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U.N. labor body adopts #MeToo pact against violence at work
By Stephanie Nebehay GENEVA (Reuters) - The U.N. agency overseeing international labor standards adopted on Friday a new treaty against violence and harassment in the workplace, fueled by the women's #MeToo movement. The convention, which will be binding on governments that ratify it, was agreed by a wide margin on the final day of The International Labour Organization's (ILO) annual conference of governments, employers groups and workers. "For the very first time ... the international community has equipped itself with a global instrument to combat violence and harassment at work," ILO director-general Guy Ryder said after its adoption to cheers. The #MeToo movement, sparked by allegations in Hollywood in 2017, cast a harsh light on widespread patterns of sexual harassment or abuse in multiple spheres of American life. It has led to dozens of powerful men in entertainment, politics and other fields being accused of sexual misconduct. The century-old ILO began its first discussions in 2015, Ryder said, adding: "The momentum and the significance of this process has been accentuated by the #MeToo movement." The treaty aims to protect workers, irrespective of contractual status, from harassment in places where they are paid, taking a rest, eating or using sanitary facilities. It also covers work-related trips, training, social activities, communications and commutes. Ryder said the next step was national ratifications. All but six governments voted in favor of the pact, with Russia, Singapore, El Salvador, Malaysia, Paraguay and Kyrgyzstan abstaining, ILO records showed. Employers representatives from Malaysia and several Latin American countries voted against it. "EPIDEMIC ACROSS THE WORLD" "Nobody should be subjected to violence and harassment at work. It is an epidemic across the world that needs to end," employers' spokeswoman Alana Matheson told the talks. The text aims to protect all workers in the public and private sectors plus the informal economy. Story continues "No-one should be expected to endure any form of gender-based violence and harassment when they come to work - whether it is persistent comments and jokes, leering, sexist remarks, groping or worse," said Marie Clarke, the workers' vice-chair. "Sadly, this is the reality for too many workers." The text does not specifically refer to LGBTi (lesbian, gay, bisexual, transgender and intersex) people as being amongst the most vulnerable, as sought by activists. Ryder acknowledged that the LGBTi issue was controversial, but said: "The spirit of the Convention ... is that everybody falls under the protection of this Convention". Iran's representative said the treaty should be considered in accordance with each country's national context, norms and values. The Islamic Republic, which voted in favor, said it had a policy of "zero tolerance" against workplace harassment. Martha E. Newton, U.S. Department of Labor deputy undersecretary for international affairs, said it was important to note that lawful enforcement of immigration laws should not be construed as harassment under the convention. U.S. President Trump has made stopping illegal migration one of his signature policy pledges. (Reporting by Stephanie Nebehay; Editing by Tom Miles and Andrew Cawthorne) |
Could The Lam Research Corporation (NASDAQ:LRCX) Ownership Structure Tell Us Something Useful?
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Every investor in Lam Research Corporation (NASDAQ:LRCX) should be aware of the most powerful shareholder groups. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.
Lam Research has a market capitalization of US$28b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about LRCX.
View our latest analysis for Lam Research
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.
Lam Research already has institutions on the share registry. Indeed, they own 90% of the company. 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 Lam Research's earnings history, below. Of course, the future is what really matters.
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Lam Research is not owned by hedge funds. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that Lam Research Corporation insiders own under 1% of the company. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amount to less than 1%, we can see that board members collectively own US$124m worth of shares (at current prices). In this sort of situation, it can be more interesting tosee if those insiders have been buying or selling.
With a 10% ownership, the general public have some degree of sway over LRCX. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
It's always worth thinking about the different groups who own shares in a company. But to understand Lam Research better, we need to consider many other factors.
I always like to check for ahistory of revenue growth. You can too, by accessing this free chart ofhistoric revenue and earnings in thisdetailed graph.
Ultimatelythe future is most important. You can access thisfreereport on analyst forecasts for the company.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Is Schwab Fundamental U.S. Broad Market Index ETF (FNDB) a Strong ETF Right Now?
A smart beta exchange traded fund, the Schwab Fundamental U.S. Broad Market Index ETF (FNDB) debuted on 08/13/2013, and offers broad exposure to the Style Box - All Cap Value category of the market. What Are Smart Beta ETFs? The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market. Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency. But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market. Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics. Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns. Fund Sponsor & Index FNDB is managed by Charles Schwab, and this fund has amassed over $284.12 M, which makes it one of the average sized ETFs in the Style Box - All Cap Value. This particular fund, before fees and expenses, seeks to match the performance of the Russell RAFI US Index. The Russell RAFI US Index measures the performance of the constituent companies by fundamental overall company scores. Cost & Other Expenses When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal. Operating expenses on an annual basis are 0.25% for FNDB, making it one of the cheaper products in the space. Story continues It's 12-month trailing dividend yield comes in at 2.18%. Sector Exposure and Top Holdings Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis. For FNDB, it has heaviest allocation in the Information Technology sector --about 16.10% of the portfolio --while Financials and Industrials round out the top three. When you look at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 3.53% of the fund's total assets, followed by Exxon Mobil Corp Common Stock (XOM) and Microsoft Corp Common Stock Usd.00000625 (MSFT). Its top 10 holdings account for approximately 18.33% of FNDB's total assets under management. Performance and Risk The ETF has added about 16.83% so far this year and was up about 4.44% in the last one year (as of 06/21/2019). In the past 52-week period, it has traded between $31.73 and $40.14. The ETF has a beta of 1.01 and standard deviation of 11.94% for the trailing three-year period, making it a medium risk choice in the space. With about 1648 holdings, it effectively diversifies company-specific risk. Alternatives Schwab Fundamental U.S. Broad Market Index ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider. Invesco High Yield Equity Dividend Achievers ETF (PEY) tracks NASDAQ US Dividend Achievers 50 Index and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Invesco High Yield Equity Dividend Achievers ETF has $844.94 M in assets, iShares Core S&P U.S. Value ETF has $5.63 B. PEY has an expense ratio of 0.54% and IUSV charges 0.04%. Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Value. Bottom Line To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Schwab Fundamental U.S. Broad Market Index ETF (FNDB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Invesco High Yield Equity Dividend Achievers ETF (PEY): ETF Research Reports Exxon Mobil Corporation (XOM) : Free Stock Analysis Report To read this article on Zacks.com click here. |
Should John Hancock Multifactor Large Cap ETF (JHML) Be on Your Investing Radar?
Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the John Hancock Multifactor Large Cap ETF (JHML) is a passively managed exchange traded fund launched on 09/28/2015.
The fund is sponsored by John Hancock. It has amassed assets over $916.76 M, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.35%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.32%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 20% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 2.84% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 11.91% of total assets under management.
Performance and Risk
JHML seeks to match the performance of the John Hancock Dimensional Large Cap Index before fees and expenses. The John Hancock Dimensional Large Cap Index comprises of a subset of securities in the U.S. Universe issued by companies whose market capitalizations are larger than that of the 801st largest U.S. company.
The ETF has added roughly 19.28% so far this year and it's up approximately 7.26% in the last one year (as of 06/21/2019). In the past 52-week period, it has traded between $30.10 and $38.23.
The ETF has a beta of 1.03 and standard deviation of 12.24% for the trailing three-year period, making it a medium risk choice in the space. With about 785 holdings, it effectively diversifies company-specific risk.
Alternatives
John Hancock Multifactor Large Cap ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, JHML is an outstanding option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $182.27 B in assets, SPDR S&P 500 ETF has $272.93 B. IVV has an expense ratio of 0.04% and SPY charges 0.09%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportJohn Hancock Multifactor Large Cap ETF (JHML): ETF Research ReportsAmazon.com, Inc. (AMZN) : Free Stock Analysis ReportApple Inc. (AAPL) : Free Stock Analysis ReportMicrosoft Corporation (MSFT) : Free Stock Analysis ReportiShares Core S&P 500 ETF (IVV): ETF Research ReportsSPDR S&P 500 ETF (SPY): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment Research |
Mattel Launches Hot Wheels Mario Kart Cars to Revive Sales
Mattel, Inc.MAT and Nintendo NTDOY are entering a partnership, where they are globally launching a new line of Hot Wheels Mario Kart die-cast vehicles and track sets. Starting in summer 2019, these cars and track sets will be available at retailers in select markets.
These cars are 1:64 scale replicas of the iconic Mario Kart characters. Additionally, Hot Wheels is developing tracks for these cars to race around. The three game-inspired sets, which are being launched, include Piranha Plant slide track set, Thwomp Ruins track set and Hot Wheels Mario Kart track set. On the first release, there will be cars for Mario, Yoshi, Luigi and Bowser, with additional characters coming later such as Princess Peach, Koopa Troop and Toad.
Mattel has been evidently pressing ahead with its Hot Wheels category of late. The company recently launched Hot Wheels id, which features Smart Track, Race Portal and Hot Wheels id vehicles. Also, the new Hot Wheels id provides users a mixture of digital and physical play. Users can now track speed, count laps and have a virtual garage.
Why is Mattel Focusing on Enhancing Hot Wheels?
As is known, Mattel has been struggling with a dismal top-line performance for quite some time now. In order to revive sales, the company is continuously trying to focus on innovation and product launch. Particularly, it is building strong product lineup for its core and licensed brands. Owing to its popularity among children, the company’s premier brand like Hot Wheels has been the category leader in multiple product segments for several years.
In the first quarter of 2019, gross sales at the Hot Wheels brand increased 4% on a reported basis and 9% in constant currency, courtesy of Hot Wheels' 50th anniversary. Also, in 2018, worldwide gross sales for the brand were up 9% and reached highest annual sales in its 50-year history. Global POS were also up by a high-single digit for the year.
Bottom Line
We believe that the launch of the Hot Wheels Mario Kart die-cast vehicles will help Mattel combat its long-standing trend of declining sales. Notably, the company has not been able to revive sales yet despite undertaking innumerable strategies.
Mattel, like Hasbro HAS and JAKKS Pacific JAKK, is expected to keep shouldering the Toys ‘R’ Us liquidation effect in the near term. In fact, owing to the liquidation, Mattel’s net revenues in the first quarter of 2019 declined 3% year over year.
Meanwhile, a look at the company’s price trend reveals that the stock has had an unimpressive run on the bourses in the past year. Shares of this Zacks Rank #3 (Hold) company have lost 35.3% compared with the industry’s decline of 29.8% in the same time frame.
You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportMattel, Inc. (MAT) : Free Stock Analysis ReportHasbro, Inc. (HAS) : Free Stock Analysis ReportJAKKS Pacific, Inc. (JAKK) : Free Stock Analysis ReportNintendo Co. (NTDOY) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
With EPS Growth And More, Canadian Utilities (TSE:CU) Is Interesting
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It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks with a good story, even if those businesses lose money. 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.
In contrast to all that, I prefer to spend time on companies likeCanadian Utilities(TSE:CU), which has not only revenues, but also profits. While profit is not necessarily a social good, it's easy to admire a business than can consistently produce it. Conversely, a loss-making company is yet to prove itself with profit, and eventually the sweet milk of external capital may run sour.
Check out our latest analysis for Canadian Utilities
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. Impressively, Canadian Utilities has grown EPS by 24% per year, compound, in the last three years. If the company can sustain that sort of growth, we'd expect shareholders to come away winners.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. Canadian Utilities's EBIT margins have actually improved by 4.7 percentage points in the last year, to reach 28%, but, on the flip side, revenue was down 6.4%. That falls short of ideal.
In the chart below, you can see how the company has grown earnings, and revenue, over time. To see the actual numbers, click on the chart.
The trick, as an investor, is to find companies that aregoing toperform well in the future, not just in the past. To that end, right now and today, you can checkour visualization of consensus analyst forecasts for future Canadian Utilities EPS100% free.
Since Canadian Utilities has a market capitalization of CA$10b, we wouldn't expect insiders to hold a large percentage of shares. But we are reassured by the fact they have invested in the company. With a whopping CA$130m 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.
It means a lot to see insiders invested in the business, but I find myself wondering if remuneration policies are shareholder friendly. Well, based on the CEO pay, I'd say they are indeed. For companies with market capitalizations between CA$5.3b and CA$16b, like Canadian Utilities, the median CEO pay is around CA$6.1m.
The Canadian Utilities CEO received total compensation of just CA$2.1m in the year to December 2018. That's clearly well below average, so at a glance, that arrangement seems generous to shareholders, and points to a modest remuneration culture. While the level of CEO compensation isn't a huge factor in my view of the company, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. It can also be a sign of good governance, more generally.
You can't deny that Canadian Utilities has grown its earnings per share at a very impressive rate. That's attractive. If that's not enough, consider also that the CEO pay is quite reasonable, and insiders are well-invested alongside other shareholders. Each to their own, but I think all this makes Canadian Utilities look rather interesting indeed. 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 Canadian Utilities 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. |
What's in Store for Patterson Companies (PDCO) in Q4 Earnings?
Patterson Companies, Inc.’s PDCO fourth-quarter fiscal 2019 results are expected to release on Jun 27, before the market opens. While its core segments — Patterson Dental and Animal Health — are expected to impress, a narrowed guidance for fiscal 2019 raises concern.
The company has a negative average earnings surprise of 4.4% in the trailing four quarters.
Which Way are Estimates Headed?
For the quarter to be reported, the Zacks Consensus Estimate for revenues is pegged at $1.43 billion, suggesting growth of 2% from the year-ago reported number. The same for earnings is pinned at 40 cents, indicating a decline of 33.3% from the year-ago reported figure.
Patterson Companies, Inc. Price and EPS Surprise
Patterson Companies, Inc. price-eps-surprise | Patterson Companies, Inc. Quote
Factors to Consider
We expect consumable and private label businesses to see robust growth in the fiscal fourth quarter, thereby driving Patterson Companies’ core Animal Health segment.
Notably, management is constantly adding new capabilities to strengthen the Animal Health arm. The company has been capitalizing on significant market opportunity in Animal Health by offering a full and comprehensive suite of solutions that allow veterinarians to offer all methods of serving their customers, including home delivery with tools that drive greater levels of compliance. This is expected to drive fiscal fourth-quarter results.
Coming to Patterson Dental, the segment saw year-over-year rise in revenues in the last reported quarter, after more than two years of dismal performance. This reflects that management has been stabilizing the unit through continued investments. Additionally, the dental portfolio is also witnessing a robust demand currently.
However, a narrowed guidance for fiscal 2019 earnings per share is worrisome.
Notably, the company now expects the metric to be $1.40-$1.45 compared with the previously communicated $1.40-$1.50.
We believe that stiff competition from Henry Schein Dental, a unit of Henry Schein HSIC, and pricing pressures pose as headwinds for the company.
What Does Our Model Say?
Per our proven model, a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to deliver a positive earnings surprise in the quarter. However, this is not the case here.
Earnings ESP:Patterson Companies has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank:Patterson Companies currently carries a Zacks Rank #3.
Please note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revision.
Peer Releases
Here are two stocks that reported solid results in this earnings season.
Stryker Corporation SYK delivered first-quarter 2019 adjusted earnings per share of $1.88, beating the Zacks Consensus Estimate by 2.2%. Revenues of $3.52 billion were in line with the Zacks Consensus Estimate. The stock presently carries a Zacks Rank of 3. You can seethe complete list of today’s Zacks #1 Rank stocks here.
DENTSPLY SIRONA Inc. XRAY reported adjusted earnings per share of 49 cents in the first quarter of 2019, beating the Zacks Consensus Estimate of 38 cents. Revenues totaled $946.2 million and surpassed the Zacks Consensus Estimate of $917.1 million. The stock currently carries a Zacks Rank #2.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportStryker Corporation (SYK) : Free Stock Analysis ReportPatterson Companies, Inc. (PDCO) : Free Stock Analysis ReportDENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis ReportHenry Schein, Inc. (HSIC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
US STOCKS-Futures slip after strong rally as Iran tensions rise
(For a live blog on the U.S. stock market, click or type LIVE/ in a news window.) * Futures down: Dow 0.15 pct, S&P 0.22 pct, Nasdaq 0.31 pct By Amy Caren Daniel June 21 (Reuters) - U.S. stock index futures dipped on Friday, after a strong rally in the prior session that helped the S&P 500 hit a record high, as rising tensions between the United States and Iran kept investors on edge. Tehran had received a message from President Donald Trump, delivered through Oman overnight, warning that a U.S. attack was imminent but adding he was against war and wanted talks, Iranian officials told Reuters on Friday. They spoke shortly after the New York Times reported that Trump had approved military strikes against Iran in retaliation for the downing of a U.S. surveillance drone but called off the attacks at the last minute. The benchmark S&P 500 index closed at a new record of 2,954.18 on Thursday after the Federal Reserve signaled interest rate cuts beginning as early as next month. Money markets are pricing in three Fed rate cuts before year-end and are tipping as many as five cuts through mid-2020. Investors will now look to a G20 summit in Japan next week for signs of progress on talks between the United States and China to resolve their differences that had sparked the benchmark index's worst monthly performance this year in May. Oil prices rallied about 1% on fears that a U.S. military attack on Iran that would disrupt flows from the Middle East, which provides more than 20% of the world's oil output. At 6:35 a.m. ET, Dow e-minis were down 39 points, or 0.15%. S&P 500 e-minis were down 6.5 points, or 0.22%, and Nasdaq 100 e-minis were down 24 points, or 0.31 %. Chipmakers took a beating in premarket trading after Britain's IQE Plc became the latest semiconductor company to warn on full-year revenue, citing the impact of the Huawei ban. Shares of Intel Corp, Micron Technology and Advanced Micro Devices fell between 0.4% and 1.3%. Story continues Among other stocks, Facebook Inc fell 0.6% after Bank of England Governor Mark Carney said major central banks and regulators will want oversight of the social media company's proposed new currency and payment system Libra. Slack Technologies Inc gained 4%, a day after the workplace messaging platform soared nearly 50% in market debut. On the macro front, Markit manufacturing sector flash PMI data, due at 09:45 a.m. ET, is expected to show a reading 50.4 in June up from 50, a month earlier. The PMI reading comes after data from Germany, France and euro zone came in slightly higher in June compared to May. (Reporting by Amy Caren Daniel in Bengaluru; Editing by Sriraj Kalluvila) |
Could MPX International Corporation's (CNSX:MPXI) Investor Composition Influence The Stock Price?
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The big shareholder groups in MPX International Corporation (CNSX:MPXI) have power over the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'
MPX International is not a large company by global standards. It has a market capitalization of CA$70m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are not on the share registry. Let's delve deeper into each type of owner, to discover more about MPXI.
View our latest analysis for MPX International
Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.
There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. MPX International might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.
MPX International is not owned by hedge funds. 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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
It seems insiders own a significant proportion of MPX International Corporation. It has a market capitalization of just CA$70m, and insiders have CA$7.4m worth of shares in their own names. This may suggest that the founders still own a lot of shares. You canclick here to see if they have been buying or selling.
The general public, mostly retail investors, hold a substantial 85% stake in MPXI, suggesting it is a fairly popular stock. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.
Our data indicates that Private Companies hold 4.6%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
It's always worth thinking about the different groups who own shares in a company. But to understand MPX International better, we need to consider many other factors.
I always like to check for ahistory of revenue growth. You can too, by accessing this free chart ofhistoric revenue and earnings in thisdetailed graph.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, backed by strong financial data.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
What Should You Know About Carpenter Technology Corporation's (NYSE:CRS) Growth?
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In March 2019, Carpenter Technology Corporation (NYSE:CRS) announced its earnings update. Overall, analysts seem cautiously optimistic, with earnings expected to grow by 20% in the upcoming year relative to the past 5-year average growth rate of 15%. Presently, with latest-twelve-month earnings at US$187m, we should see this growing to US$224m by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Carpenter Technology in the longer term. Readers that are interested in understanding the company beyond these figures shouldresearch its fundamentals here.
See our latest analysis for Carpenter Technology
The view from 7 analysts over the next three years is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of CRS's earnings growth over these next few years.
This results in an annual growth rate of 20% based on the most recent earnings level of US$187m to the final forecast of US$333m by 2022. EPS reaches $5.85 in the final year of forecast compared to the current $3.96 EPS today. With a current profit margin of 8.7%, this movement will result in a margin of 12% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Carpenter Technology, I've put together three pertinent factors you should further examine:
1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Valuation: What is Carpenter Technology 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 Carpenter Technology is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of Carpenter Technology? 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. |
Dharma monthly loan originations down 60% as users’ frustrations grow
After experiencing robust growth for the first four months of the year, Dharma has seen a drastic reversal. May loan origination volume was down 60% from April to $2.8 million, and June is on pace to look even worse. Based on June’s daily average volume so far, we project monthly loan originations to fall another 60% to $1.1 million.
*Estimate based on June daily average volume
Source: Loanscan
In terms of loans outstanding, Dharma has kept things relatively stable, hovering around a balance of $9.1 million. On the other hand, Compound (a decentralized money market protocol and one of Dharma’s main competitors) experienced strong growth since the public launch of its revamped Compound v2 on May 23.
Join Genesis nowand continue reading,Dharma monthly loan originations down 60% as users’ frustrations grow! |
Spotify Premium vs. Apple Music: What's the best value?
It's never been easier to listen to any music you could possibly fathom, no matter where in the world you are, but that doesn't mean the choice of how to do that is easy.
While alternatives like Pandora, Tidal, and Amazon Music exist and have their audiences, it certainly seems like the big battle right now is between Spotify and Apple Music. Spotify has offered a premium subscription for longer, but Apple haspicked up considerable steamin recent years.
Which one should you actually use, though?
That's sort of a tough question to answer. Both services cost $10 per month, so it's not a simple math problem. The biggest differences between the two streaming juggernauts exist in the margins, so that's where we'll look as we try to determine who has the better value between Apple Music and Spotify.Read more...
More aboutMusic,Spotify,Apple Music,Music Streaming, andSpotify Premium |
Better Buy: Google vs. IBM
Big technological change can lead to eye-popping investment returns, but it's not the only way to invest in tech. And because tech changes rapidly, it can make investing in the space intimidating for some. You can back incremental advancements to software, hardware, cloud computing infrastructure, etc. and still make plenty of money.
Two tech "blue chips" that offer stability and a diverse product lineup across all of these categories are 108-year-oldInternational Business Machines(NYSE: IBM)and 21-year-oldAlphabet(NASDAQ: GOOGL)(NASDAQ: GOOG). IBM is currently a full-service enterprise IT service provider across software, platforms, security, consulting, and even specialized hardware. Yet IBM has had a very difficult past decade or so. Some of its legacy businesses have been partially disrupted by the rise of cloud computing, though IBM has its own cloud offering as well.
Meanwhile, Alphabet has grown its Google search engine into the world's dominant search platform, with over 90% market share. It also has a burgeoning cloud computing offering, as well as a number of money-losing "Other Bets" in futuristic technologies such as self-driving cars that could pay off big in the future. And yet, Alphabet has also run into some issues lately, including slowing growth andregulatory scrutinyover its monopoly-like position in search.
So, which tech company is the better bet today?
Image source: Getty Images.
If you're looking for growth, then look no further -- the clear winner is Alphabet. Though growth has moderated a bit from its past trends above 20%, posting high-teens yearly growth at Alphabet's size is still an impressive feat:
GOOG revenue (quarterly YoY growth)data byYCharts
Meanwhile, IBM has struggled to find its footing. Although last quarter IBM displayed growth in some key segments such as cloud infrastructure (up 12%) and consulting (up 9%), overall revenue was down (4.7%) due to currency headwinds, the decline in some legacy businesses, and declines in the mainframe businesses, which is "late" in its product cycle.
Both companies suffered from currency headwinds -- without the negative effects of currency, Alphabet's revenue growth would have been 19%, and IBM's revenue would have declined just 1%.
IBM is doing an admirable job of swimming upstream, but in terms of growth, it's no contest. Alphabet's digital advertising empire is still a steady growth engine and should be for the foreseeable future.
Though each company has its own core offerings, both are reaching for new growth as well. Alphabet has several major initiatives, including its cloud computing offering and its Other Bets segments. It's hard to know exactly how the cloud division is doing, as Alphabet lumps the cloud in with its hardware and app store revenue in a category called "Google Other." That overall category grew at a rate of 25.1% last quarter, though it's likely Google's cloud grew at a higher rate, given industry trends.
Meanwhile, Alphabet's Other Bets across next-gen medicine, self-driving cars, internet connectivity, and AI research generated an operatinglossof $868 million last quarter, meaning these new research activities continued to burn cash without regard for near-term profitability. Essentially, Alphabet is using its massive$100 billion-plus cash hoardto fund an internal venture-capital effort in the hopes of hitting it big.
IBM, on the other hand, announced a single large, transformationalacquisition ofRed Hat(NYSE: RHT)in October 2018 for a whopping $34 billion. The acquisition could benefit IBM in a number of ways. First, Red Hat is the largest service provider of open-source software, which helps large organizations manage their workloads across different tech platforms. This fits with IBM's focus on "hybrid cloud" solutions for customers that want to seamlessly manage workloads across the public and private clouds, as well as their own data centers, where IBM has had a traditional advantage.
IBM will also benefit from Red Hat's higher growth, which had been as high as 20% early last year, though it decelerated to 14% last quarter (though 17% in constant currency). Consistent growth is something IBM has been missing.
Finally, the acquisition should also allow for merger synergies and the cutting of duplicative corporate functions, which should also help IBM on the cost side.
While Google has growth, IBM is definitely the less expensive of the two stocks:
GOOG PE ratio (TTM)data byYCharts
As you can see, Alphabet still retains its growthPE multiplein the 20s, while IBM still trades at a lowly 10 times forward earnings.
However, when considering each company's debt (or lack thereof), the valuation gap closes a fair amount, with each company's EV/EBITDA metrics closer to each other. That's because Alphabet is swimming in excess cash, while IBM has a substantial $50 billion in debt, though $30 billion of that is its financing division, meaning the company has an operational debt of only $20 billion. Nevertheless, that operational debt is set to double, as IBM just sold another $20 billion in bonds to fund its all-cash Red Hat acquisition.
That's why Alphabet's forward EV/EBITDA, which projects next year's figures, is only 11.5, while IBM's forward EV/EBITDA is a much closer 8.1.
For most investors, Google parent Alphabet appears the way to go. It's still generating healthy organic growth, has a huge balance sheet, a number of high-upside "lottery tickets," and a reasonable valuation. That makes it a safer play.
However, IBM's dirt-cheap valuation could give it a big boost if it actually succeeds in growing its cloud services, and if the Red Hat acquisition expands growth and profits. Meanwhile, shareholders are paid a dividend of more than 5% as they wait.
That could make IBM the choice for deep value investors; however, it's a much riskier play. Since Alphabet seems the higher-quality business at the moment and still has a reasonable valuation, it remains the better choice for most investors.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.Billy Dubersteinowns shares of Alphabet (C shares) and IBM. His clients may own shares of the companies mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares) and Alphabet (C shares). The Motley Fool is short shares of IBM. The Motley Fool has adisclosure policy. |
Bank of Scotland fined £45m for failing to report fraud suspicions in HBOS scandal
Bank of Scotland has been fined £45.5m for failing to report suspicions of fraud in a case that resulted insix people being jailed.
The UK’s Financial Conduct Authority (FCA) imposed the penalty after finding that there had been “insufficient challenge, scrutiny or inquiry across the organisation” once evidence had emerged of suspicious conduct in 2007.
The manager in charge of dealing with distressed customers at the bank’s Reading branch at the time,Lyndon Scourfield, was sentenced to 11 years in jail in 2017 for running a fraud that cost businesses and the bank hundreds of millions of pounds.
A court heard that Mr Scourfield personally made close to £700,000 from the scam, with some of the proceeds spent on prostitutes and luxury holidays to Thailand and Barbados.
Bank of Scotland, which was then part of Halifax Bank of Scotland and is now owned by Lloyds, discovered suspicious activity in its Impaired Assets Team in early 2007 but did not inform regulators until July 2009, the FCA said on Friday. The bank did not report its suspicions to any other law enforcement agency.
“BOS’s failures caused delays to the investigations by both the FCA and Thames Valley Police,” said Mark Steward, executive director of enforcement and market oversight at the FCA.
“There is no evidence anyone properly addressed their mind to this matter or its consequences. The result risked substantial prejudice to the interests of justice, delaying scrutiny of the fraud by regulators, the start of criminal proceedings, as well as the payment of compensation to customers.”
Lloyds said it had co-operated with the FCA throughout the regulator’s investigation and that the failures at Bank of Scotland were “not intentional”.
Lloyds chief executive Antonio Horta-Osorio said: “I want to apologise once again for the very deep distress caused to the customers affected by the HBOS Reading fraud. The perpetrators of the fraud rightly went to jail for the crimes they committed. The Group’s management team has been committed to putting things right.”
The fraud involved Mr Scourfield referring business customers in financial difficulty to his friend, businessman David Mills, and a third man, Michael Bancroft.
Mr Mills and Mr Bancroft claimed to be turnaround consultants but were found to have bullied business owners and squeezed them for large consultancy fees.
“If BOS had communicated its suspicions to the FSA in May 2007, as it should have done, the criminal misconduct could have been identified much earlier,” the FCA said, referring to its predecessor the Financial Services Authority. |
What Are Analysts Saying About The Future Of Carpenter Technology Corporation's (NYSE:CRS)?
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In March 2019, Carpenter Technology Corporation (NYSE:CRS) released its earnings update. Generally, analyst consensus outlook appear cautiously optimistic, with earnings expected to grow by 20% in the upcoming year against the past 5-year average growth rate of 15%. With trailing-twelve-month net income at current levels of US$187m, we should see this rise to US$224m in 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Readers that are interested in understanding the company beyond these figures shouldresearch its fundamentals here.
Check out our latest analysis for Carpenter Technology
Longer term expectations from the 7 analysts covering CRS’s stock is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To understand the overall trajectory of CRS's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
From the current net income level of US$187m and the final forecast of US$333m by 2022, the annual rate of growth for CRS’s earnings is 20%. This leads to an EPS of $5.85 in the final year of projections relative to the current EPS of $3.96. In 2022, CRS's profit margin will have expanded from 8.7% to 12%.
Future outlook is only one aspect when you're building an investment case for a stock. For Carpenter Technology, there are three key 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 Carpenter Technology 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 Carpenter Technology is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of Carpenter Technology? 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. |
Bang-up week on Wall Street ends with a whimper
By Noel Randewich
(Reuters) - Wall Street edged lower on Friday, as U.S. Vice President Mike Pence's decision to defer a speech on China policy increased optimism on upcoming trade talks between Washington and Beijing, while tensions between the United States and Iran undercut sentiment.
The S&P 500 briefly hit a record high.
Pence called off a planned China speech that had been cast initially as a sequel to a blistering broadside he delivered in October, a move aimed at averting increasing tensions with Beijing, a White House official said.
The benchmark S&P 500 index hit an intraday record high of 2,964.15, but then stepped back as the rising tensions between the United States and Iran kept investors on edge.
Top for investors next week, U.S. President Donald Trump and Chinese President Xi Jinping are expected to restart trade talks at the Group of 20 summit in Japan on June 28-29.
"People will be focusing on what happens at the G20 with Presidents Trump and Xi," said Kurt Brunner, portfolio manager with the Swarthmore Group in Philadelphia. Any indication of progress from Trump following the meeting would be positive for Wall Street, he said.
Stocks logged a third straight week of gains after posting their worst monthly performance this year in May on fears the prolonged trade war would hit global economic growth.
Trump said on Friday he aborted a military strike on Iran in response to Teheran's downing of a U.S. drone, but the possibility of a U.S. retaliation pushed crude prices higher and helped lift the energy sector by 0.82%. [O/R]
The Dow Jones Industrial Average dipped 0.13% to end at 26,719.13 points, while the S&P 500 lost 0.13% to 2,950.46. The Nasdaq Composite dropped 0.24% to 8,031.71.
The tech-heavy Nasdaq was weighed down by a 2.2% fall in PayPal Holdings Inc after the digital payments company said its chief operating officer, Bill Ready, would step down.
For the week, the S&P 500 climbed 2.20%, the Dow added 2.41% and the Nasdaq rose 3.02%.
During Friday's session, CarMax Inc rose as much as 3.2% to a record high after the used-vehicles retailer posted quarterly results above analysts' expectations.
Carnival Corp fell for a second day, down 4.4%, and among the biggest decliners. Several brokerages trimmed their share price targets after the cruise operator cut its 2019 profit forecast.
Reflecting "quadruple witching," as investors unwind interests in futures and options contracts prior to expiration, volume on U.S. exchanges hit 8.6 billion shares, compared with the 7.0 billion-share average for the full session over the last 20 trading days.
Declining issues outnumbered advancing ones on the NYSE by a 1.63-to-1 ratio; on Nasdaq, a 1.63-to-1 ratio favored decliners.
The S&P 500 posted 48 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 64 new highs and 65 new lows.
(Reporting by Noel Randewich in San Francisco; Additional reporting by Amy Caren Daniel and Shreyashi Sanyal in Bengaluru; Editing by Alistair Bell) |
What does extreme weather mean for home insurance?
Lost among the latest barrage of national and international news events is the ongoing nightmare faced by almost 600 households unable to return to their homes in Lincolnshire because of flooding.
Last week the River Steeping burst its banks following heavy rains. More than 580 homes in the Wainfleet area were evacuated, with flooding directly affecting around 130 homes and 1,000 people still unable to return.
It’s the latest case of extreme weather to hit the UK. Extreme meteorological events can be deeply upsetting for the people directly affected and seriously unnerving for everyone else.
But they are increasingly regular and the financial impact will affect all of us in the short-term as well as the long. The trend is already costing insurers.
The Association of British Insurers (ABI) reports that the extreme freeze that hit the UK early in 2018 resulted in insurers paying a record £194million in a three-month period for burst pipes.
Then 2018’s extreme heatwave led to more than 10,000 households needing to claim for damage caused by subsidence, at a cost of more than £64million.
“With the risk of flooding increasing, then the only sustainable option insurers have is to adjust their risk prices accordingly,” warns Samuel Leach, director of Samuel and Co Trading.
“In the long run the knock-on effects from rising premiums could pose a threat that could become a social issue, as affordability is so critical for some people on low and average incomes.
“In general, you can’t prove that a single event is the result of climate change but it is likely to cause more such events of greater severity. If insurers conclude that climate change was a significant contributory factor to the event, companies will start thinking carefully about the pricing and availability of similar insurance policies.”
Summer rain
Strangely, the warmer months can cause flooding risks. Jessica Turner, catastrophe advisory senior vice president at Guy Carpenter, explains: “The warmer months tend to be more prone to flash flooding as the land surface heats up during the day, causing powerful updrafts and sometimes convective storms.
“These storms can lead to large bursts of rain falling within short periods of time and in localised areas.
“Climate change and an increase in urban development can contribute to the threat of surface water flooding.
“Older drainage systems, some of which were originally installed in the 1800s, are often not updated and can be overwhelmed by the increase in rainfall on paved surfaces, which can’t absorb water.”
Increased risk makes it even more essential that householders ensure they have sufficient protection in place.
“It is really important that people check that they are adequately covered for major repair and rebuilding costs should their property be affected by extreme weather,” Jason Smith, CEO of MoneyExpert, says.
“People need to fully cost up the value of the contents in their property so they can be replaced in the event of them being destroyed, or damaged, beyond use in the event of a major fire or flood.
“If you are unlucky enough to be affected then you should immediately contact your insurer who [will be] geared up to provide the support and help that you will need in those difficult circumstances.”
But Ben Stansfield, sustainability focused partner at law firm Gowling WLG, says more climate change-related damage is on the horizon.
“Climate change will cause more unpredictable storms with greater power, so trees, fences [and] trampolines will all be blowing around hitting buildings,” he says.
“It’ll also impact utilities serving homes and businesses – power, sewers – which has indirect effects when they go down. Storms cutting power lines will also impact EVs [electric vehicles], unless we improve on how we implement energy storage.
“Finally, droughts will cause shrinkage in the ground, and then cracks and subsidence.”
Corporate concerns
Concerns about climate change go far beyond individuals. Financial entities are increasingly vocal about their worries.
MoneyExpert's Smith says: “The financial industry is extremely concerned about the impact of climate change on insurance premiums, making it increasingly difficult to provide affordable protection against natural disasters in the UK, as well as globally.
“So much so that the UK’s leading insurers have come together under the ClimateWise initiative to identify solutions to these critical challenges and are actively seeking to promote ways to avoid and mitigate against the impact of climate change.”
The ABI is a founding member of ClimateWise, a global insurance industry collaboration focused on driving action on climate change risk.
The ABI’s director general, Huw Evans, recently said: “Insurers are on the front-line dealing with the results of rising temperatures and changing investment needs, and so understand better than most the serious implications of a changing climate.
“We need a sustained and ambitious response to protect homes, businesses and communities around the world. The UK also needs to build its resilience to severe weather, ensuring vital flood defences keep pace with climate change and helping people take steps to improve their own protection.”
Perhaps global finance will succeed in applying pressure to governments to act faster to mitigate and reduce climate change. In the meantime, customers should check their insurance policies are adequate to protect them if they too fall victim to extreme weather. |
How much is too much to contribute to a teacher's end-of-year present?
How much should parents fork out on presents for their children's teacher? [Photo: Getty] A mum has turned to the Internet for advice after being asked to contribute £40 towards the end-of-year present for the teacher. As the summer holidays approach parents are no doubt starting to think about the thank you present for their children s teacher. Though some prefer to do their own thing, joint presents are becoming more and more popular. But how much is too much to be expected to pay? One mum has taken to parenting site Netmums to explain her frustration about being asked to pay £40 towards presents for her sons nursery teachers. She believes £40 is far too much - so she offered to contribute £25 to the present pot but has been told by the mum who's organising the collection (via a WhatsApp group) that it wouldn't be fair to accept her £25 contribution, and she will be given her money back! One mum offered to do the collection for the teachers and stated that the amount she is collecting as £40, she explained. She went on to say that she suspected some other mums agreed with her that £40 was a lot considering some families have more than one child and household bills to pay. I decided I'd like to chip in but have to think about other expenses, so I contacted the mum telling her I sent her £25, she continued. She came back saying it was £40 she was collecting and asked if that's ok. I explained we have to budget and that's how much I can spend. I was shocked to receive a text couple of hours later saying it is not fair towards the other mums to pay so much less then them and I am putting her in an awkward position and she will give me my £25 back! The mum says the encounter has left her feeling humiliated. Shes also upset as her husband now also thinks it reflects on him in a bad way that they cannot afford to pay the whole amount and that some other parents might now be aware of this. Following further discussions about the topic, in which the mum organising the collection continued to stress she didnt think it was fair, the poster has turned to the Internet for advice about the thorny situation. Story continues Most mums agree £40 is too much, and parents should be asked to contribute what they feel they can afford, rather than be asked to give a set amount or they're out. You should just buy your own gift, one mum wrote. Not because I think you're in the wrong, but because I think it's not worth your hassle. £40 per person for a teacher seems astronomical but with any collection of this kind, I have never heard of anyone asking for set amounts and particularly that high. I would always be saying "give what you can give" - I mean even a much smaller amount of £5 is still contributing to the gift...it really comes across as a vanity project to do it this way. I applaud all teachers - they are fantastic people - but I honestly think that a gift from the heart matters more than an item of huge expense. I think £40 per parent is a hugely unreasonable amount, another parent agreed. I have two children at school and that would be £80! How much should parents fork out on presents for their children's teacher? [Photo: Getty] I think thats a ridiculous amount of money, I wouldnt want to pay that either, a third agreed. I dont think teachers expect presents but when they get them Id imagine they expect it to have cost £5-£10! Others pointed out that even if they could afford £40 for a teacher present that doesnt mean theyre willing to spend it, simply because others are. £40 is crazy, another user wrote. What happened to a box of chocolates? Others advised the mum on other ways she could deal with the situation. You are completely in the right to not participate but if I were you I would have just said thanks, but I will do my own thing rather than sending the money, one user wrote. Definitely steer clear of her in the future! And one user commented to say that teacher presents have been banned in her childrens school, no doubt for this kind of reason. The area I live banned end of year gifts a couple of years ago, she wrote. I'm sure there are a lot of relieved parents. It isnt the first time the topic of teacher presents has made headlines. Last year a school in Oxfordshire told parents to limit their spending on festive gifts for teachers to just £50. According to The Times the move was instigated after teachers were left in an awkward position receiving increasingly expensive presents such as Mulberry handbags and dinners at Michelin-starred restaurants. The subject of teachers gifts is something has been debated by parents for many years, but a recent survey by Mumsnet revealed that parents are increasingly feeling the purchasing pressure. The poll by Mumsnet found that one in ten parents spend £25 on Christmas gifts for their childs school teacher with 45 per cent believing there is a culture of one-upmanship and eight per cent buying presents purely because they dont want to look mean. However nearly a fifth of those surveyed said they spend nothing on Christmas presents because they dont think its necessary. And a further four per cent said they thought a teachers salary was reward enough. |
UPDATE 2-Divided EU leaders set sorting out euro zone budget financing as priority
* Limited progress on euro zone budget, steps ahead on ESM reform
* Plan for bank deposit guarantee scheme stalls
* Italy threatens to block process if no progress on EDIS (adds Conte)
By Jan Strupczewski
BRUSSELS, June 21 (Reuters) - European Union leaders told their finance ministers on Friday to sort out the sources of financing for a future euro zone budget as a matter of priority, but remained vague on the idea of a European bank deposit insurance scheme.
The chairman of euro zone finance ministers, Mario Centeno, briefed the leaders on what ministers have achieved since they were asked last December to work on creating a euro zone budget along with other reforms, including the deposit guarantee scheme known as EDIS.
The ministers were to have worked out how a budget for the 19 countries sharing the euro currency could be financed, what it should be used for and how it would be managed, with the final size to be determined by the leaders.
But progress has been limited because of widely differing views. France and several southern European countries want a large budget funded by dedicated taxes and able to stabilise economies hit by an unexpected shock.
The Netherlands and its northern European allies want a small budget funded only from the existing, wider EU budget and used for investment or to support structural reforms.
"We ask the Eurogroup and the Commission to further work on all pending issues," the leaders said in a statement without setting any deadline for the conclusion of the talks.
"We ask the Eurogroup to report back swiftly on the appropriate solutions for financing," they said about the euro zone budget, called the Budgetary Instrument for Competitiveness and Convergence (BICC).
"These elements should be agreed as a matter of priority so as to be able to set the size of the BICC in the context of the next Multi-annual Financial Framework," they said, referring to the wider EU's next long-term budget.
The EU has to agree on a new long-term budget before the end of next year, before the current one ends in December 2020.
EDIS, ESM
Leaders took note of progress made by finance ministers last week on the reform of the bloc's rescue fund, the European Stability Mechanism, which would increase its monitoring powers over countries with economic imbalances and also facilitate the restructuring of governments' debts in crises.
Leaders avoided instead a direct reference to the deposit scheme, which has been stalled for years because of strong opposition from Germany.
Italian Prime Minister Giuseppe Conte said no progress could happen on the ESM reform and the euro zone budget if the deposit guarantee scheme was not agreed too, in a potential blow to the whole reform process.
The leaders' statement said only that the leaders "look forward to the continuation of the technical work on the further strengthening of the Banking Union" -- EU code for the scheme -- in a sign there was no deadline for the discussions.
Germany and some northern European countries are reluctant to commit to a joint scheme to insure euro zone deposits before banks in southern countries such as Italy, Greece or Portugal have substantially reduced their bad loans -- a legacy of the sovereign debt crisis of 2010-2015.
An insurance scheme would make depositors across the euro zone feel safe and prevent bank runs in the event of a crisis. It would complete the banking union, which already has a single bank supervisor and a resolution authority.
German resistance has so far blocked any progress even on a timetable for introduction of a deposit guarantee scheme. A high-level working group of senior euro zone officials is to continue discussing the matter and report back to finance ministers in December. (Reporting by Jan Strupczewski; additional reporting by Francesco Guarascio; Editing by Catherine Evans) |
The Daily Biotech Pulse: ContraVir's Volatile Ride Continues, Late-Stage Disappointment For Exelixis, Regeneron-Sanofi Breathe Easy
Here's a roundup of top developments in the biotech space over the last 24 hours.
Scaling The Peaks
(Biotech stocks hitting 52-week highs on June 20)
• Abbott Laboratories(NYSE:ABT)
• ANI Pharmaceuticals Inc Common Stock(NASDAQ:ANIP)
• argenx SE – ADR(NASDAQ:ARGX)
• ArQule, Inc.(NASDAQ:ARQL)
• Celgene Corporation(NASDAQ:CELG)
• Coherus Biosciences Inc(NASDAQ:CHRS)
• DiaMedica Therapeutics Inc(NASDAQ:DMAC)(reportedpositive interim results from a Phase 1b study of its DM199, which is being evaluated for moderate-to-severe chronic kidney disease)
• Edesa Biotech Inc(NASDAQ:EDSA)(FDA gave the go ahead to start a Phase 2b trial for EB01, its lead candidate being evaluated for chronic allergic contact dermatitis)
• GALAPAGOS NV/S ADR(NASDAQ:GLPG)
• Hologic, Inc.(NASDAQ:HOLX)
• Repligen Corporation(NASDAQ:RGEN)
• ResMed Inc.(NYSE:RMD)
• Zynex Inc.(NASDAQ:ZYXI)
Down In The Dumps
(Biotech stocks hitting 52-week lows on June 20)
• Abeona Therapeutics Inc(NASDAQ:ABEO)
• Adial Pharmaceuticals Inc(NASDAQ:ADIL)
• AMAG Pharmaceuticals, Inc.(NASDAQ:AMAG)
• ContraVir Pharmaceuticals Inc(NASDAQ:CTRV)
• Jaguar Health Inc(NASDAQ:JAGX)
• Minerva Neurosciences Inc(NASDAQ:NERV)
• Neos Therapeutics Inc(NASDAQ:NEOS)
• TrovaGene Inc(NASDAQ:TROV)
Stocks In Focus ContraVir's NASH Candidate Gets Positive FDA Feedback Following Pre-IND Meeting
ContraVir said the FDA has given it positive feedback in response to its pre-IND meeting with regard to its candidate CRV431 in non-alcoholic steatohepatitis, or NASH. The positive feedback was for the pre-clinical data, which supports the study design for the NASH IND opening study.
The stock rallied 33.57% to $5.73 in after-hours trading.
Hologic Agrees To Buy French Ultrasound Products Company For Upto $85M
Hologic, Inc.(NASDAQ:HOLX) agreed to acquire SuperSonic Imagine, a French innovator in cart-based ultrasound products for 1.50 euro per share, corresponding to $39 million for all outstanding shares. With SuperSonic's outstanding debt assumed by Hologic, the maximum enterprise value would be $85 million.
Mustang Bio Rallies On Positive Analyst Action
Mustang Bio Inc(NASDAQ:MBIO) shares advanced strongly after Cantor Fitzgerald initiated coverage of the biotech with an Overweight rating and $7 price target suggesting, over 100% upside, according toSeeking Alpha.
The stock gained 6.82% to $3.60 in after-hours trading.
Exelixis' Skin Cancer Drug In Combo With Roche's Tecentriq Flunks Late-stage Study
Exelixis, Inc.(NASDAQ:EXEL) said in aSEC filingits collaboration partnerRoche Holdings AG Basel ADR(OTC:RHHBY)'s Genentech unit has informed a Phase 3 trial dubbed IMspire170 that evaluated the combination of cobimetinib, a MEK inhibitor discovered by Exelixis, and Tecentriq, an anti-PDL1 antibody, did not meet the primary endpoint of progression-free survival compared toMerck & Co., Inc.(NYSE:MRK)'s Keytruda, a current standard of care in patients with previously untreated BRAF V600 wild-type advanced melanoma.
Exelixis' stock fell 7.24% to $19.61 in after-hours trading.
Regeneron-Sanofi's Asthma Treatment Biologics Aces Proof-Of-concept Phase 2 Study
Regeneron Pharmaceuticals Inc(NASDAQ:REGN) andSanofi SA(NASDAQ:SNY) said a Phase 2 proof-of-concept trial evaluating their IL-33 antibody REGN3500 met the primary end point of an improvement in loss of asthma control compared to placebo. The companies also said the study met the key secondary endpoint of the REGN3500 monotherapy significantly improving the lung function compared to placebo.
Selecta Appoints Biopharma Industry Veteran to Board
Selecta Biosciences Inc(NASDAQ:SELB) announced the appointment of Scott Myers, a biopharma industry veteran, to its board. The company said it hopes to draw on Myers' product development and commercial experience, as it advances its lead program – SEL-212 – for the treatment of chronic refractory gout, and explore its ImmTOR technology in gene therapy.
The stock gained 10.05% to $2.30 in after-hours trading.
See more from Benzinga
• The Daily Biotech Pulse: DiaMedica Reports Positive Data For Chronic Kidney Disease Drug, Eloxx Offering, IPO Deluge
• The Daily Biotech Pulse: Positive Readouts From Adamas And Ironwood, Sesen Bio To Offer Shares, Stoke Therapeutics Debut
• The Daily Biotech Pulse: PhaseBio Pumped Up, Eiger Exults On Breakthrough Therapy Designation, Biohaven Slips On Stock Sale
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Should You Buy Crombie Real Estate Investment Trust (TSE:CRR.UN) For Its Dividend?
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Is Crombie Real Estate Investment Trust (TSE:CRR.UN) a good dividend stock? How would you know? Dividend paying companies with growing earnings can be highly rewarding in the long term. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.
In this case, Crombie Real Estate Investment Trust likely looks attractive to investors, given its 5.7% dividend yield and a payment history of over ten years. It would not be a surprise to discover that many investors buy it for the dividends. There are a few simple ways to reduce the risks of buying Crombie Real Estate Investment Trust for its dividend, and we'll go through these below.
Click the interactive chart for our full dividend analysis
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 104% of Crombie Real Estate Investment Trust's profits were paid out as dividends in the last 12 months. A payout ratio above 100% is definitely an item of concern, unless there are some other circumstances that would justify it.
As Crombie Real Estate Investment Trust's dividend was not well covered by earnings, we need to check its balance sheet for signs of financial distress. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. With net debt of more than 5x EBITDA, Crombie Real Estate Investment Trust could be described as a highly leveraged company. While some companies can handle this level of leverage, we'd be concerned about the dividend sustainability if there was any risk of an earnings downturn.
We calculated its interest cover by measuring its earnings before interest and tax (EBIT), and dividing this by the company's net interest expense. With EBIT of 1.66 times its interest expense, Crombie Real Estate Investment Trust's interest cover is starting to look a bit thin. Low interest cover and high debt can create problems right when the investor least needs them. We're generally reluctant to rely on the dividend of companies with these traits.
Consider gettingour latest analysis on Crombie Real Estate Investment Trust'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. Crombie Real Estate Investment Trust has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. During this period the dividend has been stable, which could imply the business could have relatively consistent earnings power. During the past ten-year period, the first annual payment was CA$0.89 in 2009, compared to CA$0.89 last year. Dividend payments have grown at less than 1% a year over this period.
While the consistency in the dividend payments is impressive, we think the relatively slow rate of growth is unappealing.
While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Crombie Real Estate Investment Trust has grown its earnings per share at 18% per annum over the past five years. While EPS are growing rapidly, Crombie Real Estate Investment Trust paid out a very high 104% of its income as dividends. If earnings continue to grow, this dividend may be sustainable, but we think a payout this high definitely bears watching.
When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. We're a bit uncomfortable with its high payout ratio, although at least the dividend was covered by free cash flow. Next, growing earnings per share and steady dividend payments is a great combination. Overall we think Crombie Real Estate Investment Trust is an interesting dividend stock, although it could be better.
You can also discover whether shareholders are aligned with insider interests bychecking our visualisation of insider shareholdings and trades in Crombie Real Estate Investment Trust 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. |
Is Crombie Real Estate Investment Trust (TSE:CRR.UN) An Attractive Dividend Stock?
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Dividend paying stocks like Crombie Real Estate Investment Trust (TSE:CRR.UN) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments.
In this case, Crombie Real Estate Investment Trust likely looks attractive to investors, given its 5.7% dividend yield and a payment history of over ten years. It would not be a surprise to discover that many investors buy it for the dividends. There are a few simple ways to reduce the risks of buying Crombie Real Estate Investment Trust for its dividend, and we'll go through these below.
Explore this interactive chart for our latest analysis on Crombie Real Estate Investment Trust!
Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. Looking at the data, we can see that 104% of Crombie Real Estate Investment Trust's profits were paid out as dividends in the last 12 months. Unless there are extenuating circumstances, from the perspective of an investor who hopes to own the company for many years, a payout ratio of above 100% is definitely a concern.
As Crombie Real Estate Investment Trust's dividend was not well covered by earnings, we need to check its balance sheet for signs of financial distress. 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 measures a company's total debt load relative to its earnings (lower = less debt), while net interest cover measures the company's ability to pay the interest on its debt (higher = greater ability to pay interest costs). With net debt of more than 5x EBITDA, Crombie Real Estate Investment Trust could be described as a highly leveraged company. While some companies can handle this level of leverage, we'd be concerned about the dividend sustainability if there was any risk of an earnings downturn.
We calculated its interest cover by measuring its earnings before interest and tax (EBIT), and dividing this by the company's net interest expense. With EBIT of 1.66 times its interest expense, Crombie Real Estate Investment Trust's interest cover is starting to look a bit thin. Low interest cover and high debt can create problems right when the investor least needs them. We're generally reluctant to rely on the dividend of companies with these traits.
We update our data on Crombie Real Estate Investment Trust 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. For the purpose of this article, we only scrutinise the last decade of Crombie Real Estate Investment Trust's dividend payments. During this period the dividend has been stable, which could imply the business could have relatively consistent earnings power. During the past ten-year period, the first annual payment was CA$0.89 in 2009, compared to CA$0.89 last year. Dividend payments have grown at less than 1% a year over this period.
While the consistency in the dividend payments is impressive, we think the relatively slow rate of growth is unappealing.
While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. It's good to see Crombie Real Estate Investment Trust has been growing its earnings per share at 18% a year over the past 5 years. Although earnings per share are up nicely Crombie Real Estate Investment Trust is paying out 104% of its earnings as dividends, which we feel is borderline unsustainable without extenuating circumstances.
Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. We're a bit uncomfortable with its high payout ratio, although at least the dividend was covered by free cash flow. That said, we were glad to see it growing earnings and paying a fairly consistent dividend. Crombie Real Estate Investment Trust 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.
Now, if you want to look closer, it would be worth checking out ourfreeresearch on Crombie Real Estate Investment Trustmanagement tenure, salary, and performance.
Looking for more high-yielding dividend ideas? Try ourcurated list of dividend stocks with a yield above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
5 Things to Watch With Aurora Cannabis for the Remainder of 2019
Within the fast-growing cannabis space, there isn't a pot stock that draws more attention from investors thanAurora Cannabis(NYSE: ACB). A quick look at the company's production profile and international reach lends clues as to why.
In terms of annual output, Auroraprojects to lead all cannabis growers. Currently producing at an annual run rate of 150,000 kilos per year, the company anticipates increasing its annual run rate to at least 625,000 kilos by the midpoint of next year. This, of course, assumes that three of its largest grow projects -- Aurora Sun, Aurora Nordic 2, and Exeter -- all receive cultivation licenses.
Image source: Getty Images.
This is also a company with massive geographic breadth. Whether it's production, distribution, research, or exports, Aurora Cannabis has apresence in 24 countries worldwide, including Canada. These external sales channels should come in particularly handy if and when Canada's dried flower becomes oversupplied in the years to come and domestic producers need alternative means to offload their products.
But the most popular pot stock in the world has a number of lingering question marks for the remainder of 2019. Here's what current shareholders and prospective investors should be eyeing in the second half of the year.
One of the bigger questions on the minds of Wall Street and investors is when Aurora Cannabis will detail its entrance into the U.S. market. We've already seen close to half of Aurora's major competitorsenter the U.S. hemp industry, thereby laying the processing and distribution infrastructure that would be needed if and when the U.S. federal government changes its tune on marijuana at the federal level. But as of now, Aurora hasn't outlined its plans for the U.S. market.
Back in mid-January, Aurora's chief corporate officer, Cam Battley, toldBusiness Insiderin an interview that "We'll be unveiling our hemp-derived CBD [cannabidiol] strategy to enter the U.S. market over the next few months." However, that time frame has come and gone with little mention of what Aurora's next steps are. As a company that prides itself on geographic expansion, it's almost a certainty that we'll hear about Aurora's U.S. CBD-market plans in the second half of 2019.
Image source: Getty Images.
Another 800-pound gorilla in the room is Aurora'smid-March hiringof billionaire activist investor Nelson Peltz as a strategic advisor. Peltz, the founder of Trian Fund Management, has particular expertise in the food and beverage industries, which makes him a logical choice to broker discussions between Aurora and brand-name food or beverage companies. To boot, Aurora's management has previously suggested its interest in entering the cannabis-infused beverage space.
But here we are three months after the hiring was announced, and Aurora Cannabis has yet to announce any major partnerships beyond that ofvape giant PAX Labs. As Canada's leading producer, Aurora has a pedigree that should attract brand-name food and beverage companies. Perhaps, though, Aurora's asking price or share-based dilution has chased them off to this point. Either way, it would be a major surprise if Aurora ended 2019 without announcing a significant partnership, joint venture, or equity investment from a brand-name company.
Since February, Aurora Cannabis' management team has stood firm on its belief that the company would begenerating positive recurring EBITDA(earnings before interest, taxes, depreciation, and amortization) beginning in the fiscal fourth quarter (April 1, 2019, to June 30, 2019). Pushing into positive recurring EBITDA is viewed by many investors as validation of the company's long-term potential.
The bigger question is, will this push into positive EBITDA actually lead to smaller net losses? Remember, there are a lot of expenses, one-time benefits, and costs that pot stocks contend with. In Aurora's most recent quarter, it wound uplosing close to 94 million Canadian dollarson an operating basis, even with a bunch of one-time negatives removed from the equation. Put plainly, Wall Street is going to want to see a significant reduction in Aurora's operating losses for the remainder of 2019, but it remains to be seen if that proves the case.
Image source: Getty Images.
In early April, Aurora Cannabis filed a shelf offering that allows it to offer up to $750 million (that's U.S. dollars) in stock and convertible notes over the next 25 months should it choose to do so. Executive chairman Michael Singer suggested that the shelf offering was needed to cover the company's "global expansion plans and partnering strategy," according toYahoo! Finance Canada. However, Singer did note that there were no immediate plans to tap this shelf offering.
What investors and prospective buyers will want to monitor is whether Aurora decides to lean on this shelf offering in the months that lie ahead. Aurora has made an almost insane 15 acquisitions since August 2016, and nearly every one of these deals was financed entirely by issuing its common stock, thereby diluting existing shareholders. It's really not a question of whether Aurora will make another acquisition at this point -- inorganic growth is a big component to the company's long-term game plan. It's whether we seeadditional dilution via a shelf offeringover the next six months and change.
Last but not least, pay close attention to Aurora's quarterly income statements and just how much revenue it's deriving from recreational marijuana relative to medical cannabis. In the third quarter, Aurora reported anearly 50-50 splitin cannabis revenue between the recreational and medical markets, down from a55% medical to 45% adult-use splitin the sequential second quarter.
The company has been very clear that it would prefer to focus on higher-margin medical pot, which is in stark contrast to many of its peers. Then again, Aurora may not see a big boost from medical sales until its international revenue soars -- and that may not occur until Canada resolves its supply issues. For the time being, this recreational-to-medical weed sales ratio will go a long way to determining Aurora's margins and is therefore worth closely monitoring for the remainder of 2019.
More From The Motley Fool
• Beginner's Guide to Investing in Marijuana Stocks
• Marijuana Stocks Are Overhyped: 10 Better Buys for You Now
• Your 2019 Guide to Investing in Marijuana Stocks
Sean Williamshas no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy. |
The Latest: EU states against renegotiating Brexit deal
BRUSSELS (AP) — The Latest on Britain's scheduled departure from the European Union (all times local): 1:20 p.m. European Union Commission President Jean-Claude Juncker says that the 27 EU member are unanimous in their steadfastness that the Brexit withdrawal agreement will not be reopened whoever succeeds Theresa May as British prime minister. The 27 EU leaders, without May, discussed the stalled Brexit process and rebuffed the idea that a new prime minister could start the Brexit negotiations with a clean slate. Junker said: "We repeated unanimously that there will be no renegotiating of the withdrawal agreement." EU Council President Donald Tusk left the door open that a political agreement annexed to the legal withdrawal deal could be subject for talks. Britain is set to leave the bloc on Oct. 31. Some leaders say a new Brexit extension should only be granted to hold general elections or a new Brexit referendum. ___ 10:40 a.m. The governor of the Bank of England has dismissed claims by Conservative leadership campaign front-runner Boris Johnson that the U.K. could retain its trade arrangements in the event of a no-deal Brexit while another deal with the bloc is negotiated. Johnson has said the U.K. could get a "standstill" under a provision of the General Agreement on Tariffs and Trade in the event of a no-deal Brexit. But Carney told the BBC on Friday that GATT "applies if you have an agreement, not if you have decided not to have an agreement or have been unable to come to an agreement." Carney says the U.K. would automatically be hit by tariffs. He says that's because the Europeans would have to apply the same rules to Britain as every other country outside the tariff-less EU. ___ 10:30 a.m. European Union leaders are underlining that their divorce agreement with Britain cannot be renegotiated regardless of who becomes the next prime minister there. At a summit of EU leaders Friday, Luxembourg Prime Minister Xavier Bettel said the current Brexit agreement "is the best possible deal." Story continues With Boris Johnson favorite to become next prime minister, Bettel says it makes no difference who takes office. He says "it's not possible (that) because you change the leader in the U.K. that we need to postpone decisions." EU leaders are due later Friday to briefly discuss political developments in Britain, which is set to leave the bloc on Oct. 31. Some leaders say a new Brexit extension should only be granted to hold fresh elections or a new Brexit referendum. |
Is Cabot Oil & Gas Corporation (NYSE:COG) A Financially Sound Company?
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Mid-caps stocks, like Cabot Oil & Gas Corporation (NYSE:COG) with a market capitalization of US$10.0b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. However, generally ignored mid-caps have historically delivered better risk-adjusted returns than the two other categories of stocks. This article will examine COG’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysisinto COG here.
Check out our latest analysis for Cabot Oil & Gas
COG's debt levels have fallen from US$1.5b to US$1.3b over the last 12 months , which includes long-term debt. With this debt repayment, COG currently has US$315m remaining in cash and short-term investments to keep the business going. On top of this, COG has generated US$1.4b in operating cash flow over the same time period, leading to an operating cash to total debt ratio of 112%, meaning that COG’s current level of operating cash is high enough to cover debt.
Looking at COG’s US$240m in current liabilities, it seems that the business has been able to meet these commitments with a current assets level of US$680m, leading to a 2.83x current account ratio. The current ratio is the number you get when you divide current assets by current liabilities. Usually, for Oil and Gas companies, this is a suitable ratio since there's a sufficient cash cushion without leaving too much capital idle or in low-earning investments.
COG is a relatively highly levered company with a debt-to-equity of 53%. This is not unusual for mid-caps as debt tends to be a cheaper and faster source of funding for some businesses. We can test if COG’s debt levels are sustainable by measuring interest payments against earnings of a company. Ideally, earnings before interest and tax (EBIT) should cover net interest by at least three times. For COG, the ratio of 14.06x suggests that interest is comfortably covered, which means that debtors may be willing to loan the company more money, giving COG ample headroom to grow its debt facilities.
COG’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow. This may mean this is an optimal capital structure for the business, given that it is also meeting its short-term commitment. I admit this is a fairly basic analysis for COG's financial health. Other important fundamentals need to be considered alongside. You should continue to research Cabot Oil & Gas to get a better picture of the mid-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for COG’s future growth? Take a look at ourfree research report of analyst consensusfor COG’s outlook.
2. Valuation: What is COG 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 COG is currently mispriced by the market.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Easy Come, Easy Go: How Nickel Creek Platinum (TSE:NCP) Shareholders Got Unlucky And Saw 94% Of Their Cash Evaporate
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We're definitely into long term investing, but some companies are simply bad investments over any time frame. We don't wish catastrophic capital loss on anyone. Anyone who heldNickel Creek Platinum Corp.(TSE:NCP) for five years would be nursing their metaphorical wounds since the share price dropped 94% in that time. And it's not just long term holders hurting, because the stock is down 83% in the last year. Furthermore, it's down 38% in about a quarter. That's not much fun for holders.
We really feel for shareholders in this scenario. It's a good reminder of the importance of diversification, and it's worth keeping in mind there's more to life than money, anyway.
See our latest analysis for Nickel Creek Platinum
Nickel Creek Platinum didn't have any revenue in the last year, so it's fair to say it doesn't yet have a proven product (or at least not one people are paying for). You have to wonder why venture capitalists aren't funding it. 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 Nickel Creek Platinum will find or develop a valuable new mine 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 usually a significant chance that they will need more money for business development, putting them at the mercy of capital markets. So the share price itself impacts the value of the shares (as it determines the cost of capital). While some companies like this go on to deliver on their plan, making good money for shareholders, many end in painful losses and eventual de-listing. It certainly is a dangerous place to invest, as Nickel Creek Platinum investors might realise.
When it reported in March 2019 Nickel Creek Platinum had minimal cash in excess of all liabilities consider its expenditure: just CA$488k to be specific. So if it hasn't remedied the situation already, it will almost certainly have to raise more capital soon. With that in mind, you can understand why the share price dropped 42% per year, over 5 years. The image below shows how Nickel Creek Platinum's balance sheet has changed over time; if you want to see the precise values, simply click on the image.
It can be extremely risky to invest in a company that doesn't even have revenue. There's no way to know its value easily. Given that situation, would you be concerned if it turned out insiders were relentlessly selling stock? It would bother me, that's for sure. It costs nothing but a moment of your time tosee if we are picking up on any insider selling.
While the broader market gained around 1.6% in the last year, Nickel Creek Platinum shareholders lost 83%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 42% over the last half decade. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality businesses. Before spending more time on Nickel Creek Platinumit might be wise to click here to see if insiders have been buying or selling shares.
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 CA exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Cabot Oil & Gas Corporation (NYSE:COG): Time For A Financial Health Check
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Mid-caps stocks, like Cabot Oil & Gas Corporation (NYSE:COG) with a market capitalization of US$10.0b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. Despite this, commonly overlooked mid-caps have historically produced better risk-adjusted returns than their small and large-cap counterparts. COG’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysisinto COG here.
Check out our latest analysis for Cabot Oil & Gas
COG has shrunk its total debt levels in the last twelve months, from US$1.5b to US$1.3b , which includes long-term debt. With this debt repayment, COG's cash and short-term investments stands at US$315m to keep the business going. Additionally, COG has generated cash from operations of US$1.4b during the same period of time, leading to an operating cash to total debt ratio of 112%, meaning that COG’s operating cash is sufficient to cover its debt.
At the current liabilities level of US$240m, it seems that the business has been able to meet these obligations given the level of current assets of US$680m, with a current ratio of 2.83x. The current ratio is the number you get when you divide current assets by current liabilities. Generally, for Oil and Gas companies, this is a reasonable ratio as there's enough of a cash buffer without holding too much capital in low return investments.
With debt reaching 53% of equity, COG may be thought of as relatively highly levered. This is not uncommon for a mid-cap company given that debt tends to be lower-cost and at times, more accessible. No matter how high the company’s debt, if it can easily cover the interest payments, it’s considered to be efficient with its use of excess leverage. A company generating earnings after interest and tax at least three times its net interest payments is considered financially sound. In COG's case, the ratio of 14.06x suggests that interest is comfortably covered, which means that lenders may be less hesitant to lend out more funding as COG’s high interest coverage is seen as responsible and safe practice.
Although COG’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised. This may mean this is an optimal capital structure for the business, given that it is also meeting its short-term commitment. I admit this is a fairly basic analysis for COG's financial health. Other important fundamentals need to be considered alongside. I suggest you continue to research Cabot Oil & Gas to get a more holistic view of the mid-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for COG’s future growth? Take a look at ourfree research report of analyst consensusfor COG’s outlook.
2. Valuation: What is COG 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 COG is currently mispriced by the market.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
EU says next UK prime minister cannot re-open Brexit withdrawal talks
President of the European Commission Jean-Claude Juncker and the President of the European Council Donald Tusk. Photo: ARIS OIKONOMOU/AFP/Getty Images European leaders have warned the next UK prime minister will not be able to re-open talks over Britain’s withdrawal agreement with the EU. The warning comes soon after Boris Johnson and Jeremy Hunt were confirmed as the final two candidates in the Tory leadership race, with Conservative party members set to vote between the pair. Donald Tusk, president of the European Council, told a press conference at a Brussels summit of EU leaders that European leaders “looked forward” to working together with the new UK prime minister. But he repeated the EU’s long-standing message on Friday: “The withdrawal agreement is not open for renegotiation. "Maybe the process of Brexit will be even more exciting than before because of some personnel decisions in London, but nothing has changed in our position," he told reporters. READ MORE: Bank of England governor Mark Carney slams Johnson’s Brexit plans *NEW* Donald Tusk tells me the UK is ‘wasting time’ on Brexit. Remember when announcing Brexit extension he said ‘please don’t waste this time’. Clearly underwhelmed with state of play. — Ros Atkins (@BBCRosAtkins) June 21, 2019 European Commission president Jean-Claude Juncker also said there was “nothing new” to say on Brexit. “Nothing new, because we repeated unanimously there will be no renegotiation of the withdrawal agreement,” he said. But Tusk suggested there was more room for discussion of the second part of the agreement May’s government reached with Brussels, which contains a political declaration on their desired future relationship rather than the legal terms of the divorce. “We are open for talks when it comes to the declaration on the future UK-EU relationship if the position of the United Kingdom were to evolve. Jeremy Hunt and Boris Johnson. Photo: AP Foto FILE/Matt Dunham, Frank Augstein READ MORE: Most UK exporters not ready for a no-deal Brexit “We want to avoid a disorderly Brexit,” Tusk said, adding that the EU wanted a relationship “as close as possible” with the UK. Story continues Johnson and Hunt have both claimed the EU could re-open withdrawal talks and change their position on the Irish backstop, despite the EU’s clear and united position that they will not do so. Hunt has said he would be better at negotiating than the UK has been so far, while Johnson has suggested withholding the UK’s divorce bill and highlighted possible EU fears of Nigel Farage’s new party. “I think what they will see is that politics has changed in the UK and in Europe, they have now 29 Brexit MEPs in Strasbourg,” said Johnson on the ‘Our Next Prime Minister’ debate on BBC earlier this week. |
Is Pioneer Power Solutions, Inc.'s (NASDAQ:PPSI) 3.2% ROE Worse Than Average?
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Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). By way of learning-by-doing, we'll look at ROE to gain a better understanding of Pioneer Power Solutions, Inc. (NASDAQ:PPSI).
Over the last twelve monthsPioneer Power Solutions has recorded a ROE of 3.2%. Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.032.
See our latest analysis for Pioneer Power Solutions
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Pioneer Power Solutions:
3.2% = US$557k ÷ US$17m (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. The easiest way to calculate shareholders' equity is to subtract the company's total liabilities from the total assets.
ROE measures a company's profitability against the profit it retains, and any outside investments. The 'return' is the amount earned after tax over the last twelve months. That means that the higher the ROE, the more profitable the company is. So, as a general rule,a high ROE is a good thing. Clearly, then, one can use ROE to compare different companies.
One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. If you look at the image below, you can see Pioneer Power Solutions has a lower ROE than the average (13%) in the Electrical industry classification.
Unfortunately, that's sub-optimal. It is better when the ROE is above industry average, but a low one doesn't necessarily mean the business is overpriced. Nonetheless, it might be wise tocheck if insiders have been selling.
Most companies need money -- from somewhere -- to grow their profits. 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. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
Pioneer Power Solutions clearly uses a significant amount of debt to boost returns, as it has a debt to equity ratio of 1.63. The combination of a rather low ROE and significant use of debt is not particularly appealing. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time.
Return on equity is one way we can compare the business quality of different companies. Companies that can achieve high returns on equity without too much debt are generally of good quality. 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. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. Check the past profit growth by Pioneer Power Solutions by looking at thisvisualization of past earnings, revenue and cash flow.
But note:Pioneer Power Solutions may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Should You Be Concerned About Pioneer Power Solutions, Inc.'s (NASDAQ:PPSI) ROE?
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Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). By way of learning-by-doing, we'll look at ROE to gain a better understanding of Pioneer Power Solutions, Inc. (NASDAQ:PPSI).
Our data showsPioneer Power Solutions has a return on equity of 3.2%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 $0.032.
Check out our latest analysis for Pioneer Power Solutions
Theformula for return on equityis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Pioneer Power Solutions:
3.2% = US$557k ÷ US$17m (Based on the trailing twelve months to March 2019.)
Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is all earnings retained by the company, plus any capital paid in by shareholders. Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company.
ROE looks at the amount a company earns relative to the money it has kept within the business. 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, as a general rule,a high ROE is a good thing. Clearly, then, one can use ROE to compare different companies.
One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As is clear from the image below, Pioneer Power Solutions has a lower ROE than the average (13%) in the Electrical 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.
Virtually all companies need money to invest in the business, to grow 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 debt required for growth will boost returns, but will not impact the shareholders' equity. That will make the ROE look better than if no debt was used.
Pioneer Power Solutions clearly uses a significant amount of debt to boost returns, as it has a debt to equity ratio of 1.63. The combination of a rather low ROE and significant use of debt is not particularly appealing. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time.
Return on equity is one way we can compare the business quality of different companies. 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. 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.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Can Best Buy Conquer the Connected Fitness Market?
Best Buy(NYSE: BBY)has made another move into the health and wellness business. The retailer has begun selling a selection of connected fitness devices from top manufacturers including Flywheel Sports, NormaTec, Hyperice, Hydrow, and NordicTrack.
This follows the retailer's August purchase ofGreatCall, a company that sells health monitoring and other services, mostly to senior citizens. That $800 million deal helped the retailer expand its services business beyond electronics, and it broadened its exposure to a large base of potential new customers.
Connected fitness devices fit well within the chain's core business model: They're electronics, and their buyers generally require service and setup help.
Best Buy is expanding into connected fitness devices. Image source: Best Buy.
Best Buy's connected fitness lineup includes stationary bikes, rowing machines, treadmills, and more, costing north of $1,000. Most of the products are between $2,000 and $3,000 -- a price zone where consumers prefer to see and touch what they're buying beforehand. That gives a chain with a large brick-and-mortar presence an advantage over pure-digital retailers.
Best Buy can devote floor space to these products and let consumers get a feel for how they work. The chain debuted the segment on its website, but plans to bring it to 100 stores by the end of this year.
Connected fitness devices also feature access to live and recorded workouts, but to take advantage requires owners to subscribe to the manufacturers' services. No doubt some customers will prefer to have a Best Buy sales associate explain the details of those subscriptions (some devices come with free trial periods), rather than slogging through a written explanation online.
"We know there's a growing intersection between fitness and technology, and no one knows tech like we do," said Best Buy Chief Merchandising Officer Jason in a blog post. "We've promised our customers we'll help enrich their lives, including their health and wellness, by using technology. This is a great example of how we're living up to that commitment."
This product line extension makes so much sense, it's actually surprising Best Buy waited this long to do it. The retailer understands thatconnected healthcarewill be a growing business, and this expands the chain's potential audience beyond senior citizens.
In addition, Best Buy's management seems to understand how to leverage its assets. The retailer has a customer support group, a mobile tech and installation service (Geek Squad), and brick-and-mortar locations. These new products will provide fresh business for all of those groups while capitalizing on its relationship with its customers, and giving them added reasons to visit its stores.
"Best Buy has the physical space, the customer traffic, and the expertise to make a success of connected fitness," GlobalData Managing Director Neil Saunders commented onRetailWire. "It also has access to a slightly older demographic that may not venture into traditional sports or fitness retailers."
For most people, spending $3,000 on a treadmill or spin bike is not a causal decision. Best Buy can help people feel more comfortable about making that call, and also help get the most out of their fitness gear. And in the longer term, the retailer can likely leverage some of those sales into relationships that may eventually expand to include other health or wellness services.
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Daniel B. Klinehas no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy. |
If You Had Bought Canada House Wellness Group (CNSX:CHV) Stock A Year Ago, You'd Be Sitting On A 44% Loss, Today
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The simplest way to benefit from a rising market is to buy an index fund. When you buy individual stocks, you can make higher profits, but you also face the risk of under-performance. That downside risk was realized byCanada House Wellness Group Inc.(CNSX:CHV) shareholders over the last year, as the share price declined 44%. That's disappointing when you consider the market returned 1.6%. We wouldn't rush to judgement on Canada House Wellness Group because we don't have a long term history to look at. Shareholders have had an even rougher run lately, with the share price down 17% in the last 90 days.
View our latest analysis for Canada House Wellness Group
Because Canada House Wellness Group is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last twelve months, Canada House Wellness Group increased its revenue by 24%. We think that is pretty nice growth. Meanwhile, the share price is down 44% over twelve months, which is disappointing given the progress made. You might even wonder if the share price was previously over-hyped. However, that's in the past now, and it's the future that matters most.
Depicted in the graphic below, you'll see revenue and earnings over time. If you want more detail, you can click on the chart itself.
We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. Dive deeper into the earnings by checking this interactive graph of Canada House Wellness Group'searnings, revenue and cash flow.
Given that the market gained 1.6% in the last year, Canada House Wellness Group shareholders might be miffed that they lost 44%. 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. With the stock down 17% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. If you want to research this stock further, the data on insider buying is an obvious place to start. You canclick here to see who has been buying shares - and the price they paid.
If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
UPDATE 2-UK regulator tells Facebook, eBay to tackle sale of fake reviews
* CMA finds over 100 eBay listings offering fake reviews
* Zero tolerance for fake or misleading reviews - eBay
* "We know there is more to do," Facebook says (Adds Facebook's response)
By Muvija M and Tanishaa Nadkar
June 21 (Reuters) - Britain's competition watchdog on Friday told Facebook and eBay to go through their websites and crack down on the sale of fake and misleading online reviews.
The Competition and Markets Authority (CMA) said https://www.gov.uk/government/news/cma-expects-facebook-and-ebay-to-tackle-sale-of-fake-reviews it had found "troubling evidence" of a growing marketplace for misleading reviews on the two sites.
The CMA said it had found more than 100 eBay listings offering fake reviews for sale between November and June, and identified 26 Facebook groups with people offering to write fake reviews, or businesses recruiting people to write them on popular shopping and review sites.
A Facebook spokeswoman told Reuters the company had removed 24 of the groups and pages flagged by CMA, a number of them before the regulator's report.
"We know there is more to do which is why we've tripled the size of our safety and security team to 30,000 and continue to invest in technology to help proactively prevent abuse of our platform," the spokeswoman said.
EBay said it was working closely with the regulator.
"We have zero tolerance for fake or misleading reviews. Listings such as these are strictly against our policy on illegal activity and we will act where our rules are broken," an eBay spokesperson told Reuters.
Earlier this month, Facebook announced plans to create 500 new tech jobs in London by the end of the year, with many working on systems to detect and remove malicious content, fake accounts and harmful behaviour.
The social network has been under scrutiny from regulators around the world over its data sharing practices as well as fake news and hate speech on its networks.
Facebook said in March it had removed 137 fake pages, groups and Instagram accounts in the United Kingdom for engaging in hate speech and making divisive comments. (Reporting by Muvija M and Tanishaa Nadkar in Bengaluru; Editing by Saumyadeb Chakrabarty and Mark Potter) |
‘Big Four’ Firm PwC Unveils Tool to Audit Clients’ Cryptocurrency Transactions
ByCCN Markets: Big Four accounting firm PricewaterhouseCoopers (PwC) is expanding into the cryptocurrency audit business with the launch of a new solution. The firm is expanding its “Halo” suite of auditing tools to provide audit and assurance services to those clients that deal in crypto.
According to PwC’spress release:
“PwC can currently use this tool to provide assurance services to clients transacting in Bitcoin, Bitcoin Cash, Bitcoin Gold, Bitcoin Diamond, LiteCoin, Ethereum, ERC20 – OAX token, and Ripple (XRP).”
PwC’s crypto solution is proof that we are moving toward mainstream adoption of digital currencies. In fact, don’t be surprised to see a spike in cryptocurrency transactions as PwC’s solution will give its clients the confidence to transact using the likes of bitcoin and other digital assets.
Read the full story on CCN.com. |
Ripple CEO: Bitcoin and XRP Aren’t Competitors — I’m Long BTC
Bitcoin ( BTC ), and XRP , the third biggest coin by market cap, are not competitors, Ripple CEO Brad Garlinghouse claimed in a Fortune interview on June 20. In the interview, Garlinghouse outlined the key difference of two major cryptocurrencies , arguing that bitcoin is a store of value or “digital gold,” while XRP is a “bridge currency” that enables an efficient solution for fiat-to-fiat transfers. As such, Garlinghouse cited the difference between bitcoin and XRP in terms of transactions costs, claiming that Ripple can do a transaction for a tiny fraction of a cent while a bitcoin transactions costs roughly $2.30 on average. However, such a difference “does not mean that bitcoin is gonna fail or something,” Ripple CEO noted, stating that he “[does] not view them as competitive. Garlinghouse expressed confidence that there will not be one single cryptocurrency to “rule them all,” implying that each cryptocurrency should prove a certain use case. Garlinghouse stated: "I own bitcoin, I'm long bitcoin. I think Bitcoin is a store of value and people hold it." In the interview, CEO of Ripple also expressed his stance towards the current environment on crypto markets, pointing out that there is “a lot of bullshit in blockchain and crypto market,” and it is often hard for the industry to separate the signal from the “noise.” In this regard, Garlinghouse spoke of the media overhype around Facebook’s recently officially unveiled cryptocurrency libra, which is expected for launch in the first half of 2020. Specifically, the Ripple exec cited a title of a recent article on CNBC “Facebook Launches Cryptocurrency,” arguing that Facebook has actually not launched any cryptocurrency so far, but just announced their intent to do so in a year from now. Previously, Garlinghouse considered that a cryptocurrency project by American banking giant JPMorgan Chase “misses the point.” Story continues Recently, Ripple partnered with major money transaction service MoneyGram to develop cross-border payments, as well as foreign exchange settlements with digital currencies. As a part of the collaboration, MoneyGram is enabled to draw up to $50 million from Ripple in exchange for equity. Related Articles: Australian Reserve Bank Official Advises Caution in Anticipation of Libra CNBC Host Joe ‘Squawk’ Becomes an Unlikely Hero for Bitcoin Facebook Has Not Applied for RBI Approval to Operate Libra in India: Report CME: Open Interest in Bitcoin Futures Contracts Hit All-Time High |
Is Celanese Corporation (NYSE:CE) A Financially Sound Company?
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Investors seeking to preserve capital in a volatile environment might consider large-cap stocks such as Celanese Corporation (NYSE:CE) a safer option. One reason being its ‘too big to fail’ aura which gives it the appearance of a strong and stable investment. But, its financial health remains the key to continued success. This article will examine Celanese’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourselfinto CE here.
View our latest analysis for Celanese
Over the past year, CE has maintained its debt levels at around US$3.9b which accounts for long term debt. At this current level of debt, CE currently has US$447m remaining in cash and short-term investments to keep the business going. Moreover, CE has generated cash from operations of US$1.7b over the same time period, leading to an operating cash to total debt ratio of 44%, indicating that CE’s debt is appropriately covered by operating cash.
With current liabilities at US$1.8b, it appears that the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.58x. The current ratio is the number you get when you divide current assets by current liabilities. For Chemicals companies, this ratio is within a sensible range since there is a bit of a cash buffer without leaving too much capital in a low-return environment.
Since equity is smaller than total debt levels, Celanese is considered to have high leverage. This is common amongst large-cap companies because debt can often be a less expensive alternative to equity due to tax deductibility of interest payments. Since large-caps are seen as safer than their smaller constituents, they tend to enjoy lower cost of capital. We can test if CE’s debt levels are sustainable by measuring interest payments against earnings of a company. A company generating earnings after interest and tax at least three times its net interest payments is considered financially sound. For CE, the ratio of 1228x suggests that interest is amply covered. It is considered a responsible and reassuring practice to maintain high interest coverage, which makes CE and other large-cap investments thought to be safe.
CE’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow. Since there is also no concerns around CE's liquidity needs, this may be its optimal capital structure for the time being. Keep in mind I haven't considered other factors such as how CE has been performing in the past. I recommend you continue to research Celanese to get a more holistic view of the large-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for CE’s future growth? Take a look at ourfree research report of analyst consensusfor CE’s outlook.
2. Valuation: What is CE 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 CE is currently mispriced by the market.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Celanese Corporation (NYSE:CE): Time For A Financial Health Check
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Investors pursuing a solid, dependable stock investment can often be led to Celanese Corporation (NYSE:CE), a large-cap worth US$13b. Doing business globally, large caps tend to have diversified revenue streams and attractive capital returns, making them desirable investments for risk-averse portfolios. However, its financial health remains the key to continued success. Let’s take a look at Celanese’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourselfinto CE here.
Check out our latest analysis for Celanese
CE's debt level has been constant at around US$3.9b over the previous year which accounts for long term debt. At this stable level of debt, the current cash and short-term investment levels stands at US$447m , ready to be used for running the business. Moreover, CE has generated US$1.7b in operating cash flow during the same period of time, resulting in an operating cash to total debt ratio of 44%, signalling that CE’s operating cash is sufficient to cover its debt.
With current liabilities at US$1.8b, it seems that the business has been able to meet these commitments with a current assets level of US$2.9b, leading to a 1.58x current account ratio. The current ratio is the number you get when you divide current assets by current liabilities. For Chemicals companies, this ratio is within a sensible range since there's a sufficient cash cushion without leaving too much capital idle or in low-earning investments.
Considering Celanese’s total debt outweighs its equity, the company is deemed highly levered. This is not unusual for large-caps since debt tends to be less expensive than equity because interest payments are tax deductible. Since large-caps are seen as safer than their smaller constituents, they tend to enjoy lower cost of capital. No matter how high the company’s debt, if it can easily cover the interest payments, it’s considered to be efficient with its use of excess leverage. Ideally, earnings before interest and tax (EBIT) should cover net interest by at least three times. In CE's case, the ratio of 1228x suggests that interest is amply covered. It is considered a responsible and reassuring practice to maintain high interest coverage, which makes CE and other large-cap investments thought to be safe.
CE’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow. This may mean this is an optimal capital structure for the business, given that it is also meeting its short-term commitment. I admit this is a fairly basic analysis for CE's financial health. Other important fundamentals need to be considered alongside. I recommend you continue to research Celanese to get a better picture of the large-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for CE’s future growth? Take a look at ourfree research report of analyst consensusfor CE’s outlook.
2. Valuation: What is CE 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 CE is currently mispriced by the market.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
These Fundamentals Make Quanta Services, Inc. (NYSE:PWR) Truly Worth Looking At
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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Quanta Services, Inc. (NYSE:PWR) due to its excellent fundamentals in more than one area. PWR is a company with great financial health as well as a a strong history of performance. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at thereport on Quanta Services here.
In the previous year, PWR has ramped up its bottom line by 24%, with its latest earnings level surpassing its average level over the last five years. Not only did PWR outperformed its past performance, its growth also exceeded the Construction industry expansion, which generated a 0.4% earnings growth. This paints a buoyant picture for the company. PWR is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. PWR’s debt-to-equity ratio stands at 37%, which means its debt level is acceptable. This indicates a good balance between taking advantage of low cost funding through debt financing, but having enough financial flexibility and headroom to grow debt in the future.
For Quanta Services, there are three fundamental aspects you should further examine:
1. Future Outlook: What are well-informed industry analysts predicting for PWR’s future growth? Take a look at ourfree research report of analyst consensusfor PWR’s outlook.
2. Valuation: What is PWR 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 PWR is currently mispriced by the market.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of PWR? 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. |
E-mini S&P 500 Index (ES) Futures Technical Analysis – June 21, 2019 Forecast
September E-mini S&P 500 Index futures are trading lower shortly before the cash market opening. The market is also trading inside yesterday’s range, which tends to indicate investor indecision and impending volatility.
The market remains underpinned by expectations of a number of rate cuts in 2019 by the U.S. Federal Reserve, however, growing geopolitical tensions with Iran are weighing on prices this morning. Strength in the energy sector could underpin prices today.
At 11:34 GMT,September E-mini S&P 500 Indexfutures are trading 2953.25, down 6.75 or -0.22%.
The main trend is up according to the daily swing chart. A trade through 2964.50 will signal a resumption of the uptrend. Taking out 2967.75 will reaffirm the uptrend. This is the contract high. The main trend changes to down on a trade through 2871.50.
The minor trend is also up. A move through 2889.00 will change the minor trend to down. This will also shift momentum to the downside.
The main range is 2967.75 to 2732.25. Its retracement zone at 2877.75 to 2850.00 is support. It is also controlling the near-term direction of the index.
Based on the early price action, the direction of the September E-mini S&P 500 Index on Friday is likely to be determined by trader reaction to the uptrending Gann angle at 2956.25.
A sustained move over 2956.25 will indicate the presence of buyers. This could trigger a rally into 2967.75. Look for an acceleration to the upside if this price is taken out.
A sustained move under 2956.25 will signal the presence of sellers. The first target is a downtrending Gann angle at 2931.75. If this angle fails as support then look for the start of a steep break with the next target angle coming in at 2895.75.
Thisarticlewas originally posted on FX Empire
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Does The Data Make Quanta Services, Inc. (NYSE:PWR) An Attractive Investment?
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Quanta Services, Inc. (NYSE:PWR) 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 PWR, it is a company with great financial health as well as a a great history of performance. 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 Quanta Services here.
PWR delivered a bottom-line expansion of 24% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did PWR outperformed its past performance, its growth also exceeded the Construction industry expansion, which generated a 0.4% earnings growth. This is an notable feat for the company. PWR is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. PWR’s debt-to-equity ratio stands at 37%, which means its debt level is reasonable. This means that PWR’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt.
For Quanta Services, I've put together three relevant aspects you should further examine:
1. Future Outlook: What are well-informed industry analysts predicting for PWR’s future growth? Take a look at ourfree research report of analyst consensusfor PWR’s outlook.
2. Valuation: What is PWR 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 PWR is currently mispriced by the market.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of PWR? 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. |
Rolls-Royce Chief Looks to the Electric-Jet Future
(Bloomberg) -- Rolls-Royce Holdings Plc’s Warren East said he’s keen to lead the engine maker into a new age of electrically powered aircraft after spending years focused on costs cuts and restructuring.
The CEO, recruited by Rolls from semiconductor developer ARM Holdings Plc, said his enthusiasm for leading the U.K. engineering giant is undimmed by the saga of firings, disposals and internal realignments, and that he wants to stay at the helm through a new phase of expansion and technological change.
“I didn’t join Rolls-Royce to do restructuring,” East, who has been chief executive for four years next month, said in an interview at the Paris Air Show. “I’m not a turnaround person. Once you’ve made it a more competitive business you want to resume the journey of growing market share.”
East took over after Rolls had been rocked by a run of profit warnings and a corruption probe. Things got worse before they got better, with the CEO saying problems were more deep-seated than he’d realized and ordering thousands of job cuts. Technical faults with the Trent 1000 engine that powers Boeing Co.’s 787 also forced the group to focus on emergency repairs when it should have been preoccupied with a production ramp-up vital to future earnings.
Rolls-Royce’s margins are still behind those of other major aero-engine manufacturers and East said he needs to close that gap and make the London-based company more competitive before he can return to expansion.
Electric Future
The upheaval that would come with a switch to hybrid and electrical propulsion could play to Rolls’s advantage, the CEO said, with the “discontinuity” creating an opportunity to grab a higher market share in a wholly new market.
A move away from jet propulsion had been regarded as decades away, but Airbus SE is now actively studying the introduction of an electric-hybrid design with its next narrow-body plane, and such technology has been a hot topic at this week’s aviation expo in the French capital.
“A few years ago there wasn’t this noise at an air show about electric propulsion, you really had to look hard for it, if at all,” East said.
Rolls put down a marker at the show with the purchase of a Siemens AG business that formed part of a venture with Airbus to build a small regional hybrid aircraft, and the CEO said the greater potential of electric planes is clear, with performance improvements of no more than 1% a year being eked out from gas turbines, compared with a 10% jump in battery energy density.
East said cutting so many jobs has been tough, but that his aim is to position Rolls to be competitive for the next 50 years and beyond.
“It’s obviously uncomfortable for some people who are either going to lose their job themselves, or they know somebody who is going to lose their job,” he said. “But it’s getting them to understand that we’re not some hard-man management that is just doing this so we can line the pockets of investors.”
To contact the reporter on this story: Benjamin Katz in Paris at bkatz38@bloomberg.net
To contact the editors responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net, Christopher Jasper, Andrew Noël
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
To Diversity the Financial Industry, Break the Wheel: Broadsheet
Good morning, Broadsheet readers! Trump’s tariffs would affect women more than men, Kelly Craft has a confirmation hearing to become UN ambassador, and an update from our Brainstorm Finance conference in Montauk. Have a great weekend.
1. EVERYONE’S TALKING•Breaking the wheel.Greetings from Montauk, N.Y., where I spent most of the week atFortune‘s inaugural Brainstorm Finance conference, learning about banking, blockchain, and of course, all things Libra (Facebook’s newly-announced cryptocurrency).Yesterday, I had the pleasure of moderating a panel discussion on diversity—or lack thereof—in the financial industry with Ellevest CEO Sallie Krawcheck, Citigroup vice chairman and chairman of banking, capital markets, and advisory Ray McGuire, and Edward Jones managing partner Penny Pennington. To my delight, it was a spirited discussion that touched on everything from the pay gap, to the issues holding women back in fintech, to #MeToo backlash on Wall Street.Krawcheck was characteristically unsparing in her assessment of the industry’s problems, dismissing the usual talk about diversity groups and mentoring programs.“Guys, we’ve been doing that for years and years and years. If it was gonna work, it would’ve worked,” she said. Instead, she called on financial leaders to “break the wheel.” In other words, half measures won’t do—CEOs must take drastic steps if they hope to create more inclusive cultures.McGuire talked about Citigroup’s own step, which, while not necessarily drastic, is certainly industry-leading: Earlier this year, it disclosed its global pay gap: women at the firm earn 29% less than men. While the bank did face shareholder pressure, the disclosure was voluntary—and it remains the only big bank to reveal such information to the public. To get from good to great, said McGuire, “you have to figure out how good you are.”Pennington, meanwhile, shared an example of a smaller-scale effort that is, in its own way, similarly boundary-pushing. Edward Jones recently introduced a program that incentivizes retiring financial advisors to refer their business to another advisor who’s a woman or person of color. Perhaps not surprisingly, not everyone at the firm was a fan of the policy, including some female advisors, noted Pennington.“Several of them have said to me, ‘Penny! I don’t want anybody to think that my practice is growing because someone felt like they had to do something special for me because I’m a woman.'” she said. “That’s not the point of it at all… But it has raised a level of awareness that might not have been part of the conversation as often as it could have been or should have been.”For more,click hereto read Claire’s excellent coverage of our discussion, orhere to watch the panel in full.Have a wonderful weekend—and please take some time to recharge. We have to get back and break some wheels next week!Kristen Bellstrom@kayelbeekristen.bellstrom@fortune.com
2. ALSO IN THE HEADLINES•Tariffs’ target.President Trump’s tariffs on apparel from China would hurt women more than men, J.C. Penney and its CEO Jill Soltau argued in a letter to the Office of the U.S. Trade Representative. The retailer examined the tariffs’ effects on its prices, and increased prices’ effects on its core customers: middle-class working women.Bloomberg•VR struggles to get real.ForFortune‘s July cover story, Aric Jenkins examines the rise and fall of virtual reality, from the next hottest thing to another cool technology that has so far failed to catch on in everyday life. Verizon VP of global learning Lou Tedrick describes how the company used VR to train employees how to react during an armed robbery. Yelena Rachitsky, who was a Facebook executive producer with the VR studio it shuttered, weighs in on the tech giant’s efforts.Fortune•The other tech enforcer.Big tech is wary of Margrethe Vestager, the European commissioner for competition known for doling out fines. But another figure in Europe’s regulation of tech is Helen Dixon, Ireland’s data protection commissioner. Ireland is at the forefront of taking on Facebook and others over data privacy.CNBC•Not-so-soft skills.ForFortune, New York City First Lady Chirlane McCray and Mayor Bill DeBlasio write about introducing social-emotional learning in the city’s classrooms. Managing emotions and resolving conflicts are “hard skills.” “And just like reading and math, they should be taught, practiced, and strengthened,” the pair says.FortuneMOVERS AND SHAKERS:L’Oreal SA promotedDelphine Viguier-Hovasseto head of L’Oreal Paris,the first woman in the top job at the world’s biggest beauty brand.Peoplemagazine hiresGlamourexecutive editorWendy Naugleas deputy editor.Angelina JoliejoinsTimemagazine as a contributing editor,writing monthly about human rights. BMO appointedShannon Kennedyto run BMO Family Office. The National Safety Council hired Lockheed Martin’sLorraine M. Martinas president and CEO. Sweaty Betty namedJulia StraussCEO.Tapestry, the parent company to Coach, Kate Spade, and Stuart Weitzman, named Abercrombie & Fitch’sJoanne C. CrevoiseratCFO, as former CFOAndrea Shaw Resnickbecomes global head of investor relations and corporate communications.
3. IN CASE YOU MISSED IT•Gen Z in the house.At Brainstorm Finance, 17-year-old, brain-computer interface developer Ananya Chadha sat down withFortune‘s Shawn Tully. Chadha develops applications for blockchain involving genetic data. “Blockchain is so powerful for things that most people forget about,” she says.Fortune•Craft’s confirmation hearing.Kelly Craft, the U.S. ambassador to Canada nominated to replace Nikki Haley as ambassador to the UN, appeared in front of the Senate Foreign Relations Committee for her confirmation hearing Wednesday. Democrats grilled Craft on her frequent travel outside of Canada, and the nominee expressed her appreciation for the UN’s mission—notable in comparison to the Trump administration’s commentary on the institution.Vox•Dressed to kill.At the World Cup, the women’s players aren’t shying away from colorful hair or a bold lip. (If you haven’t seen the Netherlands’ Shanice van de Sanden’s leopard-print buzz cut, you’ve got to take a look.) Players say it makes them feel more at ease and confident, helping with their game—unlike past league-imposed markers of femininity in sports, like skirted uniforms.New York Times•Guns out.Here’s an interesting subculture: female gun influencers on Instagram. Since firearms retailers aren’t allowed to run ads promoting them directly, influencers are a loophole. Influencers turn guns into just another lifestyle on Instagram—and it’s a lucrative job.VoxToday’s Broadsheet was produced byEmma Hinchliffe.Share itwith a friend.Looking for previous Broadsheets?Click here.
4. ON MY RADARThe strange phenomenon of the ‘hero wife’MEL MagazineThe term ‘domestic violence’ is a failureThe AtlanticWomen’s sex toy startup sues New York City’s MTA over ‘double standard’ in advertising rulesFortune
5. QUOTEThis isn’t a negotiation.Judith 'Judge Judy' Sheindlin to a president of CBS Television Distribution after he proposed a counteroffer on her compensation. |
Alan Sugar admits he's only ever changed 'two or three' nappies despite having three children
On 'Piers Morgan's Life Stories,' Lord Alan Sugar admitted to only changing two or three nappies in his life (Eamonn M. McCormack/Getty Images) Lord Alan Sugar has revealed that he’s only ever changed “two or three nappies” despite being a father to two sons and a daughter. Appearing on an upcoming episode of Piers Morgan’s Life Stories , the business tycoon told the host that he spent most of his children’s early years away working. He even confessed to missing the moment his wife, Ann Simons, welcomed their eldest, Simon, into the world. Read more: Lord Sugar backs Boris for PM - just months after saying he should be jailed for misleading public "I was not at the birth. I was playing tennis. And I must admit I was not the modern day father," the 72-year-old told the Good Morning Britain presenter, whom he regularly clashes with on social media. When Morgan went on to quiz him on how many times he must have changed Simon and his siblings - Daniel and Louise - when they were babies, Sugar replied: “Maybe two or three. "But by the time we were onto the third, not even Ann changed the nappies. We had help." Sugar later expressed regret over spending so much time away from his children when they were young, explaining: "I was out working and I wouldn't get home until eight o'clock at night. "The thing is that we are very normal people. We kept the children grounded and that's why they are normal people. *TOMORROW, ITV, 9.35pm* The most combative Life Stories ever... 👊👊👊 pic.twitter.com/C2a7RIkiAz — Piers Morgan (@piersmorgan) June 21, 2019 "That's an achievement. That's bigger than making the hundreds of millions or whatever you want to talk about." Despite Morgan’s probing, Sugar kept quiet on how much he’s actually worth but joked that he’d be able to write out a £150 million cheque. Read more: Lord Alan Sugar defends The Apprentice’ in wake of aftercare debate While he remain tight-lipped on how much he might have in the bank, Sugar was forthcoming about another thing, responding to the rumours that he’s had cosmetic surgery. Before the interview begins, The Apprentice star said: “Can I just say something? I’m pulling the rug from under his feet now. Yes! I’ve had my eyes done; I’ve had cosmetic surgery; I did it for vanity – end of.” Sugar’s Life Stories airs on ITV at 9:35pm on Saturday 22 June. |
What CBIZ, Inc.'s (NYSE:CBZ) ROE Can Tell Us
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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. To keep the lesson grounded in practicality, we'll use ROE to better understand CBIZ, Inc. (NYSE:CBZ).
CBIZ has a ROE of 10%, based on the last twelve months. One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.10 in profit.
View our latest analysis for CBIZ
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for CBIZ:
10% = US$63m ÷ US$623m (Based on the trailing twelve months to March 2019.)
It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. It is the capital paid in by shareholders, plus any retained earnings. Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company.
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 profit over the last twelve months. The higher the ROE, the more profit the company is making. So, as a general rule,a high ROE is a good thing. That means it can be interesting to compare the ROE of different companies.
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. If you look at the image below, you can see CBIZ has a similar ROE to the average in the Professional Services industry classification (12%).
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. I will like CBIZ better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
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 case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the use of debt will improve the returns, but will not change the equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
Although CBIZ does use debt, its debt to equity ratio of 0.29 is still low. I'm not impressed with its ROE, but the debt levels are not too high, indicating the business has decent prospects. 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. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have the same ROE, then I would generally prefer the one with less debt.
But when a business is high quality, the market often bids it up to a price that reflects this. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to take a peek at thisdata-rich interactive graph of forecasts for the company.
But note:CBIZ may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Introducing Rhyolite Resources (CVE:RYE), The Stock That Dropped 23% In The Last Three Years
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As an investor its worth striving to ensure your overall portfolio beats the market average. But the risk of stock picking is that you will likely buy under-performing companies. We regret to report that long termRhyolite Resources Ltd.(CVE:RYE) shareholders have had that experience, with the share price dropping 23% in three years, versus a market return of about 23%. The last month has also been disappointing, with the stock slipping a further 35%.
See our latest analysis for Rhyolite Resources
Rhyolite Resources hasn't yet reported any revenue yet, so it's as much a business idea as an actual business. We can't help wondering why it's publicly listed so early in its journey. Are venture capitalists not interested? So it seems that the investors focused more on what could be, than paying attention to the current revenues (or lack thereof). It seems likely some shareholders believe that Rhyolite Resources will find or develop a valuable new mine before too long.
Companies that lack both meaningful revenue and profits are usually considered high risk. There is usually a significant chance that they will need more money for business development, putting them at the mercy of capital markets. So the share price itself impacts the value of the shares (as it determines the cost of capital). While some such companies go on to make revenue, profits, and generate value, others get hyped up by hopeful naifs before eventually going bankrupt.
When it last reported its balance sheet in March 2019, Rhyolite Resources could boast a strong position, with cash in excess of all liabilities of CA$2.7m. That allows management to focus on growing the business, and not worry too much about raising capital. But since the share price has dropped 8.1% per year, over 3 years, it seems like the market might have been over-excited previously. You can click on the image below to see (in greater detail) how Rhyolite Resources's cash levels have changed over time.
Of course, the truth is that it is hard to value companies without much revenue or profit. What if insiders are ditching the stock hand over fist? I would feel more nervous about the company if that were so. You canclick here to see if there are insiders selling.
Rhyolite Resources shareholders are down 8.8% for the year, but the market itself is up 1.6%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 4.0% over the last half decade. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality businesses. You might want to assessthis data-rich visualizationof its earnings, revenue and cash flow.
But note:Rhyolite Resources 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 CA exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Man pleads guilty to killing elderly woman he asked for water and robbed of £60
Brazil was captured on CCTV in the area and was positively identified by the victim (PA) A burglar has pleaded guilty of to killing an 84-year-old woman as he robbed her of £60 in her home after asking for a glass of water. Pensioner Joyce Burgess died in hospital three days after suffering arm, chest and face injuries. Her handbag containing the cash was stolen in the attack in Woking, Surrey, at around 5.50pm on July 7 last year. Johnny Brazil, 27, pleaded guilty to manslaughter at Guildford Crown Court on Friday. Serial burglar Brazil preyed on elderly victims (PA) Appearing in court on Friday, Brazil previously admitted a further charge of robbery, three counts of burglary, attempted burglary, possessing a lock knife and damaging property. Prosecutor Hugh Forgan said the offender had committed a “pattern of burglaries with particularly vulnerable victims”. A post-mortem examination revealed the pensioner died of coronary and valvular heart disease, bronchial pneumonia and emphysema. Read more on Yahoo News UK: Family hit out after man took his own life after Universal Credit failings US serial killer suspected of murdering Brit given death sentence CCTV captures brutal crowbar attack that left man in coma Brazil was originally charged with causing grievous bodily harm - but police pushed for a more serious charge of manslaughter. Investigating officer Detective Constable Alexis Batty said: “Johnny Brazil is now rightfully behind bars for what he did, having caused the death of Joyce Burgess following his callous robbery and attack on her in her home. “Having been admitted to hospital following the attack, she showed positive signs of recovery before tragically suffering a heart attack two days later brought on by what had happened. Joyce Burgess died in hospital three days after suffering arm, chest and face injuries during the attack (Family Handout) “Our thoughts remain with her family and friends who have remained stoic throughout. “Brazil is simply an opportunistic thief who showed no moral boundaries whatsoever in preying on clearly vulnerable victims and in Mrs Burgess’ case leaving her with significant injuries. “It is heart-breaking that it was all for the sake of her handbag containing personal items and a small amount of cash.” Story continues Brazil admitted killing the pensioner at Guildford Crown Court on Friday (PA) DC Batty added: “Brazil was charged in July based on the evidence we had available at the time. Since then we have sought expert medical advice which meant we had the evidence to proceed with a manslaughter charge. “We appreciate this was a view formed by some in the days after Mrs Burgess’ death, and we have worked hard since to reflect the severity of the offences.” Sentencing is adjourned to August 9 in order to assess Brazil. |
Investors Who Bought Rhyolite Resources (CVE:RYE) Shares Three Years Ago Are Now Down 23%
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In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market index fund. But the risk of stock picking is that you will likely buy under-performing companies. Unfortunately, that's been the case for longer termRhyolite Resources Ltd.(CVE:RYE) shareholders, since the share price is down 23% in the last three years, falling well short of the market return of around 23%. It's down 35% in about a month.
See our latest analysis for Rhyolite Resources
Rhyolite Resources hasn't yet reported any revenue yet, so it's as much a business idea as an actual business. We can't help wondering why it's publicly listed so early in its journey. Are venture capitalists not interested? As a result, we think it's unlikely shareholders are paying much attention to current revenue, but rather speculating on growth in the years to come. For example, investors may be hoping that Rhyolite Resources finds some valuable resources, before it runs out of money.
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 companies like this go on to deliver on their plan, making good money for shareholders, many end in painful losses and eventual de-listing.
Rhyolite Resources has plenty of cash in the bank, with cash in excess of all liabilities sitting at CA$2.7m, when it last reported (March 2019). This gives management the flexibility to drive business growth, without worrying too much about cash reserves. But since the share price has dropped 8.1% per year, over 3 years, it seems like the market might have been over-excited previously. The image below shows how Rhyolite Resources's balance sheet has changed over time; if you want to see the precise values, simply click on the image.
In reality it's hard to have much certainty when valuing a business that has neither revenue or profit. What if insiders are ditching the stock hand over fist? I would feel more nervous about the company if that were so. You canclick here to see if there are insiders selling.
Investors in Rhyolite Resources had a tough year, with a total loss of 8.8%, against a market gain of about 1.6%. 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 4.0% 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. Shareholders might want to examinethis detailed historical graphof past earnings, revenue and cash flow.
Of courseRhyolite Resources 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 CA exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
UBS scrambles to calm rich Chinese clients over 'pig' comment: sources
By Anshuman Daga and Sumeet Chatterjee
SINGAPORE/HONG KONG (Reuters) - UBS has asked its senior client advisers to call or even meet private banking customers from China who have raised concerns about a comment from one of the bank's economists that some people interpreted a racist slur, sources told Reuters.
A reference to Chinese pigs was made in an inflation analysis podcast by UBS global chief economist Paul Donovan, who has since been put on a leave of absence as the bank reviews the matter. The podcast has been taken down.
The Swiss private banking giant has told senior managers to prioritse any concerns on the matter raised by customers in China, a key market for UBS, and to explain its position on the remark and actions taken so far, the sources familiar with the matter said.
"That's the priority for all the senior RMs (relationship managers) and managers in Hong Kong and Singapore now, just to make sure the clients don't get swayed by the reactions mostly in the social media," one of the people said.
"Most of the clients understand and appreciate the actions the bank has taken and they are not going to drop the bank over this, but they do ask questions."
These efforts come after some industry participants rejected UBS' apology last week for Donovan's remarks, criticising it for a lack of cultural awareness and calling for a boycott.
Donovan had said in the podcast that consumer prices in China had risen mainly due to sickness among pigs. "Does this matter? It matters if you are a Chinese pig. It matters if you like eating pork in China," he added, in comments some took offence at because of a perceived reference to people.
UBS lost a lead role on a U.S. dollar bond deal for state-backed China Railway Construction Corp this week, and according to a bank source the decision was taken because of the controversy over the comment.
But UBS has not yet seen any Chinese private banking client exits as a result of the controversy, one of the people said.
The Hong Kong Monetary Authority (HKMA), the banking sector regulator, has also contacted UBS over the incident and asked the bank to keep it informed about the internal investigation, another person said, without giving details.
HKMA said that it would not comment on matters related to specific institutions.
A spokesman for UBS in Hong Kong declined to comment.
China is one of the most important markets for UBS, where the bank's offerings include asset management, and investment and private banking. UBS was the first, in November, to win approval to control its onshore securities joint ventures.
Bulk of the assets managed by private banks in Asia comes from China that mints two new billionaires every week. With $357 billion of assets, UBS was the top wealth manager in Asia last year, as per Asian Private Banker league table.
UBS saw net new money inflows of $16.3 billion in Asia Pacific over January-March, versus $3.2 billion in Switzerland and $2.9 billion in Europe, the Middle East and Africa.
(Reporting by Anshuman Daga and Sumeet Chatterjee; additional reporting by Noah Sin in Hong Kong; Editing by Himani Sarkar and Mark Potter) |
Should You Think About Buying Bright Scholar Education Holdings Limited (NYSE:BEDU) Now?
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Bright Scholar Education Holdings Limited (NYSE:BEDU), which is in the consumer services business, and is based in China, saw significant share price movement during recent months on the NYSE, rising to highs of $12.12 and falling to the lows of $9.35. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Bright Scholar Education Holdings's current trading price of $10.28 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Bright Scholar Education Holdings’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for Bright Scholar Education Holdings
Good news, investors! Bright Scholar Education Holdings is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $20.3, but it is currently trading at US$10.28 on the share market, meaning that there is still an opportunity to buy now. However, given that Bright Scholar Education Holdings’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Bright Scholar Education Holdings’s earnings over the next few years are expected to increase by 76%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
Are you a shareholder?Since BEDU is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor?If you’ve been keeping an eye on BEDU for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy BEDU. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Bright Scholar Education Holdings. You can find everything you need to know about Bright Scholar Education Holdings inthe latest infographic research report. If you are no longer interested in Bright Scholar Education Holdings, you can use our free platform to see my list of over50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Here's Why it is Worth Holding on to Allegion (ALLE) Stock Now
We issued an updated research report onAllegion plcALLE on Jun 21.This security and safety service provider currently carries a Zacks Rank #3 (Hold). Its market capitalization is approximately $10.1 billion.Let’s delve deeper and discuss the company’s potential growth drivers and possible headwinds.Factors Favoring AllegionShare Price Performance, Earnings Projections:Market sentiments seem to be working in favor of the company over time. In the past three months, its share price has gained 24.1%, higher than the industry’s growth of 11.8%.
We believe that impressive financial results helped in driving sentiments for the stock. The company recorded positive earnings surprise of 1.15% in the first quarter of 2019. Its share price has increased 12.1% since the results released on Apr 25, 2019.For 2019, the company anticipates gaining from solid product portfolio, effective pricing actions, greater operational excellence and lower taxes. Adjusted earnings per share in the year are predicted to be $4.75 to $4.90, suggesting year-over-year growth of 6-9%.Top-Line Strength:Allegion is well poised to gain from growing demand for security products, especially electronic products. To expand its core market, it is trying to chalk out channel strategies and invest in digital demand creation.In the first quarter of 2019, the company’s revenues surpassed estimates by 0.5% and increased 6.8% year over year. In the quarters ahead, Allegion believes that healthy growth in non-residential businesses, rising demand for electric security products and acquired assets will be beneficial. For 2019, revenues are predicted to grow 5-6% year over year.Shareholder-Friendly Policies:The company effectively uses capital for rewarding shareholders handsomely through dividend payments and share buybacks. It is worth mentioning here that it increased the quarterly dividend rate by 29% in February 2019. Also, a share buybacks program of $500 million was authorized by Allegion’s board of directors in February 2017.In the first quarter of 2019, the company paid dividends totaling $25.2 million and repurchased 0.7 million shares worth $63.8 million.Factors Working Against AllegionValuation & Lowered Earnings Estimates:Allegion’s shares currently seem overvalued compared with the industry, using the Price/Earnings (TTM) valuation method. The stock’s P/E multiple is 23.64x, higher than the industry’s multiple of 22.78x. Also, the stock is currently trading higher than the industry’s three-month multiple of 22.78x. This makes us cautious about the stock.Also, the company’s earnings estimates for the second quarter and 2019 have been lowered in the past 60 days. The Zacks Consensus Estimate is currently pegged at $1.31 for the second quarter and $4.84 for 2019, suggesting a decline of 0.8% and 0.2%, respectively, from the figure mentioned 60 days ago.Allegion PLC Price and Consensus
Allegion PLC price-consensus-chart | Allegion PLC QuoteHigh Costs Troubling:The company has been suffering from risks arising from higher costs of sales. In the first quarter of 2019, its cost of sales increased 6.4% on a year-over-year basis. Raw material price inflation might be behind this escalation.Rising costs, if unchecked, will continue to dent Allegion's margins in the quarters ahead.Forex Woes:Geographical diversification is reflective of a flourishing business of the company. However, this diversity exposed it to headwinds arising from geopolitical issues and unfavorable movements in foreign currencies. In the first quarter of 2019, forex woes adversely impacted its sales growth by 2.3%.Persistence of such headwinds will continue impacting the company’s top-line results.Stocks to ConsiderSome better-ranked stocks in the Zacks Industrial Products sector are Roper Technologies, Inc. ROP, Chart Industries, Inc. GTLS and DXP Enterprises, Inc. DXPE. While Roper and Chart Industries currently sport a Zacks Rank #1 (Strong Buy), DXP Enterprises carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.In the past 30 days, earnings estimates for all these three stocks have improved for the current year. Further, average earnings surprise for the last four quarters was positive 8.43% for Roper, 16.56% for Chart Industries and 48.47% for DXP Enterprises.Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportRoper Technologies, Inc. (ROP) : Free Stock Analysis ReportChart Industries, Inc. (GTLS) : Free Stock Analysis ReportDXP Enterprises, Inc. (DXPE) : Free Stock Analysis ReportAllegion PLC (ALLE) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Scandium International Mining Corp. (TSE:SCY): What Does Its Beta Value Mean For Your Portfolio?
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Anyone researching Scandium International Mining Corp. (TSE:SCY) 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. 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 are more sensitive to general market forces than others. 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. 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.
View our latest analysis for Scandium International Mining
Zooming in on Scandium International Mining, we see it has a five year beta of 1.43. This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. If this beta value holds true in the future, Scandium International Mining shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. Beta is worth considering, but it's also important to consider whether Scandium International Mining is growing earnings and revenue. You can take a look for yourself, below.
Scandium International Mining is a rather small company. It has a market capitalisation of CA$44m, which means it is probably under the radar of most investors. 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 Scandium International Mining 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 Scandium International Mining’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Financial Health: Are SCY’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 SCY 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 SCY'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. |
AirPods 2, new Kindle Oasis, Instant Pot, and more deals for June 21
There have been a few AirPod deals in the past few weeks — and if you missed them all, you may be glad you did. TheApple AirPods 2are $19.01 off, and it's the first deal we've seen on the wireless charging case. Amazon also has several other popular Apple products on sale including $99.01 off the newest13-inch MacBook Air, $50 off theApple Watch Series 4, and $100 off the 11-inchiPad Pro.
Have a list of summer recipes to try? Grab the roast-shapedInstant Pot Auraon sale for $59.95 or the10-in-1 Instant Pot Ultraon sale for $103.99.
Check out more of today's best deals fromAmazon,Walmart,Dell Home,B&H Photo-Video, andBest Buyfor Friday, June 21st.Read more...
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What Percentage Of Azarga Uranium Corp. (TSE:AZZ) Shares Do Insiders Own?
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If you want to know who really controls Azarga Uranium Corp. (TSE:AZZ), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I 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.'
With a market capitalization of CA$44m, Azarga Uranium is a small cap stock, so it might not be well known by many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about AZZ.
See our latest analysis for Azarga Uranium
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Azarga Uranium already has institutions on the share registry. Indeed, they own 5.3% of the company. 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 Azarga Uranium, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Azarga Uranium. 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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders maintain a significant holding in Azarga Uranium Corp.. Insiders own CA$5.0m worth of shares in the CA$44m company. It is great to see insiders so invested in the business. It might be worth checkingif those insiders have been buying recently.
The general public, mostly retail investors, hold a substantial 83% stake in AZZ, suggesting it is a fairly popular stock. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
I always like to check for ahistory of revenue growth. You can too, by accessing this free chart ofhistoric revenue and earnings in thisdetailed graph.
Of coursethis may not be the best stock to buy. 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. |
The Rise of the "Pot-Bots" -- Can Investors Profit From Technology That's Disrupting How Cannabis Is Sold?
Automated teller machines (ATMs) revolutionized the banking industry. Customers were able to withdraw or deposit money anytime they wanted. Waiting times in lines inside the bank were cut drastically. And banks made more money as their operational efficiencies increased. Now a somewhat similar technology holds the potential to disrupt the cannabis industry. Fully automated cannabis kiosks use robotic arms and even artificial intelligence (AI) to enable customers to purchase cannabis and cannabidiol (CBD) products without interacting with a human. There should be tremendous potential for this technology, with 33 U.S. states having legalized medical cannabis , 11 with legal adult-use recreational marijuana markets (including Illinois, which plans to launch its legal recreational pot market in 2020), and hemp CBD now legal at the federal level in the U.S. But can investors profit from the rise of the "pot-bots"? A Greenbox cannabis vending machine. A Greenbox Robotics kiosk. Image source: Greenbox Robotics. Why the technology is so appealing You might be tempted to dismiss the cannabis kiosks as just vending machines. And yes, they serve the same function as traditional vending machines -- enabling customers to select and buy products. But there's a lot more to these cannabis kiosks than meets the eye at first glance. One cannabis kiosk that's been available for a while already uses military-grade biometrics to authenticate customers by scanning their finger veins to ensure they're of a legal age to purchase cannabis products. Customers use a touchscreen display to select from a variety of products. Once a customer has chosen the cannabis products that he or she wants to purchase, payment can be made using cash, coins, or a credit card. If there's a problem (such as running out of a particular cannabis product), the kiosk alerts the appropriate staff. A newer type of cannabis kiosk that launched earlier this year has even more bells and whistles. It uses facial recognition to authenticate customers. The system also uses a touchscreen interface that allows customers to select multiple cannabis products in one transaction. Customers can get detailed information on the differences between products to help them make their purchase decisions. The kiosk even uses AI to make customized recommendations based on the customer's buying patterns in a similar way to what Amazon.com does. Story continues Once the cannabis products are selected, a robotic arm retrieves and dispenses the items. The customer even gets to watch the robot at work through shatterproof glass. Payment can be made using credit cards, debit cards, Apple Pay, or Android Pay. While all of this makes shopping for cannabis or CBD products easy and convenient for customers, the companies that operate the cannabis dispensaries win, too. Just as banks did with ATMs, cannabis retailers improve their operational efficiencies and can tremendously boost their revenue per square foot. Key players in the market Several companies offer cannabis kiosks. And while there are similarities between the companies' technologies, there are also key differences. American Green markets its AGM Pro kiosk. This system relies on finger vein biometric authentication of customers. It isn't designed solely for cannabis products. AGM Pro can also be used for other age-restricted products, including alcoholic beverages, cigarettes, e-cigarettes, and over-the-counter medications. Greenbox Robotics sells its greenbox kiosk for cannabis products and its marinabox kiosk for CBD products. (The robotic system that incorporates AI mentioned earlier described the greenbox kiosk.) Greenbox Robotics CEO Zack Johnson stated in a recent interview with Civilized that the system made its debut in January at a cannabis dispensary in Los Angeles. GreenSTOP takes a different approach with its Smart Dispensary. Customers can preorder cannabis products using smartphone apps and pick up the products at the kiosk later. Grasshopper's cannabis kiosks authenticate customers by scanning their ID cards. Frank Mayer and Associates' kiosks support only self-ordering -- after a customer places an order for cannabis products, the kiosk prints a ticket that they can bring to the counter of the dispensary to check out. Limited investing opportunities As promising as this technology is for the cannabis retail industry, investors don't have many options to profit from the potential growth in the use of cannabis kiosks. Of the five companies mentioned that sell cannabis kiosks, only one is publicly traded. That one outlier is American Green. The company made less than $300,000 in revenue in its last reported quarter and lost over $1 million. American Green is a penny stock with a very low market cap. That's not the kind of stock that most investors would want to buy. Another investing angle is to go with the stock of a company that supplies key technology for cannabis kiosks. One possibility is IBM (NYSE: IBM) . The technology giant acquired Datacap in 2010. Datacap supplies the payment processing technology used in Greenbox Robotics' systems. The problem, though, is that any cannabis technology sales for IBM amount to only a drop in the bucket for the company. What about investing in public companies that could benefit from using "pot-bots"? Curaleaf (NASDAQOTH: CURLF) announced in May that it's acquiring the Select brand and operations from Cura Partners. Select used Greenbox Robotics' marinabox kiosk in an exhibit at the SXSW conference and festival in Austin, Texas, earlier this year. Again, however, it's still way too early for the technology to make any dent on Curaleaf's prospects. The bottom line is that, at least for now, there aren't any great alternatives to invest in what could be a disruptive technology for the cannabis industry. Investors will have to look elsewhere for opportunities to profit from cannabis. The good news is that there are quite a few of those opportunities available. More From The Motley Fool Beginner's Guide to Investing in Marijuana Stocks Marijuana Stocks Are Overhyped: 10 Better Buys for You Now Your 2019 Guide to Investing in Marijuana Stocks John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Speights owns shares of Apple. The Motley Fool owns shares of and recommends Amazon and Apple. The Motley Fool is short shares of IBM and has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool has a disclosure policy . |
23% of Employers Are Contemplating This Crucial Benefit
Americans of all ages are grappling with student debt, and it only seems to be getting worse by the day. U.S. borrowers are now on the hook forover $1.5 trillionin student loans, and Americans owe more in educational debt than they do in credit card and auto debt combined.
But employers may be able to help. Though only a small percentage of companies offer student loan repayment assistance at present, an estimated 23% are considering such programs, as per anew reportby the International Foundation of Employee Benefit Plans.
If your company has been on the fence about kick-starting such a program, it pays to move that idea forward. You'd effectively be pioneering aworkplace perkthat many workers only dream about. And that, in turn, could benefit your company in more ways than one.
Image source: Getty Images.
In today's competitive job market, attracting and retaining talent can be a challenge. But if you're willing to offer some form of assistance on student loan repayment, you may have an easier time getting new hires to join your team, all the while hanging on to your most valued current employees. Furthermore, student loan repayment assistance could help boost employee satisfaction and morale. And when that happens, you're apt to get more from your existing staff.
Another thing to consider is that student debt is a major source of stress for Americans young and old, and helping to alleviate it might help your workers to better concentrate on their jobs. The result? An uptick inproductivity, and better results for your business.
You can't just snap your fingers and implement a student loan repayment assistance program overnight. In fact, there are several barriers you might encounter.
For one thing, there's the cost. You'll need to figure out how much you can afford to allocate to such a program, and whether such a benefit will come at the cost of other perks.
You'll also need to decidehowyou'll implement such a program. Will it be available for new hires immediately? Will employees be required to commit to staying for a certain period of time once they're given money for their outstanding debt? And how much money will your company actually be providing for these purposes? These are all questions you'll need to ask before moving forward.
Additionally, you may encounter some resistance from employees who have been working for you for years and were forced to repay their student debt without help. You'll need to figure out how to appease them.
Still, it pays to consider student loan repayment assistance because it's sure to help your business stand out. And in today's market, that's hard to put a price on.
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Quaterra Announces New CEO and AGM Results
Vancouver, British Columbia--(Newsfile Corp. - June 21, 2019) - Quaterra Resources Inc. (TSXV: QTA) (OTCQB: QTRRF) ("Quaterra" or "the Company") today announced that Gerald Prosalendis, current President and COO of the Company, has been named President and Chief Executive Officer, effective July 1, 2019. To accommodate this appointment, Thomas Patton will resign as CEO while retaining the position of Chairman of the Board of Directors.
Mr. Prosalendis has been involved in decision-making at a senior level for 30 years across a variety of business sectors, and for the last two decades has focused on mineral exploration and development. He has been an integral part of Quaterra's recent strategic developments including the agreement with Atlantic Richfield Company facilitating a solution to long-standing environmental issues at the Company's Nevada-based Yerington project, and the sale of certain water rights for US$6.02 million.
"Over the past few months we have made big strides towards de-risking our Yerington project and setting the stage for attracting investment and potential partners for mine development," says Mr. Prosalendis. "The sale of water rights enabled us to fund the company without diluting shareholders. The agreement with Atlantic Richfield facilitated a solution to long-standing environmental issues at Yerington, in turn, placing the project on a simpler path to permitting and mine development."
Mr. Patton will continue to play an active role in the Company focused on exploration endeavours and will work closely with the Company's Board of Directors and CEO in developing and implementing the Company's strategy.
"We would like to recognize Tom for his unwavering commitment to Quaterra as CEO over many years. We also appreciate his continued active involvement with the Company as Chairman of the Board, his valuable expertise and the access that he provides through his years of experience to a wide network of North American geoscientists and mineral explorers," says Mr. Prosalendis.
Mr. Prosalendis has been an officer and director of a number of publicly traded mining exploration and development companies. He was the VP Corporate Development both of Western Silver Corporation when it sold in 2006 to Glamis Gold, and of Dia Met Minerals when it was sold to BHP Billiton in 2001. While at Dia Met he was a member of the team that developed the Ekati diamond mine. He is currently a director of Lithoquest Diamonds Inc. His work has involved developing strategic plans; building and managing teams to implement those plans; identifying opportunities for growth including property acquisitions, M&A activity and joint ventures; negotiating agreements; facilitating corporate financings; and, raising companies' profiles in the investment community.
Quaterra today also announced that all resolutions were passed by the requisite majority at its annual general meeting held in Vancouver, British Columbia on June 20, 2019. PricewaterhouseCoopers LLP, Chartered Professional Accountants were re-appointed as auditors of the Company for the ensuing year and shareholders approved the Company's 2019 10% rolling stock option plan.
A total of 130,748,566 common shares were represented at the AGM, representing 63.98 % of the votes attached to all outstanding common shares as at the record date. All the matters submitted to the shareholders for approval as set out in the Company's notice of meeting and information circular dated May 13, 2019, were approved by the requisite majority of votes cast at the AGM.
The following five incumbent directors were re-elected: Thomas Patton, John Kerr, LeRoy Wilkes, Terry Eyton and Gerald Prosalendis.
Following the annual general meeting, the Board of Directors appointed Thomas Patton as Chairman and CEO of Quaterra, Gerald Prosalendis as President and COO (to change as detailed above on July 1, 2019), Lei Wang as CFO and Lawrence Page, Q.C. as Corporate Secretary.
The Company also announced that it has granted 2,950,000 incentive stock options to 23 directors, officers, employees and consultants pursuant to the Company's stock option plan. The options are exercisable at a price of Cdn$0.065 per share for a period of five years and are subject to the policies of the TSX Venture Exchange.
About Quaterra Resources Inc.
Quaterra Resources Inc. (TSXV: QTA) (OTCQB: QTRRF) is a copper exploration company with the objective of advancing its U.S. subsidiary's copper projects in the Yerington District, Nevada. Quaterra also holds an option to earn a 90% interest in the Groundhog copper prospect, a 40,000-acre property situated on an established copper porphyry belt 200 miles southwest of Anchorage, Alaska, and immediately north of the large Pebble copper-gold porphyry project. The Company continues to look for opportunities to acquire copper projects on reasonable terms that have the potential to host large mineral deposits attractive to major mining companies.
On behalf of the Board of DirectorsGerald Prosalendis, President and COOQuaterra Resources Inc.
For more information please contact:Karen Robertson, Corporate Communications, 778-898-0057Gerald Prosalendis, President and COO, Quaterra Resources Inc., 250-940-3581Thomas Patton, Chairman and CEO, Quaterra Resources Inc., 604-641-2758Email:info@quaterra.comWebsite:www.quaterra.com
This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Factors that could cause actual results to differ materially from those in forward looking statements include that federal and state governments and agencies and their private sector partners will implement an agreement to remediate the Yerington mine site and complete the work, the Company will continue to receive funding, that near term opportunities exist to enhance value, that exploration drilling will be undertaken, that results will define further mineralization or high grade zones; that historical and new exploration will support a resource on the property; that the Yerington assets have the potential to support mining operations; and that the copper price will support mining investment. Quaterra Resources Inc. does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in Policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45790 |
3 Dividend Aristocrats to Buy and Hold Forever
It takes a special company to increase its dividend for decades on end, butAflac(NYSE: AFL),Medtronic(NYSE: MDT), andHormel Foods(NYSE: HRL)have each done it. The yields here may not be huge, but the opportunities for income investors are big just the same. If you take the time to get to know Aflac's insurance niche, Medtronic's acquisition acumen, and Hormel's proven history to shift with customers over time, I'm confident you'll find at least one stock here that would fit well in your portfolio today.
Brian Stoffel(Aflac):There's only one stock I own that qualifies as a Dividend Aristocrat -- and it happens to be the stock I've owned the longest, too. Aflac is probably most famous for its talking duck. The rest of the business -- which focuses onproviding supplemental insuranceprimarily in the United States and Japan -- is pretty boring.
Image source: Getty Images.
But that talking duck is worth a lot more than you might think. The brand awareness makes the company a natural choice whenever a family is looking for extra insurance to help cover medical or disability needs. It's much easier to find distribution partners with that kind of mind space. And the aging population of Japan makes supplemental insurance for things like cancer fairly popular.
For those unfamiliar with how such insurers work: Aflac takes the premiums its policyholders pay and invests them in relatively safe and boring places -- like international bonds. That "float" then produces income while the company pays out claims for its policyholders.
While the current dividend yield of 2.1% is modest, the payout has grown for 36 consecutive years. The compounding on that growth makes a huge difference in the long run. Case in point: My shares -- bought in 2009 -- are up 540%. But when you include the effect of dividends, that return jumps all the way to 730%.
While you might not get the same returns over the next decade, you'll get the same powerful addition that dividends provide to your absolute returns.
George Budwell(Medtronic):If you're looking for an elite Dividend Aristocrat stock, Medtronic -- the world's largest medical device company in terms of annual sales -- should definitely be on your radar right now.
Even though the company has had some troubles with itsdiabetes and cardiovascular care unitsover the last year, Medtronic has still managed to post respectable levels of top- and bottom-line growth in recent quarters, thanks to the outstanding commercial performance of its minimally invasive therapies group, restorative therapies group, and growing presence in key emerging markets throughout Southeast Asia.
Best of all, Medtronic's free cash flow jumped from $746 million to a stellar $1.8 billion in the most recent quarter compared to the same period a year ago. The company, in turn, should have no problem keeping its four-decade-long streak of raising its dividend intact. Driving this point home, Medtronic has now raised its annual payout to shareholders every year since the second year of the Carter administration. That's an amazing track record for a healthcare-oriented dividend stock.
How has Medtronic stayed on top of its game? The company's secret sauce, if you will, has been its aggressive mergers-and-acquisitions strategy that's helped to bring in several new disruptive technologies. Late last year, for instance, the company gobbled up Mazor Robotics, giving it a top-notch robotic surgery platform. Wall Street, in kind, believes this novel robotic surgery platform will help boost the company's top line a healthy 4.8% in 2021.
In all, Medtronic is a proven commodity when it comes to generating outstanding returns on capital and providing shareholders with a solid source of passive income. That's a winning combination that should definitely appeal to long-term-oriented investors.
Reuben Gregg Brewer(Hormel Foods):Although packaged food icon Hormel Foods only offers investors a 2.1% dividend yield, it has increased its disbursement annually for an incredible 53 consecutive years. That's a streak that few companies can match and shows an institutional dedication to returning value to investors. On top of that, management tends to take a conservative financial approach, with long-term debt making up less than 5% of the capital structure at the end of the 2019 fiscal second quarter.
That said, Hormel is facing some headwinds today along with its peers. Customer tastes are shifting toward food considered fresh and healthy, not the historical strong suit of packaged-food makers. However, with a large meat business, Hormel is actually fairly well positioned. And it has been shifting its business around to better serve customers, buying brands like Wholly Guacamole that resonate more with consumers today. With a rock-solidbalance sheet, Hormel has plenty of time and ample resources to adjust its business as end-market tastes shift.
HRL Dividend Yield (TTM)data byYCharts.
But here's the thing that makes Dividend Aristocrat Hormel so attractive today: That 2.1% yield, while not huge, happens to be toward the high end of the company's historical range. Hormel has consistently provided double-digit dividend growth backed by a financially strong company (the payout ratio is a reasonable 40%, by the way). It also has a long history of adjusting along with customers, noting that you don't get to five decades of dividend hikes by being an industry also-ran. All things considered, it looks like dividend investors would be well served by a deep dive here even if 2.1% is a bit below your normal yield target.
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Brian Stoffelowns shares of Aflac.George Budwellhas no position in any of the stocks mentioned.Reuben Gregg Brewerowns shares of Hormel Foods. The Motley Fool recommends Aflac. The Motley Fool has adisclosure policy. |
Where Will bluebird bio Be in 1 Year?
In the first quarter of 2019,bluebird bio(NASDAQ: BLUE)was flying high, with the stock soaring more than 60%. The second quarter, however, has been a different story for the biotech. Bluebird has given up much of its gain, although shares are still up around 20% year to date.
Where Bluebird has been isn't nearly as important as where it's going. There are many important developments on the way for the company. Where will Bluebird be in one year? Here's the most likely scenario.
Image source: Getty Images.
Bluebirdrecently won European approval for its gene therapy Zyntegloin treating transfusion-dependent beta-thalassemia (TDT). By this time next year, Zynteglo should be picking up sales momentum. Analysts predict the gene therapy could reach blockbuster sales levels in the future. But don't count on massive sales for Zynteglo next year.
Regulatory approval in Europe is only an initial step. Bluebird must negotiate reimbursement deals with each European country one by one. That should be an interesting process considering that the companyset a $1.8 million price tag for Zynteglo. However, Bluebird plans to allow payments over a five-year period. And if the gene therapy doesn't work for a patient, payers won't have to keep making payments. This approach should make the high price more acceptable.
While the reimbursement process kicks into gear, Bluebird is also working with select treatment centers in Europe that have expertise in stem cell transplant and treating TDT. Zynteglo isn't a typical drug. Blood stem cells must be removed from a patient's body, sent to a lab where the gene therapy is introduced to the cells, then sent back for infusion into the patient. It's a complex process that requires significant training.
By June of next year, Bluebird should also be very close to winning U.S. approval for Zynteglo in treating TDT and possibly even already have an approval in hand. The biotech expects to submit for FDA approval by the end of 2019. If Zynteglo receives a Priority Review designation, the FDA will make an approval decision within six months instead of the standard 10-month window.
Bluebird probably won't have just one drug on the market for very long. There's a real chance that its cell therapy bb2121 could win FDA approval as a late-line treatment for multiple myeloma by the end of next year.
The decision on when to file for approval won't be entirely up to Bluebird, though.Celgene(NASDAQ: CELG)licensed the commercialization rights to the cell therapy. And withBristol-Myers Squibb's(NYSE: BMY)acquisition of Celgene likely to finalize within the next few months, the green light for regulatory filing will ultimately be made by the big pharma company's executives.
Assuming there are no significant issues identified in the clinical studies for bb2121, I don't expect Bristol-Myers Squibb to hold off on filing for approval. As part of the buyout deal, Celgene investors will receive a contingent value right (CVR) that provides extra money if three of Celgene's candidates are approved by specified dates. One of those candidates is bb2121, which must receive FDA approval by March 31, 2021, to meet the CVR requirements.
Bluebird anticipates preliminary results from another promising pipeline candidate, Lenti-D, will be available in the summer of 2020. While those results probably won't be announced by exactly one year from now, investors will eagerly await good news for what could be the biotech's third commercial drug.
The company hopes to secure regulatory approvals in 2021 in both the U.S. and Europe for Lenti-D in treating rare genetic disease cerebral adrenoleukodystrophy (CALD). Some analysts think that Lenti-D could be Bluebird's biggest winner of all, with peak sales of up to $4 billion.
If we could fast forward to June 2020, I think that Bluebird will have one potential blockbuster drug (Zynteglo) slowly picking up momentum in Europe and very close to approval in the U.S. The biotech should have another blockbuster (bb2121) only months away from FDA approval. And it should be poised to release clinical study results for an even more promising drug, Lenti-D.
Sure, Bluebird's current market cap of around $6.5 billion already bakes in expectations of success for its drugs. However, I think the stock has plenty more room to run.
So where will Bluebird be one year from now? My cautious prediction is that Bluebird's shares will trade 25% higher by June 2020. There's just too much good news for investors to ignore with this up-and-coming biotech.
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Keith Speightsowns shares of Celgene. The Motley Fool owns shares of and recommends Bluebird Bio and Celgene. The Motley Fool has adisclosure policy. |
At-Home Crypto Miner Coinmine Now Pays Out Bitcoin
Coinmine, a cryptocurrency mining device aimed at the hobbyist market, will now give its users the option to be paid in bitcoin.
The device was able to mine monero, zcash, grin and ethereum at launch, a set of cryptocurrencies that had a low enough difficulty threshold to allow for the average miner to see a minimal return. The addition of bitcoin payouts gives miners more incentive to try the $799 ($699 with a special BTC discount) product.
“To get you the most bitcoin possible from yourCoinmineOne, we had to engineer MineOS to automatically mine whatever crypto converts to bitcoin at the highest rate and then exchange it to Bitcoin for you and put it in your wallet,” said founder Farbood Nivi. “This way you’re getting way more Bitcoin than if the device was mining Bitcoin directly. ”
Related:Bitcoin Price Eyes $10K After Erasing 40% of Bear Market Drop
TheCoinminebox won’t make you a millionaire overnight. Nivi sees it as a testbed and experimental tool for those who want to dip a toe into the mining process. Given the resource requirements of high-stakes mining, however, the Coinmine offers users a less energy-intensive option.
“At today’s numbers, your Coinmine One will generate about $15-20/month of bitcoin in USD prices,” said Nivi. “Of course, that number changes based on the future value of Bitcoin. If the value of Bitcoin appreciates, so will the value of what you made with your Coinmine One.”
Nivi also sees the product as a cheaper and faster way to take part in networks like Lightning.
“The time to build and maintain a comparable device with mining and a Bitcoin Lighting Node is about $400 if your time is worth $20/hour and it takes you 20 hours to research and build the hardware and software,” he said. “The parts for a miner and a Bitcoin Lightning Node could cost you $500 easily. That’s $900, and you still would have to control your DIY device from a command line with a monitor and keyboard instead of an app you can just tap on.”
Related:Bitcoin Price Breaches $9.6K to Hit 400-Day High
Coinmine is rolling out the BTC update today and users will be able to mine and even “put their crypto to work,” said Nivi.
“We’re also partnering with services like Compound Finance,Cred, andBlockfiso you can put your crypto to work and earn a return on the crypto that your Coinmine makes. We call it Compound Mining. All of this is possible because of MineOS,” he said.
Image via Coinmine
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Tough Time for Homebuilding ETFs Despite Fed's Dovishness?
Sentiment among U.S. homebuilders recorded its first slump this year despite declining mortgage rates. Per the monthly National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), builder confidence dropped to 64 in June from 66 in May and 68 a year ago. U.S. homebuilding also declined in May and building permits have been soft this year, while upbeat demand should have kept construction steady (read: U.S. Homebuilder Sentiment Data Soft in June: ETFs in Focus).
What’s Bothering the Space?
The housing market has been struggling for five quarters in a row. Shortage of land and labor is an age-old problem for the sector. The imposition of tariff on imported Canadian lumber in the Trump era is a new concern for the industry. Historically, lumber reached an all-time high in May of 2018. This year, its cost has gone up 18.9%. So, overall, cost structure for homebuilder is on the rise. Threats of “excessive regulation” is also hurting construction.
Raymond James analyst Buck Horne noted that valuation is pretty high in the homebuilding space. “Valuations are now trading above cyclical median multiples,” per the analyst, even as fiscal 2019 earnings estimates have skidded about 9% since the start of the year, as quoted on MarketWatch.Lennar CorporationLEN shares are up 33.1% this year whileKB HomeKBH has gained about 31.4% despite a not-so-encouraging operating backdrop.
Investors should also note that higher operating costs make homes costlier, which is deterring entry-level buyers from entering the housing market. According to the latest data, house prices increased 3.7% in March from a year ago, outperforming wages, which increased 3.1% in May, per Reuters.
All these factors are weighing on the space despite a dovish Fed and low mortgage rates. Raymond James analyst Buck Horne further noted that data “in key homebuilding markets are indicating a late-season boost in buyer traffic and home sales, most likely due to the fall in mortgage rates. That said, quick drops in mortgage rates often have an effect of pulling forward contracts from home buyers, which can leave an air-pocket of demand in subsequent months.”
What Lies Ahead?
Further dive in mortgage rates amid rising wager on a rate cut this year and some upbeat earnings could boost the space in the near term though the medium term looks bleak amid overvaluation concerns. Investors should note thatSPDR S&P Homebuilders ETFXHB persistently beat the S&P 500 in the past six-month time frame on cues of dovish Fed activity. It means the move of policy easing is already priced-in. So, much of a bump from here is less expected.
Along with XHB, investors should keep track ofiShares U.S. Home Construction ETFITB,Direxion Daily Homebuilders & Supplies Bull 3X SharesNAIL andInvesco Dynamic Building & Construction ETF (PKB)in a volatile operating backdrop for the homebuilding market (see all industrial ETFs here).
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportKB Home (KBH) : Free Stock Analysis ReportLennar Corporation (LEN) : Free Stock Analysis ReportiShares U.S. Home Construction ETF (ITB): ETF Research ReportsSPDR S&P Homebuilders ETF (XHB): ETF Research ReportsInvesco Dynamic Building & Construction ETF (PKB): ETF Research ReportsDirexion Daily Homebuilders & Supplies Bull 3X Shares (NAIL): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report |
Some SolidusGold (CVE:SDC) Shareholders Have Copped A Big 67% Share Price Drop
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SolidusGold Inc.(CVE:SDC) shareholders should be happy to see the share price up 15% in the last week. But that doesn't change the fact that the returns over the last three years have been disappointing. In that time, the share price dropped 67%. So it's good to see it climbing back up. While many would remain nervous, there could be further gains if the business can put its best foot forward.
View our latest analysis for SolidusGold
SolidusGold hasn't yet reported any revenue yet, so it's as much a business idea as an actual business. We can't help wondering why it's publicly listed so early in its journey. Are venture capitalists not interested? So it seems that the investors focused more on what could be, than paying attention to the current revenues (or lack thereof). It seems likely some shareholders believe that SolidusGold will find or develop a valuable new mine before too long.
Companies that lack both meaningful revenue and profits are usually considered high risk. You should be aware that there is always a chance that this sort of company will need to issue more shares to raise money to continue pursuing its business plan. While some such companies go on to make revenue, profits, and generate value, others get hyped up by hopeful naifs before eventually going bankrupt. SolidusGold has already given some investors a taste of the bitter losses that high risk investing can cause.
Our data indicates that SolidusGold had CA$16,795 more in total liabilities than it had cash, when it last reported in December 2018. That makes it extremely high risk, in our view. But with the share price diving 31% per year, over 3 years, it's probably fair to say that some shareholders no longer believe the company will succeed. You can see in the image below, how SolidusGold's cash levels have changed over time (click to see the values).
Of course, the truth is that it is hard to value companies without much revenue or profit. Given that situation, would you be concerned if it turned out insiders were relentlessly selling stock? I would feel more nervous about the company if that were so. You canclick here to see if there are insiders selling.
While the broader market gained around 1.6% in the last year, SolidusGold shareholders lost 25%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 12% over the last half decade. 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.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Adidas has sued pretty much everyone who has used stripes
Earlier this week, Adidas lost a trademark battle over its iconic three-stripe logo after a European Union court ruled it wasn’t “distinctive” enough to merit broadened protections. The court’s decision is the latest in the German sneaker giant’s incredibly long history of trying to elbow out any company that dares to use stripes. The three-stripe symbol was first registered by Adidas founder Adolf “Adi” Dassler in the 1950s after he bought it off of a small Finnish sportswear brand called Karhu, which had beat him to it. The brand’s trefoil logo appeared alongside the stripes on shoes and apparel in the 1970s, but the three-stripe motif was reintroduced as the sole logo on Adidas footwear and apparel in 1997. Meet all the Democratic candidates in the crowded 2020 race Since then, the shoe company has been waging war on all those who attempt to infringe on the logo, including companies that use two, four, and even up to seven stripes in designs. Adidas’s trefoil logo, which served more as a corporate symbol after its run in the 70s. While Christian Louboutin’s successful trademarking of its signature red shoe soles is probably the most recognizable of the petty fashion copycat cases, Adidas is notorious for taking just about anyone to court who dares to use stripes. Indians can worry less as the US denies capping H-1B visa quota According to a 2008 court filing in which Adidas sued Payless Shoesource for, yes, copying its three-stripe trademark, Adidas “has pursued over 325 infringement matters involving the Three-Stripe mark in the United States” since 1995, including 35 separate lawsuits and 45 settlements with the alleged infringers. Here’s a look at some of the most notable of these lawsuits from the last few decades—a list that includes departments stores, rival apparel companies, and auto manufacturers: Adidas vs. its shoe rivals Nike and Adidas have a long history of legal gripes , including a debate over knit shoes that’s still ongoing . A 2005 case that Adidas filed against its competitor in Germany argued that Nike’s use of two parallel stripes on some of its apparel infringed on Adidas’s three-stripe design. A German court ruled in favor of Adidas . Story continues Several years later, Payless was ordered to pay $305 million to Adidas for “willfully infringing” on the three-stripe trademark. In more recent shoemaker strife, Adidas hit athletic apparel competitor Puma with an infringement complaint in 2017 over the four-stripe design of one of its soccer cleats. And in 2018, Adidas settled a trademark infringement suit over a Skechers shoe that resembled Adidas Stan Smith sneakers. Now the company is again claiming that a different Skechers shoe—the “Goldie-Peak”— is infringing on the three-stripe trademark . That suit is ongoing. Adidas vs. the apparel world In its first lawsuit (and third complaint) against Abercrombie & Fitch, Adidas sued the retailer in 2005 for apparel that featured three parallel stripes running down sleeves and pant legs. Likewise, Adidas sued fast fashion retailer Forever21 over cartoon-covered garments with three-stripes along the arms. The two parties settled in 2017 . The same year, Adidas claimed that the Los Angeles-based designer Juicy Couture “intentionally adopted and used counterfeit and/or confusingly similar imitations of the Three-Stripe Mark” in its apparel, referring to several of its sweatsuit designs. And downmarket kids gear isn’t the only target. Ralph Lauren was hit with a suit in 2014 after Adidas claimed a Polo jacket with two stripes on the sleeve was a little too close to an Adidas jacket with three stripes. One year later, Adidas took Marc Jacobs to court over sweaters with four stripes running down their arms. Marc Jabos and Adidas settled in 2016 . Adidas vs. department stores Some of Adidas longest-running disputes stem from major department stores hawking two- and four-striped shoes. Adidas settled its third trademark lawsuit against retailer Walmart in 2008, claiming it sold striped shoes that diluted the Adidas brand. Adidas then sued Target and Kmart the same year —over the exact same thing . Adidas also leveled a suit against Sears for trademark infringement after the department store chain sold various shoes with striped patterns on them. Adidas vs. everyone else It’s not just apparel and shoe companies that Adidas has its eyes on. In 2016, the sportswear giant alleged that the application for trademark registration for the Nike-partnered football team, FC Barcelona, should be denied. According to Adidas, the team’s logo “consists of a square containing seven vertical stripes (the 1st, 3rd, 5th and 7th stripes from the left are blue, and the remaining three stripes are garnet),” which was too similar to its famous three-stripe mark. In 2017, Tesla preemptively changed its logo from three parallel bars to its signature “T” and withdrew its application to trademark the previous design. In spite of that, the shoemaker still filed a suit to prevent the electric car company from registering the striped logo. Tesla maintained that its change to a “T” was a branding decision, and not a response to Adidas. Sign up for the Quartz Daily Brief , our free daily newsletter with the world’s most important and interesting news. More stories from Quartz: Tulsi Gabbard was a surprise breakout in first Democratic debate Young female doctors are at high risk for burnout and “self-care” is not the answer |
Have Insiders Been Selling TransDigm Group Incorporated (NYSE:TDG) Shares This Year?
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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 we'll take a look at whether insiders have been buying or selling shares inTransDigm Group Incorporated(NYSE:TDG).
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. 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 TransDigm Group
Over the last year, we can see that the biggest insider sale was by the Independent Director, Mervin Dunn, for US$3.9m worth of shares, at about US$432 per share. That means that an insider was selling shares at slightly below the current price (US$497). We generally consider it a negative if insiders have been selling on market, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 88.9% of Mervin Dunn's holding.
Over the last year we saw more insider selling of TransDigm Group shares, than buying. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying.
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. TransDigm Group insiders own 0.8% of the company, currently worth about US$224m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
The fact that there have been no TransDigm Group insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back at the last year, we don't gain confidence from the TransDigm Group insiders selling. Therefore, you should should definitely take a look at thisFREEreport showing analyst forecasts for TransDigm Group.
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. |
EU rules out reopening Brexit deal whoever replaces May
BRUSSELS (AP) — The European Union insisted Friday that it will not reopen the Brexit withdrawal agreement with the U.K. government whoever succeeds Theresa May as British prime minister. Jean-Claude Juncker, the president of the EU's executive Commission, said the bloc's leaders were unanimous in the view that the Brexit deal, which has been rejected three times by the British parliament, should not be reopened. "We repeated unanimously that there will be no renegotiating of the withdrawal agreement," Juncker said in Brussels after a meeting of EU leaders excluding May. He said the 27 leaders rebuffed any call from May's successor next month to restart the Brexit negotiations over the withdrawal agreement that deals with citizens' rights, the Irish border and how much money Britain owes the EU. Donald Tusk, who is the president of the European Council and chairs meetings of EU leaders, said there could be tweaks to the political declaration that accompanies the legally watertight withdrawal agreement. The declaration is vaguer but deals with a range of other matters including the outlines of a future trade relationship between the EU and Britain. Britain was originally set to leave the EU on March 29 but because of the British Parliament's failure to back the deal that May agreed with the EU, it has been granted an extension until Oct. 31. Given that so much time has elapsed with little progress, it is likely that Brexit will have to be delayed further. However, some EU leaders said any new extension should only be granted to hold general elections in Britain or a new Brexit referendum. "It's not possible (that) because you change the leader in the U.K. that we need to postpone decisions," said Luxembourg Prime Minister Xavier Bettel. Worries of a "no-deal" Brexit have swelled during the race to succeed May. Boris Johnson, the favorite to prevail in the election of Conservative Party members next month, has indicated that he's prepared to go ahead with a "no-deal" Brexit. Story continues Most economists think a sharp rupture with the EU, which accounts for around 50% of Britain's trade, will lead to a deep recession. On Thursday, British Treasury chief Philip Hammond said a "no-deal" Brexit would damage the British economy and ultimately risk the breakup of the U.K., a reference to tensions in Scotland and Northern Ireland, both of which voted to stay inside of the EU. The head of the Bank of England on Friday dismissed suggestions from Johnson that tariffs on trade with the EU can be avoided even if the country leaves the bloc without a withdrawal agreement. Johnson has said Britain can rely on a provision in international trade rules to make sure trade relations remain unchanged. Carney told the BBC that was not possible if there was no deal between the EU and Britain. He said the legal provision — in the General Agreement on Tariffs and Trade — "applies if you have an agreement, not if you have decided not to have an agreement or have been unable to come to an agreement." Carney says the U.K. would automatically be hit by tariffs as the Europeans would have to apply the same rules to Britain as every other country outside the tariff-free EU. "If they were to decide not to put in place tariffs, they will also have to lower tariffs with the United States, with the rest of the world," he said. "And the same would hold for us." Carney indicated there's only so much firms can do to offset the impact of tariffs. Three quarters of firms, he said, have done as much as they can, which in some cases may not be much. Firms built up stocks in the run-up to the initial Brexit deadline of March 29 to be able to continue to operate in case of a "no-deal" Brexit, but that only covers a few weeks, Carney said. Businesses are far more dependent on what the government can do to keep ports open and trade flowing. "No deal means no deal. It means a substantial change in the trading relationship with the European Union," he said. "That may be the choice the country takes but it's a choice that should be taken with absolute clarity in terms of what that means." ___ Pylas reported from London. Danica Kirka in London and Lorne Cook in Brussels contributed to this report. ___ Follow AP's full coverage of Brexit at https://www.apnews.com/Brexit |
Have Insiders Been Selling TransDigm Group Incorporated (NYSE:TDG) Shares This Year?
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We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares inTransDigm Group Incorporated(NYSE:TDG).
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
See our latest analysis for TransDigm Group
The Independent Director, Mervin Dunn, made the biggest insider sale in the last 12 months. That single transaction was for US$3.9m worth of shares at a price of US$432 each. That means that an insider was selling shares at slightly below the current price (US$497). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 88.9% of Mervin Dunn's stake.
All up, insiders sold more shares in TransDigm Group than they bought, over the last year. 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!
I will like TransDigm Group better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that TransDigm Group insiders own 0.8% of the company, worth about US$224m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
There haven't been any insider transactions in the last three months -- that doesn't mean much. While we feel good about high insider ownership of TransDigm Group, we can't say the same about the selling of shares. 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.
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. |
Do You Know What Amtech Systems, Inc.'s (NASDAQ:ASYS) P/E Ratio Means?
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The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). We'll apply a basic P/E ratio analysis to Amtech Systems, Inc.'s (NASDAQ:ASYS), to help you decide if the stock is worth further research. Looking at earnings over the last twelve months,Amtech Systems has a P/E ratio of 22.77. That is equivalent to an earnings yield of about 4.4%.
Check out our latest analysis for Amtech Systems
Theformula for P/Eis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for Amtech Systems:
P/E of 22.77 = $5.96 ÷ $0.26 (Based on the year to March 2019.)
The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. 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. Then, a lower P/E should attract more buyers, pushing the share price up.
Amtech Systems's earnings per share fell by 72% in the last twelve months.
The P/E ratio essentially measures market expectations of a company. You can see in the image below that the average P/E (22.8) for companies in the semiconductor industry is roughly the same as Amtech Systems's P/E.
Amtech Systems's P/E tells us that market participants think its prospects are roughly in line with its industry. If the company has better than average prospects, then the market might be underestimating it. I inform my view byby checking management tenure and remuneration, among other things.
It's important to note that the P/E ratio considers the market capitalization, not the enterprise value. Thus, the metric does not reflect cash or debt held by the company. 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.
Spending on growth might be good or bad a few years later, but the point is that the P/E ratio does not account for the option (or lack thereof).
With net cash of US$42m, Amtech Systems has a very strong balance sheet, which may be important for its business. Having said that, at 50% of its market capitalization the cash hoard would contribute towards a higher P/E ratio.
Amtech Systems has a P/E of 22.8. That's higher than the average in the US market, which is 18. The recent drop in earnings per share would make some investors cautious, but the relatively strong balance sheet will allow the company time to invest in growth. Clearly, the high P/E indicates shareholders think it will!
When the market is wrong about a stock, it gives savvy investors an opportunity. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' So thisfreereport on the analyst consensus forecastscould help you make amaster moveon this stock.
Of courseyou might be able to find a better stock than Amtech Systems. 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. |
Global money-laundering watchdog launches crackdown on cryptocurrencies
By John O'Donnell and Tom Wilson
FRANKFURT/LONDON (Reuters) - Cryptocurrency firms will be subjected to rules to prevent the abuse of digital coins such as bitcoin for money laundering, a global watchdog said on Friday, the first worldwide regulatory attempt to constrain the rapidly growing sector.
Financial Action Task Force (FATF), set up 30 years ago to tackle money laundering, told countries to tighten oversight of cryptocurrency exchanges to stop digital coins being used to launder cash.
The move by FATF, which groups countries from the United States to China and bodies such as the European Commission, reflects growing concern among international law enforcement agencies that cryptocurrencies are being used to launder the proceeds of crime.
Countries will be compelled to register and supervise cryptocurrency-related firms such as exchanges and custodians, which will have to carry out detailed checks on customers and report suspicious transactions, FATF said in a statement.
"This will enable the emerging FinTech sector to stay one-step ahead of rogue regimes and sympathizers of illicit causes searching for avenues to raise and transfer funds without detection," U.S. Treasury Secretary Steven Mnuchin told a FATF meeting in Florida, according to remarks posted on the U.S Treasury website.
Simon Riondet, head of financial intelligence at Europol, the European police agency that coordinates cross-border investigations, told Reuters he saw a growing use of cryptocurrencies in laundering criminal money.
"This is a risk we all face worldwide," FATF President Marshall Billingslea told Reuters. "Nations need to move forward rapidly. This is an urgent issue."
Europol broke up a Spanish drugs cartel this year that laundered cash using two crypto ATMs, machines that issue cryptocurrencies for cash.
Riondet said cryptocurrencies were used to transfer money across borders, as well as to break down large criminal money transfers into smaller amounts that are harder to detect.
"We also have some investigation on the dark web in which the payments are made in cryptocurrencies, sometimes in bitcoin, and they are switching it to more anonymized cryptocurrencies," he said.
SEEKING OVERSIGHT
The move by the FATF comes amid heightened concern about a sector, championed by some as a means of shaking off government controls, but seen by central banks as a potential threat to their status as guarantors of the financial system.
There is little available data on the scale of money laundering using cryptocurrencies although, given the relatively small scale of the market, it is likely to be a fraction of money laundering using cash.
This week, Facebook prompted criticism from regulators and policymakers when it unveiled plans for a cryptocurrency it dubbed Libra.
Three European central bankers have claimed oversight over Libra to ensure it would not jeopardize the financial system or be used to launder money. [L8N23S1ZH]
Germany's central bank chief, Jens Weidmann, said virtual tokens pegged to official currencies, known as stablecoins, could undermine banks if they become widely used.
The FATF initiative marks the first attempt to establish a global approach in regulating the $300 billion coin trading market, supplementing a current patchwork ranging from Japan's move to license exchanges to an outright ban in China.
Global Digital Finance, an industry body that represents crypto-related companies worldwide, said it welcomed the FATF rules.
But Teana Baker-Taylor, its executive director, said FATF recommendations to compel firms to include in cryptocurrency transactions details of senders and beneficiaries could be difficult to meet.
"We are obviously going to comply," Baker-Taylor said. "The challenge is asking for something that there is the technical facility to do."
The rules could spark consolidation in the cryptocurrency sector because of the high cost of implementing anti-money laundering checks for smaller firms, said Megan Gordon, a partner at Clifford Chance law firm.
(Reporting by John O'Donnell and Tom Wilson; Editing by David Holmes and Louise Heavens) |
3 Big Stock Charts for Friday: Verizon, General Electric and Ventas
Following through on the gains made earlier this week, theS&P 500rallied another 0.95% on Thursday, just touching record-highs as a result. Although impressive, the rally is also fragile and may actually be setting up a sizeable wave of profit-taking.
Source:Allan Ajifo via Wikimedia (Modified)
Whatever it was, pot stocks set the tone.Canopy Growth(NYSE:CGC) was up more than 2% on news that shareholders hadapproved its impending acquisition of Acreage, whileTilray(NASDAQ:TLRY) popped more than 9% on some renewed industry-wide sentiment.
PG&E(NYSE:PCG) was the day’s biggest major-name winner though, up nearly 15% after California Governor Gavin Newsom suggested the state’s governmenthelp facilitate a wayfor the utility company to pay for the fire damage it contributed to last year. The organization continues to find itself in a more manageable position.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
• 6 Stocks Ready to Bounce on a Trade Deal
None are names that are great trading prospects as we head into the final day of the workweek, however. Instead, take a look at the stock charts ofVerizon Communications(NYSE:VZ),General Electric(NYSE:GE) andVentas(NYSE:VTR) for trading possibilities.
It was only a few days ago Ventas wasknocking on the door of a big breakout move. The only line left to cross was a modestly important technical ceiling right around $65. And, given the momentum already in place by that time, which was backed by a long-term support line, the odds of that move taking shape were high.
That breakout move did end up taking shape. But, consider this a cancellation of that call, and even a reversal of it. VTR stock is up 10% since that last look, and had been up as much as 13%. But, yesterday’s high and a couple of other clues all suggest the effort has run its course and is now out of gas.
Click to Enlarge
• While trends need volume to remain in place, volume surges like the one Ventas dished out on Thursday often indicate a final flushout of would-be buyers. The way VTR peeled back from the intraday high also says the profit-takers are already starting to take over.
• Zooming out to the weekly chart we see two immediate red flags. One of them is the way yesterday’s peak aligns with all the major highs going back to 2013. The other is the fact that the RSI indicator has just entered overbought territory.
For months now, General Electric have beenworking on a recovery move, but it always seems to be up-ended right before it solidifies. Those months have been spent in vain, however. The bulls and bears have inadvertently drawn key lines in the sand that, if crossed, would likely flag a longer-lived move rather than more choppiness.
The buyers finally — albeit quietly — pushed GE stock over what had become a well-established ceiling. Better yet, it happened with solid support behind the move, and has brought another bullish trigger within reach.
• 7 S&P 500 Stocks to Buy With Little Debt and Lots of Profits
Click to Enlarge
• The ceiling that was hurdled on Thursday is the $10.49 level, marked in yellow on both stock charts. GE shares had been unable to move above that line despite three attempts since March. The fourth one yesterday worked.
• Just as impressive is the buying volume that’s taken shape with the recent advance. Tuesday’s and Thursday’s gains were both made on above average volume, hinting there may be a lot of would-be buyers waiting in the wings for a victory like yesterday’s.
• It’s not happened yet, but the purple 50-day moving average line is about to cross above the white 200-day moving average line. This so-called golden cross is viewed as a buying trigger for many investors, and could accelerate the effort.
Finally, with nothing more than a passing glance it would look as if Verizon Communications shares are just going through a patch of volatility that can be expected as part of a longer-term uptrend. And, perhaps that’s all this is.
A lengthier and more critical look, however, also shows that distinct possibility that VZ shares are slowly winding their way into a bit of technical trouble. Although it will still take a few days to know for sure, and any problems wouldn’t be terribly devastating, the threat is significant enough to start watching out for now.
Click to Enlarge
• The looming red flag is the potential death cross, where the purple 50-day moving average falls below the white 200-day moving average line, spurring algorithm-based selling as well as spooking casual chart watchers.
• At the same time, note there has already been a string of lower highs since November’s peak, and the weekly chart’s MACD lines continue to sink. The momentum is already downward.
• For better or worse, should Verizon shares stumble, the daily chart shows a likely support area around $52.50, while the weekly chart’s big floor is the rising support line that has tagged all the major lows going back to mid-2017.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site,jamesbrumley.com, orfollow him on Twitter, at @jbrumley.
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Advertisers Face Up to Scandal Risk But Can't Ditch Tech Giants
(Bloomberg) -- The advertising industry’s annual gathering on the French Riviera has become a recurring cycle of contrition from technology giants and admonishment from the Mad Men. In 2017, it was YouTube apologizing for ads appearing next to jihadist terror videos. In 2018 came Facebook Inc.’s mea culpa for a data privacy scandal. This year, Facebook regretted live-streaming a mass shooting in New Zealand and YouTube battles the spread of hate speech.
All the while, the marketing money continues to flow. Facebook and Google’s advertising sales grew 38% and 22%, respectively, in 2018, and both dominated the beach front in Cannes again this year with showy largess. Google served up grape smoothies, gingerbread ice cream and live tunes from synth-pop duo Pet Shop Boys and electro outfit Justice. Facebook held panels with Grammy-winning singer-songwriter John Legend and style icon Jenna Lyons, while Chief Operating Officer Sheryl Sandberg hosted some of the biggest advertisers by the shore.
But the recurring scandals hitting the tech giants have created a dilemma for chief marketing officers. Do they take a principled stand and move their ad dollars elsewhere, sticking to more traditional media like TV and newspapers but missing out on the global reach and hyper-specific targeting of consumers that the platforms afford? Or do they accept the risk of being drawn into future hate speech and toxic content controversies, if it means they can keep growing sales? The consensus in Cannes this year from advertisers: let’s ride it out.
“Every once in a while there’s going to be a screw-up and unfortunately the screw-ups are pretty big,’’ said Michael Roth, chairman and chief executive officer of the Interpublic Group of Cos., the world’s fourth-largest advertising company by revenue. “The thing is, it still works.”
Unlike the past, when adverts were confined to spaces curated by professionals, such as TV commercial breaks, radio programs or billboards, chief marketing officers are opting to get comfortable with the daily risks of placing their products alongside non-vetted, user-generated content.
In Cannes, Facebook and Google both stressed their latest efforts to keep their platforms safe, from investing in machine learning that spots offending material before it’s uploaded to hiring more humans to oversee posts. But each conceded they’ll never keep all the objectionable material at bay. Sandberg said Facebook had a ‘Herculean’ task on its hands and that generally, all technologies can be used for both bad and good.
“Bad actors are smart and find ways to circumvent our policies and brush right against where the new line has been drawn,’’ said Cecile Frot-Coutaz, YouTube’s head of Europe, Middle East and Africa. “It’s that delicate balance of keeping the openness but protecting our users and advertisers.”
YouTube’s latest controversy is how it keeps its service safe for children, after predators were found to be leaving pedophile comments on videos featuring kids. YouTube has previously come under fire for allowing fake or misleading content to flourish on its platform, and not removing videos with homophobic and racist remarks.
Pressure isn’t just building from marketers, but also from other platforms touting their wares in Cannes to lure spending. Amazon.com Inc. hosted meetings in a top-floor suite at the five-star Carlton hotel with spectacular views over the Mediterranean, showing brands how they can advertise in Amazon search results and grow sales through its Alexa smart speaker. Snap Inc. entertained guests in a contemporary art museum, handing out rainbow-colored flip-flops. Music streamer Spotify Technology SA and Walt Disney Co.’s Hulu brought in Grammy-nominee Ciara for a VIP party at a hillside villa.
Advertisers’ latest initiative to tackle the issue of safety online is a so-called ‘Global Alliance for Responsible Media’ that includes brands, ad agencies and platforms. Yet pushed at the partnership’s launch on specific measures they’d like to see, marketers from consumer-goods giant Unilever, confectionery manufacturer Mars Inc. and drinks-maker Diageo Plc weren’t forthcoming.
Yannick Bollore, CEO of ad giant Havas, called it “unthinkable” not to advertise on social platforms, because that’s where consumers spend most of their time.
“But we need to guarantee to our clients that we can find a positive environment,” he said in an interview in Cannes.
His counterpart at WPP, Mark Read, went furthest in publicly suggesting changes that might be needed, mooting moderation of content in certain categories or limiting what can be posted from new accounts.
“We need to think about the design of the platforms,” Read said, whose London-based advertising group spends billions of dollars of client money with Facebook and Google. “Clearly they haven’t done enough.”
Marketers are making investment decisions at a time when the average tenure of a chief marketing officer, or CMO, is a mere 43 months, or less than half of that of a CEO, according to research by headhunters Spencer Stuart. Their short shelf-life shows the scrutiny they’re under from their boards, said Michael Kassan, founder of MediaLink, which advises the world’s most influential marketers and media companies.
“The easiest way to talk is with your cheque book,” Kassan said. “But the pressure on a CMO to deliver results is intense.”
And even if marketers wanted to force change through financial pressure, it’s not clear it would work. The tech giants have built a base of millions of small- and medium-sized businesses that advertise using their tools, which limits the leverage of any particular brand, said Pedro Earp, chief marketing officer of beer-maker Anheuser-Busch InBev NV.
“Some of these issues are complicated and aren’t solvable like that,” Earp said, who sits on Facebook’s client council which consults on how to improve the platform for advertisers. “It’s been a constructive dialog.”
But so long as Facebook and Google continue to offer marketers an unparalleled ability to reach consumers and ease of use, they’ll keep dominating the industry, said Wenda Harris Millard, vice president at MediaLink and based in London.
“For advertisers it’s kind of like, ‘Do I press the F button or the G button?”’ she said. “It’s hard to stop all this.”
To contact the reporters on this story: Joe Mayes in London at jmayes9@bloomberg.net;Angelina Rascouet in Paris at arascouet1@bloomberg.net
To contact the editors responsible for this story: Rebecca Penty at rpenty@bloomberg.net, Benedikt Kammel
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
Do You Know What Amtech Systems, Inc.'s (NASDAQ:ASYS) P/E Ratio Means?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). We'll show how you can use Amtech Systems, Inc.'s (NASDAQ:ASYS) P/E ratio to inform your assessment of the investment opportunity.What is Amtech Systems's P/E ratio?Well, based on the last twelve months it is 22.77. That means that at current prices, buyers pay $22.77 for every $1 in trailing yearly profits.
Check out our latest analysis for Amtech Systems
Theformula for P/Eis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for Amtech Systems:
P/E of 22.77 = $5.96 ÷ $0.26 (Based on the trailing twelve months to March 2019.)
A higher P/E ratio means that investors are payinga higher pricefor each $1 of company earnings. That isn't necessarily good or bad, but a high P/E implies relatively high expectations of what a company can achieve in the future.
Generally speaking the rate of earnings growth has a profound impact on a company's P/E multiple. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. That means unless the share price increases, the P/E will reduce in a few years. And as that P/E ratio drops, the company will look cheap, unless its share price increases.
Amtech Systems's earnings per share fell by 72% in the last twelve months.
We can get an indication of market expectations by looking at the P/E ratio. You can see in the image below that the average P/E (22.8) for companies in the semiconductor industry is roughly the same as Amtech Systems's P/E.
That indicates that the market expects Amtech Systems will perform roughly in line with other companies in its industry. So if Amtech Systems actually outperforms its peers going forward, that should be a positive for the share price. I inform my view byby checking management tenure and remuneration, among other things.
Don't forget that the P/E ratio considers market capitalization. Thus, the metric does not reflect cash or debt held by the company. Theoretically, a business can improve its earnings (and produce a lower P/E in the future) by investing in growth. That means taking on debt (or spending its cash).
Spending on growth might be good or bad a few years later, but the point is that the P/E ratio does not account for the option (or lack thereof).
With net cash of US$42m, Amtech Systems has a very strong balance sheet, which may be important for its business. Having said that, at 50% of its market capitalization the cash hoard would contribute towards a higher P/E ratio.
Amtech Systems's P/E is 22.8 which is above average (18) in the US market. The recent drop in earnings per share would make some investors cautious, but the net cash position means the company has time to improve: and the high P/E suggests the market thinks it will.
Investors should be looking to buy stocks that the market is wrong about. If the reality for a company is better than it expects, you can make money by buying and holding for the long term. So thisfreevisualization of the analyst consensus on future earningscould help you make theright decisionabout whether to buy, sell, or hold.
You might be able to find a better buy than Amtech Systems. If you want a selection of possible winners, check out thisfreelist of interesting companies that trade on a P/E below 20 (but have proven they can grow earnings).
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
What Factors Make Car Insurance Premiums Really Expensive?
LOS ANGELES, CA / ACCESSWIRE / June 21, 2019 /Compare-autoinsurance.org has launched a new blog post that explains the main factors that cause car insurance rates to skyrocket.
For more info and free car insurance quotes online, visithttps://compare-autoinsurance.org/factors-that-can-make-car-insurance-expensive/
When determining rates, insurance companies thoroughly analyze the client's vehicles. Besides engine performance and safety rating, there are other elements that will influence the costs. These are:
• The exact type of car. Driving an expensive car like a sports car, muscle car, or a top of the line limousine will make its owner pay more expensive premiums. Insurance companies take a higher financial risk when they insure an expensive car and they try to limit the potential losses caused by a claim.
• Car's age. New cars are more expensive to insure, no matter what type they are. Usually, the value of a car can depreciate with up to 60% from the moment it leaves the dealership. Purchasing a slightly used car will help drivers get better rates.
• Driving record. A clean driving record will help a driver get better rates. On the other hand, a driving record filled with unpaid speeding tickets, at-fault accidents, and even DUI accidents, will make rates really pricy, and in some cases, the insurance company can cancel coverage.
• Distance from the workplace. Insurance companies ask drivers if they use the vehicle to reach their workplace and how far is the workplace from home. Expect to pay more if the workplace is far from home. Insurers consider that persons that work far from home, will spend plenty of time on the road while being tired, and thus the risk of causing an accident significantly increases.
For additional info, money-saving tips and free car insurance quotes, visithttps://compare-autoinsurance.org/
Compare-autoinsurance.orgis an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc.
"Car's age, model and value will have a deep impact on your insurance rates. But they are not the only factors that make car insurance expensive", said Russell Rabichev, Marketing Director of Internet Marketing Company.
Contact:cgurgu@internetmarketingcompany.biz
SOURCE:Internet Marketing Company
View source version on accesswire.com:https://www.accesswire.com/549437/What-Factors-Make-Car-Insurance-Premiums-Really-Expensive |
Stocks subdued, oil keeps rising as Mideast tensions grow
BANGKOK (AP) — Global stock markets were subdued Friday as investors became more cautious after the S&P 500 hit a record close and amid heightened tensions in the Persian Gulf between the U.S. and Iran. The price of oil continued to rise.
Major airlines on Friday began rerouting flights to avoid areas around the Strait of Hormuz following Iran's shooting down of a U.S. military surveillance drone there on Thursday. American aviation officials warned that commercial airliners could be mistakenly attacked.
The U.S. said it made plans for limited strikes on Iran in response, but then called them off.
Australia's Qantas, British Airways, Dutch carrier KLM and Germany's Lufthansa said soon afterward that they will avoid the region.
Germany's DAX was flat at 12,353 after early gains were erased. The CAC 40 in Paris climbed 0.1% to 5,539. Britain's FTSE 100 rose 0.1% to 7,435.
U.S. shares looked set for a tepid open with the future contract for the Dow Jones Industrial Average down close to 0.2% at 26,733. The S&P 500 future lost 0.2 percent to 2,953, after a record high close Thursday.
Shares retreated in Asia as weak manufacturing data from Japan helped dampen investor sentiment.
A preliminary survey of Japanese manufacturers, the IHS Markit flash purchasing managers' index, showed indicators dropping, with new orders at the lowest level in three years.
The report noted "a soft patch for automotive demand and subdued client confidence in the wake of U.S.-China trade frictions."
Japan's Nikkei 225 index lost 1.0% to 21,258.64 and the Hang Seng in Hong Kong dropped 0.5% to 28,476.75 as protesters once again took to the streets. South Korea's Kospi declined 0.3% to 2,125.62 and in Australia, the S&P ASX 200 declined 0.6% to 6,650.80. India's Sensex lost 0.7%.
The Shanghai Composite index added 0.5% to 3,001.98 as investors awaited signs that U.S. President Donald Trump and his Chinese counterpart, Xi Jinping, might make progress in a meeting planned for next week at the Osaka, Japan, summit of the leaders of the Group of 20 major economies. Shares edged higher in Taiwan and Thailand but fell in Singapore.
ENERGY: The price of U.S. crude oil rose again on Friday after jumping 5.4% overnight on fears that escalating tensions between the U.S. and Iran could hinder oil shipments through the Strait of Hormuz. Benchmark U.S. crude oil picked up 39 cents to $57.44 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude oil, the international standard, gained 87 cents to $65.32 per barrel. It rose 4.3% Thursday to close at $64.45 a barrel.
CURRENCIES: The dollar rose to 107.54 Japanese yen from 107.28 yen on Thursday. The euro rose to $1.1314 from $1.1295.
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Matt Ott in Madrid contributed to this report. |
Does Texas Instruments Incorporated's (NASDAQ:TXN) Recent Track Record Look Strong?
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After reading Texas Instruments Incorporated's (NASDAQ:TXN) most recent earnings announcement (31 March 2019), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. As a long term investor, I pay close attention to earnings trend, rather than the figures published at one point in time. I also compare against an industry benchmark to check whether Texas Instruments's performance has been impacted by industry movements. In this article I briefly touch on my key findings.
View our latest analysis for Texas Instruments
TXN's trailing twelve-month earnings (from 31 March 2019) of US$5.4b has jumped 34% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 16%, indicating the rate at which TXN is growing has accelerated. What's enabled this growth? Let's see whether it is solely owing to industry tailwinds, or if Texas Instruments has experienced some company-specific growth.
In terms of returns from investment, Texas Instruments has invested its equity funds well leading to a 64% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 32% exceeds the US Semiconductor industry of 8.0%, indicating Texas Instruments has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Texas Instruments’s debt level, has increased over the past 3 years from 32% to 42%.
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Texas Instruments gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Texas Instruments to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for TXN’s future growth? Take a look at ourfree research report of analyst consensusfor TXN’s outlook.
2. Financial Health: Are TXN’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
How Debt Consolidation Could Lead to Big Financial Trouble
Consolidating debt can get you out of financial trouble -- but it can also land you in a tough spot.
Image source: Getty Images.
Consolidating debtis the process of borrowing more money topay off existing debt. Many people use debt consolidation as a tool to help repay what they owe and to simplify the repayment process.
Debt consolidation can make paying back loans simpler because you can pay off multiple existing creditors with a single new loan -- leaving you with just one monthly payment instead of multiple payments to different lenders. It could also help you reduce the cost of repayment if you can get a better rate on your new loan than you’re currently paying.
While there are clear pros to debt consolidation, it could also lead to very serious financial trouble if you aren’t prepared to be responsible with your spending and to pay off the consolidation loan on time.
Will debt consolidation cause financial trouble for you? Here are some of the different ways consolidating your debt could be very damaging to your financial future.
Consolidation can help you pay back your debt, but the consolidation process itself doesn’t bring you any closer to becoming debt free. Instead, you’re just moving your debt to a new creditor -- and, in the process, you’re probably freeing up lines of credit.
If you had a couple maxed outcredit cardsand you pay off those cards using a debt consolidation loan, you now have the chance to charge up the credit cards again. If you don’t have your spending under control and an emergency fund to cover unexpected expenses that arise, there’s a very good chance this is exactly what will happen.
If you have your new consolidation loan and you run up a balance on any of the credit cards you still have open, you’ll now owe more money than you started with -- sometimes much more. You could end up so far in over your head in debt that paying everything back becomes a virtual impossibility.
The good news is, you can avoid this mistake by making sure you have a very detailed budget, that you’re living within your means, and that you have money set aside for unexpected expensesbeforeyou consolidate your debt.
The ideal goal of debt consolidation is to reduce the total cost of paying back your debt. By lowering your interest rate, you can make sure more of your payment goes to principal so it takes less total money to pay back what you owe.
Unfortunately, there are times when debt consolidation could end up being more expensive. Obviously, this can happen if you end up consolidating debt at a higher interest rate than you’re currently paying -- so this should definitely be avoided.
You could also end up paying more than you otherwise would have if you stretch out the time it takes to pay off your debt. If you consolidate two loans that you had two years left to pay on into a new loan that has a five-year repayment timeline, you’ll be paying interest for three extra years. Even if you significantly lowered your interest rate and your monthly payment went down a lot, you’d end up paying more money in the long run if you took this approach.
Consolidating debt using acredit card balance transferalso means you run the risk of ending up paying more. Credit card balance transfer offers usually have a 0% promotional rate only for a limited period of time. If you don’t pay off the consolidated debt in full before that 0% rate expires, you could be stuck paying the balance at the card’s standard high interest rate. This could be a higher rate than the debt you consolidated, depending on what each card issuer charges.
To avoid this, you’ll need to focus on the total cost of your consolidation loan, not just the monthly payment. If you take a credit card balance transfer, you’ll want to be 100% sure you can pay it off before the 0% rate expires.
There are lots of different ways to consolidate debt, includingpersonal loansand balance transfers. But two common approaches involve 401(k) loans andhome equity loans. If you consolidate debt with either of these types of loans, you’re taking a really big risk.
Consolidating with a 401(k) loan may seem attractive since you pay interest to yourself and borrow from your own retirement account. But if you lose your job or quit and you don’t pay back the borrowed amount by tax day for the year you took the 401(k) loan, you could end up getting hit with a 10% penalty for early withdrawal if you’re below retirement age. You’d also be taxed on the money as a distribution, which would increase your IRS bill.
A home equity loan may also seem like a good way to consolidate debt because the interest rate on home equity loans is typically well below the interest rate on personal loans or credit cards. Unfortunately, you’re literally putting your home on the line and you’re gambling the house that you’ll be able to pay back the debt. If you don’t repay what you owe, you could be foreclosed on, which would be both financially and personally devastating.
These risks can be avoided by opting for a personal loan to consolidate debt, even if the interest rate is a little higher and you have to pay interest to someone other than yourself.
Consolidation can definitely help you get out of debt, so don’t be afraid to use it as a tool. Just make sure you’re ready to pay back what you owe responsibly, that the consolidation loan is actually more affordable than keeping your current debt, and that you can live within your means before you take out a consolidation loan. If you do these things, you should be able to consolidate the right way and can hopefully make debt payoff easier, faster, and cheaper than it otherwise would be.
The Motley Fool owns and recommends MasterCard and Visa, and recommends American Express. We’re firm believers in the Golden Rule. If we wouldn’t recommend an offer to a close family member, we wouldn’t recommend it on The Ascent either. Our number one goal is helping people find the best offers to improve their finances. That is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team. |
Kristin Cavallari talks 'The Hills' reboot
Kristin Cavallari is one of the few cast members from the original version of MTV reality show The Hills who won't be part of The Hills: New Beginnings , which premieres June 24. She's the star of her own reality show over on E!, Very Cavallari , and she says her contract will keep her from making even a cameo appearance. But she still has an idea of what's going on, thanks to her connections. Its gonna be good!" Cavallari tells Yahoo Entertainment. "I saw [cast member] Audrina [Patridge], she was kinda spilling the tea, telling me a little bit, and its gonna be really good." Cavallari keeps in touch with cast member Heidi Montag , too. "I talk to them quite a bit, so, yeah, Im excited to watch them again on TV," Cavallari says. "I hear Heidi is being sort of tame this time. I havent heard too much about [new cast member] Mischa Barton . It does sound like Audrina and Mischa have sort of formed some sort of alliance, which is always good. It's always good to have someone in your corner." Kristin Cavallari, middle, celebrates the final episode of "The Hills" with Audrina Patridge and Lauren Conrad at MTV's finale event on July 13, 2010, at the Roosevelt Hotel in Hollywood, California. (Photo by Jeff Kravitz/FilmMagic) Cavallari also weighed in on the ending of the original show , in which it was revealed that she and cast member Brody Jenner were actually on a Hollywood set, a wink at speculation that the show wasn't entirely real. I knew that The Hills was going to end the way that it did only in the last week of shooting," Cavallari explains. "I remember they had us doing the end on the real street in Hollywood and then we went to the Paramount lot, and that's when we realized, like, 'Oh, wow, this is awesome.' I thought it was such a cool ending. She adds: I know it was sort of bittersweet and some people liked it and some people didn't, but because everyone thought that The Hills was fake for so many years, I just thought, 'What better way to end the show than just kind of, you know what do they say? Taking the piss? There's no other way you could have ended it. I thought it was great." Read more on Yahoo Entertainment: Jessica Simpson proudly shares photo of her ankles following the birth of daughter Birdie Maren Morris says she lost 5,000 social media followers after sharing photo of Parkland shooting survivor: 'Not many country artists speak up' Julia Louis-Dreyfus experienced 'true fear' after breast cancer diagnosis Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle's newsletter. |
Fed Interest Rate Cut on the Horizon: What it Means for Banks
The Federal Reserve seems to be poised for the first interest rate cut since 2008, when the financial markets and the U.S. economy collapsed. This is a stark change in position for the central bank, which raised rates four times last year and maintained a “patient” stance earlier this year.The Fed chair, Jerome Powell, in the news conference at the end of two day FOMC meeting earlier this week, said that a clear picture on whether the economy requires easing monetarypolicy is expected “in the very near term.’’Markets seem to have already factored in that the Fed will cut rates at its July meeting. Per the CME Group FedWatch tool, the odds of a 25 basis point cut in interest rates in July are now almost 72%, a jump from nearly 15% a month ago.Moreover, a survey of the 17 Fed officials reflect that nearly 50% expect at least one rate cut this year, while seven project two cuts.This time, the Fed officials kept the key interest rate in the 2.25-2.50% range, while stating that “uncertainties about this outlook have increased. In light of these uncertainties and muted inflation pressures, the Committee will closely monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion.”Trade WorriesOfficials acknowledged that the country’s trade policy is creating significant uncertainties, specially the worsening trade war with China. Since the Fed’s last policy meeting in May, trade war concerns have heightened as new tariffs on $200 billion worth of Chinese imports were introduced and trade talks collapsed. Though efforts are on to end the impasse, it is expected to take time.Further, the Trump administration has plans to impose tariffs on Mexico, and has given Japan and Europe about six months to reach a trade agreement with the United States or face tariffs in the auto sector. All these factors have increased uncertainty among companies, leading to slowdown in factory production and moderating job growth.Additionally, in its post-meeting statement, Fed officials indicated “that economic activity is rising at a moderate” pace, a downgrade from a “solid” rate that the Fed used at its last meeting statement. Nevertheless, the officials still expect economy to grow at the rate of 2.1% in 2019 and 2% in 2020.Inflation ConcernMuted inflation is another cause of concern for the Fed. The central bank has failed to hit its 2% inflation target for quite a long time and the expectation of rise in inflation has fallen recently. Even the Fed officials have lowered the target to 1.5% from 1.8% in March.This is the second time that the inflation target has been lowered. Earlier in March, it was lowered from 1.9% announced in December 2018.In the post-meeting statement, Fed officials stated “On a 12-month basis, overall inflation and inflation for items other than food and energy are running below 2 percent. Market-based measures of inflation compensation have declined; survey-based measures of longer-term inflation expectations are little changed.”Impact on BanksBanks thrive in therising rate environment. So, cut in interest rates will place banks in the most disadvantageous position.Banks seek to borrow money at short-term rates and lend at long-term rates. If interest rates decline, they will earn less on lending. This would compress net interest margins and hurt bottom-line growth.Hence, almost all the banks, big and small, including JPMorgan JPM, Bank of America BAC, BB&T Corp. BBT and Zions Bancorporation ZION will be adversely impacted by lower interest rates.Also, yield curve inversion, (which has already occurred a few times over the past six months) seen as a warning of an impending economic slowdown or even recession, will hurt banks’ financials.Banks earn net interest income (NII) by charging borrowers higher long-term interest rates while doling out smaller interest rates to depositors. As the yield curve inverts and the spreads between short-and long-term rates narrows, growth in banks’ NII is expected to get hampered.Another concern, though not directly related to the Fed rate cut, is slowdown in the global economy. This will hurt loan growth as demand is likely to remain muted.Banks’ financials, which depend on the health of the economy, will be hurt. So, banks’ earnings, which have remained at record levels amid improving economy and higher interest rates, are likely to be affected.While big banks might be able to overcome this challenging environment given their global operations and diversified revenue streams, smaller domestic banks like Commerce Bancshares, Inc. CBSH, Huntington Bancshares Incorporated HBAN, Zions and Cullen/Frost Bankers, Inc. CFR will likely be more adversely impacted.Nonetheless, cost savings and streamlining efforts, conservative loan policy, technology advancement and focus on improving other revenue sources are expected to support banks’ financials to some extent. Also, these should aid in overcoming the impending downturn.Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportJPMorgan Chase & Co. (JPM) : Free Stock Analysis ReportBank of America Corporation (BAC) : Free Stock Analysis ReportBB&T Corporation (BBT) : Free Stock Analysis ReportCommerce Bancshares, Inc. (CBSH) : Free Stock Analysis ReportHuntington Bancshares Incorporated (HBAN) : Free Stock Analysis ReportCullen/Frost Bankers, Inc. (CFR) : Free Stock Analysis ReportZions Bancorporation (ZION) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Camila Cabello and Shawn Mendes Play Passionate Lovers in Sexy New 'Senorita' Music Video
The summer weather has nothing on the heat in Camila Cabello and Shawn Mendes’ new video, “Señorita.” Days after teasing that another collaboration was on the way , the former Fifth Harmony member , 22, and the Canadian pop star , 20, dropped a sizzling music video for their steamy new duet. In the Dave Meyers-directed clip, Cabello and Mendes play lovers — she a waitress and he, a mysterious motorcycle rider — who can’t seem to quit one another. The two meet in a club and have an instant connection as they cuddle up on the dance floor. That attraction boils over to a motel room, where they share a passionate evening (and morning). “I love it when you call me señorita / I wish I could pretend I didn’t need ya,” Cabello and Mendes sing in the catchy chorus for the tune. “Ooh I should be running / Ooh you keep me coming for ya.” Cabello and Mendes previously worked together on their 2015 hit “I Know What You Did Last Summer,” which appeared on Mendes’ album Handwritten. And though their chemistry onscreen is undeniable, filming those love scenes together wasn’t easy. “ The whole music video was funny because we were both really nervous ,” Cabello admitted on Thursday prior to the video’s release, during a live chat with fans on YouTube. “I had to drink a lot of wine!” Both had been working on the secret project for about nine months, Cabello said, but only recorded the song in April. “Actually it’s been a long time coming,” she explained. “We really felt like it was the right time about two months ago.” Shawn Mendes and Camila Cabello | Monica Schipper/Getty RELATED: Shawn Mendes and Camila Cabello Announce New Collaboration with Steamy Teaser Video Clips The song — billed as a sequel of sorts to “I Know What You Did Last Summer” — was first teased back in December, when Cabello commented “IKWYDLS part 2????” on Mendes’ black-and-white Instagram photo of the two sitting on the floor of a room together, with Cabello holding a guitar. “IKWYDLS part 2!!!!” Mendes replied. She also posted the same photo on her own page with the caption, “Canadian fury + Latin sass.” A few days later, Cabello posted another pic , this time in color, of Mendes braiding her hair in the same room. Then in February, the two met up again at the Grammys, where Cabello opened the show in a medley with Young Thug, Ricky Martin and J. Balvin, and Mendes performed alongside Miley Cyrus . “Seems like yesterday we were just kids singing Ed Sheeran songs in the dressing room, now we’re kids trying not to throw up cause we’re at the Grammys!!!!” Cabello wrote on her post from the night. “I love you forever ❤️.” Story continues RELATED: Beauty of the Day Camila Cabello Admits She Was ‘Cripplingly Shy’ As a Kid: ‘I Missed Out’ Cabello had equally kind things to say about Mendes on Thursday’s YouTube chat. “We’ve known each other for about four years now, and I really love Shawn as a person,” she raved. “He’s always been there for me. I’m lucky I found someone like that early on [when] I started this [career]!” The feeling appears to be mutual. “ She is the most creative, most fun, most empathetic person I know! ” Mendes added in the Q&A. “Working with her is a dream!” View comments |
How Much Are Algonquin Power & Utilities Corp. (TSE:AQN) Insiders Taking Off The Table?
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares inAlgonquin Power & Utilities Corp.(TSE:AQN).
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
View our latest analysis for Algonquin Power & Utilities
Over the last year, we can see that the biggest insider sale was by the Chief Transformation Officer, David Pasieka, for CA$601k worth of shares, at about CA$15.03 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$16.47. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 12.1% of David Pasieka's holding.
Over the last year we saw more insider selling of Algonquin Power & Utilities shares, than buying. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Algonquin Power & Utilities insiders own about CA$67m worth of shares. That equates to 0.8% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by Algonquin Power & Utilities insiders. The modest level of insider ownership is, at least, some comfort. Of course,the future is what matters most. So if you are interested in Algonquin Power & Utilities, you should check out thisfreereport on analyst forecasts for the company.
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. |
Expat Jobs Philippines, a Job Site that Helps Expats Find Work in the Philippines, Launches their New Website
The Website Helps Foreigners to Find Quality Jobs in the Philippines
METRO MANILA, PHILIPPINES / ACCESSWIRE / June 21, 2019 /Expat Jobs Philippines, a user-friendly website that that helps people to find expat jobs in Manila, are pleased to announce the launch of their new site.
To learn more about Expat Jobs Philippines and see which jobs employers are currently hiring for right away, please check outhttps://expatjobsphilippines.com/urgent-hiring/.
As a company spokesperson noted, for people who are looking for jobs in the Philippines for foreigners, Expat Jobs Philippines is a one stop job finding shop. The website is devoted to expat recruitment, and can help connect expats who are looking for work with quality jobs for foreigners in Manila.
"We have created the need to fill the gap to find UK expat jobs in the Philippines as well as jobs for American expats in the Philippines," the spokesperson noted, adding that the website is ready and able to serve the Australian, British and other communities who are looking for the right job opportunities and want to work in Philippines for a foreigner.
"If you have just recently arrived in the Philippines or are considering moving here in the near future, take advantage of this website."
In addition to helping expats to find work, Expat Jobs Philippines offers advice on the steps aspiring workers need to take prior to applying for a job in the region. For instance, it is required by law that people have appropriate working Visas in the Philippines, so they encourage those who wish to find work to consult with their embassy to determine if they can work there.
For expats who need to find a job in the Philippines, the spokesperson said they should definitely bookmark the new website and check back with it often. The founders of Expat Jobs Philippines recently landed a contract that will involve hiring a large number of expats for a number or roles.
"It is expected that there will be at least 4 hiring phases in the coming months. Please do send over your CV or make an application as soon as possible so that you may be processed quickly," the spokesperson noted.
About Expat Jobs Philippines:
Established in 2016, Expat Jobs Philippines is a website dedicated to expat recruitment. They aim to help expats in the Philippines in finding a great job opportunity while staying in the Philippines. For more information, please visithttps://expatjobsphilippines.com/.
Contact:
Katie Gibsoninfo@expatjobsphilippines.com09275781798
SOURCE:Expat Jobs Philippines
View source version on accesswire.com:https://www.accesswire.com/549448/Expat-Jobs-Philippines-a-Job-Site-that-Helps-Expats-Find-Work-in-the-Philippines-Launches-their-New-Website |
Algonquin Power & Utilities Corp. (TSE:AQN) Insiders Have Been Selling
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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 inAlgonquin Power & Utilities Corp.(TSE:AQN).
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
View our latest analysis for Algonquin Power & Utilities
The Chief Transformation Officer, David Pasieka, made the biggest insider sale in the last 12 months. That single transaction was for CA$601k worth of shares at a price of CA$15.03 each. That means that an insider was selling shares at slightly below the current price (CA$16.47). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 12.1% of David Pasieka's holding.
In total, Algonquin Power & Utilities insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.8% of Algonquin Power & Utilities shares, worth about CA$67m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
It doesn't really mean much that no insider has traded Algonquin Power & Utilities shares in the last quarter. Still, the insider transactions at Algonquin Power & Utilities in the last 12 months are not very heartening. But it's good to see that insiders own shares in the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check thisfreereport showing analyst forecasts for its future.
Of courseAlgonquin Power & Utilities may not be the best stock to buy. So you may wish to see thisfreecollection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
NRA sues ex-president Oliver North, saying he harmed the NRA
NEW YORK (AP) — The National Rifle Association has sued its former president, Oliver North, for what it called "conduct harmful to the NRA" as turmoil that was exposed publicly when North resigned two months ago continued Thursday when the organization also turned against its longtime chief lobbyist. The lawsuit filed Wednesday in New York sought a judge's declaration that the NRA isn't required to pay North's legal bills. North stepped down from the post in April after serving for a year. The lawsuit said he "departed office after a widely publicized, failed coup attempt." The suit also accused top NRA official Chris W. Cox of conspiring with North to oust the organization's chief executive, Wayne LaPierre. The New York Times reported that the NRA has suspended Cox, who said the allegations were "offensive and patently false." A message left for North through his website wasn't immediately returned. An NRA spokesman did not return multiple messages. Cox has been the executive director of the NRA Institute for Legislative Action, the NRA's political and lobbying arm, since 2002. Its website boasts that Cox has "achieved some of its most significant political and legislative victories." Yet, the lawsuit said, "another errant NRA fiduciary, Chris Cox — once thought by some to be a likely successor for Mr. LaPierre — participated" in North's conspiracy to enable the NRA's longtime advertising agency, Ackerman McQueen Inc., which employed North, to gain control of its largest client. "As became widely publicized, Mr. LaPierre prevailed — and the attempted coup by Ackerman, spearheaded by North, failed," the lawsuit said. "North has acted in the best interests of himself and Ackerman and at the expense of the interests of the NRA, engaged in conduct harmful to the NRA, and persistently failed to provide to the NRA important details related to his lucrative contract with Ackerman," the lawsuit said. Story continues Jennifer Baker, a spokeswoman for NRA's lobbying arm who was quoted by the Times saying that "any notion Chris participated in a coup is absurd," responded to a message seeking comment Thursday with an email saying she is not authorized to discuss personnel matters. Last month, the NRA and Ackerman sued each other. The NRA said Ackerman had soiled its reputation and breached confidentiality agreements while Ackerman maintained the NRA had damaged its business. North, 75, was a military aide to the National Security Council in the 1980s when his role arranging the secret sale of weapons to Iran and the diversion of the proceeds to the anti-communist Contra rebels in Nicaragua was revealed. In 1989, he was convicted of obstructing Congress during its investigation, destroying government documents and accepting an illegal gratuity. Two years later, the convictions were reversed. ___ This story has been corrected to show that the anti-communist group in Nicaragua was called the Contra rebels, not the Control rebels. |
Business interview: Ovo Chief Stephen Fitzpatrick in pole position for the renewable power revolution
Stephen Fitzpatrick once made a good living as a City trader before founding energy supplier Ovo, and you can see why.
Sitting cross-legged on a sofa in his Notting Hill office, the 41-year-old Northern Irishman exudes focus.
He’s controlled to the point of being cagey, speaks in a measured, low voice.
If you walked past him in the street you’d barely give him a second look, still less think he was worth more than £600 million, unless maybe your eye fell on the £400 Zegna trainers.
But his firm is the UK’s seventh-biggest energy supplier, offering its 1.5 million customers electricity and gas from renewable sources.
And in a climate where politicians are setting targets for a zero-emissions world and Extinction Rebellion has brought London streets to a halt, the firm is also making a big bet on electric cars.
Its Kaluza division has the tech to link the batteries of vehicles and other devices to the power grid, telling them when to charge, and when to put power back in.
This investment, and an accelerated international expansion, have been driven by Japanese conglomerate Mitsubishi splashing out £200 million on a 20% stake in Ovo in February.
That turned the 10-year-old company into the UK’s latest unicorn; it also gave Fitzpatrick, who owns 65%, a vast paper fortune.
He’s gone from the upstart berating the service of Big Six rivals in front of MPs at the height of the furore over profiteering in 2013, into a target for others to shoot at.
He insists the DNA of Ovo is “completely different” to his larger rivals but admits “when you start out, you can get away with more”.
Fitzpatrick had his eye on the energy market for years.
After finishing university in 2000 he was just too late to the first dot.com boom, setting up an unsuccessful rentals website and learning valuable lessons in the process.
When it failed, he headed south to London “to get a proper job” and after a brief spell on the dole, landed one as a credit default swaps trader at Société Générale in 2003.
The plan was always to have another crack at starting his business but he wanted to “prove to myself I could stick at something for five years”.
Moving to JPMorgan he was bearish, partly because of his experience in a summer job selling books in the US, watching customers spread a $60 payment over three cards.
But the markets weren’t with him until a fateful day in 2007 when HSBC made its first ever profit warning, the Dow fell 500 points and “I’d made my budget for the year in one day.”
He quit to set up Ovo in 2008.
Bad customer experience and industry dynamics such as deregulation and the gradual emergence of renewables drew him towards energy.
“It was the realisation that there are 27 million consumers, every single person is a potential customer, an industry recently deregulated and seemingly inept, and companies who didn’t feel like they were keeping up with consumer expectations.”
That savvy has been rewarded as Ovo racked up £834 million in sales in 2017, a number that will only rise following its move for failed rivals like Spark and Economy Energy last year.
But Fitzpatrick is most animated when he discusses the Kaluza business. The genesis was the racing fanatic’s short-lived foray into Formula One, when he pumped a reported £30 million into rescuing the Marussia team in 2015.
He might still be involved but for a rain-soaked Brazilian Grand Prix in 2016, when one lost point pushed his renamed Manor team out of the cash in the Constructors’ Championship, costing it $50 million in prize money. The F1 dream died, but being around some of the biggest car companies he could sense the shift towards electric vehicles.
He argues Kaluza will be vital because of the sheer demand on the power grid of a boom in electric cars. “We live in a world where there are lots of devices that use electricity that have flexibility, for example your fridge. If you turn it off for six hours it will stay just as cold for six hours. Kaluza is a platform that enables the grid to securely connect to those devices and send them instructions on the best time to charge or discharge their battery.”
There are thousands of devices connected, “but it needs to be millions”. He rolls out the stats: if there are a million electric cars on the road in five years’ time, they’ll need 7GW of power, the “equivalent of 15 gas-fired power stations we don’t want to build”, and they can’t all charge at the same time. A smart grid becomes essential.
In Fitzpatrick’s street the number of electric cars quadrupled to 12 in the past year since charging points were installed by Kensington & Chelsea council.
He reckons if London’s politicians only had the gumption, petrol and diesel cars could be an endangered species on London’s streets in the next decade.
Mayor Sadiq Khan went part of the way this week with plans for 50,000 charging points by 2025. But Fitzpatrick says: “There are cities now talking about banning internal combustion engines not by 2040 but by 2030. We could definitely do that. In London for example, if we had the political will, we could definitely achieve that. We would need a huge investment in charging infrastructure. Why not? Over a decade we can do anything.”
That said, he thinks the demands of Extinction Rebellion, which has called for the UK to move to net zero carbon emissions in justsix years’ time, are just too hard to meet.
“I have had so many conversations with individual customers about the pain that rising energy prices causes them and when the bills go up they have to find the money somewhere else. To decarbonise our power sector will take time, and trying to rush it will certainly make the costs prohibitive to society.
“I just don’t see how we achieve those aims in the timescale provided without a massive drop in food production, in economic output. There is going to be real social and economic catastrophes which would come from that. We have to weigh up the urgency of the discussion with how is society going to pay for that?”
It’s a debate that Ovo and Fitzpatrick are likely to play a prominent part in for years to come.
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Are Adient plc's (NYSE:ADNT) Interest Costs Too High?
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as Adient plc ( NYSE:ADNT ) with a market-capitalization of US$2.1b, rarely draw their attention. While they are less talked about as an investment category, mid-cap risk-adjusted returns have generally been better than more commonly focused stocks that fall into the small- or large-cap categories. Let’s take a look at ADNT’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself into ADNT here . Check out our latest analysis for Adient Does ADNT Produce Much Cash Relative To Its Debt? ADNT's debt levels have fallen from US$3.7b to US$3.4b over the last 12 months , which also accounts for long term debt. With this reduction in debt, the current cash and short-term investment levels stands at US$511m to keep the business going. Additionally, ADNT has generated cash from operations of US$869m over the same time period, resulting in an operating cash to total debt ratio of 26%, indicating that ADNT’s debt is appropriately covered by operating cash. Can ADNT pay its short-term liabilities? Looking at ADNT’s US$4.0b in current liabilities, it seems that the business may not have an easy time meeting these commitments with a current assets level of US$3.9b, leading to a current ratio of 0.98x. The current ratio is calculated by dividing current assets by current liabilities. NYSE:ADNT Historical Debt, June 21st 2019 Can ADNT service its debt comfortably? ADNT is a highly-leveraged company with debt exceeding equity by over 100%. This is not unusual for mid-caps as debt tends to be a cheaper and faster source of funding for some businesses. But since ADNT is currently loss-making, there’s a question of sustainability of its current operations. Running high debt, while not yet making money, can be risky in unexpected downturns as liquidity may dry up, making it hard to operate. Next Steps: ADNT’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow. However, its low liquidity raises concerns over whether current asset management practices are properly implemented for the mid-cap. Keep in mind I haven't considered other factors such as how ADNT has been performing in the past. You should continue to research Adient to get a more holistic view of the stock by looking at: Story continues Future Outlook : What are well-informed industry analysts predicting for ADNT’s future growth? Take a look at our free research report of analyst consensus for ADNT’s outlook. Valuation : What is ADNT 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 ADNT 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. View comments |
These Billion-Dollar Pot Stocks Are Buyout Candidates
Marijuana is quickly becoming a big-dollar industry, and it certainly has Wall Street and investors seeing green.
Although estimates vary wildly, the consensus projection on Wall Street is that the legal cannabis industry will deliver a compound annual growth rate in the double digits through the end of the next decade. That makes legal marijuana one of the fasting-growing industries on the planet.
These heightened expectations for growth are certainly reflected in the valuations of a number of pot stocks. Today, more than a dozen marijuana stocks boast billion-dollar market caps, withCanopy Growth(NYSE: CGC)leading the pack with a valuation of $14.5 billion.
In an industry where consolidation is expected to take precedence over the next few years, the logical expectation would be for these presumably well-funded billion-dollar cannabis stocks to do the buying. But that's not always the case. Right now, there are three billion-dollar marijuana stocks that look more like acquisition targets than acquirers.
Image source: Getty Images.
Even though it's the third-largest marijuana stock by market cap,Cronos Group(NASDAQ: CRON)looks to be more of a buyout candidate than the one doing the buying.
Like Canopy Growth, Cronos landed one of the two major equity investments in the industry. Tobacco giantAltria(NYSE: MO)wound upinvesting $1.8 billion in the companyto nab a 45% nondiluted equity stake. Altria also received warrants that, if exercised, could boost its stake in Cronos Group to as high as 55%.
As for Canopy Growth, Modelo and Corona brewerConstellation Brands(NYSE: STZ)made a$4 billion equity investmentin the company in November. This lifted Constellation's equity in Canopy Growth to 37%, with the warrants it also received capable of boosting its stake to 56% on a diluted basis, if exercised.
What makes Canopy's and Cronos Group's situations so different is twofold. First, Constellation Brands is doing just fine with its assortment of alcoholic beverages throughout the world. That's not the case with Altria, which has seen its cigarette shipment volumes decline precipitously in the U.S. as adult smoking rates are the lowest in over 50 years. Altria absolutely needs an infusion of top-line growth, and cannabis can provide that spark. Constellation Brands doesn't need this spark. It merely saw an opportunity to expand into another fast-growing vice industry.
Second, Canopy Growth projects as one of the largest growers in Canada, with its 5.6 million square feet yielding north of 500,000 kilos, when licensed and fully operational. Comparatively, Cronos Group's 117,500 kilos of peak output barely keeps it among Canada's top 10 producers. Inclusive of joint ventures and royalty companies,it's not even a top-10 player.
With Cronos angling for a large share of the vape market, and Altria desperately needing a growth spark with tobacco sales declining, it would be no surprise if Altria simply purchased what it doesn't already own of Cronos Group.
Image source: Getty Images.
Ontario-basedAphria(NYSE: APHA)likely projects as Canada's third-largest grower by peak annual production, behind onlyAurora Cannabisand the aforementioned Canopy Growth. Spanning Aphria's three production farms, the company expects255,000 kilos of annual output, when operating at full capacity.
How is a company with 255,000 kilos in expected yearly output, and profitability forecast in fiscal 2020, valued at a mere $1.7 billion in market cap? The answer lies with Wall Street's faith in management...or perhaps lack thereof.
Back in December, Aphria was the target of a short-seller report from the duo of Quintessential Capital Management and Hindenburg Research. These short-sellers alleged that Aphria grossly overpaid for its Latin American assets -- a claim that was later found to be inaccurate, according to an independent committee. However, it was uncovered that a couple of executives were related parties in this Latin American deal, whichultimately led longtime CEO Vic Neufeld to step asideafter roughly five years at the helm.
This alsowasn't the first timeAphria's management team received a finger-wag from the public. In March 2018, when it acquired Nuuvera to bolster its international sales network, it was announced that a number of Aphria insiders held positions in Nuuvera just a day before the deal closed. While it's not unheard of for insiders of an acquiring company to hold an equity stake in the company being acquired, Wall Street and investors would want to know about it well in advance.
Thus, Aphria is facing a crisis of confidence with its management team, and its stock has suffered as a result.Green Growth Brandsattempted to acquire Aphria via a hostile bid earlier this year, but Aphria's board rejected that offer because it significantly undervalued the company.
At this point, Aphria looks primed for a takeover by a production-hungry grower -- one that would, hopefully, remove the uncertainties clouding Aphria's management and future.
Image source: Getty Images.
A third billion-dollar pot stock that could find itself the apple of a larger marijuana stock's eye is Quebec-basedHEXO(NYSEMKT: HEXO). Whereas weakness might facilitate the buyouts of Aphria and Cronos Group, this wouldn't be the case for HEXO, which is sitting pretty in a number of aspects.
For starters, the recently completed acquisition of Newstrike Brands for just shy of $200 million gives HEXO much-needed capacity. By sometime in 2020, it should be operating at its full capacity of 150,000 kilos of run-rate output per year. Buying HEXO would allow any grower to rocket up the production rankings.
Not to mention, it has what might be the most de-risked production portfolio of any grower. In April 2018, the company signed amammoth five-year supply dealwith its home province of Quebec that'll see it supply an aggregate of 200,000 kilos for the adult-use market. The amount being supplied is expected to grow annually, with Quebec holding an option to extend the deal for a sixth year. Including HEXO's ongoing ramp-up and its recent acquisition of Newstrike, the Quebec deal may account for 30% of its output through 2023.
HEXO alsohas a penchant for deal-making. It's formed a joint venture known as Truss withMolson Coors Brewingto develop a line of nonalcoholic cannabis-infused beverages that'll be legal by no later than this coming October. It also forged a two-year agreement withValens GroWorksthat'll see Valens extracting at least 80,000 kilos (in aggregate) of hemp and cannabis biomass for the production of high-margin derivative products.
But the very best aspect is that CEO Sebastien St-Louis has flat-out proclaimed thatHEXO is for sale if it receives the appropriate premium. "In five years, there may be four global cannabis companies, and whether HEXO is a buyer or a seller on that journey, what matters to us is for our shareholders to participate in that to become one of the four. ... It's certain that if someone comes and offers a 150 percent premium tomorrow, we are for sale," St-Louis said in 2018 to theMontreal Gazette. Because the share price has appreciated notably since these comments, it's possible St-Louis and his team would accept a premium of less than 150% today.
More From The Motley Fool
• Beginner's Guide to Investing in Marijuana Stocks
• Marijuana Stocks Are Overhyped: 10 Better Buys for You Now
• Your 2019 Guide to Investing in Marijuana Stocks
Sean Williamshas no position in any of the stocks mentioned. The Motley Fool recommends Constellation Brands and HEXO. The Motley Fool has adisclosure policy. |
COLUMN-Europe's aluminium industry has its own tariff problems: Andy Home
(The opinions expressed here are those of the author, a columnist for Reuters.)
* EU Primary Aluminium Production: https://tmsnrt.rs/2FreYe6
By Andy Home
LONDON, June 21 (Reuters) - U.S tariffs on imports of aluminium have changed the pricing landscape for domestic users.
The U.S. Midwest premium, which overlays the London Metal Exchange (LME) cash price, remains stubbornly high and consumers, led by the drinks can industry, are up in arms.
They could do worse than learn a tariffs lesson from the European Union, which has imposed its own duties on aluminium imports for many decades.
As with U.S. tariffs, the rationale is to preserve threatened primary aluminium smelters.
The duty, however, has ended up failing to stop multiple smelter closures while actively undermining the downstream sector, according to the Federation of Aluminium Consumers in Europe (FACE).
FACE, which has lobbied for many years against the duty, is renewing its efforts with a piece of research from the LUISS University of Rome, spelling out the negative impact on Europe's downstream aluminium value chain.
The report also has some interesting things to say about how tariffs really work.
LOST CAUSE?
The EU import duties currently range from 3% for unalloyed aluminium to 6% for alloys.
Countries with preferential trade agreements, such as Iceland, Norway and Mozambique, are exempt.
The explicit aim of the duty has always been the preservation of EU smelters, their workforces and their research and development.
The European Commission has twice reacted to consumer ire by reducing parts of the tariff structure, once in 2007 and again in 2013. The first time around there was even a proposal to eliminate the duties altogether but it wilted in the face of concerted opposition from producer countries.
Since then more EU smelters have shut, with plants closing in France, Germany, Italy, the Netherlands and Britain. The fate of two Spanish plants is now in the balance as U.S. producer Alcoa tries to negotiate a sale rather than close them.
Europe has lost more than 30% of its aluminium smelting capacity since 2008, the LUISS report notes.
Smelting, both primary and from scrap, now represents just 30% of turnover and 7% of jobs in the aluminium supply chain, according to FACE.
Net import dependency has grown steadily to 74% in 2017, when the region sucked in 6.2 million tonnes of aluminium.
PAID IN FULL
The duty has cost the EU downstream aluminium sector somewhere between 10 billion and 18 billion euros ($11 billion-$18 billion) since 2000, according to the LUISS study.
It's inevitably a broad range of estimates because it's a complex, fluid supply chain.
The real takeaway is that even though duty-exempt imports represented around 50% of total imports over the 2008-2017 period, everyone ends up paying the full 6% tariff anyway.
EU producers are incentivised to "align their prices to the highest possible level - that is, the duty-paid price."
Tax-exempt producers have a similar incentive, since they know the EU will still import tax-payable metal.
The end result is that "EU market prices for unwrought aluminium always include the customs duty", according to the LUISS study.
"There is no duty-free priced unwrought aluminium available to EU users and consumers," adds Roger Bertozzi, head of EU and Multilateral Affairs at FACE.
PAYING THE PRICE
Aluminium represents over half of production costs for transformers such as rolling mills and extruders.
Europe's downstream sector comprises more than a thousand companies, many of them small and medium sized operators without the negotiating clout to pass the duty on to their customers.
Competition is fierce. Europe has been just as much affected by China's high-volume exports of semi-manufactured products as the United States in recent years.
Compressed margins have taken their toll.
EU production of aluminium extrusions in 2017 was below levels in 2000, according to the LUISS study.
Flat rolled products output has increased but "at a significantly slower pace than on the global level."
"The EU's trade balance has constantly worsened in all sectors of aluminium semi-finished products, as consumption of semi-finished aluminium products has increased at a compound growth annual rate of 3% in the same period," the study adds.
Which is why other major net importers such as Japan, which exited the aluminium smelting business in the last century, don't have any import duties on primary metal and alloys.
HIDDEN SUBSIDY
The EU duty is, in the words of FACE, "a de facto hidden subsidy mechanism".
But it is not so "hidden" because the aim of the duty was always to support the dwindling number of European smelters.
It is looking ever more anomalous as the regional aluminium supply chain continues migrating from upstream smelting to downstream metals formation.
The net effect on the whole chain is negative, an outcome which seems at odds with the EU's renewed focus on strengthening its industrial self-sufficiency.
In essence, the European Commission has to decide whether the sector's future is one of smelting aluminium or making value-added products.
The United States may end up facing the same choice. Its 10% tariffs on imports of aluminium are also explicitly linked to protecting domestic smelting capacity.
Some production has been rekindled but with so many smelters dismantled years ago, there's only so much capacity to restart.
The United States, like Europe, is going to remain dependent on imports, both from tariff-exempt suppliers, such as Canada and Australia, and on non-exempt producers, such as Russia.
The lesson from Europe's import duty history is that first-stage consumers will end up paying the full tariff because there is simply no incentive for producers, domestic or tax-free, not to align their pricing to the highest possible level.
The fact that the United States must reach geographically further for its metal from Russian and Middle Eastern producers implies an additional lock on higher local prices.
Those hoping that the Midwest Aluminium premium is going to "normalise" any time soon may find themselves disappointed.
As EU consumers can attest, once duties are imposed, they can embed themselves into market pricing in complex ways, effectively raising the price for everyone.
($1 = 0.8852 euros)
(Editing by Edmund Blair) |
How Financially Strong Is Adient plc (NYSE:ADNT)?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as Adient plc (NYSE:ADNT) with a market-capitalization of US$2.1b, rarely draw their attention. Despite this, the two other categories have lagged behind the risk-adjusted returns of commonly ignored mid-cap stocks. ADNT’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look furtherinto ADNT here.
See our latest analysis for Adient
ADNT has shrunk its total debt levels in the last twelve months, from US$3.7b to US$3.4b , which also accounts for long term debt. With this reduction in debt, ADNT's cash and short-term investments stands at US$511m , ready to be used for running the business. Moreover, ADNT has produced US$869m in operating cash flow during the same period of time, leading to an operating cash to total debt ratio of 26%, indicating that ADNT’s current level of operating cash is high enough to cover debt.
At the current liabilities level of US$4.0b, the company may not have an easy time meeting these commitments with a current assets level of US$3.9b, leading to a current ratio of 0.98x. The current ratio is the number you get when you divide current assets by current liabilities.
With total debt exceeding equity, ADNT is considered a highly levered company. This is not unusual for mid-caps as debt tends to be a cheaper and faster source of funding for some businesses. However, since ADNT is presently unprofitable, sustainability of its current state of operations becomes a concern. Maintaining a high level of debt, while revenues are still below costs, can be dangerous as liquidity tends to dry up in unexpected downturns.
ADNT’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow. But, its lack of liquidity raises questions over current asset management practices for the mid-cap. This is only a rough assessment of financial health, and I'm sure ADNT has company-specific issues impacting its capital structure decisions. You should continue to research Adient to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for ADNT’s future growth? Take a look at ourfree research report of analyst consensusfor ADNT’s outlook.
2. Valuation: What is ADNT 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 ADNT is currently mispriced by the market.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Gorgeous 'Atlas of Space' Smashes the Textbook View of the Solar System
E ditor's Note: This story was updated at 11:20 a.m. E.D.T. on June 24 In most maps of the solar system, you can expect to see the eight canonical planets (plus whatever Pluto is at the moment) trailing the fiery orange sun like polite little ducklings in a row. In biologist Eleanor Lutz's new map of the solar system, which shows the precise orbital paths of more than 18,000 near celestial objects, you'll be lucky if you can even find Mars . Lutz is a doctoral candidate at the University of Washington who spends her evenings turning public data sets into hyperdetailed works of art. In her new project, called the Atlas of Space , she's borrowed more than a decade of data compiled by the likes of NASA, the U.S. Geological Survey and other science organizations to create some of the most accurate maps of the solar system that will fit on your bedroom wall. [ 10 Interesting Places in the Solar System We'd Like to Visit ] The map shown here, which Lutz posted to her website on June 10, was created from orbital data taken from a dozen different public databases. Going above and beyond most textbook space maps, this guide to the cosmos shows the asteroid belt between Mars and Jupiter and the Kuiper B elt beyond Neptune in gorgeous, chaotic detail. "This map shows each asteroid at its exact position on New Years' Eve 1999," Lutz wrote on her site. "This includes everything we know of that's over 6.2 miles (10 kilometers) in diameter about 10,000 asteroids as well as 8,000 randomized objects of unknown size." Lutz's topographic map of Mercury almost makes the scorching planet look worth visiting. Eleanor Lutz/TabletopWhale.com This is our solar system in macro. Over the coming weeks, Lutz also plans to share some more intimate views of Earth's nearest cosmic neighbors, including topographic maps of Mercury and Venus . While these lovely maps may not take you to another world, they'll probably blow your mind a little bit. Want a taste? Take a look at the Kuiper Belt (the outermost ring of green asteroids) on the bottom of the map. Story continues "You might notice that Pluto is shown inside Neptune's orbit," Lutz wrote. "It turns out that about 10% of the time, Pluto is actually closer to the sun than Neptune." Editor's Note: A caption in the second image of this story was updated. Mercury is not the hottest planet, though it is quite hot. The 12 Strangest Objects in the Universe 15 Amazing Images of Stars 9 Strange Excuses for Why We Haven't Met Aliens Yet Originally published on Live Science . |
How Much Are Ashford Hospitality Trust, Inc. (NYSE:AHT) Insiders Spending On Buying Shares?
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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares inAshford Hospitality Trust, Inc.(NYSE:AHT).
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
Check out our latest analysis for Ashford Hospitality Trust
Over the last year, we can see that the biggest insider purchase was by Lead Independent Director Benjamin Ansell for US$67k worth of shares, at about US$3.36 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$3.21). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Benjamin Ansell.
The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Ashford Hospitality Trust 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.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 8.6% of Ashford Hospitality Trust shares, worth about US$34m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Ashford Hospitality Trust insiders are well aligned, and that they may think the share price is too low. 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. |
Gold discounts in India widen to highest in almost three years as prices reach record
By Rajendra Jadhav and Sethuraman N R
MUMBAI/BENGALURU (Reuters) - Physical gold discounts in India widened to their highest in almost three years this week as local prices surged to record peaks, while Asian hubs, barring China, saw aggressive selling from customers as global bullion rates scaled a 6-year peak.
The price of gold in India hit a record high of 35,430 rupees per 10 grams on Friday, tracking gains in the world market and helped by a weak rupee.
Dealers this week were offering a discount of up to $15 an ounce over official domestic prices, the highest since September 2016. Dealers offered discounts of about $7 last week. The domestic price includes a 10% import tax and 3% sales tax.
"Even after offering $15 discount, jewellers are not ready to make purchases," said a Mumbai-based dealer with a bullion importing bank.
Demand will remain subdued for at least the next few weeks unless prices correct significantly, the dealer said.
Almost all jewellery shops in Mumbai's Zaveri Bazaar, India's biggest bullion market, were deserted on Friday, dealers said.
"The price level is encouraging people to sell old gold. Buying is negligible at this price," said Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji.
India's gold imports in May jumped 49% from a year earlier to 116 tonnes as a correction in local prices during a major festival boosted retail demand, a government source said on Tuesday.
In rural areas, demand has softened as farmers are focusing on sowing of summer-sown crops, Jain said.
Premiums in top gold consumer China ranged from $14 to $20 an ounce over the global benchmark, up from $10 to $12.50 in the previous week.
"There was safe-haven demand as well, as people are betting that U.S. will cut rates sometime this year," said Samson Li, a Hong Kong-based precious metals analyst with Refinitiv GFMS.
"But, jewellery is the bulk of the Chinese consumption and is still sagging in a dull season."
Markets in Singapore and Hong Kong saw premiums remaining flat at around 60 cents and 50 cents to $1.20, respectively, with customers selling back gold to lock profits.
"We got back so much from customers that the refinery could not accept any more from us ... at least until next Wednesday," a Singapore-based bullion dealer said.
Spot gold surpassed the key $1,400 an ounce level on Friday, scaling a six-year peak at $1,410.78.
Japanese customers were enjoying higher prices by selling back gold and as a result, the metal was being sold at a $1 discount, a Tokyo-based trader said.
Graphic: India's gold market http://tmsnrt.rs/2b1Tl6J
(Reporting by Rajendra Jadhav in Mumbai and Nallur Sethuraman in Bengaluru) |
Investors Who Bought Akcea Therapeutics (NASDAQ:AKCA) Shares A Year Ago Are Now Down 13%
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
The simplest way to benefit from a rising market is to buy an index fund. But if you buy individual stocks, you can do both better or worse than that. Unfortunately theAkcea Therapeutics, Inc.(NASDAQ:AKCA) share price slid 13% over twelve months. That contrasts poorly with the market return of 6.4%. Akcea Therapeutics may have better days ahead, of course; we've only looked at a one year period. It's down 18% in about a quarter.
Check out our latest analysis for Akcea Therapeutics
Akcea Therapeutics isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last year Akcea Therapeutics saw its revenue grow by 289%. That's well above most other pre-profit companies. Given the revenue growth, the share price drop of 13% seems quite harsh. Our sympathies to shareholders who are now underwater. On the bright side, if this company is moving profits in the right direction, top-line growth like that could be an opportunity. Our monkey brains haven't evolved to think exponentially, so humans do tend to underestimate companies that have exponential growth.
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.
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 Akcea Therapeutics shareholders are down 13% for the year, the market itself is up 6.4%. 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. It's worth noting that the last three months did the real damage, with a 18% decline. This probably signals that the business has recently disappointed shareholders - it will take time to win them back. You could get a better understanding of Akcea Therapeutics's growth by checking outthis more detailed historical graphof earnings, revenue and cash flow.
For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
EVA Air attendants strike halts flights for 1,000s in Taiwan
TAIPEI, Taiwan (AP) — A strike by flight attendants at EVA Air, Taiwan's second-largest airline, has left thousands of passengers scrambling for alternative transport. Local media reported more than 100 flights were being canceled and almost 20,000 passengers would be affected on the first three days of the strike, which began Thursday afternoon after negotiations broke down. The airline operates about 80 international flights daily and its domestic operations were not affected. About 100 union members staged a sit-in outside the airline's suburban Taipei headquarters Thursday night to press their demands. "I urge EVA Air to solve our problems and take care of our demands," union member Chao Chieh-huan said. On its Twitter feed, the airline said it was "working closely with concerned authorities, fellow airlines, and travel agencies to arrange alternative flights for passengers and doing all we can to reduce delays." "This untimely labor action will significantly impact and inconvenience our passengers, our flight attendants' fellow employees and the travel industry," the airline said. Updates were being published on a strike response website and passengers could also call the airline's reservation center. Union members have demanded a raise in daily allowances and an end to a practice in which non-union members enjoy the same benefits as members. Management has said daily allowances are already higher than those offered by competitors and barring non-union members who do the same work from enjoying equal benefits would harm safety and morale. EVA Air Chief Executive Vice President Ho Ching-sheng addressed union members, but showed little inclination toward compromise. "We understand that many flight attendants are involved because of peer pressure and we urge those flight attendants to think about what they have done. They should understand that it's not appropriate to do so." Earlier this year, pilots at Taiwan's largest carrier, China Airlines, went on strike for seven days over benefits and working conditions before reaching an agreement with the mediation of the transport and labor ministries and the vice premier. |
Does AnaptysBio, Inc. (NASDAQ:ANAB) Have A Volatile Share Price?
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If you're interested in AnaptysBio, Inc. (NASDAQ:ANAB), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. 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 second type is the broader market volatility, which you cannot diversify away, since it arises from macroeconomic factors which directly affects all the 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 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.
See our latest analysis for AnaptysBio
Looking at the last five years, AnaptysBio has a beta of 1.98. The fact that this is well above 1 indicates that its share price movements have shown sensitivity to overall market volatility. Based on this history, investors should be aware that AnaptysBio are likely to rise strongly in times of greed, but sell off in times of fear. 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 AnaptysBio's revenue and earnings in the image below.
AnaptysBio is a small cap stock with a market capitalisation of US$1.8b. Most companies this size are actively traded. It is quite common to see a small-cap stock with a beta greater than one. In part, that's because relatively few investors can influence the price of a smaller company, compared to a large company.
Since AnaptysBio tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock. In order to fully understand whether ANAB is a good investment for you, we also need to consider important company-specific fundamentals such as AnaptysBio’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 ANAB’s future growth? Take a look at ourfree research report of analyst consensusfor ANAB’s outlook.
2. Past Track Record: Has ANAB 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 ANAB's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how ANAB 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. |
Bitcoin Price Targets $10,000 and Beyond, Thanks to Weak Dollar Sentiment
ByCCN Markets: Price of Bitcoin established another year-to-date high on Friday, touching levels not seen in over a year.
Earlier during the Asian session, the bitcoin-to-dollar exchange rate flew past the $9,800 level for the first time since May 6, 2018. As of 0200 UTC, the pair settled a fresh yearly high towards $9,812 on Coinbase exchange, up 5.92 percent on a 24-hour adjusted timeframe. Bitcoin futures on CME also surged to establish its 2019 peak of $9,840.
Bitcoin Price Soars Past $6,700 in Latest Upside Action | Source: TradingView.com, Coinbase
The price rise appeared 12 hours after the Federal Reserveagreedto the possibility for a rate cut in July, carrying the yield on the benchmark US 10-year Treasury note down below 2 percent for the first time since November 2016.
Read the full story on CCN.com. |
How will Britain's drivers go electric?
The government needs to supercharge its electric vehicle strategy if it is to have any chance of meeting its new net zero emissions by 2050 pledge. The British Vehicle Rental and Leasing Association (BVRLA), an important voice in the transport sector and which represents fleets that own or operate nearly five million cars and vans, says that a poor charge point infrastructure and vehicle supply are putting the brakes on UK electric vehicle registrations. It follows a similar warning from the National Grid, while the House of Commons Business, Energy and Industrial Strategy Committee has described Britains charging infrastructure as poor and lacking in size and geographical coverage. Range anxiety, along with cost, has been one of the main factors deterring buyers from adopting a new generation of capable all- electric vehicles , such as the Nissan Leaf, Renault Zoe, Hyundai Ioniq, Kia Niro, Jaguar I-Pace. New models over the next few months and years are due from a wide range of manufacturers including VW, Audi, Seat, Honda and Volvo. Only around one in 100 new cars registered in the UK are pure electric (as opposed to the much more popular hybrids and plug-in hybrids that retain their petrol or diesel motors). Even though some mainstream electric cars now boast a range of 200 to 300 miles, adoption is held back by the additional difficulty householders in, say, flats and terraced houses have in charging cars when they are unable to do so at home, because fitting a charging box is impractical. Road transport is responsible for 26 per cent of the UKs greenhouses gas emissions. To reduce this impact, the government published a Road to Zero strategy in July 2018, pledging to make almost every car and van zero emission by 2050. The BVRLA says the government is failing to make sufficient progress to reach its overall zero carbon goal by 2050. The association argues that persuading large fleet buyers to go electric is one of the fastest ways to boost the number of EVs on the road. A lack of clarity about what taxes will be levied on the buyers and users of EVs in future years means they are holding back. Additionally, the BVRLA cites the following weaknesses in achieving the governments targets: Story continues * Charge point access there are still too many rapid charge point black spots and the ability to roam between different charging networks remains a challenge; * Leading by example the government set a target to make 25 per cent of its own official car fleet ultra-low emission vehicles (ULEVs) by 2022, but recent data indicates that only 2 per cent are ULEVs, placing the government way behind on its own plans. Chris Grayling, the transport secretary, has announced plans to make sure all government-run vehicles are electric by 2030. We are less than a year on from the launch of the governments Road to Zero strategy and our own Plug-in Pledge, adds Gerry Keaney, chief executive of the BVRLA. Fleets across the UK have committed to this transition and are leading the zero-emission vehicle surge. Our research has found that they are desperate for clarity on future taxation and incentives, want better access to public charging and are frustrated at lead-times of over 12 months for the most popular EVs. Although the BVRLA says the UK is a frontrunner compared with other countries in some areas, there are also serious deficiencies. To support its assessments, the BVRLA makes some key recommendations that it believes will get the UKs electric vehicle strategy back on track. These include: * Providing a five-year roadmap for motoring taxes and EV incentives; * Setting a national quota for EV registrations that ramps up between now and 2030; * Mandating universal methods of access and payment for public charge points. Fleets are already spending billions of pounds on electric vehicles and can drive an even faster transition to zero emission motoring with more government support, says Keaney. Growing concerns around urban air quality and climate change mean that the government is already updating its targets with more ambitious ones. We are ready to work with policymakers and the automotive supply chain in meeting todays and tomorrows challenges. Graeme Cooper, project director for electric vehicles at National Grid, has called for a really grown-up discussion among all the interested parties oil companies, vehicle operators, electricity generators and distributors and government. |
Does The AnaptysBio, Inc. (NASDAQ:ANAB) Share Price Tend To Follow The Market?
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If you're interested in AnaptysBio, Inc. (NASDAQ:ANAB), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. 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 are more sensitive to general market forces than others. 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. 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.
View our latest analysis for AnaptysBio
Given that it has a beta of 1.98, we can surmise that the AnaptysBio share price has been fairly sensitive to market volatility (over the last 5 years). If the past is any guide, we would expect that AnaptysBio 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 AnaptysBio's revenue and earnings in the image below.
AnaptysBio is a small cap stock with a market capitalisation of US$1.8b. Most companies this size are actively traded. It has a relatively high beta, which is not unusual among small-cap stocks. Because it takes less capital to move the share price of a smaller company, actively traded small-cap stocks often have a higher beta that a similar large-cap stock.
Since AnaptysBio tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as AnaptysBio’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Future Outlook: What are well-informed industry analysts predicting for ANAB’s future growth? Take a look at ourfree research report of analyst consensusfor ANAB’s outlook.
2. Past Track Record: Has ANAB 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 ANAB's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how ANAB 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. |
Is Franklin Real Estate Security A (FREEX) a Strong Mutual Fund Pick Right Now?
If you have been looking for Sector - Real Estate fund category, a potential starting could be Franklin Real Estate Security A (FREEX). FREEX has a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
Objective
Zacks categorizes FREEX in Sector - Real Estate, which is a segment packed with options. Real estate investment trusts (REITs) are a popular income vehicle thanks their taxation rules, and Sector - Real Estate mutual funds typically invest in them. A REIT is required to pay out at least 90% of its income annually to avoid double taxation, and this technique makes securities in these funds high dividend players--almost bond-like in some cases--though their risk is similar to equities.
History of Fund/Manager
Franklin Templeton is based in San Mateo, CA, and is the manager of FREEX. The Franklin Real Estate Security A made its debut in January of 1994 and FREEX has managed to accumulate roughly $333.52 million in assets, as of the most recently available information. The fund's current manager is a team of investment professionals.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 7.37%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 5.71%, which places it in the middle third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, FREEX's standard deviation comes in at 13.71%, compared to the category average of 9.63%. Over the past 5 years, the standard deviation of the fund is 14.59% compared to the category average of 10.1%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment. In FREEX's case, the fund lost 65.34% in the most recent bear market and underperformed its peer group by 1.45%. This means that the fund could possibly be a worse choice than its peers during a down market environment.
Nevertheless, with a 5-year beta of 0.62, the fund is likely to be less volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. With a positive alpha of 1.67, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, FREEX is a load fund. It has an expense ratio of 0.98% compared to the category average of 1.22%. So, FREEX is actually cheaper than its peers from a cost perspective.
While the minimum initial investment for the product is $1,000, investors should also note that there is no minimum for each subsequent investment.
Bottom Line
Overall, Franklin Real Estate Security A ( FREEX ) has a neutral Zacks Mutual Fund rank, strong performance, average downside risk, and lower fees compared to its peers.
Don't stop here for your research on Sector - Real Estate funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare FREEX to its peers as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportGet Your Free (FREEX): Fund Analysis ReportTo read this article on Zacks.com click here. |
Is ProFunds Technology UltraSector Investor (TEPIX) a Strong Mutual Fund Pick Right Now?
Looking for a Sector - Tech fund? You may want to consider ProFunds Technology UltraSector Investor (TEPIX) as a possible option. TEPIX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
Objective
The world of Sector - Tech funds is an area filled with options, and TEPIX is one of them. Sector - Tech mutual funds allow investors to own a stake in a notoriously volatile sector with a much more diversified approach. Tech companies can be in any number of industries such as semiconductors, software, internet, networking just to name a few.
History of Fund/Manager
TEPIX is a part of the ProFunds family of funds, a company based out of Columbus, OH. The ProFunds Technology UltraSector Investor made its debut in June of 2000 and TEPIX has managed to accumulate roughly $25.88 million in assets, as of the most recently available information. The fund is currently managed by Michael Neches who has been in charge of the fund since October of 2013.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 20.37%, and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 27.91%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of TEPIX over the past three years is 24.25% compared to the category average of 15.91%. The fund's standard deviation over the past 5 years is 24.31% compared to the category average of 16.26%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment. TEPIX lost 68.73% in the most recent bear market and underperformed its peer group by 15.41%. This could mean that the fund is a worse choice than comparable funds during a bear market.
Nevertheless, with a 5-year beta of 1.79, the fund is likely to be more volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. TEPIX's 5-year performance has produced a positive alpha of 4.59, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is largely on equities that are traded in the United States.
As of the last filing date, the mutual fund has 93.27% of its assets in stocks, and these companies have an average market capitalization of $414.38 billion. The fund has the heaviest exposure to the following market sectors:
1. Technology
2. Other
Turnover is about 140%, so those in charge of the fund make more trades per year than the comparable average.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, TEPIX is a no load fund. It has an expense ratio of 1.54% compared to the category average of 1.31%. From a cost perspective, TEPIX is actually more expensive than its peers.
This fund requires a minimum initial investment of $15,000, while there is no minimum for each subsequent investment.
Bottom Line
Overall, ProFunds Technology UltraSector Investor ( TEPIX ) has a neutral Zacks Mutual Fund rank, strong performance, worse downside risk, and higher fees compared to its peers.
Want even more information about TEPIX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportGet Your Free (TEPIX): Fund Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Is MFS Value R6 (MEIKX) a Strong Mutual Fund Pick Right Now?
Any investors hoping to find a Large Cap Value fund could think about starting with MFS Value R6 (MEIKX). MEIKX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
Large Cap Value mutual funds invest in stocks with a market capitalization of $10 billion or more, but whose share prices do not reflect their intrinsic value; this value investing strategy often leads to low P/E ratios and high dividend yields, though growth levels are often curtailed. The high-growth opportunity of these funds are slowed even further, as large-cap securities are generally in stable industries with low to moderate growth prospects. Therefore, Large Cap Value funds are usually more appealing to investors who are interested in a stable income stream.
History of Fund/Manager
MFS is based in Boston, MA, and is the manager of MEIKX. MFS Value R6 made its debut in June of 2012, and since then, MEIKX has accumulated about $13.74 billion in assets, per the most up-to-date date available. Steven Gorham is the fund's current manager and has held that role since June of 2012.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 7.61%, and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 8.28%, which places it in the middle third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, MEIKX's standard deviation comes in at 11.83%, compared to the category average of 9.04%. The fund's standard deviation over the past 5 years is 11.74% compared to the category average of 9.41%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. MEIKX has a 5-year beta of 0.96, which means it is likely to be less volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. MEIKX has generated a negative alpha over the past five years of -1.54, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, MEIKX is a no load fund. It has an expense ratio of 0.47% compared to the category average of 0.99%. Looking at the fund from a cost perspective, MEIKX is actually cheaper than its peers.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Bottom Line
Overall, MFS Value R6 ( MEIKX ) has a high Zacks Mutual Fund rank, strong performance, average downside risk, and lower fees compared to its peers.
For additional information on this product, or to compare it to other mutual funds in the Large Cap Value, make sure to go to www.zacks.com/funds/mutual-funds for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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2019 NFL Preview: Giants, Dave Gettleman have lot to prove
Yahoo Sports is previewing all 32 teams as we get ready for the NFL season, complete with our initial 2019 power rankings. (Yahoo Sports graphics by Paul Rosales) When you have to express to the media that yes, you actually do have a plan to build your football team, it’s not a good sign for your offseason. “Trust me, we’ve got a plan,” New York Giants general manager Dave Gettleman said, according to the team’s transcripts. “Over time, you've got to be patient. Everybody wants answers now in this instant-gratification society, instant-gratification world, and everybody wants answers now. Over time, you'll see it. You've got to trust it.” That was in March, after trading Odell Beckham Jr. Before the draft. You probably remember the Giants draft. They overshadowed everything else that happened in the first round by taking Duke quarterback Daniel Jones sixth overall. That was a shocking pick and based on the way everyone reacted , Jones is already a bust months before ever taking an NFL snap. If Gettleman has a plan, it’s hard to figure out. [Join or create a 2019 Yahoo Fantasy Football league for free today] Gettleman famously passed on Sam Darnold and other quarterbacks last year to draft running back Saquon Barkley, saying it wasn’t smart to take a quarterback you aren’t in love with . Then he took Jones, who very few people would rank ahead of Darnold as a prospect. Gettleman said about Beckham in February, “We didn’t sign him to trade him,” then traded Beckham to Cleveland in March for safety Jabrill Peppers and a first- and third-round pick. “We didn’t sign him to trade him but obviously things changed,” Gettleman said, according to the New York Post . “Frankly, what changed is another team made an offer we couldn’t refuse.” The Giants surprisingly didn’t use the franchise tag on safety Landon Collins, then saw him go to the division rival Washington Redskins for a six-year, $84 million deal. The Giants look to be in a rebuild, but just gave receiver Golden Tate a four-year, $37.5 million deal. Tate will be 31 years old this season. They also paid Sterling Shepard, who has not posted a 1,000-yard season, a four-year, $41 million extension. Story continues New York probably would be wise to stock up draft picks, yet traded a second-, fourth- and fifth-round pick for the No. 30 overall pick and selected cornerback Deandre Baker. Many thought Baker was a reach at No. 30. It was a strange offseason, and Gettleman’s gamble on Jones looms over everything. New York made a mistake last year not addressing quarterback. The franchise was too concerned about Eli Manning’s feelings after a one-game benching in 2017 , and they botched last offseason as they made it up to him. Then they might have compounded the problem by reaching on Jones. So much of the focus has been on the Giants taking Jones at No. 6 instead of waiting for their second first-round pick at No. 17. That’s justifiable though. Clearly Gettleman thinks Jones can be a long-term starter. Once he fell in love with Jones, there was no need to risk losing the quarterback he coveted. Maybe Jones wasn’t ranked highly by draft experts, but Gettleman and the Giants couldn’t know for sure what would have happened between picks No. 7 and 16. Taking Jones at No. 6, once they were sold on him, was fine. But should they have been sold on Jones? Yahoo Sports’ Eric Edholm had Jones as his 56th ranked prospect in this year’s class. He pointed out Jones is smart, well-coached, a good athlete and an accurate passer on short and intermediate throws. But Jones was also upstaged by Missouri’s Drew Lock (who went in the second round) at Senior Bowl practices and Edholm had questions about Jones’ arm and downfield passing. “Jones’ composure and mechanical refinement make him a high-floor template as a prospect, and he likely wouldn’t embarrass himself if thrust into the lineup early in his career,” Edholm wrote. “There are enough limitations in his game to ever imagine him becoming great.” That’s not what you want to hear about the sixth pick of the draft. As for what happens this season, it will be awkward. If you’ve read these previews in past years, you’ve seen this stat: Since 2006 (the year after the Green Bay Packers took Aaron Rodgers) Jake Locker and Brady Quinn are the only two first-round quarterbacks to not start at least one game as a rookie. All five first-round quarterbacks last year started, making it 32 of the past 34 first-round quarterbacks that have started at least once as a rookie. Unless the Giants buck a 94 percent trend, Jones is going to start at some point this year. Manning is aging and fading but beloved. But time moves on and the sixth pick likely isn’t going to sit on a bad team. There will be a transition. And it will be difficult to navigate. Jones didn’t ask for the pressure he finds himself under. He had no control over how high he went in the draft. He didn’t ask to go to a rabid market and replace a legend. But he’s under an intense spotlight before he ever takes a snap. Gettleman should feel the same pressure. His plan, whatever it is, better reveal itself pretty soon. New York Giants general manager Dave Gettleman has been one of the most talked-about men in the NFL this offseason. (Getty Images) Ask Jon Gruden: Trading a generational talent can create a lot of regret. Odell Beckham Jr. had baggage, but his talent is undeniable. It hurts to trade him to Cleveland. The Giants did get Jabrill Peppers and guard Kevin Zeitler from Cleveland, while also shipping pass rusher Olivier Vernon to Cleveland. Zeitler is a very good guard and Peppers is a former first-round pick who was misused. They should do well in New York. Golden Tate got a big contract but the Giants needed pass catchers and had to pay. Veteran right tackle Mike Remmers helps the line, and free safety Antoine Bethea is a good short-term add as well. Safety Landon Collins leaving via free agency could have been avoided. The Giants did add three first-round picks but each of them — Daniel Jones, defensive tackle Dexter Lawrence and Deandre Baker — appeared to be reaches. Grade: D While the vibe around the Giants is mostly negative, they weren’t quite as bad as their 5-11 record last season according to many metrics. They were No. 15 in Football Outsiders’ DVOA per-play metric , and projected as a 7.9-win team. Their Pythagorean expectation, based on points scored and allowed, said they should have had 6.9 wins. The Giants finished 11th or better in stats like yards per pass play, yards and yards allowed per run play and passer rating allowed. New York actually scored more points than any other NFC East team last season. The Giants lost 11 games and eight were by a touchdown or less, and their 4-8 record in those games was unlucky. They also started 1-7 against a rough schedule and went 4-4 the rest of the way. Is it possible the Giants are actually underrated? Among all NFL teams, only the Oakland Raiders had fewer sacks than the Giants, who posted 30. Then the Giants traded their top pass rusher, Olivier Vernon, and didn’t do much to add to the pass rush. Markus Golden had 12.5 sacks for Arizona in 2016 and was a good gamble in free agency, but he has 2.5 sacks the past two seasons. A lot will be asked of 2018 third-round pick Lorenzo Carter, who had four sacks as a rookie. The Giants might have a pretty good secondary this season, but it won’t matter if they can’t rush the passer. Eli Manning had a bounce-back in 2018, at age 37. He improved from 2017 in completion percentage, yards, touchdowns, interceptions, yards per attempt and passer rating. Manning wasn’t bad in 2018. He likely can’t hold off Daniel Jones all season — as previously stated, rookie first-round quarterbacks don’t sit anymore — but perhaps Manning can hold him off longer than expected. Imagine the Giants offense without Saquon Barkley. Pretty scary, isn’t it? While we had visions of Barkley and Odell Beckham Jr. playing beside each other for years, Barkley has to do it alone now. The main question for Barkley, after 352 touches (and more than 2,000 yards) as a rookie, is how many touches can he handle this season? “I don’t think any number is too high for me personally,” Barkley said, via NJ.com . “At the end of the day, I know I sound like a broken record, but you will hear this for as long as I am in the NFL, as long as I take care of my body, my body will take care of me.” Defenses keyed on Barkley last season and it didn’t matter. He’s a phenomenal talent, perhaps the best back in football already, and we’ll see how far he can carry the Giants offense. Yahoo's Scott Pianowski: “Evan Engram showed improvement in his second NFL season, it was just obscured by injury issues. He jumped his YPC by 1.5 yards and he spiked his catch rate by almost 15 percent; when you raise both of those numbers, you’re doing something right. But Engram also missed five games, and his touchdowns dropped from six to three. His year-end grade dropped eight spots, even with the jump in efficiency. So much of life is merely showing up. “Engram’s still considerably ahead of the curve for a young tight end, however. So many at the position look lost or overmatched in their early seasons, and that has never been the case with Engram. His game really kicked into gear in the final four games of 2018, when Odell Beckham Jr. wasn’t on the field. Engram totaled 320 yards over that span, with a minimum of 75 yards in every start. You love a tight end who moves like a wideout. “The third-year tight end won’t be cheap at any table this summer — his Yahoo ADP is 61, the sixth-highest at the position. And obviously the Giants have uncertainty at quarterback, and even the wideout group is in flux (goodbye, OBJ; hello, Golden Tate). We also have to monitor Engram’s health; a hamstring injury held him back this spring. But in the pocket where you’ll be considering Engram, upside is probably more important than floor. When you get into the fifth or sixth round, Engram deserves a long look.” [ Yahoo fantasy preview: New York Giants ] Odell Beckham Jr. had 622 targets in his 59 Giants games, including 124 in 12 games last season. The Giants will have to shift those 10-plus targets per game around to others. Golden Tate will get his share, of course. But it’s also a big opportunity for Sterling Shepard and tight end Evan Engram. Shepard and Engram have talent, and now they should have an opportunity to break out. WHICH POSITION GROUP HAS IMPROVED THE MOST? Thanks to two trades with the Browns, the Giants might have improved two units (though obviously at a big cost to receiver and edge rusher). Getting Kevin Zeitler from Cleveland, and also signing Mike Remmers to help at tackle, should complete a long build on the offensive line. Assuming left tackle Nate Solder is fine after minor ankle surgery in May to remove bone spurs, the Giants line has transformed from a weakness to a potential strength. Surprisingly, the Giants secondary might be better too, despite losing Landon Collins. Peppers could replace most or all of what Collins did. Janoris Jenkins didn’t have a great 2018 but he still has No. 1 cornerback ability. He’s joined by first-round pick Deandre Baker. And if Antoine Bethea has another solid season left at age 35, the Giants could be strong in the defensive backfield. If Eli Manning plays at his 2018 level and not like he did in 2016-17, maybe the Giants won’t be so bad. There’s talent on offense, especially if someone can emerge as a big-play threat now that Odell Beckham Jr. is gone. The defense needs a pass rusher, but if Lorenzo Carter and Markus Golden play well, the rest of the defense looks good. If the Giants have an overcorrection in their luck in close games, could they be in the playoff race? The Giants quarterback situation could be bad. Eli Manning is 38. Daniel Jones might have been severely over-drafted — it’s possible not all the experts are wrong on him. And good luck finding patience for Jones’ development in that market. It’s a Giants team that was 5–11 last season, traded one of the most talented receivers we have ever seen, and could get much worse quarterback play than last season. Maybe this ranking is too low. But the two most important positions on an NFL team are quarterback and pass rusher, and it’s possible the Giants will be among the NFL’s worst at both spots. There are reasonable, rosy scenarios for the 2019 Giants, but it seems more likely they’re in for another losing season and another high draft pick as Gettleman implements his plan. 32. Arizona Cardinals 31. Miami Dolphins 30. Oakland Raiders – – – – – – – Frank Schwab is a writer for Yahoo Sports. Have a tip? Email him at shutdown.corner@yahoo.com or follow him on Twitter! Follow @YahooSchwab 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 |
Taiwan's Richest Man Terry Gou Says He Is Stepping Down as Foxconn Chair
Terry Gou, chairman of Foxconn, the world’s largest contract assembler of consumer electronics for companies such asApple, said Friday he was stepping down amid speculation he could be planning a presidential run next year.
Gou, 68, made the announcement at the company’s annual shareholders meeting, where he was surrounded by an enthusiastic crowd while exiting the meeting room.
Foxconn board members elected Young Liu, the head of the Foxconn’s semiconductor division, as Gou’s successor.
Gou has yet to formally announce his candidacy and he did not mention it at the meeting.
His resignation, effective July 1, is the latest challenge for Foxconn, which has been caught up in the U.S.-China trade war and a U.S. ban on supplying technology components to Chinese tech giant Huawei over security concerns.
Gou told journalists he had urged Apple to move its assembly line to high-tech Taiwan, amid speculation Apple has requested that its largest suppliers, including Foxconn, consider a major shift out of China.
“Speaking on behalf of Taiwan, I am urging Apple to move (its assembly line) to Taiwan. I am urging Apple to come to Taiwan. I think this is very possible,” Gou said.
“Taiwan holds a very important position in this current U.S.-China trade dispute, in this global economy reform. Taiwan is important for its technologies, geographical location, protection on intellectual property and application of new technologies.”
Gou recently has seemed to shift his focus toward a presidential bid, most likely for the opposition, China-friendly Nationalist Party. He would be bringing a pro-business and pro-China stance to what is expected to be a crowded field.
Gou ranks among Taiwan’s richest people with a fortune estimated by Forbes at $7.8 billion. He says the Nationalists should hold debates to select their candidate.
His candidacy would be the first for a Taiwan business mogul and may appeal to Taiwanese dissatisfied with stagnating incomes who would like to see a different, more business-oriented style of leadership.
Incumbent President Tsai Ing-wen has been hampered by low public approval ratings and a diplomatic embargo imposed by China, which claims the island as its own territory.
However, Gou is likely to face criticism from China skeptics in Taiwan over Foxconn’s 12 factories in nine Chinese cities and his close ties to the Chinese government.
Foxconn announced in 2017, to much fanfare, that it planned to invest $10 billion in the U.S. state of Wisconsin and hire 13,000 people to build an LCD factory that could make screens for televisions and a variety of other devices.
After waffling earlier this year on the company’s intentions, Gou recommitted to the project in February after a meeting with President Donald Trump.
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