pixabay
See more from Benzinga
• Ports Criticize Double-Tax Hurdle For U.S. Domestic Shipping
• Without Standardization, Blockchain Can Become A Forgotten Piece Of Code
• FreightWaves NOW: Last-Mile Delivery And Drones Coming To A House Near You
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Is Big Government Making a Comeback?
Recognizing a growing hostility toward major social welfare programs, President Bill Clinton famously announced that “the era of big government is over” back in 1996. Twenty years later, Democratic presidential nominee Hillary Clinton pushed back against calls from within her own party for new social programs such as Medicare for All or free college tuition, saying the president can’t just “wave a magic wand” to finance new spending, however necessary or desirable.
But the Clintonian sense of fiscal restraint, which had long been shared by the American political establishment in both parties, is in retreat, saysBloomberg’s Sahil Kapur. Despite rising debt and near trillion-dollar deficits, this year’s crop of Democratic presidential candidates is proposing a wide range of new social programs to tackle big problems like health care, student debt and the high cost of child care.
Big government, it seems, is “back with a vengeance,” Kapur writes. And Democrats are open to different ways to pay for it, including issuing more debt.
‘Plenty of money’ around
Joe Biden, who served in an Obama administration that, like the Clinton administration before it, made substantial efforts to rein in spending and reduce the deficit, has lately shown a renewed interest in the creation of new federal programs. “The fact of the matter is there is plenty, plenty of money to go around,” the former vice president told the Poor People’s Campaign earlier this week. Biden said he would seek to roll back President Trump’s tax cuts and close loopholes to help pay for goals like free community college.
Other candidates, including Sen. Kamal Harris, have also said they want to repeal the Trump tax cuts to pay for new spending. Sen. Elizabeth Warren has put forth a plan for a universal wealth tax she says would pay for an ambitious program that includes universal child care and canceling student debt, though critics say it would likely fall short of covering all the costs. At the other end of the spectrum, Sen. Bernie Sanders has generally avoided talking about how he would finance his single-payer Medicare for All proposal, which would raise federal spending by trillions of dollars.
What changed?
Two trends have influenced Democrat’s change in perspective on government spending, Kapur says. First, Democrats have watched Republicans preach fiscal restraint while running up huge deficits with tax cuts and increased military spending. “Democrats are seeing themselves as Charlie Brown to Lucy and the football. At least some of them are waking up to the fact that they have been played,” said Stephanie Kelton, an economist advising the Sanders campaign who has sharply criticized the conventional understanding of how government debt works.
Second, the big increase in debt over the last decade and persistent deficits haven’t produced the negative effects that deficit hawks have long warned about. Interest rates have dropped rather than risen, with the 10-year Treasury note yield falling below 2% on Thursday. And investors are snapping up all the U.S. Treasuries they can get, despite a volume of debt sales that have more than doubled since 2017. “None of the bad things that were supposed to happen, according to the warnings from the ‘very serious economists’ — crowding out effects, inflation, slower growth, have happened,” Kelton said.
As a result, Democrats have once again started proposing large-scale spending programs to address major social issues such as rising inequality and national health care. And how to pay for those programs seems to have become a less important issue, Kapur says, as the leading presidential candidates propose competing visions of big government in the 21stcentury.
Like what you're reading? Sign up for ourfree newsletter. |
Union Of Logistics Firms Broadens Vendor Consolidation And Volume LTL Presence
A private equity company announced today that it has acquired and integrated two logistics firms that will combine nationwide vendor consolidation, brokerage and "volume" less-than-truckload (LTL) capabilities to offer services that traditional LTL carriers often shy away from.
New York-based Hudson Hill Capital said it acquired majority stakes in Glen Rock, New Jersey-based Global Transport Logistics, Inc. (GTL) and Addison, Illinois-based Am Trans Expedite, Inc. (Am Trans) to form Fusion Transport, LLC. The new company will be headquartered in Glen Rock, a New York City suburb and GTL's current home base. It will be run by Frank Matarazzo, GTL's CEO. Am Trans Co-Founder Mike Wallace has been appointed Fusion's president of logistics, while Bob Trusz, Am Trans' other co-founder, was named president of asset services. The acquired companies will operate as subsidiaries of Fusion.
Hudson Hill was founded by Josh Rosen, who in his current role is making his first foray into transportation and logistics. Terms of the transaction were not disclosed.
The combination marries GTLs vendor consolidation expertise with Am Trans' brokerage and asset-based network. Am Trans operates 60 to 70 power units and 350 trailers, while GTL has 10 power units and 150 trailers. There will be no contractual commitments made for the capacity, Matarazzo said in a June 20 interview. Instead, equipment will be made available on as-needed basis in lanes with enough density to justify the utilization, he said.
It also gives GTL vendor consolidation footprints in the Midwest and in northern California, markets where the company knows there is strong demand but where it has been unable to build the capacity to meet it. It will also expand GTL's relatively small presence in the Dallas market. Am Trans' brokerage network will support the vendor consolidation program by finding capacity for overflow loads and managing transport services for Fusion's clients. The vendor consolidation and brokerage services will work in tandem to support the supplier-retailer ecosystem, and will not be sold as stand-alone services, Matarazzo said.
In a vendor consolidation program, LTL shipments from multiple vendors are consolidated into a volume LTL move and shipped, typically weekly, to retailers' distribution centers. Volume LTL, which is also known as "partial truckload," covers shipments generally too large for traditional LTL carriers to accept but that aren't large enough to fill a truckload trailer with one shipper's freight. Volume LTL shipments usually range from eight to 18 pallets, weigh between 8,000 and 27,500 pounds, and occupy more than 12 feet of linear space in a trailer.
The hub-and-spoke networks of pure-play LTL carriers are not configured to cost-effectively handle the larger retail consignments that are best shipped in point-to-point moves. Pure-play LTL carriers generally focus on shipments of 1 to 3 pallets which cube out at about 750 cubic feet.
The volume LTL concept, which has been around for a long time, gained traction a couple of years ago as an outlet for shippers, brokers and third-party logistics (3PL) providers that sought truckload capacity but found it hard to come by in an ultra-tight market.
The vendor consolidation model works well in retail because retailers generally give suppliers long lead times from the time an order is received to when the goods must reach a warehouse or distribution center, Matarazzo said. This gives the supply chain significant time to build optimal load planning strategies, he said. By contrast, industrial freight is associated with more urgent moves, such as the need to replenish stock at a chemical plant or to get a piece of machinery to a factory.
Image Sourced From Pixabay
See more from Benzinga
• President Trump Opens Door For Future Tariffs Against Canada And Mexico
• Ports Criticize Double-Tax Hurdle For U.S. Domestic Shipping
• Without Standardization, Blockchain Can Become A Forgotten Piece Of Code
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
We spoke to a consultant who reviewed Facebook’s Libra about its stability, legality, and future
Facebook’s cryptocurrency project Libra gatecrashed the digital asset world earlier this week, receiving a warm welcome from financial press lauding it as a landmark moment for the nascent cryptocurrencies market.
Still, questions regarding the setup of Libra’s blockchain, the stability of the reserve system backing the coin, and whether it will qualify as a swap type product remain unanswered. To answer some of those questions, The Block recently connected with a consultant who worked closely with Facebook on Libra. Indeed, the person — who requested to speak under the condition of anonymity for legal reasons — reviewed the entirety of the project for the company.
Join Genesis nowand continue reading,We spoke to a consultant who reviewed Facebook’s Libra about its stability, legality, and future! |
Who Has Been Buying Pa Shun International Holdings Limited (HKG:574) Shares?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares inPa Shun International Holdings Limited(HKG:574).
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia Universitystudyfound that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
View our latest analysis for Pa Shun International Holdings
In the last twelve months, the biggest single purchase by an insider was when Non-Executive Director Xiongfeng Zhang bought HK$2.2m worth of shares at a price of HK$0.47 per share. That means that even when the share price was higher than HK$0.14 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 18.8m shares worth HK$6.5m. But they sold 1.2m for HK$832k. In the last twelve months there was more buying than selling by Pa Shun International Holdings insiders. Their average price was about HK$0.35. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Pa Shun International Holdings 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.
It's good to see that Pa Shun International Holdings insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought CN¥6.1m worth of shares. This is a positive in our book as it implies some confidence.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Pa Shun International Holdings insiders own 57% of the company, currently worth about HK$118m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Pa Shun International Holdings. Looks promising! To put this in context, take a look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Asian Stocks Mixed; Middle East Tensions Escalate
Investing.com - Asian stocks traded mostly lower on Friday morning, except Chinese stocks. The market watched closely the possible rate cut in the U.S. and the rising tensions in the Middle East.
China’s Shanghai Composite and the Shenzhen Component rose 0.51% and 1.04% respectively by 10:20 PM ET (02:20 GMT),supported by the dovish tone by the U.S. Federal Reserve in its latest policy statement, which signalled a possible rate cut.
The market expects the Fed to cut interest rates to counter the negative impacts of the U.S.-China trade spat on economic growth. Overnight on Wall Street, the S&P 500 jumped 1% to close at a record high.
"There is no doubt that this week's FOMC meeting outcome is positive for the financial markets including those in Asia," Kota Hirayama, senior emerging market economist at SMBC Nikko Securities, told Reuters.
U.S. President Donald Trump and his Chinese counterpart Xi Jinping are set to meet at next week’s G-20 meeting to discuss trade issues. Market watchers await clues about new trade deals to see how the market will be affected.
The tensions in the Middle East were also in focus today. Iran shot down a U.S. military drone and escalated the volatile situation between Washington and Tehran. The incident sent the crude oil price higher.
“The key issue that we’re struggling with at the moment is the impact of geopolitics on business confidence,” James Sullivan, head of Asia ex-Japan equity research at J.P. Morgan told CNBC.
Trump tried to downplay the incident by saying he found it “hard to believe” the attack was intentional. “It could have been somebody who was loose and stupid that did it . . . But it was a very foolish move,” he said on Thursday.
Meanwhile, Hong Kong’s Hang Seng Index traded 0.15% lower. Protests continued on Friday over the controversial extradition bill that would allow the autonomous government to send criminal suspects to China.
Elsewhere, Japan’s Nikkei 225 dropped 0.26% and South Korea’s KOSPI slid 0.13%. The Bank of Japan kept monetary policy steady on Thursday.
Down under, Australia’s ASX 200 shed 0.33%.
Related Articles
Exclusive: Chevron Phillips Chemical in bid to acquire Nova Chemicals - sources
Malaysia aims to recover about $5 bln in 1MDB-linked assets
Asian stocks fail to catch Wall Street's Fed rally as trade angst persists |
Zion Williamson could sign with a Chinese shoe company
Few would question that Zion Williamson is by far the top player entering the NBA, and so where he’ll play is not up for debate. But what will be on his feet when he debuts as a professional basketball player? Could a Chinese brand likes of Li-Ning, Peak or Anta steal the hottest NBA rookie from the likes of Nike (NKE) and Adidas (ADDYY)? Some experts believe it's possible.
"I’m betting that a Chinese brand steps up here,” said Matt Powell, NPD Group vice president, and senior industry advisor. “I have no idea what the contract will be ... I see the Chinese brands trying to take back market share they lost to Western brands.”
On a chilly evening in late February, millions watched as then-Duke star Williamson's left Nike PG 2.5sneaker explodedat the start Duke vs. University of North Carolina (UNC) game. The incident was a scary one for Duke, but an embarrassing one for Nike. The swoosh brand immediately sprung into action — sending a team to make a mold of Williamson's foot and creating a modified version of Kyrie 4's for the 6′ 7″ 285 lb. star.
Nike and its stockrecovered from the temporary embarrassment. But from that incident sparked a debate that would play out until draft day: To which shoe company would Zion sign?
Before “Shoegate” it was seen as a foregone conclusion that the 2019 first overall draft pick would sign with Nike. That's the brand he played in during his time at Duke, and Nike is the choice of most NBA players. According to data compiled byBallershoesdb.com, 72% of NBA players hoop in Nike-owned sneakers, which includes the Jordan brand.
Nike might be the biggest name on the block, but it's not the only name out there.
Chinese brand Li-Ning, founded in 1989, made a splash in 2012 when the company signed away three-time NBA champion Dwyane Wade away from Nike's Jordan brand in a deal worth around $8 million. Chinese sneaker companies such as Li-Ning, Peak, or Anta have made their way into the NBA sneaker landscape. Combined, the three companies claim the feet of 3.9% of NBA players.
Powell told Yahoo Finance that it’s not so far fetched that one of the Chinese brands makes a late play at Zion. He believes that with Zion, Li-Ning, Peak, or Anta could have a chance to take back the market share they have lost to western brands. And what better way than snagging the most coveted rookie in the NBA?
The NPD vice president reminds Yahoo Finance that Q1 performance basketball shoes sales are down 20% in the U.S. However, in China, the basketball sneaker market is growing.
Still, the idea of a Chinese brand snagging the No. 1 pick is a bit of a longshot.
UBS analyst Jay Sole does not know where Williamson will sign, but he believes the safe money is on Nike. Despite the shoe exploding incident, Zion has a familiarity with the Nike brand, which gives a leg up on the competition, said.
Sole also says that for a non-traditional brand to sign Zion, it would have to offer hima deal worth significantly morethan more well-known brands.
Reggie Wade is a writer for Yahoo Finance. Follow him on Twitter at@ReggieWade.
Read more:
• Foot Locker makes $100M bet on popular online sneaker marketplace GOAT
• The hottest resale sneakers by state
• How Nike took over the NBA sneaker game
• Read the latest financial and business news from Yahoo Finance
Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,LinkedIn, andreddit. |
Barneys’ Punk Rock Collaboration With Crocs Gets a Venus X Co-sign
It’s not all that contentious to say that Crocs are among the most unlikely shoes to ever experience a high fashion crossover. The first version of the injection-moulded foam clog debuted in 2002 at the Fort Lauderdale Boat Show, after all, where it was originally marketed as a simple and comfortable water shoe. Since those early days, though, designers have put their own spin on the breathable silhouette. First came Christopher Kane, and then most infamously Balenciaga partnered with the brand, sending hot pink, sky-high versions of the shoe down the runway two years ago as part of Demna Gvasalia’s Spring 2018 collection. Now, luxury retail store Barneys has partnered with the ergonomic brand for a new punk line to which Ghettogothik founder and noted sneakerhead Venus X has given her seal of approval. Venus’s love affair with Crocs started in Atlanta, when she bought a pair of the Balenciaga platforms last year. “They’re my favorite thing that I own,” Venus says of the almost one thousand dollars fashion investment. “They’re sexy and I just loved the idea that it’s not taboo anymore to be comfortable.” She mostly wears sneakers—as a DJ she’s on her feet most of the day and night—so designer heels are thin on the ground in her closet. “The Balenciaga Crocs were a happy medium between the two: I could be a bit taller but I’m not going to be in massive pain after DJing or going to a party in them.” Photo: Barneys.com / Courtesy of Barneys New York XO Crocs Now, the DJ is helping to launch a new Crocs collaboration with Barneys, which features a hot pink and leopard-printed pair as well as multiple black Crocs covered with safety pins, chains, and spikes. “There’s a girl like me out there who is really into New Rock Boots, but you can’t wear them everyday—they’re like 50 pounds!” With these new Crocs, though, which Venus has worn everywhere from Miami to London, she can still capture this same vibe without sacrificing on comfort. “Most people are genuinely accepting now that goth and punk culture is a really big part of this generation’s youth culture. In the past, it used to be alternative. Now it’s pop. Lil Uzi dresses like a goth,” Venus says, citing similarly outfitted artists such as Rico Nasty and Playboi Carti. “It’s Barney’s first collaboration with Crocs, and it’s punk. They could have done tie dye, they could have done diamonds, they could have done a lot of things, but I feel really seen in this collaboration as a young ghettogoth woman,” Venus says in between laughs. “I hope I was on the mood board!” See the videos. Originally Appeared on Vogue |
Hope Hicks Interview Transcript Released: Read It Here
The House Judiciary Committee has releaseda transcript of its interviewwith former top White House adviser Hope Hicks, who spoke with committee members and staff behind closed doors.
Hicks refused to answer any questions related to her time working for President Donald Trump after he was elected, following orders from White House lawyers. She was blocked from answering questions 155 times, the committee said in a statement accompanying the transcript’s release.
The interview frustrated Democrats who hoped to get more information about several episodes that special counsel Robert Mueller reviewed for obstruction of justice.
The White House declared that Hicks was “absolutely immune” from discussing her time working at the White House because of separation of powers between the legislative and executive branches. House Judiciary Committee Chairman Jerrold Nadler, D-N.Y., said the principle is “ridiculous” and Democrats intend to “destroy” it in court.
Hicks did answer some questions about her time on Trump’s campaign, the lawmakers said, but they said they learned little that was new.
Republicans said Hicks was cooperative and the interview was a waste of time, especially in light of Mueller’s two-year investigation. The top Republican on the panel, Georgia Rep. Doug Collins, said the committee “took eight hours to find out what really most of us knew at the beginning.”
Hicks was a key witness for Mueller, delivering important information to the special counsel’s office about multiple episodes involving the president. Mueller wrote in his report released in April that there was not enough evidence to establish a criminal conspiracy between Trump’s 2016 campaign and Russia, but said he could not exonerate Trump on obstruction of justice. The report examined several situations in which Trump attempted to influence or curtail Mueller’s investigation.
Democrats asked ask Hicks about several of those episodes, including efforts to remove Mueller from the investigation, pressure on former Attorney General Jeff Sessions and the firing of FBI Director James Comey. They also planned to ask about Hicks’ knowledge of hush-money payments orchestrated by former Trump lawyer Michael Cohen to two women who claimed to have had affairs with Trump — the porn actress Stormy Daniels and model Karen McDougal. Trump has denied the allegations. Cohen is now serving three years in prison partly for campaign violations related to the payments.
As Hicks spoke to the committee, Trump tweeted throughout the day. He said the interview was “extreme Presidential Harassment,” and wrote that Democrats “are very unhappy with the Mueller Report, so after almost 3 years, they want a Redo, or Do Over.”
He also tweeted that it was “so sad that the Democrats are putting wonderful Hope Hicks through hell.”
Trump has broadly stonewalled House Democrats’ investigations and said he will fight “all of the subpoenas.”
—Trump’sMAGA rallies cost big bucks—and cities foot the bills
—Black women voterswill be central to the 2020 election, experts predict
—Can Trump fire Fed Chair Jerome Powell?What history tells us
—Alexandria Ocasio-Cortez’s message for democrats after“boy bye” tweet
—What you need to know about theupcoming 2020 primary debates
Get up to speed on your morning commute withFortune’sCEO Dailynewsletter. |
Woman dies after celebrating honeymoon in Dominican Republic
A Louisiana woman has died less than a week after she celebrated her honeymoon with her husband in the Dominican Republic,WWL-TVreports.
Luling couple Susan Simoneaux and Keith Williams, who had been together for nearly a decade, went to Punta Cana after marrying on May 11. Things, however, took a turn for the worse when the two returned from their trip — Simoneaux was almost immediately rushed to the hospital with fluid in her lungs.
"I would have never went if I would have known," Williams said. "I did not know to be honest with you."
Simoneaux is one of at least 10 Americans who have fallen ill on the Caribbean island and subsequently died, although a family member told the station that Simoneaux's doctors are not sure whether her trip to the Dominican Republic has anything to do with her death at all.
Regardless of what Simoneaux's cause of death may be, her passing has left her husband reeling.
"I'm taking it a little bit hard with losing her," Williams said.
In the past few months, several Americans have mysteriouslydiedin their resorts. In many of the cases, Dominican authorities concluded that the victims died of respiratory failure and pulmonary edema. Yet family members have remained skeptical, claiming that their loved ones were healthy prior to their trip to the island. The list of the deceased include Ohio residentJerry Curran, California residentRobert Turlock, Pennsylvania psychotherapistMiranda Schaup-Werner, Maryland coupleEdward Nathaniel Holmes and Cynthia Day, and New York residentLeyla Cox.
Most recently, New Jersey residentJoseph Allenwas found dead in his room at the Terra Linda Resort in Sosua after he complained of being too hot in a pool the day before. According to preliminary findings of Allen's autopsy, a medical examiner determined that he may have died of cardiac arrest.
The FBI is currently investigating several of the deaths, as Dominican officials have sought to ease concerns over their country's safety. At a press conference earlier this month, Francisco Javier Garcia, the Dominican Republic's minister of tourism, suggested that the deaths were coincidental.
"Sometimes in life there can be a law of sequences," he said. "Sometimes, nothing may happen to you in a year. But in another week, three things might happen to you." |
Hope Hicks Congress Transcript Out She Agrees Russians Helped Trump 2016 Campaign
Former White House communications director Hope Hicks refused to answer about 155 questions during her testimony Wednesday in front of the House Judiciary Committee , according to a transcript of her appearance released today. Related stories Hope Hicks Hearing Is "Obstruction Of Justice In Action", Says California Congressman Hope Hicks Will Be First Donald Trump Aide To Testify Before House Panel In Obstruction Probe Hope Hicks And Former White House Colleague Directed By White House To Ignore Subpoenas Hicks appeared with a body of lawyers from the Trump administration and was stopped from answering questions about the Trump presidential campaign, the firing of former FBI director James Comey, and the resignation of former national security advisor Michael Flynn, among other issues. The initial transcript of the closed-door interview with Hope Hicks can be found here . The House Committee is investigating whether President Trump or members of his administration attempted to obstruct special counsel Robert Muellers investigation into Russian collusion in the 2016 presidential election. The White House had opposed Hickss testimony and directed her not to turn over to Congress any documents related to her administration duties. The White House has claimed Hicks was immune from being asked about her administration tasks. The White House asserted so-called absolute immunity, which is ridiculous and which well destroy in court, said Jerrold Nadler (D-NY), the head of the Committee. Hicks did assert that the campaign used materials from Wikileaks that was publicly available, and said the Trump campaign felt relief when material damaging to Hillary Clinton was released. Hicks also said that the Secret Service was made aware of a blackmail threat against President Trump by the notorious hacker Guccifer 2.0. She also said she was very surprised to learn about 100 contacts between the Trump campaign and various Russians, and agreed that the Russians had attacked the 2016 election and aided Trump while hurting Clinton. Sign up for Deadline's Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram . |
Slack Targeting Cash Flow Breakeven Before Profitability
Slack(NYSE: WORK)isn't the first unprofitable company to go public in recent memory, and it certainly won't be the last. It's rather rare for tech companies to be profitable when they go public (Zoom Video, which made its market debut in April, is unusual in this regard). The key consideration is whether those companies have a path to profitability on the horizon.
First things first, though, and Slack wants to get to cash flow breakeven before worrying about itsGAAPbottom line.
CEO Stewart Butterfield. Image source: Slack.
In an interview withBloomberg, CFO Allen Shim and CEO Stewart Butterfield discussed Slack's prospects going forward. Shim said Slack is primarily focused on cash flow that can be invested in the enterprise messaging company's future:
Well our primary focus right now is to invest in growth. And as we continue to build on what we think is a new category, that's going to be our focus for a long time. But we've also said to investors that our near-term priority is to drive toward cash flow breakeven. We have high confidence in the strong unit economics of our business that we can still invest very aggressively while driving toward that near-term profitability mark.
CFO Allen Shim. Image source: Slack.
Butterfield elaborated on why cash flow is more important than GAAP profitability:
In [software-as-a-service], there's a lot of deferred revenue so accounting profitability isn't that much of a priority. As Allen was saying, bringing in more cash than we put out on an ongoing basis is a priority because it allows us to control our own destiny. The ideal for us though is that we continually find new ways and new opportunities to invest to further grow the business, so we don't need a lot of free cash flow. Just a little bit.
Earlier today, Butterfield noted that the reason Slack used a direct listing to go public instead of a traditional IPO was that the company simplydoesn't need to raise capitalright now, so there's little reason to dilute existing shareholders. Getting to cash flow breakeven would further reduce the need to raise capital, and Slack already has nearly $800 million in cash reserves.
For reference, here's how Slack's operating cash flow and capital expenditures (the two components of free cash flow) have performed over the past three fiscal years (Slack's fiscal years end in January):
Data source: Prospectus. Chart by author. Fiscal years shown.
The company notes that in 2017 and 2018, it made some cash payments related to tender offers and share repurchases, which Slack considers compensation (since it's buying back shares that were granted as equity-based compensation). After adding those payments back, here's what adjusted free cash flow looks like:
Data source: Prospectus. Chart by author. Fiscal years shown.
Slack utilizes a capital-light model that's becoming all toofamiliarthese days by outsourcing cloud hosting and infrastructure to third-party providers, namelyAmazonWeb Services (AWS). Slack spends about$50 million per yearon AWS. Much of Slack's capital spending over the past fiscal year has been leasehold improvements, which jumped from $26.2 million to $86.3 million.
Slack's San Francisco office. Image source: Slack.
The company opened a new office in San Francisco last year in order to get its employees into one building after rapidly growing head count, which more than doubled from January 2017 to nearly 1,700 at the end of April 2019.
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.Evan Niu, CFAowns shares of AMZN. The Motley Fool owns shares of and recommends AMZN and ZM. The Motley Fool has adisclosure policy. |
Can We See Significant Insider Ownership On The China LNG Group Limited (HKG:931) Share Register?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Every investor in China LNG Group Limited (HKG:931) 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 quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.'
China LNG Group is not a large company by global standards. It has a market capitalization of HK$3.2b, which means it wouldn't have the attention of 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 931.
Check out our latest analysis for China LNG Group
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Since institutions own under 5% of China LNG Group, 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. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.
Hedge funds don't have many shares in China LNG Group. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
It seems that insiders own more than half the China LNG Group Limited stock. This gives them a lot of power. That means they own HK$2.0b worth of shares in the HK$3.2b company. That's quite meaningful. It is good to see this level of investment. You cancheck here to see if those insiders have been buying recently.
The general public, with a 36% stake in the company, will not easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow for free.
Of coursethis may not be the best stock to buy. So take a peek at thisfreefreelist of interesting companies.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Bitcoin ATMs Go Live at 20 Circle K Convenience Stores
DigitalMint, a Chicago-based over-the-counter cryptocurrency trading platform, has installed bitcoin kiosks at 20 Circle K convenience stores as part of a pilot program across Arizona and Nevada.
This represents the largest expansion for the crypto platform since its founding 2014, according to apress release. In five years, the company has established either ATM or in-person teller branches at 250 locations in 25 states.
“We are thrilled to be partnering with a respected organization like Circle K,” said Marc Grens, DigitMint’s president, in the release. “This partnership opens the door for massive expansion of bitcoin access to new markets around the globe.”
DigitalMint ATMs let consumers buy and trade up to $20,000bitcoin,ethereumandlitecoinper day. The company charges 12 percent of a transaction, though rate reductions are available according to the company’s website.
“Partnering with DigitalMint allows us to provide our customers with seamless access to bitcoin, at a very reasonable price,” said Joel Konicke, category manager at Circle K Stores Inc., in the release.
Purchases must be made with cash, as the company does not accept debit or credit cards. Bitcoin can also be purchased through bank wire, but the company sets a $5,000 minimum. Approved customers can have transaction limits pushed above $1 million.
The bitcoin ATMs in Arizona are located in Phoenix, Mesa, Tempe, Tucson, Flagstaff, Surprise and Maricopa. In Nevada, the ATMs can be found in Las Vegas.
Shopping cart image via Shutterstock |
Trump Takes VA Choice Lie To Next Level With Bonus Lie That McCain Failed To Pass It
WASHINGTON President Donald Trump often fabricates accomplishments for himself and at times falsely strips them from others, but a new lie manages both: Claiming credit for a veterans program that his late nemesis Sen. John McCain actually did help create. The vets the VA was in horrible shape. Now, they have choice. And nobody could get choice, he told ABC News recently. John McCain couldnt get it. Nobody could get it. They tried for years. They couldnt get it. I got choice for the vets. In fact, the provision of the law that Trump touts most often the ability of veterans to get private medical care if VA waitlists were too long was something that McCain specifically pushed for and eventually won in his negotiations with then-Veterans Affairs Committee chairman, Sen. Bernie Sanders (I-Vt.). He has no ethics of any kind, said Mark Salter, a former speechwriter to McCain, the longtime Republican senator from Arizona who died last year of brain cancer. Nothing is too outlandish or dishonest. Former President Barack Obama in 2014 signing into law the "VA Choice" bill that President Donald Trump falsely claims he brought into being. (Photo: ASSOCIATED PRESS) On the Senate floor on June 5, 2014, Sanders praised McCain for sticking by his principles and pushing the private doctor choice element even though Sanders disagreed with it. McCain responded: We were able to come together I believe in a way that will help relieve this terrible tragedy that seems to have befallen our nations veterans. Following the compromise struck by McCain and Sanders, the legislation passed both chambers and on Aug. 7, 2014, was signed into law by then-President Barack Obama notwithstanding Trumps repeated false claims that the VA choice law was something that he himself achieved. They have trying to get it passed for 44 years. We got it passed, he told a rally audience in Panama City, Florida, last month. We passed VA choice, he repeated to an Orlando audience on Tuesday. You go out now, you get a doctor, you fix yourself up, the doctor sends us the bill, we pay for it and you know what? It doesnt matter because the life and the veteran is more important. Story continues The White House declined to comment on Trumps falsehoods on this topic, and would not say whether Trump was knowingly lying or simply did not know the facts. For him the truth is no better than a lie, and if it doesnt serve his ego when a lie will, then the lie is preferable to the truth, Salter said. Thats his only value: Does it serve his ego or not. Trump did sign into law the VA Mission Act last year, which extended the 2014 law and eased the eligibility requirements. But Trump has never made that claim. Instead, in speech after speech, interview after interview, he has falsely taken credit for the original law, telling his audience that prior to him, veterans who faced extended delays at their Veterans Affairs clinic or hospital simply had to suffer. Trump allies in Congress acknowledged that McCain was instrumental in passing the 2014 law but pointed out that it was due to sunset last year. Under President Trumps leadership we were able to create a permanent program to give veterans greater choice last year, a Republican aide in the House Veterans Affairs Committee said on condition of anonymity. Trump, while he has been falsely taking credit for having created the choice program since last summer, did not explicitly make the equally false claim that McCain failed to pass such a law until last weeks ABC News interview. His animosity toward McCain, though, began at least four years ago after McCain said Trump was firing up the crazies in his outreach to an extreme element within our Republican party. Trump, a few days later at a campaign event in Iowa with religious conservatives, disparaged McCains status as a Vietnam War hero. He was a war hero because he was captured. I like people who werent captured, Trump said. I dont like losers. McCain was a Navy pilot who was shot down and held captive and tortured for five and a half years in Hanoi as a prisoner of war. Trump, in contrast, claimed he had bone spurs in his heels and received a medical deferment. Years later, he told a radio host that he considered avoiding sexually transmitted diseases in those years his own personal Vietnam because of all the different women he was sleeping with. After the Oct. 7, 2016, release of the Access Hollywood tape in which Trump is heard describing how his celebrity allowed him to grab women by the genitals, McCain was among a sizable number of Republican office holders who withdrew their endorsement of his presidential candidacy. And in 2017, McCain cast the deciding no vote in the Senate blocking repeal of Obamas Affordable Care Act a vote Trump has been attacking McCain for even after his death. In a speech at an Ohio tank factory this March, Trump told the audience that he was also angry with McCain for his role in passing along to the FBI a dossier of information compiled by a former British intelligence officer regarding Trump and his campaigns ties to Russia in late 2016. John McCain received a fake and phony dossier. Did you hear about the dossier? It was paid for by Crooked Hillary Clinton. Right? Trump said as the audience booed McCain. And John McCain got it. He got it. And what did he do? He didnt call me. He turned it over to the FBI, hoping to put me in jeopardy. And thats not the nicest thing to do. Trump, his White House staff and his allies in and out of Congress have been actively trying to discredit the former British officer, Christopher Steele, as well as special counsel Robert Muellers report that detailed Russias efforts to help Trump win the election as well as numerous instances where Trump tried to shut down Muellers probe. Steele had previously helped the FBI break open the FIFA bribery scandal. His Trump work was for an opposition research firm originally hired by an anti-Trump GOP donor, but which found a new client in Democratic nominee Clintons campaign after Trump secured the GOP nomination. Love HuffPost? Become a founding member of HuffPost Plus today. This article originally appeared on HuffPost . |
Why Budget Talks Have Stalled in Congress
Congressional leaders and top Trump administration officials failed to make progress on Wednesday toward a budget agreement to prevent another partial government shutdown later this year and avoid steep automatic budget cuts from kicking in for fiscal 2020.
“Both parties in Congress agree that avoiding cuts of $55 billion to domestic spending and $71 billion to defense spending is imperative,” Politico reports. “But there is sharp disagreement over how to do that, with the administration seeking to keep spending from rising any further given the yawning annual budget deficit.”
Where things stand:The Trump administration wants a one-year deal to extend current funding levels, stave off those steep automatic budget cuts and avoid a debt-ceiling crisis. Democrats prefer a two-year deal that would increase non-defense spending as well as military spending — and allow Congress to adjust funding for next year as it sees fit rather than keep levels as they were set for 2019. They see a one-year deal as a last-ditch fallback. Many Republican lawmakers also prefer a two-year deal in order to raise defense spending — but they’ve balked at Democrats’ non-defense spending proposal and they don’t want to get undercut by President Trump at the eleventh hour.
The key quotes:
• “Their level of non-defense discretionary spending was $639 billion, that was their proposal. Today their opening bid was $647 [billion],” said Acting White House Chief of Staff Mick Mulvaney, according to Politico. “The last time I checked, that’s not how you compromise.”
• "If the House and Senate could work their will without interference from the president, we could come to a good agreement much more quickly,” House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumersaidin a joint statement after the meeting.
A note of optimism:“Still,” The Wall Street Journal’s Kristina Peterson and Andrew Duehrennote, “it isn’t unusual for Republicans and Democrats to be nowhere close to an agreement months before the government runs out of money, since politically-difficult compromises typically grow increasingly acceptable as the deadline approaches.”
Like what you're reading? Sign up for ourfree newsletter. |
Existing home sales — What to know in markets Friday
Investors will pulse on the U.S. housing market on Friday morning when existing-home sales data for May is released. Economists polled by Bloomberg expect existing-home sales to have risen to a seasonally-adjusted 5.30 million units, up from the 5.19 million units sold in April.
“Consumers’ assessment of home-buying conditions has been deteriorating for a while, owing to higher home prices, and could weigh on sales activity,” Nomura wrote in a note on June 14. “Moreover, a material softening of consumer confidence driven by increased trade tensions and related financial market volatility can possibly dampen consumer demand as consumers delay home-buying plans, faced with increased uncertainty.”
Meanwhile, CarMax (KMX) will be the only major S&P 500 (^GSPC) company to report earnings ahead of the market open.
—
Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter:@heidi_chung.
Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,LinkedIn, andreddit.
More from Heidi:
Taco Bell is testing plant-based proteins
Chewy prices its IPO at $22 per share, raises just over $1 billion
Amazon is on a hiring spree in China, exclusive data shows
McDonald’s remains brand favorite among consumers: UBS survey |
Why Dividend Hunters Love Spindex Industries Limited (SGX:564)
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Today we'll take a closer look at Spindex Industries Limited (SGX:564) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter.
A high yield and a long history of paying dividends is an appealing combination for Spindex Industries. It would not be a surprise to discover that many investors buy it for the dividends. 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.
Explore this interactive chart for our latest analysis on Spindex Industries!
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. In the last year, Spindex Industries paid out 19% of its profit as dividends. We'd say its dividends are thoroughly covered by earnings.
In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Spindex Industries's cash payout ratio in the last year was 30%, which suggests dividends were well covered by cash generated by the business. It's positive to see that Spindex Industries's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
While the above analysis focuses on dividends relative to a company's earnings, we do note Spindex Industries's strong net cash position, which will let it pay larger dividends for a time, should it choose.
We update our data on Spindex Industries every 24 hours, so you can always getour latest analysis of its financial health, here.
From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. Spindex Industries has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. The dividend has been cut by more than 20% on at least one occasion historically. During the past ten-year period, the first annual payment was S$0.014 in 2009, compared to S$0.03 last year. Dividends per share have grown at approximately 7.9% per year over this time. The growth in dividends has not been linear, but the CAGR is a decent approximation of the rate of change over this time frame.
Dividends have grown at a reasonable rate, but with at least one substantial cut in the payments, we're not certain this dividend stock would be ideal for someone intending to live on the income.
With a relatively unstable dividend, it's even more important to evaluate if earnings per share (EPS) are growing - it's not worth taking the risk on a dividend getting cut, unless you might be rewarded with larger dividends in future. It's good to see Spindex Industries has been growing its earnings per share at 20% a year over the past 5 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.
To summarise, shareholders should always check that Spindex Industries's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. First, we like that the company's dividend payments appear well covered, although the retained capital also needs to be effectively reinvested. We were also glad to see it growing earnings, but it was concerning to see the dividend has been cut at least once in the past. Spindex Industries performs highly under this analysis, although it falls slightly short of our exacting standards. At the right valuation, it could be a solid dividend prospect.
Now, if you want to look closer, it would be worth checking out ourfreeresearch on Spindex Industriesmanagement tenure, salary, and performance.
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. |
Employers Are Ready to Step Up Their Fight Against Rising Health Care Costs
Americans’ frustration with rising health care costs has always extended to companies as well — and those businesses may now be ready to assert themselves more forcefully to try to get results, according to a newreportfrom the PwC Health Research Institute (HRI).
Employers face a faster rise in costs:The report projects that employer health costs will rise 6% next year, slightly faster than over the past two years, despite businesses’ continued efforts to control costs by passing them on to workers and shifting to high-deductible health care plans that have left employees unhappy. (HRI found that at least a third of individuals and families with an employer-provided high-deductible plan said they don’t have enough money saved to pay their deductible.)
Factoring in increased employee cost sharing and health plan changes, employers still face a 5% increase in costs, the report says — and businesses feel they can’t ask their employees to bear much more at this point.
It’s the prices, stupid:The report also notes that higher health care spending continues to be driven by rising prices more than increased use, with a separate HRIstudypublished earlier this year finding that use of medical services by individuals with employer-based insurance decreased by 0.2% from 2013 to 2017 — while prices rose 17% over that time.
So we may have reached a breaking point of sorts:“More employers are taking matters into their own hands, becoming what HRI terms ‘employer activists.’ These new employer activists are taking bold new steps in their efforts to contain costs. They are negotiating contract prices, setting up their own provider networks and, in some cases, building parallel health systems to take care of their own employees at more manageable costs,” the report says.
It adds that “2020 likely will be, in some ways, a turning point in the long arc of employer-sponsored insurance, a year in which more employers fight back using new tools and strategies to control the ever-growing costs to their own organizations, their employees and their families. Dissatisfaction with the system is widespread among all stakeholders, and there is a sense among employers that it is time to think creatively and broadly about changing the system.”
And employers could use their power to really shake things up:In an interview with HRI, Michael Thompson, president and CEO of the National Alliance of Healthcare Purchaser Coalitions, said that, “If market-based solutions don’t work, employers may push for healthcare to be regulated like a public utility.” Warnings like that are bound to get the attention of just about every player in the health care industry.
Like what you're reading? Sign up for ourfree newsletter. |
Number of the Day: 18% of ER Visits End with Surprise Bills, Report Says
For people in large employer health plans, nearly one in five emergency room visits in 2017 was followed by a “surprise” medical bill, according to astudyreleased Thursday by Kaiser Family Foundation researchers. Similarly, 16% of in-network hospital stays had at least one out-of-network charge.
The chances of getting hit with an unexpected charge varied widely by state, with patients in Texas, New York, Florida, New Jersey and Kansas more likely to face surprise bills. Patients in Minnesota, South Dakota, Nebraska, Maine and Mississippi had the lowest rates of out-of-network charges.
Like what you're reading? Sign up for ourfree newsletter. |
Do This Before You Get Married
If you're getting married, there's a roughly 50% chance you'll get divorced. Those odds should cause you to consider your finances and what happens if things don't work outbeforeyou tie the knot.
That may seem like tempting fate, but it's simplyplanning for all contingencies. Nobody likes buying flood insurance, for example, but having it won't change your odds of having your home damaged in a flood.
It's important to talk about money with your mate before you make a (hopefully) lifelong commitment. That means making aprenuptial agreementeven if you have very little in the way of assets right now.
Talk about finances before you get married. Image source: Getty Images.
"A prenup is a legal document that usually requires serious discussions between the couple themselves and between their attorneys," wroteCerity Partnerspartner Katherine Klimentova in an email interview with The Motley Fool. "All this takes time, and no one should be rushed to complete the agreement."
It's also important for couples to discuss all areas of their financial past, present, and future before outlining a prenup. Klimentova, whose company offers wealth management and financial planning, wrote that it's very important to start this process well before your wedding day.
"Courts want to see that each party had ample time to ponder the provisions and that it wasn't signed under time or other pressure," she wrote. "Additionally, if one party is making a prenup a requirement for marriage, it is best to learn as soon as possible if the couple will be able to agree on the terms."
Nobody likes having these conversations. It's not fun before you even get married to plan out how your assets (which may not even exist yet) would get split should your marriage break up. It's necessary, though, and it may even help a couple stay together.
"Numerous studies have found that the second leading cause of divorce (after infidelity) is money issues and the inability of spouses to communicate and be on the same page about finances," Klimentova wrote. "A prenup is usually the best solution for establishing financial 'ground rules' and making decisions about current and future assets and income, as well as debts."
Talking about a prenup forces each member of the couple to lay their financial issues on the table. That lays the groundwork for a healthy relationship going forward.
"Getting married is one of the most significant financial undertakings in one's life and being properly prepared for both the downside and upside is a smart decision," Klimentova wrote. "It's much better to create a plan when you love and respect each other as it will save a lot of arguments and legal fees in the future if the marriage does end in divorce."
Couples need to regularly have financial discussions, and that might mean amending a prenup. If a married couple has a child, for example, one spouse may sacrifice his or her career to care for the new member of the family. That's only one example of a major life change that impacts finances, but it's important that the topic gets talked about regularly.
"What seemed fair and agreed to by the parties at the inception of the marriage might be out of date under current circumstances and what looked like a princely sum at marriage might look miserly today," Klimentova explained.
Financial talks are a chance for couples to align their hopes and dreams. If you want to work toward early retirement and your partner wants to live in the moment, well, you have some work to do to figure out the right balance. Not doing that work, though, makes it much more likely that your choices won't be aligned and you'll careen toward an unpleasant ending.
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 |
Grizzly Closes Private Placement
Edmonton, Alberta--(Newsfile Corp. - June 20, 2019) -Grizzly Discoveries Inc. (TSXV: GZD) (OTCQB: GZDIF) (FSE: G6H) ("Grizzly" or the "Company")is pleased to announce that it has closed a private placement (the "Offering") by the issuance of 2,900,000 units of the Company ("Units") at a price of $0.05 per Unit and 1,037,667 units including flow-through shares ("FT Unit") at a price of $0.06 per FT Unit for aggregate gross proceeds of $207,260. Each Unit consists of one common share of the Company ("Common Share") and one non-transferable warrant ("Warrant") with each Warrant entitling the holder to acquire one additional Common Share at an exercise price of $0.10 per Common Share until the earlier of : (a) 30 days following the issuance of a news release by the Company that the trading price of the Common Shares on the TSX Venture Exchange is at or greater than $0.16 per Common Share for 10 consecutive trading days; and (b) June 19, 2021.
400,000 of the Units and 166,000 of the FT Units sold were purchased by insiders of the Company. In connection with the offering, the Company paid cash commissions of $5,526.00 and issued 104,000 Agent Warrants (with terms identical to the Warrants) to a registered dealer. The Company intends to use the proceeds from the Units for general working capital, and the proceeds from the Units and FT Units on exploration of its Greenwood and Robocop mineral projects in British Columbia.
The Common Shares and any Common Shares issued on exercise of the Warrants will be subject to restrictions on trading until October 19, 2019 in accordance with the policies of the TSX Venture Exchange. The private placement is subject to final acceptance by the TSX Venture Exchange.
Following closing of the Offering, the Company has 67,086,714 Common Shares issued and outstanding.
ABOUT GRIZZLY DISCOVERIES INC.
Grizzly is a diversified Canadian mineral exploration company with its primary listing on the TSX Venture Exchange with 67 million shares issued, focused and its precious metals and Cobalt-Copper properties in southeastern British Columbia. The Company holds, or has an interest in, over 180,000 acres of precious-base metal properties at its Greenwood Property. Additionally, Grizzly holds approximately 10,000 acres with Co-Cu-Ag mineralization at its Robocop Property, both located in southeastern British Columbia.
On behalf of the Board,
GRIZZLY DISCOVERIES INC.
Brian Testo, CEO, PresidentTel: (780) 693-2242
For further information, please visit our website atwww.grizzlydiscoveries.comor contact:
Nancy Massicotte, Investor RelationsIR PRO COMMUNICATIONS INC.Tel: 604-507-3377Toll Free: 1-866-503-3377Email:ir@grizzlydiscoveries.comwww.irprocommunications.com
or
Ian LambertCOO, Grizzly Discoveries Inc.Tel: 416-840-9843Email:ilambert@grizzlydiscoveries.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.
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45787 |
Divided EU to urge return to talks on euro zone integration
By Jan Strupczewski
BRUSSELS, June 21 (Reuters) - European Union leaders will urge finance ministers on Friday to keep working on deeper euro zone integration as flagship ideas such as a euro zone budget or a deposit guarantee scheme either lack key elements or have not progressed at all.
The chairman of euro zone finance ministers Mario Centeno will report what EU finance ministers have achieved over the six months since EU leaders asked them last December to work on creating a euro zone budget along with other reforms.
French President Emmanuel Macron told reporters on entering the summit that the ministers did not appear to have reached a "satisfactory situation".
The ministers were to have worked out how a budget for the 19 countries sharing the euro currency could be financed, what it should be used for and how it would be managed, with the final size to be determined by the leaders.
But progress has been limited because of widely differing views. France and several southern European countries want a large budget funded by dedicated taxes and able to stabilise economies hit by an unexpected shock.
The Netherlands and its northern European allies want a small budget funded only from the existing, wider EU budget and used for investment or to support structural reforms.
Centeno told summit chairman Donald Tusk in a letter that no consensus had been found on financing and that finance ministers would work further, based on guidance from the leaders.
"Technical work has continued on stabilization, on which there is no consensus," Centeno also wrote.
The ministers were also asked last December to prepare for the start of negotiations on a European deposit insurance system (EDIS).
But Germany and northern European allies are reluctant to commit to a joint scheme to insure euro zone deposits before banks in southern countries such as Italy, Greece or Portugal have substantially reduced their bad loans - a legacy of the sovereign debt crisis of 2010-2015.
An insurance scheme would make depositors across the euro zone feel safe and prevent bank runs in the event of a crisis. It would complete the EU's "banking union", which already has a single bank supervisor and a resolution authority.
But German resistance has so far blocked any progress even on a timetable for EDIS introduction.
"We recognise that further technical work will be needed on defining a transitional path to the steady state banking union," Centeno wrote in the letter.
He said a working group would continue discussing the EDIS idea and report back to ministers in December. (Reporting by Jan Strupczewski; editing by Philip Blenkinsop and James Dalgleish) |
The QPL International Holdings (HKG:243) Share Price Is Down 96% So Some Shareholders Are Very Salty
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Statistically speaking, long term investing is a profitable endeavour. But along the way some stocks are going to perform badly. Zooming in on an example, theQPL International Holdings Limited(HKG:243) share price dropped 96% in the last half decade. We certainly feel for shareholders who bought near the top. And we doubt long term believers are the only worried holders, since the stock price has declined 36% over the last twelve months. Furthermore, it's down 30% in about a quarter. That's not much fun for holders.
While a drop like that is definitely a body blow, money isn't as important as health and happiness.
Check out our latest analysis for QPL International Holdings
QPL International Holdings isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last half decade, QPL International Holdings saw its revenue increase by 3.5% per year. That's not a very high growth rate considering it doesn't make profits. Nonetheless, it's fair to say the rapidly declining share price (down 48%, compound, over five years) suggests the market is very disappointed with this level of growth. We'd be pretty cautious about this one, although the sell-off may be too severe. We'd recommend focussing any further research on the likelihood of profitability in the foreseeable future, given the muted revenue growth.
The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values).
It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Dive deeper into the earnings by checking this interactive graph of QPL International Holdings'searnings, revenue and cash flow.
Investors should note that there's a difference between QPL International Holdings's total shareholder return (TSR) and its share price change, which we've covered above. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. QPL International Holdings hasn't been paying dividends, but its TSR of -69% exceeds its share price return of -96%, implying it has either spun-off a business, or raised capital at a discount; thereby providing additional value to shareholders.
We regret to report that QPL International Holdings shareholders are down 36% for the year. Unfortunately, that's worse than the broader market decline of 9.8%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 21% 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. Shareholders might want to examinethis detailed historical graphof past earnings, revenue and cash flow.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Apple Card Still Dropping This Summer, Says Goldman Sachs’ Consumer Chief
TheAppleCard—Apple’s hotly anticipated credit card collaboration with Goldman Sachs—is due to debut this summer.
But, asFortune’s Adam Lashinsky pointed out to Goldman Sachs’ Harit Talwar on stage at the Brainstorm Finance conference in Montauk, N.Y., today, “Itisthe summer.”
Don’t read too much into the fact that we’ve yet to see the Apple Card, responded Talwar, the global head of Goldman’s consumer business. “Itwillbe released this summer,” he emphasized. “Last I heard, it’s still summer—and we will launch [the Apple Card] in the summer.”
Some have wondered whether the Apple Card, in its quest to be consumer-friendly, is in facttooconsumer-friendly. Featuring virtually no fees and robust cash-back rewards, there are questions on how the venture will become profitable (Citigroup reportedly pulled out of talks with Apple on the project due to such fears). But Talwar said Goldman is “delighted” to partner with Apple and envisions the credit card benefiting enormously from the tech giant’s massive consumer footprint.
“The Apple Card is uniquely integrated in the Apple ecosystem; it’s the best card to use with the iPhone,” he said. “It is a card that helps consumers manage spending and borrowing in a far more responsible way. It is about ease, and being on the side of the consumer.”
Convenience is at the core of the investment banking giant’s pivot into the realm of consumer banking, which launched three years ago and has yielded businesses like Marcus byGoldman Sachs. The branchless online bank now offers personal loans and savings accounts to more than 4 million customers, and Talwar said Goldman’s consumer division thinks of itself “as a 150-year-old startup” keen on disrupting the consumer banking space.
“Our purpose is to disrupt the distribution and consumption of financial services—pretty much whatAmazonhas done, and is doing, to retail, or what Apple did to the music industry,” he said. “We believe we can do that.”
Goldman believes it can achieve those lofty aims, Talwar noted, because it’s entered an industry where more than 70% of millennials “would rather visit the dentist than their bank branch,” a state of affairs that he described as “sad.”
“When we look at the consumer financial services business, we’re very, very, very focused on making life easier for the consumer,” he added. “What consumers want is simple [and] transparent, not complex, [which is] what they get from the banking industry as a whole. When they see complexity, they lose trust.”
—Slack went public without an IPO. Here’show a direct offering works
—5 things to knowabout Facebook’s new cryptocurrency, Libra
—Thispot company stockis now more popular than Apple among millennials
—When thenext recession hits, four good things could happen
—Listen to our new audio briefing,Fortune500 Daily
Don’t miss the dailyTerm Sheet,Fortune‘s newsletter on deals and dealmakers. |
Is Youyuan International Holdings Limited's (HKG:2268) P/E Ratio Really That Good?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). We'll show how you can use Youyuan International Holdings Limited's (HKG:2268) P/E ratio to inform your assessment of the investment opportunity.What is Youyuan International Holdings's P/E ratio?Well, based on the last twelve months it is 3.8. That corresponds to an earnings yield of approximately 26%.
Check out our latest analysis for Youyuan International Holdings
Theformula for P/Eis:
Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS)
Or for Youyuan International Holdings:
P/E of 3.8 = CN¥2.02(Note: this is the share price in the reporting currency, namely, CNY )÷ CN¥0.53 (Based on the trailing twelve months to December 2018.)
A higher P/E ratio implies that investors paya higher pricefor the earning power of the business. That isn't necessarily good or bad, but a high P/E implies relatively high expectations of what a company can achieve in the future.
Generally speaking the rate of earnings growth has a profound impact on a company's P/E multiple. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. Therefore, even if you pay a high multiple of earnings now, that multiple will become lower in the future. So while a stock may look expensive based on past earnings, it could be cheap based on future earnings.
Youyuan International Holdings shrunk earnings per share by 33% over the last year. But it has grown its earnings per share by 17% 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 Youyuan International Holdings has a lower P/E than the average (11) P/E for companies in the packaging industry.
This suggests that market participants think Youyuan International Holdings will underperform other companies in its industry. Many investors like to buy stocks when the market is pessimistic about their prospects. If you consider the stock interesting, further research is recommended. For example, I often monitordirector buying and selling.
One drawback of using a P/E ratio is that it considers market capitalization, but not the balance sheet. That means it doesn't take debt or cash into account. In theory, a company can lower its future P/E ratio by using cash or debt to invest in growth.
Such expenditure might be good or bad, in the long term, but the point here is that the balance sheet is not reflected by this ratio.
Youyuan International Holdings has net debt worth 67% of its market capitalization. This is a reasonably significant level of debt -- all else being equal you'd expect a much lower P/E than if it had net cash.
Youyuan International Holdings has a P/E of 3.8. That's below the average in the HK market, which is 10.7. Given meaningful debt, and a lack of recent growth, the market looks to be extrapolating this recent performance; reflecting low expectations for the future.
When the market is wrong about a stock, it gives savvy investors an opportunity. If it is underestimating a company, investors can make money by buying and holding the shares until the market corrects itself. Although we don't have analyst forecasts, you might want to assessthis data-rich visualizationof earnings, revenue and cash flow.
But note:Youyuan International Holdings may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with strong recent earnings growth (and a P/E ratio below 20).
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Teacher dies from cosmetic surgery in Dominican Republic
Alabama mother and teacher Alicia Renette Williams, 45, died, allegedly from cosmetic surgery complications in the Dominican Republic. (Screenshot: WBRC) A mother died in the Dominican Republic after having cosmetic surgery the countrys second surgical victim in one month. Alicia Renette Williams, 45, a 9th-grade teacher at Huffman High School in Birmingham, Alabama, developed blood clots five days after her June 2 elective surgery in the Caribbean country, reported WBRC . Myra Bennett Powell, MD, of Ederra Bella Plastic Surgery and Medical Spa created a Facebook Live video on the passing of Williams, one of her social media followers, saying she felt very moved after Williamss sister reached out. Shes a mother, she has a 14-year-old son, she is a teacher
she got her bachelors from Jacksonville State
she was really active in her church
Bennett said tearfully in the footage. Her sister said that she loved fashion, added Powell, and she was a diva and she was a really creative person. The doctor also spoke to Williams son on the phone. He said he wanted everyone to know that his mother was a social butterfly and she was a great cook and she was very loving, and his favorite thing she made for him was red velvet cake. Powell said she feels like a failure because as much as I talk about how to be safe, [Williams] still went there and did something that wasnt safe and now shes gone. In 2017, the Centers for Disease Control (CDC) warned U.S. travelers from having cosmetic or plastic procedures in the Dominican Republic due to the prevalence of bacterial infections. Last week, a New York man named Manuel Jose Nunez, whom a friend described as the life of the party, died after having liposuction at the Caribbean Plastic Surgery Clinic in Santo Domingo, according to Fox 8 . The clinic reportedly said, "He died of respiratory distress." According to Powell, Williams, who was anemic, went to the Dominican Republic to have liposuction on her arm, a tummy tuck, and a Brazilian butt lift. Afterward, Williams felt weak so she was hospitalized, sedated, and given IV fluids and blood, but she later died. Williamss doctor claimed hers was his only death, according to Powell, and he reportedly offered to pay for her body to be flown back to the United States. The moms body returned to Alabama on Monday. Powell says people usually opt for surgery in other countries due to the lack of regulations and the ability to get more extreme results in one procedure. The doctor noted that Williams was scheduled for a lot of surgery to happen all at one time. She speculated that Williams lost a large volume of blood due to anemia. A representative of Birmingham City Schools tells Yahoo Lifestyle, Birmingham City Schools is deeply saddened to confirm Alicia Williams, a ninth-grade English teacher at Huffman High School, recently passed away in the Dominican Republic. She recently completed her third year at Huffman. Our hearts go out to her family during this tragic situation, and she will be missed by the Huffman community. Story continues Read more from Yahoo Lifestyle: Recent high school graduates become ill during senior trip to Dominican Republic Wife of Man Who Died at Dominican Republic Resort Says Officials 'Recommended' She Cremate Husband What's Going On With Tourist Deaths In The Dominican Republic? Follow us on Instagram , Facebook and Twitter for nonstop inspiration delivered fresh to your feed, every day. View comments |
As Jessica Biel and other celebrities weigh in, California looks to limit vaccine exemptions
SAN FRANCISCO – Against the backdrop of a national measles outbreak , California lawmakers weigh legislation aimed at cracking down on vaccination exemptions. Thursday, Senate Bill 276 goes before the state’s Assembly Health Committee before probably moving on to a full Assembly vote and, ultimately, the desk of Gov. Gavin Newsom. This week, he expressed concerns that led to amendments to the bill, narrowing its focus. The vote comes at a time of heightened concern about exposure to once eradicated diseases, as well as the potential side effects of vaccinations on young children. Though a chorus of “anti-vax” voices has grown across the country, California is one of the nation’s toughest states when it comes to avoiding vaccinations. A Public Policy Institute of California poll shows 75% of respondents say parents should vaccinate their children, and 80% are concerned that a U.S. outbreak of nearly 1,000 measles cases, the largest in more than 25 years , will continue to spread. At least 52 of those cases were reported in California. As amended, the bill is less specific about what qualifies for an exemption and includes family medical history as part of the evaluation process. Exemptions typically are granted if a patient has an autoimmune disease or cancer, which may be adversely affected by a vaccine. California Gov. Gavin Newsom, and his wife, Jennifer Siebel Newsom walk together after visiting the tomb of Archbishop Oscar Romero at Metropolitan Cathedral in San Salvador, El Salvador, Sunday, April 7, 2019. Originally, the bill would have allowed the state's Health Department to review and even reject any medical exemption, but as rewritten, it would allow for such reviews only at schools where immunization rates fall below 95%. Those supporting SB 276 are concerned about the rapid jump in vaccine exemptions across the state since SB 277 went into effect in 2015 – that law ended exemptions based on religious beliefs . A California Healthline survey indicates exemptions for kindergartners in the state jumped to 4,812 in 2018-2019 from 931 in 2015-2016. (Exemptions for religious beliefs were at 16,817 in 2013-2014 and are at zero now.) Laws similar to SB 277 are on the books in Maine, Washington and New York. Most recently, the Board of Health in Nashville, Tennessee, expressed an interest in eliminating the exemption based on religion. Tuesday, Newsom said the amendments to SB 276 "will make it workable and addressed some of my bureaucratic anxieties." Although supporters of the bill are buoyed by the governor’s intention of signing – especially after he expressed concern about government overreach this month – opponents warn that it puts a bureaucrat between parents and doctors. Robert Kennedy Jr., left, stands with participants at a rally held in opposition to a proposed bill that would remove parents' ability to claim a philosophical exemption to opt their school-age children out of the combined measles, mumps and rubella vaccine, on Feb. 8, at the Capitol in Olympia, Wash. “The media hype tends to immediately make these issues about vaccination versus anti-vaccination groups, but that’s not where I’m at,” says Assembly member Devon Mathis, R-Visalia, who is critical of the bill. “I care about keeping the government out of this decision-making process.” Story continues A number of high-profile newsmakers have added their voices to the fight against SB 276, including actress Jessica Biel , who said she is not anti-vaccine but supports the rights of families to choose, and Robert F. Kennedy Jr., who called vaccines “a holocaust,” drawing fire from his own family members. Vaccine exemptions spike The bill’s author, physician and State Sen. Richard Pan, D-Sacramento, said the state needs an even more robust safeguard against potential epidemics. “This is about the right of children and their families to be safe at school and the freedom of those who truly need exemptions from vaccines to get them,” Pan said. “Over 100 schools in California have had excessively high exemption rates, and that’s unsafe.” Vaccine debate hits Washington: Teen who defied mom to get vaccinated testifies before Congress SB 276 would take 277 one step further, targeting "rogue doctors" who are freewheeling with exemptions. “There are a small number of unscrupulous doctors out there, and we need to make sure they don’t continue,” said Pan, noting that the bill would trigger investigations of doctors who wrote five or more exemptions. Christina Hildebrand, president of A Voice for Choice Advocacy, which opposes SB 276, agreed that unscrupulous doctors should be rooted out. But she said the fear of investigation might cause doctors to be hesitant about writing exemptions even when they’re legitimate. “You’re penalizing 140,000 other doctors in this state, and the parents and children they serve,” Hildebrand said. “We can’t rush this bill, and there are many questions left unanswered.” Are vaccines safe?: What you need to know about mercury, aluminum and other 'toxins' Among them, she said, are defining what constitutes a fraudulent medical exemption and allowing for temporary exemptions, such as when a child has a cold, which could count against a doctor’s exemption count record. “I’m told, ‘Trust your doctor,’ but now I’m being told, ‘Don’t trust your doctor, trust the state,’ ” she said. “We’re at risk of losing the doctor-patient relationship.” Measles outbreak fuels debate That view overstates the targeted focus of SB 276, said Kris Calvin, CEO of the American Academy of Pediatrics, California, which co-sponsored the bill with the California Medical Association, a professional organization that represents nearly a third of state's physicians. Mothers Ariana Rawls, left, of Stratford, and Shannon Gamache, right, of Ashford, talk to reporters about legislative efforts to change the state's vaccination laws, Wednesday, March 13, 2019, at the Capitol in Hartford, Conn. They were among parents and guardians to voice their opposition to ending the ability to claim a religious exemption from the state's school vaccination requirements. Proponents argue the change is needed to protect the health of the general population. (AP Photo/Susan Haigh) “The key purpose of this bill is to address the quadrupling of exemptions in California since SB 277 went into effect, because there’s no reason for that,” she said. “It was clear to practicing physicians that having more kids unvaccinated would just hurt those who really do need exemptions.” Measles make a comeback: How the anti-vax movement brought the measles back from near extinction Calvin said a small number of California doctors were seeing parents and "instead of having hard discussions about vaccines, were charging them a lot of money." “This bill tackles that issue,” she said. Hildebrand is skeptical that SB 276 will be limited to catching bad actors in the medical profession. One of her children has a medical exemption for vaccines, and she worries about the state possibly denying that exemption should it be investigated if the school falls below the 95% vaccination level. Officials near anti-vaccination "hot spot" Portland, Oregon, are declaring a public health emergency over a measles outbreak. “So what options am I left with?” she said. “Do I move out of the state? Well, I’m divorced, so I can’t. Do I homeschool my child, even when she is doing incredibly well in school? There are just too many questions still left unanswered, and the impact of this becoming law could be huge.” For bill sponsor Pan, SB 276 is a case in which the rights of the many may outweigh the needs of the few. “The opponents of this bill are talking about having a privilege, getting an exemption from vaccines, that could put people in harm’s way,” he said. “People being afraid to go outside because of a measles outbreak, that’s not freedom.” Follow USA TODAY national correspondent @marcodellacava This article originally appeared on USA TODAY: As Jessica Biel and other celebrities weigh in, California looks to limit vaccine exemptions View comments |
It's Official: Google Is Bailing on First-Party Tablets
Tablets have never been Android or Chrome's strong suit, andAlphabet(NASDAQ: GOOG)(NASDAQ: GOOGL)subsidiary Google has confirmed today that it is ditching the form factor. The news comes less than a year after the companyunveiled the Pixel Slate, its first Chrome OS tablet that Google ambitiously thought could compete withApple's iPad Pro andMicrosoft's Surface Pro as a laptop replacement. That's a tall order to fill, particularly when pricing approached $2,000 when including the keyboard and stylus.
The Pixel Slate received relentlessly mediocre reviews through no fault of its high-end hardware spec sheet; the device's flaws all center around the software trying to do too much and not doing anything particularly well.
Farewell, Pixel Slate. Image source: Google.
Business Insiderreports that Google has abandoned two unreleased tablets that it was working on, both of which were going to be smaller than the 12.3-inch Slate and were set to ship later this year. The search giant wasn't satisfied with the quality assurance testing of the tablets, according to the report.
BI had previously reported rumors that Google was pulling back onboth tablet and laptop hardware, but that no longer seems to be the case, because Google says it is still pushing forward with its Pixelbook laptops, which also run Chrome OS. The company will still support existing Slate customers and the software platforms themselves, as third-party manufacturers will still continue to bring Android and Chrome tablets to market.
"Chrome OS has grown in popularity across a broad range of form factors and we'll continue to work with our ecosystem of partners on laptops and tablets," a Google spokesperson told the outlet. "For Google's first-party hardware efforts, we'll be focusing on Chrome OS laptops and will continue to support Pixel Slate."
Google hardware chief Rick Osterloh also confirmed the news on social media.
Given Google's muted impact on the tablet market thus far, it bailing on tablets comes as little surprise. There are far better hardware opportunities for the company to pursue, such as midrange smartphones and smart speakers.
The Pixel 3a was unveiled last month with a starting price of just $399, garnering critical praise mostly from the strong value proposition offered at that midrange price. The company's smart-home portfolio is gaining enough traction that Google is nowregrouping under the Google Nest brandwhile expanding the lineup with a new and larger Nest Hub Max. Google Home speakers easily giveAmazon.comarun for its moneyin the smart speaker race, even overtaking the e-commerce giant in Europe, according to IDC's Francisco Jeronimo.
It makes far more sense for Google to focus its efforts in areas where it is already gaining traction and building momentum. The Pixel Slate won't be missed.
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. 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.Evan Niu, CFAowns shares of AMZN and AAPL. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), AMZN, AAPL, and MSFT. The Motley Fool has the following options: long January 2020 $150 calls on AAPL and short January 2020 $155 calls on AAPL. The Motley Fool has adisclosure policy. |
What Kind Of Investor Owns Most Of CStone Pharmaceuticals (HKG:2616)?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
The big shareholder groups in CStone Pharmaceuticals (HKG:2616) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that have been privatized tend to have low insider ownership.
CStone Pharmaceuticals has a market capitalization of HK$12b, so we would expect some institutional investors to have noticed the stock. In the chart below below, we can see that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about 2616.
Check out our latest analysis for CStone Pharmaceuticals
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
As you can see, institutional investors own 11% of CStone Pharmaceuticals. 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 CStone Pharmaceuticals, (below). Of course, keep in mind that there are other factors to consider, too.
CStone Pharmaceuticals 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. 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.
I can report that insiders do own shares in CStone Pharmaceuticals. This is a big company, so it is good to see this level of alignment. Insiders own HK$586m worth of shares (at current prices). If you would like to explore the question of insider alignment, you canclick here to see if insiders have been buying or selling.
The general public holds a 21% stake in 2616. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
With a stake of 63%, private equity firms could influence the 2616 board. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
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. |
NY Times Is Wrong on Facebook, Libra Poses No Systemic Economic Risk
ByCCN Markets: The New York Times suggests that Mark Zuckerberg ismaking a terrible movewith his Libra cryptocurrency. The social media behemoth is certainly not early, but that doesn’t mean it won’t get a proper taste of the punch.
Matt Stoller, who wrote the piece, goes on to claim:
“The way we structure money and payments is a question for democratic institutions, not technology companies.”
He argues that some fundamental problems will hold Libra back as it sets a lofty goal of taking the crown as global currency for a new world.
Compliance with who? Government? The Fed? The IRS? Supporters of institutional regulation continue to regurgitate the same old drivel. According to the article:
Read the full story on CCN.com. |
Whoopi Goldberg defends Joe Biden
Presidential hopeful Joe Biden is under fire after comments he made at a recent event were seen by some as racially insensitive. Biden compared today’s political climate in the senate to that of his early career, citing today’s lack of “civility.” He went on to single out his ability to work with two colleagues, Herman Talmadge and James O. Eastland, who were vocal supporters of segregation. "We got things done. We didn't agree on much of anything. We got things done,” said Biden. He also went on to say of Eastland, “I was in a caucus with James O. Eastland. He never called me ‘boy,’ he always called me ‘son.’” “Son” is historically a derogatory term used to disparage African-American men. Senator Cory Booker has called for Biden to apologize for the comments, but Biden refused, saying it’s Booker who should apologize. “Apologize for what? Cory should apologize. He knows better. There’s not a racist bone in my body,” said Biden. Booker responded on Twitter: Vice President Joe Biden told me I should know better. As a Black man in America, here's what I know: pic.twitter.com/MbbrVbi3BJ — Cory Booker (@CoryBooker) June 20, 2019 The panelists of The View spoke out in defense of Biden. “Don’t try to make him out to be a racist,” said co-host Whoopi Goldberg . “You don’t like some of the stuff he’s done, say that, but you can’t call the dude a racist. He sat for 8 years with a black guy,” she added. Guest co-host Ana Navarro said she thinks Booker is using Biden’s comments to get attention. “I think Cory Booker is taking advantage of the situation to try to get some attention,” she said. “Joe Biden is not a racist. It’s why he’s got good, very strong support from the African-American community,” continued Navarro. But not everyone agreed with the duo. Some on Twitter felt Biden’s comments were racist and that the panel shouldn’t be supporting him: Story continues #TheView @TheView just because Joe Biden was a vice president for African American president Obama it doesn't excuse him from his racist comments or racially insensitive comments. No double standard. I can't believe that Whoopi Goldberg is excusing Joe Biden for his wrong doings — Hi li (@HiliThinkSmart) June 20, 2019 #WhoopiGoldberg #whooyou should be ashamed of yourself defending his comments we know y'all push Biden you sold your soul man how dare you should quit — NGE (@brentwalton87) June 20, 2019 Others felt that Biden isn’t racist and spoke up in support of the former vice president: Correction: Whoopi seems to be the only one to understand the point Biden was trying to make. Congress needs to grow up and work together. Cory Booker wake up! — Elaine (@Elaine72948039) June 20, 2019 Agree 200% with Whoopie. Folks, knock it off! Stop nit picking every word the candidates say and listen to what they are really telling you. Agree / disagree, but STOP making mountains out of mole hills. Joe Biden is a man of incredible integrity and honor. He is no racist. (1/2) — linda goldstone (@altakaker) June 20, 2019 Joy Behar says Harvard was right to rescind Parkland shooting survivor's admission: Read more from Yahoo Entertainment: Veteran meteorologist 'let go' from job after objecting to station's 'Code Red' weather alerts Meghan McCain says Gwyneth Paltrow's living situation with her husband 'sounds like rich people stuff' 'Fox & Friends' co-host Brian Kilmeade says crowd boos are 'not for Ivanka' Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle's newsletter. |
Did You Manage To Avoid Jiangsu Innovative Ecological New Materials's (HKG:2116) 39% 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!
It's easy to match the overall market return by buying an index fund. But if you buy individual stocks, you can do both better or worse than that. Unfortunately theJiangsu Innovative Ecological New Materials Limited(HKG:2116) share price slid 39% over twelve months. That contrasts poorly with the market return of -9.8%. Jiangsu Innovative Ecological New Materials may have better days ahead, of course; we've only looked at a one year period. The falls have accelerated recently, with the share price down 16% in the last three months. However, one could argue that the price has been influenced by the general market, which is down 8.6% in the same timeframe.
Check out our latest analysis for Jiangsu Innovative Ecological New Materials
In his essayThe Superinvestors of Graham-and-DoddsvilleWarren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Unhappily, Jiangsu Innovative Ecological New Materials had to report a 33% decline in EPS over the last year. We note that the 39% share price drop is very close to the EPS drop. Therefore one could posit that the market has not become more concerned about the company, despite the lower EPS. Rather, the share price has approximately tracked EPS growth.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Dive deeper into the earnings by checking this interactive graph of Jiangsu Innovative Ecological New Materials'searnings, revenue and cash flow.
Jiangsu Innovative Ecological New Materials shareholders are down 37% for the year (even including dividends), even worse than the market loss of 9.8%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. With the stock down 16% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. Before deciding if you like the current share price, check how Jiangsu Innovative Ecological New Materials scores on these3 valuation metrics.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK 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. |
Former teacher's post on why she quit teaching goes viral: 'I didn't leave because of lousy pay'
Former Kindergarten teacher Jessica Gentry wrote a viral Facebook post about why she left teaching. (Credit: Jessica Gentry) As teachers across the country have quit their professions , one former Virginia educator set the record straight about her job — unfiltered. “I think it's easier for people to believe that I left teaching because of the lousy pay,” wrote Jessica Gentry in a June 13th Facebook post. “...That ain't me. Let me tell you why those who ooze passion for teaching are leaving the occupation like their hair is on fire...” Of her kindergarten students, Gentry tells Yahoo Lifestyle she loved “seeing their faces light up when they came into the classroom and hearing their excited chatter and watching new friendships form.” When the 34-year-old got into teaching, she hoped to create a safe space for her students to make mistakes, learn, and grow. But, she didn’t realize that would come at a cost to herself— and her 6-year-old daughter. “When kids are struggling with home life, poverty, abuse... the things they do and say— it takes a toll on you mentally. I carried all of that home with me,” Gentry tells Yahoo Lifestyle. She became short-fused and checked out at home and had to temporarily take medication for depression and anxiety due to the stress of her job. “My daughter deserved better. I was causing her trauma by taking on theirs,” she says. “I knew I couldn't keep bringing the worst ‘me’ home to the ones I loved.” After 12 years of teaching, Gentry recently put in her resignation with the Harrisonburg City Public Schools. But Gentry made sure she wasn’t going quietly. In her raw Facebook post with more than 249,000 likes and 204,000 shares, Gentry explained that large class sizes made it difficult to give students proper attention, and cited inadequate parenting, an over-emphasis on technology, a “customer service mindset,” and little support for teachers. Seeing her 21 students come to school in dirty clothes, some from chaotic homes, was tough. “I finally realized... you can't save them all. You can't even help 21 [students] if you aren't healthy yourself,” she wrote. “If your mental and physical health aren't a focus, you aren't even good for the 21.” Story continues While Gentry says her school understood her decision to leave, the district superintendent has “taken issue with the notion that teachers are leaving the profession as if their hair is on fire.” “Ms. Gentry may have her own reasons for making that assertion. Teaching is the noblest profession in the world, and the vast majority of teachers are dedicated to the vital work of empowering the next generation,” superintendent Michael Richards tells Yahoo Lifestyle in a statement. “Teaching is definitely a very challenging profession, and it is not for everyone.” The president of Harrisonburg Education Association tells Yahoo Lifestyle that while educators know that it is a challenging district, due to children experiencing language barriers, and for some, trauma, “most of my colleagues and I love it here.” Gentry tells Yahoo Lifestyle, “We wipe children’s tears, apply bandages to their wounds, and guide them to become successful members of society. Mistakes will be made, but we lead from our hearts. So respect us, partner with us, communicate with us...we are all working toward a common goal.” Read more from Yahoo Lifestyle: • WWII veteran, 99, walks at college graduation 70 years after finishing degree: 'I feel like I've succeeded' • Teacher, school basketball coach pens open letter about why he quit his dream job: 'It does not pay the bills' • Public school teacher with breast cancer forced to pay for her own substitute while on medical leave Follow us on Instagram , Facebook , and Twitter for nonstop inspiration delivered fresh to your feed, every day. |
Is Elastic N.V. (ESTC) A Good Stock To Buy?
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 Elastic N.V. (NYSE:ESTC).
Elastic N.V. (NYSE:ESTC)was in 18 hedge funds' portfolios at the end of March. ESTC investors should be aware of a decrease in activity from the world's largest hedge funds recently. There were 21 hedge funds in our database with ESTC positions at the end of the previous quarter. Our calculations also showed that estc isn't among the30 most popular stocks among hedge funds.
Today there are a multitude of indicators shareholders can use to assess stocks. Two of the less utilized indicators are hedge fund and insider trading indicators. We have shown that, historically, those who follow the best picks of the top money managers can outpace the market by a healthy amount (see the details here).
[caption id="attachment_750230" align="aligncenter" width="473"]
Brad Gerstner of Altimeter Capital[/caption]
We're going to take a glance at the recent hedge fund action regarding Elastic N.V. (NYSE:ESTC).
At the end of the first quarter, a total of 18 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -14% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards ESTC 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,Matrix Capital Managementwas the largest shareholder of Elastic N.V. (NYSE:ESTC), with a stake worth $59.9 million reported as of the end of March. Trailing Matrix Capital Management was Tiger Global Management, which amassed a stake valued at $58.9 million. Altimeter Capital Management, Sylebra Capital Management, and Ratan Capital Group were also very fond of the stock, giving the stock large weights in their portfolios.
Judging by the fact that Elastic N.V. (NYSE:ESTC) has witnessed declining sentiment from the smart money, logic holds that there exists a select few fund managers who sold off their entire stakes by the end of the third quarter. At the top of the heap, Christopher James'sPartner Fund Managementsaid goodbye to the largest position of all the hedgies tracked by Insider Monkey, worth about $5.2 million in stock. Andrew Sandler's fund,Sandler Capital Management, also sold off its stock, about $3.9 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest fell by 3 funds by the end of the third quarter.
Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Elastic N.V. (NYSE:ESTC) but similarly valued. We will take a look at Alkermes Plc (NASDAQ:ALKS), James Hardie Industries plc (NYSE:JHX), Harley-Davidson, Inc. (NYSE:HOG), and CyrusOne Inc (NASDAQ:CONE). This group of stocks' market valuations are similar to ESTC's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ALKS,22,309347,3 JHX,2,4238,0 HOG,16,54823,-3 CONE,17,193050,3 Average,14.25,140365,0.75 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 14.25 hedge funds with bullish positions and the average amount invested in these stocks was $140 million. That figure was $162 million in ESTC's case. Alkermes Plc (NASDAQ:ALKS) is the most popular stock in this table. On the other hand James Hardie Industries plc (NYSE:JHX) is the least popular one with only 2 bullish hedge fund positions. Elastic N.V. (NYSE:ESTC) 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 ESTC as the stock returned 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 |
Hedge Funds Have Never Been More Bullish On Steven Madden, Ltd. (SHOO)
"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.
Hedge fund interest inSteven Madden, Ltd. (NASDAQ:SHOO)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 Dorman Products Inc. (NASDAQ:DORM), Cleveland-Cliffs Inc (NYSE:CLF), and NuStar Energy L.P. (NYSE:NS) 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 take a glance at the recent hedge fund action regarding Steven Madden, Ltd. (NASDAQ:SHOO).
At Q1's end, a total of 18 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from the previous quarter. The graph below displays the number of hedge funds with bullish position in SHOO over the last 15 quarters. With hedge funds' sentiment swirling, there exists a few key hedge fund managers who were boosting their holdings substantially (or already accumulated large positions).
The largest stake in Steven Madden, Ltd. (NASDAQ:SHOO) was held byArrowstreet Capital, which reported holding $15.5 million worth of stock at the end of March. It was followed by GLG Partners with a $9.4 million position. Other investors bullish on the company included AQR Capital Management, D E Shaw, and Winton Capital Management.
Since Steven Madden, Ltd. (NASDAQ:SHOO) has experienced bearish sentiment from the smart money, it's easy to see that there is a sect of funds that elected to cut their entire stakes in the third quarter. At the top of the heap, Benjamin A. Smith'sLaurion Capital Managementdumped the biggest position of the "upper crust" of funds watched by Insider Monkey, worth about $1 million in stock. Joel Greenblatt's fund,Gotham Asset Management, also dumped its stock, about $0.8 million worth. These moves are important to note, 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 - not necessarily in the same industry as Steven Madden, Ltd. (NASDAQ:SHOO) but similarly valued. These stocks are Dorman Products Inc. (NASDAQ:DORM), Cleveland-Cliffs Inc (NYSE:CLF), NuStar Energy L.P. (NYSE:NS), and Trinity Industries, Inc. (NYSE:TRN). This group of stocks' market values are similar to SHOO's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position DORM,15,72393,3 CLF,35,464839,6 NS,1,1376,-1 TRN,28,700327,1 Average,19.75,309734,2.25 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 19.75 hedge funds with bullish positions and the average amount invested in these stocks was $310 million. That figure was $62 million in SHOO's case. Cleveland-Cliffs Inc (NYSE:CLF) is the most popular stock in this table. On the other hand NuStar Energy L.P. (NYSE:NS) is the least popular one with only 1 bullish hedge fund positions. Steven Madden, Ltd. (NASDAQ:SHOO) 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 SHOO wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); SHOO investors were disappointed as the stock returned -9.6% 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 |
Clean power to overtake fossil fuels in Britain in 2019
By Susanna Twidale
LONDON (Reuters) - Britain, the birth place of coal power, is set this year to use more electricity from zero-carbon sources such as wind, solar and nuclear than from fossil fuel plants for the first time, the country's National Grid said on Friday.
Britain was home to the world's first coal-fuelled power plant in the 1880s, and coal was its dominant electricity source and a major economic driver for the next century.
But last week it became the first G7 country to commit to reach net-zero emissions by 2050, a target requiring a big increase in low-carbon power, and an even steeper reduction in fossil fuel use.
European leaders have also this week discussed moving to a tougher climate target but have struggled to find unanimity among member states.
"The incredible progress that Britain has made in the past 10 years means we can now say 2019 will be the year zero-carbon power beats fossil fuel fired generation for the first time," National Grid CEO John Pettigrew said.
Data from National Grid shows low-carbon power generation contributed around 48% of Britain's electricity in the first five months of 2019 while fossil fuels such as coal and gas-fired plants contributed around 47%. The rest comes from biomass and storage.
The transition has been largely due to a huge increase in Britain's wind power capacity, with wind contributing almost a fifth of the country's power in the first five months of 2019, up from just 1% in 2009.
Britain's windy coastlines in particular have proved to be an ideal host for large wind projects, with the northwest coast of England home to the world's largest offshore wind farm, Orsted's Walney Extension.
The increase in zero-carbon power marks a huge shift from a decade ago when coal and gas plants provided around three-quarters of the country's electricity.
(For a graphic on 'Britain's electricity mix', click https://tmsnrt.rs/2Irvtsm)
Britain plans to phase out all coal-fired power generation by 2025 and further cuts in greenhouse emissions will be vital if the country is to meet the net-zero target, the government's climate advisers have said.
Germany, which gets around 35% of its electricity from renewable sources has struggled to reduce its emissions due to its high portion of coal power, which contributed more than one-third of its power last year.
IMPORTS
The National Grid data showed 9% of Britain's electricity came from imports from Europe via interconnectors with France, Belgium, the Netherlands and Ireland during the first five months of the year.
More than half of these imports came from zero-carbon generation.
National Grid said the growing number of power interconnectors Britain has with its neighbours, such as nuclear power dominant France, will help Britain further curb its fossil fuel use.
An interconnector planned with Norway will give Britain access to Norway's carbon-free hydro power, while also enabling Britain to export is growing wind capacity, National Grid said.
The UK-Norway North Sea Link, at 720 km, is the world's longest interconnector and is expected to begin operation in 2021.
(Reporting By Susanna Twidale; editing by David Evans) |
Were Hedge Funds Right About Flocking Into PDL BioPharma Inc. (PDLI) ?
Hedge funds are not perfect. They have their bad picks just like everyone else. Facebook, a stock hedge funds have loved dearly, lost nearly 40% of its value at one point in 2018. Although hedge funds are not perfect, their consensus picks do deliver solid returns, however. Our data show the top 20 S&P 500 stocks among hedge funds beat the S&P 500 Index by more than 6 percentage points so far in 2019. Because hedge funds have a lot of resources and their consensus picks do well, we pay attention to what they think. In this article, we analyze what the elite funds think of PDL BioPharma Inc. (NASDAQ:PDLI).
PDL BioPharma Inc. (NASDAQ:PDLI)shareholders have witnessed an increase in enthusiasm from smart money lately. Our calculations also showed that PDLI isn't among the30 most popular stocks among hedge funds.
To most investors, hedge funds are assumed to be worthless, outdated investment tools of the past. While there are more than 8000 funds trading at the moment, We choose to focus on the leaders of this club, around 750 funds. It is estimated that this group of investors shepherd most of the smart money's total capital, and by following their inimitable investments, Insider Monkey has determined various investment strategies that have historically outrun the market. Insider Monkey's flagship hedge fund strategy defeated the S&P 500 index by around 5 percentage points per year since its inception in May 2014 through the end of May. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 30.9% since February 2017 (through May 30th) even though the market was up nearly 24% during the same period. We just shared a list of 5 short targets in ourlatest quarterly updateand they are already down an average of 11.9% in less than a couple of weeks whereas our long picks outperformed the market by 2 percentage points in this volatile 2 week period.
Let's view the key hedge fund action encompassing PDL BioPharma Inc. (NASDAQ:PDLI).
Heading into the second quarter of 2019, a total of 18 of the hedge funds tracked by Insider Monkey were long this stock, a change of 13% from the fourth quarter of 2018. On the other hand, there were a total of 11 hedge funds with a bullish position in PDLI 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.
More specifically,Renaissance Technologieswas the largest shareholder of PDL BioPharma Inc. (NASDAQ:PDLI), with a stake worth $35.8 million reported as of the end of March. Trailing Renaissance Technologies was Arrowstreet Capital, which amassed a stake valued at $9.6 million. Citadel Investment Group, AQR Capital Management, and D E Shaw were also very fond of the stock, giving the stock large weights in their portfolios.
As industrywide interest jumped, key money managers have been driving this bullishness.Winton Capital Management, managed by David Harding, established the most valuable position in PDL BioPharma Inc. (NASDAQ:PDLI). Winton Capital Management had $5 million invested in the company at the end of the quarter. Bruce Kovner'sCaxton Associates LPalso made a $0.8 million investment in the stock during the quarter. The other funds with brand new PDLI positions are Jeffrey Talpins'sElement Capital Managementand Paul Marshall and Ian Wace'sMarshall Wace LLP.
Let's now take a look at hedge fund activity in other stocks similar to PDL BioPharma Inc. (NASDAQ:PDLI). We will take a look at Five Prime Therapeutics Inc (NASDAQ:FPRX), Arrow Financial Corporation (NASDAQ:AROW), Krystal Biotech, Inc. (NASDAQ:KRYS), and Axsome Therapeutics, Inc. (NASDAQ:AXSM). This group of stocks' market values resemble PDLI's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position FPRX,15,126296,0 AROW,2,11697,-1 KRYS,16,113063,4 AXSM,14,92771,8 Average,11.75,85957,2.75 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 11.75 hedge funds with bullish positions and the average amount invested in these stocks was $86 million. That figure was $83 million in PDLI's case. Krystal Biotech, Inc. (NASDAQ:KRYS) is the most popular stock in this table. On the other hand Arrow Financial Corporation (NASDAQ:AROW) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks PDL BioPharma Inc. (NASDAQ:PDLI) 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 PDLI wasn't nearly as popular as these 20 stocks and hedge funds that were betting on PDLI were disappointed as the stock returned -20.7% 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 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 Midstates Petroleum Company, Inc. (MPO)
Out of thousands of stocks that are currently traded on the market, it is difficult to identify those that will really generate strong returns. Hedge funds and institutional investors spend millions of dollars on analysts with MBAs and PhDs, who are industry experts and well connected to other industry and media insiders on top of that. Individual investors can piggyback the hedge funds employing these talents and can benefit from their vast resources and knowledge in that way. We analyze quarterly 13F filings of nearly 750 hedge funds and, by looking at the smart money sentiment that surrounds a stock, we can determine whether it has the potential to beat the market over the long-term. Therefore, let’s take a closer look at what smart money thinks about Midstates Petroleum Company, Inc. (NYSE:MPO).
IsMidstates Petroleum Company, Inc. (NYSE:MPO)a buy right now? The smart money is getting less optimistic. The number of bullish hedge fund bets went down by 1 in recent months. Our calculations also showed that mpo isn't among the30 most popular stocks among hedge funds.MPOwas in 18 hedge funds' portfolios at the end of the first quarter of 2019. There were 19 hedge funds in our database with MPO holdings at the end of the previous quarter.
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 peek at the recent hedge fund action encompassing Midstates Petroleum Company, Inc. (NYSE:MPO).
At Q1's end, a total of 18 of the hedge funds tracked by Insider Monkey were long this stock, a change of -5% from the fourth quarter of 2018. The graph below displays the number of hedge funds with bullish position in MPO 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,Fir Treewas the largest shareholder of Midstates Petroleum Company, Inc. (NYSE:MPO), with a stake worth $45.8 million reported as of the end of March. Trailing Fir Tree was Avenue Capital, which amassed a stake valued at $25 million. Renaissance Technologies, Sound Point Capital, and Ancora Advisors were also very fond of the stock, giving the stock large weights in their portfolios.
Judging by the fact that Midstates Petroleum Company, Inc. (NYSE:MPO) has witnessed a decline in interest from the smart money, logic holds that there exists a select few fund managers who sold off their entire stakes in the third quarter. It's worth mentioning that Himanshu Gulati'sAntara Capitalsold off the largest position of all the hedgies monitored by Insider Monkey, comprising about $2.6 million in stock. Phil Frohlich's fund,Prescott Group Capital Management, also dumped its stock, about $0.2 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest fell by 1 funds in the third quarter.
Let's also examine hedge fund activity in other stocks similar to Midstates Petroleum Company, Inc. (NYSE:MPO). We will take a look at Red Lion Hotels Corporation (NYSE:RLH), NII Holdings, Inc. (NASDAQ:NIHD), Catasys, Inc. (NASDAQ:CATS), and ASA Gold and Precious Metals Limited (NYSE:ASA). This group of stocks' market caps match MPO's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position RLH,11,58120,-1 NIHD,14,40636,-4 CATS,6,2276,5 ASA,5,13600,0 Average,9,28658,0 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $29 million. That figure was $98 million in MPO's case. NII Holdings, Inc. (NASDAQ:NIHD) is the most popular stock in this table. On the other hand ASA Gold and Precious Metals Limited (NYSE:ASA) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Midstates Petroleum Company, Inc. (NYSE:MPO) 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 MPO wasn't nearly as popular as these 20 stocks and hedge funds that were betting on MPO were disappointed as the stock returned -29.9% 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 Marchex, Inc. (MCHX)
Hedge funds and large money managers usually invest with a focus on the long-term horizon and, therefore, short-lived dips or bumps on the charts, usually don't make them change their opinion towards a company. This time it may be different. During the fourth quarter of 2018 we observed increased volatility and small-cap stocks underperformed the market. Things completely reversed during the first quarter. Hedge fund investor letters indicated that they are cutting their overall exposure, closing out some position and doubling down on others. Let’s take a look at the hedge fund sentiment towards Marchex, Inc. (NASDAQ:MCHX) to find out whether it was one of their high conviction long-term ideas.
Marchex, Inc. (NASDAQ:MCHX)shareholders have witnessed an increase in hedge fund interest in recent months.MCHXwas in 18 hedge funds' portfolios at the end of the first quarter of 2019. There were 14 hedge funds in our database with MCHX holdings at the end of the previous quarter. Our calculations also showed that mchx isn't among the30 most popular stocks among hedge funds.
Today there are many tools stock traders employ to evaluate their stock investments. A couple of the less utilized tools are hedge fund and insider trading signals. We have shown that, historically, those who follow the best picks of the best hedge fund managers can outclass the S&P 500 by a solid margin (see the details here).
Let's take a look at the latest hedge fund action surrounding Marchex, Inc. (NASDAQ:MCHX).
Heading into the second quarter of 2019, a total of 18 of the hedge funds tracked by Insider Monkey were long this stock, a change of 29% from the fourth quarter of 2018. By comparison, 12 hedge funds held shares or bullish call options in MCHX 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,Renaissance Technologieswas the largest shareholder of Marchex, Inc. (NASDAQ:MCHX), with a stake worth $9.9 million reported as of the end of March. Trailing Renaissance Technologies was Ancora Advisors, which amassed a stake valued at $6.7 million. Harbert Management, P.A.W. CAPITAL PARTNERS, and Royce & Associates were also very fond of the stock, giving the stock large weights in their portfolios.
With a general bullishness amongst the heavyweights, specific money managers have jumped into Marchex, Inc. (NASDAQ:MCHX) headfirst.Manatuck Hill Partners, managed by Mark Broach, established the largest position in Marchex, Inc. (NASDAQ:MCHX). Manatuck Hill Partners had $0.7 million invested in the company at the end of the quarter. Joseph Mathias'sConcourse Capital Managementalso made a $0.7 million investment in the stock during the quarter. The following funds were also among the new MCHX investors: Michael Gelband'sExodusPoint Capital, Brian C. Freckmann'sLyon Street Capital, and Michael Platt and William Reeves'sBlueCrest Capital Mgmt..
Let's also examine hedge fund activity in other stocks - not necessarily in the same industry as Marchex, Inc. (NASDAQ:MCHX) but similarly valued. These stocks are BioTime, Inc. (NYSE:BTX), Lifetime Brands Inc (NASDAQ:LCUT), First Internet Bancorp (NASDAQ:INBK), and Pfenex Inc (NYSE:PFNX). All of these stocks' market caps are closest to MCHX's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position BTX,4,44618,-2 LCUT,3,17296,0 INBK,2,1189,-1 PFNX,13,28678,3 Average,5.5,22945,0 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 5.5 hedge funds with bullish positions and the average amount invested in these stocks was $23 million. That figure was $37 million in MCHX's case. Pfenex Inc (NYSE:PFNX) is the most popular stock in this table. On the other hand First Internet Bancorp (NASDAQ:INBK) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks Marchex, Inc. (NASDAQ:MCHX) 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 MCHX wasn't nearly as popular as these 20 stocks and hedge funds that were betting on MCHX were disappointed as the stock returned -2.5% 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 |
Is McDermott International, Inc. (MDR) A Good Stock To Buy?
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 McDermott International, Inc. (NYSE:MDR).
McDermott International, Inc. (NYSE:MDR)has seen a decrease in hedge fund sentiment recently.MDRwas in 22 hedge funds' portfolios at the end of March. There were 23 hedge funds in our database with MDR positions at the end of the previous quarter. Our calculations also showed that MDR 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 gander at the key hedge fund action encompassing McDermott International, Inc. (NYSE:MDR).
At the end of the first quarter, a total of 22 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -4% from the fourth quarter of 2018. On the other hand, there were a total of 27 hedge funds with a bullish position in MDR a year ago. With hedge funds' positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey,AQR Capital Management, managed by Cliff Asness, holds the number one position in McDermott International, Inc. (NYSE:MDR). AQR Capital Management has a $54.7 million position in the stock, comprising 0.1% of its 13F portfolio. Sitting at the No. 2 spot is Michael Blitzer ofKingstown Capital Management, with a $44.6 million position; the fund has 9.2% of its 13F portfolio invested in the stock. Other hedge funds and institutional investors that are bullish consist of Ken Griffin'sCitadel Investment Group, and Robert Pitts'sSteadfast Capital Management.
Due to the fact that McDermott International, Inc. (NYSE:MDR) has faced declining sentiment from the smart money, it's safe to say that there was a specific group of fund managers who sold off their positions entirely by the end of the third quarter. It's worth mentioning that Matthew Knauer and Mina Faltas'sNokota Managementcut the largest stake of the "upper crust" of funds watched by Insider Monkey, worth about $15.5 million in stock. Brian Gustavson and Andrew Haley's fund,1060 Capital Management, also cut its stock, about $8.2 million worth. These moves are important to note, as total hedge fund interest fell by 1 funds by the end of the third quarter.
Let's now take a look at hedge fund activity in other stocks similar to McDermott International, Inc. (NYSE:MDR). We will take a look at Weight Watchers International, Inc. (NASDAQ:WW), Corcept Therapeutics Incorporated (NASDAQ:CORT), Cardiovascular Systems Inc (NASDAQ:CSII), and EnPro Industries, Inc. (NYSE:NPO). This group of stocks' market valuations resemble MDR's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position WW,20,210108,-3 CORT,18,132235,-1 CSII,18,119140,-3 NPO,17,146717,2 Average,18.25,152050,-1.25 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 18.25 hedge funds with bullish positions and the average amount invested in these stocks was $152 million. That figure was $169 million in MDR's case. Weight Watchers International, Inc. (NASDAQ:WW) is the most popular stock in this table. On the other hand EnPro Industries, Inc. (NYSE:NPO) is the least popular one with only 17 bullish hedge fund positions. Compared to these stocks McDermott International, Inc. (NYSE:MDR) 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 MDR wasn't nearly as popular as these 20 stocks and hedge funds that were betting on MDR were disappointed as the stock returned -17.7% 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 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 Ingevity Corporation (NGVT)
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 Ingevity Corporation (NYSE:NGVT).
Ingevity Corporation (NYSE:NGVT)investors should be aware of an increase in hedge fund sentiment of late. Our calculations also showed that ngvt isn't among the30 most popular stocks among hedge funds.
To the average investor there are numerous gauges shareholders have at their disposal to evaluate their holdings. A couple of the less utilized gauges are hedge fund and insider trading moves. Our researchers have shown that, historically, those who follow the best picks of the best hedge fund managers can beat their index-focused peers by a superb amount (see the details here).
Let's analyze the latest hedge fund action surrounding Ingevity Corporation (NYSE:NGVT).
Heading into the second quarter of 2019, a total of 23 of the hedge funds tracked by Insider Monkey were long this stock, a change of 35% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards NGVT 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 Insider Monkey's hedge fund database,Balyasny Asset Management, managed by Dmitry Balyasny, holds the most valuable position in Ingevity Corporation (NYSE:NGVT). Balyasny Asset Management has a $19.3 million position in the stock, comprising 0.1% of its 13F portfolio. Sitting at the No. 2 spot isMillennium Management, managed by Israel Englander, which holds a $18.5 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining peers that hold long positions encompass Principal Global Investors'sColumbus Circle Investors, Ken Griffin'sCitadel Investment Groupand D. E. Shaw'sD E Shaw.
As industrywide interest jumped, key money managers have jumped into Ingevity Corporation (NYSE:NGVT) headfirst.Columbus Circle Investors, managed by Principal Global Investors, established the biggest position in Ingevity Corporation (NYSE:NGVT). Columbus Circle Investors had $14.3 million invested in the company at the end of the quarter. Ken Griffin'sCitadel Investment Groupalso initiated a $9.6 million position during the quarter. The other funds with new positions in the stock are D. E. Shaw'sD E Shaw, Jim Simons'sRenaissance Technologies, and Benjamin A. Smith'sLaurion Capital Management.
Let's now review hedge fund activity in other stocks similar to Ingevity Corporation (NYSE:NGVT). These stocks are Methanex Corporation (NASDAQ:MEOH), Pluralsight, Inc. (NASDAQ:PS), Compañía de Minas Buenaventura S.A.A. (NYSE:BVN), and Landstar System, Inc. (NASDAQ:LSTR). This group of stocks' market valuations are closest to NGVT's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position MEOH,22,260832,1 PS,30,321492,15 BVN,7,16483,1 LSTR,23,208696,0 Average,20.5,201876,4.25 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 20.5 hedge funds with bullish positions and the average amount invested in these stocks was $202 million. That figure was $112 million in NGVT's case. Pluralsight, Inc. (NASDAQ:PS) is the most popular stock in this table. On the other hand Compañía de Minas Buenaventura S.A.A. (NYSE:BVN) is the least popular one with only 7 bullish hedge fund positions. Ingevity Corporation (NYSE:NGVT) 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 NGVT wasn't nearly as popular as these 20 stocks and hedge funds that were betting on NGVT 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 |
Is Landstar System, Inc. (LSTR) A Good Stock To Buy?
At Insider Monkey, we pore over the filings of nearly 750 top investment firms every quarter, a process we have now completed for the latest reporting period. The data we've gathered as a result gives us access to a wealth of collective knowledge based on these firms' portfolio holdings as of March 31. In this article, we will use that wealth of knowledge to determine whether or not Landstar System, Inc. (NASDAQ:LSTR) makes for a good investment right now.
Hedge fund interest inLandstar System, Inc. (NASDAQ:LSTR)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 LSTR to other stocks including Brunswick Corporation (NYSE:BC), Southwest Gas Holdings, Inc. (NYSE:SWX), and The Scotts Miracle-Gro Company (NYSE:SMG) 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.
We're going to review the new hedge fund action surrounding Landstar System, Inc. (NASDAQ:LSTR).
At Q1's end, a total of 23 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from one quarter earlier. By comparison, 22 hedge funds held shares or bullish call options in LSTR 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.
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey,Royce & Associates, managed by Chuck Royce, holds the number one position in Landstar System, Inc. (NASDAQ:LSTR). Royce & Associates has a $90.3 million position in the stock, comprising 0.8% of its 13F portfolio. The second largest stake is held byImpala Asset Management, led by Robert Bishop, holding a $25 million position; 1.3% of its 13F portfolio is allocated to the company. Some other professional money managers that hold long positions consist of Cliff Asness'sAQR Capital Management, Noam Gottesman'sGLG Partnersand Alexander Mitchell'sScopus Asset Management.
Because Landstar System, Inc. (NASDAQ:LSTR) has faced a decline in interest from the aggregate hedge fund industry, it's easy to see that there lies a certain "tier" of hedgies who were dropping their entire stakes in the third quarter. Intriguingly, Peter Rathjens, Bruce Clarke and John Campbell'sArrowstreet Capitaldumped the biggest investment of all the hedgies followed by Insider Monkey, comprising about $2.3 million in stock. Matthew Tewksbury's fund,Stevens Capital Management, also cut its stock, about $0.6 million worth. These moves are important to note, 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 - not necessarily in the same industry as Landstar System, Inc. (NASDAQ:LSTR) but similarly valued. These stocks are Brunswick Corporation (NYSE:BC), Southwest Gas Holdings, Inc. (NYSE:SWX), The Scotts Miracle-Gro Company (NYSE:SMG), and SLM Corp (NASDAQ:SLM). This group of stocks' market valuations are closest to LSTR's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position BC,27,564907,1 SWX,20,207977,3 SMG,16,167599,-4 SLM,29,576434,5 Average,23,379229,1.25 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $379 million. That figure was $209 million in LSTR's case. SLM Corp (NASDAQ:SLM) is the most popular stock in this table. On the other hand The Scotts Miracle-Gro Company (NYSE:SMG) is the least popular one with only 16 bullish hedge fund positions. Landstar System, Inc. (NASDAQ:LSTR) 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 LSTR wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); LSTR investors were disappointed as the stock returned -11.2% 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 PolyOne Corporation (POL)
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.
IsPolyOne Corporation (NYSE:POL)a buy here? Hedge funds are turning bullish. The number of long hedge fund positions went up by 4 recently. Our calculations also showed that pol 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]
We're going to take a look at the recent hedge fund action surrounding PolyOne Corporation (NYSE:POL).
At Q1's end, a total of 23 of the hedge funds tracked by Insider Monkey were long this stock, a change of 21% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards POL over the last 15 quarters. With hedge funds' capital changing hands, there exists an "upper tier" of key hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).
More specifically,Millennium Managementwas the largest shareholder of PolyOne Corporation (NYSE:POL), with a stake worth $23.4 million reported as of the end of March. Trailing Millennium Management was Arrowstreet Capital, which amassed a stake valued at $22.6 million. AQR Capital Management, D E Shaw, and Citadel Investment Group were also very fond of the stock, giving the stock large weights in their portfolios.
As aggregate interest increased, some big names were leading the bulls' herd.Weld Capital Management, managed by Minhua Zhang, established the biggest position in PolyOne Corporation (NYSE:POL). Weld Capital Management had $2.2 million invested in the company at the end of the quarter. Paul Tudor Jones'sTudor Investment Corpalso initiated a $1.6 million position during the quarter. The other funds with new positions in the stock are Benjamin A. Smith'sLaurion Capital Management, Steve Cohen'sPoint72 Asset Management, and Bruce Kovner'sCaxton Associates LP.
Let's check out hedge fund activity in other stocks similar to PolyOne Corporation (NYSE:POL). These stocks are Washington Real Estate Investment Trust (NYSE:WRE), Covanta Holding Corporation (NYSE:CVA), Simmons First National Corporation (NASDAQ:SFNC), and Terex Corporation (NYSE:TEX). This group of stocks' market caps are closest to POL's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position WRE,9,89215,-5 CVA,18,91758,-2 SFNC,9,16011,2 TEX,21,353360,8 Average,14.25,137586,0.75 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 14.25 hedge funds with bullish positions and the average amount invested in these stocks was $138 million. That figure was $151 million in POL's case. Terex Corporation (NYSE:TEX) is the most popular stock in this table. On the other hand Washington Real Estate Investment Trust (NYSE:WRE) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks PolyOne Corporation (NYSE:POL) 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 POL wasn't nearly as popular as these 20 stocks and hedge funds that were betting on POL were disappointed as the stock returned -13.3% 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 Yext, Inc. (YEXT)
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We have processed the filings of the more than 700 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their March 31 holdings, data that is available nowhere else. Should you consider Yext, Inc. (NYSE:YEXT) for your portfolio? We'll look to this invaluable collective wisdom for the answer.
Yext, Inc. (NYSE:YEXT)investors should pay attention to an increase in hedge fund sentiment recently. Our calculations also showed that yext 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.
Let's view the new hedge fund action surrounding Yext, Inc. (NYSE:YEXT).
At the end of the first quarter, a total of 23 of the hedge funds tracked by Insider Monkey were long this stock, a change of 77% from the previous quarter. By comparison, 5 hedge funds held shares or bullish call options in YEXT a year ago. With hedgies' positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were adding to their holdings substantially (or already accumulated large positions).
More specifically,D E Shawwas the largest shareholder of Yext, Inc. (NYSE:YEXT), with a stake worth $48.2 million reported as of the end of March. Trailing D E Shaw was Renaissance Technologies, which amassed a stake valued at $36 million. Two Sigma Advisors, Element Capital Management, and Whetstone Capital Advisors were also very fond of the stock, giving the stock large weights in their portfolios.
Consequently, specific money managers were breaking ground themselves.Element Capital Management, managed by Jeffrey Talpins, initiated the most valuable position in Yext, Inc. (NYSE:YEXT). Element Capital Management had $20 million invested in the company at the end of the quarter. George McCabe'sPortolan Capital Managementalso made a $10.6 million investment in the stock during the quarter. The following funds were also among the new YEXT investors: Paul Marshall and Ian Wace'sMarshall Wace LLP, Philip Hempleman'sArdsley Partners, and Peter Rathjens, Bruce Clarke and John Campbell'sArrowstreet Capital.
Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Yext, Inc. (NYSE:YEXT) but similarly valued. These stocks are Jagged Peak Energy Inc. (NYSE:JAG), Wingstop Inc (NASDAQ:WING), 360 Finance, Inc. (NASDAQ:QFIN), and Sally Beauty Holdings, Inc. (NYSE:SBH). This group of stocks' market caps resemble YEXT's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position JAG,12,133102,2 WING,24,246752,3 QFIN,1,548,-1 SBH,19,175672,-3 Average,14,139019,0.25 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $139 million. That figure was $203 million in YEXT's case. Wingstop Inc (NASDAQ:WING) is the most popular stock in this table. On the other hand 360 Finance, Inc. (NASDAQ:QFIN) is the least popular one with only 1 bullish hedge fund positions. Yext, Inc. (NYSE:YEXT) 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 YEXT wasn't nearly as popular as these 20 stocks and hedge funds that were betting on YEXT were disappointed as the stock returned -12.5% 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 Aerie Pharmaceuticals Inc (AERI) A Good Stock To Buy?
Amid an overall bull market, many stocks that smart money investors were collectively bullish on surged during the first quarter. Among them, Facebook and Microsoft ranked among the top 3 picks and these stocks gained 40% and 25% respectively. Our research shows that most of the stocks that smart money likes historically generate strong risk-adjusted returns. That's why we weren't surprised when hedge funds’ top 20 large-cap stock picks generated a return of 18.7% during the first 5 months of 2019 and outperformed the broader market benchmark by 6.6 percentage points.This is why following the smart money sentiment is a useful tool at identifying the next stock to invest in.
Aerie Pharmaceuticals Inc (NASDAQ:AERI)shares haven't seen a lot of action during the first quarter. Overall, hedge fund sentiment was unchanged. The stock was in 23 hedge funds' portfolios at the end of the first quarter of 2019. At the end of this article we will also compare AERI to other stocks including DiamondRock Hospitality Company (NYSE:DRH), Zuora, Inc. (NYSE:ZUO), and Carpenter Technology Corporation (NYSE:CRS) to get a better sense of its popularity.
In the 21st century investor’s toolkit there are dozens of metrics market participants employ to evaluate publicly traded companies. A pair of the most innovative metrics are hedge fund and insider trading moves. Our experts have shown that, historically, those who follow the top picks of the best hedge fund managers can outpace the market by a very impressive amount (see the details here).
We're going to take a look at the key hedge fund action surrounding Aerie Pharmaceuticals Inc (NASDAQ:AERI).
At Q1's end, a total of 23 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 0% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards AERI over the last 15 quarters. With the smart money's capital changing hands, there exists a select group of noteworthy hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).
The largest stake in Aerie Pharmaceuticals Inc (NASDAQ:AERI) was held byAdage Capital Management, which reported holding $107.2 million worth of stock at the end of March. It was followed by Foresite Capital with a $92.6 million position. Other investors bullish on the company included Consonance Capital Management, Deerfield Management, and Sectoral Asset Management.
Seeing as Aerie Pharmaceuticals Inc (NASDAQ:AERI) has experienced bearish sentiment from the aggregate hedge fund industry, it's safe to say that there is a sect of hedgies who sold off their full holdings last quarter. Interestingly, Arthur B Cohen and Joseph Healey'sHealthcor Management LPsaid goodbye to the largest investment of all the hedgies watched by Insider Monkey, totaling about $88.8 million in stock, and Christopher James's Partner Fund Management was right behind this move, as the fund dumped about $68.4 million worth. These moves are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let's also examine hedge fund activity in other stocks similar to Aerie Pharmaceuticals Inc (NASDAQ:AERI). These stocks are DiamondRock Hospitality Company (NYSE:DRH), Zuora, Inc. (NYSE:ZUO), Carpenter Technology Corporation (NYSE:CRS), and American Assets Trust, Inc (NYSE:AAT). All of these stocks' market caps are closest to AERI's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position DRH,13,206595,-6 ZUO,21,116298,7 CRS,13,82466,-2 AAT,14,114971,0 Average,15.25,130083,-0.25 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 15.25 hedge funds with bullish positions and the average amount invested in these stocks was $130 million. That figure was $532 million in AERI's case. Zuora, Inc. (NYSE:ZUO) is the most popular stock in this table. On the other hand DiamondRock Hospitality Company (NYSE:DRH) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Aerie Pharmaceuticals Inc (NASDAQ:AERI) 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 AERI wasn't nearly as popular as these 20 stocks and hedge funds that were betting on AERI were disappointed as the stock returned -20% 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 Ironwood Pharmaceuticals, Inc. (IRWD)
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 Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD).
IsIronwood Pharmaceuticals, Inc. (NASDAQ:IRWD)the right pick for your portfolio? Money managers are becoming more confident. The number of bullish hedge fund positions moved up by 6 recently. Our calculations also showed that irwd isn't among the30 most popular stocks among hedge funds.IRWDwas in 23 hedge funds' portfolios at the end of the first quarter of 2019. There were 17 hedge funds in our database with IRWD positions at the end of the previous quarter.
If you'd ask most stock holders, hedge funds are viewed as worthless, old investment tools of yesteryear. While there are greater than 8000 funds with their doors open today, We look at the masters of this club, about 750 funds. These hedge fund managers administer the lion's share of the smart money's total capital, and by paying attention to their best stock picks, Insider Monkey has deciphered a few investment strategies that have historically exceeded the S&P 500 index. Insider Monkey's flagship hedge fund strategy defeated the S&P 500 index by around 5 percentage points per annum since its inception in May 2014 through the end of May. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 30.9% since February 2017 (through May 30th) even though the market was up nearly 24% during the same period. We just shared a list of 5 short targets in ourlatest quarterly updateand they are already down an average of 11.9% in less than a couple of weeks whereas our long picks outperformed the market by 2 percentage points in this volatile 2 week period.
We're going to take a peek at the latest hedge fund action surrounding Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD).
At Q1's end, a total of 23 of the hedge funds tracked by Insider Monkey were long this stock, a change of 35% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards IRWD 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,Sarissa Capital Managementwas the largest shareholder of Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD), with a stake worth $102 million reported as of the end of March. Trailing Sarissa Capital Management was MFN Partners, which amassed a stake valued at $66.8 million. EcoR1 Capital, Bridger Management, and Citadel Investment Group were also very fond of the stock, giving the stock large weights in their portfolios.
As aggregate interest increased, some big names were leading the bulls' herd.Healthcor Management LP, managed by Arthur B Cohen and Joseph Healey, created the most valuable position in Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD). Healthcor Management LP had $10.1 million invested in the company at the end of the quarter. Bain Capital'sBrookside Capitalalso made a $5.5 million investment in the stock during the quarter. The following funds were also among the new IRWD investors: Howard Marks'sOaktree Capital Management, Jim Simons'sRenaissance Technologies, and Kamran Moghtaderi'sEversept Partners.
Let's check out hedge fund activity in other stocks similar to Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD). We will take a look at Jack in the Box Inc. (NASDAQ:JACK), Inogen Inc (NASDAQ:INGN), TransAlta Corporation (NYSE:TAC), and Regenxbio Inc (NASDAQ:RGNX). This group of stocks' market valuations match IRWD's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position JACK,36,645430,7 INGN,17,136102,-8 TAC,11,29092,2 RGNX,19,317732,2 Average,20.75,282089,0.75 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 20.75 hedge funds with bullish positions and the average amount invested in these stocks was $282 million. That figure was $421 million in IRWD's case. Jack in the Box Inc. (NASDAQ:JACK) is the most popular stock in this table. On the other hand TransAlta Corporation (NYSE:TAC) is the least popular one with only 11 bullish hedge fund positions. Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) 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 IRWD wasn't nearly as popular as these 20 stocks and hedge funds that were betting on IRWD were disappointed as the stock returned -3.1% 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 |
Hedge Funds Have Never Been This Bullish On Moelis & Company (MC)
A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended March 31, so let’s proceed with the discussion of the hedge fund sentiment on Moelis & Company (NYSE:MC).
IsMoelis & Company (NYSE:MC)a bargain? Investors who are in the know are taking a bullish view. The number of long hedge fund positions increased by 2 lately. Our calculations also showed that mc isn't among the30 most popular stocks among hedge funds.MCwas in 23 hedge funds' portfolios at the end of March. There were 21 hedge funds in our database with MC holdings 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 key hedge fund action regarding Moelis & Company (NYSE:MC).
At Q1's end, a total of 23 of the hedge funds tracked by Insider Monkey were long this stock, a change of 10% from the previous quarter. The graph below displays the number of hedge funds with bullish position in MC 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.
The largest stake in Moelis & Company (NYSE:MC) was held byHighline Capital Management, which reported holding $45.2 million worth of stock at the end of March. It was followed by Royce & Associates with a $18.1 million position. Other investors bullish on the company included Marshall Wace LLP, Millennium Management, and Strycker View Capital.
As one would reasonably expect, specific money managers have been driving this bullishness.Highline Capital Management, managed by Jacob Doft, assembled the largest position in Moelis & Company (NYSE:MC). Highline Capital Management had $45.2 million invested in the company at the end of the quarter. Usman Waheed'sStrycker View Capitalalso initiated a $4.6 million position during the quarter. The other funds with new positions in the stock are Richard Mashaal'sRima Senvest Management, Noam Gottesman'sGLG Partners, and Michael Platt and William Reeves'sBlueCrest Capital Mgmt..
Let's now review hedge fund activity in other stocks similar to Moelis & Company (NYSE:MC). We will take a look at Northwest Natural Holding Company (NYSE:NWN), Dillard's, Inc. (NYSE:DDS), International Speedway Corporation (NASDAQ:ISCA), and Crocs, Inc. (NASDAQ:CROX). This group of stocks' market values are closest to MC's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position NWN,11,68749,1 DDS,28,154651,14 ISCA,19,167619,-1 CROX,25,393812,-1 Average,20.75,196208,3.25 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 20.75 hedge funds with bullish positions and the average amount invested in these stocks was $196 million. That figure was $123 million in MC's case. Dillard's, Inc. (NYSE:DDS) is the most popular stock in this table. On the other hand Northwest Natural Holding Company (NYSE:NWN) is the least popular one with only 11 bullish hedge fund positions. Moelis & Company (NYSE:MC) 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 MC wasn't nearly as popular as these 20 stocks and hedge funds that were betting on MC were disappointed as the stock returned -20.7% 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 |
Yorkey Optical International (Cayman) Ltd. (HKG:2788) Delivered A Weaker ROE Than Its Industry
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). To keep the lesson grounded in practicality, we'll use ROE to better understand Yorkey Optical International (Cayman) Ltd. (HKG:2788).
Over the last twelve monthsYorkey Optical International (Cayman) has recorded a ROE of 7.6%. Another way to think of that is that for every HK$1 worth of equity in the company, it was able to earn HK$0.076.
Check out our latest analysis for Yorkey Optical International (Cayman)
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Yorkey Optical International (Cayman):
7.6% = US$7.7m ÷ US$101m (Based on the trailing twelve months to December 2018.)
Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is the capital paid in by shareholders, plus any retained earnings. The easiest way to calculate shareholders' equity is to subtract the company's total liabilities from the total assets.
ROE measures a company's profitability against the profit it retains, and any outside investments. The 'return' is the profit 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. That means ROE can be used to compare two businesses.
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. If you look at the image below, you can see Yorkey Optical International (Cayman) has a lower ROE than the average (9.8%) in the Electronic industry classification.
That certainly isn't ideal. We'd prefer see an ROE above the industry average, but it might not matter if the company is undervalued. Nonetheless, it could be useful todouble-check if insiders have sold shares recently.
Companies usually need to invest money 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. That will make the ROE look better than if no debt was used.
One positive for shareholders is that Yorkey Optical International (Cayman) does not have any net debt! So although its ROE isn't that impressive, we shouldn't judge it harshly on that metric, because it didn't use debt. After all, when a company has a strong balance sheet, it can often find ways to invest in growth, even if it takes some time.
Return on equity is useful for comparing the quality of different businesses. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have the same ROE, then I would generally prefer the one with less debt.
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. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So I think it may be worth checking thisfreethisdetailed graphof past earnings, revenue and cash flow.
But note:Yorkey Optical International (Cayman) 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. |
Neil Gaiman hilariously responds to Christian group demanding Netflix cancel Amazon's 'Good Omens'
Neil Gaiman knows how to take a joke, even an accidental one. The author responded to the petition created by a Christian group — Return to Order — for Netflix to cancel his show Good Omens , even though it airs on Amazon Prime Video. Gaiman, who wrote every episode of the show, took the criticism in stride. “This is so beautiful… Promise me you won’t tell them?” he tweeted Wednesday. This is so beautiful... Promise me you won't tell them? https://t.co/thYTOG7GBE — Neil Gaiman (@neilhimself) June 19, 2019 The fantasy series, adapted from Gaiman and Terry Pratchett’s 1990 novel, features an angel (Michael Sheen) and demon (David Tennant) who work together to stop an apocalypse. It features a reluctant anti-Christ, Benedict Cumberbatch voicing Satan, and of course, Frances McDormand as the voice of God . Sophie Mutevelian/Amazon Studios The Christian group was not a fan of the show’s over-the-top nature and its petition for Netflix to cancel the show has garnered more than 20,000 signatures, although the current page may have been taken down. The petition said the show is “another step to make satanism appear normal, light and acceptable” and that it “mocks God’s wisdom.” It also spoke out against a woman being allowed to voice God. “This type of video makes light of Truth, Error, Good and Evil, and destroys the barriers of horror that society still has for the devil,” The Guardian quoted the petition saying. Both Netflix and Amazon have also responded to the petition, and of course, made promises neither could actually keep. “ok we promise not to make any more,” the Netflix UK & Ireland account tweeted. ok we promise not to make any more https://t.co/TRPux36kcX — Netflix UK & Ireland (@NetflixUK) June 20, 2019 The Amazon Prime Video account also replied, saying, “Hey @netflix, we’ll cancel Stranger Things if you cancel Good Omens.” Story continues Hey @netflix , we'll cancel Stranger Things if you cancel Good Omens. 😉 https://t.co/EJPmi9rL7g — Amazon Prime Video US (@PrimeVideo) June 20, 2019 So it’s safe to say Good Omens isn’t going away anytime soon, especially as it has earned rave reviews from fans and critics alike. But viewers who are up in arms over the show are free to challenge Netflix, Hulu, or HBO anytime. Related content: Neil Gaiman responds to Good Omens shippers: ‘Make fun fan fiction’ Neil Gaiman breaks down Good Omens and its long, strange trip to the screen |
Gay couple inspires young neighbor to come out
A lesbian couple received a sweet letter from a neighbor about how they inspired the young person to come out. (Photo: Facebook) A lesbian couple from Texas found a letter on their doorstep from a neighbor, who credits the women with giving the young person the courage to come out. Sally Stow, a Houston-based teacher who lives with her partner, Meghan Stabler, in Round Rock, Texas, was grabbing some packages at the front door on Wednesday morning when she noticed the note. Although she thought it was a memo from a local business, it turned out to be something much more meaningful. “You can imagine my surprise when I picked it up and began to read what was in the letter,” Stow tells Yahoo Lifestyle. “I burst into tears.” The letter, which Stow posted to her Facebook page , was from a neighbor who she says she and Stabler had never met before. However, the neighbor, who remains anonymous, was inspired to come out to their own family because of the pride flag outside of Stabler’s home. Stow explains that she posted the note on her social media to show friends just how important visibility is, especially when seeing how it impacts young people. “I do live out and proud, even though I’m in the state of Texas, because I shouldn’t have to hide who I am,” Stow says. “And every day I’m educating students, and if I’m hiding who I am, I’m just perpetuating the situation. So, that’s kind of where I came from in terms of why I made that post.” Still, she never anticipated the response that the post received, although she admits it’s no surprise considering so many older people within the LGBTQ community can relate to it. “Something as positive as this is felt by so many people because many remember what it was like to be alone, to be closeted — some people still are,” Stow explains. “And they can see themselves within that situation and just know what it would’ve meant at that age to have people in your neighborhood that are proud to be who they are to let you know that you’re okay, you’re not a bad person just because you’re LGBTQ.” Although Stow doesn’t have a direct way to contact the neighbor responsible for the note, she still has a message for them. Story continues “We see you, we hear you and we’re here for you,” Stow says. “If they need some support, to reach out through whatever means they can.” Read more from Yahoo Lifestyle: LGBTQ-rights activist Jazz Jennings shares a message for Pride: ‘We deserve to exist freely’ Transgender women of color are pioneers of the LGBTQ-rights movement. So why are they still fighting for their lives? Dominique Jackson of ‘Pose’ on LGBTQ Pride and culture: ‘Trans women have always been the nurturers’ Follow us on Instagram , Facebook and Twitter for nonstop inspiration delivered fresh to your feed, every day. |
Some Goodland Group (SGX:5PC) Shareholders Are Down 33%
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Ideally, your overall portfolio should beat the market average. But in any portfolio, there will be mixed results between individual stocks. At this point some shareholders may be questioning their investment inGoodland Group Limited(SGX:5PC), since the last five years saw the share price fall 33%. And some of the more recent buyers are probably worried, too, with the stock falling 30% in the last year. The falls have accelerated recently, with the share price down 18% in the last three months.
View our latest analysis for Goodland Group
In his essayThe Superinvestors of Graham-and-DoddsvilleWarren Buffett described how share prices do not always rationally reflect the value of a business. 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).
Looking back five years, both Goodland Group's share price and EPS declined; the latter at a rate of 27% per year. This fall in the EPS is worse than the 7.8% compound annual share price fall. So investors might expect EPS to bounce back -- or they may have previously foreseen the EPS decline.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
Thisfreeinteractive report on Goodland Group'searnings, revenue and cash flowis a great place to start, if you want to investigate the stock further.
It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Goodland Group's TSR for the last 5 years was -25%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!
While the broader market gained around 1.6% in the last year, Goodland Group shareholders lost 28% (even including dividends). However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 5.5% 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. Before forming an opinion on Goodland Group you might want to consider the cold hard cash it pays as a dividend. Thisfreechart tracks its dividend over time.
If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on SG 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. |
Those Who Purchased VCREDIT Holdings (HKG:2003) Shares A Year Ago Have A 63% Loss To Show For It
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Investing in stocks comes with the risk that the share price will fall. Anyone who heldVCREDIT Holdings Limited(HKG:2003) over the last year knows what a loser feels like. In that relatively short period, the share price has plunged 63%. We wouldn't rush to judgement on VCREDIT Holdings because we don't have a long term history to look at. The falls have accelerated recently, with the share price down 16% in the last three months. However, one could argue that the price has been influenced by the general market, which is down 8.6% in the same timeframe.
See our latest analysis for VCREDIT Holdings
VCREDIT Holdings isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
VCREDIT Holdings grew its revenue by 26% over the last year. We think that is pretty nice growth. Unfortunately it seems investors wanted more, because the share price is down 63% in that time. It may well be that the business remains approximately on track, but its revenue growth has simply been delayed. For us it's important to consider when you think a company will become profitable, if you're basing your valuation on revenue.
You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).
It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. So we recommend checking out thisfreereport showing consensus forecasts
VCREDIT Holdings shareholders are down 63% for the year, even worse than the market loss of 9.8%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. The share price decline has continued throughout the most recent three months, down 16%, suggesting an absence of enthusiasm from investors. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. 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.
If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK 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. |
iBuying Is Transforming The Real Estate Market
The 10-year US Treasury note dropped below 2% today, its lowest level since 2016, following the Federal Reserve’s increasingly dovish verbiage. The markets have now completely priced in a rate cut for next month on the heightened concern over consumer tariffs which China and Mexico.
Decreasing interest rates and unemployment’s levels at a half-century low makes for an attractive mix for US residential real estate. Investors are buying up US real estate like hot cakes making up 11% of total home sales in 2018, the highest on record, according to WSJ. Zillow ZG is one such investor that has pivoted to be more than just a real estate tool.
iBuying
The tech world has been nudging its way into the residential real estate market for some time with virtual open houses, mortgages closings with just the press of your finger, and now real estate agents are being outsourced by apps. Zillow, the most popular real estate website for those individuals looking to lease or buy homes, is now digitally flipping houses. They are integrating instant buying (aka iBuying) into their product offering through Zillow Offers. Zillow Offers began buying residential housing in April of 2018 and started to sell them in July 2018.
Zillow Offers is going to completely shift Zillow’s top-line driver from one primarily driven by advertising to one that is driven by capital intensive investments. This is an extremely risky and speculative move for the tech giant, but Zillow is confident that its algorithm will prove to be profitable.
They are expected to be buying 5,000 homes a month in the next 3 to 5 years, generating $20 billion in annualized revenue. This is an extremely capital intensive business with paper-thin margins that could disintegrate if the economy were to see a downturn.
Zillow Offers approach is relatively simple. They will be buying the homes at fair value minus need renovations for a 7% fee (compared to the roughly 5-6% that real estate agent charges). The advantage of selling your home on Zillow Offers is that the seller doesn’t have to wait for a corresponding buyer to sell their home neither are they required to make the needed renovations for a sale.
The key to this business model is the upcharge associated with the minor renovations. Zillow is estimating a 2-3% net margin for this segment as it matures.
Zillow is not the first mover on the iBuying trend. Tech unicorn, Opendoor, started 5 years ago and has already served more than 40,000 customers. Opendoor was proof of concept enough for Zillow to beign its own iBuying platform.
Zillow Performance & Valuation
Zillow has traded all over the board since they went public back in 2011. ZG traded up to a high of $159 in 2014, down to $18 in early 2016, and has recovered a bit to $46, which it closed at today. Zillow is still yet to turn a consistent profit and this is likely not to change with the firm’s new source of revenue expecting to deepen its deficit in the near term.
The company has had strong revenue growth that has not fallen below 20% year-over-over. ZG is currently trading at a favorable forward P/S multiple but this should only be taken with a grain of salt considering the low margin iBuying business they are now perusing.
Take Away
Tech is yet transforming another industry as iBuying in residential real estate takes center stage. This could have a long term adverse effect on traditional real estate brokerages like Century 21 RLGY and Sotheby’s BID.
Redfin RDFN is an example of a real estate brokerage that has been able to pivot to the shifting consumer, working with potential home buyers and sellers online.
Zillow’s iBuying strategy is precarious for a firm that’s prior revenue driver was low capital advertising. The exposure that Zillow already has in the real estate sector gives them an enormous leg up on competitors like Opendoor. The mere website traffic should be enough to keep Zillow Offers afloat as long as the real estate market does. The razor-thin margins in iBuying are going to make or break ZG.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportZillow Group, Inc. (ZG) : Free Stock Analysis ReportRealogy Holdings Corp. (RLGY) : Free Stock Analysis ReportSotheby's (BID) : Free Stock Analysis ReportRedfin Corporation (RDFN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Dominican Republic Health Official Claims Cynthia Day Died from the 'Shock' of Seeing Fiancé Dead
An official with the Dominican Republic Ministry of Public Health is adamantly claiming that there were no mysterious circumstances around the deaths of the Maryland couple who were found dead in their hotel room last month. On Wednesday, Ministry of Public Health spokesman Carlos Suero told Fox News that following Edward Nathaniel Holmes’ death on May 30, his fiancée Cynthia Ann Day died merely “from the shock of seeing the person beside her dead.” Suero argued that the engaged pair, who reportedly had high blood pressure medication in the hotel room, exhibited “a lot of medical conditions” which increased their risk while traveling. “They had a lot of medical conditions. There were many bottles of prescription medication in their room,” Suero told the outlet. “They practically carried around a pharmacy with them. They had pills for blood pressure, for the heart, they had anti-depressants. When you get on an airplane and travel with all that medical [baggage], this can happen.” The island official also noted that Holmes, 63, raised concerns about not feeling well to the hotel staff just one day before he was found dead alongside his fiancée, 49. After learning of the cost for medical attention, however, Holmes decided he would “just wait to get back to the U.S. the next day and go to his regular doctor,” Suero said. Nathaniel Edward Holmes and Cynthia Ann Day | Facebook RELATED: American Suddenly Died in Dominican Republic Weeks Before 3 Others, and FBI Will Investigate He unfortunately never made it there, as Holmes and Day’s bodies were discovered in their hotel room on May 30 , according to a statement released by the Grand Bahia Principe La Romana resort, where the couple had been staying since May 25. The pair were found by hotel staff who went to check on them after they missed their scheduled check-out window that same day, according to the hotel’s statement. Their bodies showed no signs of violence, USA Today reports . Story continues The Dominican Republic National Police later announced an autopsy found the couple died of respiratory failure and pulmonary edema. Day also reportedly suffered cerebral edema. • For more on the mysterious deaths in the Dominican Republic, subscribe now to PEOPLE or pick up this week’s issue, on newsstands Friday. Earlier this month, Holmes and Day’s bodies were flown back to Temple Hills, MD , the couple’s family lawyer Steven Bullock confirmed to PEOPLE in a statement. As their families prepared funeral arrangements, Bullock said they also intend on having autopsies performed and reviewing the toxicology report when it is completed. “The families of Cynthia Ann Day and Nathaniel Edward Holmes would like to thank the community for their condolences and support in their loss. We are continuing to investigate the exact cause of death,” Bullock said. “The families are determined to find out what happened and why.” RELATED: Engaged Couple’s Death at Dominican Resort Was ‘Unusual,’ Says Official; Toxicology Results Pending In addition to addressing Holmes and Day’s deaths, Suero lashed out at news reports about the six other American tourists who have died on the island since last year. “It’s all a hysteria against the Dominican Republic , to hurt our tourism, this is a very competitive industry and we get millions of tourists, we are a popular destination,” Ministry of Public Health spokesman Carlos Suero told Fox News on Wednesday. “People are taking aim at us.” Suero told the outlet the people died of natural causes. “The testing results are all negative, everything — the food, the alcohol, the air — is normal, there is no alteration of the alcohol,” he told Fox News. “With all the tourists we get every year, we make sure we comply with international standards for everything.” The U.S. State Department has not publicly released any details about the investigation and did not immediately confirm or dispute Suero’s assertions about the test results. People who have died in the Dominican Republic • Want to keep up with the latest crime coverage? Click here to get breaking crime news, ongoing trial coverage and details of intriguing unsolved cases in the True Crime Newsletter. According to the U.S. State Department, at least eight American tourists have died since the summer of 2018 after falling ill in the country — and dozens more have gotten sick . The FBI and CDC are investigating the deaths of at least six of the deaths . Some of them died in what appeared to be bizarre — and similar — circumstances. The agencies involved are not yet releasing further details about the investigations. Aside from Holmes and Day, the FBI has agents on the island nation to investigate two other cases: Miranda Schaup-Werner, 41, who collapsed on May 25 shortly after mixing a drink from the minibar in the Luxury Bahia Principe Bouganville in La Romana, and Pennsylvania native Yvette Monique Sport , 51, who collapsed in 2018 at the Bahia Príncipe resort in Punta Cana. Additionally, authorities are investigating the deaths of two Americans at the Hard Rock Hotel & Casino in Punta Cana. David Harrison, 45, died in July 2018. Robert Bell Wallace, 67, died last April. Hard Rock Resort and Casino Punta Cana | Shutterstock RELATED: Dominican Health Official Calls Reports of Tourist Deaths ‘Fake News’: ‘It’s All a Hysteria’ As the investigations continue, Suero is slamming the media reports as “fake news” and claimed that these deaths could have happened anywhere. “People die all over the world,” Suero told Fox News. “Unfortunately, very unfortunately for us, these tourists have died here. We had about 14 deaths last year here of U.S. tourists, and no one said a word. Now everyone is making a big deal of these.” “They were a special case as far as U.S. tourists,” he added. “They were a special medical case.” |
Hackers Used a Cheap Raspberry Pi Computer to Breach NASA
To breach the system at NASA’s Jet Propulsion Laboratory last year, a hacker merely had to tap into a low-costRaspberry Pi computer on the network
TheU.S. Office of the Inspector Generalsaid in a report this week that someone connected an unauthorized Raspberry Pi, a basic, build-it-yourself computer that costs $25 to $35, to the network. A cyber snooper was then able to use the credit-card sized computer to springboard into two of the Jet Propulsion Laboratory’s main networks and steal as much as 500 megabytes of data from 23 files.
Two of those files included International Traffic in Arms Regulations information related to the Mars Science Laboratory mission, which includes the Curiosity rover. The rover has been collecting soil and rock samples, along with other valuable information, from the Red Planet.
JPL, located just outside of Pasadena, Calif., declined to comment. It’s unclear who connected the Raspberry Pi computer inside JPL or who was behind the cyber attack.
After getting word of the hacking, the Johnson Space Center in Houston disconnected its system from JPL’s exploited gateway because of fears that the hacker could move into its mission systems, and send “malicious signals to human space flight missions that use those systems,” the report says.
NASA also said the hacking opened the door to possible manipulation from the Deep Space Network, an international system of radio antennas that collects data from and commands interplanetary space missions, as well as a few that orbit Earth. The Johnson Space Center stopped using the networks as a precaution, the report says.
Johnson resumed using limited spacecraft data in March, nearly a year after the hack was discovered. However, it still does not use all of the communications due to ongoing concerns about its reliability.
“Improvements to JPL’s security controls and increased oversight by NASA is crucial to ensuring the confidentiality, integrity, and availability of Agency data,” the report concluded.
NASA has agreed to a plan to correct its cybersecurity deficiencies, according to the report. Those include increased training and reviews.
The episode goes to show how one very inexpensive computer was all it took for Houston to have one very big cybersecurity problem. |
Why China YuHua Education Corporation Limited (HKG:6169) Could Be Your Next Investment
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of China YuHua Education Corporation Limited (HKG:6169), it is a financially-robust company with a a great track record of performance, trading at a great value. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, read the fullreport on China YuHua Education here.
6169 delivered a bottom-line expansion of 68% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did 6169 outperformed its past performance, its growth also surpassed the Consumer Services industry expansion, which generated a 22% earnings growth. This is what investors like to see! 6169 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. 6169 seems to have put its debt to good use, generating operating cash levels of 2.03x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
6169's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts' consensus forecast growth be correct. Also, relative to the rest of its peers with similar levels of earnings, 6169's share price is trading below the group's average. This further reaffirms that 6169 is potentially undervalued.
For China YuHua Education, I've compiled three pertinent aspects you should further examine:
1. Future Outlook: What are well-informed industry analysts predicting for 6169’s future growth? Take a look at ourfree research report of analyst consensusfor 6169’s outlook.
2. Dividend Income vs Capital Gains: Does 6169 return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Ourhistorical dividend yield visualizationquickly tells you what your can expect from 6169 as an investment.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of 6169? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Slack Goes Public: What We Learned From Its Direct Listing Debut
Slack your coworkers—theworkplace messaging companyis now public.
Huddled on the NYSE trading floor, members of the press, investors and market makers alike hurried up and waited for Slack to begin trading on Thursday. The company’s iconic message “ping” signaled it was time for Slack founder and CEO Stewart Butterfield to ring the bell. Opening at $38.50 per share, Slack stock (under the ticker “WORK”)traded up over 57%and remained in the $40s during intraday trading on its first day as a public company. The stock closed over $38.
But Slack didn’t IPO—the company opted for the less-common direct listing. Here’s what we learned from Slack’s trading debut.
Slack surprised investors and market makers alike by opening with formidable trading volume.
According to Joe Mecane, head of execution services at Citadel Securities (which managed Slack’s debut), his firm had expected some 10 to 15 million shares to begin trading—representing about 5% of Slack’s roughly 200 million shares eligible for trading. And while typical IPOs have 10% of their shares outstanding available as a benchmark to begin trading, according to Mecane, the roughly 40 million shares Slack opened with was far above that percentage. That, says Mecane, was “unexpectedly strong.”
The strong volume and steady trading flow throughout the day suggest investors were feeling bullish. Mecane reports that, “buyers were very strongly interested at a high price point” from the open, and there were ample sellers to match. “I think the fact that it’s trading fairly strongly … for most if not all of the day … is just a good sign for the strength of the debut,” Mecane said.
Unlike a typical IPO, the supply and demand dynamics for a direct listing is a bit different—a potential cause for concern to market makers like Citadel Securities. In fact, “you can end up in a situation where you have buyers showing up, but you’re not quite sure whether or not the supply is in the market,” Mecane saidon WednesdayatFortune‘s Brainstorm Finance conference in Montauk, N.Y.
But it seems as though these direct listing-specific worries were laid to rest. “Maybe the most surprising thing has been how steady it’s been since it opened,” Deloitte & Touche Partner Barrett Daniels said. Daniels characterized the stock’s “amazingly flat” performance as a good sign for the company.
Will other companies follow Slack’s lead?
“Today went very well for them and I wouldn’t be surprised if there are a couple of other companies that are watching this closely,” Daniels says. In fact, according to Mecane, there has already been a little bit of outreach to Citadel Securities from companies considering direct listings. Cal Henderson, Slack’s cofounder and CTO, told CNN Business on Thursday that the non-traditional path to going public appealed because “we didn’t have a need to raise capital. That was the biggest driver.”
Analysts, however, aren’t convinced such direct listings will replace traditional IPOs. “I never think we’re going to see a ton of these, I still think that there is a very limited population of companies that can do this,” Daniels said. “But if they were looking for a sign that this works, then they got it today.”
Enterprise software companies, in particular, are sure to be encouraged by today’s results.
“It really just shows that the IPO window for enterprise software is very much open right now,” Rishi Jaluria, senior vice president and senior research analyst at D.A. Davidson, said. “I would expect many more of these software IPOs by year’s end.”
As for Citadel Securities?
Mecane reports that they are, “big Slack users as an organization,” and conducted planning sessions for the company’s listing over—you guessed it—Slack.
—Slack is going public without an IPO. Here’show a direct offering works
—5 things to knowabout Facebook’s new cryptocurrency, Libra
—Thispot company stockis now more popular thanAppleamong millennials
—When thenext recession hits, four good things could happen
—Listen to our new audio briefing,Fortune500 Daily
Don’t miss the dailyTerm Sheet,Fortune‘s newsletter on deals and dealmakers |
How This Blockchain Entrepreneur Landed Partnerships With Citi, Nasdaq and More
Adam Krellenstein is the CTO and co-founder ofSymbiont, themarket-leading platform for institutional applications of blockchaintechnology. Symbiont’s cutting-edge tech has been used by financial institutions and governments to develop newbusiness lines, increase transparency, reduce risks and save costs. The company has raised $35.4 million in funding, according to Crunchbase, and it has partnered with such top entities asCiti, Nasdaq and Vanguard.
Each week, GOBankingRates sets out to discover what makes the people behind top companies tick. We like to call this series “Best in Business” — andKrellensteinreally is one of the best. He told usabout how he cut through all the noise in the blockchain technology space,the four areas every successful company should excel in andways that you canfind (or build) your own dream job, too. Below, find our favorite moments from the story of howKrellensteinlaunched his business.
Before Symbiont, I was one of the creators of Counterparty, a public-blockchain smart contracts platform that preceded Ethereum. My co-founders and I were inspired to launch Symbiont after seeing how both Counterparty and Ethereum were only being used for the simplest possible applications — tokens that can be transferred and traded — and nothing more complex, interesting or valuable. I came to be convinced that smart contracts — general decentralized software applications — were actually much more compelling in permissioned-blockchain systems, such as the one we’ve built at Symbiont.
My greatest concern was working within institutional finance, which as an industry is traditionally heavily regulated, slow-moving and slow to adopt new technology. Acquiring users would have been much easier in the public-blockchain cryptocurrency space, where you can publish a binary on the Internet and have people interact with the software immediately.
While the sales cycle is much longer with institutions, I have been pleasantly surprised by how eager many of our clients were to use our technology. Symbiont has been able to gain real traction in many major financial markets, primarily because there is such a profound need for a solution like ours within financial markets.
Discover:20 Best and Worst Cities in America To Start a Small Business
But there were hard parts: hiring great talent; architect-ing the world’s first blockchain with private smart contracts; engineering a stable, secure, correct and maintainable code base; integrating with cloud infrastructure providers; selling a real product when the industry is inundated by scams and vaporware.
The critical thing for Symbiont was to build a product that brought real value to its users. Too many blockchain projects are either un-innovative clones of other efforts, centralized systems in disguise, of only academic interest or outright scams. Frankly, it’s much harder to bring value — and to convince others that you can bring value — in such a noisy, hyped-up space. And then we don’t settle for just a modicum of value — we are an incredibly ambitious business, working to completely re-architect the core infrastructure for multiple massive financial markets using a brand-new technology.
[When it came time to launch the business], the most important people have, of course, been my two co-founders, Mark Smith and Evan Wagner — CEO and COO, respectively. Mark’s previous startup experience, his business acumen and his deep knowledge of finance have all been invaluable, while Evan has done amazing work behind the scenes recruiting our phenomenal team and really just keeping the whole business running smoothly day in and day out.
[If you want to start your own company], make sure you have co-founders that complement your skill set well. You need excellence in business, technology, product and operations — at the very least.
Click through to find outhow these female founders are leading their companies to new heights.
More on Money
• Over 50? Your Entrepreneurial Life Is Just Starting
• Do You Know Which CEO Is the Richest?
• 16 Unusual Money Moves That Could Set You Up for Life
This article originally appeared onGOBankingRates.com:How This Blockchain Entrepreneur Landed Partnerships With Citi, Nasdaq and More |
3 Tips for Maxing Out Your 401(k)
Saving in a 401(k) is a great way to build a solid nest egg for retirement -- which you'll definitely need, since Social Security won't provide enough income for you to live onby itself. But many people with access to a 401(k) struggle to max out because the annual contribution limits are so high.
For 2019, workers under 50 can sock away up to $19,000 in a 401(k). Those 50 and older, meanwhile, can set aside up to $25,000. That's far more than this year's IRA contribution limits of $6,000 and $7,000, respectively.
Image source: Getty Images.
Still, maxing out a 401(k) could be your ticket to an extremely comfortable retirement. If you were to max out your 401(k) at today's limits between ages 35 and 65, you'd wind up with $1.95 million if your investments were to generate an average annual return of 7% during those 30 years, which is more than doable with a stock-heavy portfolio. As such, it pays to push yourself to max out, and you'll be more likely to hit that goal if you do the following things.
Many of us come into extra money during the year, whether it's a performance bonus at work, a tax refund, or even a cash gift. If you pledge to put any funds that fall into that category into your 401(k), you'll boost your contribution rate without having to worry about slashing expenses.
Unless you get areallygenerous bonus, gift, or tax refund, you'll need to work on spending less if you're looking to max out a 401(k). But if you're willing to make some sacrifices, you can increase your contributions to the point where you save enough for your dream retirement. Comb through yourbudgetand aim to cut back on smaller expenses, like your cable or cellphone bill. But if you're serious about maxing out a 401(k), you may need to think big -- likedownsizingto a smaller home that slashes your mortgage and property tax payments by $1,000 a month.
You can only cut back on so many expenses before seriously impacting your quality of life. If you're not willing or able to go on an all-out expense-slashing spree, but you're eager to max out your 401(k), try getting yourself a second job. If you do, you'll be in good company. Of the millions of Americans who currently hold down a side hustle,an estimated 14%do so for the express purpose of funding a retirement plan.
Imagine you're able to work a lucrative side gig that puts an extra $1,000 in your pocket every month. Assuming you're under 50, if you were to put that money right into your 401(k), you'd only have to come up with another $7,000 over the course of a year to max out. That's a far easier notion than cutting expenses to the tune of $19,000.
Even if you don't manage to max out your 401(k) every year, doing it even a few years over the course of your career could really help. Remember, too, that when you fund a traditional 401(k), the money you contribute is income the IRS can't tax you on. This means that if your tax rate is 24%, and you manage to stick $19,000 in a traditional 401(k), you'll save yourself $4,560 right off the bat. And that's reason enough to work your hardest to contribute the maximum amount you can to your 401(k).
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
The Motley Fool has adisclosure policy. |
Read This Before Buying CLP Holdings Limited (HKG:2) Shares
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sellCLP Holdings Limited(HKG:2), you may well want to know whether insiders have been buying or selling.
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
See our latest analysis for CLP Holdings
In the last twelve months, the biggest single sale by an insider was when the , Fan Chiu Fun Law, sold HK$463k worth of shares at a price of HK$92.50 per share. That means that an insider was selling shares at around the current price of HK$90.25. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. Fan Chiu Fun Law was the only individual insider to sell over the last year.
Fan Chiu Fun Law divested 10000 shares over the last 12 months at an average price of HK$92.25. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.08% of CLP Holdings shares, worth about HK$172m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
An insider hasn't bought CLP Holdings stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. Of course,the future is what matters most. So if you are interested in CLP Holdings, you should check out thisfreereport on analyst forecasts for the company.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.