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Does China High Speed Transmission Equipment Group Co., Ltd.'s (HKG:658) CEO Pay Compare Well With Peers?
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Jichun Hu has been the CEO of China High Speed Transmission Equipment Group Co., Ltd. (HKG:658) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for China High Speed Transmission Equipment Group
Our data indicates that China High Speed Transmission Equipment Group Co., Ltd. is worth HK$7.8b, and total annual CEO compensation is CN¥2.5m. (This is based on the year to December 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth CN¥2.4m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥2.8b to CN¥11b. The median total CEO compensation was CN¥3.1m.
That means Jichun Hu receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at China High Speed Transmission Equipment Group has changed over time.
On average over the last three years, China High Speed Transmission Equipment Group Co., Ltd. has shrunk earnings per share by 42% each year (measured with a line of best fit). It achieved revenue growth of 2.7% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to checkthis free visual report onanalyst forecastsfor future earnings.
Given the total loss of 12% over three years, many shareholders in China High Speed Transmission Equipment Group Co., Ltd. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Jichun Hu is paid around what is normal the leaders of comparable size companies.
After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Suffice it to say, we don't think the CEO is underpaid! CEO compensation is one thing, but it is also interesting tocheck if the CEO is buying or selling China High Speed Transmission Equipment Group (free visualization of insider trades).
If you want to buy a stock that is better than China High Speed Transmission Equipment Group, thisfreelist of high return, low debt companies is a great place to look.
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. |
REFILE-Australia's Lynas to continue stockpiling rare earth element despite price surge
(Corrects spelling of "preferred" in second paragraph)
June 21 (Reuters) - Lynas Corp on Friday said it was stockpiling production of its major rare earth element, Neodymium Praseodymium, despite a sharp increase in prices lately as rare earths find themselves in the middle of the U.S.-China trade war.
Lynas, the only major proven producer outside China of rare earths, said its decision will allow it to consolidate its position as a preferred supplier. (Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Stephen Coates) |
Crypto Rises; LINE’s Crypto Exchange to Win Approval
Investing.com – Major cryptocurrencies traded in the green on Friday morning in Asia, with Bitcoin surpassing $9,700.
Bitcoin rose 3.75% to $9,708.2 by 11:50 PM ET (03:50 AM GMT). Gaining the strongest momentum this year, the digital coin continues to rally this week to test $10,000.
Sharing the same momentum, Ethereum added 4.20% to $279.65, XRP edged up 0.69% to $0.43659, and Litecoin was up 0.45% to $137.72.
The total crypto market cap rose to $298.1 billion from $290 billion.
Japan’s messaging giant LINE is close to winning a regulatory approval to run its cryptocurrency exchange. With the approval, LINE could launch the platform called BitMax in a few weeks, where its 80 million users in Japan can trade crypto coins.
LINE is also waiting for a banking license in Japan, which would allow the messaging giant to create a crypto payment channel for users to shop online. The license is believed to come next year the soonest.
LINE’s crypto exchange in its home country followed the one in Singapore called BitBox, which was launched in July 2018.
The move by LINE and its U.S. peer Facebook (NASDAQ:FB) signifies a huge interest of social media companies in the crypto space. Facebook is launching its own cryptocurrency called Libra, which it claims to be a stablecoin.
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UPDATE 7-'I Love Thee, China': North Korea woos Xi in lavish state visit
* Xi is first Chinese president to visit N.Korea in 14 years
* Strong North Korea-China ties good for regional peace - KCNA
* Kim seeks China's support in face of stalled U.S. talks
* Xi thanks Kim for enthusiastic welcome
* Visit came ahead of Xi's meeting with Trump at G20 (Adds comments from Xi)
By Joyce Lee and Josh Smith
SEOUL, June 21 (Reuters) - North Korean leader Kim Jong Un and Chinese President Xi Jinping have agreed that strengthening bilateral ties, at a time of "serious and complicated" international affairs, is good for regional peace, North Korean state media said on Friday.
Xi left the North Korean capital, Pyongyang, on Friday after a two-day visit, the first by a Chinese leader in 14 years, during which he got a lavish reception that included thousands of people holding up placards that formed a picture of Xi's face and the Chinese flag, and a performance of the song "I Love Thee, China".
China is the North's only major ally and Xi's visit is aimed at bolstering the isolated country against pressure from U.N. sanctions over its nuclear and missile programmes and a breakdown in denuclearisation talks with the United States.
The visit comes a week before Xi and U.S. President Donald Trump are due to meet at a G20 summit in Japan amid a trade dispute that has rattled global financial markets.
Video and photographs released by North Korean state media showed Kim and Xi greeting each other warmly when Xi arrived at Pyongyang airport. They drove through the streets of the capital in an open-top limousine, and later attended a "Mass Games" propaganda show.
The show - titled "Invincible Socialism" - was specially prepared for Xi's visit and included songs such as "No New China without Communist Party" and "I Love Thee, China", the KCNA news agency said.
One sign in Chinese read: "Happy to see you Grandpa Xi".
A photo released by KCNA showed thousands of people holding placards to form a giant picture of Xi's face and the Chinese flag at a mass gymnastics and arts performance.
Other photographs showed Xi and Kim gazing at cheering children and sitting with their wives.
The North Korean ruling party's main newspaper, Rodong Sinmun, ran a special expanded edition on Friday, with eight of 10 pages devoted to photos and text about Xi's visit.
Xi and Kim on Friday visited the Friendship Tower, which commemorates Chinese troops who fought together with North Koreans during the 1950-53 Korean War, to pay their respects, Chinese state media said.
Xi thanked Kim for the enthusiastic welcome, China's Xinhua news agency said.
No matter what changes there were in the international situation, China would resolutely support North Korea's efforts to seek a political solution for the Korean peninsula issue and to achieve lasting stability, Xi added, largely reiterating comments from the previous day.
DECISIVE RELATIONSHIP
Kim said Xi's visit, which may see China offer fresh support for North Korea's floundering, sanctions-bound economy, was "decisive" to show their unchanging friendship to the world, KCNA said.
The two leaders had agreed to promote close strategic communication and strengthen cooperation in all fields, KCNA said.
Nevertheless, relations have been strained at times, particularly over North Korea's nuclear programme. (https://reut.rs/2KqPQbz)
China has publicly opposed North Korea's nuclear tests and has called for it to give up its nuclear weapons. China, as a member of the U.N Security Council, has also voted to impose a number of sanctions on North Korea.
Kim is also not a popular figure in China, where he is often derisively called "Fatty Kim", and some Chinese social media users expressed both dismay and amusement at the grand welcome laid on for Xi.
"This is the emperor's visit to its vassal state," wrote one person on the Weibo microblogging site.
In the South Korean capital, Seoul, a U.N. human rights expert said there were signs that China had been collaborating with North Korea to arrest more North Koreans escaping from their country.
Tomas Ojea Quintana, the U.N. special rapporteur for human rights in North Korea, called on China not to send the detainees back to North Korea because they could face torture.
On Thursday, Xi praised North Korea's efforts towards denuclearisation and said the world hoped North Korea and the United States could talk to each other and for their talks to be successful.
Since a failed summit between Trump and Kim in Vietnam in February, North Korea has conducted some weapons tests and warned of "truly undesired consequences" if the United States is not more flexible.
At a banquet on Thursday, Xi said China firmly supported Kim seeking a political solution to the Korean Peninsula issue and the establishment of a great environment for self-development via a "new strategic line", according to KCNA. (Reporting by Joyce Lee and Josh Smith, additional reporting by John Ruwitch in Shanghai and Ben Blanchard in Beijing; Editing Darren Schuettler, Robert Birsel) |
Two Chicago-area men convicted of providing support to Islamic State
By Brendan O'Brien June 20 (Reuters) - Two Chicago-area men were found guilty on Thursday of supporting Islamic State in a federal case in which one of them was accused of saying he hoped to see the jihadist group's flag over the White House, local media reported. Edward Schimenti and Joseph Jones, both 37, were convicted for providing material support and resources to terrorists in a jury trial in U.S. District Court in Chicago. Schimenti was also found guilty of lying to Federal Bureau of Investigation agents, the Chicago Sun Times reported. The men could face up to 20 years in prison when they are sentenced at a later date, according to the U.S. Attorney in the Northern District of Illinois. The men from Zion, Illinois, about 50 miles (80 km) north of Chicago, were accused of pledging allegiance to Islamic State and using social media to back violence in support of the militant group, according to court papers. Jones and Schimenti were also accused of discussing backing Islamic State with two undercover FBI employees and an informant and sharing photographs of themselves displaying the Islamic State flag at a state park, according to court documents. Schimenti told the informant he would like to see the flag "on top of the White House," according to a 77-page criminal complaint filed against the men. Attorneys for the men argued that they were entrapped by federal agents and what they wrote and talked about was protected by their constitutional right to free speech. "It was the government that created this entire case out of thin air," they wrote in a motion filed in court in 2018. The men's lawyers also wrote in court papers that an undercover agent asked Schimenti if he wanted to "rock it out," which he interpreted to be an invitation to commit a violent act. He refused, walked out of the meeting, and told Jones he never wanted to see those people again. The men were also accused of providing cellular phones to the informant, believing they would be used to set off explosives in Islamic State attacks, the complaint said. A week before they were arrested in April 2017, Jones and Schimenti drove the informant to Chicago's O'Hare International Airport, believing the informant would be flying to Syria to fight with Islamic State, according to court documents. (Reporting by Brendan O'Brien in Chicago; Editing by Richard Chang) View comments |
Are Insiders Buying Confidence Petroleum India Limited (NSE:CONFIPET) Stock?
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 inConfidence Petroleum India Limited(NSE:CONFIPET).
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a 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'.
See our latest analysis for Confidence Petroleum India
There wasn't any very large single transaction over the last year, but we can still observe some trading.
Over the last year, we can see that insiders have bought 107k shares worth ₹5.2m. Confidence Petroleum India may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Confidence Petroleum India 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.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that Confidence Petroleum India insiders own 29% of the company, worth about ₹2.9b. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
The fact that there have been no Confidence Petroleum India insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Confidence Petroleum India insiders think the business has merit.I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow for free.
If you would prefer 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. |
Bitcoin Price Races to a New Yearly High Placing $10,000 Within Eye-Shot
ByCCN Markets: Thebitcoin pricesurged to $9,500, marking a fresh 2019 high. As the stock market sets a new record, BTC is joining in the party.
Bitcoin has soared to a fresh high in 2019, rising above $9,500. | Source:TradingView
According to eToro Senior Analyst Mati Greenspan in a tweet, fundamentals are driving the bitcoin price higher. He cited institutional adoption, more monetary easing from central banks, and the upcoming bitcoin supply halving all as positives for BTC. Greenspan noted that pure momentum might also be driving BTC/USD to fresh yearly highs.
Read the full story on CCN.com. |
Action Construction Equipment Limited (NSE:ACE) Is An Attractive Dividend Stock - Here's Why
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Could Action Construction Equipment Limited (NSE:ACE) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.
Investors might not know much about Action Construction Equipment's dividend prospects, even though it has been paying dividends for the last nine years and offers a 0.5% yield. While the yield may not look too great, the relatively long payment history is interesting. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below.
Explore this interactive chart for our latest analysis on Action Construction Equipment!
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. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. Looking at the data, we can see that 10% of Action Construction Equipment's profits were paid out as dividends in the last 12 months. With a low payout ratio, it looks like the dividend is comprehensively covered by earnings.
Remember, you can always get a snapshot of Action Construction Equipment's latest financial position,by checking our visualisation of its financial health.
Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. The first recorded dividend for Action Construction Equipment, in the last decade, was nine years ago. It's good to see that Action Construction Equipment has been paying a dividend for a number of years. However, the dividend has been cut at least once in the past, and we're concerned that what has been cut once, could be cut again. During the past nine-year period, the first annual payment was ₹1.00 in 2010, compared to ₹0.50 last year. The dividend has shrunk at around 7.4% a year during that period. Action Construction Equipment's dividend hasn't shrunk linearly at 7.4% per annum, but the CAGR is a useful estimate of the historical rate of change.
When a company's per-share dividend falls we question if this reflects poorly on either the business or management. Either way, we find it hard to get excited about a company with a declining dividend.
Given that dividend payments have been shrinking like a glacier in a warming world, we need to check if there are some bright spots on the horizon. It's good to see Action Construction Equipment has been growing its earnings per share at 59% 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 Action Construction Equipment's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. It's great to see that Action Construction Equipment is paying out a low percentage of its earnings and cash flow. Next, earnings growth has been good, but unfortunately the dividend has been cut at least once in the past. Overall we think Action Construction Equipment scores well on our analysis. It's not quite perfect, but we'd definitely be keen to take a closer look.
You can also discover whether shareholders are aligned with insider interests bychecking our visualisation of insider shareholdings and trades in Action Construction Equipment stock.
If you are a dividend investor, you might also want to look at ourcurated list of dividend stocks yielding above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Investors Who Bought D. P. Abhushan (NSE:DPABHUSHAN) Shares A Year Ago Are Now Down 19%
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Passive investing in an index fund is a good way to ensure your own returns roughly match the overall market. When you buy individual stocks, you can make higher profits, but you also face the risk of under-performance. Investors inD. P. Abhushan Limited(NSE:DPABHUSHAN) have tasted that bitter downside in the last year, as the share price dropped 19%. That's well bellow the market return of 0.05%. D. P. Abhushan may have better days ahead, of course; we've only looked at a one year period. Unhappily, the share price slid 4.1% in the last week.
See our latest analysis for D. P. Abhushan
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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.
During the unfortunate twelve months during which the D. P. Abhushan share price fell, it actually saw its earnings per share (EPS) improve by 15%. Of course, the situation might betray previous over-optimism about growth. It's fair to say that the share price does not seem to be reflecting the EPS growth. But we might find some different metrics explain the share price movements better.
D. P. Abhushan's revenue is actually up 13% over the last year. Since we can't easily explain the share price movement based on these metrics, it might be worth considering how market sentiment has changed towards the stock.
You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).
Balance sheet strength is crucual. It might be well worthwhile taking a look at ourfreereport on how its financial position has changed over time.
While D. P. Abhushan shareholders are down 19% for the year, the market itself is up 0.05%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. The share price decline has continued throughout the most recent three months, down 2.9%, suggesting an absence of enthusiasm from investors. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. Before forming an opinion on D. P. Abhushan you might want to consider these3 valuation metrics.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss thisfreelist of companies that have proven they can grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on IN 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. |
NBA draft: Zion Williamson, mom get emotional after he went No. 1
Like the rest of the basketball world, Zion Williamson had zero doubt that he would be the first pick in Thursday’s NBA draft . But even with the forgone conclusion that he would realize his NBA dream, the reality of the culmination of his life’s work didn’t truly hit him until his named was called as the No. 1 pick by the New Orleans Pelicans. Zion, mom get emotional It made for an emotional moment for Williamson as his mother stood beside him for his post-pick interview. We're not crying, you're crying 😭 pic.twitter.com/Bec3BwomY5 — Yahoo Sports (@YahooSports) June 20, 2019 "I mean, I don't know what to say,” Williamson told ESPN. “I didn't think I would be in this position. My mom sacrificed a lot for me. I wouldn't be here without my mom. She did everything for me. I just want to thank her.” Williamson, now choking back tears, continued to talk about his mom. “She put her dreams aside for mine,” Williamson said. “She always looked out for family and friends before herself.” Even with the knowledge he'd be the top pick in the draft, the emotion of seeing his life's dream realized was an emotional moment for Zion Williamson. (Reuters) Tears flow Then the tears flowed for Williamson and his mother Sharonda Sampson. “When you know it’s coming but — you’ve just to got to wait for it to happen,” Sampson said. “And to wait for his hard work to pay off. We’re so happy for him. “I’ve seen somebody who believed in the process, who put in the work, who put those naysayers aside and just continued to do what we ask, and continued to believe in the process. Because of that, we’re here today.” Williamson then talked about the reality that sinks in when shaking the hand of commissioner Adam Silver. “Doesn’t even seen real until until I shook his hand. I dreamed about it since I was four. For it to actually happen, I just thank God for it.” More from Yahoo Sports: Report: Davis, Lillard to feature in ‘Space Jam 2’ Authorities: Ortiz wasn’t intended target of shooting How Celtics shockingly combusted so quickly |
Canopy Growth reports more than four-fold rise in fourth-quarter revenue
June 20 (Reuters) - Canadian pot producer Canopy Growth Corp reported a more than four-fold jump in quarterly revenue on Thursday, benefiting from higher sales following Canada's legalization of recreational cannabis.
Net revenue of Canada's biggest weed producer by market capitalization rose to C$94.1 million ($71.37 million) in the fourth quarter ended March 31, from C$22.8 million a year earlier.
($1 = 1.3185 Canadian dollars) (Reporting by Arundhati Sarkar and Ankit Ajmera in Bengaluru) |
What Should You Know About The Future Of SKF India Limited's (NSE:SKFINDIA)?
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Since SKF India Limited (NSE:SKFINDIA) released its earnings in March 2019, the consensus outlook from analysts appear somewhat bearish, with profits predicted to rise by 11% next year compared with the higher past 5-year average growth rate of 12%. Presently, with latest-twelve-month earnings at ₹3.4b, we should see this growing to ₹3.7b by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for SKF India in the longer term. Readers that are interested in understanding the company beyond these figures shouldresearch its fundamentals here.
Check out our latest analysis for SKF India
The longer term expectations from the 8 analysts of SKFINDIA is tilted towards the positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To get an idea of the overall earnings growth trend for SKFINDIA, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
This results in an annual growth rate of 12% based on the most recent earnings level of ₹3.4b to the final forecast of ₹4.9b by 2022. This leads to an EPS of ₹100 in the final year of projections relative to the current EPS of ₹65.7. Margins are currently sitting at 11%, approximately the same as previous years. With analysts forecasting revenue growth of 0.43038 and SKFINDIA's net income growth expected to roughly track that, this company may add value for shareholders over time.
Future outlook is only one aspect when you're building an investment case for a stock. For SKF India, there are three pertinent factors you should further research:
1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Valuation: What is SKF India worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether SKF India is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of SKF India? Exploreour interactive list of stocks with large growth potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Slack Ends First Day of Trading Worth $21 Billion. Now the Hard Work Begins
Investors, say hello to the biggest tiny speck in the world.
A decade ago, serial entrepreneur Stewart Butterfield co-founded startupTiny Speck,which made video games that ultimately failed to catch on. But instead of giving up, he refocused the company on a chat app that his small team had created to communicate among themselves.
On Thursday, shares in that business, renamed Slack Technologies, made an impressive public debut—closing at $38.62, 48% higher than the reference price set by the New York Stock Exchange on Wednesday. The company ended the day with a market value of $21 billion, or more than three times as much as retail giantGapInc.
Slack’s arrival on the New York Stock Exchange came through the unorthodox route of adirect listingrather than a conventional initial public offering. While many retail investors may not know the difference, Slack’s direct listing created uncertainty in the price at which it would start trading.
Instead of a definitive price recommended by Wall Street banks and approved by their corporate client, Slack had a reference price of $26 per share set by the NYSE. In the end, investors didn’t seem to care about the uncertainty.
Slack’s first-day pop is helping make Junethe strongest monthfor new tech stock offerings in some time. It also raises the pressure on the company to deliver continued growth and eventual profitability.
In that, said Michael Facemire, a vice president at market research firm Forrester, Slack faces some key challenges. One is to expand from its core tech industry clientele to more mainstream users. “They have to expand their reach to non-technical folks outside of the developer and the technologist crowd for them to grow their company to the extent they want,” he said.
While many Slack users praise its usefulness, especially compared to rival services, it’s difficult for those who haven’t used it to grasp its utility.
One way to expand its customer base is an old-fashioned one, Facemire said. “Some of it comes down to just good old enterprise sales. There’s a reason that companies likeIBMandMicrosoftandOracledo so well: They know how to sell into the enterprise,” he said.
Other analysts believe that Slack is gaining some momentum in this area. “The adoption of Slack within enterprises is proving as viral as WhatsApp amongst consumers,” Dimitri Kallianiotis, an Atlantic Equities stock analyst, said in a research note Wednesday. Slack has an opportunity to become “the main hub used to access all applications, as WeChat has done so successfully in China,” he said.
And a separate research note from G.P. Bullhound, an M&A advisory firm,saidSlack’s growing popularity could push its market cap to more than double to $50 billion by 2025. “Slack exhibits a rare combination of highly recurring revenue, very low churn, viral growth and extremely high engagement—taking the best of both worlds, enterprise and instant messengers.”
Another challenge is for Slack to continue making its service more useful. It’s designed to easily integrate other online services for corporations—fromGoogleDrive to Microsoft 365—essentially becoming the glue that can unite a fragmented world of business software.
And yet some of these companies, notably Microsoft and Google, are Slack’s key rivals in the corporate technology market. Both Microsoft and Google also happen to have much more gunpowder in the form of cash on hand.
By bypassing an IPO, Slack forfeited the opportunity to raise more cash for itself, at least immediately. It has $800 million of cash, versus Microsoft’s $97 billion and $72 billion for Alphabet, Google’s parent.
Of the 600,000 customers that use Slack, only 95,000 pay for it so that they can get the additional features that come with it. “It presents both a challenge and an opportunity,” Facemire said.
Many companies have several different groups of employees using Slack’s free version. To create a single login, access multiple third-party applications, and get greater control over storing Slack messages, companies may start paying for premium features.
In 2013, when Slack was still a new service, Butterfield, who had previously co-founded photo service Flickr, before selling it to Yahoo,describedit as a way to bring “all team communication into one place and make it searchable.” Today, it’s much more than that.
And Butterfield talks about it being amatter of timebefore the corporate email is obsolete. But email, sometimes called the Internet’s first killer-app, is more likely to evolve than die.
“Everybody is trying to be the email killer. We’ve heard this many times over the years,” said Facemire. “The reality is Slack isn’t so much an email killer as it is a reduction of very small, very transactional emails. It eliminates the painful emails that fill up inboxes and let’s us see the ones that provide value. The problem is that that whole long statement doesn’t make for good marketing.”
—Slack went publicwithout an IPO. Here’s how a direct offering works
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—Fintech startupTally has raised $50 millionto automate people’s finances
—Listen to our new audio briefing,Fortune500 Daily
FollowFortuneon Flipboardto stay up-to-date on the latest news and analysis. |
Canopy Growth fourth-quarter revenue beats as cannabis sales soar
(Reuters) - Pot producer Canopy Growth Corp reported better-than-expected quarterly revenue on Thursday, as efforts to strengthen its retail operations paid off and increased production capacity resulted in higher sales following Canada's legalization of recreational cannabis.
Marijuana companies in Canada have been pouring cash into their businesses to open stores and expand operations as the list of medical and recreational approvals for marijuana use globally grows.
Canopy Growth, the largest pot producer by market value, in April offered to buy Acreage Holdings Inc for $3.4 billion, betting on broader legalization in the United States. The deal was approved by shareholders on Wednesday.
Last month, Canopy Growth said it would buy skincare company This Works for C$73.8 million ($55.2 million), adding beauty and sleep products to the Canadian weed producer's portfolio of cannabis oil, hemp and medical capsules.
Canopy Growth said it sold 9,326 kg (20,560 lbs) and kg equivalent of cannabis in the fourth quarter ended March 31, up from 2,528 kg and kg equivalents sold in the year-ago period.
Net revenue of Canada's biggest weed producer by market capitalization rose 312% to C$94.1 million ($71.37 million) in the quarter, from C$22.8 million a year earlier.
Analysts on average had expected Canopy Growth to report revenue of C$92.6 million, according to IBES data from Refinitiv.
Canopy Growth said it expects the Acreage deal to close on June 27, with the company recording a non-cash charge that will have a materially negative impact on its net income in the first quarter of fiscal 2020.
(Reporting by Arundhati Sarkar and Ankit Ajmera in Bengaluru) |
Is Balmer Lawrie & Co. Ltd.'s (NSE:BALMLAWRIE) 11% ROE Better Than Average?
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While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. We'll use ROE to examine Balmer Lawrie & Co. Ltd. (NSE:BALMLAWRIE), by way of a worked example.
Our data showsBalmer Lawrie has a return on equity of 11%for the last year. Another way to think of that is that for every ₹1 worth of equity in the company, it was able to earn ₹0.11.
See our latest analysis for Balmer Lawrie
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Balmer Lawrie:
11% = ₹1.6b ÷ ₹15b (Based on the trailing twelve months to March 2019.)
Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. It is all earnings retained by the company, plus any capital paid in by shareholders. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets.
Return on Equity measures a company's profitability against the profit it has kept for the business (plus any capital injections). The 'return' is the amount earned after tax over the last twelve months. A higher profit will lead to a higher ROE. So, all else being equal,a high ROE is better than a low one. Clearly, then, one can use ROE to compare different companies.
By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. The image below shows that Balmer Lawrie has an ROE that is roughly in line with the Industrials industry average (11%).
That's neither particularly good, nor bad. ROE tells us about the quality of the business, but it does not give us much of an idea if the share price is cheap. If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Companies usually need to invest money to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. That will make the ROE look better than if no debt was used.
While Balmer Lawrie does have a tiny amount of debt, with debt to equity of just 0.0099, we think the use of debt is very modest. Although the ROE isn't overly impressive, the debt load is modest, suggesting the business has potential. Judicious use of debt to improve returns can certainly be a good thing, although it does elevate risk slightly and reduce future optionality.
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. You can see how the company has grow in the past by looking at this FREEdetailed graphof past earnings, revenue and cash flow.
If you would prefer 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Here's Why We Think Bhageria Industries (NSE:BHAGIL) Is Well Worth Watching
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For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit. But as Warren Buffett has mused, 'If you've been playing poker for half an hour and you still don't know who the patsy is, you're the patsy.' When they buy such story stocks, investors are all too often the patsy.
If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested inBhageria Industries(NSE:BHAGIL). Now, I'm not saying that the stock is necessarily undervalued today; but I can't shake an appreciation for the profitability of the business itself. While a well funded company may sustain losses for years, unless its owners have an endless appetite for subsidizing the customer, it will need to generate a profit eventually, or else breathe its last breath.
Check out our latest analysis for Bhageria Industries
If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow. That makes EPS growth an attractive quality for any company. I, for one, am blown away by the fact that Bhageria Industries has grown EPS by 50% per year, over the last three years. Growth that fast may well be fleeting, but like a lotus blooming from a murky pond, it sparks joy for the wary stock pickers.
One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. The good news is that Bhageria Industries is growing revenues, and EBIT margins improved by 7 percentage points to 22%, over the last year. Ticking those two boxes is a good sign of growth, in my book.
You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image.
Since Bhageria Industries is no giant, with a market capitalization of ₹5.4b, so you shoulddefinitely check its cash and debtbeforegetting too excited about its prospects.
Like the kids in the streets standing up for their beliefs, insider share purchases give me reason to believe in a brighter future. That's because insider buying often indicates that those closest to the company have confidence that the share price will perform well. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions.
Not only did Bhageria Industries insiders refrain from selling stock during the year, but they also spent ₹4.4m buying it. That puts the company in a nice light, as it makes me think its leaders are feeling confident. Zooming in, we can see that the biggest insider purchase was by Indu Agarwal for ₹1.5m worth of shares, at about ₹294 per share.
On top of the insider buying, we can also see that Bhageria Industries insiders own a large chunk of the company. Actually, with 45% of the company to their names, insiders are profoundly invested in the business. I'm reassured by this kind of alignment, as it suggests the business will be run for the benefit of shareholders. With that sort of holding, insiders have about ₹2.4b riding on the stock, at current prices. That should be more than enough to keep them focussed on creating shareholder value!
While insiders already own a significant amount of shares, and they have been buying more, the good news for ordinary shareholders does not stop there. The cherry on top is that the CEO, Vinodkumar Bhageria is paid comparatively modestly to CEOs at similar sized companies. For companies with market capitalizations under ₹14b, like Bhageria Industries, the median CEO pay is around ₹1.3m.
The Bhageria Industries CEO received total compensation of only ₹1.1m in the year to March 2018. You could consider this pay as somewhat symbolic, which suggests the CEO does not need a lot of compensation to stay motivated. CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders. I'd also argue reasonable pay levels attest to good decision making more generally.
Bhageria Industries's earnings per share growth has been so hot recently that thinking about it is making me blush. The company can also boast of insider buying, and reasonable remuneration for the CEO. The strong EPS growth suggests Bhageria Industries may be at an inflection point. If so, then it the potential for further gains probably merit a spot on your watchlist. Of course, just because Bhageria Industries is growing does not mean it is undervalued. If you're wondering about the valuation, check outthis gauge of its price-to-earnings ratio, as compared to its industry.
The good news is that Bhageria Industries is not the only growth stock with insider buying. Here'sa a list of them... with insider buying in the last three months!
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Batman, Julia Roberts, Spike Lee Among 2020 Walk of Fame Honorees
Batman , Julia Roberts and Spike Lee are among the names selected to be inducted into the 2020 Walk of Fame. The full list of honorees was announced by the Hollywood Chamber of Commerce’s Walk of Fame Selection Committee via an exclusive livestream by Variety . Chosen from hundreds of nominees during a selection meeting in June, the newest inductees cut a swath though every lane of the entertainment industry, including television, live theater, radio and film. Related stories Chadwick Boseman: Why There Would be No 'Black Panther' Without Denzel Washington Julia Roberts and Patricia Arquette on Thriving in Hollywood as 'Rad 51-Year-Old' Women Variety, PBS SoCal Announce Lineup for Season 10 of 'Variety Studio: Actors on Actors' Two-time Academy Award winner Mahershala Ali, who accepted an award at this year’s Oscars for his supporting role in “Green Book,” will be honored in the motion pictures category alongside other bold-faced names such as Lee, Roberts, Chris Hemsworth and Octavia Spencer. Even the DC superhero Batman will be receiving his own star next year. In the television category, talk-show hosts Andy Cohen and Wendy Williams will also be honored with stars on the iconic L.A street, alongside “Married With Children” star Christina Applegate and Terry Crews (“Brooklyn Nine-Nine”). On the music side, Curtis “50 Cent” Jackson’s name will be added to the Walk of Fame along with other famous performers such as Alicia Keys , Billy Idol and Tanya Tucker. Tony-winning performer Billy Porter, who now stars in Ryan Murphy’s FX series “Pose,” will also be honored for his work on stage, alongside comedian Dave Chappelle. In a statement, selection committee chair and Walk of Famer Vin Di Bona said, “This year’s choices were particularly unique. We were able to recognize the talents of 35 artists who have already built a legacy here in Hollywood. Also, we were able to celebrate many new talented artists who’ve touched our hearts in film, television, radio and a variety of musical categories.” The Hollywood Chamber of Commerce also announced posthumous honors, including Andy Kaufman and Muddy Waters. Sign up for Variety’s Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram . |
Bitcoin Price Breaches $9.6K to Hit 400-Day High
Bitcoin’s price has set another new high for 2019, reaching $9,599 before retracing slightly to end Thursday’s trading.
At 18:00 UTC on June 20, the world’s largest cryptocurrency by market capitalization broke upwards on the daily chart, after being held beneath $9,348 for an extended period of time.
The move to fresh 2019 highs comes after the bitcoin price dropped to as low as $8,919 on June 18 before a surge of buying pressure pushed prices back above $9,000 within the same day.
Related:Bitcoin Price Eyes $10K After Erasing 40% of Bear Market Drop
Since then the bitcoin price has again jumped by 4 percent, rising above $9,400 around 18:28 UTC on Thursday night and then reaching over $9,500 an hour and a half later. It’s currently changing hands at $9525 as per CoinDesk’s price data.
The rally was also accompanied by a large uptick in the 24-hour trading volume, an increase of $9 billion was added overall, according to data from CoinMarketCap.
However, its “Real 10” volume – a metric that takes into account trading volume from exchanges reporting honest volume figures as identified in a report by Bitwise Asset Management – currently stands at $2.29 billion, a large difference, according to Messari.io.
Related:At-Home Crypto Miner Coinmine Now Pays Out Bitcoin
Meanwhile, the rest of the market remains relatively flat today, with only a few of the major names posting gains. Monero (XMR) and Binance Coin (BNB) are the only two in the green within the top 20 at CoinMarketCap and are both posting 4 percent growth over a 24-hour period.
What’s more, the total market capitalization has risen to a high of $292.1 billion its highest point since July 31, 2018 while the market capitalization for altcoins remains relatively unchanged, down $100 million, so it would appear BTC remains king and the altcoins will have to await their season a little longer.
Eyes are now firmly set on bitcoin’s new target at $9,650 resistance, last seen 13 months ago on April 30, 2018, pointing toward a very strong upward move beyond the $10,000 psychological price tag.
Disclosure:The author holds no cryptocurrency at the time of writing.Bitcoin imageviaShutterstock
• Lightning Labs Mobile App Gets 2,000 Downloads in 24 Hours
• Bitcoin Price Rally Stalls as Open Futures Hit Record Highs |
Korn Ferry (KFY) Q4 2019 Earnings Call Transcript
Image source: The Motley Fool.
Korn Ferry(NYSE: KFY)Q4 2019 Earnings CallJun 20, 2019,4:30 p.m. ET
• Prepared Remarks
• Questions and Answers
• Call Participants
Operator
Ladies and gentlemen, thank you for standing by, and welcome to the Korn Ferry Fourth Quarter Fiscal Year 2019 Conference Call. At this time, all participants are in a listen-only mode. Following the prepared remarks, we will conduct a question-and-answer session. And, as a reminder, this conference call is being recorded for replay purposes. We have also made available, in the Investor Relations section of our website at kornferry.com, a copy of the financial presentation that we will be reviewing with you today.
Before I turn the call over to our host, Mr. Gary Burnison, let me first read a cautionary statement to investors. Certain statements made in the call today, such as those relating to future performance, plans and goals constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although the company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, investors are cautioned not to place undue reliance on such statements. Actual results in future periods may differ materially from those currently expected or desired, because of a number of risks and uncertainties which are beyond the company's control. Additional information concerning such risks and uncertainties can be found in the release relating to this presentation and in the periodic reports filed by the company with the SEC, including the company's quarterly report for quarter ended January 31, 2019 and the company's soon to be filed annual report for fiscal year 2019.
Also, some of the comments today may reference such non-GAAP financial measures such as constant currency amounts, EBITDA and adjusted EBITDA. Additional information concerning these measures, including reconciliations to the most directly comparable GAAP financial measure, is contained in the financial presentation and earnings release related to this call, both of which are posted in the Investor Relations section of the company's website at www.kornferry.com.
With that, I will turn the call over to Mr. Burnison. Please go ahead, Mr. Burnison.
Gary Burnison--Chief Executive Officer
Okay. Thank you, everybody. Thanks for joining us. On April 30th, we finished another very good year. We hit the new milestones. The top line was up 12%, constant currency 9%. The actual adjusted EBITDA margin was 16%. We continue to grow our marquee account program, that now represents 20% of the portfolio. We return capital to shareholders. And, most importantly, we maintained our leading industry position in search.
RPO and Professional Search grew double digits for the fifth consecutive year. I mean that's pretty amazing, five consecutive years double-digit. And Advisory grew at 8% constant currency.
We had a very good fourth quarter. RPO is up 25% constant currency, Advisory was up 5%; overall, as a company, we were up 8%, top line was up 8% constant currency. Profitability was strong. EPS $0.88 and adjusted EBITDA margin of 16.7%.
And as I think about Korn Ferry today, I'm excited about what the future holds. I think, we're really just at the beginning. But I think we are the only organizational consultancy that helps companies look at talent and strategy together. We help companies make sure they have the right people in the right places providing them the right rewards and we bring their strategies to life by redesigning their org structures, helping -- motivate, inspire people, helping them hire the best and hang on to the best. And, today, the right reality is, we're more than talent acquisition, we're more than leadership development, we're more than organizational strategy advisors. We purposefully enabled people and organizations to exceed their potential.
And the firm is substantially different today. This is not a hyper-cyclical binge and bust firm, we're now a company for all seasons focused on the long game with our clients, whether that's M&A or going global or some other transformative play, we can help organizations through our five integrated solutions.
First, organizational strategy. That is about 10% of the company. That was the best grower in our Advisory business in the quarter. It was up about 7% or 8% constant currency. Assessment in succession is our second solution area, that represents about 13% of our revenue. We've assessed, believe it or not, almost 70 million people in our history. Third is leadership development, that's about 9% of our company. Every year, we develop 1.2 million executives around the world. For the year, the leadership development business was up about 13% constant currency. The fourth piece is compensation and rewards. We have comp data on 25 million people around the world, 20,000 companies, and our rewards business is about 10% of Korn Ferry. And finally is our flagship talent acquisition offerings where we put somebody in a job every three minutes.
Going forward, our strategy remains anchored on our five strategic pillars. Number one is our go-to-market strategy. And there it starts with our marquee accounts and now what we've added is regional accounts. These are companies where we have greater access and organizational coverage and a strong opportunity for impact. As I said, the marquee account program represented about 20% of the company in this last fiscal year and the growth rate was actually not quite twice but about 70%, I mean 1.7x of the rest of the portfolio. And as I indicated, we're expanding this now to a couple of hundred more regional accounts that I'm excited about.
Second is IP and innovation. What we do with our -- with the IP that we've developed over the years? KF Advance is one of those, where we now have 70,000 members. I think, we could be the world's gymnasium for people's careers.
Third, we have to continue to extend our brand. We have to make the brand more elastic. Yesterday, we announced a partnership with the PGA tour. We're now the umbrella sponsor of the Korn Ferry tour, which develops and advances the next generation of golfers and it's the primary pathway to getting a PGA Tour Card. And that's what Korn Ferry is all about. And if I think about our purpose, about enabling people and organizations to exceed your potential, it may sound strange exceeding your potential, but you don't know your potential until you're (technical difficulty) an opportunity, until you're given an abundance of opportunity. And that applies whether you're coming out of college or in the boardroom. That's what this company is all about and that's what I'm so excited about the Korn Ferry tour, because it represents promotion, it represents advancement. And so, we plan on using this not just as a sponsorship of a sporting event, but we are going to use it to actually tell our story about who we really are and our purpose about providing opportunity for people, for helping people be more than.
Fourth is the -- it's been a pillar of our strategy, M&A. We continue to look at ways that we can be the sole consultancy that's focused on talent and strategy together.
Fifth is our own people and our colleagues. We have to continue to develop talent. 64% of our company today is millennial, 63% are female almost 70% are outside the United States. We're rolling out a brand new global mentoring program that I'm passionate about, but we have to continue to keep that top of mind. So when we've come away -- come a long way on our journey, but I think there's significant opportunity ahead.
So, with that, I'm joined here with Bob Rozek and Gregg Kvochak, and I guess I'll turn it over to you Bob, first.
Robert Rozek--Executive Vice President, Chief Financial Officer and Chief Corporate Officer
Great. Thanks, Gary; and good afternoon, everyone. Our results for the fourth quarter and the full fiscal year continue to demonstrate the power of our business model and the growing impact our integrated solutions have and driving critical business outcomes for our clients even in challenging operating environments. As the global geopolitical and economic uncertainty continues to escalate, demand for our leading organizational Advisory solutions has remained steady and our financial results, as Gary just went through, continue to improve.
For the full year of FY19, our financial results reached company and industry highs with record levels of revenue, earnings and profitability. Fee revenue moved to $1,926 million, which was up 12% year-over-year measured at constant currency. Adjusted EBITDA with $311 million, which was up $33 million or 12% year-over-year. And our full year adjusted EBITDA margin grew to 16.1%. And, finally, in FY19, our adjusted fully diluted earnings per share grew $0.60 or 22% year-over-year to a record $3.31.
Now turning to our most recently completed quarter. Fee revenue in the fourth quarter grew to $491 million, which was up nearly 8% measured at constant currency. As in recent quarters, growth in the fourth quarter was broad-based with each of our operating segments improving. Exec Search grew 3%, Advisory grew 5%, and RPO and Pro Search grew 25%, on year-over-year all measured at constant currency. In addition, in the fourth quarter, earnings growth continued to be strong. Adjusted EBITDA in the fourth quarter grew to $82.2 million, which is a year-over-year improvement of $6.6 million or 9%, while our adjusted EBITDA margin improved 80 basis points year-over-year to 16.7%.
Now turning to new business trends, Globally, Executive Search new business in the fourth quarter was approximately $200 million and that was up 4% year-over-year, driven by growth in North America, Europe and Asia Pac. New business in the fourth quarter for Advisory was $219 million, up approximately 2% measured at constant currency.
And, finally, in the fourth quarter, RPO and Professional Search achieved another strong quarter of new business with total awards of $84 million, which includes about $50 million of long-term recruitment outsourced contracts. The $50 million of RPO awards consist of about $6 million in what we would call expansions and renewals and those are with existing clients and approximately $44 million of new client contracts.
At the end of the fourth quarter, total cash and marketable securities were $767 million, up approximately $109 million compared to the fourth quarter of fiscal '18. Excluding amounts reserved for deferred comp and accrued bonuses, our investable cash balance at the end of the fourth quarter was approximately $382 million and adds up about $70 million year-over-year. We ended the year with outstanding debt of about $223 million. And, finally, adjusted diluted earnings per share were $0.88 in the fourth quarter, that's up $0.08 or 10% compared to the prior year fiscal fourth quarter.
I'll now turn the call over to Gregg to review our operating segments in more detail.
Gregg Kvochak--Senior Vice President, Investor Relations
Okay. Thanks, Bob. Growth continued for Executive Search segment in the fourth quarter as global fee revenue reached $190.9 million compared to year-over-year and measured at constant currency global Executive Search fee revenue grew $6.5 million or 3.4% in the fourth quarter.
At constant currency, each of our Executive Search regions grew in the fourth quarter. North America was up 1.7%, Europe was up 7.2%. Asia Pac was up 4.6%, and Latin America was up 2%.
By Executive Search specialty practice, growth in the fourth quarter was mix. Compared to the fourth quarter a year ago at actual exchange rates, our technology practice grew 17%, our industrial practice grew 7%, our financial services practice grew 6%, our life sciences and healthcare practice was up 1%, and our consumers' goods practice was down 11%.
The total number of dedicated Executive Search consultants worldwide at the end of the fourth quarter was 565, it was up 24 year-over-year and up 13, sequentially. Annualized fee revenue production per consultant in the fourth quarter was $1.37 million and the number of new search assignments opened worldwide in the fourth quarter was 1,717, which is up approximately 8% year-over-year.
Adjusted EBITDA for Executive Search in the fourth quarter was $49.7 million, up $1 million or 2% year-over-year. The consolidated adjusted EBITDA margin for Executive Search in the fourth quarter of fiscal '19 was 26% compared to 25.5% in the fourth quarter of fiscal '18.
For all of fiscal '19, Executive Search achieved a record high $775 million of fee revenue, which was up 11.4% year-over-year measured at constant currency with strong growth in every region. All of our Executive Search specialty practices grew in fiscal '19 led by technology and financial services, which were up 23% and 14%, respectively.
Additionally, adjusted EBITDA for Executive Search in fiscal '19 was $193.8 million, which was up $34.5 million or 21.7%. The adjusted EBITDA margin of fiscal '19 for Executive Search was 25% compared to 22.5% for fiscal '18.
Now turning to Advisory, where the fourth quarter fee revenue measured year-over-year at constant currency grew 4.8% to $207.1 million. Growth was driven by strength in both the Europe and Asia Pacific regions, which were up at constant currency by 9% and 10%, respectively. As previously mentioned, new business awards for Advisory were steady in the fourth quarter, up approximately 2% year-over-year measured at constant currency.
In the fourth quarter, adjusted EBITDA for Advisory was $38.9 million with an 18.8% margin, both essentially flat year-over-year.
For the full year of fiscal '19, Advisory fee revenue grew to $821 million, which was up $60.8 million or 8% year-over-year measured at constant currency. Adjusted EBITDA for Advisory for fiscal '19 was $151 million, which was up $7.5 million or 5.2% year-over-year. The adjusted EBITDA margin in fiscal '19 for Advisory was 18.4% compared to 18.3% in fiscal '18.
Finally, turning to RPO and Professional Search, where growth in the fourth quarter continued at a high double-digit phase. In the fourth quarter, RPO and Professional Search generated a record high $92.8 million of fee revenue, which was up 25.3% year-over-year at constant currency. All geographic regions grew at a double-digit pace in the fourth quarter with North America up 28%, Europe up 21% and Asia Pacific up 22%. As previously mentioned, in the fourth quarter, RPO and Professional Search was awarded another $84 million of global new business consisting of $50 million of longer term recruitment outsourcing contracts and $34 million of shorter term Professional Search assignments.
Earnings and profitability were also up sharply for RPO and Professional Search in the fourth quarter. EBITDA grew to $15.6 million, up $3.1 million or 25% year-over-year, and EBITDA margin improved to 16.9%.
For the full year of fiscal '19, RPO and Professional Search fee revenue grew to $330 million, which was up $65.7 million or 24% measured at constant currency. Similarly, EBITDA for RPO and Professional Search grew to $54.4 million, a year-over-year improvement of $11.8 million or nearly 28%. EBITDA margin for all of fiscal '19 for RPO and Professional Search was 16.5% compared to 15.6% for fiscal '18.
Now, I'll turn the call back over to Bob to discuss our outlook for the first quarter of fiscal '20.
Robert Rozek--Executive Vice President, Chief Financial Officer and Chief Corporate Officer
Great. Thanks, Gregg. As we exited fiscal '19 and we're entering fiscal '20, our monthly new business trends have been choppy as global economic issues and geopolitical concerns have escalated. Globally, for Executive Search, new business awards in April were up nearly 5% year-over-year, but up only approximately 1% year-over-year in May. If monthly new business trends continue, we expect year-over-year growth in Exec Search new business awards to remain essentially flat in June and July.
For Advisory, new business in the first quarter is typically down sequentially from the fourth quarter. Similar to Exec Search, Advisory had a good month of new business in April, up nearly 5% year-over-year, but May was soft or down approximately 7%.
For Professional Search, new business measured year-over-year for May was up approximately 4% in constant currency. For RPO, both business under contract and the pipeline of potential new business opportunities remains strong and we expect accelerated growth to continue in the first quarter. Considering these factors and assuming worldwide economic conditions, financial markets and foreign exchange rates remain steady. We expect our consolidated fee revenue in the first quarter of fiscal '20 to range from $466 million to $486 million, and we expect our consolidated good (technical difficulty) earnings per share to range from $0.73 to $0.81.
So, with that, Gary, anything you want to add before we go to questions?
Gary Burnison--Chief Executive Officer
I would just -- I'd reemphasize that for any CEO or for any Board, talent without strategy is helpless; strategy without talent is hopeless. I mean, it really does come down to those two elements and how you synchronize strategy and talent to drive superior performance. And I think that this is the company that we're building. We have to continue to move our firm toward a more solutions and industry orientation, which we're going to do. But I think the opportunity is truly ours for the taking. As we continue to extend the brand and the partnership with the PGA Tour, I think it's going to pay off for us in telling our story and as we continue to broaden our solutions.
So, now, I think, with that, we'll turn it over to the operator and love to have your questions.
Operator
(Operator Instructions) Our first question is from Tobey Sommer at SunTrust. Please go ahead.
Tobey Sommer--SunTrust Robinson Humphrey, Inc. -- Analyst
Thanks. I was wondering, if you could talk to us about what you're hearing from clients across your businesses frankly given the more choppy and kind of mixed economic data in outlook now for rate cuts? Thanks.
Gary Burnison--Chief Executive Officer
I think, it's -- two earnings calls ago we laid out what we thought the economic climate would be and I think we've turned out to be more right than wrong. There clearly I think US GDP growth is going to be substantially less this quarter than last quarter. Clearly, the trade skirmish has impacted the business in China. And it's also impacted our industrial search business in the United States, that's not coincidental. There's tremendous decoupling of supply chains in China. And so, I would describe the environment as sluggish as evidenced by Central Banks around the world debating on whether they would cut rates, which undoubtedly they will, toward the end of this calendar year, which should be the right thing to do. And that's what we're seeing and I think that's pretty good generalization.
Robert Rozek--Executive Vice President, Chief Financial Officer and Chief Corporate Officer
Yeah. Toby, this is Bob. The only other thing I would add to that is, as we prepare for Board Meeting last week in this call today, we talked about folks in the field and the level of business interaction with our clients remains high. People are just taking longer to agree and sign an engagement with us, which I think we're seeing -- we're not doing what we're seeing, I think other firms are experiencing the same phenomena.
Tobey Sommer--SunTrust Robinson Humphrey, Inc. -- Analyst
Thank you for that context. And how do you approach your internal headcount growth across the businesses in this environment? It looks like Advisory up year-over-year after a few quarters of being down, and now in search I think close to mid-single digit, so how do you think about that and manage that going forward?
Gary Burnison--Chief Executive Officer
We are going to continue to promote from within and we will have a whole slew of promotions that will happen this quarter that we're currently in. So we'll continue to do that. Secondly, we are very aggressively looking for account leaders that could be from within the company or from outside. So, we'll continue to aggressively recruit there.
Three is people that have organizational consulting, strategy capabilities, we're very aggressive in the market recruiting. And we are, obviously, always interested in fee earners. We're going to continue to do that. In the Professional Search area, we have a high focus on technical skills. Recruiters that are recruiting in the technology area, the digital area, so we're going all out there. So those would be kind of the front line and what you would -- I think what you're going to see is that, below that we will moderate the headcount growth.
Tobey Sommer--SunTrust Robinson Humphrey, Inc. -- Analyst
Okay. Thank you. And I'll ask one more question and get back in the queue. Could you talk about how you're seeing the maturation of the company's ability to grow its product sales and those elements of your business licenses, et cetera, related to the IP at a faster rate than the company as a whole? Thanks.
Gary Burnison--Chief Executive Officer
Yeah. We haven't yet. We've made two adjustments that I think is going to get at that. The one is that there is a piece of the IP that deals with engagement. And we have entered into -- on March 6th, and actually so a few months ago. We entered into a partnership with Qualtrics SAP, kind of joint go-to-market and using their technology on that engagement business. Since we've done that, our win rate has gone up dramatically. And so, we saw some leakage in the year on that part of the business, so we teamed up with a real technology player to scale that business.
And then, secondly, is on the assessment side, we're making some changes there to be able to scale that with multi-thousand employee companies. We've got to increase our abilities there. So those are the two things within the product business and obviously continuing to incorporate the entire IP. So compensation, development, assessment is an integrated licensing offering.
Tobey Sommer--SunTrust Robinson Humphrey, Inc. -- Analyst
Thank you.
Operator
Next question is from Kevin McVeigh at Credit Suisse. Please go ahead.
Kevin Damien McVeigh--Credit Suisse AG -- Analyst
Great. Thank you. Hey, Gary, you talked about, kind of, I think about having 20% of the revenue in the key account program. How does the margins kind of sit with those folks as opposed to the core business overall?
Gary Burnison--Chief Executive Officer
Well, the margins, we think, are better, because you don't have the customer acquisition costs. And what you'll find is that many of those clients, well, first of all, almost all of them use all lines of business cases. So they're truly integrated clients, where we're having a real impact on the company. So, that's number one.
Secondly, many of them would involve either some sort of RPO or project-based work that over time will have very, very good margins and you don't have the selling cost. So, we think that when you look at any world class professional services organization, what you're going to find is 35% to 40% of the portfolio is proactively determined. So, in other words, loyal enduring clients of scale, where you're putting tens of people, a multidisciplinary team against a client from all lines of business. And what it really does, it provides a more stable house over time, but it also shows to the organization what the vision looks like actualized. So we are very happy with where we are with the marquee accounts. We've got to -- again, we've got to do more. So you've got that representing about 20% of the portfolio. This last year it grew 19% constant currency, the company for the year grew 12%, so it beat the portfolio. There's a fair amounting of outsourcing in those clients.
What we're doing right now is, now, we're rolling that out to another 200 clients that we're calling regional accounts. And that's obviously not a one quarter exercise and that's why we're aggressively in the market or promoting from within account leaders.
Kevin Damien McVeigh--Credit Suisse AG -- Analyst
And then, Gary or Bob, couple of -- I just wonder for your thoughts around kind of the current environment. Does it feel like we're going to another recession here given the uncertainty or just any thoughts around that? And then given the uncertainty, can you frame out a little bit of the guidance in terms of how we should think about it geographically and then across kind of search versus in future step.
Gary Burnison--Chief Executive Officer
Yeah. Let me take. First of all, we're not predictors and that would be very dangerous. We only guide on (multiple speakers)
Kevin Damien McVeigh--Credit Suisse AG -- Analyst
Listen, I can't barely do my job, Gary. I'm not asking you to predict, just more of, I guess (multiple speakers)
Gary Burnison--Chief Executive Officer
Yeah. This is not my first rodeo. So I -- there has been numerous times over the course of my career here. I think of a couple of head and shoulder fakes, there was one around Brexit, there was one around the Presidential Election, there was one around the Greek debt crisis in '11. And so, the real question is, are you facing a cliff or is this a head and shoulder fake.
I do believe that banks are going to be much more accommodative. We said that two calls ago. I really do believe it. And so, I -- in the next quarter, where, obviously, I think our guidance reflects head and shoulder. I think some of our operational decisions, we're being more conservative on headcount below the fee earner, below the consultant, and we obviously want to play it a little bit safer. But I would also say one other thing, and that is the company today is substantially different than -- I'd even go back to the last crisis, which was severe, deep, really bad.
The company, at that point -- revenue fell almost 50%. We've done a lot of modeling. And if that deep kind of recession happened today, you'd find that the top line would probably go down 28%, 30%. So substantially different, because we have a product business, we have a consulting business, we have an RPO business that has more scale, so I would say that number one.
And, secondly, I don't think even if you were going to take a doomsday, you would pencil in that kind of 50% decline to begin with. Remember, at the trough 10 years ago, this company went down to $100 million in revenue a quarter. We just came off a quarter of almost $500 million. So this is a different car today, no question about it.
In terms of the guidance for the quarter, our -- and I'll let Bob talk about the big picture, but our guidance assumes that we're going to see China search down, then we're going to see some softening in the UK, and then we're going to see RPO continue to have like a really, really good quarter.
Robert Rozek--Executive Vice President, Chief Financial Officer and Chief Corporate Officer
Yeah. I would -- just -- maybe elaborate, Kevin, a little. Further, when you think about the issues out in the -- the macro issues out in the world today with the trade wars and Brexit and so on, now as we looked at the guidance, obviously, we had the month of May under our belts and we're really feeling a bit more of the pinch in those geographies where the issues manifest themselves. So Gary's point China, the guidance reflects some downward pressure there, UK, a little bit in Germany and so on. So it's the places where you would expect there to be the downward pressures, where we provide for those in our guidance.
Kevin Damien McVeigh--Credit Suisse AG -- Analyst
It's super helpful. So if I -- just quick recap, it sounds like the guidance is a bit of a head fake, Gary, but operationally maybe a little bit more, not necessarily a recession, but a little bit more than a head fake in terms of the way you start to manage a business.
Gary Burnison--Chief Executive Officer
Yes, absolutely. You just have to be -- you've got to have eyes wide open, right, because none of us have the crystal ball. And so, we're going to go after the strategic errors, where I said, for sure, that grow the top line. We're going to be much more conservative below that.
Kevin Damien McVeigh--Credit Suisse AG -- Analyst
Awesome. Thank you, all.
Operator
Next question is from George Tong at Goldman Sachs. Please go ahead.
George Tong--Goldman Sachs Group Inc. -- Analyst
Hi, thanks. Good afternoon. On a constant currency basis, Advisory revenue growth decelerated a bit to 5% in fiscal 4Q from 6% in fiscal 3Q. Can you discuss if there were any unusual or one-time items contributing to the slowdown? And factors that could drive a reacceleration in the coming quarters?
Gary Burnison--Chief Executive Officer
Well, you were talking -- are you -- were you talking sequentially, George?
George Tong--Goldman Sachs Group Inc. -- Analyst
Year-over-year growth?
Gary Burnison--Chief Executive Officer
Yeah. In the fourth quarter of last year, we did have some big pops in the product business. So, it's a little bit of a tough comp. We had a number of assessment types of product sales and engagements a year ago. So, it definitely was a tough comparable. But in terms of the go forward, I would say that the partnership that I talked about earlier with SAP is one lever that we have to pull. The second is getting our assessment platform for Hunter (ph), the other handle, tens of thousands of employees at a time.
I think the third is, we've made a strategic push in that Advisory business toward bigger more impactful deals. And, with that, some of the smaller clients we've purposefully jettisoned, playing the long game that you want to create real scaled relationships. I think, you've probably -- you probably see that too playing in the last three or so quarters.
Robert Rozek--Executive Vice President, Chief Financial Officer and Chief Corporate Officer
Yeah. And, George, this is Bob. We had a -- one particular client engagement that was centered around a merger transaction. They had -- for our business, we had a very large fee. And the other thing I would add is, we also were still selling perpetual licenses to our IP, which are one-time hits to revenue versus where we're going now with the sort of software-as-a-service model where you get the revenue over time. So those are additional items that have impacted.
George Tong--Goldman Sachs Group Inc. -- Analyst
Got it. That's helpful. In the Executive Search business, fee revenue per consultant this quarter was $1.37 million, which declined 3.5% year-over-year. Can you elaborate on why consultant productivity fell in the quarter?
Robert Rozek--Executive Vice President, Chief Financial Officer and Chief Corporate Officer
Yeah. George, I can do that. So if you look at the year-over-year headcount, it's up 24. 13 of that 24 came during the fourth quarter. And so, people come on board and it takes a little bit of time for him to ramp up to be productive. And so by those folks coming in so late in the year, it weighed a little bit on the productivity per partner, it's really just timing of bringing those folks on board.
George Tong--Goldman Sachs Group Inc. -- Analyst
Got it. That's helpful. Thanks very much.
Operator
And next question will come from Mark Marcon at Baird. Please go ahead.
Mark Marcon--Robert W. Baird & Co., Inc. -- Analyst
Hi. Good afternoon. Just wondering if you could talk a little bit about the RPO and perm placement or professional placement business. Obviously, you're doing extremely well there. Of the new business that you ended up signing up during this quarter, how much was coming from brand new accounts that have never had an RPO versus wins relative to the competitors? And how are you thinking about what anywhere in the game as it relates to RPO?
Robert Rozek--Executive Vice President, Chief Financial Officer and Chief Corporate Officer
Yeah. Hey, Mark, it's Bob. So we did $84 million in total new business for our hubs. We did 54 RPO, 44 of that was new clients and 6 of that were -- was either renewals or a lot of times they will expand business in an existing client. So the combination of those two was the $6 million. So the 6 and the 45 obviously gets you to the 50. Listen, I think on the RPO side, I think it's still early innings. It's an area that we have a much differentiated product offering. I think that business has done a really nice job of taking the intellectual property that we have at the center of the organization in integrating it into their service offering. They've built a technology platform that integrates into essentially any HCM that a client has in place that provides them with the information data reporting that they wouldn't otherwise have. So, I think it's early innings and those we've talked to the folks in the business. I think they remain very bullish on the opportunities go forward.
Mark Marcon--Robert W. Baird & Co., Inc. -- Analyst
And, I mean, of the 44 new clients like how many of those -- they're new clients to you, but how many of them have had an RPO before where they might potentially be disengaging somebody else as opposed to their -- they've never had an RPO before.
Gary Burnison--Chief Executive Officer
Yeah. I don't know the exact number. I put -- my hunch would be that the majority of them are shifting over from other providers.
Mark Marcon--Robert W. Baird & Co., Inc. -- Analyst
Okay. And then with regards to what you're seeing and particularly in Europe, I mean you mentioned that during the last quarter in Executive Search Europe 7% in constant currency, which is really good considering the environment. Was there a really dramatic shift as it relates to going from the last quarter and going into April and then May, particularly in the UK and Germany?
Gary Burnison--Chief Executive Officer
Yeah. We've just seen the pace. The real the pace of new business has moderated and it's -- I think, it's reflective of, obviously, what you read.
Mark Marcon--Robert W. Baird & Co., Inc. -- Analyst
Okay. And then with regards to Advisory, can you talk a little bit about the different areas in terms of what the trends were there? Because it does sound like you're seeing differing trends between organizational strategy versus assessment versus leadership development. I was wondering if you could get a little bit more granular? What's the most encouraging? What's the area that you need to work on the absolute most?
Gary Burnison--Chief Executive Officer
Well, I certainly feel good about what we're doing in the consulting area. So we've got a number of proposals around the world around org strategy. So I'm feeling good about what we're doing there. So we did see in the quarter a nice pick up in org strategy. So M&A, post-merger integration kind of transformation engagements. where we're definitely seeing that. So that happened in the quarter. For the year, there was definitely leadership development was the best grower. D&I as well in the fourth quarter, but for the year it was probably 12% or 13% constant currency. We have a 1,000 people doing leadership development every day. So that was certainly nice to see. We're very aggressive in the market trying to bring in consultants into North America, I think we're subscale. We've had success doing that and we're going to continue to do that, for sure.
Mark Marcon--Robert W. Baird & Co., Inc. -- Analyst
Great.
Robert Rozek--Executive Vice President, Chief Financial Officer and Chief Corporate Officer
And Mark, this is Bob. I think the -- where Gary was talking about a lot of proposals out there and what the way that the business is now going to market is through our -- and we have our five-core solutions obviously, but they're weaving them together into an integrated solution that deals with a real business outcome, whether it's M&A, D&I, digital workforce. The things that companies are wrestling with today, we're able to pull our core solutions together into an integrated solution that's meaningful and help solve whatever the company's particular business issue is.
Mark Marcon--Robert W. Baird & Co., Inc. -- Analyst
Right. And then within North American Executive Search, I mean it went from 11.2% growth in the third quarter to 1.5% growth in the fourth quarter against an easier comp. We've got a 22% comp coming up here in the first quarter. Are you expecting North American Executive Search to be flat or potentially even down in the first quarter?
Gary Burnison--Chief Executive Officer
Certainly flat. I would say, it's going to be flat industrial, again it's not coincidental. I mean, it's linked to decoupling of supply chain. So I -- clearly industrial is a big part of our business and I'm not expecting the growth there until this thing gets sorted out.
Mark Marcon--Robert W. Baird & Co., Inc. -- Analyst
Okay. That's fair. And then with regards to the tax rate that you're expecting for this coming year, what should we think about from that perspective?
Robert Rozek--Executive Vice President, Chief Financial Officer and Chief Corporate Officer
Yeah. Mark, I tell you, pencil in right around 25% to 27%, midpoint 26%. They are still wrestling with some of the legislation, there's new regs coming out, new interpretations coming out constantly. So as we think about our plan for next year, we're already around 26% plus or minus range.
Mark Marcon--Robert W. Baird & Co., Inc. -- Analyst
Okay, great. And then, lastly, just capital allocation. Given your macro comments, how should we think about deployment of capital?
Gary Burnison--Chief Executive Officer
I would continue to think about it how we've been doing it in a balanced approach. And so we are -- we did -- we repurchased about percent and a half of shares this last year and had a dividend. We're continuing to look at M&A opportunities. So I would think it's going to be the same kind of game plan, obviously it's going to be market dependent.
Mark Marcon--Robert W. Baird & Co., Inc. -- Analyst
Okay, great. Thanks a lot.
Operator
And next question will come from Tim McHugh with William Blair. Please go ahead.
Tim McHugh--William Blair -- Analyst
Hi. Thanks. Just maybe one more question on Advisory. I think you talked about Asia and Europe being high-single-digit growth. So the implication is the US, I would guess, is probably pretty flattish this last quarter, but I guess just what was the growth rate for Advisory in the US? And is there any different dynamics, I guess, happening there? Why you're seeing just better growth outside the US? And how do you change that dynamic, I guess?
Robert Rozek--Executive Vice President, Chief Financial Officer and Chief Corporate Officer
Yes. So -- hey, Tim, it's Bob. I think, you're right. The North American Advisory was pretty flat. And it really goes back to what Gary had mentioned earlier in terms of just being undersized. We have been very, very aggressively recruiting into all areas in the Advisory practice and they've been successful. We've brought on a number of new folks whether it's in the -- our strategy area, rewards and benefits and so on. It is just a data point. Obviously not a trend, but we were very happy with the many new business that we saw in North America on the Advisory side.
Gary Burnison--Chief Executive Officer
Particularly consulting.
Robert Rozek--Executive Vice President, Chief Financial Officer and Chief Corporate Officer
Correct.
Gary Burnison--Chief Executive Officer
Yeah.
Tim McHugh--William Blair -- Analyst
Okay. And then RPO, obviously, the near-term financials look good? I guess, how do we think about overall new business? I know 2018 was a particularly strong new business period, but -- and then 2019, it's much higher than 2017 but much far below 2018, I guess, right. So recognizing it takes time for this, convert some of these clients into revenue, I guess trying to think about the continuation of growth a couple of quarters out from here as we've worked through the pipeline of stuff you've already won -- any meaningful ramp, again, in the new bookings?
Robert Rozek--Executive Vice President, Chief Financial Officer and Chief Corporate Officer
Well, it's hard to -- because the transactions or client relationships come about and they vary in size. If you go back to '18, we had one particular win that year that was north of $60 million over five years, right. So that obviously has a huge impact on the new business in FY18 . I would -- as I think about that business, I would expect the growth to continue to be high double digits that we've seen over the past three or four or five years.
Gregg Kvochak--Senior Vice President, Investor Relations
Yeah. I see nothing to back off. RPO and Professional Search we're now got a focus in Professional Search around technology and skilled positions, I wouldn't -- I don't still need to back off that at all.
Tim McHugh--William Blair -- Analyst
Okay, great. Thank you.
Operator
And next question is a follow up from Tobey Sommer at SunTrust. Please go ahead.
Tobey Sommer--SunTrust Robinson Humphrey, Inc. -- Analyst
Thanks. I was hoping you could elaborate a little bit on your posture for the balance sheet in capital deployment. You're now at a pretty substantial net cash position. It wasn't too many years ago that people were clamoring saying that that wasn't particularly efficient. How do you think about it now particularly given the economic juncture we're at?
Gary Burnison--Chief Executive Officer
Well, I've always thought you save in summertime and invest in wintertime. And investing is not just returning capital to shareholders. So we've made our best moves during head and shoulder times or worse times. And I think that's how you run a business. Now, if time goes along here and we're not able to find an acquisition, that makes sense for us. We have to do something with the capital. I mean, I think it's really that simple. So we, right now, are postured around kind of a balanced approach. We're going to continue that and obviously that could change for sure, because you cannot have hundreds of millions of dollars on cash on your balance sheet that is not being deployed. So we're going to be very agile and the great news is that we've repositioned this company. And so the business mix today is pretty sturdy. You've got a 250 million, 260 million product business that we don't think is very cyclical. It produces incredible profits. We think we've got an RPO business and Professional Search that look really good with substantial backlog and pipeline and different quality than 10 years ago.
Arguably the consulting business is not as cyclical as the search business and the search business is even more balanced geographically. So I think you've got a completely different company today. And we're coming from a position of strength. And I love times like this, because you can actually make moves. And so, I'm kind of excited.
Tobey Sommer--SunTrust Robinson Humphrey, Inc. -- Analyst
So we're about a decade after the Whitehead Mann acquisition, which might be sort of that winter you were describing there. If this head and shoulders as it was described can then actually creates opportunities for you, perhaps?
Gary Burnison--Chief Executive Officer
It could. It absolutely could, for sure. So I kind of love the environment we're in. Personally, it's -- when the sky is blue it's kind of boring.
Tobey Sommer--SunTrust Robinson Humphrey, Inc. -- Analyst
Thank you very much.
Operator
It appears there are no further questions, Mr. Burnison.
Gary Burnison--Chief Executive Officer
Okay. Listen, to our colleagues that are listening, just a great year for us. Nice quarter. I thank our investors for listening to the story and, hopefully, focusing on the long-term and thank you for all your time and we'll talk to you next time. Bye-bye.
Operator
Ladies and gentlemen, this conference call will be available for replay for one week starting today at 7.30 p.m. Eastern Time running through the day June 27th ending at midnight. You may access the AT&T Executive Playback Service by dialing 800-475-6701, and entering the access code 469220. International participants may dial 320-365-3844. Additionally, the replay will be available for playback at the company's website www.kornferry.com in the Investor Relations section.
That does conclude today's conference. Thank you for your participation. You may now disconnect.
Duration: 53 minutes
Gary Burnison--Chief Executive Officer
Robert Rozek--Executive Vice President, Chief Financial Officer and Chief Corporate Officer
Gregg Kvochak--Senior Vice President, Investor Relations
Tobey Sommer--SunTrust Robinson Humphrey, Inc. -- Analyst
Kevin Damien McVeigh--Credit Suisse AG -- Analyst
George Tong--Goldman Sachs Group Inc. -- Analyst
Mark Marcon--Robert W. Baird & Co., Inc. -- Analyst
Tim McHugh--William Blair -- Analyst
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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see ourTerms and Conditionsfor additional details, including our Obligatory Capitalized Disclaimers of Liability.
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The NGSC (SGX:B07) Share Price Is Up 100% And Shareholders Are Holding On
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If you want to compound wealth in the stock market, you can do so by buying an index fund. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). For example, theNGSC Limited(SGX:B07) share price is up 100% in the last year, clearly besting than the market return of around -2.4% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! Zooming out, the stock is actuallydown33% in the last three years.
Check out our latest analysis for NGSC
NGSC hasn't yet reported any revenue yet, so it's as much a business idea as an actual business. So it seems shareholders are too busy dreaming about the progress to come than dwelling on the current (lack of) revenue. It seems likely some shareholders believe that NGSC will significantly advance the business plan before too long.
As a general rule, if a company doesn't have much revenue, and it loses money, then it is a high risk investment. There is almost always a chance they will need to raise more capital, and their progress - and share price - will dictate how dilutive that is to current holders. While some such companies go on to make revenue, profits, and generate value, others get hyped up by hopeful naifs before eventually going bankrupt. Of course, if you time it right, high risk investments like this can really pay off, as NGSC investors might know.
When it last reported its balance sheet in March 2019, NGSC could boast a strong position, with cash in excess of all liabilities of S$13m. This gives management the flexibility to drive business growth, without worrying too much about cash reserves. And with the share price up 100% in the last year, the market is focussed on that blue sky potential. You can click on the image below to see (in greater detail) how NGSC's cash levels have changed over time.
Of course, the truth is that it is hard to value companies without much revenue or profit. However you can take a look at whether insiders have been buying up shares. If they are buying a significant amount of shares, that's certainly a good thing. Luckily we are in a position to provide you with thisfreechart of insider buying (and selling).
We're pleased to report that NGSC shareholders have received a total shareholder return of 100% over one year. There's no doubt those recent returns are much better than the TSR loss of 7.8% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. You could get a better understanding of NGSC's growth by checking outthis more detailed historical graphof earnings, revenue and cash flow.
Of courseNGSC may not be the best stock to buy. So you may wish to see thisfreecollection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on 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. |
About That 'Cell Phones Give You Horns' Study: Brainstorm Health
Good afternoon, readers.
One day, I’m going to have do an empirical study on the correlation between eye-catching public health stories and the time of year (I have a strange suspicion that they tend to spike round the summer time). The latest: A claim by Australian scientists that frequent use of cell phones, tablets, and our various other black mirrors are literally changing our skeletons – and may even lead tosomething akin to “horns” in adolescents.
But let’s dig a bit deeper before we start slapping the “horn” warnings on iPhones. For one thing, this research is actually a year old but has caught new wind. For another, it’s an observational study that relied on existing X-ray imaging to reach its conclusions, rather than a randomized, long-term clinical trial.
Basically, the researchers noticed a higher frequency of bone spurs (the aforementioned “horns”) in the head and neck regions of younger people’s X-rays (and these are all from Queensland, Australia). It’s not entirely clear just how concerning those spurs may be
That’s not to say that new technologies and working habits don’t have real effects on our bodies – just ask the millions of working Americanswith lower back pain, a trend that’s spiked in an increasingly sedentary work culture. Just don’t worry too much about sprouting horns anytime soon.
Read on for the day’s news.
Sy Mukherjee@the_sy_guysayak.mukherjee@fortune.com
1. DIGITAL HEALTHA fascinating look into the world of VR.I strongly urge all of your to read my colleague Aric Jenkins’ fascinating, and deeply reported, look into the world of virtual reality (a field that carries significance for both leisure and business alike, including veryreal implications for health care). Aric explores the rise, fall, and rise again of VR, and the challenges that remain for a technology that’s finally matured.(Fortune)
2. INDICATIONSTrump to reportedly issue health pricing transparency order.President Donald Trump will reportedly issue an executive order next week aimed at boosting transparency in the health care sector, including among health insurers and doctors. The most important part of the order will be its approach to justwhatmust be revealed – as readers know, list prices rarely tell you much about what customers may eventually pay in health care, so a requirement to divulge negotiated discounts on health services could prove more valuable than a simple list price revelation.(Reuters)
3. THE BIG PICTUREKaiser launches studies to see how physicians can curb firearm injuries.Nonprofit health giant Kaiser Permanente announced Thursday that it’s funding three separate studies to examine how doctors and medical professionals can help curb gun violence. “We know that firearm injury is a leading cause of preventable death in the U.S., and we can leverage our research capabilities combined with our deep clinical experience to help tackle this issue,” said Kaiser CEO Bernard Tyson in a statement. The studies will examine everything from web-based tools to teach patients at high risk for suicide about safe gun storage to suicide prevention training for health workers.
4. REQUIRED READINGWhat’s Next in Blockchain? Ask This TeenageEngineer,by Natallie RochaBill de Blasio and Chirlane McCray: Why We’re Introducing Social-Emotional Learning in New York City Schools,by Bill de Blasio and Chirlane McCrayRipple CEO: Facebook Libra Cryptocurrency Push Makes Me Happy,by Jonathan VanianTech’s 4 Biggest Cash Burners Have Torn Through $23.9 Billion Combined,by Shawn TullyProduced by Sy Mukherjee@the_sy_guysayak.mukherjee@fortune.comFind past coverage. Sign up for other Fortune newsletters. |
Here's Why We Think Brickworks (ASX:BKW) Is Well Worth Watching
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Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. But as Warren Buffett has mused, 'If you've been playing poker for half an hour and you still don't know who the patsy is, you're the patsy.' When they buy such story stocks, investors are all too often the patsy.
If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested inBrickworks(ASX:BKW). While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed.
View our latest analysis for Brickworks
As one of my mentors once told me, share price follows earnings per share (EPS). Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. As a tree reaches steadily for the sky, Brickworks's EPS has grown 26% each year, compound, over three years. If the company can sustain that sort of growth, we'd expect shareholders to come away winners.
I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats). While we note Brickworks's EBIT margins were flat over the last year, revenue grew by a solid 12% to AU$886m. That's a real positive.
You can take a look at the company's revenue and earnings growth trend, in the chart below. To see the actual numbers, click on the chart.
While we live in the present moment at all times, there's no doubt in my mind that the future matters more than the past. So why not checkthis interactive chart depicting future EPS estimates, for Brickworks?
Like that fresh smell in the air when the rains are coming, insider buying fills me with optimistic anticipation. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. Of course, we can never be sure what insiders are thinking, we can only judge their actions.
Despite -AU$1.4m worth of sales, Brickworks insiders have overwhelmingly been buying the stock, spending AU$1.9m on purchases in the last twelve months. You could argue that level of buying implies genuine confidence in the business. We also note that it was the MD & Executive Director, Lindsay Partridge, who made the biggest single acquisition, paying AU$915k for shares at about AU$16.92 each.
Along with the insider buying, another encouraging sign for Brickworks is that insiders, as a group, have a considerable shareholding. With a whopping AU$101m worth of shares as a group, insiders have plenty riding on the company's success. That's certainly enough to make me think that management will be very focussed on long term growth.
Given my belief that share price follows earnings per share you can easily imagine how I feel about Brickworks's strong EPS growth. On top of that, insiders own a significant stake in the company and have been buying more shares. So it's fair to say I think this stock may well deserve a spot on your watchlist. Now, you could try to make up your mind on Brickworks by focusing on just these factors,oryou couldalsoconsider how its price-to-earnings ratio compares to other companies in its industry.
The good news is that Brickworks is not the only growth stock with insider buying. Here'sa a list of them... with insider buying in the last three months!
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Dollar Keeps Falling After Rate Cut Signal
Investing.com - The dollar kept losing ground to other major currencies on Friday in Asia after the U.S. Federal Reserve signalled an interest rates cut to prop up economic growth.
The U.S. dollar index that tracks the greenback against a basket of six currencies was down 0.08% to 96.062 by 12:08 PM ET (04:08 GMT).
The USD/JPY pair was down 0.17% to 107.10, below a five-month low of 107.20 yen reached on Thursday after Fed Chairman Jerome Powell suggested that a rate cut could occur at the next policy meeting in July.
The U.S. central bank suggested earlier in the week that it could ease monetary policy as early as next month amid mounting concerns over the economic impact of global trade tensions and subdued inflation.
“The dollar’s upside is capped, because we are already looking past the Fed’s July meeting for more rate cuts,” Reuters quoted Junichi Ishikawa, senior foreign exchange strategist at IG Securities.
The 2019 G20 Summit in Osaka next week is attracting some attention where U.S. President Donald Trump and Chinese President Xi Jinping will meet amid the ongoing trade row. Both sides have confirmed a meeting between the two leaders on the sidelines of the summit.
“Central banks are in a competition to ease policy, so it’s a question of which currency to sell. There are some hopes surrounding G20, but we’ve been here before, only to be disappointed,” said Ishikawa.
The USD/CNY pair inched up 0.12% to 6.8590.
Kiwi and Aussie dollar both took advantage of the greenback’s weakness, the NZD/USD pair gained 0.2% to 0.6598, while the AUD/USD pair rose 0.12% to 0.6930.
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NBA draft: Why De'Andre Hunter was announced as a Lakers pick
At this point, even casual NBA fans are aware that Anthony Davis is a member of the Los Angeles Lakers, and that it took a metric ton of young talent to obtain him from the New Orleans Pelicans. Among that collection of young talent was the No. 4 overall pick in the NBA draft, which the Pelicans later flipped to the Atlanta Hawks for even more picks and salary relief . And yet, when Virginia forward De’Andre Hunter was announced as the fourth overall pick at the draft by NBA commissioner Adam Silver, Hunter wasn’t given a hat from the team he would be playing for. He was wearing a Lakers hat. This is a picture of a player who will not be playing for the Lakers. (AP Photo/Julio Cortez) The reason for that awkward look is that while the Davis trade — or at least most of it — has been agreed upon, the trade hasn’t actually been finalized. The trade will actually go through at some point in the coming weeks, but for now, it’s the Lakers who are technically making the fourth overall pick under direction of the Hawks. The Hawks weren’t even able to celebrate landing Hunter on Twitter, opting for some subtle emojis instead. 🤐🤐🤐🤐 — Atlanta Hawks (@ATLHawks) June 21, 2019 Hunter wasn’t the lone player in the awkward position of being interviewed while wearing gear for a team he will not playing for, as sixth overall pick Jarrett Culver was announced as a Phoenix Suns pick even though it was the Minnesota Timberwolves who controlled the selection . It’s all an extremely silly situation, and something the National Football League draft picks don’t have to go through. Even if the players can’t be given the hat for their actual team, they should at least be given a general NBA hat or something. Text from NFL coach: “Gotta get the NBA to change the ‘trade rules’ so they don’t keep sending these kids up there with wrong hats on - embarrassing.” — Adam Schefter (@AdamSchefter) June 21, 2019 Fortunately, Yahoo Sports has Hunter covered. fixed it. #NBADraft pic.twitter.com/U1Hlo6Jpyw — Yahoo Sports (@YahooSports) June 21, 2019 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 |
What Kind Of Investor Owns Most Of Allegra Orthopaedics Limited (ASX:AMT)?
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If you want to know who really controls Allegra Orthopaedics Limited (ASX:AMT), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of 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.'
Allegra Orthopaedics is not a large company by global standards. It has a market capitalization of AU$9.0m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholder can tell us about AMT.
View our latest analysis for Allegra Orthopaedics
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that Allegra Orthopaedics does have institutional investors; and they hold 9.2% of the stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Allegra Orthopaedics, (below). Of course, keep in mind that there are other factors to consider, too.
We note that hedge funds don't have a meaningful investment in Allegra Orthopaedics. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
It seems insiders own a significant proportion of Allegra Orthopaedics Limited. Insiders own AU$2.6m worth of shares in the AU$9.0m company. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You canclick here to see if those insiders have been buying or selling.
The general public holds a 11% stake in AMT. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Our data indicates that Private Companies hold 51%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
It's always worth thinking about the different groups who own shares in a company. But to understand Allegra Orthopaedics better, we need to consider many other factors.
Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow.
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. |
Iran Crisis Prompts United to Stop Flying to Mumbai
United Airlines has temporarily stopped flying between the New York area and Mumbai because of security concerns about Iranian airspace, the carrier said Thursday night.
United said it had “conducted a thorough safety and security review” before deciding to indefinitely scrap the flight. United canceled its late-night Thursday departure from Mumbai to Newark, as well as its evening flight from Newark to Mumbai “because of an air space restriction over Western Asia,” according to a message on United.com.
The decision came after the United States accused Iran ofshooting down one of its military drones.Iran admitted to the incident, but there’s some question about whether it happened over international airspace or over Iran’s airspace. The U.S. government, which has said the drone was over international waters,has been weighing how to respond.
Other airlines continued to fly over Iran on Thursday, including Lufthansa, which operates codeshare service with United. But United, only one of three global U.S. carriers now flying to India, apparently decided it was not worth the risk.
In recent days United’s flight to Mumbai typically has crossed over Northern Europe and then proceeded southeast, over the Caspian Sea and through Eastern Iran, according to Flight Radar 24. Sometimes airlines can keep flying a route by adding flight time to avoid hotspots, but that would be challenging here.
In a statement United said it will rebook customers who planned to fly to Mumbai.
“We are contacting our customers to provide this update and assist those who may need rebooking options,” it said. “We continue to explore all our options and remain in close contact with relevant government authorities in order to provide our customers with the most efficient travel experience under these circumstances.”
After United halted its flights, the U.S. government issued a notice to airmen telling pilots they could not fly over Iran due to “heightened military activities and increased political tensions in the region.”
The notice is only binding for U.S.-flagged airliners. The Federal Aviation Administration said there was a potential for “miscalculation” or “misidentification” of civilian airliners.
“The risk to U.S. civil aviation is demonstrated by the Iranian surface-to-air missile shoot down of a U.S. unmanned aircraft system on 19 June 2019 while it was operating in the vicinity of civil air routes above the Gulf of Oman,” the government said.
United usually has two India routes, but the second one, from Newark to Delhi, has been suspended because of a different geopolitical problem. Pakistan has closed some of its airspace because of a feud with India,making it difficult for U.S. airlines to fly to Delhi using a reasonable route.
For awhile United had been making a fuel and crew stop in Germany so it could keep flying to Delhi by flying a circuitous route. But ultimately that stop proved too costly.
United told employees earlier this month that flying the route nonstop from Newark was impossible because avoiding Pakistan took too much time.
“We have also received questions from employees asking why our Star Alliance Partner Air India continues to operate this route while our service remains suspended,” United said in a message to employees. “FAA crew duty time limitations – which apply only to U.S. carriers like United – do not permit us to extend the flight time adequately to avoid Pakistan’s airspace.”
United is supposed to start a third India flight, from San Francisco to Delhi,in December.
This story was updated with information about the notice to airmen for U.S. pilots and airlines.
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Should You Be Concerned About Darco Water Technologies Limited's (SGX:BLR) Historical Volatility?
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Anyone researching Darco Water Technologies Limited (SGX:BLR) might want to consider the historical volatility of the share price. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market.
Some stocks mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. To make good use of it you must first know that the beta of the overall market is one. Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.
View our latest analysis for Darco Water Technologies
Looking at the last five years, Darco Water Technologies has a beta of 1.76. The fact that this is well above 1 indicates that its share price movements have shown sensitivity to overall market volatility. If the past is any guide, we would expect that Darco Water Technologies shares will rise quicker than the markets in times of optimism, but fall faster in times of pessimism. Many would argue that beta is useful in position sizing, but fundamental metrics such as revenue and earnings are more important overall. You can see Darco Water Technologies's revenue and earnings in the image below.
Darco Water Technologies is a noticeably small company, with a market capitalisation of S$29m. Most companies this size are not always actively traded. Relatively few investors can influence the price of a smaller company, compared to a large company. This could explain the high beta value, in this case.
Beta only tells us that the Darco Water Technologies share price is sensitive to broader market movements. This could indicate that it is a high growth company, or is heavily influenced by sentiment because it is speculative. Alternatively, it could have operating leverage in its business model. Ultimately, beta is an interesting metric, but there's plenty more to learn. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as Darco Water Technologies’s financial health and performance track record. I urge you to continue your research by taking a look at the following:
1. Future Outlook: What are well-informed industry analysts predicting for BLR’s future growth? Take a look at ourfree research report of analyst consensusfor BLR’s outlook.
2. Past Track Record: Has BLR been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look atthe free visual representations of BLR's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how BLR measures up against other companies on valuation. You could start with thisfree list of prospective options.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Kelly Hyman Reveals the Importance of Mindfulness
Attorney Kelly Hyman shares personal insight into the importance of mindfulness.
WASHINGTON, DC / ACCESSWIRE / June 20, 2019 /Defined as the state of being conscious or aware of circumstances and surroundings, mindfulness involves achieving a mental state wherein which an individual's awareness is centered around the present moment, allowing them to more clearly accept their feelings, thoughts, and other sensations. Today widely used as a therapeutic technique, University of Florida College of Law graduate, Television Legal Analysis, attorneyKellyHymanoffers a closer, personal look at the process.
"An innate human ability to be wholly present and aware of what's going on around us, it's important that we all understand the benefits of mindfulness," suggests Hyman, who specializes on class action lawsuits and mass tort litigation. Regularly practicing and employing mindfulness is important, she says, as not to become overly reactive or overwhelmed by what's going on in life. "The goal of mindfulness is to awaken the innermost workings of our emotional, mental, and physical processes," adds the successful attorney.
According to Mindful.org, growing research now demonstrates that when an individual trains themselves to be as mindful as possible, they're physically remodeling the structure of their brain and the core of their entire nervous system.
A mission-driven nonprofit, Mindful.org is dedicated to inspiring, guiding, and connecting those who wish to explore mindfulness, such as attorneyKelly Hyman. Their goal, according to the organization, is to allow people of all ages to enjoy better mental and physical health, and more caring relationships, in order to promote a more compassionate society overall.
"Personally, practicing mindfulness allows me to better understand and approach day-to-day life, obstacles, and other challenges, as well as to connect better with others, lower my stress levels, and perfectly focus my mind, both personally and professionally," reveals Hyman.
Others who regularly practice mindfulness also praise the process for allowing them to form a better relationship with both mental and physical pain. Most of those who routinely embrace mindfulness do so by employing meditation, breathing exercises, and other practices.
"Yoga and mindfulness combine well together, for example," adds Hyman, wrapping up, "so, for those looking to learn more about the process, yoga classes are often an excellent place to start."
A graduate of UCLA and the University of Florida College of Law,KellyHymanis an attorney at Denver, Colorado-based Franklin D. Azar & Associates focused on class action lawsuits and mass tort litigation. A staunch advocate for social justice and women's rights whose other interests include the law, current events, voting rights, and female empowerment, she is happily married to federal judge Paul G. Hyman, Jr.
Kelly Hyman - Colorado-based Top-Rated Attorney and Legal Analyst:http://kellyhymannews.com
Kelly Hyman, Attorney & Speaker, Has Achieved the Highest Possible Rating From Martindale-Hubbell®:https://finance.yahoo.com/news/kelly-hyman-attorney-speaker-achieved-035500759.html
Kelly Hyman is Named as a Top 25 Class Action Trial Lawyer:https://finance.yahoo.com/news/kelly-hyman-named-top-25-113000118.html
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View source version on accesswire.com:https://www.accesswire.com/549422/Kelly-Hyman-Reveals-the-Importance-of-Mindfulness |
What Are Analysts Saying About Alkem Laboratories Limited's (NSE:ALKEM) Growth?
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Alkem Laboratories Limited's (NSE:ALKEM) latest earnings announcement in May 2019 indicated that the company experienced a robust tailwind, leading to a double-digit earnings growth of 21%. Below, I've presented key growth figures on how market analysts predict Alkem Laboratories's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.
View our latest analysis for Alkem Laboratories
Market analysts' consensus outlook for next year seems optimistic, with earnings increasing by a robust 25%. This growth seems to continue into the following year with rates reaching double digit 56% compared to today’s earnings, and finally hitting ₹12b by 2022.
Even though it is helpful to understand the growth rate each year relative to today’s value, it may be more valuable gauging the rate at which the company is rising or falling on average every year. The advantage of this approach is that it ignores near term flucuations and accounts for the overarching direction of Alkem Laboratories's earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I've inserted a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 19%. This means that, we can anticipate Alkem Laboratories will grow its earnings by 19% every year for the next few years.
For Alkem Laboratories, I've compiled three fundamental aspects you should look at:
1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Valuation: What is ALKEM worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether ALKEM is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of ALKEM? Exploreour interactive list of stocks with large growth potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Will Netflix Launch an Ad-Supported Tier?
Netflix's(NASDAQ: NFLX)top-line momentum is impressive. Revenue surged in 2018, rising 35% year over year, to $16 billion. But the huge sums of money Netflix is spending on content to attract and keep its customer base is weighing on the company's financials.
Free cash flow, or cash flow from operations less capital expenditures, was negative $3 billion last year. And in 2019, free cash flow is expected to be negative $3.5 billion.
Fortunately for Netflix, the company could unleash a key catalyst to boost its financials at any point in time. Doing so, however, will require a major shift in Netflix's monetization strategy: ads. Despite how farfetched this idea may seem for a service that's currently entirely ad free, some experts believe Netflix executives may eventually cave and do exactly this.
Image source: Getty Images.
You can bet Netflix is giving ads a second look. The momentum in the sector recently is mind-boggling.
Consider trends atThe Trade Desk(NASDAQ: TTD), whose stock has soared 174% over the past 12 months as ad spend on its platform, which helps marketers, brands, and ad agencies optimize their ad spend programmatically, has soared. Growth in ads on connected TV, in particular, has been a boon for the company. Connected TV ad spend on its platform increased ninefold in 2018, compared to 2017. CTV "is the most exciting channel that we've ever seen [and] probably ever will see," said The Trade Desk CEO Jeff Green in the company'sfourth-quarter earnings call.
Streaming-TV platformRoku(NASDAQ: ROKU)has similarly seen strong momentum, driven in large part by growth in ads on its platform. The company's platform revenue surged 79% year over year in Q1. A key driver of this growth was a more than doubling of its monetized video-ad impressions during the quarter -- a trend management expects to continue the rest of the year.
Telaria(NYSE: TLRA), which helps publishers like Hulu (owned byWalt Disney) optimize their ad inventory to be sold programmatically, saw its connected-TV-related revenue soar 169% year over year in Q1.
The steep costs of original content and the undeniable momentum in connected TV ads have industry experts betting Netflix may soon change its tune about ads.
"[Netflix has]envied YouTube's international reachfor a very long time," Green said in an interview with Recode Media late last year. He added, "I don't think there's any chance that they can catch up to YouTube, ... unless they go ad-funded in the same way that YouTube is."
Telaria's Mark Zagorski similarly expects Netflix to eventually debut ads. The company could do this by introducing an additional tier that is ad-supported, the CEO explained. In addition, Zagorski agrees with Green about there being a great opportunity for Netflix to do this internationally.
"Introducing advertising in global markets where Netflix's ad-free model isn't already the norm will result in little, if any, consumer backlash, while helping the service scale more quickly," Zagorskiwrotein an article in AdExchanger.
Now, Hulu's head of ad sales is chiming in (viaCNBC), saying it's only logical for Netflix to eventually introduce an ad-supported option to help mitigate the costs of content.
Fortunately, an ad-supported Netflix won't have to look like linear TV at all, Naylor explained at the Cannes Lions advertising conference this week:
I think you're going to see a lot of innovation from all of these new OTT providers because we're allowed to. We're not married to the clock. Fifteen and 30-second ads were a product of linear TV. When everything's on demand and served through an IP address, the ad experience is going to dramatically improve.
Of course, Netflix will likely always offer an ad-free version of its service. But don't be surprised if the streaming giant begins experimenting with the idea of an ad-supported tier in some markets.
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Daniel Sparksowns shares of Telaria, Inc. and The Trade Desk. The Motley Fool owns shares of and recommends Netflix, Roku, The Trade Desk, and Walt Disney. The Motley Fool has adisclosure policy. |
Is Big River Industries Limited (ASX:BRI) An Attractive Dividend Stock?
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Today we'll take a closer look at Big River Industries Limited (ASX:BRI) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments.
Big River Industries pays a 4.1% dividend yield, and has been paying dividends for the past two years. It's certainly an attractive yield, but readers are likely curious about its staying power. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below.
Explore this interactive chart for our latest analysis on Big River Industries!
Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. In the last year, Big River Industries paid out 74% of its profit as dividends. A payout ratio above 50% generally implies a business is reaching maturity, although it is still possible to reinvest in the business or increase the dividend over time.
We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Big River Industries paid out 85% of its cash flow last year. This may be sustainable but it does not leave much of a buffer for unexpected circumstances. It's positive to see that Big River 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.
Consider gettingour latest analysis on Big River Industries's financial position here.
Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. This company's dividend has been unstable, and with a relatively short history, we think it's a little soon to draw strong conclusions about its long term dividend potential. During the past two-year period, the first annual payment was AU$0.035 in 2017, compared to AU$0.044 last year. This works out to be a compound annual growth rate (CAGR) of approximately 12% a year over that time. The dividends haven't grown at precisely 12% every year, but this is a useful way to average out the historical rate of growth.
Big River Industries has grown distributions at a rapid rate despite cutting the dividend at least once in the past. Companies that cut once often cut again, but it might be worth considering if the business has turned a corner.
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. Big River Industries's earnings per share have fallen -37% over the past year. This is a pretty serious concern, and it would be worth investigating whether something fundamental in the business has changed - or broken. We do note though, one year is too short a time to be drawing strong conclusions about a company's future prospects.
We'd also point out that Big River Industries issued a meaningful number of new shares in the past year. Trying to grow the dividend when issuing new shares reminds us of the ancient Greek tale of Sisyphus - perpetually pushing a boulder uphill. Companies that consistently issue new shares are often suboptimal from a dividend perspective.
To summarise, shareholders should always check that Big River Industries's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. Big River Industries's is paying out more than half its income as dividends, but at least the dividend is covered by both reported earnings and cashflow. Earnings per share are down, and Big River Industries's dividend has been cut at least once in the past, which is disappointing. Overall, Big River Industries falls short in several key areas here. Unless the investor has strong grounds for an alternative conclusion, we find it hard to get interested in a dividend stock with these characteristics.
See if management have their own wealth at stake, by checking insider shareholdings inBig River Industries stock.
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. |
Does Aakash Exploration Services Limited's (NSE:AAKASH) P/E Ratio Signal A Buying Opportunity?
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This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). We'll look at Aakash Exploration Services Limited's (NSE:AAKASH) P/E ratio and reflect on what it tells us about the company's share price.What is Aakash Exploration Services's P/E ratio?Well, based on the last twelve months it is 4.48. In other words, at today's prices, investors are paying ₹4.48 for every ₹1 in prior year profit.
Check out our latest analysis for Aakash Exploration Services
Theformula for price to earningsis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for Aakash Exploration Services:
P/E of 4.48 = ₹22 ÷ ₹4.91 (Based on the year to March 2019.)
A higher P/E ratio implies that investors paya higher pricefor the earning power of the business. That is not a good or a bad thingper se, but a high P/E does imply buyers are optimistic about the future.
P/E ratios primarily reflect market expectations around earnings growth rates. That's because companies that grow earnings per share quickly will rapidly increase the 'E' in the equation. That means even if the current P/E is high, it will reduce over time if the share price stays flat. And as that P/E ratio drops, the company will look cheap, unless its share price increases.
Aakash Exploration Services saw earnings per share improve by -4.0% last year. And its annual EPS growth rate over 5 years is 15%.
The P/E ratio essentially measures market expectations of a company. The image below shows that Aakash Exploration Services has a lower P/E than the average (6.9) P/E for companies in the energy services industry.
This suggests that market participants think Aakash Exploration Services will underperform other companies in its industry. While current expectations are low, the stock could be undervalued if the situation is better than the market assumes. You should delve deeper. I like to checkif company insiders have been buying or 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. The exact same company would hypothetically deserve a higher P/E ratio if it had a strong balance sheet, than if it had a weak one with lots of debt, because a cashed up company can spend on growth.
While growth expenditure doesn't always pay off, the point is that it is a good option to have; but one that the P/E ratio ignores.
Aakash Exploration Services's net debt is considerable, at 151% of its market cap. This level of debt justifies a relatively low P/E, so remain cognizant of the debt, if you're comparing it to other stocks.
Aakash Exploration Services's P/E is 4.5 which is below average (15.6) in the IN market. The meaningful debt load is probably contributing to low expectations, even though it has improved earnings recently.
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. We don't have analyst forecasts, but you could get a better understanding of its growth by checking outthis more detailed historical graphof earnings, revenue and cash flow.
But note:Aakash Exploration Services 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. |
Q&A: Stocks soar while bonds are signaling gloom. What's up?
NEW YORK (AP) — Why is the stock market so happy and the bond market so gloomy? Just as the S&P 500 was setting a record high Thursday, bond yields were tumbling to their lowest levels since Donald Trump was elected. The yield on the 10-year Treasury, which influences rates for mortgages and other loans, dropped below 2% at one point. It was above 3.20% in November. Usually, stock prices rise when investors are feeling confident. Bond yields, meanwhile, often fall when investors are worried about a softening economy. How can both be happening at the same time? In large part, it's because investors are locking in bets based on expectations for what the Federal Reserve will do with interest rates. The U.S.-China trade war is also playing a role. Here's a look at how ebullience and trepidation can occur simultaneously: ___ HOW IS THE FED PUSHING THE STOCK MARKET HIGHER? Most investors expect the Fed to cut interest rates at its next meeting in July for the first time since the economy was swamped under the Great Recession in 2008. Not only that, many investors expect the central bank to cut rates another one or maybe even two times later this year. It's a sharp turnaround from December 2018, when the Fed raised rates for the seventh time in two years. For stocks, lower rates can goose prices higher because stocks suddenly look more attractive than bonds. Lower rates also can encourage borrowing and more economic activity. "Markets have accepted the new world order where low interest rates are viewed as a huge positive and people buy into the fact that you can afford to pay higher valuations" for stocks, said Nate Thooft, senior portfolio manager at Manulife Asset Management. It's also not just the Fed. Central banks around the world have shown their willingness to keep interest rates low to invigorate their economies. ___ WHY ARE TREASURY YIELDS FALLING? Short-term yields tend to fall when expectations build for coming rate cuts. Longer-term yields, meanwhile, fall when expectations for inflation are low and worries about the economy are growing. Story continues Inflation has remained remarkably tame. Some concerning economic figures, meanwhile, have been popping up around the world. Particularly in manufacturing, countries have seen slowing momentum as the global trade war weighs on trade and business confidence. "The bond market has reacted more powerfully than the equity markets over the last several months, both in anticipation of Fed news and when it comes to global growth worries," said Thooft. The bond market is usually seen as the more sober one when it comes to assessing economic trends, rather than the stock market, but Thooft said the movement in bond yields may have been overdone. ___ IS THE TRADE WAR ALSO MOVING MARKETS? Yes. Optimism is rising that the world's largest economies can make progress on their trade dispute when the U.S. and Chinese leaders meet at the Group of 20 summit next week. Trump's tweet announcing the meeting earlier this week helped send the S&P 500 to one of its better days of the year, up 1%. ___ AREN'T THE TWO THINGS MOVING MARKETS MUTUALLY EXCLUSIVE? IF THE TRADE WAR GETS RESOLVED, WILL THE FED STILL CUT RATES? If Trump and Chinese President Xi Jinping make so much progress that a deal seems near, Fed policymakers may not cut rates, or at least not in July. But few economists expect much progress will be made. Most analysts say that the most likely outcome is that the two sides agree to schedule talks. It's not clear whether Trump will suspend his threat to slap more tariffs on the remaining $300 billion in Chinese imports that haven't yet been taxed. Even if the Trump-Xi meeting goes well, the effects of Trump's trade fights with Europe and Mexico, as well as China, will likely linger. U.S. farmers have been hurt by retaliatory tariffs imposed on agricultural exports and U.S. business investment has slowed, as companies delay planned expansions amid greater uncertainty. Trade fights "don't unwind rapidly," Diane Swonk, chief economist at Grant Thornton, said. There are signs that the U.S. economy is stumbling, and that low inflation is more stubborn than the Fed previously thought, both of which argue for lower rates. "They're getting the cuts," said Joe Brusuelas, chief economist at tax advisory firm RSM, referring to stock market investors who bid up shares on anticipation of the Fed slicing rates. "The U.S. domestic economy is decelerating at an accelerating pace." ___ BUT THE ECONOMY IS DOING WELL, ISN'T IT? Yes, for now. Few economists are forecasting a recession. But Brusuelas and others expect growth could come in as low as 1.8% this year, sharply below last year's 2.9%. The boost to consumer spending from the tax cuts is fading, Brusuelas said. And while the unemployment rate remains low, hiring is on track to fall to its slowest pace since 2010. Inflation has remained below the Fed's 2% target, which Chairman Jerome Powell said as recently as April was likely a temporary issue stemming from cheaper gas and other factors. But Wednesday, Fed policymakers forecast that inflation would be just 1.5% at the end of this year. While lower inflation might sound good, it suggests that wages won't rise by enough to push prices higher. ___ WHAT IF THE FED SURPRISES EVERYONE AND DOESN'T CUT RATES AT ALL? The expectation for rate cuts is so deeply entrenched in markets that most investors don't consider this a likely scenario. Brian Jacobsen, senior investment strategist at the multi-asset solutions team at Wells Fargo Asset Management, is outside the mainstream in saying that the Fed might stand pat. He says China's slowing economy adds urgency for its leaders to reach a deal, while Trump has seen how much the stock market wants a trade agreement. If next week's meeting does offer some resolution, expectations for a rate cut will be dashed. But any disappointment could be offset by expectations for more durable economic growth around the world. "Once again, we could be in a position where bond yields rise and stocks rise as well," Jacobsen said. "We'll no longer have this divergence." |
Fresh wave of protests as Hong Kong ignores deadline to scrap extradition bill
By Anne Marie Roantree
HONG KONG, June 21 (Reuters) - Several hundred people rallied in Hong Kong on Friday after the expiry of a deadline protesters set for the government to completely scrap a controversial extradition bill, in the latest wave of protests in the Chinese-ruled city.
Demonstrators, mostly students dressed in black, gathered peacefully outside the legislature to vent their anger and frustration at Hong Kong leader Carrie Lam who promoted, and then postponed, the bill after mass protests.
The bill would allow suspected criminals to be extradited to the mainland to face trial in courts controlled by the Communist Party.
"We want to fight for our freedom," said high school student Chan Pak-lam, 17, one of those gathered in temperatures of about 30 degrees Celsius (86°F) outside the headquarters, which was temporarily shut on Friday in anticipation of protests.
"We want the law to be withdrawn, not suspended. I will stay here until tonight, 10 p.m. maybe. If the government doesn't respond, we will come again."
Since it returned to Chinese rule in 1997, Hong Kong has been governed under a "one country, two systems" formula that allows freedoms not enjoyed in mainland China, including a much-cherished independent judiciary.
But many residents are increasingly fearful of Beijing's tightening grip over the city and what they see as an erosion of civil liberties.
Lam has stopped short of axing the bill altogether, unnerving many who fear the law could put them at the mercy of the mainland Chinese justice system which is plagued by torture, forced confessions and arbitrary detentions.
Last week saw some of the most violent protests in decades, when police fired rubber bullets and tear gas to disperse the crowds. Millions have taken to the streets this month, reflecting the broad opposition to the bill.
Concerns have spread from democratic and human rights groups to secondary school students, church groups and media lobbies as well as corporate lawyers and pro-establishment business figures, some usually loath to contradict the government. (Reporting by Anne Marie Roantree and Vimvam Tong; Editing by Clarence Fernandez) |
Is Now The Time To Put Frasers Logistics & Industrial Trust (SGX:BUOU) On Your Watchlist?
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Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. But 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, likeFrasers Logistics & Industrial Trust(SGX:BUOU). While profit is not necessarily a social good, it's easy to admire a business than can consistently produce it. While a well funded company may sustain losses for years, unless its owners have an endless appetite for subsidizing the customer, it will need to generate a profit eventually, or else breathe its last breath.
See our latest analysis for Frasers Logistics & Industrial Trust
If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS). Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Frasers Logistics & Industrial Trust managed to grow EPS by 13% per year, over three years. That's a good rate of growth, if it can be sustained.
I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. Frasers Logistics & Industrial Trust shareholders can take confidence from the fact that EBIT margins are up from 68% to 74%, and revenue is growing. That's great to see, on both counts.
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.
You don't drive with your eyes on the rear-view mirror, so you might be more interested in thisfreereport showing analyst forecasts for Frasers Logistics & Industrial Trust'sfutureprofits.
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 Frasers Logistics & Industrial Trust insiders have a significant amount of capital invested in the stock. Indeed, they have a glittering mountain of wealth invested in it, currently valued at AU$147m. This suggests to me that leadership will be very mindful of shareholders' interests when making decisions!
One important encouraging feature of Frasers Logistics & Industrial Trust is that it is growing profits. If that's not enough on its own, there is also the rather notable levels of insider ownership. That combination appeals to me, for one. So yes, I do think the stock is worth keeping an eye on. Of course, identifying quality businesses is only half the battle; investors need to know whether the stock is undervalued. So you might want to consider thisfreediscounted cashflow valuationof Frasers Logistics & Industrial Trust.
You can invest in any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here isa list of companies with insider buying in the last three months.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
If You Had Bought Republic Healthcare (HKG:8357) Shares A Year Ago You'd Have Made 16%
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These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). For example, theRepublic Healthcare Limited(HKG:8357) share price is up 16% in the last year, clearly besting than the market return of around -13% (not including dividends). So that should have shareholders smiling. Republic Healthcare hasn't been listed for long, so it's still not clear if it is a long term winner.
Check out our latest analysis for Republic Healthcare
Because Republic Healthcare is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Over the last twelve months, Republic Healthcare's revenue grew by 4.2%. That's not great considering the company is losing money. The modest growth is probably largely reflected in the share price, which is up 16%. While not a huge gain tht seems pretty reasonable. It could be worth keeping an eye on this one, especially if growth accelerates.
The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values).
Balance sheet strength is crucual. It might be well worthwhile taking a look at ourfreereport on how its financial position has changed over time.
Republic Healthcare boasts a total shareholder return of 16% for the last year. A substantial portion of that gain has come in the last three months, with the stock up 5.7% in that time. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. You might want to assessthis data-rich visualizationof its earnings, revenue and cash flow.
But note:Republic Healthcare may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with past earnings growth (and further growth forecast).
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. |
FOREX-Dollar on course for weekly loss as Fed joins rate cut camp
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
* Dollar limps to weekly loss on dovish Fed
* Treasury yield tumble, gold surge spooks dollar bulls
* Focus shifts to G20 and US-China trade row
By Stanley White
TOKYO, June 21 (Reuters) - The dollar struggled to get on the front foot on Friday, and was poised for a weekly loss against major currencies after the U.S. Federal Reserve joined global peers with plans to cut interest rates to support flagging economic growth.
A decline in benchmark 10-year Treasury yields below 2% and a rise in gold above heavy technical resistance to a near six-year high suggested the dollar could face a period of prolonged selling pressure, traders and analysts say.
The focus now shifts to whether the United States and China can resolve their trade row at a Group of 20 leaders summit in Osaka next week, but analysts caution that chances of a decisive breakthrough are low.
"The dollar's upside is capped, because we are already looking past the Fed's July meeting for more rate cuts," said Junichi Ishikawa, senior foreign exchange strategist at IG Securities.
"Central banks are in a competition to ease policy, so it's a question of which currency to sell. There are some hopes surrounding G20, but we've been here before only to be disappointed."
Money markets are pricing in three Fed rate cuts before year-end, starting with the next meeting in July, and are tipping as many as five cuts through mid-2020.
The dollar traded at 107.30 yen, slightly above a five-month low of 107.20 yen reached Thursday after Fed Chairman Jerome Powell signalled a rate cut at the next policy meeting in July.
Powell's rate tilt joined the Fed with global peers such as the European Central Bank and the Reserve Bank of Australia this week on a path toward more policy stimulus to maintain economic growth.
Some hedge funds were surprised by the Fed's dovish stance, leading to an unwinding of dollar-long positions built up before its meeting on Wednesday, analysts said.
For the week the dollar was down 1.2% versus the yen, on course for the biggest decline since late March.
The dollar index, which measures the U.S. currency against six of its peers, was at 96.615, down 1.0% on the week.
China has confirmed that President Xi Jinping and U.S. President Donald Trump will meet on the sidelines of G20 next weekend.
The two countries have raised tariffs on each other's goods in a dispute about China's trading practices, hitting global trade and growth. Talks broke down last month, and some traders say chances for a truce next week are low.
Sterling changed hands at $1.2707, on course for a 1.0% weekly gain, which would be its best performance in seven weeks.
The Bank of England on Thursday struck a less dovish tone than other central banks as they voted unanimously to keep interest rates on hold at 0.75% and stuck to their message that rates would need to rise, so long as Britain avoids a damaging no-deal exit from the European Union.
The euro traded at $1.1296, little changed on the day but up 0.8% for the week.
Benchmark 10-year Treasury yields were at 2.0129% after tumbling to 1.9740%, the lowest since November 2016. Lower Treasury yields reduce the appeal of investing in the dollar. (Editing by Shri Navaratnam) |
Airlines avoid parts of Iran-controlled airspace after U.S. regulator's order
By Jamie Freed and David Shepardson
(Reuters) - Some global airlines are re-routing flights to avoid Iran-controlled airspace over the Strait of Hormuz and Gulf of Oman, they said on Friday, after the U.S. aviation regulator barred its carriers from the area until further notice.
Thursday's emergency order from the U.S. Federal Aviation Administration (FAA) came after Iran shot down a high-altitude U.S. drone with a surface-to-air missile, sparking concerns about a threat to the safety of commercial airlines.
The downing of the unarmed Global Hawk drone, which can fly up to 60,000 ft (18,300 m), was the latest in a series of incidents in the Gulf region, a critical artery for global oil supplies, that included explosive strikes on six oil tankers.
According to flight tracking applications, the FAA said, the nearest civil aircraft was operating within about 45 nautical miles of the unmanned aircraft when it was shot down.
"There were numerous civil aviation aircraft operating in the area at the time of the intercept," the FFA said, adding that its prohibition would stay in place until further notice.
Hours earlier, United Airlines suspended flights between New Jersey's Newark airport and India's financial capital of Mumbai following a safety review.
Cathay Pacific, Malaysia Airlines, Australia's Qantas Airways Ltd, Singapore Airlines Ltd, Germany's Lufthansa, British Airways and KLM of the Netherlands said they were re-routing flights to avoid the area.
Emirates Airline and Etihad Airways, which were flying over the area earlier on Friday, according to flight tracking website FlightRadar24, said later they were also re-routing their flights.
'THREAT IS REAL'
The FAA said it remained concerned about the escalation of tension and military activity in close proximity to high-volume civil aircraft routes as well as Iran's willingness to use long-range missiles in international airspace with little or no warning.
In July 2014, Malaysia Airlines Flight MH17 was shot down by a missile over Ukraine, killing all 298 on board, prompting carriers to take more steps to uncover threats to their planes.
But concerns persist over inadequate government intelligence sharing and a reluctance by countries involved in conflicts to divulge information or sacrifice overflight fees by closing their skies, according to safety experts.
The U.S. ban does not apply to airlines from other countries, but OPSGROUP, which provides guidance to operators, said carriers globally would take it into consideration.
"Since MH17, all countries rely on advice from the U.S., the U.K., France and Germany to highlight airspace risk," it said.
"The threat of a civil aircraft shootdown in southern Iran is real," it added.
Restricting airspace complicates airline efforts to keep routes running in a region where airspace is already congested, in part due to ongoing conflicts which have made it unsafe to fly over some countries.
At 0820 GMT on Friday, Flightradar24 showed Qatar Airways flights in the area barred to U.S. carriers.
On Monday, before the drone was shot down, Qatar Airways Chief Executive Akbar al-Baker told Reuters the airline "has a very robust plan B for any eventualities, including if there is a conflict in our region."
Qatar Airways did not respond immediately to a request for comment on Friday on whether it had introduced new measures since the drone was shot down.
Etihad, which had said it was monitoring the situation, later said in a statement it had agreed "to change a number of the flight paths we operate to and from the Arabian Gulf" after close consultation with the UAE General Civil Aviation Authority.
FLIGHTS SUSPENDED
United said it had suspended its flights to India through Iran airspace after a "thorough safety and security review," but did not say how long the suspension would last.
A United spokesman said customers flying from Mumbai to Newark would be booked on alternative flights back to the United States.
"We continue to explore all our options and remain in close contact with relevant government authorities," he added.
A Lufthansa spokesman said the company's planes had been avoiding the Strait of Hormuz since Thursday. He added that Lufthansa had extended the no-fly zone over Iran on Friday, without being more specific. The airline is still serving Iran's capital, Tehran.
Netherlands flag carrier KLM was no longer flying over the Strait of Hormuz, a spokesman said on Friday, while British Airways said it would adhere to the FAA guidance and use alternative routes.
Malaysia Airlines said it was avoiding the airspace, which it had previously used on flights between Kuala Lumpur and London, Jeddah and Medina.
Qantas said it was adjusting flight paths to avoid the Strait of Hormuz and Gulf of Oman until further notice. Singapore Airlines said some flights might require longer routings to avoid the area.
On Thursday, two other U.S. carriers, American Airlines and Delta Air Lines, said they did not fly over Iran. Japanese carriers Japan Airlines Co Ltd and ANA Holdings Inc also said they did not fly over the area.
(Reporting by Jamie Freed in Singapore and David Shepardson in Washington; Additional reporting by Alexander Cornwell in Dubai, Tracy Rucinski in Chicago, Toby Sterling in Amsterdam, Kathrin Jones and Christoph Steitz in Frankfurt, Liz Lee in Kuala Lumpur, Tim Kelly in Tokyo, Tom Westbrook in Sydney and Alistair Smout in London; Editing by Clarence Fernandez, Nick Macfie, Darren Schuettler and Emelia Sithole-Matarise) |
Have Insiders Been Buying China Sunsine Chemical Holdings Ltd. (SGX:CH8) Shares?
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We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares inChina Sunsine Chemical Holdings Ltd.(SGX:CH8).
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
See our latest analysis for China Sunsine Chemical Holdings
There wasn't any very large single transaction over the last year, but we can still observe some trading.
Happily, we note that in the last year insiders bought 100k shares for a total of S$105k. In the last twelve months China Sunsine Chemical Holdings insiders were buying shares, but not selling. 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!
There are plenty of other companies that have insiders buying up shares. You probably donotwant to miss thisfreelist of growing companies that insiders are buying.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Our data indicates that China Sunsine Chemical Holdings insiders own about S$12m worth of shares (which is 2.2% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in China Sunsine Chemical Holdings and their transactions don't cause us concern. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check thisfreereport showing analyst forecasts for its future.
Of 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. |
Should You Be Holding Shaanxi Northwest New Technology Industry Company Limited (HKG:8258)?
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Shaanxi Northwest New Technology Industry Company Limited ( HKG:8258 ) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of 8258, it is a company that has been able to sustain great financial health, trading at an attractive share price. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, read the full report on Shaanxi Northwest New Technology Industry here . Excellent balance sheet and good value 8258's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. 8258 seems to have put its debt to good use, generating operating cash levels of 7.35x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the companys cash flows. 8258 is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. 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 HK companies with similar levels of earnings, 8258's share price is trading below the group's average. This supports the theory that 8258 is potentially underpriced. SEHK:8258 Intrinsic value, June 21st 2019 Next Steps: For Shaanxi Northwest New Technology Industry, there are three essential aspects you should look at: Future Outlook : What are well-informed industry analysts predicting for 8258s future growth? Take a look at our free research report of analyst consensus for 8258s outlook. Historical Performance : What has 8258's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 8258? Explore our interactive list of stocks with large potential to 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 at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Bitcoin Climbs Above 9,722.4 Level, Up 4%
Investing.com - Bitcoin rose above the $9,722.4 threshold on Friday. Bitcoin was trading at 9,722.4 by 00:57 (04:57 GMT) on the Investing.com Index, up 4.43% on the day. It was the largest one-day percentage gain since June 14.
The move upwards pushed Bitcoin's market cap up to $173.1B, or 57.97% of the total cryptocurrency market cap. At its highest, Bitcoin's market cap was $241.2B.
Bitcoin had traded in a range of $9,517.4 to $9,785.1 in the previous twenty-four hours.
Over the past seven days, Bitcoin has seen a rise in value, as it gained 18.24%. The volume of Bitcoin traded in the twenty-four hours to time of writing was $19.5B or 30.69% of the total volume of all cryptocurrencies. It has traded in a range of $8,582.3037 to $9,785.0947 in the past 7 days.
At its current price, Bitcoin is still down 51.07% from its all-time high of $19,870.62 set on December 17, 2017.
Ethereum was last at $279.75 on the Investing.com Index, up 3.71% on the day.
XRP was trading at $0.43590 on the Investing.com Index, a gain of 0.71%.
Ethereum's market cap was last at $29.9B or 10.00% of the total cryptocurrency market cap, while XRP's market cap totaled $18.6B or 6.22% of the total cryptocurrency market value.
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Bitcoin Is Taking the Winklevoss Twins ‘to the Moon’
ByCCN Markets: The Winklevoss twins, Tyler and Cameron, playfully bragged thatbitcoinis taking them to space — literally.
Tyler Winklevossreminded crypto fans that five years ago, he and his brother used bitcoin to pay for a trip aboard billionaire Richard Branson’s Virgin Galactic SpaceshipTwo.
Tyler tweeted:
“In January 2014, I bought a ticket to space on Virgin Galactic with bitcoin. The price of 1 BTC was $800. I won’t make that mistake again. I was reminded of this while sending a copy of ‘Bitcoin Billionaires’ to my friend Richard Branson. #ToTheMoon” |
Indiabulls Ventures Limited (NSE:IBVENTUREPP) Is An Attractive Dividend Stock - Here's Why
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Could Indiabulls Ventures Limited (NSE:IBVENTUREPP) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful.
Investors might not know much about Indiabulls Ventures's dividend prospects, even though it has been paying dividends for the last nine years and offers a 0.4% yield. A low yield is generally a turn-off, but if the prospects for earnings growth were strong, investors might be pleasantly surprised by the long-term results. 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 Indiabulls Ventures!
Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. 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, Indiabulls Ventures paid out 12% of its profit as dividends. We'd say its dividends are thoroughly covered by earnings.
Consider gettingour latest analysis on Indiabulls Ventures's financial position here.
One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. Looking at the last decade of data, we can see that Indiabulls Ventures paid its first dividend at least nine years ago. Although it has been paying a dividend for several years now, the dividend has been cut at least once by more than 20%, and we're cautious about the consistency of its dividend across a full economic cycle. During the past nine-year period, the first annual payment was ₹2.00 in 2010, compared to ₹1.00 last year. This works out to be a decline of approximately 7.4% per year over that time. Indiabulls Ventures's dividend hasn't shrunk linearly at 7.4% per annum, but the CAGR is a useful estimate of the historical rate of change.
A shrinking dividend over a nine-year period is not ideal, and we'd be concerned about investing in a dividend stock that lacks a solid record of growing dividends per share.
Given that dividend payments have been shrinking like a glacier in a warming world, we need to check if there are some bright spots on the horizon. It's good to see Indiabulls Ventures has been growing its earnings per share at 14% a year over the past 5 years. Rapid earnings growth and a low payout ratio suggests this company has been effectively reinvesting in its business. Should that continue, this company could have a bright future.
We'd also point out that Indiabulls Ventures issued a meaningful number of new shares in the past year. Trying to grow the dividend when issuing new shares reminds us of the ancient Greek tale of Sisyphus - perpetually pushing a boulder uphill. Companies that consistently issue new shares are often suboptimal from a dividend perspective.
To summarise, shareholders should always check that Indiabulls Ventures's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. We're glad to see Indiabulls Ventures has a low payout ratio, as this suggests earnings are being reinvested in the business. Next, earnings growth has been good, but unfortunately the dividend has been cut at least once in the past. Indiabulls Ventures has a credible record on several fronts, but falls slightly short of our standards for a dividend stock.
Now, if you want to look closer, it would be worth checking out ourfreeresearch on Indiabulls Venturesmanagement tenure, salary, and performance.
If you are a dividend investor, you might also want to look at ourcurated list of dividend stocks yielding above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Gold hits five-year high, approaches US$1,400
Investing.com – Gold prices were flat during early morning trade in Asia Friday, just hours after hitting their highest point in more than five years driven by geopolitical tensions, the possibility of lower rates and weakness in the dollar.
Gold futuresfor August delivery were flat, trading at US$1,396.95 by 9:20 PM ET (01:20 GMT). Gold prices have not topped US$1,400 since 2014.
One key factor driving prices of safe haven gold, along with oil and other assets, are escalating tensions between the U.S. and Iran.
On Thursday, Iran admitted shooting down a U.S. drone. The admission came just a week after two oil tankers were attacked near the Strait of Hormuz, a key oil route. The U.S. also blames the tanker attacks on Iran. U.S. President Donald Trump tweeted that “Iran made a very big mistake”.
Gold tends to go higher during periods of instability.
Gold has also received a boost from an increasingly dovish stance by the U.S. Federal Reserve.
During a meeting on Wednesday, the Fed did not change rates but suggested it could cut them later in the year. Lower rates tend to make gold more attractive.
Rob Carnell, chief economist and head of Asia Pacific research at ING, told CNBC that the expectation that the Fed will cut rates made gold “quite attractive”.
“The gold market is suggesting to us that there’s sufficient liquidity to move their metal higher,” Jeff DeGraaf, found and chairman at Renaissance Macro Research told CNBC.
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Turkey launches new gas drillship amid tensions with Cyprus
ISTANBUL (AP) — Turkey has launched a second drillship that will drill for gas off neighboring Cyprus' east coast despite the European Union's decision to prepare possible sanctions to make sure Ankara refrains from such illegal actions. Turkey's energy minister boarded the 230-meter (750-foot) vessel, the Yavuz, which can drill to an estimated depth of up to 12,000 meters (40,000 feet), in a ceremony on Thursday. Another Turkish drillship is already drilling 40 miles off EU member Cyprus' west coast in waters where the ethnically divided island nation has exclusive economic rights. The Cypriot government condemned the Turkish action as a violation of international law and its sovereign rights. EU leaders meeting in Brussels spoke of the "immediate negative impact that such illegal actions have across the range of EU-Turkey relations." They said in a statement that their services will "submit options for appropriate measures without delay, including targeted measures." EU Commission President Jean-Claude Juncker said they "will not be soft measures." Turkish Energy Minister Fatih Donmez said his country would defend its rights and those of breakaway Turkish Cypriots to the area's energy reserves "until the end" and would continue drilling "without interruptions." Only Turkey recognizes a Turkish Cypriot declaration of independence. In a dig at the 28-member EU, Donmez said Turkey rejects "attempts by actors from outside the region to delineate" the eastern Mediterranean. He said the Yavuz will be drilling off Cyprus' eastern coast in coming months. Cyprus has divided its exclusive economic zone off its southern coast into 13 blocks, or areas. Turkey, which doesn't recognize Cyprus as a state, says parts of three blocks off the island's west coast fall within its own continental shelf. Turkish Cypriots claim most of seven blocks in the east. Story continues The Cypriot government says any potential gas proceeds will be shared equitably with Turkish Cypriots after a reunification deal is agreed upon and has created a fund into which all such revenues will flow. ___ Menelaos Hadjicostis contributed from Nicosia, Cyprus. |
Oil trends higher in Asia on U.S., Iran tension
Investing.com – Driven by simmering tensions between the U.S. and Iran, oil prices continued to trade higher during morning trade in Asia Friday hours after soaring to their highest level for the month.
U.S. WTI crude futureswere up 0.47% to $57.40 by 8:36 PM ET (00:30 GMT).Brent crude, traded in London, was up 0.42% to $64.78. The spread between the two key benchmarks is the lowest it has been since April.
Iran admitted shooting down a U.S. drone on Thursday and President Donald Trump has tweeted that “Iran made a very big mistake”.
Last week, two oil tankers were attacked near the Strait of Hormuz, which is a key route for oil out of the Middle East. The U.S. has blamed these attacks on Iran and announced plans to send 1,000 more troops to the region.
WTI oil rose as much as 6% during day trading in the U.S. as investors considered the possibility that a conflict with Iran could disrupt the global supply of oil. Since the attacks on the tankers, oil prices have risen about 9%.
Oil prices were also supported by drops in crude inventories in the U.S., as well as expectations that the US Federal Reserve would move to cut interest rates later this year.
“It’s a confluence of events: there’s a looming easing cycle that is going to hit the dollar and prop up commodity prices, and there are also the tensions with Iran,” John Kilduff, a partner at Again Capital in New York told Reuters.
Kilduff believes prices could go even higher if tensions continue to mount, although Trump seemed to suggest on Thursday that Iran’s actions could have been accidental.
Prices also climbed on Thursday after the U.S. Energy Information Administration reported that crude oil inventories fell by 3.11 million barrels in the week to June 14.
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This Auto Stock Jumped 31% While You Were Watching Tesla's Slump
Longtime highflierTesla(NASDAQ: TSLA)has had a tough 2019. Although its share price has bounced a bit recently, the Silicon Valley automaker's shares are still down about 33% from the beginning of the year --22% in May alone-- on concerns about slumping demand, a series ofdeep cost cuts, and abig first-quarter loss.
Those concerns may grow. CEO Elon Musk has promised repeatedly that sustainable profitability will soon arrive. But 9 years and counting after Tesla's initial public offering, it remains elusive.
Many auto and technology investors have been obsessing over the innovative electric-vehicle upstart's growing troubles. But recently, some have been returning to an old favorite: Shares ofFord Motor Company(NYSE: F)have risen about 31% so far in 2019.
What's driving that? I'm glad you asked.
Fdata byYCharts.
To understand why Ford's stock price is up in 2019, we should review why it slumped from its strong levels earlier in the decade. Simply put, while Ford posted strong sales and profit growth after the Great Recession, culminating in an all-time record pre-tax profit in 2015, investors have had concerns:
• Ford's costs were growing almost as quickly as its revenue, limiting its ability to take full advantage of strong truck and SUV sales.
• Ford's high-volume crossover SUVs, the Escape and Explorer, were both strong entries when launched. But they were outpaced by competition as they aged, and Ford has been slow to refresh them.
• Ford squandered a strong start in China after its local management team misread the market and fell behind faster-moving rivals' product cycles.
• Ford was talking a lot about future technologies like self-driving and electric vehicles, but it had little to show for the talk.
Those concerns all contributed to theouster of CEO Mark Fieldsin May 2017. His replacement, Jim Hackett, said that he would launch a "redesign" of Ford's global business toimprove its "fitness"and position it well as future technologies become mainstream.
But he gave few specifics, and Wall Street analysts were skeptical -- until recently.
Ford's renewed focus on high-profit products like SUVs is already helping to boost margins. Image source: Ford Motor Company.
Two things have changed: First, Hackett and his team have recently been much more forthcoming about their specific plans for "redesigning" Ford. Second, while there's still much more to be done, Ford's last two earnings reports have shown Wall Street that Hackett's changes arebeginning to bear fruit:
• Hackett's decision to focus on higher-profit SUVs and trucks while reducing investment in traditional sedan and hatchback models hasbegun to boost marginswithout costing Ford significant market share.
• Ford has significantrestructuring efforts under wayin Europe andSouth America. There's still much to do, but it's already paying off: Ford Europe swung to a profit in the first quarter after a year of losses, and there are clear signs of improvement in South America.
• Ford's China operation has been a train wreck. But a new management team -- withfarmore local knowledge and expertise than their predecessors -- has already made progress, reducing losses and rebuilding troubled relationships with key dealers. Again, there'smuch more to do, but it's clear that improvements are happening.
Long story short: Wall Street is feeling much better about Ford's prospects than it was, and that's why the Blue Oval's stock price has been rising in 2019.
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John Rosevearowns shares of Ford. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has adisclosure policy. |
With A 7.5% Return On Equity, Is Orica Limited (ASX:ORI) A Quality Stock?
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One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. By way of learning-by-doing, we'll look at ROE to gain a better understanding of Orica Limited (ASX:ORI).
Over the last twelve monthsOrica has recorded a ROE of 7.5%. That means that for every A$1 worth of shareholders' equity, it generated A$0.075 in profit.
See our latest analysis for Orica
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Orica:
7.5% = AU$214m ÷ AU$2.9b (Based on the trailing twelve months to March 2019.)
Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. It is all the money paid into the company from shareholders, plus any earnings retained. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets.
ROE measures a company's profitability against the profit it retains, and any outside investments. The 'return' is the amount earned after tax over the last twelve months. The higher the ROE, the more profit the company is making. So, all else equal,investors should like a high ROE. 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. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. As is clear from the image below, Orica has a lower ROE than the average (24%) in the Chemicals industry.
That's not what we like to see. 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. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first two cases, the ROE will capture this use of capital to grow. 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.
Although Orica does use debt, its debt to equity ratio of 0.78 is still low. I'm not impressed with its ROE, but the debt levels are not too high, indicating the business has decent prospects. Careful use of debt to boost returns is often very good for shareholders. However, it could reduce the company's ability to take advantage of future opportunities.
Return on equity is useful for comparing the quality of different businesses. In my book the highest quality companies have high return on equity, despite low debt. All else being equal, a higher ROE is better.
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So you might want to check this FREEvisualization of analyst forecasts for the company.
Of courseOrica may not be the best stock to buy. So you may wish to see thisfreecollection of other companies that have 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. |
GLOBAL MARKETS-Asian stocks fail to catch Wall St's Fed cheer as trade angst dominates
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Focus shifts back to G20 after Fed euphoria
* MSCI Asia-Pacific index inches up 0.1%
* Dollar struggles, government bonds buoyant post-Fed
* Middle East tensions support crude oil
By Shinichi Saoshiro
TOKYO, June 21 (Reuters) - Asian stocks struggled on Friday to track Wall Street's exuberance about a possible U.S. rate cut next month as anxiety over Sino-U.S. trade negotiations clouded the investor mood in the region.
Also tempering appetite in Asia were fresh worries about Middle East tensions, after Iran shot down a U.S. military drone, raising fears of a military confrontation between Tehran and Washington and pushing the crude oil price higher.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.1%. The index was up 4% on the week, during which it brushed its highest level since May 8.
Japan's Nikkei was flat, capped by the yen's big surge.
The S&P 500 hit a record high on Thursday after this week's Federal Reserve meeting boosted expectations that the central bank will cut interest rates as soon as next month to keep the U.S.-China trade war from stalling economic growth.
The Fed signalled easing after the conclusion of its policy setting meeting on Wednesday, saying it was ready to battle growing global and domestic economic risks.
"There is no doubt that this week's FOMC meeting outcome is positive for the financial markets including those in Asia," said Kota Hirayama, senior emerging market economist at SMBC Nikko Securities in Tokyo.
"That said, the FOMC alone won't be able to sustain Asian equities indefinitely until some kind of solution can be worked out for the U.S.-China trade war at the G20, since the region is particularly vulnerable to the conflict."
Investors have pinned hopes on the United States and China reaching some sort of compromise at the sidelines of the G20 summit in Japan on June 28-29.
In currency markets, the prospect of U.S. interest rates being lowered put the dollar squarely on the defensive.
The dollar index against a basket of six major currencies struggled near a two-week low of 96.567 brushed the previous day. The index has fallen roughly 1% this week.
The greenback has fallen 1.1% versus the yen this week and traded near a six-month low of 107.21 yen.
The euro was steady at $1.1295 after popping up to an eight-day high of $1.1317 in the previous session. The single currency was headed for a weekly gain of 0.75%.
With the Fed expected to ease policy soon, and with other central banks such as the European Central Bank and the Bank of Japan seen following in their wake, government bonds were on a bullish footing.
The benchmark 10-year U.S. Treasury yield surged in price and its yield fell below 2% for the first time in 2-1/2 years on Thursday. It last stood at 2.016%.
The German 10-year bund yield touched a record low of minus 0.329% this week while Japan's 10-year yield fell to a near three-year trough of minus 0.185% overnight.
Crude oil rose to three-week highs after Iran shot down a U.S. military drone, raising fears of about fresh conflict in the Middle East.
U.S. crude oil futures were up 0.58% at $57.40 per barrel after rallying more than 5% the previous day. (Editing by Sam Holmes) |
U.S. oil prices soar 10% in the week on fears of U.S.- Iran conflict
By Scott DiSavino and Devika Krishna Kumar
NEW YORK (Reuters) - Oil futures rose about 1% on Friday, with U.S. crude up 10% and global benchmark Brent gaining 5% in the week, on fears the United States could attack Iran and disrupt flows from the Middle East, which provides more than a fifth of the world's oil output.
U.S. gasoline futures, meanwhile, jumped 4% following a massive fire at Philadelphia Energy Solutions' refinery in Philadelphia, the largest on the U.S. East Coast.
"The heightening of tensions between the United States and Iran has evolved as primary price motivator in spiking oil values," Jim Ritterbusch of Ritterbusch and Associates said in a note.
While the rise in U.S.-Iranian tensions has largely driven the crude price gains, analysts said an early July meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies to reassess production targets, a potential softening of trade tensions between the United States and China and the refinery fire were also supporting prices.
Brent futures rose 75 cents, or 1.2%, to settle at $65.20 a barrel, while the most active U.S. West Texas Intermediate (WTI) crude contract ended the session up 36 cents, or 0.6%, at $57.43.
Brent notched a gain of about 5% for the week, its first weekly gain in five weeks, and WTI jumped about 10%, its biggest weekly percentage gain since December 2016.
The U.S. benchmark surged 5.4% and Brent jumped 4.3% on Thursday after Iran shot down a drone that the United States claimed was in international airspace and Iran said was over its territory.
U.S. President Donald Trump said he had aborted a military strike on Iran because such a response to Tehran's downing of the unmanned U.S. surveillance drone would have caused a disproportionate loss of life.
Iranian officials told Reuters that Tehran had received a message from Trump through Oman overnight warning that a U.S. attack on Iran was imminent.
The officials said they had responded by saying that any attack would have regional and international consequences. They also said Supreme Leader Ayatollah Ali Khamenei was against talks but that they would convey the U.S. message to him.
Trump spoke on Friday to Saudi Crown Prince Mohammed bin Salman about Middle East stability and the oil market, the White House said, after tensions with Iran prompted a rise in oil prices.
Tensions have been on the rise since U.S. sanctions on Iran severely reduced oil exports from OPEC's third largest producer and as Washington blamed Tehran, which denies any role, for a series of attacks on oil tankers in the Gulf.
"There is no doubt that a severe disruption to the transit of oil through this vulnerable route would be extremely serious," said consultancy FGE Energy in a note.
The demand outlook has also improved, with appetite for risk assets rising after the European and the U.S. central banks signaled possible rate cuts this week.
A weaker dollar also supported oil prices, making crude, usually priced in dollars, cheaper for buyers with other currencies.
Another macroeconomic factor supporting prices is the plan by Beijing and Washington to resume talks to resolve a trade war that has hit economic growth prospects.
"Trade anxiety has died down, pushing energy prices higher as global growth will not be pressured by a prolonged tariff war," said Alfonso Esparza, senior market analyst at OANDA.
Concern about slowing economic growth and a U.S.-China trade dispute had pulled oil lower in recent weeks. That came after Brent reached a 2019-high above $75 in April.
Hedge funds and money managers raised bullish wagers on U.S. crude in the week to June 18, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday, as the tensions in the Middle East flared.
U.S. energy firms added one rig this week, increasing the number of oil rigs operating for the first time in the past three weeks. The rig count, however, is on track to decline for a seventh month in a row in June as drillers cut spending to focus more on earnings growth instead of increased output.
(Additional reporting by Roslan Khasawneh in Singapore, Aaron Sheldrick in Tokyo, Dmitry Zhdannikov in London and Jessica Resnick-Ault in New York; Editing by Marguerita Choy and Mark Potter) |
U.S. oil soars 10% in week on fears of U.S.-Iran conflict
By Jessica Resnick-Ault
NEW YORK (Reuters) - Oil futures rallied on Friday with U.S. crude up 10% in the week and global benchmark Brent gaining 5% on fears of a U.S. military attack on Iran that would disrupt flows from the Middle East, which provides more than a fifth of the world's oil output.
"A lot of the oil produced in the world comes from very troubled areas, and occasionally we get reminders of that," said Gene McGillian, vice president at Tradition Energy in Stamford, Connecticut.
The rise in U.S.-Iranian tensions has largely driven the gains. An early July meeting of the Organization of the Petroleum Exporting Countries and its allies to reassess production targets and a potential softening of trade tensions between the United States and China were also supporting prices.
Brent crude was up 90 cents at $65.35 a barrel at 10:30 a.m. EDT [1430 GMT], on course for its first weekly gain in five weeks of 5.4%.
U.S. West Texas Intermediate crude was up 67 cents at$57.74 a barrel, on track for a nearly 10% increase this week.
The U.S. benchmark surged 5.4% and Brent jumped 4.3% on Thursday after Iran shot down a drone that the U.S. claimed was in international airspace and Iran said was over its own territory.
U.S. President Donald Trump said on Friday he had aborted a military strike on Iran because such a response to Tehran's downing of the unmanned U.S. surveillance drone would have caused a disproportionate loss of life.
Iranian officials told Reuters that Tehran had received a message from Trump through Oman overnight warning that a U.S. attack on Iran was imminent.
The officials said they had responded by saying that any attack would have regional and international consequences. They also said Supreme Leader Ayatollah Ali Khamenei was against talks but that they would convey the U.S. message to him.
Tensions have been on the rise since U.S. sanctions on Iran severely reduced oil exports from OPEC's third largest producer and as Washington has blamed Tehran, which denies any role, for a series of attacks on oil tankers in the Gulf.
"There is no doubt that a severe disruption to the transit of oil through this vulnerable route would be extremely serious," said consultancy FGE Energy in a note.
The demand-side outlook has also improved, with appetite for risk assets rising after the European and the U.S. central banks signaled possible rate cuts this week.
A weaker dollar also supported oil prices, making crude, usually priced in dollars, cheaper for buyers with other currencies.[/USD]
Another macroeconomic factor supporting prices is the plan by Beijing and Washington to resume talks to resolve a trade tariff war that has hit economic growth prospects.
"Trade anxiety has died down, pushing energy prices higher as global growth will not be pressured by a prolonged tariff war," said Alfonso Esparza, senior market analyst at OANDA.
Concern about slowing economic growth and a U.S.-China trade dispute had pulled oil lower in recent weeks. That came after Brent reached a 2019-high above $75 in April.
The market was also awaiting weekly data on the U.S. oil rig count, an indicator of future production. The United States has become the world's top producer but the rig count has declined over the past six months as drillers cut spending to focus more on earnings growth instead of increased output.
(INTERACTIVE GRAPHIC: U.S., Russian, Saudi crude oil production - https://tmsnrt.rs/2QYNGAd)
(Additional reporting by Roslan Khasawneh in SINGAPORE and Aaron Sheldrick in TOKYO and Dmitry Zhdannikov in London; Editing by Marguerita Choy and Mark Potter) |
Japan's Biggest IPO This Year Sees Profit in the Cards, Just Not Now
(Bloomberg) -- Sansan Inc., whose initial public offering on Wednesday was Japan’s biggest this year, plans to prioritize revenue growth rather than profitability in the near future, Chief Financial Officer Muneyuki Hashimoto said in an interview.
Sansan, which scans business cards so that people can discover who within a company knows whom, should be able to increase revenue by 30% and 50% annually, Hashimoto said. Daiwa Securities estimates that sales will rise 37% in the fiscal year ending in May 2020 and will grow 42% the following year.
Sansan raised 33.8 billion yen ($315 million) in the IPO, the biggest for a software company in Japan since mobile game maker Gumi Inc. went public in 2014. The shares soared 21% on its first day of trading Wednesday on the Tokyo Stock Exchange, underscoring investor optimism in its prospects. They climbed as much as 4.6% on Friday.
“The decision to go public was in part driven by the confidence that we can reach profitability while still continuing to invest,” Hashimoto said. “That’s not far off.”
He declined to give a specific timeline, saying the company plans to address the issue during the earnings announcement on July 12. Sansan has forecast an operating loss of 938 million yen for the year that just ended in May, as revenue climbs 38% to 10 billion yen. Daiwa analysts Taro Ishihara and Marina Oyama wrote in a report that the company will turn profitable this fiscal period thanks to a drop in advertising spending.
Sansan operates two businesses. The eponymous Sansan unit, serving over 5,700 corporations accounts for more than 90% of its revenue and is profitable. The cloud-based software can generate sales leads, or suggest go-betweens for any business deals by tracking relationships that are forged every time a card changes hands. A service called Eight targets individuals and small companies and has more than 2 million users.
“Sansan is the company that created this space,” said Osuke Honda, a general partner at DCM Ventures, an early investor in the company and its biggest outside shareholder. “They are an absolute leader.”
The Tokyo-based company dominates the business-card management market in Japan with about 80% share. Rather than chasing a bigger portion of the pie, Hashimoto said the focus is on expanding the market itself. He estimates that for companies with over 1,000 employees about one in 10 is a Sansan customer, but only 1% of their staff make use of the service.
“Right now the users are heavily sales staff, secretaries and executives,” Hashimoto said. “To make the service part of the infrastructure we need to get to rank-and-file and reach 10% or 20%.”
(Updates with share reaction in third paragraph. An earlier version of this story was corrected to fix the currency conversion in the third paragraph.)
To contact the reporters on this story: Pavel Alpeyev in Tokyo at palpeyev@bloomberg.net;Kazu Hirano in Tokyo at khirano1@bloomberg.net
To contact the editors responsible for this story: Edwin Chan at echan273@bloomberg.net, Peter Elstrom
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
Oil climbs on Iran tensions, stocks edge back from seven-week highs
By Lewis Krauskopf
NEW YORK (Reuters) - Oil prices added to recent gains on Friday on fears any U.S. military attack on Iran would disrupt flows of crude from the Middle East, while a gauge of global stock markets edged back from seven-week highs following a run-up spurred by optimism over monetary policy.
Gold prices rose to near six-year highs. The dollar fell to a three-month low against a basket of currencies.
Central banks have dominated economic news this week, with the Federal Reserve signaling the potential for a U.S. interest rate cut later this year and the European Central Bank hinting at stimulus measures.
MSCI's gauge of stocks across the globe shed 0.10%, after a day earlier reaching its highest since May 1.
U.S.-China trade tensions were also in focus ahead of an expected meeting between the countries' two leaders next week at a G20 meeting in Osaka, Japan.
U.S. stocks were supported by news that U.S. Vice President Mike Pence called off a planned China speech that had been initially cast as a sequel to a blistering broadside he delivered in October, a move aimed at averting increasing tensions with Beijing.
“Having an accommodative interest rate outlook is a positive for the markets, but now investors are looking for direction on trade,” said Christopher O’Keefe, portfolio manager at Logan Capital Management in Ardmore, Pennsylvania.
"For the market to meaningfully move forward from here you have to have some positive outcome on trade."
On Wall Street, the Dow Jones Industrial Average fell 33.84 points, or 0.13%, to 26,719.33, the S&P 500 lost 3.68 points, or 0.12%, to 2,950.5 and the Nasdaq Composite dropped 19.63 points, or 0.24%, to 8,031.71.
The pan-European STOXX 600 index lost 0.36%.
Trump said he had aborted a military strike on Iran because such a response to Tehran's downing of an unmanned U.S. surveillance drone would have caused a disproportionate loss of life.
Spot gold added 0.8% to $1,399.05 an ounce, surpassing the $1,400 level during the session.
"There is a perfect mix of ingredients for gold's rush to the top - a weak macroeconomic environment, low bond yields, soft dollar and rising geopolitical tensions," said Howie Lee, an economist at OCBC Bank.
Oil futures rallied on fears of disruption to flows in the Middle East, which provides more than a fifth of the world's oil output.
U.S. crude settled up 0.6% at $57.43 a barrel, and Brent settled at $65.20, up 1.2%.
Government bond yields in the United States and Europe rose but remained near record or multi-year lows after the dovish statements from the central banks.
Benchmark 10-year U.S. Treasury notes last fell 17/32 in price to yield 2.0591%, from 2.001% late on Thursday.
The dollar index, which measures the greenback against a basket of currencies, fell 0.44%, falling to a three-month low, with the euro up 0.66% to $1.1366.
(Additional reporting by Jessica Resnick-Ault in New York, Abhinav Ramnarayan in London and Eileen Soreng in Bengaluru, editing by Susan Thomas and James Dalgleish) |
Before You Buy Huazhang Technology Holding Limited (HKG:1673), Consider Its Volatility
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If you own shares in Huazhang Technology Holding Limited (HKG:1673) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. In finance, Beta is a measure of volatility. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. First, we have company specific volatility, which is the price gyrations of an individual stock. Holding at least 8 stocks can reduce this kind of risk across a portfolio. The second sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market.
Some stocks see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated price movements. Beta is a widely used metric to measure a stock's exposure to market risk (volatility). Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. The first thing to understand about beta is that the beta of the overall market is one. A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.
See our latest analysis for Huazhang Technology Holding
Looking at the last five years, Huazhang Technology Holding has a beta of 0.90. The fact that this is well below 1 indicates that its share price movements haven't historically been very sensitive to overall market volatility. This means that -- if history is a guide -- buying the stock would reduce the impact of overall market volatility in many portfolios (depending on the beta of the portfolio, of course). Many would argue that beta is useful in position sizing, but fundamental metrics such as revenue and earnings are more important overall. You can see Huazhang Technology Holding's revenue and earnings in the image below.
Huazhang Technology Holding is a noticeably small company, with a market capitalisation of HK$2.7b. Most companies this size are not always actively traded. It is not unusual for very small companies to have a low beta value, especially if only low volumes of shares are traded. Even when they are traded more actively, the share price is often more susceptible to company specific developments than overall market volatility.
The Huazhang Technology Holding doesn't usually show much sensitivity to the broader market. This could be for a variety of reasons. Typically, smaller companies have a low beta if their share price tends to move a lot due to company specific developments. Alternatively, an strong dividend payer might move less than the market because investors are valuing it for its income stream. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as Huazhang Technology Holding’s financial health and performance track record. I urge you to continue your research by taking a look at the following:
1. Future Outlook: What are well-informed industry analysts predicting for 1673’s future growth? Take a look at ourfree research report of analyst consensusfor 1673’s outlook.
2. Past Track Record: Has 1673 been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look atthe free visual representations of 1673's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how 1673 measures up against other companies on valuation. You could start with thisfree list of prospective options.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Calculating The Intrinsic Value Of JBM Auto Limited (NSE:JBMA)
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In this article we are going to estimate the intrinsic value of JBM Auto Limited (NSE:JBMA) by projecting its future cash flows and then discounting them to today's value. I will use the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model.
View our latest analysis for JBM Auto
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars:
[{"": "Levered FCF (\u20b9, Millions)", "2019": "\u20b9-103.86", "2020": "\u20b91.32k", "2021": "\u20b91.37k", "2022": "\u20b91.44k", "2023": "\u20b91.53k", "2024": "\u20b91.64k", "2025": "\u20b91.75k", "2026": "\u20b91.87k", "2027": "\u20b92.01k", "2028": "\u20b92.16k"}, {"": "Growth Rate Estimate Source", "2019": "Est @ 4.93%", "2020": "Analyst x1", "2021": "Analyst x1", "2022": "Est @ 5.72%", "2023": "Est @ 6.27%", "2024": "Est @ 6.65%", "2025": "Est @ 6.92%", "2026": "Est @ 7.11%", "2027": "Est @ 7.24%", "2028": "Est @ 7.33%"}, {"": "Present Value (\u20b9, Millions) Discounted @ 20.43%", "2019": "\u20b9-86.24", "2020": "\u20b9906.75", "2021": "\u20b9782.16", "2022": "\u20b9686.62", "2023": "\u20b9605.89", "2024": "\u20b9536.59", "2025": "\u20b9476.42", "2026": "\u20b9423.74", "2027": "\u20b9377.35", "2028": "\u20b9336.33"}]
Present Value of 10-year Cash Flow (PVCF)= ₹5.05b
"Est" = FCF growth rate estimated by Simply Wall St
After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 7.6%. We discount the terminal cash flows to today's value at a cost of equity of 20.4%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = ₹2.2b × (1 + 7.6%) ÷ (20.4% – 7.6%) = ₹18b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= ₹₹18b ÷ ( 1 + 20.4%)10= ₹2.81b
The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is ₹7.86b. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of ₹192.67. Compared to the current share price of ₹227.9, the company appears around fair value at the time of writing. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.
Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at JBM Auto as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 20.4%, which is based on a levered beta of 1.497. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Although the valuation of a company is important, it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For JBM Auto, I've put together three relevant aspects you should further research:
1. Financial Health: Does JBMA have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Future Earnings: How does JBMA's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with ourfree analyst growth expectation chart.
3. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of JBMA? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NSE every day. If you want to find the calculation for other stocks justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
iboss on Factors Driving Government Adoption of Cloud-Based Solutions
BOSTON, MA / ACCESSWIRE / June 20, 2019 /Governments are expected to be smooth-running machines, operating at the highest level of efficiency while minding budgetary constraints. Community service has always been a resource-intensive duty, but the remarkable progress in technology over the past few decades has delivered incredible benefits both to the private and public sectors. Cloud computing, one of the most impactful developments in the digital age, has emerged as a primary helper to state institutions in their drive to streamline operations, improve civic services, enhance data security, reduce waste, and cut costs. While governments were slower than enterprises in embracing the cloud, they seem to be catching up quickly.According to some industryparticipants, the US public sector is adopting cloud solutions at a faster pace than private sector operators. Gartner estimates thatnearly 50% of government organizationsare active cloud users and forecasts a double-digit growth rate for adoption through 2021. Driven by the imperatives of the ongoing digital transformation, both local and national agencies are set to continue their migration to the cloud, says leading cybersecurity solutions provideriboss.
According to P&S Market Research, theglobal government cloud marketwill be worth $49.2 billion by 2023. This report points to several factors influencing investment, most notably the aim of ICT executives to procure solutions that allow quick and efficient reactions to public concerns while minimizing pressures. As P&S notes, "Helping such executives in adapting to changes with less trouble and expense is one of the major factors driving the government cloud market. The improved agility and adaptability through the adoption of cloud by government agencies include further motivating factors such as virtualized resources, elastic services, faster deployment, and increased flexibility." Gartner also points to greater service efficiency and cost-savings as key growth drivers for the government cloud market. The research group predicts that investment will increase by 17.1% on average annually through 2021.
The United States is witnessing a marked acceleration in cloud adoption by federal and local agencies,ibossnotes. Although the Obama administration launched the so-calledCloud First Initiativein 2011, it took about five years for any detectable progress to be made. However, the adoption rate has started rising strongly, especially in the past year. A Bloomberg analysis indicates that fiscal 2018 is setto emerge as a record yearfor government spending on cloud services, with contract obligations about 32% higher in what would be the eighth consecutive year of growth. According to the study, the figure is expected to increase from $4.9 billion in 2017 to $6.5 billion this year and continue upward in 2019.In comments on the analysis, Gary Wang, Unisys Federal VP of cloud and infrastructure services, told Federal News Radio, "Almost every agency is talking publicly about migrating and leveraging the cloud, especially around transformation and modernization of IT. This is really an inflection point for cloud, and we expect to see more and more of this."
ibossis a cloud security company that provides organizations and their employees secure access to the Internet on any device, from any location, in the cloud. This eliminates the need for traditional security appliances, which are ineffective at protecting a cloud-first and mobile world. Leveraging a purpose-built cloud architecture backed by over 100 patents and over 100 points of presence globally, iboss protects more than 4,000 organizations worldwide. In recognition for its pioneering work, the company has been named a Visionary for two consecutive years in the Gartner Magic Quadrant for Secure Web Gateways.
Cloud Internet Security - iboss cloud - iboss:https://www.iboss.com
iboss Discusses Growth Projections for Global Cyber Security Market:https://finance.yahoo.com/news/iboss-discusses-growth-projections-global-015000481.html
Eliminate Secure Web Gateway Appliances - iboss:https://www.iboss.com/platform/eliminate-swg-appliances/
Contact Information:
iboss
Chris Liva
Chris.liva@iboss.com
https://www.iboss.com
SOURCE:iboss
View source version on accesswire.com:https://www.accesswire.com/549429/iboss-on-Factors-Driving-Government-Adoption-of-Cloud-Based-Solutions |
Erika Girardi Nonchalantly Bends Over Naked During Meeting: 'Business Casual'
Erika Girardi has a very interesting interpretation of what it means to dress business casual. On Thursday, The Real Housewives of Beverly Hills star, 47, shared an Instagram photo of herself from a meeting , which shows her wearing nothing but her birthday suit. “Business casual,” Girardi captioned the post of her nonchalantly bending over completely naked. The photo has received a significant amount of praise with Girardi’s RHOBH costar Dorit Kemsley writing, “You’re good! 🍎🙌🏼.” Actress January Jones was also a fan of the post as she commented “Hero. 👌🏻” Khloé Kardashian showed her admiration for the shot by simply liking it. The steamy post comes after Girardi shared a sexy photo of her lounging on a pool chair in a sexy one-piece swimsuit. View this post on Instagram Business casual. A post shared by Erika Jayne (@theprettymess) on Jun 20, 2019 at 7:10am PDT RELATED: RHOBH : Erika Girardi Storms Out as Kyle Richards Accuses Her of ‘Being in a Bad Mood All the Time’ “Mykonos sunrise…” Girardi captioned the photo, which was shared on Wednesday. One day before that, Girardi shared another naked photo , but this time it was shot her posing alongside comedian Celeste Barber. In the photo, Girardi can be seen facing the camera with star emojis covering her private areas. Barber, clearly trolling the Bravo star, also posed naked but used a hamburger emoji, a frog emoji and a stressed face emoji to cover her. Former Housewives star Eileen Davidson previously recreated Girardi’s photo and commented: “Hahaha I did it first!!” View this post on Instagram #Repost @celestebarber ・・・ Tequila made me do it. #celestechallengeaccepted #celestebarber #funny A post shared by Erika Jayne (@theprettymess) on Jun 19, 2019 at 5:20pm PDT While Girardi, who is also known by her stage name Erika Jayne, is often complimented for her bold posts, not everyone is nice about her appearance. Back in March, Girardi clapped back after a Twitter user attempted to shame her by posing a photo of the star without makeup and referencing legal action involving her husband Thomas Girardi. RELATED: Erika Girardi on Painful Past — and Realizing She Was in a ‘Wealthy Coma’ After Marriage “The face you have to wear when Papa Tom cuts your allowance due to his lawsuits,” the user wrote. Erika Jayne “Actually this is me after a facial with no makeup and no, I’m not ashamed to be 47,” Girardi replied. Girardi’s fans stuck up for her in the replies of the tweet. One user said, “Still looks better than most at 21,” while another chimed in, “When someone tries to roast you but only shows how hot you truly are.” View comments |
What E3 Taught Us About the Future of Cloud Gaming
There were plenty of familiar faces at this year's edition of E3, including gaming titansMicrosoft(NASDAQ: MSFT)andSony(NYSE: SNE). But not all the big announcements have come from the gaming industry's old guard:Alphabet(NASDAQ: GOOG)(NASDAQ: GOOGL)made a splash when it revealed new details about its cloud gaming platform, Stadia.
The attention being paid to Google's announcements is indicative of the increasing interest in gaming's likely cloud-based future. The old guard was expected to address cloud gaming, too, and what Microsoft and Sony said (and didn't say) about it is just as important as what Google shared. Here is what we've learned so far at E3.
Image source: Getty Images
Google shared new details about Stadia at E3. We now know the price of a Stadia controller ($69, which doesn't include the price of the Chromecast that puts Stadia games on TV screens) and Google's subscription gaming service ($10 per month). But the most interesting thing that Google revealed in its Stadia presentation was that Google's service will not be the only one on Stadia. Other developers will be releasing subscription services that will be compatible with Google's platform or hardware. It will also be possible to buy individual games, though no pricing details on those have been released yet.As I wrote previously, this suggests that it may be less important to ask which service will be the "Netflixof gaming" than to ask which service might become the "AmazonChannels of gaming."
Hot on the heels of Google's platform-focused announcement, French video game publisherUbisoftannounced that it would be among the companies offering video game streaming on Stadia. Ubisoft's service, UPlay Plus, will work on PCs, too. Like Ubisoft, private company Bethesda used its time at E3 to share plans for a video game streaming service -- Bethesda says their offering "can be used with any streaming platform."
The focus on Amazon, Google, Microsoft, and Sony is understandable, but cloud gaming will clearly be a crowded and diverse marketplace.
Microsoft's xCloud is still very much a part of the company's gaming future, but that future still feels a little bit distant -- Microsoft has shown the press mobile devices playing Xbox games but not much else. xCloud does not appear to be anywhere near as far along in its development as Stadia is.
Microsoft's big E3 reveal was "Project Scarlett," a new video game console that will be the heir to Microsoft's current-gen Xbox One. Though Microsoftwent all-digital with a recent mid-gen refresh of the Xbox One, its next-gen console will have a disc drive. The new console boasts eyebrow-raising specs. No word yet on what it will cost (or even on its real name), but it sure doesn't look likely to be available at anything close to Stadia's $69 price point.
Sony, too, is sticking with beefy hardware and a disc drive. Like Microsoft, Sony is working to shore up its cloud gaming offerings (in fact,Sony is workingwithMicrosoft to do that), but the company clearly thinks that there will still be a big market for traditional game consumption at the time that the next generation of consoles launches.
We know that Google believes the cloud future of gaming is now, and that Sony and Microsoft believe they still have some time. We also know that there will be plenty of companies competing in the streaming video game marketplace, and that platforms like Stadia may be able to make money in much the way thatApplehas through its platform tax. But we don't yet know how all of this will shake out. If Microsoft and Sony can ease their fan bases into streaming and keep them loyal in the process, that will be good news, but if Stadia's platform becomes the go-to place for top third-party publishers, gamers might find the $69 price tag too good to resist.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors.Stephen Lovelyowns shares of Amazon, Apple, and Netflix. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Microsoft, and Netflix. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool has adisclosure policy. |
2019 Women's World Cup: USWNT facing tough lineup question
LE HAVRE, France — Sweden was supposed to be the squad that would finally bring the high-flying United States women’s national team back down to earth at this World Cup. Instead, the Americans cruised to their third consecutive group stage victory – a first for the most successful program in tournament history – with a surprisingly easy 2-0 win. Granted, the Swedes made seven lineup changes ahead of the Group F finale, because like the U.S. they had already punched their ticket to the knockout round. Yet the lack of resistance from the team that eliminated the defending World Cup champions from the 2016 Olympics was startling, especially with rugged defensive midfielder Julie Ertz sitting out with a hip ailment and star striker Alex Morgan – who entered the match tied with Australia’s Sam Kerr for the scoring lead at France 2019 – pulled midway through the contest as a precaution after getting kicked in the leg in the first half. “This was fantastic game for us,” U.S. coach Jill Ellis said afterward. “When you come out of the group stage, a lot of what we talk about is mentality and being healthy and I think we’re in a really good place.” The performance reinforced the USA’s status as the title favorite. It also left Ellis with a high-quality problem: Who will she start in Monday’s round of 16 encounter against Spain? Ertz and Morgan are expected to start the match in Reims. Both would’ve gone the distance had this been an elimination match. The fact that it wasn’t was precisely why they were rested. Now, though, it’s all feet on deck. That means at least one of Thursday’s starters will likely move to the bench. And the leading candidate is probably World Cup rookie Samatha Mewis, who has been one of Ellis’ best players so far. Samantha Mewis was great for the United States in the group stage. Is there room for her with everyone fully fit? (Getty) Mewis took Ertz’s usual spot in front of the back line against the Swedes, just as she had in the opener against Thailand when Ertz replaced the injured Becky Sauerbrunn at center back. She assisted on Lindsey Horan’s goal less than three minutes in – the earliest of the competition – and was dominant in the middle of the field the rest of the way. Story continues “She just offers something elevated in that position. She can break lines on the dribble, she break lines on the pass, and she’s got a shot that I’ve been on the end of a few times and she can really get a hold of it,” said Sauerbrunn, who reclaimed her spot for the last two games after returning to fitness. “She just offers a lot of different things so it’s nice to have her in the middle of the field, because you never know how a team is going to defend against her.” Mewis wasn’t necessarily projected as a starter before the tournament, despite her lights-out form in the lead-up to the World Cup. Now, she’s at the very least given Ellis something to think about. “At this point, just having the depth that we need, especially in that midfield with legs, I think that’s important,” Ellis said. “We’re going to need legs.” They’re also going to need to keep improving. As good as this game was, there’s still a feeling the U.S. hasn’t hit its ceiling. That’s a scary thought for the 15 other teams that remain in contention for the trophy. If FIFA’s top-ranked side gets past Spain, that much-talked about quarterfinal against the host nation will follow provided France — which was far from convincing in its last two outings — gets past Brazil. Ellis and Co. aren’t looking that far ahead. But after dispatching Sweden, one gets the sense they are eager to welcome all comers. “I think if you’re scared to play a team in the World Cup,” midfielder Rose Lavelle said, “you honestly don’t deserve to win it.” 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 |
When Will Ascletis Pharma Inc. (HKG:1672) Become Profitable?
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Ascletis Pharma Inc.'s (HKG:1672): Ascletis Pharma Inc., a biotechnology company, engages in the research and development, manufacturing, marketing, and sale of pharmaceutical products in the People’s Republic of China and internationally. On 31 December 2018, the HK$7.4b market-cap posted a loss of -CN¥7.3m for its most recent financial year. As path to profitability is the topic on 1672’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for 1672.
See our latest analysis for Ascletis Pharma
According to the 2 industry analysts covering 1672, the consensus is breakeven is near. They anticipate the company to incur a final loss in 2019, before generating positive profits of CN¥38m in 2020. 1672 is therefore projected to breakeven around a couple of months from now! How fast will 1672 have to grow each year in order to reach the breakeven point by 2020? Working backwards from analyst estimates, it turns out that they expect the company to grow 98% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, I won’t go into details of 1672’s upcoming projects, but, take into account that typically a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
Before I wrap up, there’s one aspect worth mentioning. 1672 currently has no debt on its balance sheet, which is rare for a loss-making biotech, which typically has high debt relative to its equity. This means that 1672 has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
This article is not intended to be a comprehensive analysis on 1672, so if you are interested in understanding the company at a deeper level, take a look at1672’s company page on Simply Wall St. I’ve also put together a list of essential aspects you should further research:
1. Historical Track Record: What has 1672's performance been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look atwho sits on Ascletis Pharma’s board and the CEO’s back ground.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Foxconn chairman hands over reins ahead of presidential bid
By Yimou Lee
TAIPEI (Reuters) - Foxconn Chairman Terry Gou said on Friday he will hand over the running of the world's largest electronics contract manufacturer to a new operations committee as he prepares to contest Taiwan's presidential elections next year.
The 68-year-old Foxconn founder was speaking at the company's annual general meeting in Taipei, where a few hundred shareholders and supporters had braved the heat to watch a live broadcast on big screens.
The Apple Inc supplier, whose full name is Hon Hai Precision Industry Co Ltd, unveiled a leadership overhaul last week with a nine-member operations committee in charge of daily operations.
Gou, who announced his presidential bid in April, told Reuters that he planned to step down from Foxconn to pave the way for younger talent to move up the ranks.
Gou is expected to retain a seat on the company's new board, but Foxconn said last week - at its first investor relations conference - that the development of his presidential bid would affect his future role in the board.
Taiwan's election follows a period of increasing tension between Beijing and Taipei, with Gou seeking to represent the China-friendly opposition Kuomintang (KMT) party.
His election bid might be weighed down by his ties to a Chinese leadership that refuses to renounce the use of force to unify with self-ruled Taiwan it considers a wayward province, analysts have said.
A new Foxconn chairman is expected to be elected at a board meeting later on Friday morning. Foxconn is poised to nominate chip unit boss Liu Young to succeed Gou, two sources with direct knowledge of the matter told Reuters in May.
Gou, who founded Foxconn 45 years ago, is Taiwan's richest person with a net worth of $7.6 billion, according to Forbes.
TRADE ANGLE
Gou's departure also comes at an uncertain time for Foxconn, which has a big roster of U.S. clients who have fallen foul of a long-running trade war between Beijing and Washington.
U.S. President Donald Trump has threatened to slap further tariffs on $300 billion worth of goods from China, where the bulk of Apple's devices are assembled. The country is also a key market for the firm.
Investors are keen to know whether Foxconn will adjust its production line for Apple and others. Nikkei Asian Review reported that Apple has asked its main suppliers to assess the cost implications of moving part of their production capacity from China to Southeast Asia.
Foxconn said last week it had enough capacity outside China to meet Apple's demand in the American market if the need should arise for the iPhone maker to adjust its production lines due to the U.S.-China trade war.
(Reporting By Yimou Lee; Writing by Sayantani Ghosh; Editing by Anne Marie Roantree and Stephen Coates) |
Escalating Their Campaign Into a Push for Political Freedom, Protesters Return to Hong Kong's Streets
Angry protesters once again stormed the political heart of Hong Kong on Friday. In a series of rolling occupations, they forced the hurried evacuation of multiple government offices and shuttering of law courts. They also surrounded police headquarters in a siege that appears set to continue into the night. The actions erupted after the embattled administration of Chief Executive Carrie Lam refused to meet an ultimatum for her resignation and the withdrawal of a divisive extradition bill. However the government issued a statement around 8:00 p.m. local time saying that when the term of the current legislature ended, the bill would “automatically expire.” The government “will accept this reality,” the statement said. Chanting a Christian hymn that has become the anthem of Hong Kong’s freedom movement, thousands of black-clad demonstrators began streaming into the forecourt of the legislature from early morning. They demanded the unconditional release of all protesters arrested to date and an investigation into the police handling of the demonstrations that have rocked the semi-autonomous enclave for the past 10 days. Shortly after 11: 00 a.m., large crowds of protesters chanting “Withdraw [the bill]!” erected barricades on Harcourt Road—a key thoroughfare in front of the government headquarters that was the center of the 2014 Umbrella Revolution . A banner hung across the road read “This Is Hong Kong Not China.” Urged by recently freed activist Joshua Wong , crowds then marched on police headquarters at Arsenal Street, just under a kilometer away. They began taunting police and chanting for the release of prisoners. Officers retreated behind metal gates as demonstrators encircled the building and dragged barriers across Hennessy Road and a part of Queensway, both vital arteries. Protesters are furious with the police over what Amnesty International alleged in a statement Friday was “unlawful use of force by police against peaceful protesters” on June 12, wounding scores. Amnesty claimed that the evidence against the Hong Kong police was “irrefutable.” Story continues On Friday, agitated demonstrators plastered police headquarters with a sign reading “Fight to the bitter end” and photographs purported to be of people injured at the earlier demonstration. Barricades were erected across main entrances to prevent officers from leaving and small side doors were sealed with zip ties. Other used ladders to reach CCTV cameras installed along the building’s walls and covered them with duct tape. Addressing the crowd through a microphone, Wong said “[Police Commissioner] Stephen Lo has to come down and face Hongkongers.” He told TIME at the scene: “It’s time for the police to apologize.” In an emotional speech that followed, democratic lawmaker Hui Chi-fung addressed protesters saying: “We’ve never had so many people surround [police] HQ. So, all the police officers here, look around at all these angry young people, those who are telling the truth. I ask you to come out immediately to face them.” Read more: Why Hong Kong’s protesters aren’t calling it quits after the suspension of a controversial extradition bill Several protesters collapsed from heat exhaustion in the oppressive June temperatures, but in general the swelling crowd appeared set for a long blockade. Wilson Chan, 25, said he would stay through the night if necessary. “If officers start firing tear gas or attacking in any way, I’ll stay behind to help others.” A section of the crowd almost forced an entry into the building when a gate jammed, but police were able to close it after what one witness described as a “dangerous situation.” Protesters then threw up barricades on Gloucester Road, a major east-west highway, and staged sit-ins in the headquarters of Hong Kong’s taxation and immigration departments, barricading themselves in the latter. People were prevented from reaching the neighboring Wanchai Law Courts. Police were conspicuously absent. “Hong Kong people aren’t protesters by nature. We enjoy having nice meals and playing computer games,” Michael, a 25-year-old protester and medical doctor told TIME. “I’d rather stay home and play computer games or listen to music, but we have no choice.” Government workers were prevented from returning to their offices after lunch and were instead called on to join the protest. Civil servants already in the buildings began evacuating as protesters politely apologized for causing them inconvenience and held signs to guide them through the crowd. One protester held up a sign that read “I know this is hard for everyone. But we’ll get through this together.” In the late afternoon, government offices on Queensway—home to several departments from transport to legal aid, marriage registration, and architectural services—were surrounded along with the city’s High Court. The Secretary for the Civil Service, Joshua Law, said that contingency plans were being put in place to enable civil servants to work elsewhere. Hong Kong’s Secretary for Justice, Teresa Cheng, meanwhile apologized for the extradition bill , saying that the government had “learned a hard lesson.” Just after 12:00 noon, police Senior Superintendent Yolanda Yu called on the crowds to peacefully end their blockade of police headquarters. Law enforcement officers said that the siege was delaying responses to emergency calls. A initial police attempt to negotiate with protesters was drowned out by angry chants and abandoned. Around 5:30 p.m., live TV close-ups showed what appeared to be a tense parley between officers and protesters across a metal barricade, but the talks broke up. ‘A long-term war’ By nightfall, the crowd had doubled in size and the atmosphere worsened as protesters donned hard hats and goggles as if preparing for a pitched battle. They began pelting the building with eggs and other objects. Democratic legislators appeared on the scene and called for calm, fearing large scale injuries should the building be stormed. Karmen, a 20-year-old student, said she did not think the government would withdraw the extradition bill, but nevertheless “even when you know what the result will be, you still have to show up to show unity. You struggle to survive before you die.” Student unions and other groups have been calling on Hongkongers to commit acts of “civil disobedience” in a movement that has widened from a protest against a divisive law into a rebellion for greater political freedom. It has also become a deepening embarrassment for Beijing. Many protesters wave the Union Jack, or the colonial Hong Kong flag, as a repudiation of Chinese sovereignty. One protester on Friday carried a banner reading “Return Hong Kong to Us.” “This is a long-term war and we need to be strategizing next steps,” said Jeff, a 24-year-old protester outside the legislature. Writing Thursday in British newspaper the Independent , Wong and fellow campaigner Alex Chow suggested that the movement’s aims were no longer confined to Hong Kong. “Our long-term hopes rely on whether we can pressurize the CCP [Chinese Communist Party] to devolve its power to the people and implement genuine electoral democracy at various administrative and community levels,” they said . “We must remember that a democratic Hong Kong could lead to a more democratic China.” Many in Taiwan likewise hope for a freer China and have been staging rallies in support of the Hong Kong demonstrations. As protesters gathered in Hong Kong Friday, a man with a microphone read aloud an anonymous message of support, sent from the island that Beijing regards as a renegade province: “Please don’t give up on what you are fighting to protect. You have awakened so many people who were asleep.” On Friday, dissident Chinese artist Ai Weiwei released a video throwing his support behind the protesters and characterizing Hong Kong’s freedom struggle as being between “a disciplined and civilized world” and “an irrational society with no principles.” ‘The situation is now at a dead end’ The latest protests follow days of unrest. On June 9, huge numbers of people —more than a million, according to organizers—marched to protest the bill, which would, for the first time, have allowed the extradition of fugitives to mainland China. The government says the bill is necessary to prevent Hong Kong from becoming a haven for criminals, but critics fear that Beijing will use it to detain political opponents and silence its many detractors in the enclave. On June 12, protests around the legislature turned violent , forcing the body, which is dominated by pro-Beijing lawmakers, to shelve a debate on the measure. More than 80 were injured in clashes with police, who used tear gas and rubber bullets to clear the streets. Lam then announced that the legislation would be postponed , but this did not pacify Hongkongers, who turned out in even greater numbers on June 16 to call for the bill’s complete withdrawal and Lam’s ouster. The march, which organizers claim was two million strong, saw the young and the elderly, political activists and business figures, religious groups and families, all take to the streets in an unprecedented show of unity. The marches forced a public apology from Lam for the extradition debacle, but it was criticized for being belated and insufficient. Protesters are now expected to step up their actions in the run up to the July 1 anniversary of the city’s return to Chinese sovereignty. A protest has also been called for June 26. One woman told TIME Friday that demonstrators needed to be “less passive and reliant on waiting for the government’s move.” Lawmaker Claudia Mo did not hold out hope for a negotiated solution. “The situation is now at a dead end,” she told local media. “Carrie Lam said she has apologized, but she is the one who caused this situation, and she must face it.” Speaking earlier in an exclusive interview with TIME, Wong said the battle was far from over. “The Hong Kong government and Beijing have turned a whole generation of students from citizens to dissidents,” he said. “I think President Xi might be really angry at how Carrie Lam generated more than a million dissidents that live in and love this place.” — With reporting by Laignee Barron, Amy Gunia, Abhishyant Kidangoor, Hillary Leung and Feliz Solomon / Hong Kong |
Here’s What Hedge Funds Think About Callon Petroleum Company (CPE)
We at Insider Monkey have gone over 738 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st. In this article, we look at what those funds think of Callon Petroleum Company (NYSE:CPE) based on that data.
Callon Petroleum Company (NYSE:CPE)has experienced an increase in support from the world's most elite money managers in recent months.CPEwas in 23 hedge funds' portfolios at the end of March. There were 22 hedge funds in our database with CPE positions at the end of the previous quarter. Our calculations also showed that cpe isn't among the30 most popular stocks among hedge funds.
In the eyes of most shareholders, hedge funds are viewed as unimportant, outdated investment tools of yesteryear. While there are more than 8000 funds trading today, Our experts choose to focus on the top tier of this group, approximately 750 funds. These money managers handle the majority of the hedge fund industry's total asset base, and by tracking their highest performing investments, Insider Monkey has discovered a number of investment strategies that have historically defeated the S&P 500 index. Insider Monkey's flagship hedge fund strategy surpassed 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.
We're going to take a look at the fresh hedge fund action surrounding Callon Petroleum Company (NYSE:CPE).
At the end of the first quarter, a total of 23 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 5% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in CPE over the last 15 quarters. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey's hedge fund database, Jonathan Barrett and Paul Segal'sLuminus Managementhas the biggest position in Callon Petroleum Company (NYSE:CPE), worth close to $64.2 million, comprising 1.4% of its total 13F portfolio. The second most bullish fund manager is Amy Minella ofCardinal Capital, with a $35.9 million position; 1.2% of its 13F portfolio is allocated to the stock. Remaining peers with similar optimism comprise Phill Gross and Robert Atchinson'sAdage Capital Management, Ken Fisher'sFisher Asset Managementand Principal Global Investors'sColumbus Circle Investors.
With a general bullishness amongst the heavyweights, key hedge funds have jumped into Callon Petroleum Company (NYSE:CPE) headfirst.Point72 Asset Management, managed by Steve Cohen, initiated the most valuable call position in Callon Petroleum Company (NYSE:CPE). Point72 Asset Management had $3.8 million invested in the company at the end of the quarter. Richard Driehaus'sDriehaus Capitalalso initiated a $2.6 million position during the quarter. The other funds with brand new CPE positions are Matthew Tewksbury'sStevens Capital Management, Matthew Hulsizer'sPEAK6 Capital Management, and Gavin Saitowitz and Cisco J. del Valle'sSpringbok Capital.
Let's also examine hedge fund activity in other stocks similar to Callon Petroleum Company (NYSE:CPE). These stocks are Ensco Rowan plc (NYSE:ESV), UP Fintech Holding Limited (NASDAQ:TIGR), Zai Lab Limited (NASDAQ:ZLAB), and Fanhua Inc. (NASDAQ:FANH). This group of stocks' market caps are closest to CPE's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ESV,21,248254,-13 TIGR,9,13631,9 ZLAB,17,166562,1 FANH,10,15212,1 Average,14.25,110915,-0.5 [/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 $111 million. That figure was $192 million in CPE's case. Ensco Rowan plc (NYSE:ESV) is the most popular stock in this table. On the other hand UP Fintech Holding Limited (NASDAQ:TIGR) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Callon Petroleum Company (NYSE:CPE) 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 CPE wasn't nearly as popular as these 20 stocks and hedge funds that were betting on CPE were disappointed as the stock returned -14.7% 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.
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Is F5 Networks, Inc. (FFIV) A Good Stock To Buy?
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 F5 Networks, Inc. (NASDAQ:FFIV).
Hedge fund interest inF5 Networks, Inc. (NASDAQ:FFIV)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 Okta, Inc. (NASDAQ:OKTA), Alliance Data Systems Corporation (NYSE:ADS), and MarketAxess Holdings Inc. (NASDAQ:MKTX) to gather more data points.
So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio.
[caption id="attachment_745225" align="aligncenter" width="473"]
Noam Gottesman, GLG Partners[/caption]
Let's analyze the recent hedge fund action regarding F5 Networks, Inc. (NASDAQ:FFIV).
Heading into the second quarter of 2019, a total of 24 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 0% from the previous quarter. By comparison, 26 hedge funds held shares or bullish call options in FFIV a year ago. With the smart money's positions undergoing their usual ebb and flow, there exists an "upper tier" of key hedge fund managers who were upping their holdings considerably (or already accumulated large positions).
The largest stake in F5 Networks, Inc. (NASDAQ:FFIV) was held byRenaissance Technologies, which reported holding $409.6 million worth of stock at the end of March. It was followed by AQR Capital Management with a $299.4 million position. Other investors bullish on the company included Arrowstreet Capital, D E Shaw, and GLG Partners.
Due to the fact that F5 Networks, Inc. (NASDAQ:FFIV) has witnessed falling interest from the entirety of the hedge funds we track, we can see that there was a specific group of money managers that elected to cut their entire stakes last quarter. Interestingly, Matthew Tewksbury'sStevens Capital Managementdropped the biggest position of the "upper crust" of funds watched by Insider Monkey, worth close to $8.5 million in stock, and Benjamin A. Smith's Laurion Capital Management was right behind this move, as the fund sold off about $7.5 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Let's now take a look at hedge fund activity in other stocks similar to F5 Networks, Inc. (NASDAQ:FFIV). We will take a look at Okta, Inc. (NASDAQ:OKTA), Alliance Data Systems Corporation (NYSE:ADS), MarketAxess Holdings Inc. (NASDAQ:MKTX), and Arconic Inc. (NYSE:ARNC). This group of stocks' market values match FFIV's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position OKTA,43,995674,3 ADS,38,1907491,-1 MKTX,15,218079,-2 ARNC,34,2519979,-12 Average,32.5,1410306,-3 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 32.5 hedge funds with bullish positions and the average amount invested in these stocks was $1410 million. That figure was $1047 million in FFIV's case. Okta, Inc. (NASDAQ:OKTA) is the most popular stock in this table. On the other hand MarketAxess Holdings Inc. (NASDAQ:MKTX) is the least popular one with only 15 bullish hedge fund positions. F5 Networks, Inc. (NASDAQ:FFIV) 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 FFIV wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); FFIV investors were disappointed as the stock returned -13.3% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2.
Disclosure: None. This article was originally published atInsider Monkey.
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Is Juniper Networks, Inc. (JNPR) A Good Stock To Buy?
You probably know from experience that there is not as much information on small-cap companies as there is on large companies. Of course, this makes it really hard and difficult for individual investors to make proper and accurate analysis of certain small-cap companies. However, well-known and successful hedge fund managers like Jeff Ubben, George Soros and Seth Klarman hold the necessary resources and abilities to conduct an extensive stock analysis on small-cap stocks, which enable them to make millions of dollars by identifying potential winners within the small-cap galaxy of stocks. This represents the main reason why Insider Monkey takes notice of the hedge fund activity in these overlooked stocks.
IsJuniper Networks, Inc. (NYSE:JNPR)undervalued? The smart money is selling. The number of long hedge fund positions dropped by 5 recently. Our calculations also showed that jnpr isn't among the30 most popular stocks among hedge funds.JNPRwas in 24 hedge funds' portfolios at the end of March. There were 29 hedge funds in our database with JNPR positions at the end of the previous quarter.
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Let's take a peek at the recent hedge fund action encompassing Juniper Networks, Inc. (NYSE:JNPR).
Heading into the second quarter of 2019, a total of 24 of the hedge funds tracked by Insider Monkey were long this stock, a change of -17% from the previous quarter. On the other hand, there were a total of 25 hedge funds with a bullish position in JNPR a year ago. With hedgies' 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).
More specifically,AQR Capital Managementwas the largest shareholder of Juniper Networks, Inc. (NYSE:JNPR), with a stake worth $160.3 million reported as of the end of March. Trailing AQR Capital Management was Two Sigma Advisors, which amassed a stake valued at $101.8 million. D E Shaw, Renaissance Technologies, and Pzena Investment Management were also very fond of the stock, giving the stock large weights in their portfolios.
Because Juniper Networks, Inc. (NYSE:JNPR) has faced a decline in interest from the entirety of the hedge funds we track, it's easy to see that there exists a select few funds that decided to sell off their entire stakes by the end of the third quarter. It's worth mentioning that John A. Levin'sLevin Capital Strategiessaid goodbye to the biggest stake of all the hedgies tracked by Insider Monkey, valued at close to $1.6 million in stock. Nick Thakore's fund,Diametric Capital, also cut its stock, about $1.4 million worth. These moves are interesting, as aggregate hedge fund interest fell by 5 funds by the end of the third quarter.
Let's check out hedge fund activity in other stocks similar to Juniper Networks, Inc. (NYSE:JNPR). These stocks are Leidos Holdings Inc (NYSE:LDOS), Qiagen NV (NYSE:QGEN), Aurora Cannabis Inc. (NYSE:ACB), and EPAM Systems Inc (NYSE:EPAM). This group of stocks' market caps are similar to JNPR's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position LDOS,21,326471,-5 QGEN,23,375552,2 ACB,11,115927,2 EPAM,21,72308,-1 Average,19,222565,-0.5 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $223 million. That figure was $731 million in JNPR's case. Qiagen NV (NYSE:QGEN) is the most popular stock in this table. On the other hand Aurora Cannabis Inc. (NYSE:ACB) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Juniper Networks, Inc. (NYSE:JNPR) 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 JNPR wasn't nearly as popular as these 20 stocks and hedge funds that were betting on JNPR were disappointed as the stock returned -4.6% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2.
Disclosure: None. This article was originally published atInsider Monkey.
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Hedge Funds Have Never Been This Bullish On Lancaster Colony Corporation (LANC)
Based on the fact that hedge funds have collectively under-performed the market for several years, it would be easy to assume that their stock picks simply aren't very good. However, our research shows this not to be the case. In fact, when it comes to their very top picks collectively, they show a strong ability to pick winning stocks. This year hedge funds' top 20 stock picks easily bested the broader market, at 18.7% compared to 12.1%, despite there being a few duds in there like Berkshire Hathaway (even their collective wisdom isn't perfect). The results show that there is plenty of merit to imitating the collective wisdom of top investors.
Lancaster Colony Corporation (NASDAQ:LANC)was in 24 hedge funds' portfolios at the end of the first quarter of 2019. LANC shareholders have witnessed an increase in hedge fund interest recently. There were 12 hedge funds in our database with LANC holdings at the end of the previous quarter. Our calculations also showed that lanc isn't among the30 most popular stocks among hedge funds.
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
We're going to review the latest hedge fund action surrounding Lancaster Colony Corporation (NASDAQ:LANC).
At the end of the first quarter, a total of 24 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 100% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards LANC over the last 15 quarters. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically,Renaissance Technologieswas the largest shareholder of Lancaster Colony Corporation (NASDAQ:LANC), with a stake worth $113.6 million reported as of the end of March. Trailing Renaissance Technologies was Fisher Asset Management, which amassed a stake valued at $72.9 million. AQR Capital Management, Citadel Investment Group, and Royce & Associates were also very fond of the stock, giving the stock large weights in their portfolios.
As one would reasonably expect, key money managers have been driving this bullishness.Millennium Management, managed by Israel Englander, assembled the most valuable position in Lancaster Colony Corporation (NASDAQ:LANC). Millennium Management had $9.7 million invested in the company at the end of the quarter. Michael Gelband'sExodusPoint Capitalalso made a $4 million investment in the stock during the quarter. The other funds with brand new LANC positions are Matthew Tewksbury'sStevens Capital Management, Dmitry Balyasny'sBalyasny Asset Management, and Paul Marshall and Ian Wace'sMarshall Wace LLP.
Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Lancaster Colony Corporation (NASDAQ:LANC) but similarly valued. These stocks are Kinross Gold Corporation (NYSE:KGC), Lumentum Holdings Inc (NASDAQ:LITE), PS Business Parks Inc (NYSE:PSB), and Smartsheet Inc. (NYSE:SMAR). This group of stocks' market values are closest to LANC's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position KGC,19,318872,2 LITE,31,534593,0 PSB,12,53680,0 SMAR,30,568636,13 Average,23,368945,3.75 [/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 $369 million. That figure was $285 million in LANC's case. Lumentum Holdings Inc (NASDAQ:LITE) is the most popular stock in this table. On the other hand PS Business Parks Inc (NYSE:PSB) is the least popular one with only 12 bullish hedge fund positions. Lancaster Colony Corporation (NASDAQ:LANC) 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 LANC wasn't nearly as popular as these 20 stocks and hedge funds that were betting on LANC were disappointed as the stock returned -8.2% 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.
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Is Sempra Energy (SRE) A Good Stock To Buy?
Hedge funds are known to underperform the bull markets but that's not because they are terrible at stock picking. Hedge funds underperform because their net exposure in only 40-70% and they charge exorbitant fees. No one knows what the future holds and how market participants will react to the bountiful news that floods in each day. However, hedge funds' consensus picks on average deliver market beating returns. For example in the first 5 months of this year through May 30th the Standard and Poor’s 500 Index returned approximately 12.1% (including dividend payments). Conversely, hedge funds’ top 20 large-cap stock picks generated a return of 18.7% during the same 5-month period, with the majority of these stock picks outperforming the broader market benchmark. Interestingly, an average long/short hedge fund returned only a fraction of this value due to the hedges they implemented and the large fees they charged. If you pay attention to the actual hedge fund returns versus the returns of their long stock picks, you might believe that it is a waste of time to analyze hedge funds' purchases. We know better. That's why we scrutinize hedge fund sentiment before we invest in a stock like Sempra Energy (NYSE:SRE).
Sempra Energy (NYSE:SRE)shareholders have witnessed a decrease in hedge fund interest in recent months. Our calculations also showed that SRE isn't among the30 most popular stocks among hedge funds.
So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio.
Let's take a look at the latest hedge fund action surrounding Sempra Energy (NYSE:SRE).
At the end of the first quarter, a total of 31 of the hedge funds tracked by Insider Monkey were long this stock, a change of -9% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in SRE over the last 15 quarters. With hedge funds' sentiment swirling, there exists an "upper tier" of notable hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).
Among these funds,Elliott Managementheld the most valuable stake in Sempra Energy (NYSE:SRE), which was worth $1428.5 million at the end of the first quarter. On the second spot was Zimmer Partners which amassed $1030.1 million worth of shares. Moreover, Electron Capital Partners, Citadel Investment Group, and AQR Capital Management were also bullish on Sempra Energy (NYSE:SRE), allocating a large percentage of their portfolios to this stock.
Judging by the fact that Sempra Energy (NYSE:SRE) has witnessed bearish sentiment from the smart money, we can see that there was a specific group of fund managers that slashed their entire stakes last quarter. It's worth mentioning that Jonathan Barrett and Paul Segal'sLuminus Managementsold off the biggest stake of all the hedgies followed by Insider Monkey, valued at about $18.5 million in stock. Matthew Hulsizer's fund,PEAK6 Capital Management, also said goodbye to its stock, about $3.7 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest was cut by 3 funds last quarter.
Let's now review hedge fund activity in other stocks similar to Sempra Energy (NYSE:SRE). We will take a look at Ross Stores, Inc. (NASDAQ:ROST), Ford Motor Company (NYSE:F), V.F. Corporation (NYSE:VFC), and SYSCO Corporation (NYSE:SYY). All of these stocks' market caps are similar to SRE's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ROST,29,907288,-4 F,33,1106452,0 VFC,29,1091453,2 SYY,36,2944902,2 Average,31.75,1512524,0 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 31.75 hedge funds with bullish positions and the average amount invested in these stocks was $1513 million. That figure was $2902 million in SRE's case. SYSCO Corporation (NYSE:SYY) is the most popular stock in this table. On the other hand Ross Stores, Inc. (NASDAQ:ROST) is the least popular one with only 29 bullish hedge fund positions. Sempra Energy (NYSE:SRE) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. A small number of hedge funds were also right about betting on SRE as the stock returned 4.5% during the same time frame and outperformed the market by an even larger margin.
Disclosure: None. This article was originally published atInsider Monkey.
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Here’s What Hedge Funds Think About PRA Health Sciences Inc (PRAH)
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 PRA Health Sciences Inc (NASDAQ:PRAH).
PRA Health Sciences Inc (NASDAQ:PRAH)investors should be aware of an increase in hedge fund sentiment in recent months. Our calculations also showed that prah 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.
[caption id="attachment_30621" align="aligncenter" width="487"]
Cliff Asness of AQR Capital Management[/caption]
We're going to take a look at the new hedge fund action encompassing PRA Health Sciences Inc (NASDAQ:PRAH).
At Q1's end, a total of 28 of the hedge funds tracked by Insider Monkey were long this stock, a change of 12% from one quarter earlier. By comparison, 25 hedge funds held shares or bullish call options in PRAH a year ago. With hedgies' sentiment swirling, there exists a select group of notable hedge fund managers who were upping their stakes substantially (or already accumulated large positions).
Among these funds,AQR Capital Managementheld the most valuable stake in PRA Health Sciences Inc (NASDAQ:PRAH), which was worth $199 million at the end of the first quarter. On the second spot was Polar Capital which amassed $54.4 million worth of shares. Moreover, Citadel Investment Group, Rock Springs Capital Management, and Redmile Group were also bullish on PRA Health Sciences Inc (NASDAQ:PRAH), allocating a large percentage of their portfolios to this stock.
Now, specific money managers have been driving this bullishness.Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, created the largest position in PRA Health Sciences Inc (NASDAQ:PRAH). Arrowstreet Capital had $3.4 million invested in the company at the end of the quarter. Matthew Hulsizer'sPEAK6 Capital Managementalso initiated a $2.3 million position during the quarter. The other funds with brand new PRAH positions are Jeffrey Talpins'sElement Capital Management, Matthew Hulsizer'sPEAK6 Capital Management, and Andrew Feldstein and Stephen Siderow'sBlue Mountain Capital.
Let's also examine hedge fund activity in other stocks - not necessarily in the same industry as PRA Health Sciences Inc (NASDAQ:PRAH) but similarly valued. These stocks are Ceridian HCM Holding Inc. (NYSE:CDAY), Universal Display Corporation (NASDAQ:OLED), Sealed Air Corporation (NYSE:SEE), and Liberty Property Trust (NYSE:LPT). This group of stocks' market values are similar to PRAH's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CDAY,30,987099,13 OLED,18,133100,8 SEE,29,1118989,-2 LPT,19,215440,0 Average,24,613657,4.75 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 24 hedge funds with bullish positions and the average amount invested in these stocks was $614 million. That figure was $412 million in PRAH's case. Ceridian HCM Holding Inc. (NYSE:CDAY) is the most popular stock in this table. On the other hand Universal Display Corporation (NASDAQ:OLED) is the least popular one with only 18 bullish hedge fund positions. PRA Health Sciences Inc (NASDAQ:PRAH) 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 PRAH wasn't nearly as popular as these 20 stocks and hedge funds that were betting on PRAH were disappointed as the stock returned -20.9% 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.
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Here’s What Hedge Funds Think About National Instruments Corporation (NATI)
We at Insider Monkey have gone over 738 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st. In this article, we look at what those funds think of National Instruments Corporation (NASDAQ:NATI) based on that data.
IsNational Instruments Corporation (NASDAQ:NATI)undervalued? The smart money is selling. The number of bullish hedge fund bets fell by 1 in recent months. Our calculations also showed that nati isn't among the30 most popular stocks among hedge funds.
Why do we pay any attention at all to hedge fund sentiment? Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Let's analyze the key hedge fund action regarding National Instruments Corporation (NASDAQ:NATI).
Heading into the second quarter of 2019, a total of 28 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -3% from the previous quarter. By comparison, 23 hedge funds held shares or bullish call options in NATI a year ago. With hedge funds' sentiment swirling, there exists an "upper tier" of notable hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).
More specifically,Bares Capital Managementwas the largest shareholder of National Instruments Corporation (NASDAQ:NATI), with a stake worth $185.3 million reported as of the end of March. Trailing Bares Capital Management was Royce & Associates, which amassed a stake valued at $87.3 million. Arrowstreet Capital, Praesidium Investment Management Company, and Citadel Investment Group were also very fond of the stock, giving the stock large weights in their portfolios.
Because National Instruments Corporation (NASDAQ:NATI) has experienced declining sentiment from hedge fund managers, it's easy to see that there is a sect of funds that decided to sell off their positions entirely last quarter. Interestingly, Fred Cummings'sElizabeth Park Capital Managementcut the biggest investment of all the hedgies tracked by Insider Monkey, worth an estimated $11.3 million in stock. Dmitry Balyasny's fund,Balyasny Asset Management, also dropped its stock, about $5.3 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest was cut by 1 funds last quarter.
Let's now review hedge fund activity in other stocks - not necessarily in the same industry as National Instruments Corporation (NASDAQ:NATI) but similarly valued. We will take a look at Healthcare Trust Of America Inc (NYSE:HTA), Assurant, Inc. (NYSE:AIZ), Nektar Therapeutics (NASDAQ:NKTR), and BOK Financial Corporation (NASDAQ:BOKF). This group of stocks' market caps are closest to NATI's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position HTA,19,458711,2 AIZ,39,617750,8 NKTR,17,252184,-3 BOKF,16,215649,-3 Average,22.75,386074,1 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 22.75 hedge funds with bullish positions and the average amount invested in these stocks was $386 million. That figure was $605 million in NATI's case. Assurant, Inc. (NYSE:AIZ) is the most popular stock in this table. On the other hand BOK Financial Corporation (NASDAQ:BOKF) is the least popular one with only 16 bullish hedge fund positions. National Instruments Corporation (NASDAQ:NATI) 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 NATI wasn't nearly as popular as these 20 stocks and hedge funds that were betting on NATI were disappointed as the stock returned -11.1% 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.
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Here’s What Hedge Funds Think About Toll Brothers Inc (TOL)
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 Toll Brothers Inc (NYSE:TOL) to find out whether it was one of their high conviction long-term ideas.
Toll Brothers Inc (NYSE:TOL)shares haven't seen a lot of action during the first quarter. Overall, hedge fund sentiment was unchanged. The stock was in 28 hedge funds' portfolios at the end of the first quarter of 2019. The level and the change in hedge fund popularity aren't the only variables you need to analyze to decipher hedge funds' perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That's why at the end of this article we will examine companies such as Bilibili Inc. (NASDAQ:BILI), Oshkosh Corporation (NYSE:OSK), and National Fuel Gas Company (NYSE:NFG) to gather more data points.
Why do we pay any attention at all to hedge fund sentiment? Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Let's take a look at the recent hedge fund action encompassing Toll Brothers Inc (NYSE:TOL).
Heading into the second quarter of 2019, a total of 28 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 0% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards TOL over the last 15 quarters. With hedge funds' positions undergoing their usual ebb and flow, there exists an "upper tier" of key hedge fund managers who were boosting their stakes meaningfully (or already accumulated large positions).
The largest stake in Toll Brothers Inc (NYSE:TOL) was held byGreenhaven Associates, which reported holding $157.1 million worth of stock at the end of March. It was followed by AQR Capital Management with a $68.3 million position. Other investors bullish on the company included D E Shaw, Citadel Investment Group, and Renaissance Technologies.
Because Toll Brothers Inc (NYSE:TOL) has experienced declining sentiment from the aggregate hedge fund industry, it's safe to say that there were a few money managers that decided to sell off their entire stakes last quarter. At the top of the heap, Anthony Bozza'sLakewood Capital Managementsaid goodbye to the largest stake of the "upper crust" of funds monitored by Insider Monkey, worth an estimated $24.9 million in stock, and Paul Marshall and Ian Wace's Marshall Wace LLP was right behind this move, as the fund cut about $10.8 million worth. These moves are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let's now review hedge fund activity in other stocks - not necessarily in the same industry as Toll Brothers Inc (NYSE:TOL) but similarly valued. These stocks are Bilibili Inc. (NASDAQ:BILI), Oshkosh Corporation (NYSE:OSK), National Fuel Gas Company (NYSE:NFG), and Huntsman Corporation (NYSE:HUN). This group of stocks' market valuations are closest to TOL's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position BILI,22,448742,2 OSK,24,353710,-5 NFG,16,236763,0 HUN,35,470004,9 Average,24.25,377305,1.5 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 24.25 hedge funds with bullish positions and the average amount invested in these stocks was $377 million. That figure was $390 million in TOL's case. Huntsman Corporation (NYSE:HUN) is the most popular stock in this table. On the other hand National Fuel Gas Company (NYSE:NFG) is the least popular one with only 16 bullish hedge fund positions. Toll Brothers Inc (NYSE:TOL) 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 TOL wasn't nearly as popular as these 20 stocks and hedge funds that were betting on TOL were disappointed as the stock returned -1.7% 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.
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Is Nuance Communications Inc. (NUAN) A Good Stock To Buy?
Does Nuance Communications Inc. (NASDAQ:NUAN) represent a good buying opportunity at the moment? Let’s quickly check the hedge fund interest towards the company. Hedge fund firms constantly search out bright intellectuals and highly-experienced employees and throw away millions of dollars on satellite photos and other research activities, so it is no wonder why they tend to generate millions in profits each year. It is also true that some hedge fund players fail inconceivably on some occasions, but net net their stock picks have been generating superior risk-adjusted returns on average over the years.
Nuance Communications Inc. (NASDAQ:NUAN)shareholders have witnessed a decrease in hedge fund interest of late.NUANwas in 28 hedge funds' portfolios at the end of the first quarter of 2019. There were 35 hedge funds in our database with NUAN positions at the end of the previous quarter. Our calculations also showed that nuan isn't among the30 most popular stocks among hedge funds.
So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio.
We're going to take a look at the latest hedge fund action regarding Nuance Communications Inc. (NASDAQ:NUAN).
At Q1's end, a total of 28 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -20% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards NUAN over the last 15 quarters. With the smart money's sentiment swirling, there exists a select group of noteworthy hedge fund managers who were adding to their stakes meaningfully (or already accumulated large positions).
More specifically,RGM Capitalwas the largest shareholder of Nuance Communications Inc. (NASDAQ:NUAN), with a stake worth $96.7 million reported as of the end of March. Trailing RGM Capital was Glenview Capital, which amassed a stake valued at $89.3 million. Park West Asset Management, GLG Partners, and Point72 Asset Management were also very fond of the stock, giving the stock large weights in their portfolios.
Since Nuance Communications Inc. (NASDAQ:NUAN) has witnessed a decline in interest from the smart money, logic holds that there was a specific group of hedgies who sold off their entire stakes heading into Q3. Intriguingly, Benjamin A. Smith'sLaurion Capital Managementsaid goodbye to the largest position of all the hedgies watched by Insider Monkey, comprising close to $7.5 million in stock, and Ken Griffin's Citadel Investment Group was right behind this move, as the fund dumped about $5.9 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 7 funds heading into Q3.
Let's go over hedge fund activity in other stocks similar to Nuance Communications Inc. (NASDAQ:NUAN). These stocks are Prosperity Bancshares, Inc. (NYSE:PB), 51job, Inc. (NASDAQ:JOBS), Empire State Realty Trust Inc (NYSE:ESRT), and nVent Electric plc (NYSE:NVT). This group of stocks' market valuations match NUAN's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position PB,9,103636,0 JOBS,12,29384,-1 ESRT,14,161856,1 NVT,25,920355,-3 Average,15,303808,-0.75 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $304 million. That figure was $460 million in NUAN's case. nVent Electric plc (NYSE:NVT) is the most popular stock in this table. On the other hand Prosperity Bancshares, Inc. (NYSE:PB) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Nuance Communications Inc. (NASDAQ:NUAN) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Hedge funds were also right about betting on NUAN, though not to the same extent, as the stock returned 1.4% during the same period and outperformed the market as well.
Disclosure: None. This article was originally published atInsider Monkey.
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Hedge Funds Have Never Been This Bullish On Science Applications International Corp (SAIC)
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 Science Applications International Corp (NYSE:SAIC).
IsScience Applications International Corp (NYSE:SAIC)a buy right now? Investors who are in the know are turning bullish. The number of bullish hedge fund bets advanced by 4 in recent months. Our calculations also showed that saic isn't among the30 most popular stocks among hedge funds.
In today’s marketplace there are a large number of tools market participants use to size up publicly traded companies. A couple of the most innovative tools are hedge fund and insider trading signals. We have shown that, historically, those who follow the best picks of the elite money managers can outpace the S&P 500 by a superb margin (see the details here).
[caption id="attachment_30621" align="aligncenter" width="487"]
Cliff Asness of AQR Capital Management[/caption]
Let's view the new hedge fund action surrounding Science Applications International Corp (NYSE:SAIC).
At the end of the first quarter, a total of 28 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 17% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards SAIC 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.
Among these funds,Rubric Capital Managementheld the most valuable stake in Science Applications International Corp (NYSE:SAIC), which was worth $49.4 million at the end of the first quarter. On the second spot was Horizon Asset Management which amassed $41.4 million worth of shares. Moreover, Millennium Management, AQR Capital Management, and Citadel Investment Group were also bullish on Science Applications International Corp (NYSE:SAIC), allocating a large percentage of their portfolios to this stock.
Consequently, key hedge funds have been driving this bullishness.Rubric Capital Management, managed by David Rosen, established the most valuable position in Science Applications International Corp (NYSE:SAIC). Rubric Capital Management had $49.4 million invested in the company at the end of the quarter. Scott Kapnick'sHPS Investment Partnersalso made a $24.3 million investment in the stock during the quarter. The other funds with brand new SAIC positions are Jeffrey Jacobowitz'sSimcoe Capital Management, Richard S. Meisenberg'sACK Asset Management, and Clint Carlson'sCarlson Capital.
Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Science Applications International Corp (NYSE:SAIC) but similarly valued. We will take a look at Americold Realty Trust (NYSE:COLD), Life Storage, Inc. (NYSE:LSI), MAXIMUS, Inc. (NYSE:MMS), and CACI International Inc (NYSE:CACI). This group of stocks' market valuations match SAIC's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position COLD,27,907693,11 LSI,15,274431,2 MMS,20,288188,-2 CACI,13,132826,-5 Average,18.75,400785,1.5 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 18.75 hedge funds with bullish positions and the average amount invested in these stocks was $401 million. That figure was $356 million in SAIC's case. Americold Realty Trust (NYSE:COLD) is the most popular stock in this table. On the other hand CACI International Inc (NYSE:CACI) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Science Applications International Corp (NYSE:SAIC) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Hedge funds were also right about betting on SAIC, though not to the same extent, as the stock returned 1.4% during the same period and outperformed the market as well.
Disclosure: None. This article was originally published atInsider Monkey.
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Here’s What Hedge Funds Think About Louisiana-Pacific Corporation (LPX)
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 Louisiana-Pacific Corporation (NYSE:LPX) for your portfolio? We'll look to this invaluable collective wisdom for the answer.
IsLouisiana-Pacific Corporation (NYSE:LPX)going to take off soon? The best stock pickers are turning less bullish. The number of long hedge fund bets retreated by 3 in recent months. Our calculations also showed that lpx isn't among the30 most popular stocks among hedge funds.
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
We're going to take a look at the recent hedge fund action surrounding Louisiana-Pacific Corporation (NYSE:LPX).
At the end of the first quarter, a total of 28 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -10% from the previous quarter. The graph below displays the number of hedge funds with bullish position in LPX over the last 15 quarters. With hedge funds' capital changing hands, there exists a few key hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).
Among these funds,Adage Capital Managementheld the most valuable stake in Louisiana-Pacific Corporation (NYSE:LPX), which was worth $84.6 million at the end of the first quarter. On the second spot was Renaissance Technologies which amassed $71.8 million worth of shares. Moreover, GLG Partners, Citadel Investment Group, and Owl Creek Asset Management were also bullish on Louisiana-Pacific Corporation (NYSE:LPX), allocating a large percentage of their portfolios to this stock.
Due to the fact that Louisiana-Pacific Corporation (NYSE:LPX) has witnessed declining sentiment from the smart money, it's easy to see that there was a specific group of fund managers that elected to cut their full holdings in the third quarter. Intriguingly, Paul Marshall and Ian Wace'sMarshall Wace LLPcut the biggest stake of the 700 funds watched by Insider Monkey, valued at an estimated $11.9 million in stock, and Daniel Arbess's Perella Weinberg Partners was right behind this move, as the fund dumped about $3.1 million worth. These moves are important to note, as aggregate hedge fund interest fell by 3 funds in the third quarter.
Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as Louisiana-Pacific Corporation (NYSE:LPX) but similarly valued. These stocks are Tenable Holdings, Inc. (NASDAQ:TENB), Houlihan Lokey Inc (NYSE:HLI), Magnolia Oil & Gas Corporation (NYSE:MGY), and Patterson-UTI Energy, Inc. (NASDAQ:PTEN). This group of stocks' market valuations are similar to LPX's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position TENB,20,153935,5 HLI,14,132102,-4 MGY,32,232014,0 PTEN,34,301384,-5 Average,25,204859,-1 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $205 million. That figure was $462 million in LPX's case. Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is the most popular stock in this table. On the other hand Houlihan Lokey Inc (NYSE:HLI) is the least popular one with only 14 bullish hedge fund positions. Louisiana-Pacific Corporation (NYSE:LPX) 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 LPX wasn't nearly as popular as these 20 stocks and hedge funds that were betting on LPX were disappointed as the stock returned -6.1% 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.
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These Factors Make Radha Madhav Corporation Limited (NSE:RMCL) An Interesting Investment
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Radha Madhav Corporation Limited (NSE:RMCL) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of RMCL, it is a financially-sound company with a a strong track record of performance, trading at a discount. Below, I've touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, read the fullreport on Radha Madhav here.
In the past couple of years, RMCL has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, RMCL also outperformed its industry, which delivered a growth of 13%. This is an optimistic signal for the future. RMCL is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that RMCL has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. RMCL's has produced operating cash levels of 0.32x total debt over the past year, which implies that RMCL's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
RMCL's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of RMCL's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the packaging industry, RMCL is also trading below its peers, relative to earnings generated. This further reaffirms that RMCL is potentially undervalued.
For Radha Madhav, I've compiled three pertinent aspects you should further examine:
1. Future Outlook: What are well-informed industry analysts predicting for RMCL’s future growth? Take a look at ourfree research report of analyst consensusfor RMCL’s outlook.
2. Dividend Income vs Capital Gains: Does RMCL 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 RMCL as an investment.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of RMCL? 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. |
Here’s What Hedge Funds Think About Trinity Industries, Inc. (TRN)
At Insider Monkey we track the activity of some of the best-performing hedge funds like Appaloosa Management, Baupost, and Tiger Global because we determined that some of the stocks that they are collectively bullish on can help us generate returns above the broader indices. Out of thousands of stocks that hedge funds invest in, small-caps can provide the best returns over the long term due to the fact that these companies are less efficiently priced and are usually under the radars of mass-media, analysts and dumb money. This is why we follow the smart money moves in the small-cap space.
IsTrinity Industries, Inc. (NYSE:TRN)ready to rally soon? Hedge funds are buying. The number of bullish hedge fund bets rose by 1 recently. Our calculations also showed that trn isn't among the30 most popular stocks among hedge funds.
Why do we pay any attention at all to hedge fund sentiment? Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
We're going to review the latest hedge fund action encompassing Trinity Industries, Inc. (NYSE:TRN).
At Q1's end, a total of 28 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 4% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards TRN over the last 15 quarters. With hedge funds' positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were boosting their stakes meaningfully (or already accumulated large positions).
The largest stake in Trinity Industries, Inc. (NYSE:TRN) was held byValueAct Capital, which reported holding $475.9 million worth of stock at the end of March. It was followed by Omega Advisors with a $41.8 million position. Other investors bullish on the company included Cardinal Capital, D E Shaw, and Royce & Associates.
As one would reasonably expect, specific money managers were leading the bulls' herd.StackLine Partners, managed by Brian Gootzeit and Andrew Frank, established the most valuable position in Trinity Industries, Inc. (NYSE:TRN). StackLine Partners had $13.5 million invested in the company at the end of the quarter. David Harding'sWinton Capital Managementalso made a $10.9 million investment in the stock during the quarter. The other funds with brand new TRN positions are Noam Gottesman'sGLG Partners, Benjamin A. Smith'sLaurion Capital Management, and Matthew Hulsizer'sPEAK6 Capital Management.
Let's now review hedge fund activity in other stocks - not necessarily in the same industry as Trinity Industries, Inc. (NYSE:TRN) but similarly valued. These stocks are John Bean Technologies Corporation (NYSE:JBT), Cloudera, Inc. (NYSE:CLDR), Strategic Education, Inc. (NASDAQ:STRA), and Old National Bancorp (NASDAQ:ONB). This group of stocks' market valuations are similar to TRN's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position JBT,9,89833,0 CLDR,32,344581,6 STRA,13,214977,1 ONB,9,34803,2 Average,15.75,171049,2.25 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 15.75 hedge funds with bullish positions and the average amount invested in these stocks was $171 million. That figure was $700 million in TRN's case. Cloudera, Inc. (NYSE:CLDR) is the most popular stock in this table. On the other hand John Bean Technologies Corporation (NYSE:JBT) is the least popular one with only 9 bullish hedge fund positions. Trinity Industries, Inc. (NYSE:TRN) 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 TRN wasn't nearly as popular as these 20 stocks and hedge funds that were betting on TRN were disappointed as the stock returned -8.7% 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.
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Hedge Funds Have Never Been This Bullish On Cyberark Software Ltd (CYBR)
The Insider Monkey team has completed processing the quarterly 13F filings for the March quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Cyberark Software Ltd (NASDAQ:CYBR).
IsCyberark Software Ltd (NASDAQ:CYBR)a buy, sell, or hold? Money managers are betting on the stock. The number of bullish hedge fund positions advanced by 8 in recent months. Our calculations also showed that CYBR isn't among the30 most popular stocks among hedge funds.
So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio.
Let's take a peek at the key hedge fund action surrounding Cyberark Software Ltd (NASDAQ:CYBR).
At Q1's end, a total of 28 of the hedge funds tracked by Insider Monkey were long this stock, a change of 40% from the previous quarter. By comparison, 14 hedge funds held shares or bullish call options in CYBR a year ago. With the smart money's sentiment swirling, there exists a select group of notable hedge fund managers who were boosting their stakes meaningfully (or already accumulated large positions).
The largest stake in Cyberark Software Ltd (NASDAQ:CYBR) was held byArrowstreet Capital, which reported holding $87.8 million worth of stock at the end of March. It was followed by RGM Capital with a $86.2 million position. Other investors bullish on the company included Two Sigma Advisors, Renaissance Technologies, and Citadel Investment Group.
Now, specific money managers have been driving this bullishness.Hitchwood Capital Management, managed by James Crichton, initiated the biggest position in Cyberark Software Ltd (NASDAQ:CYBR). Hitchwood Capital Management had $22 million invested in the company at the end of the quarter. Michael Gelband'sExodusPoint Capitalalso made a $6.9 million investment in the stock during the quarter. The other funds with new positions in the stock are Andrew Sandler'sSandler Capital Management, Michael Platt and William Reeves'sBlueCrest Capital Mgmt., and Ben Levine, Andrew Manuel and Stefan Renold'sLMR Partners.
Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Cyberark Software Ltd (NASDAQ:CYBR) but similarly valued. These stocks are New Jersey Resources Corp (NYSE:NJR), Chegg Inc (NYSE:CHGG), Ingevity Corporation (NYSE:NGVT), and Methanex Corporation (NASDAQ:MEOH). This group of stocks' market values resemble CYBR's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position NJR,11,96141,-7 CHGG,36,511609,15 NGVT,23,112069,6 MEOH,22,260832,1 Average,23,245163,3.75 [/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 $245 million. That figure was $435 million in CYBR's case. Chegg Inc (NYSE:CHGG) is the most popular stock in this table. On the other hand New Jersey Resources Corp (NYSE:NJR) is the least popular one with only 11 bullish hedge fund positions. Cyberark Software Ltd (NASDAQ:CYBR) 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 CYBR as the stock returned 11% during the same period and outperformed the market by an even larger margin. Hedge funds were rewarded for their relative bullishness.
Disclosure: None. This article was originally published atInsider Monkey.
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Foxconn picks chip-unit head for chairman, as Gou seeks Taiwan presidency
By Yimou Lee
TAIPEI (Reuters) - Apple Inc supplier Foxconn chose chip-unit boss Liu Young-way as chairman on Friday to succeed Terry Gou, who is preparing to contest Taiwan's presidential elections next year.
Liu was tipped to take over from Gou, who told Reuters in April that he planned to step down to pave the way for younger talent to move up the ranks of the world's biggest electronics contract manufacturer.
Earlier on Friday, Gou told the company's annual general meeting (AGM) in Taipei he will hand over the running of the company to a newly formed nine-member operations committee. Gou retained a seat on the board of the company, formally known as Hon Hai Precision Industry Co Ltd.
The change of guard comes as Foxconn - with its big factories in China and large roster of U.S. clients - navigates a trade war between Washington and Beijing.
But Liu's appointment does not portend big changes in strategy and Gou is likely to keep control of the company he founded 45 years ago, analysts have said.
The handover to Liu is only a formality, said a Taipei-based analyst, who declined to be identified due to Taiwan's trading regulations.
"Gou is still a director ... he can still control much of Hon Hai. He can still give advice or reject proposals," the analyst said.
Foxconn said nearly 3,000 shareholders, employees and supporters attended the AGM. Thousands braved the heat to watch a live broadcast of the meeting on big screens outside Foxconn's headquarters, while scores of employees lined up to welcome Gou and Liu inside.
"In the next four years I want to contribute what I gathered in the past 40 years to (Taiwan)," said Gou, who was wearing an orchid garland and a dark suit.
"Give me four years, and give Taiwan a chance of survival."
Taiwan's election is set to take place amid a period of increasing tensions between Beijing and Taipei, with Gou seeking to represent the China-friendly opposition Kuomintang (KMT) party.
His election bid might be weighed down by his ties to a Chinese leadership that refuses to renounce the use of force to unify with self-ruled Taiwan it considers a wayward province, analysts have said.
Gou, 68, is Taiwan's richest person with a net worth of $7.6 billion, according to Forbes.
Foxconn shares closed down 1.2% on Friday, compared with the flat broader market.
"GET ELECTED!"
"Terry Gou get elected!" employees chanted and threw flowers as he ended his speech and walked out of the company's offices.
Scores of police were on standby outside the headquarters, where supporters stood next to dozens of protesters who questioned Gou's policy over labor rights and wages.
Placards saying "young people are poor - can't afford to buy house, to get married and to have kids" intermingled with signs calling Gou "the hope for the youth".
In his speech, Gou criticized the state of Taiwan's economy, saying growth had hit a bottleneck.
Taiwan's economic growth has slowed, hurt by shrinking global tech demand and the tariff war between its two largest trading partners, China and the United States.
The island's central bank again cut its 2019 economic growth forecast on Thursday after export orders fell for a seventh straight month.
TRADE ANGLE
Liu, 63, has led Foxconn's nascent semiconductor business, dubbed the S sub-group, since 2017. He gained great trust since joining as a special assistant to Gou in 2007, a source told Reuters in May.
After the AGM, he told Reuters that the company had no plan to increase production capacity outside China at the moment and that he was not aware of client requests for Foxconn to shift part of its production outside China.
Investors are keen to know whether Foxconn will adjust its production line for Apple and others. The Nikkei Asian Review reported that Apple has asked its main suppliers to assess the cost implications of moving part of their production capacity from China to Southeast Asia.
Foxconn said last week it had enough capacity outside China to meet Apple's demand in the American market if the need should arise for the iPhone maker to adjust its production lines due to the U.S.-China trade war.
U.S. President Donald Trump has threatened to slap further tariffs on $300 billion worth of goods from China, where the bulk of Apple's devices are assembled. The country is also a key market for the firm.
Gou met with Trump in May and sought U.S. support to boost Taiwan's tech industry. He vowed to be a "peacemaker" for China, the United States and Taiwan, if he wins.
(Reporting By Yimou Lee; Writing by Sayantani Ghosh; Editing by Anne Marie Roantree, Stephen Coates and Muralikumar Anantharaman) |
Singapore Exchange (SGX:S68) Shareholders Have Enjoyed A 13% Share Price Gain
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When we invest, we're generally looking for stocks that outperform the market average. Buying under-rated businesses is one path to excess returns. To wit, the Singapore Exchange share price has climbed 13% in five years, easily topping the market return of -6.2% (ignoring dividends). On the other hand, the more recent gains haven't been so impressive, with shareholders gaining just 13%, including dividends.
See our latest analysis for Singapore Exchange
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
During five years of share price growth, Singapore Exchange achieved compound earnings per share (EPS) growth of 2.3% per year. This EPS growth is remarkably close to the 2.4% average annual increase in the share price. This indicates that investor sentiment towards the company has not changed a great deal. Rather, the share price has approximately tracked EPS growth.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
Dive deeper into Singapore Exchange's key metrics by checking this interactive graph of Singapore Exchange'searnings, revenue and cash flow.
It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Singapore Exchange, it has a TSR of 38% for the last 5 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence!
It's nice to see that Singapore Exchange shareholders have received a total shareholder return of 13% over the last year. Of course, that includes the dividend. That's better than the annualised return of 6.7% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. Before spending more time on Singapore Exchangeit might be wise to click here to see if insiders have been buying or selling shares.
We will like Singapore Exchange better if we see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on 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. |
Does Shanti Overseas (India) Limited (NSE:SHANTI) Have A Place In Your Dividend Portfolio?
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Is Shanti Overseas (India) Limited (NSE:SHANTI) a good dividend stock? How would you know? Dividend paying companies with growing earnings can be highly rewarding in the long term. 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.
Shanti Overseas (India) has only been paying a dividend for a year or so, so investors might be curious about its 1.8% yield. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this.
Click the interactive chart for our full dividend analysis
Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Looking at the data, we can see that 7.1% of Shanti Overseas (India)'s profits were paid out as dividends in the last 12 months. With a low payout ratio, it looks like the dividend is comprehensively covered by earnings.
As Shanti Overseas (India) has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A quick way to check a company's financial situation uses these two ratios: net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. Shanti Overseas (India) is carrying net debt of 4.33 times its EBITDA, which is getting towards the upper limit of our comfort range on a dividend stock that the investor hopes will endure a wide range of economic circumstances.
Net interest cover can be calculated by dividing earnings before interest and tax (EBIT) by the company's net interest expense. Interest cover of less than 5x its interest expense is starting to become a concern for Shanti Overseas (India), and be aware that lenders may place additional restrictions on the company as well.
We update our data on Shanti Overseas (India) every 24 hours, so you can always getour latest analysis of its financial health, here.
One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. With a payment history of less than 2 years, we think it's a bit too soon to think about living on the income from its dividend. Its most recent annual dividend was ₹0.50 per share, effectively flat on its first payment one years ago.
We like that the dividend hasn't been shrinking. However we're conscious that the company hasn't got an overly long track record of dividend payments yet, which makes us wary of relying on its dividend income.
The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. Shanti Overseas (India)'s earnings per share are up 0.2% on last year. We're glad to see EPS up on last year, but we're conscious that growth rates typically slow as companies increase in size. Growth has been hard to come by. However, the payout ratio is low, and some companies can deliver adequate dividend performance simply by increasing the payout ratio. We do note though, one year is too short a time to be drawing strong conclusions about a company's future prospects.
We'd also point out that Shanti Overseas (India) issued a meaningful number of new shares in the past year. Trying to grow the dividend when issuing new shares reminds us of the ancient Greek tale of Sisyphus - perpetually pushing a boulder uphill. Companies that consistently issue new shares are often suboptimal from a dividend perspective.
To summarise, shareholders should always check that Shanti Overseas (India)'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. Second, earnings growth has been ordinary, and its history of dividend payments is shorter than we'd like. Shanti Overseas (India) has a number of positive attributes, but it falls slightly short of our (admittedly high) standards. Were there evidence of a strong moat or an attractive valuation, it could still be well worth a look.
You can also discover whether shareholders are aligned with insider interests bychecking our visualisation of insider shareholdings and trades in Shanti Overseas (India) stock.
If you are a dividend investor, you might also want to look at ourcurated list of dividend stocks yielding above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Eventbrite: Short-Term Bumps En Route to Long-Term Growth
Shares ofEventbrite(NYSE: EB)are down more than 25% from theirSeptember 2018 IPOprice of $23. The cause of the slump: a steep slowdown in revenue growth resulting from integration issues related to a recent acquisition. Yet there's a strong case to make that the event ticketing and planning company has a solid long-term growth story and that the recent slowdown in growth is just a momentary bump in the road. If so, the current stock price could represent an attractive buying opportunity.
Let's take a closer look.
Image source: Eventbrite.
Shares of Eventbrite popped as much as 70% on their first day of trading. The company had a strong 2018, delivering revenue growth of 44.7%, and investors felt confident in the long-term growth story.
However, the company poured cold water on those growth prospects with its first earnings report as a public company. Eventbrite reportedfourth quarter 2018 sales growth of 21.1%-- less than half the growth rate of prior quarters. That turned into a pattern when the company reported first quarter 2019 earnings showing sales growth of just 9.1% with disappointing forward guidance.
Investors came into Eventbrite's IPO with high hopes of continued strong growth similar to what the company experienced in 2018. But in the short span of just two earnings reports, the company has fallen far short of those expectations, causing many early investors to run for the exits.
Eventbrite has blamed its disappointing results on issues related to its 2018 Ticketfly acquisition. The acquisition gave Eventbrite access to the 1,800-plus music promoters and venues Ticketfly serves in North America. The deal made strong strategic sense for Eventbrite, which wasn't particularly strong in the music category but wanted to grow into this area.
But instead of allowing Ticketfly to continue operating as a separate arm of the company, Eventbrite decided to shut down the Ticketfly platform and force customers to move over to its own platform. That decision has created an internal scramble, as the company has had to dedicate resources to ensure a smooth transition.
Ticketing is a core function of an events business, and ticketing software platforms are deeply embedded. Engineers have to get involved to help a customer switch over from one software platform to another, and sales reps have to hold customers' hands through the transition process, which includes retraining customers on the new software. Repeat this process for thousands of customers over a one-year period, and it's easy to see why migrating Ticketfly's customers has slowed down the overall company's growth plans.
The Ticketfly acquisition, in fact, has distracted many of Eventbrite's engineers and client sales and services personnel. And it comes at the expense of releasing new features and focusing on winning new clients. To make matters worse, some of Ticketfly's customers have chosen not to stay with Eventbrite.
The Ticketfly platform will be completely shut off by October. Until then, expect more muted growth from Eventbrite.
While the Ticketfly acquisition has created some short-term distractions, Eventbrite's longer-term prospects are still encouraging.
WhileLive Nationis the leading ticketing provider for large events such as Beyonce concerts, Eventbrite is the leader in the mid-market event space, serving smaller venues and independent creators. The mid-market event space is underserved, because more constrained budgets mean venues have a tougher time promoting events and selling tickets. That situation has created an opportunity for Eventbrite to add value to its customers outside of ticketing. For example, the company offers data analytics and planning software to help independent event organizers better market their events. Though that's currently a small portion of Eventbrite's revenue, it could be a major source of growth.
Moreover, through monetizing live event ticketing,Eventbrite is riding a major social trendof consumers who choose to spend more money on experiences rather than on material items. According to the U.S. Bureau of Economic Analysis, spending on experiences has consistently surpassed overall spending growth since 2001. This "experience economy" is especially prominent among millennials and the younger generation.
Over the long term, Eventbrite's exposure to the growing live-events market and its ability to sell more services to existing customers is a recipe for attractive growth.
Some investors probably feel as if Eventbrite pulled a bait and switch with its IPO by promising high growth and delivering underwhelming results so soon after its market debut. Yet the Ticketfly acquisition ultimately makes sense, given how Eventbrite chose to integrate the company. There have been headaches ever since the acquisition, but they should end when the Ticketfly platform is finally shut down later this year. If things don't pick up after that, then there may be deeper problems at hand.
For now, those interested in the long-term trend of growth in the experience economy would do well to consider Eventbrite as a good way to gain exposure. The company is a leader in ticketing for the mid-market live events space and has promising avenues of growth beyond just ticketing. The current share price is a significant discount from the original IPO price and may prove to be a good buying opportunity if the company can move past the bumps in the road from the Ticketfly acquisition.
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Luis Sanchezhas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Live Nation Entertainment. The Motley Fool has adisclosure policy. |
NBA Draft: Celtics send Matisse Thybulle to 76ers for pair of picks
The Boston Celtics selected Matisse Thybulle with the No. 20 overall pick in the NBA draft on Thursday night, though his time with the organization lasted only minutes. The Celtics immediately reached a deal to send Thybulle to the Philadelphia 76ers in exchange for the No. 24 and No. 33 picks in the draft, according to ESPNs Adrian Wojnarowski. Deal is agreed on -- and Sixers will send Boston Nos. 24 and 33 in this draft, league sources tell ESPN. https://t.co/XM7bHrkNH7 Adrian Wojnarowski (@wojespn) June 21, 2019 Thybulle averaged 9.1 points and 2.3 rebounds for the Huskies last season and was named the Naismith Defensive Player of the Year . The Washington senior didnt work out with any teams before Thursdays draft, but is widely considered one of the top defenders in the field. That, in part, is why the 6-foot-6 guard was so confident he would end up going in the first round of the draft. Without a doubt, Im a first-round draft pick, Thybulle told Yahoo Sports earlier this year. If you look at the 3-and-D players in the league today, thats a skillset I can provide for an NBA team on day one. I respect all the names I see on these internet draft lists, but there are not 20 players in the country better suited for the NBA than I am. And I believe at my position, Im more ready to contribute to a team than players mentioned ahead of me. The Celtics have already selected Indiana guard Romeo Langford with the No. 14 overall pick and Tennessees Grant Williams with the No. 22 overall pick. They also reached a deal with the Suns which sent the No. 24 overall pick which they used to draft Virginias Ty Jerome and center Aron Baynes to Phoenix in exchange for a 2020 first round pick. More from Yahoo Sports: Zion breaks down next to mom after being selected No. 1 Why the No. 4 pick won't be a Laker but still wore team's hat Minor league team loses on outfielder's mindless flub Shaq's son 'could've died' from heart defect |
Governor sends police after GOP senators who fled Capitol
SALEM, Ore. (AP) Oregon Gov. Kate Brown deployed the state police Thursday to try to round up Republican lawmakers who fled the Capitol to block a vote on a landmark economy-wide climate plan that would be the second of its kind in the nation. Minority Republicans want the cap-and-trade proposal, which is aimed at dramatically lowering the state's greenhouse gas emissions by 2050, to be sent to voters instead of being instituted by lawmakers but negotiations with Democrats collapsed, leading to the walkout, Kate Gillem, a spokeswoman for Senate Republicans said Thursday. Oregon State Police can force any senators they track down in Oregon into a patrol car to return them to the Capitol, although the agency said in a statement that it would use "polite communication" and patience to bring the rogue lawmakers back. Under state law, the absentee senators will be fined $500 a day per person starting Friday if enough of them remain absent to prevent a vote. Democrats have an 18 to 12 majority in the chamber, but need 20 members present for a quorum. "It's time for the Senate Republicans to show up and do the job they were elected to do," Brown, a Democrat, said at a news conference. Republican senators appeared unfazed and ready to dig in. "Send bachelors and come heavily armed," Sen. Brian Boquist, a Republican from Dallas, said late Wednesday as the prospect of a walkout loomed. "I'm not going to be a political prisoner in the state of Oregon. It's just that simple." Boquist, who is reportedly in Idaho, did not respond to emails after the Senate president publicly rebuked him for the remarks. Gillem confirmed that some members left the state to avoid a vote because state police don't have jurisdiction outside Oregon. State police said Thursday evening that they had been in contact with several senators and that "out of state resources" were assisting the agency. Story continues This is the second time in this legislative session that minority GOP lawmakers have used a walkout as a way to slow the process. Democrats have a rare supermajority in the House and Senate, meaning Republicans don't have many ways to influence the debate. Republicans walked out of the Senate last month to block a school funding tax package. The standoff lasted four days, until the governor struck a deal to table legislation on gun control and vaccine requirements. The tactic is rare, but it has been used throughout history. Abraham Lincoln once leapt out of a window in an attempt to deny a quorum when he was a lawmaker in Illinois. In 2003, Texas Democrats fled to neighboring Oklahoma to deny a quorum, holing up in a Holiday Inn to block a GOP redistricting bill. The Democrats returned to Texas after the bill's deadline passed, and it was effectively killed. On Thursday, Oregon's Senate president pleaded with Republicans to return. "I beg and beseech my fellow legislators to come to the floor. I need you, the Legislature needs you, the people of Oregon need you to pass budgets to take care of our citizens," Senate President Peter Courtney said on the Senate floor. The walkout brings all Senate business to a halt with just over a week left in the legislative session. Senators still need to vote on the budget. But the cap-and-trade legislation remains a sticking point. Under the proposed bill, Oregon would put an overall limit on greenhouse gas emissions and auction off pollution "allowances" for each ton of carbon industries plan to emit. The legislation would lower that cap over time to encourage businesses to move away from fossil fuels: The state would reduce emissions to 45% below 1990 levels by 2035, and 80% below 1990 levels by 2050. Those opposed to the cap-and-trade plan say it would exacerbate a growing divide between the liberal, urban parts of the state and the rural areas. The plan would increase the cost of fuel, damaging small business, truckers and the logging industry, they say. "Protesting cap and trade by walking out today represents our constituency and exactly how we should be doing our job," said Senate Republican Leader Herman Baertschiger, Jr., of Grants Pass. A small group of loggers gathered to protest outside the Capitol on Thursday. Bridger Hasbrouck, a 32-year-old self-employed logger from Dallas, Oregon, said the bill if passed would be "devastating" to his business because he uses diesel fuel to power all his logging equipment. "There's a whole lot involved but the biggest thing that's very crippling is the fact that these bills would impose regulations that would take trucks off the road that people are using to earn their living," he said. Democrats say the measure is an efficient way to lower emissions while investing in low-income and rural communities' ability to adapt to climate change. It has the support of environmental groups, farmworkers and some trade unions. The proposal also contains a $10 million investment to protect workers adversely affected by climate change policy. "'Rural' here is not one voice," said Mimi Casteel, a farmer in rural Hopewell, Oregon. "This is not just about gas prices this is about the future of humanity." California has had for a decade an economy-wide cap and trade policy like the one Oregon is considering. Nine northeastern states have more limited cap-and-trade programs that target only the power sector. ____ Follow Sarah Zimmerman on Twitter at http://www.twitter.com/sarahzimm95 and Gillian Flaccus at http://www.twitter.com/gflaccus |
Read This Before You Buy SMVD Poly Pack Limited (NSE:SMVD) Because Of Its P/E Ratio
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Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll look at SMVD Poly Pack Limited's (NSE:SMVD) P/E ratio and reflect on what it tells us about the company's share price.SMVD Poly Pack has a price to earnings ratio of 3.44, based on the last twelve months. That corresponds to an earnings yield of approximately 29%.
View our latest analysis for SMVD Poly Pack
Theformula for P/Eis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for SMVD Poly Pack:
P/E of 3.44 = ₹17 ÷ ₹4.94 (Based on the year to March 2019.)
A higher P/E ratio implies that investors paya higher pricefor the earning power of the business. All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.'
Generally speaking the rate of earnings growth has a profound impact on a company's P/E multiple. Earnings growth means that in the future the 'E' will be higher. That means unless the share price increases, the P/E will reduce in a few years. So while a stock may look expensive based on past earnings, it could be cheap based on future earnings.
SMVD Poly Pack's earnings per share fell by 28% in the last twelve months. But over the longer term (5 years) earnings per share have increased by 77%.
The P/E ratio essentially measures market expectations of a company. The image below shows that SMVD Poly Pack has a lower P/E than the average (8.9) P/E for companies in the packaging industry.
SMVD Poly Pack's P/E tells us that market participants think it will not fare as well as its peers in the same industry. While current expectations are low, the stock could be undervalued if the situation is better than the market assumes. It is arguably worth checkingif insiders are buying shares, because that might imply they believe the stock is undervalued.
Don't forget that the P/E ratio considers market capitalization. In other words, it does not consider any debt or cash that the company may have on the balance sheet. In theory, a company can lower its future P/E ratio by using cash or debt to invest in growth.
While growth expenditure doesn't always pay off, the point is that it is a good option to have; but one that the P/E ratio ignores.
Net debt totals a substantial 287% of SMVD Poly Pack's market cap. If you want to compare its P/E ratio to other companies, you must keep in mind that these debt levels would usually warrant a relatively low P/E.
SMVD Poly Pack's P/E is 3.4 which is below average (15.6) in the IN market. 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 the reality for a company is not as bad as the P/E ratio indicates, then the share price should increase as the market realizes this. Although we don't have analyst forecasts, shareholders might want to examinethis detailed historical graphof earnings, revenue and cash flow.
Of courseyou might be able to find a better stock than SMVD Poly Pack. So you may wish to see thisfreecollection of other companies that have grown earnings strongly.
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. |
Domino's Pizza Enterprises' Europe CEO says is committed to firm
June 21 (Reuters) - Domino's Pizza Enterprises Ltd's Europe head said on Friday he was "invested" in the Australian-based franchisee, after a media report said he could leave to become the CEO of Domino's UK-based franchisee.
"As a senior executive in this business, and a significant holder of DMP shares, I am invested in our future," Andrew Rennie, chief executive officer of Domino's Pizza Enterprises in Europe, said in a statement released by the Australia-based Domino's.
Sky News reported on Thursday that the frontrunner to replace David Wild, outgoing CEO of Domino's Pizza Group Plc , is Rennie.
Domino's Pizza Enterprises is the largest franchisee of the Domino's Pizza brand outside the United States, while Domino's Pizza Group holds the master franchise for the United Kingdom and Ireland. (Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Muralikumar Anantharaman) |
Introducing China Oceanwide Holdings (HKG:715), The Stock That Slid 51% In The Last Three Years
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If you are building a properly diversified stock portfolio, the chances are some of your picks will perform badly. But the long term shareholders ofChina Oceanwide Holdings Limited(HKG:715) have had an unfortunate run in the last three years. Sadly for them, the share price is down 51% in that time. The good news is that the stock is up 2.5% in the last week.
Check out our latest analysis for China Oceanwide Holdings
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
Over the three years that the share price declined, China Oceanwide Holdings's earnings per share (EPS) dropped significantly, falling to a loss. Since the company has fallen to a loss making position, it's hard to compare the change in EPS with the share price change. However, we can say we'd expect to see a falling share price in this scenario.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
Before buying or selling a stock, we always recommend a close examination ofhistoric growth trends, available here..
We've already covered China Oceanwide Holdings's share price action, but we should also mention its total shareholder return (TSR). 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. Dividends have been really beneficial for China Oceanwide Holdings shareholders, and that cash payout explains why its total shareholder loss of 51%, over the last 3 years, isn't as bad as the share price return.
We're pleased to report that China Oceanwide Holdings shareholders have received a total shareholder return of 3.8% over one year. That certainly beats the loss of about 1.6% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. You could get a better understanding of China Oceanwide Holdings's growth by checking outthis more detailed historical graphof earnings, revenue and cash flow.
We will like China Oceanwide Holdings better if we see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on 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. |
California Assembly committee backs vaccine exemption law
SACRAMENTO, Calif. (AP) — A California Assembly committee backed new rules for vaccination exemptions on Thursday following a raucous, hours-long hearing in the midst of a national measles outbreak and renewed scrutiny of immunization policies. The 9-2 vote showed support among lawmakers for a modified version of legislation that has spurred heated debate. But the vote also showed division within the Assembly's Democratic majority. America's most populous state allows students exemptions from required vaccinations for medical reasons. But proponents of the bill calling for greater scrutiny of the exemptions argue that parents are shopping for unscrupulous doctors who will write one even if it is not necessary. Sen. Richard Pan, a Democrat from Sacramento and author of the bill, argued that greater oversight of medical exemptions is a matter of protection for children. "California cannot allow a handful of unscrupulous physicians to put our children in danger," he told the Assembly Health Committee. But hundreds of people at the hearing urged lawmakers to vote against the bill. Critics argue Pan's legislation amounts to government overreach. "It takes the state government and puts it squarely in the middle of the doctor and patient relationship," said Leigh Dundas of the group Advocates for Physicians' Rights, which has recently bought Facebook ads targeting the legislation. Several parents told lawmakers they would not comply with the law. The five-hour hearing came to epitomize the heated debate around the bill. A packed gallery jeered, and some threatened Pan. Under the bill, the public health department would scrutinize doctors who grant more than five medical exemptions in a year and schools with vaccination rates of less than 95%. Officials say that threshold is needed to provide "community immunity," which protects those who haven't been vaccinated for medical reasons or because they are too young. Story continues The measure, which Gov. Gavin Newsom said he will sign if it reaches his desk, comes as measles cases have reached a 25-year high in the U.S. Lawmakers in other states also have been considering changes to confront the increase. Maine eliminated religious and philosophical exemptions, while New York lawmakers ended a religious exemption. Washington state halted most exemptions for the measles vaccine, though legislators in Oregon defeated a measure that would have made it harder for families to opt out. California's legislation has received national attention after actor Jessica Biel appeared at the Capitol last week to lobby lawmakers against the measure with Robert F. Kennedy Jr., a prominent critic of vaccination. Pan initially proposed requiring state health officials sign off on every exemption from vaccinations. But he dropped that requirement in the version of the bill that advanced Thursday. Among the provisions in the revised California legislation: — Doctors can't charge for filling out a medical exemption form or conducting a related medical examination. They would have to sign the forms under penalty of perjury. — California Department of Public Health doctors or registered nurses would review exemptions issued by local medical providers who issue five or more a year or at schools with high exemption rates. — The state public health officer, who is a doctor, could revoke any exemptions that don't meet national guidelines. — Parents could appeal to an independent panel of doctors. — Officials could consider families' medical histories in allowing exemptions in addition to immunization guidelines issued by federal medical authorities. Supporters said the legislation would permit exemptions for the less than 1% of students who should avoid vaccinations because they would have a severe allergic reaction or have impaired immunity from a liver problem, HIV, chemotherapy or other conditions. Assemblyman Rob Bonta, D-Alameda, praised the bill during Thursday's hearing as "science-based" while still allowing robust medical exemptions. New figures show the rate of kindergartners with permanent medical exemptions has quadrupled since California banned personal exemptions, and more than 100 schools have medical exemption rates exceeding 10%. Public health officials have said they are stymied in investigating these cases because of a lack of oversight. The bill's backers argue its additional reporting requirements will help the state curb "doctor shopping" and abuses of the exemption system. Still, critics questioned whether the measure would discourage doctors from writing exemptions at all. Those arguments resonated with some lawmakers. "I want the freedom to make choices for my family," said Assemblywoman Autumn Burke, a Democrat from Marina Del Rey who voted against the bill. |
Should You Care About Kingbo Strike Limited’s (HKG:1421) Investment Potential?
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Today we'll look at Kingbo Strike Limited (HKG:1421) and reflect on its potential as an investment. Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business.
Firstly, we'll go over how we calculate ROCE. Second, we'll look at its ROCE compared to similar companies. Finally, we'll look at how its current liabilities affect its ROCE.
ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business. All else being equal, a better business will have a higher ROCE. In brief, it is a useful tool, but it is not without drawbacks. Renowned investment researcher Michael Mauboussinhas suggestedthat a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'.
The formula for calculating the return on capital employed is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
Or for Kingbo Strike:
0.085 = S$6.8m ÷ (S$109m - S$29m) (Based on the trailing twelve months to December 2018.)
So,Kingbo Strike has an ROCE of 8.5%.
View our latest analysis for Kingbo Strike
ROCE is commonly used for comparing the performance of similar businesses. Using our data, Kingbo Strike's ROCE appears to be around the 10% average of the Electrical industry. Aside from the industry comparison, Kingbo Strike's ROCE is mediocre in absolute terms, considering the risk of investing in stocks versus the safety of a bank account. It is possible that there are more rewarding investments out there.
When considering ROCE, bear in mind that it reflects the past and does not necessarily predict the future. Companies in cyclical industries can be difficult to understand using ROCE, as returns typically look high during boom times, and low during busts. This is because ROCE only looks at one year, instead of considering returns across a whole cycle. How cyclical is Kingbo Strike? You can see for yourself by looking at thisfreegraph of past earnings, revenue and cash flow.
Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE. To counteract this, we check if a company has high current liabilities, relative to its total assets.
Kingbo Strike has total liabilities of S$29m and total assets of S$109m. Therefore its current liabilities are equivalent to approximately 26% of its total assets. This very reasonable level of current liabilities would not boost the ROCE by much.
If Kingbo Strike continues to earn an uninspiring ROCE, there may be better places to invest. Of course,you might also be able to find a better stock than Kingbo Strike. So you may wish to see thisfreecollection of other companies that have grown earnings strongly.
I will like Kingbo Strike better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
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. |
Indian Workers on H-1B Visas Could Be Casualties of a U.S. Trade Spat
With the trade war between the U.S. and China regularly dominating headlines, it’s easy to forget that the U.S. is also engaged in trade disputes with other countries, such India.
Unless, of course, you’re an Indian worker who wants to get a job in the U.S. Because if that’s the case, then your opportunities might be about to get more limited.
Having recentlycancelled concessionson the importation of almost 2,000 Indian products—a move that prompted New Delhi to impose higher tariffs on American goods—the U.S. is now reported to be threatening new caps on the numbers of Indians that can get an American H-1B work visa. The U.S. State Department denies that the Trump administration is mulling this.
However, if the report is correct, tens of thousands fewer Indians might be able to get U.S. work visas each year. This could have a big impact on Indian companies with a U.S. presence—the visas allow people to stay there for up to six years—andalso on Silicon Valley, where many H-1B-holding immigrants are employed.
According toReuters, the idea is not to explicitly target India with the move—the White Houseprobably lacks the authorityto do that—but rather to threaten new H-1B visa limits on countries that have so-called “data localization” laws.
The State Department denied this, saying: “The Trump Administration has no plans to place caps on H-1B work visas for nations that force foreign companies to store data locally.”
Data localization policies force companies to store the personal data of a country’s citizens on servers located in that country. India waded into these waters last year when its central bank, the Reserve Bank of India (RBI), said all Indian transaction data had to be stored in India and nowhere else.
As is generally the case with data localization laws, the given reasons included aiding Indian law-enforcement investigations and providing better security to the country’s citizens. However, the U.S. lobbied against it—after all, many of the affected tech and financial firms, fromVisaandMastercardtoGoogleandAmazon, are American. And when the implementation deadline arrived in October, many of those companieswere not ready.
The argument is still ongoing. Just this week, the RBIpromised the companiesit would “look into” their concerns.
As for how the U.S. H-1B visa cap would specifically target India, that’s a function of how many of the 85,000 such visas granted each year go to people from the country.
The new cap for countries with data-localization laws is reportedly between 10% and 15% of all H-1B visas issued. India isn’t the only country with data-localization laws—China and Russia’s versions are much more restrictive—but as much as 70% of H-1B visas currently go to Indians. That means the cut would disproportionately hit people going from India to the U.S. for work.
TheTimes of Indiaspoke to several lawyers who mostly said the matter could end up before the U.S. courts if President Donald Trump tries to push through the change by executive order, as the rules for allocating H-1B visas were set out by Congress, and it’s not up to the president to change them. A Democrat-controlled House is unlikely to approve of Trump’s move, they said. However, one lawyer—NPZ Law Group’s Snehal Batra—pointed out that congressional approval might not be required if the overall number of H-1B visas was not being changed.
Ultimately, the move could fall foul of the rule in the U.S. Immigration and Nationality Act that forbids discrimination against any particular country when issuing visas, immigration attorney Cyrus Mehta told the newspaper.
That law was also cited in thejudicial pushbackagainst Trump’s “travel ban” against people from majority-Muslim countries.
This article was updated to include the State Department’s statement.
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Will My Early Retirement Hurt My Social Security Benefits?
An early retirement means more time to relax and enjoy the activities you love. But if you were counting on large Social Security checks to cover most of your living expenses in your later years, you could be in for a surprise. Retiring early can have some unintended consequences for your Social Security benefits that end up costing you thousands of dollars over your lifetime.
Your Social Security benefit is based on your average monthly income during the 35 highest-earning years of your life. But if you retire before you've worked for 35 years, the Social Security Administration (SSA) will add zeros to your calculation, bringing down your average and reducing your monthly checks. And if you've worked for less than 10 years, you won't be eligible for Social Security at all.
Image source: Getty Images.
If retiring early also means starting Social Security early, you could end up with even less money per check. If you want the full monthly benefit you're entitled to, you must wait to claim until you reach yourfull retirement age-- 66 or 67, depending on the year you were born. The SSA reduces your checks for every month you receive benefits before your full retirement age. If you start as soon as you're eligible at 62, you'll only receive 70% of your scheduled benefit per check if your full retirement age is 67, or 75% if your full retirement age is 66. Conversely, you candelay benefitspast your full retirement age: Your checks will grow until you reach the maximum benefit at 70. This is 124% of your scheduled benefit for those with a full retirement age of 67 and 132% for those with a full retirement age of 66.
Starting benefits early could result in a lower lifetime Social Security benefit than if you'd waited until your full retirement age or 70 to begin claiming, but it all depends on how long you expect to live. If you don't anticipate having a long life, you'll get more from Social Security by starting early than you would by waiting. You can calculate your estimated Social Security benefit at different ages by creating amy Social Security account. Multiply these amounts by 12 to get your estimated annual benefits at these ages and then multiply this by the number of years you expect to receive benefits to figure out your lifetime benefit.
For example, if you expect to get $1,000 per month if you start claiming at your full retirement age and you expect to collect benefits for 20 years, you'd multiply $1,000 by 12 to get $12,000 per year and multiply this by 20 to get a $240,000 estimated lifetime benefit. Use this data to determine which age offers you the most benefits.
If you don't want your early retirement to derail your Social Security benefits, make some adjustments to your retirement plan. Considerdelaying your retirementa year or two, or working part-time for a couple of years if you don't have 35 years of work history under your belt. This will ensure there aren't any zeros weighing down your average monthly income that's used to calculate your benefits.
If you don't need Social Security to cover your living expenses, consider delaying benefits until your full retirement age or 70 so you can get a larger amount per check. These checks will then cover a larger portion of your living expenses later in retirement, easing the burden on your personal retirement savings.
Married couples may want to consider having the lower-earning spouse start Social Security at 62. Their checks can help hold them over while the higher-earning spouse delays benefits until full retirement age or 70, when they're entitled to larger checks. Then, when they sign up for benefits, their spouse can switch over to a spousal benefit if that is larger than the benefit they're entitled to based on their own work record.
It's possible that your early retirement may not affect your Social Security benefits at all if you already have 35 years of work experience under your belt and you already know when you want to start benefits and approximately how much you'll get. But if you haven't given these things any thought, now's the time to do so.
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Do Sobha's (NSE:SOBHA) Earnings Warrant Your Attention?
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Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. And in their study titledWho Falls Prey to the Wolf of Wall Street?'Leuz et. al. found that it is 'quite common' for investors to lose money by buying into 'pump and dump' schemes.
In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies likeSobha(NSE:SOBHA). While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. While a well funded company may sustain losses for years, unless its owners have an endless appetite for subsidizing the customer, it will need to generate a profit eventually, or else breathe its last breath.
Check out our latest analysis for Sobha
If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS). Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Impressively, Sobha has grown EPS by 31% per year, compound, in the last three years. As a general rule, we'd say that if a company can keep upthatsort of growth, shareholders will be smiling.
I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats). While we note Sobha's EBIT margins were flat over the last year, revenue grew by a solid 24% to ₹34b. That's progress.
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.
You don't drive with your eyes on the rear-view mirror, so you might be more interested in thisfreereport showing analyst forecasts for Sobha'sfutureprofits.
Personally, I like to see high insider ownership of a company, since it suggests that it will be managed in the interests of shareholders. So as you can imagine, the fact that Sobha insiders own a significant number of shares certainly appeals to me. Indeed, with a collective holding of 56%, 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 ₹29b. Now that's what I call some serious skin in the game!
You can't deny that Sobha has grown its earnings per share at a very impressive rate. That's attractive. I think that EPS growth is something to boast of, and it doesn't surprise me that insiders are holding on to a considerable chunk of shares. So this is very likely the kind of business that I like to spend time researching, with a view to discerning its true value. 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 Sobha is trading on a high P/E or a low P/E, relative to its industry.
You can invest in any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here isa list of companies with insider buying in the last three months.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Bitcoin Cash – ABC, Litecoin and Ripple Daily Analysis – 21/06/19
Bitcoin Cash ABC fell by 0.94% on Thursday. Reversing a 0.21% rise from Wednesday, Bitcoin Cash ABC ended the day at $412.61.
A choppy start to the day saw Bitcoin Cash ABC slide from an early intraday high $418.88 to a late morning intraday low $405.85.
Falling short of the first major resistance level at $420.34, Bitcoin Cash ABC fell through the first major support level at $410.14.
Finding support late on, Bitcoin Cash ABC recovered to $412 levels to cut the losses on the day.
At the time of writing, Bitcoin Cash ABC was up by 3.27% to $426.12. A bullish start to the day saw Bitcoin Cash ABC rise from a morning low $415.28 to a high $427.34.
Bitcoin Cash ABC broke through the first major resistance level at $419.04 and second major resistance level at $425.48 early on.
For the day ahead, a hold above the second major resistance level at $425.48 would support a break out to $430 levels.
In the event of an extended rally through the day Bitcoin Cash ABC could come against the third major resistance level at $438.51. We would expect Bitcoin Cash ABC to come up short of the current week high $440, however.
Failure to hold above the second major resistance level at $425.48 could see Bitcoin Cash ABC slide back to sub-$420 levels.
Barring a crypto meltdown, however, Bitcoin Cash ABC would likely avoid a pullback through the first major resistance level at $419.04.
In the event of a meltdown, a fall through $412 levels would bring the first major support level at $406.01 into play before any recovery.
Litecoin fell by 0.5% on Thursday. Partially reversing a 1.27% gain from Wednesday, Litecoin ended the day at $135.99.
Bearish through most of the day, Litecoin fell from a start of a day intraday high $137.15 to a late afternoon intraday low $133.37.
Coming up short of the first major resistance level at $139.79, Litecoin tested the first major support level at $133.70.
Finding support late in the day, Litecoin recovered to $135 levels to limit the loss on the day.
At the time of writing, Litecoin was up by 1.58% to $137.89. Tracking the broader market, Litecoin rose from a morning low $135.83 to a high $138.12 before easing back.
Litecoin broke through the first major resistance level at $137.64 early on.
For the day ahead, a hold onto $137 levels through the morning would support further upside on the day.
A move back through the morning high $138.12 would support a run at the second major resistance level at $139.28. In the event of a breakout, Litecoin could take a run at $140 levels before any pullback.
We would expect Litecoin to come up short of the third major resistance level at $143.06 on the day.
Failure to hold onto $137 levels could see Litecoin slide back through to $135 levels. A fall through $135.5 would bring the first major support level at $133.86 into play before any recovery.
Barring a crypto meltdown, Litecoin will likely steer clear of the second major support level at $131.72.
Ripple’s XRP slipped by 0.8% on Thursday. Partially reversing a 2.09% rise from Wednesday, Ripple’s XRP ended the day at $0.43280.
A bullish start to the day saw Ripple’s XRP rise to an early morning intraday high $0.43784 before hitting reverse.
Falling short of the first major resistance level at $0.4425, Ripple’s XRP slid to a late intraday low $0.42117.
The reversal saw Ripple’s XRP fall through the first major support level at $0.42760 before a late move back through to $0.43 levels.
At the time of writing, Ripple’s XRP was up by 2.56% to $0.44250. A particularly bullish start to the day saw Ripple’s XRP rally from a morning low $0.43133 to a high $0.44609.
Ripple’s XRP broke through the first major resistance level at $0.4400 to come within range of the second major resistance level at $0.4473.
For the day ahead, a hold above $0.4380 levels through the morning would support a run at the second major resistance level at $0.4473.
Ripple’s XRP would need the support of the broader market, however, to break out from this morning’s high $0.44609.
In the event of an extended crypto rally, Ripple’s XRP could strike $0.45 levels before any pullback.
Failure to hold above $0.4380 levels could see Ripple’s XRP hit reverse. A fall through to sub-$0.4310 levels would bring the first major support level at $0.4234 into play.
Barring a crypto meltdown, Ripple’s XRP would likely steer clear of sub-$0.42 levels on the day.
Please let us know what you think in the comments below
Thanks, Bob
Thisarticlewas originally posted on FX Empire
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Why Wipro Limited (NSE:WIPRO) Is A Financially Healthy Company
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! With a market capitalization of ₹1.8t, Wipro Limited ( NSE:WIPRO ) is a large-cap stock, which is considered by most investors as a safe bet. Common characteristics for these big stocks are their strong balance sheet and high liquidity, which means there's plenty of stocks available to the public for trading. These companies are resilient in times of low liquidity and are not as strongly impacted by interest rate hikes as companies with lots of debt. Using the most recent data for WIPRO, I will determine its financial status based on its solvency and liquidity, and assess whether the stock is a safe investment. View our latest analysis for Wipro WIPRO’s Debt (And Cash Flows) WIPRO's debt levels have fallen from ₹138b to ₹99b over the last 12 months – this includes long-term debt. With this debt payback, the current cash and short-term investment levels stands at ₹388b , ready to be used for running the business. On top of this, WIPRO has produced cash from operations of ₹116b during the same period of time, leading to an operating cash to total debt ratio of 117%, indicating that WIPRO’s operating cash is sufficient to cover its debt. Can WIPRO pay its short-term liabilities? At the current liabilities level of ₹214b, it seems that the business has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 2.67x. The current ratio is the number you get when you divide current assets by current liabilities. Generally, for IT companies, this is a reasonable ratio since there's a sufficient cash cushion without leaving too much capital idle or in low-earning investments. NSEI:WIPRO Historical Debt, June 21st 2019 Can WIPRO service its debt comfortably? WIPRO’s level of debt is appropriate relative to its total equity, at 17%. This range is considered safe as WIPRO is not taking on too much debt obligation, which may be constraining for future growth. Story continues Next Steps: WIPRO’s high cash coverage and low debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow. In addition to this, the company exhibits proper management of current assets and upcoming liabilities. Keep in mind I haven't considered other factors such as how WIPRO has been performing in the past. I recommend you continue to research Wipro to get a better picture of the stock by looking at: Future Outlook : What are well-informed industry analysts predicting for WIPRO’s future growth? Take a look at our free research report of analyst consensus for WIPRO’s outlook. Valuation : What is WIPRO worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether WIPRO is currently mispriced by the market. Other High-Performing Stocks : Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here . We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Grizzlies trade up for Gonzaga F Brandon Clarke
The Memphis Grizzlies began their Thursday night by picking up the NBA draft’s best passer in Ja Morant. Now, they might have just added one of its best shot-blockers as well. After trading up to the 21st overall pick from No. 23, the Grizzlies selected Gonzaga forward Brandon Clarke. Per ESPN’s Adrian Wojnarowski, the Grizzlies gave up a second-round pick in the 2024 draft to move up two spots. Oklahoma City will get the No. 23 pick tonight and a 2024 second-round pick in the trade, league source tells ESPN. https://t.co/4qVdrV6mOP — Adrian Wojnarowski (@wojespn) June 21, 2019 After transferring to Gonzaga from San Jose State, Clarke averaged 16.9 points per game on 68.7 percent shooting with 8.6 rebounds per game in his only year with the Bulldogs. Clarke ranked third in the NCAA in shots blocked last year with 3.16 per game, earning him WCC Defensive Player of the Year honors as well as WCC Newcomer of the Year. Despite not possessing prototypical shot-blocker length, Clarke should fit in well thanks to his versatility. Alongside 2018 fourth overall pick Jaren Jackson Jr., Clarke figures to form an imposing frontcourt in Memphis and should have plenty of fun receiving lobs from Morant. The Thunder ended up taking forward Darius Bazley, who sat out all year after forgoing a Syracuse commitment to play in the G League , then not playing in the G League . Bazley was considered a possible top-10 pick before the move, so the Thunder are taking a high-reward risk here. Brandon Clarke impressed in his lone year at Gonzaga. (Photo by Sarah Stier/Getty Images) More from Yahoo Sports: Zion breaks down next to mom after being selected No. 1 Why the No. 4 pick won't be a Laker but still wore team's hat Minor league team loses on outfielder's mindless flub Shaq's son 'could've died' from heart defect View comments |
Investors Who Bought Xplore Wealth (ASX:XPL) Shares Three Years Ago Are Now Down 76%
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As an investor, mistakes are inevitable. But really big losses can really drag down an overall portfolio. So take a moment to sympathize with the long term shareholders ofXplore Wealth Limited(ASX:XPL), who have seen the share price tank a massive 76% over a three year period. That'd be enough to cause even the strongest minds some disquiet. And more recent buyers are having a tough time too, with a drop of 45% in the last year. Shareholders have had an even rougher run lately, with the share price down 22% in the last 90 days.
See our latest analysis for Xplore Wealth
Xplore Wealth 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last three years, Xplore Wealth saw its revenue grow by 49% per year, compound. That's well above most other pre-profit companies. So why has the share priced crashed 38% per year, in the same time? You'd want to take a close look at the balance sheet, as well as the losses. Sometimes fast revenue growth doesn't lead to profits. If the company is low on cash, it may have to raise capital soon.
The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart.
Thisfreeinteractive report on Xplore Wealth'sbalance sheet strengthis a great place to start, if you want to investigate the stock further.
Investors should note that there's a difference between Xplore Wealth's total shareholder return (TSR) and its share price change, which we've covered above. Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Dividends have been really beneficial for Xplore Wealth shareholders, and that cash payout explains why its total shareholder loss of 75%, over the last 3 years, isn't as bad as the share price return.
Xplore Wealth shareholders are down 45% for the year, but the market itself is up 11%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 12% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. Most investors take the time to check the data on insider transactions. You canclick here to see if insiders have been buying or selling.
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 AU 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. |
After Hours: Canopy Growth's Q4 2019, Sprouts Farmers Market CEO and CFO Departing
After an exhilarating trading day that saw theS&P 500hit a new record closing high, the mood is a little quieter in the post-market space.
But as ever, there is the occasional company generating action and excitement in the evening hours. One is top marijuana stockCanopy Growth(NYSE: CGC), following the release of the company's latest quarterly results. Outside of that,Sprouts Farmers Market(NASDAQ: SFM) is getting new leadership, while it seemsUnitedHealth Group(NYSE: UNH) has bought yet another healthcare sector asset.
High-profile and popular marijuana stock Canopy Growthhas officially stubbed out its fiscal 2019 with the release of its Q4 and full-year results tonight.
For the quarter, Canopy Growth booked net revenue of 94 million Canadian dollars ($71 million), which was nearly quadruple the Q4 2018 result. Net loss deepened to CA$323 million ($245 million) from the year-ago figure of CA$54 million ($41 million).
On a per-share basis, Canopy Growth's shortfall for the quarter was CA$0.98 ($0.74). On average, analysts had been forecasting a deficit of only CA$0.22 ($0.17). The company's net revenue figure, on the other hand, broadly met expectations.
For the entirety of fiscal 2019, the company's net revenue came in at CA$226 million ($171 million), almost triple 2018's tally. Net loss was CA$670 million ($507 million), far deeper than the CA$54 million ($41 million) the company lost the previous year (similar to the Q4 2018 result).
In the earnings release, Canopy Growth described its fiscal 2019 as "historic."
The company elaborated by writing of its "major steps taken in Canada to build-out our national platform while scaling all of our processes to bring cannabis to market.
"The third quarter of the year benefited from months of advanced production while the fourth quarter relied more on efficient throughput and a more automated platform," it added.
After-market investors seem to be on the fence about Canopy Growth's latest numbers. The stock is up less than 1% at the moment.
Sprouts Farmers Market is sprouting new leadership. The grocery chain announced after market close that it has named a new CEO: Jack Sinclair, a grocery and retail industry veteran and longtime executive.
Sinclair replaces Jim Nielsen and Brad Lukow, the two men who had served as interim co-CEOs sincethe sudden resignation last November of Amin Maredia. Following Sinclair's appointment, Sprouts also announced that Lukow -- who was also CFO -- had resigned from the company. He is to be replaced as CFO on an interim basis by board member Lawrence Molloy.
New CEO Sinclair has held numerous leadership posts prior to his appointment by Sprouts. He was previously CEO of privately held discounter 99 Cents Only Stores, and executive vice president ofWalmart's U.S. grocery division. He also served on the board ofHain Celestial Group.
Although Sprouts has had success expanding its retail footprint, its profitability has been thin, even for the famously low-margin grocery segment. Shareholders will certainly hope Sinclair can bolster Sprouts' bottom-line numbers.
Going by the stock's after-market price, the jury is still out on that one. Sprouts is up marginally in tonight's trading.
Health insurance giant UnitedHealth is apparently adding yet another company to its portfolio. In an article published tonight byThe Wall Street Journal, citing "people familiar with the matter," the company has acquired privately held Equian. UnitedHealth will pay roughly $3.2 billion for its new asset, a healthcare industry payments specialist.
Equian will likely be folded into UnitedHealth's Optum unit, a big healthcare services provider.
This follows yesterday's news regarding the close of Optum's long-gestating acquisition of DaVita Medical Group, itself a subsidiary of top dialysis services providerDaVita(NYSE: DVA). In what's effectively a final step, the Federal Trade Commission (FTC) approved the deal conditionally, mandating that UnitedHealth divest the DaVita Medical Group's HealthCare Partners of Nevada subsidiary within 40 days.
As of this writing, UnitedHealth has not confirmed or denied that it purchased Equian.
If accurate, UnitedHealth bought Equian from its owner, private equity company New Mountain Capital. Since UnitedHealth is a frequent acquirer of healthcare sector assets, this particular deal doesn't seem to be fazing investors much. The company's stock is down, but only slightly, in the post-market hours.
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Eric Volkmanhas no position in any of the stocks mentioned. The Motley Fool recommends UnitedHealth Group. The Motley Fool has adisclosure policy. |
Should You Be Concerned About Moiselle International Holdings Limited's (HKG:130) Historical Volatility?
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Anyone researching Moiselle International Holdings Limited (HKG:130) might want to consider the historical volatility of the share price. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. The first type is company specific volatility. Investors use diversification across uncorrelated stocks to reduce this kind of price volatility across the portfolio. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market.
Some stocks mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). However, Warren Buffett said 'volatility is far from synonymous with risk' in his 2014 letter to investors. So, while useful, beta is not the only metric to consider. To use beta as an investor, you must first understand that the overall market has a beta of one. A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.
Check out our latest analysis for Moiselle International Holdings
Zooming in on Moiselle International Holdings, we see it has a five year beta of 0.83. This is below 1, so historically its share price has been rather independent from the market. If history is a good guide, owning the stock should help ensure that your portfolio is not overly sensitive to market volatility. Many would argue that beta is useful in position sizing, but fundamental metrics such as revenue and earnings are more important overall. You can see Moiselle International Holdings's revenue and earnings in the image below.
Moiselle International Holdings is a rather small company. It has a market capitalisation of HK$184m, which means it is probably under the radar of most investors. Companies with market capitalisations around this size often show poor correlation with the broader market because market volatility is overshadowed by company specific events, or other factors. It's worth checking to see how often shares are traded, because very small companies with very low beta values are often only thinly traded.
One potential advantage of owning low beta stocks like Moiselle International Holdings is that your overall portfolio won't be too sensitive to overall market movements. However, this can be a blessing or a curse, depending on what's happening in the broader market. In order to fully understand whether 130 is a good investment for you, we also need to consider important company-specific fundamentals such as Moiselle International Holdings’s financial health and performance track record. I urge you to continue your research by taking a look at the following:
1. Financial Health: Are 130’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here.
2. Past Track Record: Has 130 been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look atthe free visual representations of 130's historicalsfor more clarity.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
NBA draft: Celtics trade Aron Baynes to Suns for 2020 draft pick
The Boston Celtics traded center Aron Baynes to the Phoenix Suns on Thursday night, according to ESPNs Adrian Wojnarowski. The Suns are acquiring Celtics center Aron Baynes as part of the Ty Jerome trade, league source tells ESPN. Adrian Wojnarowski (@wojespn) June 21, 2019 Baynes averaged 5.6 points and 4.7 rebounds for Boston last season in just more than 16 minutes per game. The 32-year-old missed extended time this season on multiple occasions due to injuries, including multiple sprained ankles and a minor surgery on his hand. He signed a two-year deal with the Celtics before last season, and is due to make nearly $5.5 million this season before becoming an unrestricted free agent in 2020. The Celtics first acquired the No. 24 overall pick in Thursdays NBA draft by reaching a deal with the Philadelphia 76ers. After sending that pick to the Suns, along with Baynes, the Suns drafted Virginia guard Ty Jerome. In return, the Suns have sent the Celtics a 2020 first-round pick which they had received from the Milwaukee Bucks in exchange for Eric Bledsoe. Jerome averaged 13.6 points, 5.5 assists and 3.8 rebounds last season for the Cavaliers during their NCAA title run, and could be the point guard the Suns have been looking for. Phoenix has made plenty of moves throughout the draft, including trading away T.J. Warren before the draft started, which cleared up a significant amount of cap space. The Celtics have sent center Aron Baynes and recent draft pick Ty Jerome to the Phoenix Suns for a 2020 pick. (Getty Images) More from Yahoo Sports: Zion breaks down next to mom after being selected No. 1 Why the No. 4 pick won't be a Laker but still wore team's hat Minor league team loses on outfielder's mindless flub Shaq's son 'could've died' from heart defect |
Is Bajaj Consumer Care Limited (NSE:BAJAJCON) Worth ₹319 Based On Its Intrinsic Value?
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Does the June share price for Bajaj Consumer Care Limited (NSE:BAJAJCON) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value. I will use the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model.
Check out our latest analysis for Bajaj Consumer Care
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars:
[{"": "Levered FCF (\u20b9, Millions)", "2019": "\u20b92.13k", "2020": "\u20b92.41k", "2021": "\u20b92.61k", "2022": "\u20b92.94k", "2023": "\u20b93.22k", "2024": "\u20b93.51k", "2025": "\u20b93.81k", "2026": "\u20b94.13k", "2027": "\u20b94.46k", "2028": "\u20b94.81k"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x7", "2020": "Analyst x8", "2021": "Analyst x8", "2022": "Analyst x1", "2023": "Est @ 9.58%", "2024": "Est @ 8.97%", "2025": "Est @ 8.54%", "2026": "Est @ 8.24%", "2027": "Est @ 8.04%", "2028": "Est @ 7.89%"}, {"": "Present Value (\u20b9, Millions) Discounted @ 14.43%", "2019": "\u20b91.86k", "2020": "\u20b91.84k", "2021": "\u20b91.74k", "2022": "\u20b91.72k", "2023": "\u20b91.64k", "2024": "\u20b91.56k", "2025": "\u20b91.48k", "2026": "\u20b91.40k", "2027": "\u20b91.33k", "2028": "\u20b91.25k"}]
Present Value of 10-year Cash Flow (PVCF)= ₹15.83b
"Est" = FCF growth rate estimated by Simply Wall St
After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 7.6%. We discount the terminal cash flows to today's value at a cost of equity of 14.4%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = ₹4.8b × (1 + 7.6%) ÷ (14.4% – 7.6%) = ₹75b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= ₹₹75b ÷ ( 1 + 14.4%)10= ₹19.53b
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is ₹35.36b. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of ₹239.29. Relative to the current share price of ₹319.25, the company appears reasonably expensive at the time of writing. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out.
The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Bajaj Consumer Care as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 14.4%, which is based on a levered beta of 0.800. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Bajaj Consumer Care, I've put together three additional factors you should look at:
1. Financial Health: Does BAJAJCON have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Future Earnings: How does BAJAJCON's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with ourfree analyst growth expectation chart.
3. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of BAJAJCON? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NSE every day. If you want to find the calculation for other stocks justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Bangladesh receives interest from 12 companies to build LNG terminal
By Jessica Jaganathan and Ruma Paul
SINGAPORE/DHAKA (Reuters) - Bangladesh has received interest from twelve companies to build the country's first onshore liquefied natural gas (LNG) import terminal, according to four sources familiar with the matter.
The South Asian country, which has a population of more than 160 million, is turning to land-based LNG terminals as its first imports of the super-chilled fuel via a floating platform were delayed due to weather and technical issues.
Rupantarita Prakritik Gas Co, part of state-owned oil and gas company Petrobangla, earlier this year had requested expressions of interest (EOI) from potential terminal developers for a land-based LNG regasification terminal at Matarbari in the Cox's Bazar district of southern Bangladesh.
Twelve companies have submitted their interest to build the terminal, said two officials from Rupantarita Prakritik Gas Co.
The companies include Japan's Mitsui, South Korean utility KOGAS, and a consortium led by Summit Corp, a unit of Bangladesh's Summit Group, the officials said.
Japan's Mitsubishi and JERA Co, the world's largest LNG buyer, are minority stakeholders in the Summit consortium.
India's Petronet LNG and a French company have also submitted their interest, a person familiar with the matter said. The person, who didn't identify the French company by name, spoke on condition of anonymity as he was not authorised to speak with media.
Summit declined to comment, while the South Korean and Japanese companies were not immediately available for comment. Petronet could not be reached before office hours.
A committee will evaluate the proposals and create a shortlist based on the capabilities and technical assessments of the 12 companies, one of the officials said.
It could take more than a year to complete and award the contract for the terminal, the official said.
The expressions of interest were initially due on March 20, but the closing date was delayed to this week after the companies requested more time.
The expression of interest is for the design, engineering, procurement, construction and commissioning of an onshore terminal that can handle 7.5 million tonnes a year of LNG, including receiving, unloading, storage and regasification.
The project is on a build-own-operate basis for 20 years, with ownership to then be transferred at no cost to the Bangladeshi government or a company nominated by the government.
(Reporting by Jessica Jaganathan in SINGAPORE and Ruma Paul in DHAKA, with additional reporting by Jane Chung in SEOUL and Aaron Sheldrick in TOKYO; Editing by Tom Hogue) |
What Kind Of Shareholder Owns Most Yojee Limited (ASX:YOJ) Stock?
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The big shareholder groups in Yojee Limited (ASX:YOJ) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.
Yojee is not a large company by global standards. It has a market capitalization of AU$75m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about YOJ.
See our latest analysis for Yojee
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 21% of Yojee. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Yojee's earnings history, below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Yojee. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our most recent data indicates that insiders own a reasonable proportion of Yojee Limited. Insiders have a AU$13m stake in this AU$75m business. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You canclick here to see if those insiders have been buying or selling.
With a 50% ownership, the general public have some degree of sway over YOJ. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
We can see that Private Companies own 12%, of the shares on issue. 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.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph.
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. |
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