Split (1)

train · ~16.3M rows (showing the first 2.16M)

text stringlengths 1 675k ⌀
Lords of the Ring: Can 'smart' ring give BlackRock fund managers the edge? By Virginia Furness LONDON (Reuters) - After years of using the internet, satellites, algos and other innovations to mine 'Big Data' for that edge over rivals, the world's biggest investment firm is trialing a gizmo that puts the focus back on humans -- its own portfolio managers. In an world where marginal gains can translate into millions of dollars of returns BlackRock, which manages $6.5 trillion in assets, is betting that healthier, happier fund managers make smarter investment decisions -- and wearable smart technology can help optimize their performance. Several fund managers from BlackRock's European equities team now wear smart-tech rings that collate data on their sleep patterns, heart rate and other health indicators, according to three sources at the firm who are familiar with the trial. The large, black ring is made by Oura, an Finland-based company which describes the $300 ring on its website as "a secret weapon for personal improvement". The ring is worn by managers on a voluntary basis and can be removed at any time, the sources told Reuters. The ring can gauge how much they have slept, or if they have an elevated heart rate indicating higher stress levels, when making an investment decision, one source said. The project is managed by a trained psychologist who heads BlackRock's behavioral finance initiative and aims to help portfolio managers manage stress, sleep patterns and activity levels, according to a source familiar with the process. By participating in the scheme, managers consent to share their data with BlackRock's behavioral finance team, though it may be shared more broadly in an aggregate or anonymized format. "Individuals control and own their own data, and who sees it," the source said. "It isn't just about performance and risk taking but about their own wellness." The ring was introduced in January and is currently worn by up to 10 managers, the source said. The firm could roll it out further depending on the success of the trial, the person added. The initiative comes at a time of unprecedented change for the industry, as tougher regulations and a squeeze on fees pressure money managers to stand out from rivals. But it also shows big asset managers such as BlackRock continue to invest in optimizing human performance, despite the growing popularity of 'passive' investing, which is based on index-tracking, with minimum buying and selling. But while BlackRock stresses the prime motivation is promoting wellness, not everyone might welcome a scheme that collects employees' personal data, especially in an industry where performance is already meticulously tracked. BlackRock money managers currently use a system called 'Aladdin' which provides the risk-management and trading tools as well as analytics to help them make investment decisions. Whether the smart ring has actually sharpened managers' investment decisions remains to be seen. The sources said the results were not yet available. (Reporting by Virginia Furness; additional reporting by Abhinav Ramnarayan and Simon Jessop; Editing by Toby Chopra)
Bank ETFs: Big Dividend Boosts Could be on the Way This article was originally published onETFTrends.com. The results of the Federal Reserve’s Comprehensive Capital Analysis and Review, or CCAR, are expected to be released on June 27 and that could lead to significant improvements in shareholder rewards at some of the nation's largest banks. That could benefit exchange traded funds, such as theInvesco KBW Bank ETF (KBWB),SPDR S&P Bank ETF (KBE) and theFinancial Select Sector SPDR (XLF) . “The results of the stress tests, which examine the capital adequacy of each company, are mandated by the Dodd-Frank Act. During the financial crisis of a decade ago, there was a liquidity squeeze and some banks didn’t have enough capital to survive. Both tests were created in response to those events,”reports Lawrence Strauss for Barron's. Since the end of the global financial crisis, during which many stocks were egregious dividend offenders, the financial services sector has been a leader in terms of domestic dividend growth. That trend is expected to continue. Strong Growth for Financial Firms For investors, the good news is bank stocks’ fundamentals are improving, risks with the group are declining and valuations are low. Additionally, the sector’s valuations are significantly depressed following last year’s slide. While valuations for financials are low, earnings growth remains solid. “CCAR includes both a quantitative evaluation of a firm’s capital adequacy under stress and a qualitative assessment of its abilities to determine its capital needs,” according to Barron's. “It takes into account the actual capital plans, including dividends and buybacks, that the individual firms are seeking. Failing this test would likely lead to restrictions on a bank’s dividend payments.” A flattening yield curve previously fueled outflows in the financial sector, but a stable yield curve and better-than-expected earnings growth helped reignite investment demand for the sector over April. Financials in particular appear attractive on an absolute and relative basis to the S&P 500. XLF, the largest financial services ETF by assets, has a dividend yield of just 2.01%. “In a recent research note, Goldman Sachs cited a survey showing that investors 'once again anticipate strong dividend growth' for the large financial firms,” reports Barron's. For more investing trends, visitETFtrends.com. POPULAR ARTICLES AND RESOURCES FROM ETFTRENDS.COM • SPY ETF Quote • VOO ETF Quote • QQQ ETF Quote • VTI ETF Quote • JNUG ETF Quote • Top 34 Gold ETFs • Top 34 Oil ETFs • Top 57 Financials ETFs • The Secure Act and Retirement Accounts • Pet Food IPO Chewy May Put Amazon On Its Heels • Mark Cuban: Success Comes From Outworking Everyone • A Piece Of Advice From Warren Buffett • CNBC’s ETF Edge Panel Discusses Non-Transparent ETFs READ MORE AT ETFTRENDS.COM >
Coronation Street star Daniel Brocklebank reveals he 'calls out' homophobic commenters online (L-R) Daniel Brocklebank and his mother Tracy Brocklebank attend The British Soap Awards at The Lowry Theatre on June 3, 2017 in Manchester Coronation Street actor Daniel Brocklebank has revealed how he deals with homophobic trolls online. The actor, who plays Billy Mayhew on the ITV soap, was guesting on Loose Women where he revealed that he’s received homophobic comments about his kissing scenes on the show. He said: “On social media, it’s unbelievable. “I do highlight it, not all of it actually, but I think it’s important to let people know it’s still going on. Read more: Former Corrie star Christopher Quinten proposes to 21-year-old stripper girlfriend LONDON, ENGLAND - NOVEMBER 29: (L-R) Daniel Brocklebank, Georgia Taylor and Shayne Ward attend the Virgin Money Giving Mind Media Awards 2018 in London, England “The UK at large is a very accepting country, we’re very lucky here, when you consider what’s happening in Brunei today, but then of course we have arguments recently about whether LGBT should be discussed in schools. “Section 28 was repealed in 2003, so it’s surprising that 16 years later we’re still having those sort of discussions. “If children are being taught about families, then in my opinion they should be taught about all sorts of families. It’s not about sex education, it’s about life education.” Brocklebank said that he did feel a duty to speak out: “It is a responsibility. I’m a gay man myself anyway so I feel that there is a responsibility. Read more: Lorraine Kelly's 'Coronation Street' cameo revealed LONDON - Actors (L-R) Daniel Brocklebank, Charlie Kemp and Liam O'Brien arrive at the Inside Soap Awards 2006 in London, England “I’m in the public eye therefore my voice probably reaches further than others, and I do feel that there is a level of responsibility there to highlight these things are still going on. “But like you say, soaps are incredibly powerful and I think what we can do with these storylines is encourage people to have conversations about subjects that people might feel a little uncomfortable bringing up themselves. “Obviously it’s about entertainment but it is about education and if we can get a message across to people as well, then all the better.” Brocklebank recently confronted a viewer making homophobic remarks online. They said that that there should have been a pre-show warning: “[There are] warnings about swearing, but not two blokes snogging.” Story continues The commenter added that they’d felt uncomfortable watching the scenes with a 10-year-old relative who asked ‘why’ it had happened. Brocklebank replied: “Would you have the same opinion if it were a man & a woman kissing? How sad that a 10 year old had to learn that relationships can come in many varieties from television.”
Refinery fire, Iran tensions could drive up oil and gas prices The explosion and fire at the Philadelphia Energy Solutions refinery in Philadelphia on Friday could drive up gas prices across the East Coast, says Ashley Petersen , senior oil market analyst at Stratas Advisors. Gasoline futures ( RB=F ) were up more than 3% Friday afternoon. “We don’t have a lot of gasoline production capacity on the East Coast,” she told Yahoo Finance’s Alexis Christoforous and Brian Sozzi on “The First Trade.” “This was one of the few refineries that did make gasoline and jet fuel, so those prices could see a spike.” The refinery complex is the largest on the eastern seaboard, and the company says it can process upwards of 335,000 barrels of crude oil per day. Officials believe the fire began in a vat of butane that exploded. Eyewitnesses reported feeling the blast as far away as New Jersey. The explosion puts pressure on an oil market already being hit by growing tensions with Iran. President Trump said he cancelled a planned strike on Iranian targets Thursday, writing in a tweet that it was “not proportionate” as retaliation for the country shooting down a drone. Flames and smoke emerge from the Philadelphia Energy Solutions Refining Complex in Philadelphia, Friday, June 21, 2019. (AP Photo/Matt Rourke) That’s helped temper the steady rise in crude oil , which spiked about 10% this week alone. “We’ve seen these escalating tensions, but we have seen a surprising amount of restraint,” Petersen said. “I definitely think we’re going to see more disruptions throughout the summer, but hopefully it stays more a war of words than anything else.” Still, it sets up a dilemma for OPEC as the group gears up for its next meeting on July 1. “Several members of the agreement want to stop cutting production,” Petersen said. “Prices are a little bit higher – although that’s because of geopolitics primarily – and they have to convince members to sort of hold the line and continue to keep those volumes in the ground.” Iran has repeatedly threatened to shut the Strait of Hormuz, the key shipping route for oil leaving the Persian Gulf. Petersen doubts that will happen because it will hurt Iran as much or more than it would hurt the west. Story continues “They could do it, and that would have a really detrimental impact, but they’d also be shutting off their own exports,” she said. “They don’t have a lot going out, so why would they stop what little they are managing to get on the water and to paying customers?” Read more: Why 'we can't stop' with just making Facebook split up Why Trump's Mexico tariff moves will drive up the cost of spark plugs Why companies like Uber need to walk the fine line between 'magic and creepy' Read the latest financial and business news from Yahoo Finance Follow Yahoo Finance on Twitter , Facebook , Instagram , Flipboard , LinkedIn , YouTube , and reddit .
Summer Snow In The Rockies Heavy snow in parts of the Rockies:It'll be a winter wonderland of sorts in some of the high elevations of the Rocky Mountains today and tonight. The heaviest snowfall will probably occur in parts of northwestern and north-central Colorado, possibly slowing down drivers going over mountain passes on I-70 west of Denver. The National Weather Service (NWS) has issued aWinter Weather Advisory, mainly for tonight, which includes Rocky Mountain National Park and Breckenridge where up to 10 inches could pile up above 10,000 feet. Heavy snowfall continues this morning in some parts of the Bitterroot, Beartooth and Crazy mountains in western and southwestern Montana. Before fading this afternoon, totals will approach 12 inches above 6,000 feet. Most of I-90 through the region should be okay, but delays are possible on other routes going over Battle Ridge, Kings Hill and Targhee passes. Stormy weather in several areas:Severe thunderstorms will be scattered from the Dakotas to Denver, and all the way to Nashville. Drivers should expect minor to moderate delays in some areas due to hail, strong winds and/or flash flooding. Isolated tornadoes could pop up, too. Fire danger:Because of hot and very dry conditions, the risk for more wildfires continues in northern California, as well as from eastern Arizona into New Mexico. This includes the Sacramento, Phoenix, Albuquerque and Santa Fe metro areas. The NWS has postedRed Flag Warningsacross the region. Image Sourced by Pixabay See more from Benzinga • MSC Loses Preferred Customs Status Over Cocaine Bust On Ship • Port Report: Maersk Tests Waters For Carbon-Neutral Shipping • Slync's Logistics Orchestration: Where Data And Action Meet © 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
7,000 Dogs Are Registered to Come to 'Work' at Amazon's Headquarters Amazonhas gone to the dogs. And most employees seem just fine with that. The Seattle-based retail giant’s pet-friendly policy is hardly a secret, but more and more employees are taking advantage of it these days.Over 7,000 dogsare registered to come to work at the company’s headquarters campus. That’s up from 6,000 a year ago. The canine to employee ratio at the Seattle offices is 1:7, a number that’s even more impressive when you consider that 49,000 people work at Amazon’s headquarters. Of course, Seattle is an incredibly dog friendly town. Canines outnumber children in the city. Amazontopped a recent listfrom Rover.com, the world’s largestnetwork of pet sitters and dog walkers, of the best dog friendly offices in America. The ranking cited company’s “on-campus dog park and plenty of free poop bags and treats” That same study found that over 75% of employees who are allowed to bring their dogs to work are more likely to stay with their current employer. Pooches in offices also reduce stress and increase productivity. Of course, not every one of those 7,000 dogs shows up every day. Typically, there are over 800 pups on campus each day. And the perks for them are nearly as good as they are for employees. Amazon’s dog-owning employees can buy lunches ranging from flank steak to pet-friendly, cream-filled cannolis at Just Food for Dogs. And when their humans have to go into meetings, the pooches head to in-house doggy day-care, where they can also be pampered. —Thefriendliest and most welcomingworkplaces for dogs —How anentry-level UX designer at Amazongot her foot in the door —What it’s like to work anentry-level job at Madewell Corporate —Why companies are hiring more part-time professionals —Listen to our new audio briefing,Fortune500 Daily FollowFortuneon Flipboardto stay up-to-date on the latest news and analysis.
Have Insiders Been Selling The Interpublic Group of Companies, Inc. (NYSE:IPG) Shares? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 before you buy or sellThe Interpublic Group of Companies, Inc.(NYSE:IPG), you may well want to know whether insiders have been buying or selling. It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, 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. 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 Interpublic Group of Companies Over the last year, we can see that the biggest insider sale was by the Chairman & CEO, Michael Roth, for US$4.6m worth of shares, at about US$22.95 per share. So we know that an insider sold shares at around the present share price of US$22.48. While we don't usually like to see insider selling, it's more concerning if the sales take price at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. Happily, we note that in the last year insiders paid US$400k for 17300 shares. But insiders sold 420k shares worth US$9.6m. Over the last year we saw more insider selling of Interpublic Group of Companies shares, than buying. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date! If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying. Over the last quarter, Interpublic Group of Companies insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$400k worth of shares. This could be interpreted as suggesting a positive outlook. Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Interpublic Group of Companies insiders own 0.7% of the company, worth about US$61m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders. It is good to see recent purchasing. On the other hand the transaction history, over the last year, isn't so positive. We don't take much heart from transactions by Interpublic Group of Companies insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. In short they are likely aligned with shareholders. Of course,the future is what matters most. So if you are interested in Interpublic Group of Companies, you should check out thisfreereport on analyst forecasts for the company. But note:Interpublic Group of Companies may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
How bad is bubble tea? Can leftover spaghetti really kill you ? Can you actually cough up a blood clot in the shape of your lung ? In Yahoo Lifestyle Canada ‘s newest series, What The Health ?!, we ask doctors to weigh in on odd health news stories and set the record straight. Be sure to check back every Friday for the latest. Getty Images Bubble tea is bursting in popularity around the world. But the drink also made a young girl feel as if her stomach was about to pop. A 14-year-old living in Zhejiang, China, went to hospital after five days of stomach pain and constipation. A CT scan showed she had more than 100 "unusual spherical shadows" in her abdomen, according to Shaoxing News . Those spheres turned out to be undigested bubble tea balls. The teen claimed she had only consumed one cup of the sweet drink, also known as boba tea, but doctors suspected she likely had consumed far more than that but didn’t want to say so for fear of getting into trouble by her parents. ALSO SEE: What the Health?! Woman's stroke misdiagnosed as tonsillitis Bubble tea is a Taiwanese beverage made with iced tea, milk, fruit, flavourings, sugar (or high-fructose corn syrup) and small balls made of tapioca, a starch extracted from cassava root, or yuca. Also known as tapioca pearls, those balls are usually black or white and slurped up with a fat straw and chewed, having a consistency similar to gummy bears. Tapioca consists mainly of carbohydrates and has texture resembling that of cornstarch. It’s commonly used to make pudding and as a thickening agent in many foods and can also be made into flour used in gluten-free bread. What’s curious about the young girl’s case is that tapioca pearls wouldn’t likely show up on a CT scan unless they contained some kind of additive, possibly inedible and uncommonly found in North America, according to a Snopes report. She was given laxatives and sent home. Most people won’t ever end up in the emergency room from bubble tea, health experts say. It’s likely the teen simply consumed far too much of it. Story continues ALSO SEE: What The Health?! Multiple Hawaii tourists infected by rare parasite: What is rat lungworm disease? “Tapioca itself is an easily digestible starch,” says registered dietitian Andrea Hardy, owner of Calgary’s Ignite Nutrition Inc. “I would not expect it to cause a blockage or digestive issues in a healthy individual. However, other ingredients in certain types of bubbles such as fibre could have contributed to the reports of constipation. While fibre can act as a laxative, too much fibre, especially if your body isn’t used to it, can also cause constipation. “You’d be surprised how many emergency visits there are for constipation each year,” she adds. “Being full of stool can be painful.” What concerns health experts most about bubble tea is its high sugar and fat content and low nutritional value. In fact, bubble tea has the potential to further exacerbate the childhood obesity epidemic, according to a 2017 study published in the journal Food Science and Nutrition . The study found that a 16‐ounce serving of bubble tea contains between 200 and 450 calories, depending on the contents, and exceeds the upper limit of added sugar intake recommended by the 2015 US Dietary Guidelines Advisory Committee. Sometimes, other ingredients are added to boba drinks, such as egg pudding and jelly. ALSO SEE: What The Health?! Woman's 'dementia' was actually a vitamin deficiency A 32-ounce serving with jelly and egg pudding easily exceeds 500 calories and supplies more than 250 per cent and 384 per cent of the recommended maximum daily intake of sugar for men and women, respectively. Vancouver registered dietitian Cristina Sutter, a sport dietitian in private practice, recommends people who enjoy bubble tea to drink it in moderation. “I would compare it a little bit to a Slurpee,” Sutter says. “We had Slurpees in our childhood; we were all guilty of having them once in a while. But having it regularly, once a week, that’s probably a little bit too much. In that girl’s case, it sounds like it was just too much for her little system.” Sutter notes, too, that it’s no wonder the 14-year-old girl was in so much discomfort due to several days of not having a bowel movement. “Constipation every day is not healthy or normal,” Sutter says. “It can cause a great deal of abdominal pain and distress. It affects how you feel: you might feel too bloated and full to eat a good meal. A dietitian or a doctor can give you suggestions to fix that. It’s especially important to address it early in kids, who might suffer in silence.” Let us know what you think by commenting below and tweeting @ YahooStyleCA! Follow us on Twitter and Instagram .
When The Global Cannabis Shake-out Comes, Will Tilray Still Be A Leader? Tilray(NASDAQ:TLRY) CFO Mark Castaneda believes “only three or four large players” will control 80% of the global cannabis market with thousands of companies fighting for the remaining 20% market share. So, you can forget about the global cannabis market benefiting lots of different companies.
NY state Senate confirms Linda Lacewell as new chief of financial regulator June 21 (Reuters) - New York State Department of Financial Services on Friday said https://on.ny.gov/2Y6m3rM the state's Senate has confirmed Linda Lacewell as the financial regulator's new superintendent. New York Governor Andrew Cuomo, in January, nominated Lacewell, his former chief of staff, to head the regulator, which oversees banking and insurance in the state. Lacewell has served as acting superintendent since February. Since stepping into the role Lacewell has raised concerns about the impact of technology on finance. In April, Lacewell said she is concerned that the complex technology used by banks and insurers to make business decisions could inadvertently discriminate against some consumers. [https://reut.rs/2JcujQT ] Lacewell replaces Maria Vullo, who had been the superintendent since January 2016. (Reporting by Bharath Manjesh in Bengaluru; Editing by Shailesh Kuber)
Naspers delays multi-billion euros internet float after admin error By Nqobile Dludla JOHANNESBURG (Reuters) - South Africa's Naspers has been forced to delay the multi-billion euro flotation of its international internet assets, including its lucrative stake in China's Tencent, after an admin error by a third party involved in the float. The company said a shareholders' meeting in Cape Town on June 28 to approve the flotation on Euronext Amsterdam, with a secondary listing on the Johannesburg Stock Exchange (JSE), had been cancelled and reconvened for Aug. 23. The listing of the new company, to be called Prosus, has been moved to September from July 17. Naspers said the third-party error meant some postal copies of the resolution for the meeting had been wrongly addressed. It did not name the provider involved or say if any compensation would be sought. "It was outside our control but still unfortunate", Naspers Chief Executive Bob Van Dijk told reporters on a conference call. "We think from a governance point of view it's extremely important we treat and inform our shareholders well, and we felt with this mistake, maybe people are still informed, but we wanted to take no chance." The flotation of the business, with assets valued at more than 100 billion euros ($112 billion), is motivated by the value of its 31.2 percent Tencent stake, worth around 100 billion Hong Kong dollars, and which has made Naspers' valuation account for more than 25 percent of the JSE's Top 40 share index. That makes it problematic for South African pension funds and other investors in Africa to buy Naspers shares or South African indexes without disproportionate exposure to Tencent, one of China's biggest social media and gaming groups. E-COMMERCE HOLDINGS Naspers plans to retain a 73% stake in the new company, which will hold assets also including its OLX classified businesses in India and Brazil, and its U.S. business letgo. Naspers also on Friday reported a 25% rise in annual core headline earnings per share, thanks to reduced losses at its e-commerce business. The company, whose e-commerce holdings cover areas such as food delivery, classified ads and online retail, said core headline earnings per share from continuing operations reached 694 cents in the year through March, compared with 553 cents the year before. Core headline EPS is Naspers' main profit measure that strips out non-operational and one-off items. Headline earnings rose 26% to $3 billion. Naspers said its e-commerce division which houses assets such as OLX narrowed its trading loss (at the EBITDA level) by 14%, or 15% in local currency and adjusted for acquisitions and disposals, to $556 million. "Trading losses in e-commerce reduced significantly with the classifieds business continuing its margin improvement to become profitable in the aggregate for the year ended 31 March 2019," it said in a statement. Other e-commerce assets also continued to expand, with online retail trading losses almost halving and the Payments and Fintech business narrowing its trading loss margin to 12% from 22% last year. The internet business, which houses Tencent, saw trading profit rise 11% as many e-commerce units boosted profitability and Tencent delivered a stable performance, it said. Shares in Naspers closed 1.1% weaker at 3,441 rand. ($1 = 14.3200 rand) ($1 = 7.8097 Hong Kong dollars) (Reporting by Nqobile Dludla; Additional reporting by Toby Sterling in Amsterdam; Editing by Susan Fenton and David Holmes)
How Much Are The Interpublic Group of Companies, Inc. (NYSE:IPG) Insiders Taking Off The Table? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sellThe Interpublic Group of Companies, Inc.(NYSE:IPG), you may well want to know whether insiders have been buying or selling. Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required. Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.' View our latest analysis for Interpublic Group of Companies In the last twelve months, the biggest single sale by an insider was when the Chairman & CEO, Michael Roth, sold US$4.6m worth of shares at a price of US$22.95 per share. That means that an insider was selling shares at around the current price of US$22.48. While we don't usually like to see insider selling, it's more concerning if the sales take price at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Happily, we note that in the last year insiders paid US$400k for 17300 shares. On the other hand they divested 420k shares, for US$9.6m. In total, Interpublic Group of Companies insiders sold more 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date! If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying. Over the last quarter, Interpublic Group of Companies insiders have spent a meaningful amount on shares. In total, insiders bought US$400k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points. Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Interpublic Group of Companies insiders own about US$61m worth of shares. That equates to 0.7% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders. It is good to see recent purchasing. But we can't say the same for the transactions over the last 12 months. We don't take much heart from transactions by Interpublic Group of Companies insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. Overall they seem reasonably aligned. Therefore, you should should definitely take a look at thisFREEreport showing analyst forecasts for Interpublic Group of Companies. 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.
Global watchdog give Pakistan until October to curb terror financing PARIS (Reuters) - Pakistan has until October to improve its counter-terror financing operations in line with an internationally agreed action plan or face actions against it, a global watchdog said on Friday. The Financial Action Task Force said it was concerned that Pakistan had failed to complete the action plan first by a January deadline and then again by a May deadline. "The FATF strongly urges Pakistan to swiftly complete its action plan by October 2019 when the last set of action plan items are set to expire," the FATF said in a statement. "Otherwise, the FATF will decide the next step at that time for insufficient progress," it said after a meeting in Orlando, Florida. The FATF already has Pakistan on its "grey list" of countries with inadequate controls over curbing money laundering and terrorism financing. But India wants Pakistan blacklisted, which would likely result in sanctions. (Reporting by Leigh Thomas;editing by John Irish)
CarMax Inc (KMX) Q1 2020 Earnings Call Transcript Image source: The Motley Fool. CarMax Inc(NYSE: KMX)Q1 2020 Earnings CallJun 21, 2019,9:00 a.m. ET • Prepared Remarks • Questions and Answers • Call Participants Operator Good morning. My name is Tiffany, and I will be your conference operator today. At this time, I would like to welcome everyone to the CarMax Fiscal 2020 First Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Thank you. I would now like to turn the call over to Katharine Kenny, Vice President, Investor Relations. Katharine Kenny--Vice President, Investor Relations Good morning. Thank you, Tiffany. Thank you all for joining our fiscal 2020 first quarter earnings conference call. I'm here as usual with Bill Nash, our President and Chief Executive Officer, and Tom Reedy, our Executive Vice President and CFO. Let me remind you that our statements today regarding the Company's future business plans, prospects and financial performance are forward-looking statements that we make pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current knowledge and assumptions about future events that involve risks and uncertainties that could cause actual results to differ materially from our expectations. In providing projections and other forward-looking statements, the Company disclaims any intent or obligation to update them. For additional information on important factors that could affect these expectations, please see the Company's Annual Report on Form 10-K for the fiscal year ended February 28, 2019 filed with the SEC. Lastly and last time, let me thank you in advance for asking one question, and getting back in the queue for follow-up. Thank you, Bill. Bill Nash--President and Chief Executive Officer Thank you, Katharine. Good morning, everyone and thank you for joining us today. Before I get started, I do want to take a moment to personally thank Katharine, who many of you know is retiring at the end of July. So this is her last call. Katharine has run a very successful IR program for us over the past 13 years, and I'm sure that you all agree that she will be deeply missed. Katharine, we wish you the best in your retirement and I hope it exceeds your expectations. I'd also like to introduce Stacy Frole, who's similar to Katharine, has a very strong IR background and as many of you already know, Katharine and Stacy have been working closely together over the last month to ensure a smooth transition in our Investor Relations communication. So welcome Stacy, and again congratulations Katharine. Katharine Kenny--Vice President, Investor Relations Thanks, Bill. Bill Nash--President and Chief Executive Officer For today's call, I'll start with our first quarter highlights, I will then turn the call over to Tom to discuss our financials in more detail before providing an update on our omni-channel rollout, which continues to perform very well, then we will open it up for your questions. As you read in earnings release this morning, we are pleased to announce a very strong start to fiscal 2020 with net earnings growth of 11.8% and EPS up 19.5%. We achieved a 9.5% increase in used unit comps and a 13% increase in our total used unit sold. This strength in retail is the result of a combination of many factors, including our solid execution, which was supported by enhancements to the customer experience, a robust lending environment and a delay of February tax refunds into our first quarter. Conversion for the quarter increased year-over-year, while store traffic remained relatively unchanged. Our website traffic grew 15% from a year ago. Gross profit per unit for the quarter was consistent with prior year at $2,215. We continue to drive efficiencies in our inventory management systems, allowing us to maintain margins, while offering attractive prices. In addition to strong retail sales in the first quarter, we reported higher wholesale units, with volume up 6% for the quarter versus a year ago. This was the result of an all-time record buy-rate as well as the growth in our store base year-over-year. Gross profit per wholesale unit was $1,043, an increase of 3.1% compared with last year. This strong wholesale performance likely benefited from the delay in tax refunds as well. As a percentage of sales 0- to 4-year-old vehicles decreased less than 1% to 76% versus 77% in the first quarter of last year. Total SUVs and trucks accounted for about 46% of our sales, up from 43% this time last year. At this point, I'll turn it over to Tom. Tom Reedy--Executive Vice President and Chief Financial Officer Thanks, Bill and good morning, everybody. For the quarter, we saw strong performance in other gross profit, which increased 11.6%. This was largely driven by the 11.2% increase in EPP net revenues, reflecting the combined effects of strong used volume growth, along with increased penetration and margins, which were partially offset by an increase in the cancellation reserve. Also remember in last year's first quarter, EPP revenues included $4 million related to the adoption of the new revenue recognition standard. On the SG&A front, expenses for the quarter increased 11.7% to $490 million. Factors impacting our SG&A spend included the opening of 18 stores since the beginning of the first quarter last year, which represents a 10% growth in our store base, higher variable costs associated with our strong sales growth, a $14 million or $46 per unit increase in share-based compensation expense as well as continued investment in technology platforms and digital initiatives. SG&A per used unit with $2,183, a $26 decrease year-over-year. We're pleased to show leverage in the midst of substantial investment and the $46 per unit increase in share based compensation. While the quarter did benefit from some timing differences, we were able to offset a portion of the growth in spend with efficiencies and we'll continue to focus our efforts on this. Our provision for income taxes benefited from the impact of stock option settlements by $3.1 million. This translates to an 89 basis point reduction in our effective tax rate for the quarter. Now I'll turn to CAF and customer finance. In the quarter, we saw higher application volume and strong performance across all credit tiers. Tier 2 accounted for 20.3% of sales compared with 17% last year, while Tier 3 accounted for 11.5% versus 10.9% the year ago. CAF penetration, net of three-day payoffs was 41.4% compared with 42.9% in last year's first quarter. While we saw increased allocations across the board, it was definitely more pronounced in the Tier 2 and Tier 3 space. Year-over-year CAF net loans originated grew by 9.7% to $1.8 billion as the increase in used car sold was somewhat offset by the decrease in CAF net penetration rates. For loans originated during the quarter, the weighted average contract rate charged to customers increased to 8.9% compared with 8.4% a year ago and 8.7% in the fourth quarter. CAF income of $116 million was up just slightly compared with the first quarter last year. The impact of growth in average managed receivables was offset by a $7 million increase in the provision for loan losses and a slight compression in portfolio interest margin. This margin was 5.6% versus 5.7% a year ago and 5.5% in Q4. The provision for loan losses was $38 million in Q1 versus $31 million in the prior-year period. The increase arises from portfolio growth, along with some unfavorable loss experience versus our expectations, which translates into a related increase in the overall allowance for losses. The allowance at $147 million represents 1.14% of any managed receivables versus 1.13% in Q1 of last year and 1.10% in Q4. While the allowance has increased a modest 4 basis points sequentially, it remains well within our range of expectations given our origination strategy and portfolio mix. As we discussed last quarter, we are committed to enhancing shareholder value through continued investment in our associates, our business and our capital structure. During the quarter, we opened three stores, two in new markets Waco and McAllen, Texas and our second store in Memphis, Tennessee. Earlier in June, we opened our Atlanta customer experience center. Over the next 12 months, we're anticipating opening 14 more stores and two customer experience centers. During the first quarter, we repurchased approximately 3 million shares for $205 million. Since starting the stock buyback program in 2012, we returned more than $4.6 billion to shareholders and we have $1.9 billion remaining in current authorizations. Now, I'll turn the call back over to Bill. Bill Nash--President and Chief Executive Officer Thank you, Tom. As you look toward the future, we continue to believe the unique and powerful integration of our in-store and online capabilities provides us with a significant competitive advantage. And as consumers continue to do more online, it's important that we provide them with the ability to shop on their terms anywhere anytime. While we are still in the early stages, we are very pleased with the results in our Atlanta market. The strong performance we saw last quarter carried over into the first quarter. Once again, we saw double-digit comps and the Atlanta market continues to outperform the overall Company in both comp sales and appraisal buys. Our finance penetration is similar to the rest of the company, while MaxCare penetration is slightly lower. Home delivery continues to experience high conversion, although it remains a small percentage of our overall sales in Atlanta. As I mentioned last quarter, we believe our unique omni-channel experience could be more efficient than our current model. We do anticipate some inefficiencies in some of our operations in the near-term. However, we know that we will be able to improve as omni markets mature and our customer experience has become fully utilized. We continue to enhance our omni-channel capabilities and experiences for both our associates and customers based on their feedback and reactions. We remain confident that we are moving in the right direction and our omni-channel experience will be one of the key drivers of comp sales and market share growth going forward. Here are some specific updates on the progress of our roll out. The Atlanta customer experience center or CEC just opened this month and we will be opening one in Kansas City in late July. We're also in the process of working on a third location, which will open later this year. Over time, the three large CECs will each staff more than 300 associates. Having spent some time in our new Atlanta CEC, I'm convinced that this is the right solution for continuing to improve our customer experience. The technology is state-of-the-art and integrates well with our store systems. Our associates are excited and well positioned to focus on progressing the customer online and providing an exceptional experience. With the opening of the Atlanta CEC, we roll the omni-channel experience to the majority of our Florida stores earlier this month. Later this quarter, we will continue the rollout to new markets, including those in North Carolina and Virginia. We remain on track to provide our omni-channel experience to the majority of our customers by the end of fiscal year 2020. As I said on prior calls, to bring omni to life, we're leveraging the strengths of the CarMax model that we've built over the past 25 years, along with new technology and digital capabilities. This is an experience that we can tailor to each individual customer. This is the future of car buying. We're off to a great start and we're excited about the future. And at this point, we'll be glad to take your questions. Operator (Operator Instructions) Your first question comes from the line of Scot Ciccarelli with RBC Capital. Your line is open. Scot Ciccarelli--RBC Capital Markets -- Analyst Good morning, guys. Hi. I guess I was hoping you might be able to shed a little bit more light just regarding the inflection that we happened to see this quarter. I mean we had couple of quarters that may have been, I guess, a lot of people would term them as relatively underwhelming 3Q, 4Q and obviously, we're still early in the Atlanta rollout. You can't just point to omni-channel as what caused the inflection here. So if you can provide a more color on that, I think that'll be fantastic for the group. Thanks. Bill Nash--President and Chief Executive Officer Sure, Scott. So, in my prepared remarks, talked a little bit about tax rate funds lending environment, but let me give you a little bit more color. On the improved execution, we highlighted conversion to store did a phenomenal job primarily on the face-to-face conversion, but getting folks on the website into the store. So we had great conversion success. Our buyers did a phenomenal job on vehicle acquisition this quarter. Shipping logistics, we had some efficiencies we picked up there any time as we've said in the past, when we pick up these efficiencies, we generally are passing them along in price reductions. We had some improvements in the customer experience or our digital initiatives. The main things there -- I don't know if you've noticed, we have a new website that we have rolled out everywhere nationally and that's based off some feedback we've been learning in the omni markets. We have some new search experience with new improvements on our search experience that really focus on speed and navigation. And then, I think a couple other factors that played into this. We felt like the supply -- overall auction supply was up a little bit, which is a good thing for us and I think that was also reflected a little bit of movement in the new used car gap. So it really is a whole host of different factors, none of which, not any individual one was the majority of the left. Scot Ciccarelli--RBC Capital Markets -- Analyst If I were to try and break out kind of like the tax refunds, that's obviously a temporary phenomena. What was the -- how would you estimate the impact of the tax refund shift? Bill Nash--President and Chief Executive Officer Yeah like last quarter, I mean we thought we probably missed out on about a week's worth of tax refunds last quarter. So that we expected rolled into this quarter. Scot Ciccarelli--RBC Capital Markets -- Analyst Got it. Okay. Thanks, guys. Bill Nash--President and Chief Executive Officer Thank you. Operator Your next question comes from the line of Brian Nagel with Oppenheimer. Your line is open. Brian Nagel--Oppenheimer & Co. -- Analyst Hi, good morning. Thank you for taking my question. Congratulations on a nice quarter. Bill Nash--President and Chief Executive Officer Thank you, Brian. Brian Nagel--Oppenheimer & Co. -- Analyst So first off, Katharine, congrats on the retirement. It's been a pleasure working with you all these years. So, congratulations. Katharine Kenny--Vice President, Investor Relations Thank you, Brian. Brian Nagel--Oppenheimer & Co. -- Analyst And Stacy, welcome. Stacy Frole--Vice President, Investor Relations Thank you. Brian Nagel--Oppenheimer & Co. -- Analyst So I want to -- my question -- my one question. I want to maybe follow-up a bit on Scot's question. If you're looking at the significant inflection higher here in used car unit comps from Q4 to Q1, you did talk about in your prepared comments some of the shift in credit metrics. So the question I have is, to what extent if you look at the improvement in used car unit comps, to what extent did either in a seemingly more engaged group of lending partners or what -- in what appears to be maybe a little more -- a little looser credit extension on the point of CAF help used car unit comps? And then along those lines, I mean to the extent, what we see in CAF was that more of a conscious decision on the part of management or was that just a reflection of what was happening in the marketplace. Tom Reedy--Executive Vice President and Chief Financial Officer Yeah. So Brian, I'll hit your questions. One is the CAF has not changed its origination strategy material -- we're all -- I was testing, but as far as the quality and structure of the portfolio we are originating, it's been very consistent. When you see shift in the mix particularly about how CAF penetration is, that's usually a -- it's generally a byproduct of the mix of customers coming in. And as I mentioned in my prepared remarks, we did see application volume up for all credit qualities, but it's definitely more pronounced at the lower end. And so in general that's going to favor the Tier 2 and Tier 3 folks as far as their attach rate. Now that said, we've seen very solid performance from our partners both in the Tier 2 and Tier 3 space. I wouldn't say it's any different from what we've seen in the last -- saw last quarter and maybe in the third quarter, but Tier 2 definitely improved over the back half of last year. So on a year-over-year basis, we're seeing stronger conversion, and Tier 3 if you remember in the third quarter, we shifted some of the allocation of apps across our partners and so because of that we're seeing conversion higher year-over-year, but from a kind of sequential perspective, I think they're all performing about the same as earlier this year and firing on all cylinders and we're happy with their performance. Did that hit everything, Brian or I think you -- Brian Nagel--Oppenheimer & Co. -- Analyst Yeah. No, that definitely helps. So, I guess to sum it up though, as we look at -- again as we all try to make sense of what is clearly a significant acceleration in comps, just over the last few months, credit was not -- any shift in credit would not -- what you're saying is that, there's nothing dramatic happened the credit side to help that. Tom Reedy--Executive Vice President and Chief Financial Officer The only thing I would say is the strength of Tier 2 would definitely be a help on vis-a-vis last year because as you would imagine, as you go down the credit spectrum, a customer who gets the CAF offer is much more likely to convert to a sale than a customer who gets a Tier 2 offer and that's more likely to convert than a customer who gets a Tier 3 offer. So there are -- with the fact that Tier 2 seeing more volume and there's -- they're incrementally a little bit stronger year-over-year, you would expect that some of those that they approve that would have gone down to Tier 3 probably wouldn't have turned into a sale, but you can't -- there's so many moving parts that you really can't quantify it. Bill Nash--President and Chief Executive Officer Yeah, Brian. I was just reiterating, if you think about all the different factors, there was no one factor that was the majority of the left. Brian Nagel--Oppenheimer & Co. -- Analyst Guy, let me just -- (inaudible) on the Tier 2 piece that. So is there -- can we -- any more color on what changed there and then how -- as we think about now the balance of fiscal '19, how should we view or think about the sustainability of that? Bill Nash--President and Chief Executive Officer I think what I just said a little earlier over the back half of last year, we saw our lender performance. We define lender performance by what percent of applications that they see convert into a sale. So we saw that conversion increase over the back half of the last year and it's remained stable since. And obviously also there's more customer volume in that space, which favors them as well. And that we don't control. Brian Nagel--Oppenheimer & Co. -- Analyst Got it. Appreciate all the details. Congrats and thank you. Bill Nash--President and Chief Executive Officer Thanks, Brian. Operator Your next question comes from the line of Armintas Sinkevicius with Morgan Stanley. Your line is open. Armintas Sinkevicius--Morgan Stanley -- Analyst Good morning. Thank you for taking the question. Bill Nash--President and Chief Executive Officer Good morning. Armintas Sinkevicius--Morgan Stanley -- Analyst When I think about the commentary around Atlanta, double-digit comps again, back to back quarters now, and you continue to roll out the initiative, how should I think about how that compares versus a -- the traditional model. In other words as you roll out these stores, how should we be thinking about the lift that you would get from the omni-channel initiative using Atlanta as the template? Bill Nash--President and Chief Executive Officer Yeah, I guess the only thing I can confidently tell you is that, every time we go into a new market, the lift is going to be -- it's going to be different. And remember, when we rolled out Atlanta, we wasn't only -- the new experience and the new alternative delivery methods, but -- we had some new advertising, we had some expanded free transfers, we had some pricing center, a whole bunch of things. As we roll out into future markets, the only thing I would tell you is that, we'll be consistent among future markets is that we'll offer the new experience, the new website experience, the new alternative delivery methods and we'll absolutely step up in advertising. But beyond that, we'll be looking at each individual market and deciding what's best at the time. So it's really hard to take one market and kind of extrapolate that over all future markets. Armintas Sinkevicius--Morgan Stanley -- Analyst Okay, and then just one other one on the SG&A side. How should we think about the timing of the SG&A spend here in the second and third quarter? You opening up customer experience centers. How much of that is you're starting to see efficiencies at your store level or are we opening in the customer experience centers first and then there will be some natural attrition at the store level and also the cost of the grand openings, is there just any way we can contextualize the SG&A that would be helpful. Bill Nash--President and Chief Executive Officer Yeah, so first of all for this quarter, as Tom talked about earlier, we had some leverage. In other words, a little bit of timing in the advertising spend we would expect to pick up, but as far as the CECs are concerned, we're still ramping them up. We -- I wouldn't say we really realized much in the way of efficiencies between our CECs and our staffing in the store because we're going through a transition period where we're getting the staffing in the store lined up appropriately as we ramp up the CEC. So I think the optimization from the CECs, we have yet to see that. Armintas Sinkevicius--Morgan Stanley -- Analyst Okay, much appreciate it. Bill Nash--President and Chief Executive Officer Sure. Operator Your next question comes from the line of Sharon Zackfia with William Blair. Your line is open. Sharon Zackfia--William Blair & Company -- Analyst Hi, good morning. And I just want to say it's nice to see Katharine go out on a nice high comp there. So have a good retirement, Katharine. Katharine Kenny--Vice President, Investor Relations Thanks. Sharon Zackfia--William Blair & Company -- Analyst I guess a question around the CECs kind of following up. When you presumably roll out omni-channel across the whole country and I'd be interested in what the timing is on that. I know you said the majority of markets by next February, but kind of what the plan is for the rest. I mean how do you visualize how many CECs are necessary across the country to deliver this experience and then when we think about those start-up inefficiencies, Is it really just the labor of those 300 folks at the CECs that's causing kind of that three or four month inefficiency that I think you've even alluded to in the past? Bill Nash--President and Chief Executive Officer Yeah. Sharon, we think we believe at this point, I talked about the three big ones. We just opened up the first of the three big ones. We have two more that we're going to be opening up this year. We're going to -- I think we feel really good about those three hailing the bulk of the country. There will be some probably one-off small locations due to state regulations i.e. if you have to be in the state to do a selling activity, the CEC is considered selling activities, so you would have to have a location in those states. But I would think about those three as being the major ones that will -- that will lift the omni. As far as efficiencies, like I said last time, we would expect to take at least one person out of the store for every person that we add in the CEC. Now we've chosen to do that just through normal attrition. So there will be some inefficiencies by design in the early couple few months rolling it out because the day we turn on omni-channel, our stores are overstaffed because they no longer have to -- staff to handle office leaves and calls and progressing customers that way. So but I think for the most part, in most locations, we can work through that over like a two or three month period. And we're making sure that we take care of our associates during that time period. Sharon Zackfia--William Blair & Company -- Analyst Okay. Thank you. Bill Nash--President and Chief Executive Officer Thank you, Sharon. Operator Your next question comes from the line of Craig Kennison with Baird. Your line is open. Craig Kennison--Robert W. Baird & Co. -- Analyst Hi, good morning. Thanks for taking my questions. Katharine, you will be missed. Katharine Kenny--Vice President, Investor Relations Thanks, Craig. Craig Kennison--Robert W. Baird & Co. -- Analyst Bill, lots of focus on the omni-channel and disruption in the retail channel and that makes sense to me. Good reason for those questions. But there's also disruption unfolding in the wholesale channel. You've got more dealer to dealer digital platforms that are emerging there. How are you thinking strategically about the wholesale market and whether there's an opportunity to be as disruptive there? Bill Nash--President and Chief Executive Officer Yeah. It's a great question Craig and I think a lot of times people overlook the wholesale, but it's a huge business for us. And I think it's a huge competitive advantage just like with our retail customers, we want to make sure we give our wholesale dealers a great experience as well and so we're testing different things. For example, we've tested some online selling. Keep in mind of our average vehicle still 10 years old over 100,000 miles. There are a lot of dealers that still want to come and look at that. But, I think we're in a great position to continue to move and make changes in that space just like we are at retail. So it's one that we have really focused on this call here, but it's another one of the initiatives we have several things that we're working on to improve that part of the business as well. Craig Kennison--Robert W. Baird & Co. -- Analyst Thank you. Bill Nash--President and Chief Executive Officer Thank you. Operator Your next question comes from the line of Rick Nelson with Stephens, Inc. Your line is open. Nick Zangler--Stephens, Inc. -- Analyst Hey, guys. How's it going? This is Nick Zangler on for Rick. Congratulations to Katharine. Rick definitely sends his best in that regard. I want to just dig in a little bit on the Atlanta market quickly. The unit sales performance obviously double digits again. I'm curious if you'd be willing to share whether the spread or the lift, I guess, was maintained in this quarter versus last? Obviously last quarter you implied double digit comps. The total Company did a 2.8% (ph). With that spread that we saw, I mean I'd say 9.5% (ph) this quarter was the spread maintained within that market? Bill Nash--President and Chief Executive Officer Yeah, Nick what I would tell you is, we talked about the double-digit comps last quarter. We have them again this quarter. They did increase a little bit even over last quarter. So we feel really good about that. Nick Zangler--Stephens, Inc. -- Analyst Okay, great. And then just your general thoughts on tariff implications on demand for used vehicle unit sales. You believe that this could potentially be even a tailwind as used vehicles are perceived to be more affordable going forward? Thank you. Bill Nash--President and Chief Executive Officer Yeah, it's hard to tell at this point Nick. You probably know as much as we do. That's one that we'll stay close to. Obviously, we're a little bit less reliant on anything coming in from outside of the state. So theoretically you would think that's a good thing, but it's too early. I don't know the answer to that. Nick Zangler--Stephens, Inc. -- Analyst Yeah, great. Thank you very much, guys. Bill Nash--President and Chief Executive Officer Thank you. Operator Your next question comes from the line of John Murphy with Bank of America. Your line is open. John Murphy--Bank of America Merrill Lynch -- Analyst Good morning, guys and congrats, Katharine. We look forward to staying in touch. Katharine Kenny--Vice President, Investor Relations Thanks. John Murphy--Bank of America Merrill Lynch -- Analyst Just maybe just one question and it's kind of got slightly two parts, but if you think about what's going on with the CECs and your omni-channel efforts here, Bill, I mean it appears that the business will get more asset light over time and you might need less stores to cover areas and your current stores might become that much more productive. As you think about sort of the future, I mean not just this quarter, but the future, I mean how far do you think you can go with the CECs into new markets without maybe a physical presence or a physical presence that may be significantly lower than it has been in the past? And then also, when you think about GPUs in this new world order, can GPUs maybe be significantly lower because the asset intensity might be that much lower and you may still put up the same returns or even much better returns over time? Bill Nash--President and Chief Executive Officer Yeah. So, John the way I think about it, first of all, we feel like and I said this from earlier remarks, we feel like we have a huge competitive advantage with the infrastructure that we've built over the last 25 years. We think our stores are a huge benefit that will allow us to do this omni-channel experience. Now, to your question, how do we think about the future and how do we think about physical store growth in the future. We want to continue to grow sales and we want to continue to gain market share. And I think it's going to be a combination of adding some additional stores, but it's also going to be leveraging our existing footprint and reaching customers in ways that we haven't been able to reach in the past. And that means, that we get really good at servicing customers that we couldn't service before and it ends up, if you look at the runway of stores, we have plenty of growth for physical stores. But if you -- a few stores at the end of that runway get lopped off because we're reaching more customers out of the existing infrastructure, we'd be thrilled with that. So, but I do think it's still going to be a combination of the two. As far as the GPU goes, for us omni roll out and the omni experience is a separate distinct decision versus GPU and what we charge customer. We don't think that the two are necessarily related and at this point, we would -- we don't think that there's any reason why we can't continue to progress the omni experience and still maintain our GPUs, but those two different decision points. John Murphy--Bank of America Merrill Lynch -- Analyst Bill, there's no early read of saying hey maybe you know this Atlanta rollout that we've seen so far and what's going on in Florida, we might be able to reach 10%, 20%, 30%, 40%, 50% more customers because of this omni-channel approach. And I would certainly never suggest that your existing source of stranded assets that's I think that's silly. I think there's still going to be very productive. But I mean, as you go forward, could you -- would you think about opening material less doors. I mean it just seems like that's a real opportunity here that you will still use your physical footprint, but you may be able to be much more efficient. Is there any early read in what that might be? Bill Nash--President and Chief Executive Officer Yeah, no it's way too early to know what kind of lift we can get out of our existing infrastructure. But keep in mind, we only have 206 stores at this point. They're all strategically located. We have some areas where we have holes that would be very beneficial to have stores. So again, I go back to -- it's going to be a combination and we'll see how much of a lift we can get by being able to continue to improve the omni experience. John Murphy--Bank of America Merrill Lynch -- Analyst Great. Thank you very much. Bill Nash--President and Chief Executive Officer Thank you. Operator Your next question comes from the line of Seth Basham with Wedbush Securities. Your line is open. Seth Basham--Wedbush Securities -- Analyst Thanks a lot. Good morning and congrats, Katharine. We'll miss you. My questions around free transfers. You talked about that being a driver of improved sales in Atlanta. Can you talk about how many free transfers increases -- increased in the quarter on a year-over-year basis for example and whether or not you're rolling out additional free transfers to other markets? Bill Nash--President and Chief Executive Officer Yeah. Free transfers, while we open it up, it's just not that significant of a factor. And as we roll forward in new markets, we'll make a decision within each market that we roll out. It's not necessarily a play that we'll do every single place. Seth Basham--Wedbush Securities -- Analyst Got it. And then as a follow-up, thinking about the (inaudible) car spread now we're seeing right now, how much you think that boosted comps and do you think it's sustainable? Bill Nash--President and Chief Executive Officer Well, our data shows that, I think you said very wide, I mean it's improving. I think we saw some improvement in the latter part of the fourth quarter. I think that improvement has continued, but I would say it's certainly is in at places where it's been in the past. So while I think the trend is good, it just -- I cited it as I think because I do think it's improving, but again I don't -- It's just one of the many factors. Seth Basham--Wedbush Securities -- Analyst Thanks. Bill Nash--President and Chief Executive Officer Thank you, Seth. Operator Your next question comes from the line of Chris Bottiglieri with Wolfe Research. Your line is open. Jake Moser--Wolfe Research -- Analyst Hey, guys. It's actually Jake Moser on for Chris. Thanks for taking the question. Bill Nash--President and Chief Executive Officer Good morning. Jake Moser--Wolfe Research -- Analyst Good morning. I know you said it's a low percentage today, but I'm curious for more color on the uptake of home delivery in Atlanta and how that's trending and where you think it might get to over time and then for your recent launches in Florida, are you using the same home delivery process where you effectively a mobile office with two employees? Bill Nash--President and Chief Executive Officer Yeah. So as far as home delivery, Jake, it's too early to tell where we think that can go over time. We'll continue to monitor that, but we really don't have any detailed update at this point. As far as the home delivery process, the one difference in Florida versus the Atlanta, in Atlanta, we went in with a separate home delivery team, in Florida we're leveraging and as we roll forward, we're going to leverage the existing store associates. We have a new position in the stores and they'll be responsible for home delivery as well as express pickups. And just as a reminder, express pickup allows the customer to do everything online essentially, but still come into the store, take a test drive, learn about the options that kind of thing. We've done some of those in less than 30 minutes, especially when the customer doesn't really want to do the test drive, but just learn about the options. And so, those folks will be the ones that handle that. As far as going out, yes, at this point, we still have two associates that will go out. One has the mobile appraisal office. I mean the mobile business office, the other will take the inventory unit that the customer is interested in. Jake Moser--Wolfe Research -- Analyst All right, great. Thanks for taking the question. Bill Nash--President and Chief Executive Officer Sure. Operator Your next question comes from the line of David Whiston with Morningstar. Your line is open. David Whiston--Morningstar, Inc. -- Analyst Thanks. Good morning. I know we had a really awesome quarter here. So I actually want to look at it the other way and just say, what is a management team are you guys maybe not satisfied with or what are you pushing people internally when you address people at the store level, at the corporate level, what could you guys actually be doing better right now? Bill Nash--President and Chief Executive Officer Yeah. Well, first of all, the store team is doing a phenomenal job. If you think about all the change that we're going through as an organization, it really does impact every single associate. And the store teams have risen to the occasion. They're excited about it. They're glad that we're continuing to evolve. They're glad we're continuing to meet the business. And so we feel really good about that now. I think we have lots of opportunity as we continue to roll this out. We still have a lot of inefficiencies here and we've talked about that in the past (inaudible) design and some of them are just because we've opened up new capabilities and so what we're excited about, our first push is really get this omni experience out to our consumers, but equally important is, it's got to be a great experience for the customers, it's got to be a great experience for our associates. We want to make it as profitable as possible. We want to have the most efficient system available. So there's lots of things that we're focused on with the overall long-term growth to continue to grow sales and market share. So to be honest with you, I feel great about where we are and I feel great about the opportunities that we have to continue to improve it. David Whiston--Morningstar, Inc. -- Analyst Thanks and just one follow up there in your comment. When you said a lot of inefficiencies were you referring to the whole enterprise or the omni-channel rollout? Bill Nash--President and Chief Executive Officer Well, I think the efficiencies -- the inefficiencies I've talked to specifically about omni-channel, but I think we have opportunities to continue to look for waste in other parts of the organization. We're never content to kind of be settled with where we are. We continue to push on SG&A, looking for efficiencies there. We continue to look for efficiencies in our reconditioning process. We look for efficiencies in buying logistics. So I think there's opportunity throughout the whole organization. But, I was speaking earlier specifically to the inefficiencies in omni. David Whiston--Morningstar, Inc. -- Analyst Okay, thanks and Katharine, congratulations. Katharine Kenny--Vice President, Investor Relations Thank you. Operator (Operator Instructions) Your next question comes from the line of Scot Ciccarelli with RBC Capital. Your line is open. Scot Ciccarelli--RBC Capital Markets -- Analyst Thanks, guys. Just following Katharine's rule about one question here. So back in the queue. Well, we know there was some debate in the marketplace last quarter regarding what the -- to your stack was in Atlanta. So, I guess I was hoping now that we're back in a public forum, if you could help us understand what you've seen onto your stack basis in Atlanta specifically where you have the omni channel rollout of course both the last quarter and then this quarter? Thanks. Bill Nash--President and Chief Executive Officer Yeah, Scot. First of all thanks for getting back in the queue. You just made Katharine smile on her last earnings call that you actually followed the rules. Yeah, so this quarter positive two year stacks just like last quarter. I don't think we talked about it last quarter, but we had positive two-year stacks last quarter as well. Scot Ciccarelli--RBC Capital Markets -- Analyst Can you tell us whether this quarter was higher or lower than what you saw in 4Q? Bill Nash--President and Chief Executive Officer This quarter was higher Scot Ciccarelli--RBC Capital Markets -- Analyst Got it. Thanks. My goal is always to make Katharine happy. So there you go. All right have a good -- Bill Nash--President and Chief Executive Officer Thank you, Scott. Operator Your next one -- question comes from the line of Seth Basham with Wedbush Securities. Your line is open. Seth Basham--Wedbush Securities -- Analyst Thanks. One follow-up question for me just around CAF. Obviously you experienced some higher than expected loan losses in the quarter. We've noted some deterioration in trends for selling more recent securitizations. In response to that trend, do you plan on tightening terms for any of your loans? Did you do that this quarter with the lower penetration rate or how you're thinking about that going forward? Thank you. Bill Nash--President and Chief Executive Officer Yeah, Seth. The penetration rate this quarter was purely result of the mix coming through the door. And as I mentioned, the allowance as it is quite comfortable spot. Obviously it represents our best estimate of what the future losses will be. And so losses trended to that rate. We're very comfortable that we're still originating a highly financed, highly profitable portfolio. So I wouldn't foresee any changes. Obviously caveat that with that with -- the future is the future and we'll continue to monitor it and adjust as appropriate to the extent it is, but at this point, we're very comfortable. Seth Basham--Wedbush Securities -- Analyst Thank you. Operator There are no further questions in queue at this time. I turn the conference back over to our presenters. Bill Nash--President and Chief Executive Officer Thank you, Tiffany. Look I'm sure you can tell from our comments today, we're proud of our results and what we're working on. We're excited about the future. Results we discussed today and this goes back to one of the questions that was answered, the results of today are really the product of our associates. It's their hard work, dedication to an exceptional customer experience, desire to innovate and their unwavering commitment to our values. That's the reason we're successful and so to all of our associates, thank you for what you do every day. It's absolutely an honor to work side by side with you. And for those of you on the call, thank you for your interest. Thank you for your continued support of CarMax. And we will talk again next quarter. Operator This concludes today's conference call. You may now disconnect. Duration: 40 minutes Katharine Kenny--Vice President, Investor Relations Bill Nash--President and Chief Executive Officer Tom Reedy--Executive Vice President and Chief Financial Officer Stacy Frole--Vice President, Investor Relations Scot Ciccarelli--RBC Capital Markets -- Analyst Brian Nagel--Oppenheimer & Co. -- Analyst Armintas Sinkevicius--Morgan Stanley -- Analyst Sharon Zackfia--William Blair & Company -- Analyst Craig Kennison--Robert W. Baird & Co. -- Analyst Nick Zangler--Stephens, Inc. -- Analyst John Murphy--Bank of America Merrill Lynch -- Analyst Seth Basham--Wedbush Securities -- Analyst Jake Moser--Wolfe Research -- Analyst David Whiston--Morningstar, Inc. -- Analyst More KMX analysis All earnings call transcripts More From The Motley Fool • 10 Best Stocks to Buy Today • The $16,728 Social Security Bonus You Cannot Afford to Miss • 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) • What Is an ETF? • 5 Recession-Proof Stocks • How to Beat the Market This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see ourTerms and Conditionsfor additional details, including our Obligatory Capitalized Disclaimers of Liability. Motley Fool Transcribershas no position in any of the stocks mentioned. The Motley Fool recommends CarMax. The Motley Fool has adisclosure policy.
Our Take On Inter Parfums, Inc.'s (NASDAQ:IPAR) CEO Salary Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Jean Madar became the CEO of Inter Parfums, Inc. (NASDAQ:IPAR) in 1997. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels. See our latest analysis for Inter Parfums According to our data, Inter Parfums, Inc. has a market capitalization of US$2.1b, and pays its CEO total annual compensation worth US$995k. (This figure is for the year to December 2018). That's a notable increase of 13% on last year. While we always look at total compensation first, we note that the salary component is less, at US$630k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$4.1m. Most shareholders would consider it a positive that Jean Madar takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business. You can see, below, how CEO compensation at Inter Parfums has changed over time. Over the last three years Inter Parfums, Inc. has grown its earnings per share (EPS) by an average of 22% per year (using a line of best fit). It achieved revenue growth of 10% over the last year. This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to checkthis free visual depiction ofwhat analysts expectfor the future. Boasting a total shareholder return of 134% over three years, Inter Parfums, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size. It looks like Inter Parfums, Inc. pays its CEO less than similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Jean Madar deserves a raise! It's not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. So you may want tocheck if insiders are buying Inter Parfums shares with their own money (free access). 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.
Mexico Ratifies USMCA, Now Canada, US Must Pass New North American Trade Deal Mexico became the first country to ratify the United States-Mexico-Canada Agreement (USMCA) when its Senate approved it by a vote of 114 in favor to 4 against on June 19. Mexican President Andres Manuel Lopez Obrador described the ratification as "very good news." "We celebrate the approval in the Senate of the [USMCA], to maintain our economic and commercial relations with the United States and Canada," Obrador said. "It means foreign investment in Mexico, it means jobs in Mexico, it means guaranteeing trade of the merchandise that we produce in the United States." The United States is Mexico's biggest export market, topping $372 billion of goods and services in 2018, according to the Office of the U.S. Trade Representative. Just over $299 billion was exported from the U.S. to Mexico last year. The largest category of imported goods coming in from Mexico to the U.S. was automobiles, which accounted for $93 billion. The USMCA must now be ratified by the legislatures of Canada and the United States. If approved by the two countries, USMCA would replace the North American Free Trade Agreement (NAFTA), which President Donald Trump has threatened to withdraw the United States from declaring it as "one of the worst trade deals ever made." On Wednesday, President Trump congratulated Obrador in a tweet, stating the U.S. Congress needs to follow suit. "Congratulations to President Lopez Obrador – Mexico voted to ratify the USMCA today by a huge margin. Time for Congress to do the same here!," Trump tweeted. The USMCA would update country of origin rules, labor provisions, U.S. farmers receiving access to Canadian dairy markets and intellectual property and digital trade laws. However, the USMCA has been on hold in Washington for months, delayed by everything from the immigration issue at U.S. borders to President Trump's threat to impose a 5 percent tariff on imports from Mexico. Speaker of the U.S. House of Representatives Nancy Pelosi (D-California) did not provide any timetable for the House to take up the legislation to approve USMCA after learning of Mexico's passage on June 19. Pelosi said she has concerns over enforcement tools, labor and environmental protections and provisions on pharmaceuticals. While Congress debates whether or not to ratify USMCA, everyone from farmers, manufacturers to trade and trucking associations are urging politicians to approve the new trade deal. "Ensuring free and fair trade with our closest neighbors is critical to the trucking industry, which moves $772.3 billion worth of goods across our borders with Mexico and Canada," said Chris Spear, president and chief executive officer of the American Trucking Associations. Spear added, "trade with these two countries alone supports nearly 90,000 Americans in trucking-related jobs and generates $12.62 billion in revenue for our industry. We encourage Congress to move forward on ratifying this important agreement so all three nations may continue to share in the benefits that trade creates." Image Sourced by Pixabay See more from Benzinga • FreightWaves Radio Preview: ACT Research, AI In The Cab, DC Outlook • Commentary: Does The GDP Matter? • Summer Snow In The Rockies © 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Today's Pickup: U.S. And Canada To Expand Pre-Clearance To Cargo Good day, Despite President Trump'sveiled threats about tariffs, his meeting with Canadian Prime Minister Justin Trudeau on June 20 produced an important agreement with the potential to speed up cross-border supply chains. The two leaders said they will implement an existing agreement to expand pre-clearance operations between the U.S. and Canada – which would include cargo. The 2015 Agreement on Land, Rail, Marine and Air Transport Preclearance allows for U.S. and Canadian border officers to clear people and goods at sites within the country of origin, covering air, land and marine traffic. Currently, pre-clearance operations consist of U.S. Customs and Border Protection officers screening U.S.-bound passengers traveling from nine major Canadian airports, several ferry lines and one rail station. So far, cargo preclearance has been confined to several pilot projects. Canadian Public Safety Minister Ralph Goodalehas raised the prospectof having customs facilities attached to auto plants, allowing parts to be inspected and then sealed in containers. This has the prospect of making cross-border hauls much faster. Did you know? About 15 cargo theft incidents occur each day, according to the 2018Global Cargo Theft Intelligence Report. Trucks accounted for 12 percent of the crimes during the year. Quotable "It was one of my early mistakes, the first of many." – Peter Livanos, chairman of GasLog, on his decision to buy luxury car maker Aston Martin instead of his first ships. The Greek executive discussedhow he entered the shipping business and his outlook on the industryat Marine Money Week in New York. In Other News Truck-related deaths rise by 3 percent Preliminary National Highway Traffic Safety Administration data shows that road fatalities involving trucks increased by 3 percent in 2018, despite a 1 percent decline among all vehicles. (Transport Topics) Volvo Trucks wants to know pedestrians' intentions Volvo Trucks is using artificial intelligence to see if its possible to predict whether a pedestrian will cross a street. The initiative may also extend to cyclists and cars. (Forbes) Canada's Senate approves British Columbia tanker ban Members of Canada's Senate voted to approve a moratorium on large oil tankers operating on British Columbia's northern coast. (Global News) China, Armenia discuss transportation agreement China and Armenia are working on an agreement to improve the movement of cargo between the two countries. (Armenian Mirrior-Spectator) Illinois police use big rigs to fight distracted driving State troopers in Illinois are riding in semi-trucks to spot distracted drivers. The officers are taking advantage of the truckers' eye view to see the offenders. (CDL Life) Final Thoughts Pre-clearance of cargo could be a big deal for anyone involved in the movement of goods between the United States and Canada. But it will require a massive amount of investment from both countries, something that will have to be hashed out by lawmakers. A 2018 white paper, "Beyond Pre-Clearance: The Next Generation Canada-U.S. Border," estimated that pre-clearance and other initiatives could save $11.7 billion off the cost of moving goods each year. Hammer down everyone! Image Sourced by Pixabay See more from Benzinga • Mexico Ratifies USMCA, Now Canada, US Must Pass New North American Trade Deal • FreightWaves Radio Preview: ACT Research, AI In The Cab, DC Outlook • Commentary: Does The GDP Matter? © 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Judge Orders Special Prosecutor To Investigate Jussie Smollett Case A Cook County, Illinois, judge has ordered the appointment of a special prosecutor to investigate the controversial decision to drop all charges against Empire actor Jussie Smollett . Judge Michael Toomin ruled Friday that States Attorney Kim Foxx could not legally appoint her top deputy to handle the case in her place after she withdrew from the prosecution. He also said the special prosecutor could bring charges against Smollett if they have reasonable grounds to believe that any other criminal offense was committed, Chicago media outlets reported. Related stories Judge Orders Special Prosecutor To Investigate Jussie Smollett Case Lee Daniels "Beyond Embarrassed" For Rushing To Jussie Smollett's Defense Jussie Smollett Returns To Social Media With Pride Month Message Former state appellate Judge Sheila OBrien has argued that Foxxs actions created a perception that justice was not served here, that Mr. Smollett received special treatment. The move was opposed by county prosecutors, who said a special prosecutor would duplicate the efforts of the country inspector generals office, which is looking into Foxxs controversial decision to drop all charges against Smollett. Foxxs office dropped all charges against Smollett at an unannounced court hearing in late March, less than three weeks after he was charged with 16 felony counts related to making a false police report for allegedly staging a phony hate crime attack on himself. Smollett also faces a lawsuit from the city of Chicago seeking to recoup the cost of police overtime for investigating the matter. We stand firmly behind the work of detectives in investigating the fabricated incident reported by Jussie Smollett & #ChicagoPolice will fully cooperate with the court appointed special prosecutor. pic.twitter.com/bCDF0NYfzP Anthony Guglielmi (@AJGuglielmi) June 21, 2019 Empire co-creator Lee Daniels tweeted on June 4 that Smollett would not be returning to the hit Fox show. Sign up for Deadline's Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram .
Cocaine haul from ship grows, arrests now stand at 6 PHILADELPHIA (AP) — Federal authorities have upped the amount of cocaine they seized from a ship at the Philadelphia port to more than 35,000 pounds, or 15,876 kilograms, making it the largest cocaine haul in the history of U.S. Customs, authorities said Friday. They put the street value of the drugs at $1.1 billion. Laid end to end, the bricks of cocaine would stretch about 2 ½ miles, or just over 3 kilometers, said Casey Durst, director of field operations in the U.S. Customs and Border Protection Baltimore field office. The investigation has now resulted in the arrests of six crew members, all of whom are due for federal court hearings Monday. They have all been charged with conspiracy to possess cocaine aboard a ship, and each has been appointed a federal public defender. "You thought you could breeze to our port and leave with enough cocaine to destroy millions of lives without getting caught. You thought you were clever. You were wrong," said U.S. Attorney William McSwain, whose office is handling the prosecutions. "You underestimated the city, you underestimated our law enforcement capabilities, and you underestimated our commitment to decimate the evil and immoral drug trade." Agents on Friday were still inspecting containers aboard the MSC Gayane, a cargo ship owned by Swiss firm MSC Mediterranean Shipping Co. which was sailing under a Liberian flag. MSC is a Swiss-based shipping company, one of the world's largest shipping lines in terms of containers, McSwain said. A message seeking comment from the shipping line on the latest charges wasn't returned Friday. McSwain said his office is considering all available options, including the possible forfeiture of the ship. Authorities boarded the ship Sunday night for a routine screening, and detected anomalies while examining seven shipping containers on board, they said. Agents escorted the ship into its berth in Philadelphia and a full investigation began on Monday, leading to the discovery of the cocaine. Story continues Under heavy security, federal agents displayed thousands of pounds of seized cocaine during a Friday briefing at Philadelphia's Custom House. Cardboard boxes were stacked higher than the agents guarding them, and piles of green and blue wrapped bricks were stacked in pyramids in the building's foyer. James Carroll, director of the U.S. Office of National Drug Control Policy, said the Trump administration is committed to hunting down drug traffickers and bringing them to justice. "Make no mistake, we will use every resource at our disposal to find these traffickers and once we have them in custody we will employ the fullest measure of the law possible," he said. "We also must never forget to help our fellow citizens who are struggling with addiction and need help."
Kevin Costner drops bombshell about iconic The Bodyguard poster: 'That wasn't even Whitney' As romantic posters go, it’s hard to get more steamy and engaging than the one for The Bodyguard . The poster for the 1992 film starring Kevin Costner and Whitney Houston features Costner’s titular bodyguard carrying Houston’s pop star Rachel Marron out of a nightclub after a riot breaks out at one of her shows. There’s only one catch — that’s not really Houston in the shot. “That wasn’t even Whitney actually,” Costner tells EW. “She had gone home and that was her double, and her head was buried into my shoulder, which was appropriate anyway. She was frightened.” The shot came from a day of shooting the memorable scene, but Costner says he knew instantly it would make the perfect poster. “I picked that picture out because my friend Ben Glass took it…I sent it to Warner Brothers and I go, ‘There’s the poster.’ Because it was so evocative. It wasn’t special photography; it wasn’t anything,” he says. Everett Collection But it wasn’t as easy as that — the executives didn’t like that you couldn’t see Houston’s face since she was a huge pop star at the time and therefore a big draw for audiences. “They didn’t like it at first because you couldn’t see Whitney’s face,” he explains. “And so they sent me like five mockups where they put her head [on it] where she’s looking [out]. I said ‘Guys, I think we had it the first time.’ That it was really, and that ended up being the poster.” Costner and Houston created legendary screen chemistry in the film, so potent that Costner even went on to speak at Houston’s funera l in 2012. However, he credits their onscreen spark to Lawrence Kasdan’s screenplay. “[It was a] very funny, acidic kind of relationship that was unique. His own rhythm of language that I knew would create [sparks],” he reflects. “It just caught [Whitney] at a really high moment or actually created a high moment for her. The words provide the chemistry in a way.” Story continues To read more from Kevin Costner , pick up the latest issue of Entertainment Weekly on stands now, purchase a special limited edition cover featuring David Boreanaz ( available online only ), or collect both ! And don’t forget to subscribe for more exclusive interviews and photos , only in EW. Related content: Kevin Costner prepares for war in Yellowstone season 2 trailer Sam Elliott remembers Tombstone vs. Wyatt Earp box office battle
When Should You Buy Lifetime Brands, Inc. (NASDAQ:LCUT)? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Lifetime Brands, Inc. (NASDAQ:LCUT), which is in the consumer durables business, and is based in United States, led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. Less-covered, small caps tend to present more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Today I will analyse the most recent data on Lifetime Brands’s outlook and valuation to see if the opportunity still exists. See our latest analysis for Lifetime Brands Lifetime Brands is currently overpriced based on my relative valuation model. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 38.24x is currently well-above the industry average of 13.85x, meaning that it is trading at a more expensive price relative to its peers. If you like the stock, you may want to keep an eye out for a potential price decline in the future. Given that Lifetime Brands’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. With profit expected to more than double in the upcoming, the future appears to be extremely bright for Lifetime Brands. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder?LCUT’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe LCUT should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed. Are you a potential investor?If you’ve been keeping an eye on LCUT for a while, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the positive outlook is encouraging for LCUT, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop. Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Lifetime Brands. You can find everything you need to know about Lifetime Brands inthe latest infographic research report. If you are no longer interested in Lifetime Brands, 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.
Facebook’s Libra Pushes France to Form a G7 Crypto Task Force ByCCN Markets:Facebook’scryptocurrency Libra seems to have unsettled governments everywhere. The governor of Banque de France, Francois Villeroy de Galhau, is the latest to announce reactionary measures designed to contain the digital currency. According toReuters, Villeroy de Galhau has revealed that France is forming a task force drawn from G7 member countries. The responsibility of the task force will be to ensure cryptocurrencies such as Libra are properly regulated: “We want to combine being open to innovation with firmness on regulation. This is in everyone’s interest.” The task force will be led by French economist and European Central Bank board member Benoit Coeure. France is currently holding the G7 presidency Per Villeroy de Galhau, some of the concerns include the concept of stablecoins. Specifically, Villeroy de Galhau noted that regulators want to determine how fixed the exchange rates of those coins are as well as what such cryptocurrencies are stable against. Read the full story on CCN.com.
‘The brains’ behind BitGo’s latest product is leaving the firm BitGo's vice president of sales is set to depart the firm, The Block has learned. Josh Schwartz, previously an executive at Bloomberg Tradebook, is leaving the cryptocurrency custodian after more than a year with the firm. Schwartzjoined BitGo in May 2018, a few months before it securedapproval from South Dakota state regulatorsto launch its qualified custodian business aimed at institutional investors. "During his tenure, he provided insights into capital markets, played a critical role in the development of our settlement solution, and built our sales team," a spokeswoman said of Schwartz's exit. "We appreciate his contributions to BitGo and wish him the best of luck in his next endeavor." Schwartz played a key role in transforming BitGo from a software-as-a-service type company into a financial-services firm, according to a source. He also was "the brains"behind the settlement and clearing solution serviceBitGo is planning to roll out next month, the source added. The new solution will allow BitGo clients to transfer coins among themselves without moving them out of cold storage. The firm has brought on a number of former Wall Street veterans this year as it continues to court institutions to its platform, including Rob Salman, one of IEX's earliest employees, and Nick Carmi, formerly global head of FICC trading at Tower Research. Schwartz previously held roles at Axiom Investment Investment Advisors and Cantor Fitzgerald. It is not clear if he is joining a different firm.
Defense Stock May Extend Surge to 11-Year Highs San Diego-basedKratos Defense & Security Solutions Inc (NASDAQ:KTOS)is moving lower this afternoon, after tying its decade-plus closing high of $22.78 last night. Last seen down 1.5% at $22.44, KTOS' downtrend may be short-lived, per a fresh bull signal flashing on the equity. Below, we will take a look at recent data from Schaeffer's Senior Quantitative Analyst Chris Prybal, which suggests Kratos' stock may be ready for another surge higher. KTOS has been on a dramatic upswing since its mid-May post-earningst bull-gap, as well as its surge off the supportive 180-day moving average. This trendline also served as support during pullbacks in the fourth quarter. Year-to-date, the security is up 60%. Digging deeper, Kratos' short-term option premiums look relatively inexpensive at the moment. This is per the security'sSchaeffer's Volatility Index(SVI) of 39%, which stands in the low 11th percentile of its annual range, as of Thursday's close. In other words, near-term options are pricing in relatively low volatility expectations. Since 2008, there have been seven other times KTOS shares were within 2% of a 52-week high and simultaneously sported an SVI in the bottom 20% of its annual range. After those signals, the stock was higher one month later 71% of the time, averaging a gain of 6.6%, according to data from Prybal. Another surge of this size would put the shares at $23.92 -- a fresh 11-year high. Albeit amid low absolute volume, calls look to be stillflying off Kratos' shelves. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), KTOS sports a 10-day call/put volume ratio of 25.70, ranking in the 78th annual percentile. This means that approximately 25 calls have been bought to open for every put during the past two weeks on the equity.
Woman who killed neighbour in vile attack using broken bottles, scissors and an ashtray jailed for life Carol Campling has been jailed for life A woman has been jailed for life after brutally murdering her neighbour in a vile attack using scissors, broken bottles and an ashtray. Carol Campling, 39, initially claimed she found the lifeless body of her neighbour, 48-year-old Mark Smith inside a flat on Warren Road in Chingford. The court heard that at 06:45hrs on 15 February 2018, Campling attended Chingford police station to report that she had found the lifeless body of a man in a neighbour’s flat at a block on Warren Road. Officers and the London Ambulance Service attended Garenne Court and found Smith suffering from multiple injuries inside a flat. He was pronounced dead less than an hour later. An investigation was launched by the Met Police ’s Homicide and Major Crime Command, and Campling was arrested later that day. Despite her denial, Campling was found guilty of murdering 48-year-old Mark Smith following a trial at the Old Bailey which concluded on Friday, 7 June. On Friday, 21 June, she was sentenced to life in prison , to serve a minimum of 17 years. A post-mortem examination took place at East Ham Mortuary on 17 February 2018, and gave Mark’s cause of death as multiple injuries. READ MORE MP suspended for manhandling Greenpeace protester Detective Inspector John Marriott, of the Homicide and Major Crime Command, said: “Campling launched a vicious attack on Mark with broken bottles, scissors and an ashtray before leaving him to die. “She has always failed to own up to her actions but will now have a long time in prison to think about the consequences of what she did that night. “This is an awful case in which drug use and consumption of extremely excessive quantities of alcohol by Campling and the victim were a significant factor. "Our thoughts remain with the family of Mark at this difficult time." Robert Edwin Parsons, 64, was acquitted of the murder of Mark Smith at the same trial. View comments
Billionaire Leon Cooperman Interview –“We Live in Abnormal Times”, But The Stock Market Is Still In Its “Zone of Fair Value” TheOmega Advisorschairman and CEO, billionaireLeon Cooperman, recently was a guest at CNBC’s "Squawk Box", and he shared his observations on the current market trends. In the interview, he pointed out that we live in abnormal times alluding to $12 trillion-plus of sovereign debt that has a negative interest rate. He explained further that if we borrow money to Switzerland, or Germany, for 10 years, they are going to return us less than we actually gave them. Nevertheless, in this abnormality, according to Cooperman, the stock market is currently inits “zone of fair value”. Only if it goes higher, if S&P 500 reaches 3,100 in the near term, that could signalize the market“knocking on the door of euphoria”, which could later on lead to the end of the bull market, as he referred toSir John Templeton, who said: “Bull markets are born on pessimism, grown on skepticism, mature on optimism, and die on euphoria.”When asked about what is needed to correct that, if the bear market is the answer, Cooperman replied that bear markets happen for several reasons, like the anticipation of recession or when the Fed becomes unfriendly, both which don’t seem to be the current cases. If anything, the Fed has been too easy, and monetary policy “inappropriate”, according to Cooperman. He also discussed IPO market and said that he finds the IPO market“a little bit of bubble”, with many companies there having no earnings, pointing out further that we shouldn’t generalize but instead go name by name. “The valuations are not unreasonable in the aggregate, you have to look at each company one at the time.”“You have to be careful, you got to know what you own.”(More details from the interview, you can find in the videos below. ) Let's take a look at Lee Cooperman's top 5 stock holdings at the end of March. During the first quarter of 2019, Omega Advisers raised its position in Atlanta-based financial service company,First Data Corporation (NYSE:FDC)by 190% to 6.92 million shares worth $181.78 million. The most valuable position in its 13F portfolio amassed 11.11% of it. Year-to-date, the company’s stock is up by 60.33%, having a closing price on June 20thof $27.32. Its market cap is of $25.63 billion, and it is trading at a price-to-earnings (P/E) ratio of 24.53. In its financial report for Q1 2019, First Data Corporation disclosed revenues of $2.32 billion and diluted EPS of $0.17, compared to revenues of $2.29 billion and diluted EPS of $0.11 in the last quarter of 2018. The second most valuable position Leon Cooperman held at the end of March was inAlphabet Inc. (NASDAQ:GOOGL),the 4thamong the30 Most Popular Stocks Among Hedge Funds in Q1 of 2019. During the quarter, the fund boosted its stake in the company by 33% to 109,000 shares outstanding, with a value of $128.28 million, amassing 7.84% of its 13F portfolio. Over the past six months, Alphabet’s (GOOGL) stock gained 12.30%, closing on June 20thwith a price of $ 1,113.20 per share. The company has a market cap of $777.68 billion, and it is trading at a P/E ratio of 28.13. United Continental Holdings, Inc. (NASDAQ:UAL)counted for the fund’s third biggest position at the end of the first quarter of 2019. This $23.02 billion market cap airline holding company trades at a P/E ratio of 10.47. Over the last 12 months, United Continental’s stock gained 19.47%, and on June 20thit had a closing price of $87.14. For the first quarter of 2019, the company reported net income of $292 million and diluted EPS of $1.09, compared to net income of $145 million and diluted EPS of $0.51 for the fourth quarter of 2018. Omega Advisors reported $92.61 million worth a stake in the company, on the account of 1.16 million shares. The fund’s fourth and fifth biggest holdings at the end of March wereChimera Investment Corporation (NYSE:CIM), in which the fund reported a position worth $90.37 million on the basis of 4.82 million shares andCigna Corporation (NYSE:CI)whose 545,000 shares with a value of $87.65 million the fund reported holding. Disclosure:None. This article was originally published atInsider Monkey.
Why the labor market is key to the Fed's next move Federal ReserveChairman Jerome Powell has signaled to markets that a rate cut is on the table, but said the timing of a cut would depend on getting a “clearer picture of things.” A clearer picture could come with the only jobs report that the Fed will receive before the next policy-setting meeting on July 30-31. The Fed is now acknowledging that it is undershooting its 2% inflation target, but said the labor market “remains strong” — marking a bright spot in one of the Fed’s dual mandates. A darkening of the outlook on the employment front should, in that case, bolster the case for a rate cut. JPMorgan Chase’s Michael Feroli wrote to clients that Powell’s commentary has already pushed his team to pull forward expectations for cuts to July and September of this year. But a bad reading on employment data could reinforce the case for steeper cuts. “While the risk of more than 50bp of cuts is still not our baseline outlook, any further evidence of deterioration in labor market activity should motivate well more than 50bp of total cuts this cycle,” Feroli wrote June 19. The Bureau of Labor Statistics will release the next jobs report, covering the month of June, on July 5. The Fed has a dual mandate: stable prices and maximum employment. Since the May 1 meeting, the Fed has acknowledged that it is “running below” its 2% inflation target, which Powell said was the result of “weaker global growth” that is baked into policymakers’ worries over near-term economic conditions. Translation: the Fed is having issues with its price mandate, making the case for more accommodative policy. But things have looked far better on its labor market mandate. The Fed has continued to refer to labor markets as “strong,” the same language that it used as it notched rates up between 2017 and 2018. Asked by Yahoo Finance if the labor market is now closer or farther from maximum employment, Powell said Wednesday “we have to be closer,” citing more job creation. “The unemployment rate is lower. You know, by just lots and lots of numbers, the labor market is in a good place,” Powell said. But Fed Vice Chairman Richard Claridatold BloombergFriday that he did see a “soft print” on thejobs report for May, when the economy added only 75,000 non-farm jobs compared to expectations for 175,000. Simona Mocuta, an economist at State Street Global Advisors, told Yahoo Finance that the June jobs report will be closely watched, in addition to any developments on the trade front as world leaders meet at the G-20 next week. “The labor market plays into the timing of the cut,” Mocuta said. “I think you get 50 basis points in July only if it coincides with a bad trade outcome out of G20 and bad jobs.” Mocuta said a “bad” jobs report would be an outright decline in month-over-month job gains, which she does not expect. One challenge with the labor market: policymakers have been wrong about where the labor market’s true bottom is. In June of last year the Fed’s median estimate for the longer-run unemployment rate was 4.5%. Projections from Wednesday’s meeting brought that median estimate down to 4.2%, showing that some see structural changes that are allowing the labor market to tighten beyond previous expectations. The unemployment rate is currently at 3.6%, a 49-year low. Policymakers have also brought down their estimates for where the unemployment rate will be by the end of this year, from 3.7% (in the March survey) to 3.6%. Minneapolis Fed President Neel Kashkariacknowledged this in a blog post Friday. “Over the past few years, some people repeatedly declared that we had reached maximum employment and that no further gains were possible without triggering higher inflation,” Kashkari wrote. “And, repeatedly, the labor market proved otherwise.” That raises questions about whether or not the Fed underestimated the true amount of slack in the labor market during its tightening cycle — and surfaces new questions about whether or not the Fed should ease policy to allow the market to pull more workers off of the sidelines. Kashkari advocated for a 50 basis point cut in Wednesday’s meeting. In tandem with concerns over getting inflation to the Fed’s 2% target, Kashkari said potential slack in the labor market means the central bank should provide accommodation. Powell nodded to the challenge of guessing labor market slack in his press conference Wednesday, saying that while the labor market has tightened, he has not seen “real signals” that the economy is at maximum employment. “We watch all this very carefully and I think we're very careful about not assuming that there's no more slack in the labor market,” Powell said. — Brian Cheung is a reporter covering the banking industry and the intersection of finance and policy for Yahoo Finance. You can follow him on Twitter@bcheungz. • Trump hints that Fed should match possible ECB rate cuts • Federal Reserve may lose 'patience' on Wednesday • FOMC Preview: Threading the needle on rate changes for July • The battle of US banking giants could be won in Charlotte • Lael Brainard: Regulators may be 'whittling away' at financial stability • Congress may have accidentally freed nearly all banks from the Volcker Rule Read the latest financial and business news from Yahoo Finance Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,SmartNews,LinkedIn,YouTube, andreddit.
Ethereum Devs Approve First Code Changes for ‘Istanbul’ Hard Fork Two Ethereum Improvement Proposals (EIPs) have been approved for inclusion in ethereum’s next major upgrade, Istanbul. These are the first two code changes to be officially approved for the Istanbul upgrade, which is tentatively targeted to activate on ethereum mainnet in October. In today’s bi-weekly call, developers discussed which of the nearly 30 EIPs for Istanbul would be approved and which would be rejected or delayed for a later system-wide upgrade, also called a hard fork. Related:Meet Alternateth: A ‘Friendly Fork’ of the Ethereum Blockchain While the majority of EIPs still do require further discussion, two are now officially approved. EIP 2024– or, in some documents, EIP 131 – adds a new precompile to the ethereum virtual machine. Precompiles are normally expensive operations on the ethereum blockchain that deploy for a fixed fee or “gas cost.” EIP 2024 introduces a precompile for a new hash function called “Blake2.” The function is said to be faster in verifying and authenticating blockchain data than other more traditional hash functions on ethereum such as SHA-3. Various strands of Blake2 are currently being used by other cryptocurrency projects such as privacy coin zcash and domain-name platform Handshake. EIP 2024 introduces a precompile for a version of Blake2 called “Blake2B.” Related:Ethereum Classic’s Next Crypto Code Upgrade Set for September “Blake2B means that we could interop with zcash on the ethereum main network,” said James Hancock, one of the three authors behind EIP 2024. “Wrapped ZEC within ethereum, [shielded] transactions, a whole lot of cool stuff.” EIP 1702, on the other hand, authored by Parity Technologies developer Wei Tang, is geared towards smoother smart contract upgradability. At present, decentralized applications (dapps) that run on the ethereum blockchain are based upon virtually immutable, self-executing lines of code known as smart contracts. These smart contracts are compiled and executed through theethereum virtual machine, said to be the very heart of the blockchain network, that functions as the engine deploying the many thousands of dapps created by developers. The current ethereum virtual machine is expected to be upgraded in the long-term to WebAssembly code, which offers developers greater flexibility when it comes to programming language and performance. EIP 1702 suggests introducing a new methodology for hard forks called “account versioning” so that upgrading the ethereum virtual machine or introducing new virtual machines in the network can be easier. Tang explainsin his proposal: “By allowing account versioning, we can execute different virtual machine for contracts created at different times. This allows breaking features to be implemented while making sure existing contracts work as expected.” Ethereum is currently the second largest blockchain in the world by market capitalization with over 20,000 daily active users, according to crypto analytics siteState of the DApps. Ethereumimage via Shutterstock • Internet Security Provider Cloudflare Announces an Ethereum Gateway • Two Startups Are Partnering to Enable Amazon Purchases with Ethereum
Why Levi Strauss & Co.'s (NYSE:LEVI) High P/E Ratio Isn't Necessarily A Bad Thing Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). We'll show how you can use Levi Strauss & Co.'s (NYSE:LEVI) P/E ratio to inform your assessment of the investment opportunity.Levi Strauss has a P/E ratio of 18.24, based on the last twelve months. That corresponds to an earnings yield of approximately 5.5%. Check out our latest analysis for Levi Strauss Theformula for price to earningsis: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Levi Strauss: P/E of 18.24 = $21.78 ÷ $1.19 (Based on the trailing twelve months to February 2019.) The higher the P/E ratio, the higher the price tag of a business, relative to its trailing 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. P/E ratios primarily reflect market expectations around earnings growth rates. Earnings growth means that in the future the 'E' will be higher. Therefore, even if you pay a high multiple of earnings now, that multiple will become lower in the future. And as that P/E ratio drops, the company will look cheap, unless its share price increases. Levi Strauss's earnings made like a rocket, taking off 121% last year. The sweetener is that the annual five year growth rate of 21% is also impressive. With that kind of growth rate we would generally expect a high P/E ratio. We can get an indication of market expectations by looking at the P/E ratio. As you can see below Levi Strauss has a P/E ratio that is fairly close for the average for the luxury industry, which is 17.8. Its P/E ratio suggests that Levi Strauss shareholders think that in the future it will perform about the same as other companies in its industry classification. So if Levi Strauss actually outperforms its peers going forward, that should be a positive for the share price. Checking factors such asthe tenure of the board and managementcould help you form your own view on if that will happen. One drawback of using a P/E ratio is that it considers market capitalization, but not the balance sheet. Thus, the metric does not reflect cash or debt held by the company. In theory, a company can lower its future P/E ratio by using cash or debt to invest in 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). Net debt totals just 3.7% of Levi Strauss's market cap. So it doesn't have as many options as it would with net cash, but its debt would not have much of an impact on its P/E ratio. Levi Strauss trades on a P/E ratio of 18.2, which is fairly close to the US market average of 18. Given it has reasonable debt levels, and grew earnings strongly last year, the P/E indicates the market has doubts this growth can be sustained. When the market is wrong about a stock, it gives savvy investors an opportunity. 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. But note:Levi Strauss may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with strong recent earnings growth (and a P/E ratio below 20). We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Is There An Opportunity With Levi Strauss & Co.'s (NYSE:LEVI) 25% Undervaluation? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! In this article we are going to estimate the intrinsic value of Levi Strauss & Co. (NYSE:LEVI) by taking the foreast future cash flows of the company and discounting them back to today's value. This is done using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple! Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model. Check out our latest analysis for Levi Strauss We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: [{"": "Levered FCF ($, Millions)", "2019": "$284.50", "2020": "$371.05", "2021": "$480.00", "2022": "$559.43", "2023": "$628.82", "2024": "$688.57", "2025": "$740.00", "2026": "$784.76", "2027": "$824.41", "2028": "$860.32"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x2", "2020": "Analyst x2", "2021": "Analyst x1", "2022": "Est @ 16.55%", "2023": "Est @ 12.4%", "2024": "Est @ 9.5%", "2025": "Est @ 7.47%", "2026": "Est @ 6.05%", "2027": "Est @ 5.05%", "2028": "Est @ 4.36%"}, {"": "Present Value ($, Millions) Discounted @ 8.13%", "2019": "$263.10", "2020": "$317.33", "2021": "$379.63", "2022": "$409.17", "2023": "$425.33", "2024": "$430.71", "2025": "$428.07", "2026": "$419.81", "2027": "$407.85", "2028": "$393.60"}] Present Value of 10-year Cash Flow (PVCF)= $3.87b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (2.7%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.1%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$860m × (1 + 2.7%) ÷ (8.1% – 2.7%) = US$16b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$16b ÷ ( 1 + 8.1%)10= $7.48b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $11.36b. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of $28.94. Relative to the current share price of $21.78, the company appears a touch undervalued at a 25% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Levi Strauss as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.1%, which is based on a levered beta of 0.907. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Although the valuation of a company is important, it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Levi Strauss, There are three important aspects you should look at: 1. Financial Health: Does LEVI have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Future Earnings: How does LEVI's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with ourfree analyst growth expectation chart. 3. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of LEVI? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every US stock every day, so if you want to find the intrinsic value of any other stock justsearch here. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Conservative U.S. justices draw criticism by overruling precedent again By Andrew Chung WASHINGTON (Reuters) - For the second time in six weeks, the U.S. Supreme Court's conservative majority on Friday overruled a decades-old legal precedent set by the court, this time involving property rights, raising alarm bells among its liberal members. In a 5-4 decision powered by the conservative justices with the liberals in dissent, the court shored up the rights of private property holders in governmental disputes, ruling in favor of a Pennsylvania woman fighting a town ordinance aimed at keeping cemeteries on private land open to the public. The ruling, written by Chief Justice John Roberts, overruled a 1985 Supreme Court decision that had forced property owners facing a government-led takeover of land for public purposes to seek compensation under state law before bringing a claim in federal court. The ruling comes amid rising concern among abortion rights advocates and Democratic politicians over whether the court may overrule Roe v. Wade, the landmark 1973 Supreme Court ruling that legalized abortion nationwide. Republican President Donald Trump pledged during the 2016 election campaign to appoint judges hostile to Roe, and has since named two conservative jurists to the bench, Brett Kavanaugh and Neil Gorsuch. On May 13, the conservative Supreme Court majority ruled 5-4 to overrule a 40-year-old decision allowing private citizens to sue one state in the courts of a different state, prompting liberal Justice Stephen Breyer to issue a sharp dissent. Breyer said there was no special need to eliminate the precedent and that it was "dangerous" to overrule a prior decision on difficult legal issues merely because five members of the court happen to disagree with it. The May decision, Breyer wrote at the time, "can only cause one to wonder which cases the court will overrule next." "Well, that didn't take long," liberal Justice Elena Kagan wrote in a dissent on Friday, expanding on Breyer's prior critique. "Now one may wonder yet again." Story continues Both Breyer and Kagan said the court should have adhered to court's longstanding tradition of adhering to prior decisions, a principle known as stare decisis. Supporters of the principle have said it protects the court's credibility by avoiding politicization, and keeping the law steady and evenhanded. The criticism indicates a growing divide between the justices on when it is appropriate for the court to overturn its own rulings, as liberal jurists have also voted to do so in the past. A prominent example of reversing a precedent came in the court's landmark 1954 decision forbidding racial segregation in public schools that overturned an 1896 ruling that the Constitution allowed racially segregated schools that were "separate but equal." Breyer and Kagan both voted to overturn a lesser-known decades-old precedent when the court in 2015 legalized gay marriage nationwide. Conservative Justice Clarence Thomas in particular has advocated for the court to be less bound by precedent. Writing a concurring opinion on Monday in a gun possession case, Thomas said the court should reconsider its standard for reviewing precedents and should not uphold precedents that were "demonstrably erroneous." Thomas referred in his opinion to the court's 1992 decision in Planned Parenthood v. Casey, which reaffirmed Roe. In announcing Friday's ruling from the bench, Roberts appeared to address Kagan's dissent when he noted that in other rulings issues this week, the court had declined to overrule precedents. (Reporting by Andrew Chung; Additional reporting by Lawrence Hurley; Editing by Will Dunham)
'Legend' Mick Jagger back at it as Rolling Stones tour resumes two months after his heart surgery Wild horses couldn’t drag Mick Jagger away from the stage tonight. Two months after heart surgery, the Rolling Stones frontman, 75, and his band have resumed their tour to make up dates postponed due to his illness. He gave his social media followers a sneak peek at rehearsals at Soldier Field in Chicago and looked more than ready, though that’s really no surprise after seeing his pre-show workout . View this post on Instagram A post shared by Mick Jagger (@mickjagger) on Jun 20, 2019 at 10:05am PDT Jagger wrote to his fans that he was “looking forward” to seeing them on Friday night. They were equally excited with comments ranging from “Legend!” to “See u from front row.” (Screenshot: Mick Jagger via Instagram) (Screenshot: Mick Jagger via Instagram) (Screenshot: Mick Jagger via Instagram) (Screenshot: Mick Jagger via Instagram) (Screenshot: Mick Jagger via Instagram) In his Instagram Stories, Jagger shared a video in which he was playing guitar on stage in a hoodie. (Screenshot: Mick Jagger) The No Filter tour was halted at the end of March and Jagger had heart valve replacement surgery in early April. He’s shared his recovery along the way. And it’s certainly worth Jagger’s while to return to stage asap. The band appeared on Forbes’ s Highest-Grossing Tours of 2018 list . It was estimated that they pulled in $117,844,618 playing just 14 shows last year They have 17 dates across the U.S. between now and late August. Read more on Yahoo Entertainment: Matthew Perry speaks out after photos of himself looking 'disheveled' raise concern Kathy Griffin begs Obama to 'come back' to White House Mila Kunis and Ashton Kutcher shut down rumors that they've split: 'It's over between us?' Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle’s newsletter. View comments
Take care of your little fan with this team-branded diaper bag Bringing a brand new little one into your home isn't just adding to your family – it's also adding to your favorite team's fanbase. While some kids may grow up to have differing sports opinions than their parents, they don't have much of a say during the first weeks and months of their lives. Part of the fun of having a child is being able to dress him or her up however you please! In addition toadorable onesies and tiny sneakers, there are plenty of other newborn and infant needs that can kickstart baby's fandom – likediaper bags. NFL Licensed Diaper Messenger Bag, Kansas City Chiefs– $47.99 Thesediaper messenger bags from Walmartare the perfect way to show off both parent and baby's allegiance. They come in the colors of several NFL teams, though some are already out of stock – so make sure you grab yours while you still can.
AUD/USD Price Forecast – Australian dollar runs into resistance The Australian dollartried to rally during the trading session on Friday, but gave back the gains as we continue to see a lot of concern when it comes to the US/China situation, as it doesn’t seem like it’s going to get any better. That being the case, it’s very likely that the market is going to continue to see a lot of volatility when it comes to the Aussie as it is so highly levered to Chinese growth and of course construction. Ultimately, the market should continue to see a lot of noise in his and quite frankly I think we are going to stay in this range that I have marked on the chart but we obviously have more of a downward bias as of late. After all, we did make a “lower low.” That being said I believe that the 0.68 level underneath is massive support, so a break down below there would probably coincide with a souring of relations between the United States and China. Ultimately, that move would probably coincide with something bad coming out of the G 20 meeting between President Trump and Xi. If that happens, then we could look at a market going down to the 0.65 level which is a large, round, psychologically significant number, and at this point I would expect that level to offer support. Overall, I anticipate that we stay within the blue box I have on the chart but that is the alternate scenario. Please let us know what you think in the comments below Thisarticlewas originally posted on FX Empire • European Equities: German Business Confidence and Geopolitics in Focus • Bitcoin Cash – ABC, Litecoin and Ripple Daily Analysis – 24/06/19 • USD/JPY Forex Technical Analysis – Key Area to Watch This Week is 107.905 to 107.940 • NZD/USD Forex Technical Analysis – .6581 Controlling Direction This Week • Oil Price Fundamental Weekly Forecast – Gains Could Be Limited with US Preparing to Negotiate With Iran • How To Time Market Tops And Bottoms
Investors Who Bought Laurentian Bank of Canada (TSE:LB) Shares Three Years Ago Are Now Down 12% Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! While it may not be enough for some shareholders, we think it is good to see theLaurentian Bank of Canada(TSE:LB) share price up 11% in a single quarter. But that cannot eclipse the less-than-impressive returns over the last three years. After all, the share price is down 12% in the last three years, significantly under-performing the market. View our latest analysis for Laurentian Bank of Canada While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. Although the share price is down over three years, Laurentian Bank of Canada actually managed to grow EPS by 5.8% per year in that time. This is quite a puzzle, and suggests there might be something temporarily buoying the share price. Alternatively, growth expectations may have been unreasonable in the past. We're actually a quite surprised to see the share price down while EPS have grown strongly. Therefore, we should look at some other metrics to try to understand why the market is disappointed. Given the healthiness of the dividend payments, we doubt that they've concerned the market. It's good to see that Laurentian Bank of Canada has increased its revenue over the last three years. But it's not clear to us why the share price is down. It might be worth diving deeper into the fundamentals, lest an opportunity goes begging. The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values). 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. So it makes a lot of sense to check out what analysts think Laurentian Bank of Canada willearn in the future (free profit forecasts). It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Laurentian Bank of Canada, it has a TSR of 2.8% for the last 3 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted thetotalshareholder return. It's nice to see that Laurentian Bank of Canada shareholders have received a total shareholder return of 5.8% over the last year. And that does include the dividend. That's better than the annualised return of 2.8% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. If you want to research this stock further, the data on insider buying is an obvious place to start. You canclick here to see who has been buying shares - and the price they paid. There are plenty of other companies that have insiders buying up shares. You probably donotwant to miss thisfreelist of growing companies that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
U.S. Soccer Foundation President and CEO: Women's pay issue 'will go on' The FIFA Women’s World Cup in France is in full swing, with the United States winning their first three games while conceding no goals. The Americans 3-0 win over Chile brought in a record-breaking viewership for a group-stage match in the Women’s World Cup with over 5 million people watching. One aspect of professional soccer that’s been increasingly scrutinized has been thelack of equal pay between men and women. With three World Cup titles and four Olympic gold medals, the women’s record far exceeds that of their male counterparts — yet players don’t make the same money. “The pay gap is an issue, and that issue will go on,” U.S. Soccer Foundation President and CEO Ed Foster-Simeon told Yahoo Finance’s YFi PM. In response, the women’s national teamfiled a discrimination lawsuit in March against U.S. Soccer,which is separate from the U.S. Soccer Foundation. All 28 members alleged that the federation has paid them less than the men’s team. Yet the numbers work in the women’s favor. Since their World Cup win in 2015, women’s soccer games have also produced a higher revenue than the men’s, according toa report from the Wall Street Journal. From 2016-2018, they also generated $50.8 million in revenue, compared to the men’s $49.9 million, according to The Journal. “They’ve been iconic ever since 1999, and have continued to show excellence on and off the field throughout the history of the team,” he told Yahoo Finance. Off the field, Powerade (KO) recently launched its “Power Has No Gender” campaign. the company partnered with the foundation to offer more access for kids in underserved communities. It’s an initiative that Foster-Simeon hopes will generate more interest in the sport among the young. “What I’m really excited about is the ability to create more access and opportunity for girls, particularly girls and boys in underserved communities to be able to participate in this sport,” he said. In partnership with three players on the Women’s National Team — Alex Morgan, Crystal Dunn, and Kelley O’Hara — three fields will be built in the player’s hometowns of New York City, Los Angeles, and Atlanta. Foster-Simeon added that the U.S. Soccer Foundation is “ a charitable organization which is focused on creating access and opportunity for those kids who don’t have an opportunity to participate.” Editor’s note: The Wall Street Journal reported that women’s soccer generated $50.8 million in revenue in 2016-2018. McKenzie DeGroot is a producer at Yahoo Finance. Follow her on Twitter:@degrootmckenzie Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,SmartNews,LinkedIn,YouTube, andreddit.
GBP/JPY Price Forecast – British pound continues to soften against Japanese yen The British poundtry to rally initially during the trading session on Friday, but then rolled over a bit to show signs of weakness again. Quite frankly I think that we are probably going to see a lot of choppiness, but most certainly a negative bias. This makes a lot of sense though, because we have the Brexit going on and still as clear as mud, but beyond that this pair tends to be a risk appetite barometer as well. With that being the case it makes sense that this pair will fall as we have US/China trade relations still being strained via the trade war, but we now have the United States and Iran flexing at each other. That has people looking for the safety of the Japanese yen against most currencies, and of course with all of the extra noise around the British pound, it makes sense that this market would continue to drift lower. The ¥135 level underneath is major support, but quite frankly we have already broken below the 61.8% Fibonacci retracement level so it makes sense that the pair continues to try to wipe out the entirety of the move higher. That suggests a move closer to the ¥131 level, but at this point it would not be overly surprising to see a bit of choppiness because we have fallen so hard and in such a short amount of time. That being said, all it is going to take is one stupid Tweet, or perhaps somebody involved in the elections in London to say something just as brilliant to send this pair much lower. Please let us know what you think in the comments below Thisarticlewas originally posted on FX Empire • UK Credit Impulse Contracts for Seven Consecutive Quarters • European Equities: German Business Confidence and Geopolitics in Focus • Price of Gold Fundamental Weekly Forecast – Strength of Rally Could Hinge on Powell’s Speech • Air of Caution in Markets Ahead of “major” US Sanctions, Trump-Xi Meeting • E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – June 24, 2019 Forecast • U.S. Dollar Index Futures (DX) Technical Analysis – June 24, 2019 Forecast
How Much Are LTC Properties, Inc. (NYSE:LTC) Insiders Taking Off The Table? Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in LTC Properties, Inc. ( NYSE:LTC ). What Is Insider Selling? 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 equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' See our latest analysis for LTC Properties LTC Properties Insider Transactions Over The Last Year The Independent Director, Timothy Triche, made the biggest insider sale in the last 12 months. That single transaction was for US$129k worth of shares at a price of US$46.17 each. That means that even when the share price was below the current price of US$47.32, an insider wanted to cash in some shares. 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. This single sale was just 7.2% of Timothy Triche's stake. Timothy Triche was the only individual insider to sell over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date! Story continues NYSE:LTC Recent Insider Trading, June 21st 2019 For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket. Insider Ownership Many investors like to check how much of a company is owned by 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. It appears that LTC Properties insiders own 1.7% of the company, worth about US$33m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment. So What Do The LTC Properties Insider Transactions Indicate? An insider sold stock recently, but they haven't been buying. And even if we look to the last year, we didn't see any purchases. But since LTC Properties is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd think twice before buying! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future . Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list 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 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.
USD/JPY Price Forecast – US dollar looking for support against Japanese yen The US dollar initially fellduring the trading session on Friday but found enough support to turn around and form a slightly bullish candle. That being said though, we have recently seen a lot of selling pressure and it’s very likely that we will continue to go much lower. In fact, now that we are below the 61.8% Fibonacci retracement level tells me that the market is probably going to try to wipe out the overall move to the upside, sending this market down to the ¥105 level. All things being equal though, I think that this market is likely to continue to drift lower not only because of the technical breakdown but also the fact that we still have problems between the United States and China, and of course concerns about global growth. If that’s going to be the case it’s very likely that the Japanese yen will continue to strengthen overall as we are seeing not only against the US dollar, but several other currencies out there. Adding more fuel to the fire in this pair is the fact that the Federal Reserve has shown itself to be dovish, and now it’s very likely that the US dollar started to drift lower against many other currencies, and when it’s loose monetary policy as the Japanese yen that really takes off to the upside. Rallies at this point are to be sold until we can break above the ¥108.75 level above. Please let us know what you think in the comments below Thisarticlewas originally posted on FX Empire • E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – June 24, 2019 Forecast • Asian Markets Mixed on Concerns Over U.S.-China Relations • NZD/USD Forex Technical Analysis – .6581 Controlling Direction This Week • German Business Confidence and Iran Put the EUR and USD in Focus • European Equities: German Business Confidence and Geopolitics in Focus • USD/JPY Forex Technical Analysis – Key Area to Watch This Week is 107.905 to 107.940
Oxfam Partners With Tech Firms to Test Dai’s Use in Disaster Aid International charity organization Oxfam has partnered withAustraliantech startup Sempo andblockchaincompanyConsenSysto test stablecoin Dai’s (DAI) suitability for aid in regions suffering from natural disasters, local news outlet Mickyreportedon June 17. The parties launched a philanthropic initiative dubbed UnBlocked Cash with the support of the AustralianGovernment. To test the system, Sempo and Oxfam chose purportedly the world’s most natural disaster-prone country, Vanuatu. During the trial, 200 residents of the island Efate were given tap and pay cards containing around 400 vatu each ($50 at press time) connected to an Ethereum (ETH) address credited by Oxfam with $50 worth of Dai. 34 local vendors were provided withAndroidsmartphones to be able to accept payments. Sempo co-founder Nick Williams claimed that this is the first time a non-governmental organization (NGO) has used a stablecoin to provide ain anywhere, and also said that this is not a one-off pilot as the company believes that stablecoins can completely change the way of aid delivery. Sandra Hart, the Unblocked Project lead at Oxfam in Vanuatu, said: “For the first time ever, thanks to the use of a stablecoin, we now have end-to-end transparency, ensuring that the people who receive funds are the ones that need it. It’s a game changer for Oxfam that ultimately makes our work easier and more effective.” Last November, Oxfamlaunchedits BlocRice blockchainsupply chainsolution for rice. BlocRice, which aims to use smart contracts to provide transparency and security between rice growers inCambodiaand purchasers in theNetherlands, has been under development and should purportedly expand to 5,000 farms by 2022. At press time, Dai — which is pegged to the United States dollar — is ranked 87th onCoinMarketCap’slist of cryptocurrencies. Dai is currently trading at $1, having gained 0.54% over the past day. The stablecoin’s market capitalization is around $85.6 million, while its daily trading volume is around $19.8 million as of press time. • Head of Facebook’s Libra Distances it From BTC: We’ll Share Information With Authorities • Binance Research: Facebook’s Libra Could Spark Additional Cryptocurrency Volume • Facebook to Unveil ‘Libra Association’ and Launch Testnet Next Week: Report • From Clean Water Supply to Rebuilding Notre Dame: Crypto and Blockchain in Charity
Wall Street Week Ahead: Investors eye G20 with hopes for U.S.-China trade detente By Sinéad Carew NEW YORK (Reuters) - All eyes will be on U.S. President Donald Trump and China's President Xi Jinping next week as investors are desperate for any signs of a thaw in U.S.-China relations even if it shifts expectations for much awaited Federal Reserve interest rate cuts. The S&P 500 closed at a record high on Thursday after the U.S. central bank said it was ready to cut rates if needed in the face of growing risks including the U.S.-China trade war. The benchmark index was volatile on Friday as hopes of trade progress offset concerns about U.S.-Iran tensions. To extend the rally, one requirement will be friendly talks between the leaders of the world's two biggest economies. They are expected to meet in Japan on the sidelines of a Group of 20 (G20) summit next week. U.S.-China negotiations spectacularly broke down in early May after Trump accused China of retreating from previous commitments, causing a market sell-off. Trump then slapped 25% tariffs on $200 billion of Chinese imports to the United States and threatened 25% tariffs on another $325 billion of Chinese goods, creating massive corporate and investor uncertainty that has pressured global economic growth. In a press conference after the Fed's policy meeting this week, Chairman Jerome Powell said while the baseline economic outlook remains "favorable," risks continue to grow, including the drag rising trade tensions may have on U.S. business investment and signs of slowing economic growth overseas. As the S&P has erased May's 6.6% drop on hopes for a rate cut and U.S.-China trade deal progress, strategists were hopeful ahead of the G20 summit. Adding to optimism was a Wall Street Journal report on Friday, citing an unnamed senior administration official, that U.S. Vice President Mike Pence would postpone a planned speech on China policy to avoid stoking tensions before the Trump-Xi meeting. Investors do not need "a complete deal at the G20 to add more confidence to the market but the market needs some assurance there's a de-escalation of trade tensions," said Frances Donald, chief economist and head of macroeconomic strategy at Manulife Investment Management in Toronto. "The best the market can expect out of the G20 is a handshake and a commitment to resume talking," said Paul Christopher, head of global market strategy at Wells Fargo Investment Institute in St. Louis, Missouri. This could be enough to pep up the trade-weary market while anything less could cause the market to nosedive. "The market is already primed for a bad outcome," said Jared Woodard, global investment strategist at BofA Merrill Lynch Global Research. "If you saw a tariff reduction, or even friendly progress that takes escalation off the table, it would give you a huge bullish market response." He estimated that the S&P could rise above 3,000 if the G20 meeting goes well. It closed at 2,954.18 on Thursday. But if there is no progress, the benchmark index could fall back down back down to 2,750, Woodard said: "At that point investors would expect a more aggressive response from the Fed or a more conciliatory tone from the president." Traders are betting on at least three rate cuts by the end of the year, placing the probability of a July cut at 100%, according to the CME FedWatch tool. One uncertainty investors face is whether positive Trump-Xi talks could delay a Fed rate cut. U.S. economic growth, while slowing, is strong enough that "the Fed can afford to wait a while" to monitor trade-talk progress, Wells Fargo's Christopher said. But if investors have to weigh a trade de-escalation with the possibility of fewer-than-hoped-for rate cuts, they will likely recognize "that a trade deal is a more powerful boost to U.S. growth than Fed cuts," said Manulife's Donald. "U.S. companies are not suffering from lack of affordable funding. They're suffering from a lack of clarity about the future of the economy because of trade tensions," she said. (Reporting by Sinéad Carew; Additional reporting by Lewis Krauskopf and Richard Leong; Editing by Alden Bentley and Richard Chang)
ACB Stock Is a Buy Because Aurora Cannabis Won’t Get Left in the Dust With the markets near all-time highs, there has been a nice rally in cannabis stocks, butAurora Cannabis(NYSE:ACB) seems to have missed the memo. ACB stock has been languishing. During the past couple weeks,Tilray(NASDAQ:TLRY) has logged a return of 32% whileCronos Group(NASDAQ:CRON) is up about 17% andCanopy Growth(NYSE:CGC) has gained 11%. Unfortunately, ACB stock has been in an extended downtrend, going from $10 in March to $7.48. InvestorPlace - Stock Market News, Stock Advice & Trading Tips For the year so far Aurora Cannabis stock is still up an impressive 43%. When it comes to cannabis stocks, there is usually quite a bit of volatility and this is not likely to change any time soon. • 6 Stocks Ready to Bounce on a Trade Deal The bearishness with ACB has been the result of various factors. Although, perhaps the most important is the string of disappointing earnings reports. Note that the Canadian market has proven more difficult with the transitional to legalized marijuana. There have been challenges with the supply chain and retail expansion. What’s more, black market sources have remained a persistent issue. But hey, such growing pains should be no surprise. If anything, the recent weakness does make ACB stock look relatively attractive. Consider that the consensus price target is $14.27, which implies 91% upside from current levels. So what are some of the catalysts to get ACB stock back on track? Well, first of all, the company is a top producer in the Canadian market. During the latest quarter, the production nearly doubled to 15,000 kilograms. But with the acquisition of MedReleaf and a myriad of other investments, the potential annual capacity is a hefty 570,000 kilograms. The early experience in the Canadian market is crucial. Aurora is building a solid infrastructure, which will allow for economies of scale. This make it so the company can better compete as cannabis becomes more commoditized in the Canadian market. In fact, Aurora is already becoming a streamlined low-cost provider. But another key – especially for the long haul – is the medical business. The pipeline includes 40 in-process and completed clinical trials and case studies. There has also been continued growth in the patient base, which grew by 5% in 77,136 in the latest quarter. Another important development is a recent partnership with the Ultimate Fighting Championship (UFC), which is the world’s largest martial arts organization. The agreement calls for an exclusive multi-year focus on clinical research using Cannabidiol (CBD), which is the compound in the cannabis sativa plant that does not produce a high. In other words, there is much potential for breakthroughs with new treatments. With the passage of the Farm bill, the CBD opportunity in the US looks promising and should be a strong catalyst for growth. During the latest earnings call, Aurora chief corporate officer Cam Battley had the following tosay: “We are well positioned to pursue multiple angles through our deep research and product development capabilities, our regulatory expertise as well as our extensive global hemp infrastructure which we intend to expand through acquiring the shares in HempCo, not already owned by Aurora. CBD for both medical and wellness applications has incredible potential and we intend to fully leverage our capabilities, our infrastructure and our partnership potential to maximize shareholder value creation.” In mid-May, Aurora brought on board as a strategic advisor Nelson Peltz, who is the CEO of Trian Fund Management. He has decades of experience with consumer markets, with investments in companies likePepsiCo (NASDAQ:PEP),Keurig Dr Pepper(NYSE:KDP),Procter & Gamble(NYSE:PG) andMondelez(NASDAQ:MDLZ). Peltz’s involvement is a strong validator. He should also be essential in finding strategic partners. Of course, even with the advantages, ACB stock still has lots of risks. But for investors looking for an interesting cannabis play, this one definitely is worth considering. Tom Taulli is the author of the upcoming book,Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at@ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. • 4 Top American Penny Pot Stocks (Buy Before June 21) • 7 Blue-Chip Stocks to Buy for a Noisy Market • 5 Strong Buy Biotech Stocks for the Second Half • 6 Stocks Ready to Bounce on a Trade Deal Compare Brokers The postACB Stock Is a Buy Because Aurora Cannabis Won’t Get Left in the Dustappeared first onInvestorPlace.
Kendall Jenner Just Copied Bella Hadid's Outfit — But They Both Stole It From Keanu Reeves We knew the Internet had a strong obsession with Keanu Reeves , but now, the actor might be secretly influencing our fashion choices, too. Take Kendall Jenner , for instance. When the model pulled on her latest look, did she realize she was actually channeling his character Neo from The Matrix ? While out in NYC on Thursday, Jenner wore brown leather suit, which she paired with a simple white shirt and white sneakers. It was the perfect mix of cool and casual, and although we first drew comparisons between Jenner and Bella Hadid , who stepped out in a similar set back in April, we were suddenly reminded of Reeve's 1999 film. Leather suits (albeit, black ones) were a big part of The Matrix, and his character even wore another current fashion favorite, tiny sunglasses. Robert Kamau/GC Images Hadid first stepped out in a Matrix -y ensemble back in April, and made sure to wear similar shades as the main character. Alamy Stock Photo Did Neo serve as style inspiration for these ladies? Honestly, probably not — but the resemblance is uncanny! VIDEO: Bella Hadid Says Her No-Smiling Era Is Over Between these two outfits and Zendaya copying Julia Roberts's gray suit , 2019 might officially be the year of recreating iconic '90s looks.
Hertz Global News: HTZ Stock Tumbles Further on Rights Offering Fallout Hertz Global news for Friday includes the company seeing its stock continue to fall on a recent rights offering. Source:Steve Damron via Flickr Hertz Global(NYSE:HTZ) stock has been taking a beating these past few days after announcing a rights offering to raise money. This will have the company looking to raise up to $750 million. Holders of HTZ stock will receive one transferable subscription right for each share that they own. These will be sent out on June 24, 2019 at 5:00 p.m. Eastern Time. The Hertz Global news says that the rights offering distribution will start on June 26, 2019. The ability to trade these rights in on the New York Stock Exchangestarted on June 20, 2019on a “when-issued” basis. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Regular trading of the rights is expected to start on June 27, 2019 and will use the stock ticker “HTZ RT”. The company says that this will continue until the offer closes on July 11, 2019. The Hertz Global news notes that each of the transferable subscription rights can be traded in for 0.688285 shares of HTZ stock at a subscription price of $12.95 per while share. The rights offering will expire at 5:00 p.m. Eastern Time on July 12, 2019. • The 7 Best Dow Jones Stocks to Buy for the Rest of 2019 All of this Hertz Global news rattled investors and the stock was falling hard on Friday. HTZ stock is currently down 12% as of noon Friday. However, it is worth pointing out that HTZ stock is up 32% since the start of the year. • 4 Top American Penny Pot Stocks (Buy Before June 21) • The 7 Best Dow Jones Stocks to Buy for the Rest of 2019 • 5 Boring Stocks to Buy This Summer • 7 S&P 500 Stocks to Buy With Little Debt and Lots of Profits As of this writing, William White did not hold a position in any of the aforementioned securities. Compare Brokers The postHertz Global News: HTZ Stock Tumbles Further on Rights Offering Falloutappeared first onInvestorPlace.
Mercury General Corporation's (NYSE:MCY) 4.1% Dividend Yield Looks Pretty Interesting Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Dividend paying stocks like Mercury General Corporation (NYSE:MCY) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. In this case, Mercury General likely looks attractive to investors, given its 4.1% dividend yield and a payment history of over ten years. We'd guess that plenty of investors have purchased it for the income. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below. Click the interactive chart for our full dividend analysis Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. 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 80% of Mercury General's profits were paid out as dividends in the last 12 months. Paying out a majority of its earnings limits the amount that can be reinvested in the business. This may indicate a commitment to paying a dividend, or a dearth of investment opportunities. Remember, you can always get a snapshot of Mercury General's latest financial position,by checking our visualisation of its financial health. Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. For the purpose of this article, we only scrutinise the last decade of Mercury General's dividend payments. The dividend has been stable over the past 10 years, which is great. We think this could suggest some resilience to the business and its dividends. During the past ten-year period, the first annual payment was US$2.32 in 2009, compared to US$2.51 last year. Dividend payments have grown at less than 1% a year over this period. Dividends have grown relatively slowly, which is not great, but some investors may value the relative consistency of the dividend. Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. Earnings have grown at around 8.9% a year for the past five years, which is better than seeing them shrink! Past earnings growth has been decent, but unless this is one of those rare businesses that can grow without additional capital investment or marketing spend, we'd generally expect the higher payout ratio to limit its future growth prospects. To summarise, shareholders should always check that Mercury General's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. Mercury General's payout ratio is within an average range for most market participants. That said, we were glad to see it growing earnings and paying a fairly consistent dividend. Mercury General has a number of positive attributes, but falls short of our ideal dividend company. It may be worth a look at the right price, though. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 3 analysts we track are forecasting for Mercury Generalfor freewith publicanalyst estimates for the company. If you are a dividend investor, you might also want to look at ourcurated list of dividend stocks yielding above 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Supreme Court Strikes Down Black Man's Murder Conviction After 22 Years on Death Row The U.S. Supreme Court threw out the conviction and death sentence for Curtis Flowers, a black man who has been on death row in Mississippi for 22 years. Flowers was tried six times by the same prosecutor for the 1996 murder of four furniture store employees in Winona, Miss., though he had no criminal record prior to this case. Doug Evans, the Winona district attorney who prosecuted Flowers is said to have a history of racial bias in the jury selection process. Flowers accused Evans of repeatedly removing black people from the jury in each of his trials, two of which resulted in mistrials. Another three times, the state Supreme Courtstruck down Flowers’ murder convictionover prosecutorial misconduct, including misleading questions about evidence that did not exist and racial bias in jury selection. “Equal justice under law requires a criminal trial free of racial discrimination in the jury selection process,” Justice Brett Kavanaughwrotein the high court’s 7-2 ruling. Kavanaugh further argued that Evans pushed for the removal of 41 of the 42 black prospective jurors in all six trials, and “engaged in dramatically disparate questioning of black and white prospective jurors.” Justices Clarence Thomas and Neil Gorsuch dissented. Thomas called Kavanaugh’s opinion “manifestly incorrect” and suggested that Flowers did not present any evidence to support his claims of racial discrimination. It remains unclear whether the state of Mississippi will try Flowers again for a seventh time. —Trump’sMAGA rallies cost big bucks—and cities foot the bills —Black women voterswill be central to the 2020 election, experts predict —Can Trump fire Fed Chair Jerome Powell?What history tells us —Alexandria Ocasio-Cortez’s message for democrats after“boy bye” tweet —What you need to know about theupcoming 2020 primary debates Get up to speed on your morning commute withFortune’sCEO Dailynewsletter.
With A Return On Equity Of 10%, Has Mercury General Corporation's (NYSE:MCY) Management Done Well? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. By way of learning-by-doing, we'll look at ROE to gain a better understanding of Mercury General Corporation (NYSE:MCY). Over the last twelve monthsMercury General has recorded a ROE of 10%. That means that for every $1 worth of shareholders' equity, it generated $0.10 in profit. Check out our latest analysis for Mercury General Theformula for ROEis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Mercury General: 10% = US$173m ÷ US$1.7b (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 all the money paid into the company from shareholders, plus any earnings retained. Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company. ROE measures a company's profitability against the profit it retains, and any outside investments. The 'return' is the profit over the last twelve months. That means that the higher the ROE, the more profitable the company is. So, all else being equal,a high ROE is better than a low one. Clearly, then, one can use ROE to compare different companies. By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. If you look at the image below, you can see Mercury General has a similar ROE to the average in the Insurance industry classification (8.6%). That's neither particularly good, nor bad. ROE doesn't tell us if the share price is low, but it can inform us to the nature of the business. For those looking for a bargain, other factors may be more important. I will like Mercury General better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying. Virtually all companies need money to invest in the business, to grow profits. That cash can come from issuing shares, retained earnings, 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. Although Mercury General does use debt, its debt to equity ratio of 0.22 is still low. Although the ROE isn't overly impressive, the debt load is modest, suggesting the business has potential. Careful use of debt to boost returns is often very good for shareholders. However, it could reduce the company's ability to take advantage of future opportunities. Return on equity is one way we can compare the business quality of different companies. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE. Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So I think it may be worth checking thisfreereport on analyst forecasts for the company. Of courseMercury General may not be the best stock to buy. So you may wish to see thisfreecollection of other companies that have high ROE and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
How Does MediWound Ltd. (NASDAQ:MDWD) Affect Your Portfolio Volatility? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! If you own shares in MediWound Ltd. (NASDAQ:MDWD) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. In finance, Beta is a measure of volatility. 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 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 see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated price movements. Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). However, Warren Buffett said 'volatility is far from synonymous with risk' in his 2014 letter to investors. So, while useful, beta is not the only metric to consider. To use beta as an investor, you must first understand that the overall market has a beta of one. Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market. See our latest analysis for MediWound Zooming in on MediWound, we see it has a five year beta of 0.81. This is below 1, so historically its share price has been rather independent from the market. This suggests that including it in your portfolio will reduce volatility arising from broader market movements, assuming your portfolio's weighted average beta is higher than 0.81. 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 MediWound's revenue and earnings in the image below. MediWound is a rather small company. It has a market capitalisation of US$97m, which means it is probably under the radar of most investors. It is not unusual for very small companies to have a low beta value, especially if only low volumes of shares are traded. Even when they are traded more actively, the share price is often more susceptible to company specific developments than overall market volatility. The MediWound doesn't usually show much sensitivity to the broader market. This could be for a variety of reasons. Typically, smaller companies have a low beta if their share price tends to move a lot due to company specific developments. Alternatively, an strong dividend payer might move less than the market because investors are valuing it for its income stream. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as MediWound’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 MDWD’s future growth? Take a look at ourfree research report of analyst consensusfor MDWD’s outlook. 2. Past Track Record: Has MDWD 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 MDWD's historicalsfor more clarity. 3. Other Interesting Stocks: It's worth checking to see how MDWD 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.
Celsius faces pressure over its ICO token, suspending distribution with immediate effect Celsius, a global cryptocurrency lending startup, could be in hot water over the status of its native token, after it took precautionary measures this week and suspended the asset's distribution in the U.S. The firm, which sold CEL tokens for $50 million in an ICO in March 2018, sent an email (shown below) to its American users explaining that interest payments in the token, CEL, had been paused with immediate effect, saying the move had been prompted following instruction "from legal counsel." Picture: The email sent to Celsius members explaining the move The firm, which launchedin 2018and claims to have more than 10,000 accounts, generates funds through its main lending business and then redistributes it as interest. It reportedly pays interest of up to 6.7% on investments, paid in CEL or in the digital asset that was invested. Benefits of being paid in CEL including "lower interest rates on coin and fiat loans, higher earned interests on non-CEL deposits, [and] a cashback rewards program." Still, by using the token to pay interest, Celsius may have been treading a regulatory fine line says Stephen Palley, a crypto-specialized lawyer at Anderson Kill. "On the one hand, it appears they've been advised by lawyers that interest payments may make the token look like a security to US regulators. On the other hand, they surely recognize that by stopping these payments they face some litigation risk as well. This is what lawyers called a Hobson's choice - meaning you're damned if you do and you're damned if you don't," he said. He added that stopping payments now would not necessarily remedy any potential previous misstep. The CEL tokenwas listedon Liquid earlier this month but trades at 26% of itsICO price(where it raised $50M) with virtually no liquidity. Sources also told The Block that the reason CEL is not listed on any large exchanges is because they don't feel comfortable with its regulatory status. Celsius' COO Daniel Leon denied that was the case. Crypto-secured lending is a nascent lending market that has seen significant uptake in both growth and innovation over the prior 12 months. But it has been plagued with regulatory issues and few successes so far. Newcomer Celsius was pitched to bring new promise to the space, joining fellow token-based lending platforms Nexo and Salt. [related id="1"] The firm noted they would have an update "in the next few weeks" about CEL's fate. "CEL cannot be used in the US, period. This is a complete block," Celsius' Leon told The Block. "We will continue to work with a group of esteemed lawyers to come up with a solution while staying fully compliant." Asked about the reaction from customers, Leon said: "People appreciated it. They said 'you're thinking long term.' We're lucky to have customers who recognise how hard we work." He also confirmed that 40% of the users were from the US, 30% were from Europe and the rest from Asia. Users in the latter two geographies will not be affected by CEL's withdrawal.
Chip and Joannas $10.4 Million Magnolia Market Expansion Includes Relocating a Historic Church In case you needed further proof that Chip and Joanna Gaines are destined to take over the world, the Fixer Upper super couple recently announced a massive, $10.4 million expansion of their Waco wonderland. Waco Tribune-Herald reports that Gaineses ambitious plan for improving Magnolia Market at the Silos includes a whiffle ball field, more retail, a coffee shop, gardens, splash pad, and the relocation of a historic Waco church. And the whole thing is expected to be completed before the end of the year. Phew! Proposed changes to the 4.9-acre site, which already draws an estimated 30,000 visitors per week, include transforming the parking lot into a retail village arranged around a green lawn. According to the Tribune , this village will include eight buildings: five retail spaces, two bathrooms, and one information center. WATCH: The Rundown on Chip and Joanna Gaines Post Fixer Upper Plans The green will be anchored by the Second Presbyterian Church building, which currently sits less than a mile from the Silos at 510 N. 13th Street. The church, which was originally built in 1894, sat vacant for decades before the Gaineses purchased it in February of 2017 . The master plan reportedly states the church would be used as a place to sit and possibly hold seminars. Preservationists hope Magnolia can rescue 123-year-old Waco church https://t.co/JzfzxCFjdl pic.twitter.com/8NnqvHrkHx Bruce Tomaso (@brucetomaso) October 23, 2017 Joanna discussed the decision to purchase the historic church in the Fall 2018 issue of The Magnolia Journal . There are certain projects that sit in my heart. This is one of them," she said. "This church has a soul, and I look forward to letting it share its own story. Were not rushing it; well let it tell us in its own time. Thats what keeps me hanging on to this one." Story continues . @magnolia Market at the Silos plans to make $10.4 million in renovations and additions before the end of the year, with plans to add a whiffle ball field, more shops, gardens and a relocated historic Waco church to the 4.9-acre site. https://t.co/C1cx41sGL7 pic.twitter.com/gVEOVB1zNJ Waco Tribune-Herald (@wacotrib) June 20, 2019 Relocating the aging structure wont be easy. Architect Sterling Thomson told the Tribune , that the steeple may even have to be removed and reattached during the move. Whether they have to dissect the building or not, its a big job, Thompson said. But moving a structure that big can be done.
Why Things Will Get Better for Ford Stock Shares of U.S. auto giantFord(NYSE:F) have sputtered lower over the past several years, with Ford stock price today about $10 versus $17 about five years ago. The reason that Ford stock price today is so low is the company’s unfavorable and deteriorating fundamentals. Source: Shutterstock In a nutshell, Ford is losing market share to electric-vehicle players, in a shrinking auto market challenged by the sharing economy. Moreover, its margins are under pressure from rising costs and slowing growth. The net result has been profit erosion. Ford’s pre-tax profits in 2015 were north of $10 billion. In 2018, they were under $4.5 billion. • Top 7 Dow Jones Stocks of 2019 -- So Far Thus, the multi-year downtrend in Ford stock and the weakness of Ford stock price today are easily explained by a lack of fundamental and financial strength over the past several years. InvestorPlace - Stock Market News, Stock Advice & Trading Tips But, while things have been bad for Ford stock, they won’t be bad forever. Indeed, the fundamentals underlying Ford stock could dramatically improve over the next several years. If they do, profit growth will come back into the picture, and that should spark a reasonably large rally in Ford stock, enabling the shares to ruse meaningfully above the depressed levels of Ford stock price today. The takeaway is that investors should buy Ford stock today because things are bound to get better for Ford. There’s no way to sugarcoat the outlook which has driven Ford stock price lower the past several years. In simple terms, its outlook has been very bad. First, Ford is losing market share. There are a few things at play here. But the biggest thing is that competition from electric vehicles is ramping, and Ford has failed to keep up with the competition. Thus, as electric cars have become more popular, Ford has lost market share. Second, F is losing market share in a shrinking market. The auto market had been steadily expanding for several years. But, for the first time in several decades, car-ownership rates in the U.S. are shrinking. That’s because of the rise of the sharing economy and ride-sharing apps, which have lessened the need for urban residents to own a car. With that need down, car-ownership rates have dropped slightly, and the auto market’s steady growth has tapered off. Third, Ford’s margins have been under pressure. The auto industry doesn’t have high profit margins, so any cost pressures are really felt on the bottom line. F has unfortunately encountered multiple cost pressures over the past several years, ranging from lower prices to capacity additions to rising technology costs. On top of slowed revenue growth, these cost pressures caused its profits to drop meaningfully. Overall, then, the outlook of Ford stock over the past several years has become really bad. That’s why Ford stock price today is just $10. But the bull thesis on Ford stock here and now is centered around the idea that this outlook is in the early stages of reversing course. There are multiple reasons to believe that the outlook of Ford stock – which has been depressed for the past five years – will improve in a meaningful way over the next five years. First, on the market-share front, F is aggressively pivoting into next-generation vehicles. This pivot is centered around developing 40 hybrid and electric vehicle models by 2022, the sum of which should help Ford hold its own in the electric-vehicle market. Further, Ford is a leading player in autonomous driving, and it just agreed topartnerwithVolkswagen(OTC:VWAGY) on self-driving technology. Second, when it comes to the overall auto market,the negative trend of the sharing economy should be partially offset by low interest rates and reduced trade tensions. At the present moment, trade tensions between the U.S. and China are deescalating. The most likely outcome is a resolution of the dispute within the next few months. If such a resolution occurs, global auto demand will stabilize. Further, it looks like a Fed rate cut is on the way. Thus, for the foreseeable future, the U.S. economy will be defined by low borrowing costs, which is favorable for the auto market. Third, on the margin front, F is launching multiple restructuring initiatives across its various international businesses, the sum of which should cut costs and turn those money-losing businesses into money-making ones. At the same time, the company is cutting the costs of its already profitable U.S. business, and those efforts should similarly improve its profit margins. As a result, Ford’s margins should start to trend higher from today’s depressed base. Overall, the three major headwinds, which have weighed on Ford stock over the past several years, should reverse course over the next several years, ultimately sparking a rebound by F stock from the low Ford stock price today . The fundamentals and outlook of Ford stock have been depressed for several years. That’s why F stock has dropped from $17 to $10 over the past five years. But current trends indicate that Ford’s fundamentals will improve over the next few years. As they do, Ford stock should rally meaningfully from the low levels of Ford stock price today. As of this writing, Luke Lango was long F. • 4 Top American Penny Pot Stocks (Buy Before June 21) • The 7 Best Dow Jones Stocks to Buy for the Rest of 2019 • 5 Boring Stocks to Buy This Summer • 7 S&P 500 Stocks to Buy With Little Debt and Lots of Profits Compare Brokers The postWhy Things Will Get Better for Ford Stockappeared first onInvestorPlace.
Does The MediWound Ltd. (NASDAQ:MDWD) Share Price Tend To Follow The Market? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Anyone researching MediWound Ltd. (NASDAQ:MDWD) might want to consider the historical volatility of the share price. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. The first type is company specific volatility. Investors use diversification across uncorrelated stocks to reduce this kind of price volatility across the portfolio. 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 are more sensitive to general market forces than others. Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). However, Warren Buffett said 'volatility is far from synonymous with risk' in his 2014 letter to investors. So, while useful, beta is not the only metric to consider. To use beta as an investor, you must first understand that the overall market has a beta of one. A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price. View our latest analysis for MediWound Looking at the last five years, MediWound has a beta of 0.81. The fact that this is well below 1 indicates that its share price movements haven't historically been very sensitive to overall market volatility. This means that -- if history is a guide -- buying the stock would reduce the impact of overall market volatility in many portfolios (depending on the beta of the portfolio, of course). Share price volatility is well worth considering, but most long term investors consider the history of revenue and earnings growth to be more important. Take a look at how MediWound fares in that regard, below. With a market capitalisation of US$97m, MediWound is a very small company by global standards. It is quite likely to be unknown to most investors. Companies with market capitalisations around this size often show poor correlation with the broader market because market volatility is overshadowed by company specific events, or other factors. It's worth checking to see how often shares are traded, because very small companies with very low beta values are often only thinly traded. Since MediWound is not heavily influenced by market moves, its share price is probably far more dependend on company specific developments. It could pay to take a closer look at metrics such as revenue growth, earnings growth, and debt. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as MediWound’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 MDWD’s future growth? Take a look at ourfree research report of analyst consensusfor MDWD’s outlook. 2. Past Track Record: Has MDWD 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 MDWD's historicalsfor more clarity. 3. Other Interesting Stocks: It's worth checking to see how MDWD 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.
Think Tank: How Luxury Brands Can Stay Ahead in the Age of Amazon During an earnings call in 2016, Jean-Jacques Guiony, the chief financial officer of LVMH the luxury conglomerate whose brands include Louis Vuitton, Dior and Bulgari said, there is no way we can do business with them. By them, Guiony meant Amazon , a company he believed to be the antithesis of what a luxury retail experience should be. Three years later, all three of those brands have their own Amazon stores. As do Chanel, Gucci and Tiffany & Co. When it comes to digital transformation, luxury retailers have famously lagged behind their main street counterparts. Consumers pay a premium for luxury brands and what they represent: heritage, craftsmanship, sophistication and stylishness. Luxury shopping has always been geared toward maintaining that VIP image through VIP service. That experience lends itself to a physical store, difficult to replicate online. Related stories Tracy Reese Launches Collections, Discusses Path to Sustainability Shaq Wants to Buy Reebok How an Aspiring Influencer's Branded Proposal Pushes #SponCon Limits But they must. Luxury retailers Amazon shops typically have curated, limited selections, but the fact that they exist demonstrates how high the stakes have become. The Internet has democratized the exclusivity of luxury brands, whose customers are increasingly moved online. Over the past five years, luxury brands have outpaced the global market in e-commerce growth. McKinsey & Co. projects that e-commerce will make up 19 percent of the luxury market by 2025, up from 8 percent in 2016, when it was unfathomable to find Louis Vuitton bags on Amazon. Recognizing how high the stakes are is the first step, but it isnt enough. As Amazon increasingly becomes synonymous with shopping, luxury leaders need a roadmap for where to focus next. 1. Understand Personalization Companies that fully invested in personalization outsold their competitors by 30 percent last year, according to Boston Consulting Group. That success is predicated on understanding what personalization truly is and is not. Personalization is considering what makes a brand and its buyers unique, and building programs and integrating technology that makes the most of those differentiators. Story continues Many marketers and merchandisers hear personalization and think product recommendations, which can be a challenge for luxury brand adoption. These retailers must go beyond recommendations, a small piece of the personalization puzzle, and look at the entire customer life cycle. Triggered messages are sent in response to specific behaviors along that life cycle: signing up for your mailing list, making a purchase or abandoning a shopping cart. Personalized by nature, with significant room for ongoing testing, optimization and layering of personalization based on when and where the triggering activity took place, they outperform generic batch-and-blast campaigns, generating more than three-quarters of e-mail marketing revenue. Within the body of the e-mail, personalization can also mean dynamic categories. If you can always count on a particular customer to shop shoes, lead with that, ensuring that shoes are the first thing she sees. Take the same approach to your mobile app, highlighting the product categories where each customers interests and predicted purchases lie while maintaining your high brand image, of course. Bringing personalization to mobile is especially important because smartphones represent the bridge between online and off-line. Its common practice to use smartphones in-store to research products and compare prices. Why not use those devices to provide white-glove service in a modern way? Options include using geolocation to roll out the red carpet before the customer arrives, turning your app into a concierge service, and allowing shoppers to learn more via strategically placed QR codes. 2. Invest in E-mail Marketing In addition to consistently producing the highest ROI for retailers, e-mail marketing is typically the litmus test for who delivers premier personalized shopping experiences. Every year, Sailthru embarks on an exhaustive analysis of more than 250 brands for our Retail Personalization Index. Our researchers evaluate, score and rank these brands based on their web, e-mail, mobile, in-store, display, direct and social tactics. Points are awarded by category. There are 30 available points in the e-mail category, which are earned by anything from including a customers name in subject lines to personalizing the closest store location-based on where they open their e-mail. The brands that made the Personalization Indexs top 10 scored an average of 25 points. The average luxury brand scored a 12. E-mail is an important channel for luxury retailers, because like mobile devices it can bridge the gap between online shopping and brick-and-mortar stores. For one, e-mail is a great way to drive traffic to physical stores, where luxury shines. Designers often offer exclusive looks at upcoming collections, either at their own stores or luxury multibrand retailers such as Saks Fifth Avenue and Neiman Marcus. E-mail is an easy way to let customers know its happening; alerting them also helps them feel like insiders. Savvy retailers also use e-mail to promote preferred items and share personalized in-store discounts. However, to truly pull that off, its important to remove barriers between e-mail and retail teams. These teams should work towards the same goals: increasing conversions from new customers and turning them into loyal repeat customers. 3. Use Meaningful AI In the end, LVMH changed their tune about Amazon, and thats likely because of artificial intelligence. The e-commerce juggernaut represents how powerful AI can be for retailers. The worlds most valuable public company as of January, Amazon owes 35 percent of its revenue to its recommendation engine. It makes recommendations based not only on past behaviors, but the likelihood of future actions, and many other high-volume retailers are following suit. For luxury brands, predictive analytics can be used to identify likely high-lifetime value customers, specific individuals who will purchase in the next 30 days, and which channel an individual is most likely to engage. For most luxury retailers, a high-value buyer is very high. At the same time, many of these brands customers are one-and-done, so identifying those people early could pay off in spades, increasing the percentage of buyers who make a second purchase. McKinsey reports that retailers who have embraced AI generate profit margins 10 percentage points higher than their competitors. Luxury brands need to be in the market today for technologies that support smarter segmentation, anomaly detection, automating testing and reporting, channel optimization and more all via AI. Jason Grunberg is vice president of marketing at Sailthru, an AI-driven marketing platform. Sign up for WWD's Newsletter . For the latest news, follow us on Twitter , Facebook , and Instagram .
Take Five: Big in Japan - trade war, currency war, real war LONDON (Reuters) - 1/TRUMP AND G19 It's been a pretty tumultuous first-half and whether things calm down from here hinges on a June 28-29 summit of the G20 world powers, where Presidents Trump and Xi are expected to meet and hopefully resolve their differences on trade and tech. At stake is a decision on whether Washington slaps import tariffs on another $300 billion of Chinese goods, a scenario that Goldman Sachs says could sink equity markets as much as 4%. It could also tip the balance between economic recovery and recession, as several markets, from shipping to copper, sound alarm bells. Trump has bones to pick with other G20 leaders too. He will meet Turkish president Tayyip Erdogan who is risking U.S. sanctions on his country by placing an order for Russian-made S-400 missile defense system. India, Mexico, Canada and Germany have also all at different times incurred Trump's wrath over trade. Most recently he complained about the "devalued" euro which he said gave European exporters an unfair edge. With more and more central banks pivoting towards policy easing, the issue of exchange rates looms large. Fears are that another currency war will further strain ties between nations. Japan says it will voice concern if currency moves elsewhere "deviate from economic fundamentals". But having just signalled readiness to ramp up stimulus, it too could find itself on the receiving end of Trump's anger. Currency and trade wars aside, an actual war might be on the horizon after Trump allegedly ordered a missile strike on Iran, before rescinding it. Recent oil tanker attacks in the Gulf, blamed by Trump on Iran, also will be in focus. (Graphic: Global Trade - https://tmsnrt.rs/2XWb04g) 2/REALLY FED UP Having struggled for years to meet a 2% inflation target - excluding food and energy costs - the U.S. Federal Reserve might be forgiven for feeling a bit frustrated. In what went slightly unnoticed amid all the rate-cut focus at the last Fed meeting, policymakers again changed price growth forecasts -- downward. The median projection for year-end core personal consumption expenditures (core PCE - the Fed's main gauge), was taken down to 1.8% versus 2% in the March forecasts. Headline PCE expectations dropped to 1.5%, the weakest projection since 2016. May's core PCE reading, due June 28, is forecast to be steady at 1.6%. But watch for revisions to the April print. The previous reading was on target, but the March level was revised lower, indicating yet more ground lost in the battle to thwart disinflation. It's unsurprising therefore that eight of 17 Federal Open Market Committee members see a lower Fed funds rate by end-2019. 3/SHOW ME THE INFLATION Inflation week is coming up in the euro zone too and it will tell whether ECB chief Mario Draghi was right to fire his warning shot that more monetary easing would come unless prices started rising faster. So far, years of stimulus and record-low rates have failed to work their magic and inflation has undershot the ECB's near 2% target since 2013. The rate was 1.2% in May. The bank is worried but it is a dilemma shared by policymakers in many countries, not least the United States and Japan. German and Spanish inflation data is out Thursday. French numbers on Friday are released just ahead of the "flash" euro zone reading for June. But Draghi's words have made a mark. A closely-tracked key market inflation gauge -- the five-year, five-year break even forward -- has shot up to 1.3%, having languished at record lows at around 1.12% ahead of Tuesday's speech. Economists say "real economy" indicators, wages, for instance, paint a less pessimistic inflation outlook, raising questions about whether Draghi's reaction to market-based inflation measures is warranted. One more reason to watch next week's inflation data closely. (Graphic: Euro zone inflation expectations bounce on Draghi effect https://tmsnrt.rs/2RoAkgI) 4/FOLLOW ME, FOLLOW YOU Cutting interest rates, or at least flagging rate cut possibilities, is in vogue at the moment. And as often happens, the path trodden by the Fed, ECB and Bank of Japan is being followed also by emerging markets. Central banks in India and Russia have already embarked on policy easing, Indonesia and Philippines have signalled cuts ahead. The spotlight shifts to Mexico, Hungary, Czech Republic and Thailand which have meetings scheduled in coming days. Markets will be interested in what message is signalled by the Czechs. They have been raising interest rates but some policymakers have hinted there's no need for further tightening. Mexico is reeling from a Fitch ratings downgrade and an outlook cut from Moody's and is unlikely make any moves until after the Fed. Hungary meanwhile is expected to put off any rate-tightening plans in response to the ECB's dovish pivot. 5/CAN WE HAVE A SUMMER LULL, PLEASE? It's been an eventful year so far. Trade tensions have flared and calmed, then flared again. Mexico found itself replacing China as the lightning rod for trade tensions with Washington, only for the focus to shift back to Beijing. Many central banks have made dramatic dovish pivots, re-igniting market rallies. These were doused every now and then by glum growth data that sent investors piling back into safe-haven and defensive bets, only to venture back into riskier waters. Add to the mix the tensions between Washington and Iran. But Wall Street, at record highs, may be paying more attention to the Fed. Clearly, investors are divided on how this will play out: Safe havens gold and government bonds have rewarded investors with roughly 8% returns year-to-date. But higher-risk, growth plays did well too; emerging local currency debt for instance delivered 8% while the S&P500, Chinese stocks and Brent crude are up 20% on the year. Oil however has lost ground in the second quarter, hinting that worries over growth may be starting to gain the upper hand. So bond markets are flagging a slowdown; equities suggest the opposite. We may find out in the next half-year which of them got it right. (Graphic: Global markets quarter-to-date https://tmsnrt.rs/2ZH3hrp) (Reporting by Karin Strohecker, Sujata Rao, Tom Arnold, Dhara Ranasinghe in London; Dan Burns in New York; editing by John Stonestreet)
Are Insiders Buying Innovative Industrial Properties, Inc. (NYSE:IIPR) Stock? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares inInnovative Industrial Properties, Inc.(NYSE:IIPR). Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information. Insider transactions are not the most important thing when it comes to long-term investing. But 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.' Check out our latest analysis for Innovative Industrial Properties Over the last year, we can see that the biggest insider purchase was by Executive Chairman Alan Gold for US$2.7m worth of shares, at about US$40.00 per share. We do like to see buying, but this purchase was made at well below the current price of US$135. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices. Happily, we note that in the last year insiders paid US$2.8m for 70000 shares. But they sold 5181 for US$464k. Overall, Innovative Industrial Properties insiders were net buyers last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date! There are plenty of other companies that have insiders buying up shares. You probably donotwant to miss thisfreelist of growing companies that insiders are buying. The last quarter saw substantial insider selling of Innovative Industrial Properties shares. In total, insiders dumped US$464k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain. Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 5.2% of Innovative Industrial Properties shares, worth about US$69m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders. Insiders sold Innovative Industrial Properties shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. And insiders do own shares. So the recent selling doesn't worry us too much. Therefore, you should should definitely take a look at thisFREEreport showing analyst forecasts for Innovative Industrial Properties. But note:Innovative Industrial Properties may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Why Shares of Carnival Are Down on Friday Shares ofCarnival(NYSE: CCL)(NYSE: CUK)on Friday were sinking for the second straight day, trading down about 5% at midday after losing almost 10% on Thursday. The initial downward pressure was due to the cruise operator cutting its full-year outlook due to "macroeconomic headwinds." Friday's decline follows a negative reaction by analysts to that lowered outlook. On Thursday morning, Carnival actually produced quarterly results that topped analyst expectations, thanks to expanded capacity and improved onboard selling. But the markets weremore focused on Carnival's outlook for future quarters. The cruise ship company lowered expectations for full-year adjusted earnings per share, saying economic weakness, in particular in Europe and Asia, and the U.S. government's more restrictive policy toward traveling to Cuba would depress results. A Carnival ship arriving in port. Image source: Carnival. Analysts followed with downgrades and lowered price targets. William Blair's Sharon Zackfia downgraded Carnival to market perform from outperform, noting that Carnival's flattish yield expectations compare poorly to the mid-single-digit gains projected by rivalsRoyal CaribbeanandNorwegian Cruise Line. Barclays analyst Felicia Hendrix followed by cutting Carnival to equal weight from overweight and dropping her price target to $55 from $69, predicting Carnival's challenges in Europe would continue into next year. And SunTrust analyst C. Patrick Scholes, while keeping a buy rating on the shares, lowered his price target to $65 from $67. Carnival had previously warned thatsales momentum was fadingbut had hoped capacity growth would offset any weakness in pricing. That optimism now appears to be fading. It wasn't all bad news from analysts, however. Stifel analyst Steven Wieczynski said that while the results cause him to favor rivals like Norwegian in the near term, he still sees value in the shares over time. He cut his price target on Carnival to $57 from $65 but said Carnival's current multiple "is compelling enough" for him to keep a buy rating on the stock. Carnival is plowing through rough waters right now. But there is at least hope for smoother sailing in the future. More From The Motley Fool • 10 Best Stocks to Buy Today • The $16,728 Social Security Bonus You Cannot Afford to Miss • 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) • What Is an ETF? • 5 Recession-Proof Stocks • How to Beat the Market Lou Whitemanhas no position in any of the stocks mentioned. The Motley Fool recommends Carnival. The Motley Fool has adisclosure policy.
LaCroix's 82-year-old founder needs to get a clue: top analyst The insular management at hipster seltzer fave LaCroix, owned by National Beverage (FIZZ), best get a clue says one Wall Street critic. “LaCroix management has been unable to provide any significant innovation over the last few years, they have just been adding new flavors,” Guggenheim Securities analyst Laurent Grandet said on Yahoo Finance’sThe First Trade. “There is also just increased competition.” Grandet’s recent call that LaCroix sales are in “free-fall” has done its part to push National Beverage shares down 40% year-to-date. Talk about a fall from grace for a brand — and stock — that could do no wrong two years ago. But it’s hard to argue with the facts, as presented by Grandet and National Beverage’s latest quarterly results. Grandet, citing Nielsen data, points to LaCroix’s sales diving by mid-single digit percentages from March through April. In May, Grandet notes, LaCroix sales plunged 15%. For the quarter ended January 26 — the most recent reported — National Beverage sales fell 3% due to weakness in LaCroix. Earnings per share dropped to 53 cents from 88 cents a year ago. Keep in mind, the seltzer category by most estimates continues to grow in excess of 15% annually. The Guggenheim analyst believes that besides increased competition in the seltzer space from PepsiCo (PEP) and Coca-Cola (KO), National Beverage’s reputation has been hurt due to claims the ingredients it uses aren’t all natural. “When I last met with the company the stock was about $120 and I think the company was expecting the stock to go even higher. Now it’s about one-third of where it was nine months ago. So we have written that the most likely future of the company would be that a private equity firm could buy into it. But the management would have to make a mental shift to accept that the actual value of the company is much less than it was,” said Grandet, who rates National Beverage at a Sell. “We don’t think the current management is appropriate to drive this business up and don’t think they are going to deliver any significant innovations,” added Grandet. National Beverage’s current management team primarily consists of LaCroix’s 82-year-old founder and CEO Nick Caporella. The often prickly Caporella — no stranger to penning bizarre rants against those attacking LaCroix’s ingredients — has tight control of the company. Caporella’s son Joseph is the company’s president — both Caporellas sit on National Beverage’s five-person board of directors. National Beverage didn’t immediately respond to Yahoo Finance’s request for comment on Grandet’s claims. Brian Sozzi is an editor-at-large and co-host of ‘The First Trade’ at Yahoo Finance. Follow Brian Sozzi him on Twitter@BrianSozzi Read the latest financial and business news from Yahoo Finance • Trump's trade war with China may shock investors this summer • 2 black swans could come out of nowhere and kill stocks this summer • Why scrapping Trump's corporate tax cuts could crush businesses Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,SmartNews,LinkedIn,YouTube, andreddit.
Does Innovative Industrial Properties (NYSE:IIPR) Deserve A Spot On Your Watchlist? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. But as Warren Buffett has mused, 'If you've been playing poker for half an hour and you still don't know who the patsy is, you're the patsy.' When they buy such story stocks, investors are all too often the patsy. If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested inInnovative Industrial Properties(NYSE:IIPR). Even if the shares are fully valued today, most capitalists would recognize its profits as the demonstration of steady value generation. 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 Innovative Industrial Properties In business, though not in life, profits are a key measure of success; and share prices tend to reflect earnings per share (EPS). So like the hint of a smile on a face that I love, growing EPS generally makes me look twice. You can imagine, then, that it almost knocked my socks off when I realized that Innovative Industrial Properties grew its EPS from US$0.18 to US$1.00, in one short year. When you see earnings grow that quickly, it often means good things ahead for the company. One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. The good news is that Innovative Industrial Properties is growing revenues, and EBIT margins improved by 27 percentage points to 43%, over the last year. Ticking those two boxes is a good sign of growth, in my book. 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. You don't drive with your eyes on the rear-view mirror, so you might be more interested in thisfreereport showing analyst forecasts for Innovative Industrial Properties'sfutureprofits. Like standing at the lookout, surveying the horizon at sunrise, insider buying, for some investors, sparks joy. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. Of course, we can never be sure what insiders are thinking, we can only judge their actions. Although we did see some insider selling (worth -US$464.1k) this was overshadowed by a mountain of buying, totalling US$2.8m in just one year. I find this encouraging because it suggests they are optimistic about the Innovative Industrial Properties's future. It is also worth noting that it was Executive Chairman Alan Gold who made the biggest single purchase, worth US$2.7m, paying US$40.00 per share. The good news, alongside the insider buying, for Innovative Industrial Properties bulls is that insiders (collectively) have a meaningful investment in the stock. With a whopping US$69m worth of shares as a group, insiders have plenty riding on the company's success. This should keep them focused on creating long term value for shareholders. While insiders are apparently happy to hold and accumulate shares, that is just part of the pretty picture. That's because on our analysis the CEO, Paul Smithers, is paid less than the median for similar sized companies. I discovered that the median total compensation for the CEOs of companies like Innovative Industrial Properties with market caps between US$1.0b and US$3.2b is about US$4.1m. The CEO of Innovative Industrial Properties only received US$1.1m in total compensation for the year ending December 2018. That looks like modest pay to me, and may hint at a certain respect for the interests of shareholders. While the level of CEO compensation isn't a huge factor in my view of the company, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. It can also be a sign of a culture of integrity, in a broader sense. Innovative Industrial Properties's earnings per share growth has been so hot recently that thinking about it is making me blush. The company can also boast of insider buying, and reasonable remuneration for the CEO. The strong EPS growth suggests Innovative Industrial Properties may be at an inflection point. For those chasing fast growth, then, I'd suggest to stock merits monitoring. Of course, profit growth is one thing but it's even better if Innovative Industrial Properties is receiving high returns on equity, since that should imply it can keep growing without much need for capital.Click on this link to see how it is faring against the average in its industry. There are plenty of other companies that have insiders buying up shares. So if you like the sound of Innovative Industrial Properties, you'll probably love thisfreelist of growing companies that insiders are buying. 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.
EUR/USD Weekly Price Forecast – Euro shows strength during the week The Euro ralliedsignificantly during the week, reaching towards the 1.1350 level where I suspect there is going to be a significant amount of resistance. If we can break above there, it’s very likely then that we could go to the 1.1450 level above there. At this point, it’s very likely that we will get a short-term pullback but it appears that the Euro is trying to break out to the upside and change the overall trend. It makes a lot of sense considering that the 61.8% Fibonacci retracement level is in the same area as well. Simply put, this is a market that’s ready to bounce due to the Federal Reserve. If the Federal Reserve is in fact going to go ahead and cut interest rates a couple of times later this year, the question then becomes whether or not the ECB can do anything to counterbalance this. I highly doubt it, considering that they have negative interest rates going on already. This being the case, I am bullish of this market but I recognize we may need to build up a little bit more inertia before we take off to the upside. If we can break above the 1.15 level, at that point I suspect it’s very likely that the overall trend will be obvious to everyone else, and then we start to see this market go much higher. At that point I would anticipate a move towards the 1.20 level above, but obviously that’s a very long term target. Please let us know what you think in the comments below Thisarticlewas originally posted on FX Empire • The Risky Assets Rally May Run Out this Week • EUR/USD Mid-Session Technical Analysis for June 24, 2019 • Asian Markets Mixed on Concerns Over U.S.-China Relations • Gold, Bitcoin and the USD – The Main Games in Town • E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – June 24, 2019 Forecast • USD/CAD Daily Forecast – Bear Flag Indicating Downtrend Continuation
This CEO Thinks Everyone Should Be Able To Invest Like the 1% 1900329_GBR_Cecilio_Covers_Cecilio_GBR Craig Cecilio is the CEO and founder of DiversyFund , an online platform that combines crowdfunding and technology to allow the everyday investor to invest in alternative assets, such as commercial real estate. Cecilio’s mission is to empower the average investor by giving them the same wealth-building opportunities that were previously only available to the 1%. Under Cecilio’s leadership, DiversyFund has raised $4.3 million in funding, according to Crunchbase. Each week, GOBankingRates sets out to discover what makes the people behind top companies tick. We like to call this series “Best in Business” — and Cecilio really is one of the best. He told us how he got his entrepreneurial drive, how raising over $500 million in real estate funding gave him the idea for his company and ways that you can find (or build) your own dream job , too. Below, find our favorite moments from the story of how Cecilio launched his business. He Got the Entrepreneurial Itch Early On I was raised by my hardworking parents in Fairfield, Connecticut. I remember always having the entrepreneurship itch, even at an early age where I set my sights on making my own money. It was such a different mentality than what I saw in my father. He always wanted to start his own business, but the fear and uncertainty are what stopped him. He always asked me, “Son, do you think money grows on trees?” At the age of seven, I did not understand what he was saying so here’s what I did: I went to the backyard, buried a dollar bill and watered it for three days! No joke, I really did that, and I quickly learned that money does not grow on trees. I knew that if I wanted to build my own wealth, I had to take matters into my own hands. I may not have known back then exactly what I was going to build, but I knew I was going to create something and it was going to make a difference. He Set Out To Help the Everyday Investor Build More Wealth I worked for nearly 20 years in real estate as a syndicator and a sponsor. I used my networking skills to lead the development and raising of over $500 million worth of real estate assets. Story continues Through these deals, I realized the traditional ways of raising money for real estate projects were archaic and excluded the everyday investor. I watched the rich get richer and always wondered how I could include the everyday investor in these incredible investments. There is a considerable lack of awareness when it comes to building wealth and how easy it can be, even for the average person. This impacted and influenced — and still does — the way we reach and connect with our audience. We want to be sure we are educating our clients in a way that is easy to understand. Read: How I Manage My Time as an Entrepreneur So I Don’t Go Insane He Had To Learn Who He Could Trust The hardest part about the process [of starting DiversyFund] was deciphering who was genuinely supportive and propelling me forward, whether it was friends, family or business colleagues. There are always naysayers or people who weren’t fully supportive of what I was doing. Vendors were definitely the toughest and are a reoccurring roadblock because you never know what you’re going to get. They tend to be short-sighted and always have their own agenda. This created barriers and slowed things down at various points of building DiversyFund. He Doesn’t Think Work Should Be a Rat Race In the late ’90s, I secured my real estate license and ended up working in a boiler room as a 1099 [contract employee]. It was so archaic that we had to pay the company for leads, bring in our own computer and set up our personal real estate. Still, there was a waiting line to get an office desk, and you couldn’t have a desk unless you produced. I remember paying for business cards and internet service before I even had a desk. Everything about this, I didn’t want for my business. I wanted my team to feel supported and set them up for success. It’s not meant to be a rat race . This Is How He Measures Success In mid-November [2018], DiversyFund was qualified by the SEC to work with non-accredited investors for our new Growth REIT. This is a win for us because there are very few companies that are doing what we are doing. Success to me is all-encompassing. It’s a combination of your professional and personal development. In my case, it means having a company that is considered a game changer in the industry, being able to teach my daughters positive life lessons, supporting my wife and kids and successfully overcoming any unforeseen bumps in the road. If you can look back and be proud of the life and business you built, then that is your success. He Has This To Say To Aspiring Entrepreneurs Stay hungry and never give up. Don’t lose sight of why you’re doing what you’re doing or the goals you aim to achieve. The road won’t be smooth, but it’s up to you to persevere. Click through to read about the 20 inspiring entrepreneurs you need to follow on social media . More on Money How One Divorced, Single Mom Became a Successful Entrepreneur Beyond the Numbers: What It Really Means to Be an Entrepreneurial Mom 16 Ways for Women to Keep Their Money Safe, According to Experts This article originally appeared on GOBankingRates.com : This CEO Thinks Everyone Should Be Able To Invest Like the 1%
Soft U.S. factory activity darkens economic outlook By Jason Lange WASHINGTON (Reuters) - U.S. manufacturing activity barely grew in early June and the service sector cooled, signs that President Donald Trump's trade war with China could be weighing on the economy. Other economic data released on Friday showed a rise in home resales during May, suggesting the Federal Reserve was seeing dividends from its efforts to avert a recession by keeping interest rates low. While many indicators still point to a healthy economy, Fed policymakers are increasingly concerned that the 10-year economic expansion could be in danger. Data firm IHS Markit said its U.S. manufacturing purchasing managers index (PMI) declined to a reading of 50.1 in early June, the lowest level since September 2009. A reading above 50 indicates growth in the manufacturing sector, which accounts for about 12% of the U.S. economy. The data firm's PMI for the U.S. services sector dropped to 50.7, the lowest since February 2016. Both the manufacturing and the service sector readings were below expectations of analysts polled by Reuters. "It is likely that the news on trade policy has weighed on business sentiment and activity," Daniel Silver, an economist at JPMorgan, said in a note to clients. The U.S.-China trade war began last year and escalated last month after Trump, who has vowed to rebalance the global trading system in favor of the United States, raised tariffs on $200 billion in Chinese imports. China, one of the top U.S. trading partners, responded by increasing its tariffs on a revised $60 billion list of U.S. goods. Trump has threatened to slap tariffs on another $300 billion in Chinese imports if Beijing doesn't agree to a trade deal soon. He has said he plans to meet Chinese President Xi Jinping next week at a Group of 20 nations summit in Japan. All three major U.S. stock indexes were trading in a tight range on Friday as investors focused on a report that U.S. Vice President Mike Pence had said there were signs of progress with China on trade. The trade tensions are widely believed to have been a factor in the Fed's policy shift this week. Fresh projections released with the latest policy statement on Wednesday showed nearly half of Fed policymakers expect to cut interest rates this year. Fed Chairman Jerome Powell told reporters on Wednesday that business uncertainty had risen since May, and that the Fed would act promptly if needed to keep the economy growing. In early June, some two-thirds of all manufacturers attributed some or all of their raw material cost increases to tariffs during the month, said IHS Markit economist Chris Williamson, referring to the details of his firm's surveys of purchasing managers. The Fed already had made clear earlier this year that it was pausing the rate-hike campaign it began in 2015. That led to a drop in mortgage interest rates. Resales of U.S. homes rose 2.5% in May to a seasonally adjusted annual rate of 5.34 million units, the National Association of Realtors reported on Friday. (Reporting by Jason Lange; Editing by Paul Simao)
GBP/JPY Weekly Price Forecast – British pound back and forth against Japanese yen The British poundwent back and forth during the trading sessions that made up the week, bouncing from the ¥135 level. This is an area that of course should cause a bit of support, as it is a large, round, psychologically significant figure. If we were to break down below there then it opens the door to the 100% Fibonacci retracement level which is closer to the ¥131 level. That being said, we could break back above the ¥138 level on a daily close, opening up the door to the ¥140 level. I’m not real sure how that happens though, because quite frankly this is a risk sensitive pair. Looking at this chart, it’s obvious to see that there is a lot of negativity out there, and as a result you should probably expect to see exhaustion on short-term bounces. To the downside, the ¥131 level should be massive support based upon the huge hammer that touches that level. To the upside, I would be very skeptical until we can get some type of Brexit decision, and until then it’s very unlikely that this pair could hang onto gains. Looking at this chart, there’s no reason to think that risk appetite is suddenly going to go higher, so even if we were to get a resolution between the US/China situation, there are a multitude of other reasons to pay attention, as the Brexit by itself could cause issues. This is all about the fact that the British pound should underperform against the Japanese yen in relation to other currencies. Please let us know what you think in the comments below Thisarticlewas originally posted on FX Empire • U.S. Dollar Index Futures (DX) Technical Analysis – June 24, 2019 Forecast • EUR/USD Forex Technical Analysis – Taking Out 1.1448 Changes Weekly Trend to Up • USD/CAD Daily Forecast – Bear Flag Indicating Downtrend Continuation • EUR/USD Daily Forecast – Euro Eyeing 1.1400 Handle • A Most Delicate Start to an Uncertain Week • Air of Caution in Markets Ahead of “major” US Sanctions, Trump-Xi Meeting
Is HealthEquity (HQY) a Great Growth Stock? Growth stocks can be some of the most exciting picks in the market, as these high-flyers can captivate investors’ attention, and produce big gains as well. However, they can also lead on the downside when the growth story is over, so it is important to find companies which are still seeing strong growth prospects in their businesses. One such company that might be well-positioned for future earnings growth isHealthEquity, Inc.HQY. This firm, which is in the Medical Services industry, saw a significant EPS growth last year, and is looking great for this year too. In fact, the current growth estimate for this year calls for earnings-per-share growth of 11.9%. Furthermore, the long-term growth rate is currently an impressive 25%, suggesting pretty good prospects for the long haul. HealthEquity, Inc. price-consensus-chart \| HealthEquity, Inc. Quote And if this wasn’t enough, the stock has actually seen estimates rise over the past month for the current fiscal year by about 8.1%. Thanks to this rise in earnings estimates, HQY has a Zacks Rank #2 (Buy) which further underscores the potential for outperformance in this company. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. So, if you are looking for a fast growing stock that is still seeing plenty of opportunities on the horizon, make sure to consider HQY. Not only does it have double-digit earnings growth prospects, but its impressive Zacks Rank suggests that analysts believe better days are ahead for HQY as well. 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 reportHealthEquity, Inc. (HQY) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Laptops and tablets on sale this weekend: MacBook, Dell, and more You probably don't need an excuse to go shopping, but if you do here it is: Tons oflaptopsandtabletsare on sale this weekend. We are officially in summer now, so if you haven't spring cleaned your electronics, this is the time to take a good look at your gear and assess whether it's all making the cut or needs to be replaced. And if you decide your laptop or tablet needs an upgrade, don't just sit on that thought. Sales make pulling the trigger on big purchases easier because you don't have to pay as much as you were originally planning, which means you can pocket the leftover moneyoryou have more cash to spend elsewhere. Might we suggest a newgadget?Read more... More aboutApple,Tablets,Laptops,Dell, andMashable Shopping
Here’s What Hedge Funds Think About Parker-Hannifin Corporation (PH) "Since 2006, value stocks (IVE vs IVW) have underperformed 11 of the 13 calendar years and when they beat growth, it wasn't by much. Cumulatively, through this week, it has been a 122% differential (up 52% for value vs up 174% for growth). This appears to be the longest and most severe drought for value investors since data collection began. It will go our way eventually as there are too many people paying far too much for today's darlings, both public and private. Further, the ten-year yield of 2.5% (pre-tax) isn't attractive nor is real estate. We believe the value part of the global equity market is the only place to earn solid risk adjusted returns and we believe those returns will be higher than normal," said Vilas Fund in itsQ1 investor letter. We aren't sure whether value stocks outperform growth, but we follow hedge fund investor letters to understand where the markets and stocks might be going. This article will lay out and discuss the hedge fund and institutional investor sentiment towards Parker-Hannifin Corporation (NYSE:PH). Parker-Hannifin Corporation (NYSE:PH)shareholders have witnessed a decrease in hedge fund interest recently. Our calculations also showed that PH isn't among the30 most popular stocks among hedge funds. If you'd ask most stock holders, hedge funds are assumed to be worthless, old investment tools of years past. While there are more than 8000 funds with their doors open at the moment, We look at the aristocrats of this group, about 750 funds. These investment experts shepherd bulk of all hedge funds' total asset base, and by tracking their inimitable picks, Insider Monkey has come up with many investment strategies that have historically outpaced the broader indices. Insider Monkey's flagship hedge fund strategy outstripped the S&P 500 index by around 5 percentage points a year since its inception in May 2014 through the end of May. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 30.9% since February 2017 (through May 30th) even though the market was up nearly 24% during the same period. We just shared a list of 5 short targets in ourlatest quarterly updateand they are already down an average of 11.9% in less than a couple of weeks whereas our long picks outperformed the market by 2 percentage points in this volatile 2 week period. [caption id="attachment_30621" align="aligncenter" width="487"] Cliff Asness of AQR Capital Management[/caption] We're going to take a look at the key hedge fund action surrounding Parker-Hannifin Corporation (NYSE:PH). At the end of the first quarter, a total of 28 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -7% from the fourth quarter of 2018. By comparison, 37 hedge funds held shares or bullish call options in PH a year ago. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves. Of the funds tracked by Insider Monkey,Diamond Hill Capital, managed by Ric Dillon, holds the most valuable position in Parker-Hannifin Corporation (NYSE:PH). Diamond Hill Capital has a $277.4 million position in the stock, comprising 1.5% of its 13F portfolio. Sitting at the No. 2 spot is Richard S. Pzena ofPzena Investment Management, with a $56.4 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Remaining members of the smart money that are bullish include Ken Griffin'sCitadel Investment Group, Cliff Asness'sAQR Capital Managementand John Overdeck and David Siegel'sTwo Sigma Advisors. Since Parker-Hannifin Corporation (NYSE:PH) has witnessed declining sentiment from the aggregate hedge fund industry, logic holds that there were a few hedgies that elected to cut their positions entirely last quarter. At the top of the heap, Robert Bishop'sImpala Asset Managementdropped the largest position of all the hedgies followed by Insider Monkey, valued at close to $18.7 million in stock. Benjamin A. Smith's fund,Laurion Capital Management, also sold off its stock, about $8.7 million worth. These moves are important to note, as total hedge fund interest dropped by 2 funds last quarter. Let's check out hedge fund activity in other stocks similar to Parker-Hannifin Corporation (NYSE:PH). We will take a look at FirstEnergy Corp. (NYSE:FE), Centene Corp (NYSE:CNC), Verisk Analytics, Inc. (NASDAQ:VRSK), and M&T Bank Corporation (NYSE:MTB). All of these stocks' market caps are closest to PH's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position FE,41,3727862,2 CNC,58,2067914,2 VRSK,20,494091,-10 MTB,36,1236608,-6 Average,38.75,1881619,-3 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 38.75 hedge funds with bullish positions and the average amount invested in these stocks was $1882 million. That figure was $517 million in PH's case. Centene Corp (NYSE:CNC) is the most popular stock in this table. On the other hand Verisk Analytics, Inc. (NASDAQ:VRSK) is the least popular one with only 20 bullish hedge fund positions. Parker-Hannifin Corporation (NYSE:PH) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately PH wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); PH investors were disappointed as the stock returned -8% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Olin Corporation (OLN) A Good Stock To Buy? Although the masses and most of the financial media blame hedge funds for their exorbitant fee structure and disappointing performance, these investors have proved to have great stock picking abilities over the years (that's why their assets under management continue to swell). We believe hedge fund sentiment should serve as a crucial tool of an individual investor’s stock selection process, as it may offer great insights of how the brightest minds of the finance industry feel about specific stocks. After all, these people have access to smartest analysts and expensive data/information sources that individual investors can't match. So should one consider investing in Olin Corporation (NYSE:OLN)? The smart money sentiment can provide an answer to this question. IsOlin Corporation (NYSE:OLN)an outstanding stock to buy now? Money managers are becoming less confident. The number of bullish hedge fund positions shrunk by 5 lately. Our calculations also showed that OLN isn't among the30 most popular stocks among hedge funds.OLNwas in 28 hedge funds' portfolios at the end of March. There were 33 hedge funds in our database with OLN holdings at the end of the previous quarter. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. [caption id="attachment_735641" align="aligncenter" width="473"] Michael Lowenstein of Kensico Capital[/caption] Let's check out the fresh hedge fund action regarding Olin Corporation (NYSE:OLN). Heading into the second quarter of 2019, a total of 28 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -15% from the fourth quarter of 2018. By comparison, 25 hedge funds held shares or bullish call options in OLN a year ago. With hedgies' positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions). The largest stake in Olin Corporation (NYSE:OLN) was held byAdage Capital Management, which reported holding $200.1 million worth of stock at the end of March. It was followed by Kensico Capital with a $179.8 million position. Other investors bullish on the company included D E Shaw, Renaissance Technologies, and Millennium Management. Due to the fact that Olin Corporation (NYSE:OLN) has faced bearish sentiment from hedge fund managers, it's easy to see that there lies a certain "tier" of funds that elected to cut their entire stakes last quarter. Intriguingly, George Baxter'sSabrepoint Capitalsaid goodbye to the largest investment of all the hedgies monitored by Insider Monkey, totaling close to $4.4 million in call options. Jonathan Barrett and Paul Segal's fund,Luminus Management, also sold off its call options, about $4 million worth. These transactions are interesting, as total hedge fund interest dropped by 5 funds last quarter. Let's check out hedge fund activity in other stocks similar to Olin Corporation (NYSE:OLN). These stocks are Wintrust Financial Corporation (NASDAQ:WTFC), Stifel Financial Corp. (NYSE:SF), Tech Data Corp (NASDAQ:TECD), and Weingarten Realty Investors (NYSE:WRI). This group of stocks' market caps resemble OLN's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position WTFC,23,380893,-1 SF,16,171601,4 TECD,19,307621,-4 WRI,13,58932,1 Average,17.75,229762,0 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 17.75 hedge funds with bullish positions and the average amount invested in these stocks was $230 million. That figure was $623 million in OLN's case. Wintrust Financial Corporation (NASDAQ:WTFC) is the most popular stock in this table. On the other hand Weingarten Realty Investors (NYSE:WRI) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Olin Corporation (NYSE:OLN) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately OLN wasn't nearly as popular as these 20 stocks and hedge funds that were betting on OLN were disappointed as the stock returned -11.5% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Rockwell Automation Inc. (ROK) A Good Stock To Buy? Hedge funds and other investment firms run by legendary investors like Israel Englander, Jeffrey Talpins and Ray Dalio are entrusted to manage billions of dollars of accredited investors' money because they are without peer in the resources they use to identify the best investments for their chosen investment horizon. Moreover, they are more willing to invest a greater amount of their resources in small-cap stocks than big brokerage houses, and this is often where they generate their outperformance, which is why we pay particular attention to their best ideas in this space. Rockwell Automation Inc. (NYSE:ROK)was in 28 hedge funds' portfolios at the end of March. ROK has experienced a decrease in support from the world's most elite money managers of late. There were 35 hedge funds in our database with ROK holdings at the end of the previous quarter. Our calculations also showed that ROK isn't among the30 most popular stocks among hedge funds. So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio. Let's analyze the fresh hedge fund action encompassing Rockwell Automation Inc. (NYSE:ROK). Heading into the second quarter of 2019, a total of 28 of the hedge funds tracked by Insider Monkey were long this stock, a change of -20% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards ROK over the last 15 quarters. With hedge funds' sentiment swirling, there exists a few key hedge fund managers who were upping their stakes substantially (or already accumulated large positions). Among these funds,Two Sigma Advisorsheld the most valuable stake in Rockwell Automation Inc. (NYSE:ROK), which was worth $126.5 million at the end of the first quarter. On the second spot was Millennium Management which amassed $99.9 million worth of shares. Moreover, Nitorum Capital, Renaissance Technologies, and GAMCO Investors were also bullish on Rockwell Automation Inc. (NYSE:ROK), allocating a large percentage of their portfolios to this stock. Because Rockwell Automation Inc. (NYSE:ROK) has witnessed falling interest from the smart money, logic holds that there lies a certain "tier" of funds that decided to sell off their full holdings in the third quarter. At the top of the heap, Peter Rathjens, Bruce Clarke and John Campbell'sArrowstreet Capitalcut the biggest position of the "upper crust" of funds watched by Insider Monkey, valued at an estimated $22.9 million in stock, and Ken Griffin's Citadel Investment Group was right behind this move, as the fund dropped about $11.5 million worth. These transactions are interesting, as total hedge fund interest fell by 7 funds in the third quarter. Let's check out hedge fund activity in other stocks similar to Rockwell Automation Inc. (NYSE:ROK). These stocks are Boston Properties, Inc. (NYSE:BXP), Ulta Beauty, Inc. (NASDAQ:ULTA), Stanley Black & Decker, Inc. (NYSE:SWK), and ArcelorMittal (NYSE:MT). This group of stocks' market values are closest to ROK's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position BXP,27,572101,10 ULTA,43,994415,1 SWK,31,1033655,-4 MT,12,222442,-1 Average,28.25,705653,1.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 28.25 hedge funds with bullish positions and the average amount invested in these stocks was $706 million. That figure was $535 million in ROK's case. Ulta Beauty, Inc. (NASDAQ:ULTA) is the most popular stock in this table. On the other hand ArcelorMittal (NYSE:MT) is the least popular one with only 12 bullish hedge fund positions. Rockwell Automation Inc. (NYSE:ROK) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately ROK wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); ROK investors were disappointed as the stock returned -10.9% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
With EPS Growth And More, PulteGroup (NYSE:PHM) Is Interesting Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. But as Peter Lynch said in One Up On Wall Street , 'Long shots almost never pay off.' In contrast to all that, I prefer to spend time on companies like PulteGroup ( NYSE:PHM ), which has not only revenues, but also profits. Even if the shares are fully valued today, most capitalists would recognize its profits as the demonstration of steady value generation. Conversely, a loss-making company is yet to prove itself with profit, and eventually the sweet milk of external capital may run sour. See our latest analysis for PulteGroup How Quickly Is PulteGroup Increasing Earnings Per Share? As one of my mentors once told me, share price follows earnings per share (EPS). It's no surprise, then, that I like to invest in companies with EPS growth. Impressively, PulteGroup has grown EPS by 34% per year, compound, in the last three years. As a general rule, we'd say that if a company can keep up that sort of growth, shareholders will be smiling. Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. While we note PulteGroup's EBIT margins were flat over the last year, revenue grew by a solid 15% to US$10b. That's progress. You can take a look at the company's revenue and earnings growth trend, in the chart below. To see the actual numbers, click on the chart. NYSE:PHM Income Statement, June 21st 2019 The trick, as an investor, is to find companies that are going to perform well in the future, not just in the past. To that end, right now and today, you can check our visualization of consensus analyst forecasts for future PulteGroup EPS 100% free. Are PulteGroup Insiders Aligned With All Shareholders? We would not expect to see insiders owning a large percentage of a US$9.1b company like PulteGroup. But we are reassured by the fact they have invested in the company. With a whopping US$83m 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. Story continues Does PulteGroup Deserve A Spot On Your Watchlist? You can't deny that PulteGroup has grown its earnings per share at a very impressive rate. That's attractive. Further, the high level of insider buying impresses me, and suggests that I'm not the only one who appreciates the EPS growth. Fast growth and confident insiders should be enough to warrant further research. So the answer is that I do think this is a good stock to follow along with. If you think PulteGroup might suit your style as an investor, you could go straight to its annual report, or you could first check our discounted cash flow (DCF) valuation for the company . Of course, you can do well (sometimes) buying stocks that are not growing earnings and do not have insiders buying shares. But as a growth investor I always like to check out companies that do have those features. You can access a free list of them here . Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor 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.
Here’s What Hedge Funds Think About FireEye Inc (FEYE) As we already know from media reports and hedge fund investor letters, many hedge funds lost money in fourth quarter, blaming macroeconomic conditions and unpredictable events that hit several sectors, with technology among them. Nevertheless, most investors decided to stick to their bullish theses and recouped their losses by the end of the first quarter. We get to see hedge funds' thoughts towards the market and individual stocks by aggregating their quarterly portfolio movements and reading their investor letters. In this article, we will particularly take a look at what hedge funds think about FireEye Inc (NASDAQ:FEYE). IsFireEye Inc (NASDAQ:FEYE)an exceptional investment today? Money managers are selling. The number of bullish hedge fund bets dropped by 1 lately. Our calculations also showed that feye isn't among the30 most popular stocks among hedge funds.FEYEwas in 27 hedge funds' portfolios at the end of March. There were 28 hedge funds in our database with FEYE positions at the end of the previous quarter. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. Let's take a glance at the new hedge fund action regarding FireEye Inc (NASDAQ:FEYE). Heading into the second quarter of 2019, a total of 27 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -4% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards FEYE over the last 15 quarters. With hedge funds' sentiment swirling, there exists an "upper tier" of noteworthy hedge fund managers who were adding to their holdings considerably (or already accumulated large positions). The largest stake in FireEye Inc (NASDAQ:FEYE) was held byCitadel Investment Group, which reported holding $110.4 million worth of stock at the end of March. It was followed by Fisher Asset Management with a $52.3 million position. Other investors bullish on the company included Renaissance Technologies, Alyeska Investment Group, and Arrowstreet Capital. Because FireEye Inc (NASDAQ:FEYE) has experienced falling interest from the smart money, logic holds that there was a specific group of hedgies who were dropping their entire stakes last quarter. Interestingly, Cynthia Paul'sLynrock Lakesaid goodbye to the biggest investment of all the hedgies watched by Insider Monkey, worth close to $3.3 million in stock. Paul Tudor Jones's fund,Tudor Investment Corp, also said goodbye to its stock, about $2.5 million worth. These transactions are interesting, as total hedge fund interest fell by 1 funds last quarter. Let's also examine hedge fund activity in other stocks - not necessarily in the same industry as FireEye Inc (NASDAQ:FEYE) but similarly valued. These stocks are Copa Holdings, S.A. (NYSE:CPA), Merit Medical Systems, Inc. (NASDAQ:MMSI), TCF Financial Corporation (NYSE:TCF), and Semtech Corporation (NASDAQ:SMTC). All of these stocks' market caps match FEYE's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CPA,14,262939,-1 MMSI,17,244449,-1 TCF,22,245330,-1 SMTC,19,139258,0 Average,18,222994,-0.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $223 million. That figure was $366 million in FEYE's case. TCF Financial Corporation (NYSE:TCF) is the most popular stock in this table. On the other hand Copa Holdings, S.A. (NYSE:CPA) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks FireEye Inc (NASDAQ:FEYE) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately FEYE wasn't nearly as popular as these 20 stocks and hedge funds that were betting on FEYE were disappointed as the stock returned -10.1% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Hedge Funds Have Never Been This Bullish On Green Dot Corporation (GDOT) Russell 2000 ETF (IWM) lagged the larger S&P 500 ETF (SPY) by nearly 9 percentage points since the end of the third quarter of 2018 as investors worried over the possible ramifications of rising interest rates and escalation of the trade war with China. The hedge funds and institutional investors we track typically invest more in smaller-cap stocks than an average investor (i.e. only 298 S&P 500 constituents were among the 500 most popular stocks among hedge funds), and we have seen data that shows those funds paring back their overall exposure. Those funds cutting positions in small-caps is one reason why volatility has increased. In the following paragraphs, we take a closer look at what hedge funds and prominent investors think of Green Dot Corporation (NYSE:GDOT) and see how the stock is affected by the recent hedge fund activity. IsGreen Dot Corporation (NYSE:GDOT)a buy, sell, or hold? Prominent investors are getting more bullish. The number of long hedge fund positions rose by 8 in recent months. Our calculations also showed that gdot isn't among the30 most popular stocks among hedge funds. If you'd ask most traders, hedge funds are seen as underperforming, outdated financial tools of yesteryear. While there are more than 8000 funds trading at the moment, Our researchers look at the moguls of this club, about 750 funds. It is estimated that this group of investors watch over most of the hedge fund industry's total asset base, and by shadowing their matchless investments, Insider Monkey has unearthed a few investment strategies that have historically outperformed the market. Insider Monkey's flagship hedge fund strategy outperformed the S&P 500 index by around 5 percentage points a year since its inception in May 2014 through the end of May. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 30.9% since February 2017 (through May 30th) even though the market was up nearly 24% during the same period. We just shared a list of 5 short targets in ourlatest quarterly updateand they are already down an average of 11.9% in less than a couple of weeks whereas our long picks outperformed the market by 2 percentage points in this volatile 2 week period. We're going to take a glance at the new hedge fund action surrounding Green Dot Corporation (NYSE:GDOT). Heading into the second quarter of 2019, a total of 27 of the hedge funds tracked by Insider Monkey were long this stock, a change of 42% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards GDOT over the last 15 quarters. With hedgies' capital changing hands, there exists an "upper tier" of key hedge fund managers who were increasing their holdings substantially (or already accumulated large positions). Among these funds,Renaissance Technologiesheld the most valuable stake in Green Dot Corporation (NYSE:GDOT), which was worth $53.4 million at the end of the first quarter. On the second spot was D E Shaw which amassed $26.8 million worth of shares. Moreover, Citadel Investment Group, Millennium Management, and Two Sigma Advisors were also bullish on Green Dot Corporation (NYSE:GDOT), allocating a large percentage of their portfolios to this stock. As industrywide interest jumped, key hedge funds were breaking ground themselves.Citadel Investment Group, managed by Ken Griffin, created the biggest position in Green Dot Corporation (NYSE:GDOT). Citadel Investment Group had $22.6 million invested in the company at the end of the quarter. Steve Cohen'sPoint72 Asset Managementalso initiated a $10.6 million position during the quarter. The following funds were also among the new GDOT investors: Dmitry Balyasny'sBalyasny Asset Management, Martin Hughes'sToscafund Asset Management, and Anand Parekh'sAlyeska Investment Group. Let's go over hedge fund activity in other stocks similar to Green Dot Corporation (NYSE:GDOT). These stocks are Axon Enterprise, Inc. (NASDAQ:AAXN), Navistar International Corp (NYSE:NAV), RLI Corp. (NYSE:RLI), and AMC Networks Inc (NASDAQ:AMCX). All of these stocks' market caps are similar to GDOT's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position AAXN,19,247525,3 NAV,23,1335795,3 RLI,13,140748,1 AMCX,20,259491,1 Average,18.75,495890,2 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 18.75 hedge funds with bullish positions and the average amount invested in these stocks was $496 million. That figure was $234 million in GDOT's case. Navistar International Corp (NYSE:NAV) is the most popular stock in this table. On the other hand RLI Corp. (NYSE:RLI) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Green Dot Corporation (NYSE:GDOT) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately GDOT wasn't nearly as popular as these 20 stocks and hedge funds that were betting on GDOT were disappointed as the stock returned -22.4% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About MSCI Inc (MSCI) "The global economic environment is very favorable for investors. Economies are generally strong, but not too strong. Employment levels are among the strongest for many decades. Interest rates are paused at very low levels, and the risk of significant increases in the medium term seems low. Financing for transactions is freely available to good borrowers, but not in major excess. Covenants are lighter than they were five years ago, but the extreme excesses seen in the past do not seem prevalent yet today. Despite this apparent ‘goldilocks’ market environment, we continue to worry about a world where politics are polarized almost everywhere, interest rates are low globally, and equity valuations are at their peak," are the words ofBrookfield Asset Management. Brookfield was right about politics as stocks experienced their second worst May since the 1960s due to escalation of trade disputes. We pay attention to what hedge funds are doing in a particular stock before considering a potential investment because it works for us. So let’s take a glance at the smart money sentiment towards MSCI Inc (NYSE:MSCI) and see how it was affected. IsMSCI Inc (NYSE:MSCI)the right pick for your portfolio? Prominent investors are selling. The number of long hedge fund positions retreated by 2 in recent months. Our calculations also showed that MSCI isn't among the30 most popular stocks among hedge funds. To the average investor there are a lot of signals market participants have at their disposal to grade stocks. Two of the less known signals are hedge fund and insider trading sentiment. We have shown that, historically, those who follow the top picks of the best hedge fund managers can beat the broader indices by a significant margin (see the details here). We're going to take a peek at the recent hedge fund action regarding MSCI Inc (NYSE:MSCI). At Q1's end, a total of 36 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -5% from one quarter earlier. By comparison, 23 hedge funds held shares or bullish call options in MSCI a year ago. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. The largest stake in MSCI Inc (NYSE:MSCI) was held byRenaissance Technologies, which reported holding $188.2 million worth of stock at the end of March. It was followed by GLG Partners with a $78.3 million position. Other investors bullish on the company included Kylin Management, Arrowstreet Capital, and Harbor Spring Capital. Due to the fact that MSCI Inc (NYSE:MSCI) has faced a decline in interest from the entirety of the hedge funds we track, logic holds that there was a specific group of hedge funds who were dropping their entire stakes last quarter. Intriguingly, Steve Cohen'sPoint72 Asset Managementcut the biggest investment of all the hedgies monitored by Insider Monkey, totaling about $8.3 million in stock, and Ray Dalio's Bridgewater Associates was right behind this move, as the fund said goodbye to about $1.4 million worth. These transactions are important to note, as aggregate hedge fund interest was cut by 2 funds last quarter. Let's check out hedge fund activity in other stocks similar to MSCI Inc (NYSE:MSCI). These stocks are Continental Resources, Inc. (NYSE:CLR), First Republic Bank (NYSE:FRC), AmerisourceBergen Corporation (NYSE:ABC), and Deutsche Bank AG (NYSE:DB). This group of stocks' market caps are similar to MSCI's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CLR,31,559307,-5 FRC,18,683851,3 ABC,28,677582,-6 DB,13,1074334,-1 Average,22.5,748769,-2.25 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 22.5 hedge funds with bullish positions and the average amount invested in these stocks was $749 million. That figure was $631 million in MSCI's case. Continental Resources, Inc. (NYSE:CLR) is the most popular stock in this table. On the other hand Deutsche Bank AG (NYSE:DB) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks MSCI Inc (NYSE:MSCI) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Hedge funds were also right about betting on MSCI as the stock returned 12.3% during the same period and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here is What Hedge Funds Think About Nielsen Holdings plc (NLSN) Hedge funds run by legendary names like George Soros and David Tepper make billions of dollars a year for themselves and their super-rich accredited investors (you’ve got to have a minimum of $1 million liquid to invest in a hedge fund) by spending enormous resources on analyzing and uncovering data about small-cap stocks that the big brokerage houses don’t follow. Small caps are where they can generate significant outperformance. That's why we pay special attention to hedge fund activity in these stocks. Nielsen Holdings plc (NYSE:NLSN)was in 33 hedge funds' portfolios at the end of March. NLSN has experienced a decrease in hedge fund interest of late. There were 35 hedge funds in our database with NLSN positions at the end of the previous quarter. Our calculations also showed that nlsn isn't among the30 most popular stocks among hedge funds. So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio. Let's check out the latest hedge fund action surrounding Nielsen Holdings plc (NYSE:NLSN). At the end of the first quarter, a total of 33 of the hedge funds tracked by Insider Monkey were long this stock, a change of -6% from one quarter earlier. By comparison, 17 hedge funds held shares or bullish call options in NLSN a year ago. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Windacre Partnershipwas the largest shareholder of Nielsen Holdings plc (NYSE:NLSN), with a stake worth $409.9 million reported as of the end of March. Trailing Windacre Partnership was Elliott Management, which amassed a stake valued at $331.4 million. Ariel Investments, Deccan Value Advisors, and Omega Advisors were also very fond of the stock, giving the stock large weights in their portfolios. Due to the fact that Nielsen Holdings plc (NYSE:NLSN) has faced a decline in interest from the aggregate hedge fund industry, it's easy to see that there was a specific group of hedgies that elected to cut their positions entirely heading into Q3. Intriguingly, Glenn Greenberg'sBrave Warrior Capitaldumped the largest investment of all the hedgies watched by Insider Monkey, valued at about $60.2 million in stock. John Paulson's fund,Paulson & Co, also sold off its stock, about $31.8 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest was cut by 2 funds heading into Q3. Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as Nielsen Holdings plc (NYSE:NLSN) but similarly valued. We will take a look at LINE Corporation (NYSE:LN), Brown & Brown, Inc. (NYSE:BRO), WEX Inc (NYSE:WEX), and Gaming and Leisure Properties Inc (NASDAQ:GLPI). This group of stocks' market valuations resemble NLSN's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position LN,5,50743,1 BRO,17,691830,-3 WEX,30,546702,-2 GLPI,27,945964,0 Average,19.75,558810,-1 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 19.75 hedge funds with bullish positions and the average amount invested in these stocks was $559 million. That figure was $1273 million in NLSN's case. WEX Inc (NYSE:WEX) is the most popular stock in this table. On the other hand LINE Corporation (NYSE:LN) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Nielsen Holdings plc (NYSE:NLSN) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately NLSN wasn't nearly as popular as these 20 stocks and hedge funds that were betting on NLSN were disappointed as the stock returned -5.5% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Hedge Funds Have Never Been This Bullish On Euronet Worldwide, Inc. (EEFT) Hedge funds are known to underperform the bull markets but that's not because they are bad at investing. Truth be told, most hedge fund managers and other smaller players within this industry are very smart and skilled investors. Of course, they may also make wrong bets in some instances, but no one knows what the future holds and how market participants will react to the bountiful news that floods in each day. Hedge funds underperform because they are hedged. The Standard and Poor’s 500 Index returned approximately 12.1% in the first 5 months of this year through May 30th (including dividend payments). Conversely, hedge funds’ top 20 large-cap stock picks generated a return of 18.7% during the same 5-month period. An average long/short hedge fund returned only a fraction of this due to the hedges they implement and the large fees they charge. Our research covering the last 18 years indicates that investors can outperform the market by imitating hedge funds' stock picks rather than directly investing in hedge funds. That's why we believe it isn't a waste of time to check out hedge fund sentiment before you invest in a stock like Euronet Worldwide, Inc. (NASDAQ:EEFT). Euronet Worldwide, Inc. (NASDAQ:EEFT)has experienced an increase in hedge fund sentiment recently. Our calculations also showed that eeft isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. We're going to take a look at the new hedge fund action surrounding Euronet Worldwide, Inc. (NASDAQ:EEFT). At Q1's end, a total of 33 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 6% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards EEFT over the last 15 quarters. With hedgies' sentiment swirling, there exists a few noteworthy hedge fund managers who were boosting their holdings substantially (or already accumulated large positions). Among these funds,Columbus Circle Investorsheld the most valuable stake in Euronet Worldwide, Inc. (NASDAQ:EEFT), which was worth $40.4 million at the end of the first quarter. On the second spot was Renaissance Technologies which amassed $38.7 million worth of shares. Moreover, Arrowstreet Capital, Portolan Capital Management, and Crosslink Capital were also bullish on Euronet Worldwide, Inc. (NASDAQ:EEFT), allocating a large percentage of their portfolios to this stock. As aggregate interest increased, some big names were breaking ground themselves.Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, established the biggest position in Euronet Worldwide, Inc. (NASDAQ:EEFT). Arrowstreet Capital had $36.8 million invested in the company at the end of the quarter. Andrew Weiss'sWeiss Asset Managementalso made a $23.1 million investment in the stock during the quarter. The other funds with brand new EEFT positions are Andrew Weiss'sWeiss Asset Management, Nick Niell'sArrowgrass Capital Partners, and Vikas Lunia'sLunia Capital. Let's also examine hedge fund activity in other stocks similar to Euronet Worldwide, Inc. (NASDAQ:EEFT). These stocks are Sensata Technologies Holding plc (NYSE:ST), Macy's, Inc. (NYSE:M), Crown Holdings, Inc. (NYSE:CCK), and ICON Public Limited Company (NASDAQ:ICLR). This group of stocks' market values are similar to EEFT's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ST,21,1123073,-2 M,30,733780,0 CCK,38,1021922,3 ICLR,27,809057,4 Average,29,921958,1.25 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $922 million. That figure was $377 million in EEFT's case. Crown Holdings, Inc. (NYSE:CCK) is the most popular stock in this table. On the other hand Sensata Technologies Holding plc (NYSE:ST) is the least popular one with only 21 bullish hedge fund positions. Euronet Worldwide, Inc. (NASDAQ:EEFT) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Hedge funds were also right about betting on EEFT as the stock returned 9.7% during the same period and outperformed the market by an even larger margin. Hedge funds were rewarded for their relative bullishness. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Hedge Funds Have Never Been This Bullish On The Estee Lauder Companies Inc (EL) Investing in hedge funds can bring large profits, but it’s not for everybody, since hedge funds are available only for high-net-worth individuals. They generate significant returns for investors to justify their large fees and they allocate a lot of time and employ a complex analysis to determine the best stocks to invest in. A particularly interesting group of stocks that hedge funds like is the small-caps. The huge amount of capital does not allow hedge funds to invest a lot in small-caps, but our research showed that their most popular small-cap ideas are less efficiently priced and generate stronger returns than their large- and mega-cap picks and the broader market. That is why we pay special attention to the hedge fund activity in the small-cap space. The Estee Lauder Companies Inc (NYSE:EL)was in 39 hedge funds' portfolios at the end of March. EL investors should be aware of an increase in hedge fund sentiment in recent months. There were 33 hedge funds in our database with EL holdings at the end of the previous quarter. Our calculations also showed that EL isn't among the30 most popular stocks among hedge funds. In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to. Let's view the key hedge fund action regarding The Estee Lauder Companies Inc (NYSE:EL). At Q1's end, a total of 39 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 18% from the previous quarter. The graph below displays the number of hedge funds with bullish position in EL over the last 15 quarters. So, let's review which hedge funds were among the top holders of the stock and which hedge funds were making big moves. Among these funds,AQR Capital Managementheld the most valuable stake in The Estee Lauder Companies Inc (NYSE:EL), which was worth $374 million at the end of the first quarter. On the second spot was Renaissance Technologies which amassed $346.2 million worth of shares. Moreover, Millennium Management, Point72 Asset Management, and Two Sigma Advisors were also bullish on The Estee Lauder Companies Inc (NYSE:EL), allocating a large percentage of their portfolios to this stock. Now, key hedge funds have jumped into The Estee Lauder Companies Inc (NYSE:EL) headfirst.Holocene Advisors, managed by Brandon Haley, created the most outsized position in The Estee Lauder Companies Inc (NYSE:EL). Holocene Advisors had $19.4 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace'sMarshall Wace LLPalso initiated a $18.3 million position during the quarter. The other funds with brand new EL positions are Ernest Chow and Jonathan Howe'sSensato Capital Management, Nick Niell'sArrowgrass Capital Partners, and Paul Tudor Jones'sTudor Investment Corp. Let's go over hedge fund activity in other stocks similar to The Estee Lauder Companies Inc (NYSE:EL). We will take a look at Walgreens Boots Alliance Inc (NASDAQ:WBA), Colgate-Palmolive Company (NYSE:CL), CME Group Inc (NASDAQ:CME), and T-Mobile US, Inc. (NASDAQ:TMUS). This group of stocks' market values resemble EL's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position WBA,33,586665,-6 CL,42,1907640,-3 CME,42,1845552,-8 TMUS,62,2675739,-13 Average,44.75,1753899,-7.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 44.75 hedge funds with bullish positions and the average amount invested in these stocks was $1754 million. That figure was $1436 million in EL's case. T-Mobile US, Inc. (NASDAQ:TMUS) is the most popular stock in this table. On the other hand Walgreens Boots Alliance Inc (NASDAQ:WBA) is the least popular one with only 33 bullish hedge fund positions. The Estee Lauder Companies Inc (NYSE:EL) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. A small number of hedge funds were also right about betting on EL, though not to the same extent, as the stock returned 0.3% during the same time frame and outperformed the market as well. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Horizon Therapeutics Public Limited Company (HZNP) Does Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) represent a good buying opportunity at the moment? Let’s quickly check the hedge fund interest towards the company. Hedge fund firms constantly search out bright intellectuals and highly-experienced employees and throw away millions of dollars on satellite photos and other research activities, so it is no wonder why they tend to generate millions in profits each year. It is also true that some hedge fund players fail inconceivably on some occasions, but net net their stock picks have been generating superior risk-adjusted returns on average over the years. IsHorizon Therapeutics Public Limited Company (NASDAQ:HZNP)a buy, sell, or hold? The smart money is in a bullish mood. The number of bullish hedge fund bets advanced by 13 recently. Our calculations also showed that hznp isn't among the30 most popular stocks among hedge funds. To the average investor there are tons of indicators investors employ to evaluate publicly traded companies. A couple of the best indicators are hedge fund and insider trading moves. We have shown that, historically, those who follow the top picks of the elite fund managers can outpace the market by a significant margin (see the details here). We're going to view the recent hedge fund action regarding Horizon Therapeutics Public Limited Company (NASDAQ:HZNP). At Q1's end, a total of 41 of the hedge funds tracked by Insider Monkey were long this stock, a change of 46% from the previous quarter. By comparison, 24 hedge funds held shares or bullish call options in HZNP a year ago. So, let's review which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Scopia Capitalwas the largest shareholder of Horizon Therapeutics Public Limited Company (NASDAQ:HZNP), with a stake worth $215.6 million reported as of the end of March. Trailing Scopia Capital was Renaissance Technologies, which amassed a stake valued at $207.7 million. Paulson & Co, Deerfield Management, and D E Shaw were also very fond of the stock, giving the stock large weights in their portfolios. As one would reasonably expect, some big names have been driving this bullishness.Healthcor Management LP, managed by Arthur B Cohen and Joseph Healey, initiated the largest position in Horizon Therapeutics Public Limited Company (NASDAQ:HZNP). Healthcor Management LP had $52.6 million invested in the company at the end of the quarter. Brian Ashford-Russell and Tim Woolley'sPolar Capitalalso initiated a $51.4 million position during the quarter. The other funds with new positions in the stock are Principal Global Investors'sColumbus Circle Investors, Nick Niell'sArrowgrass Capital Partners, and Michael A. Price and Amos Meron'sEmpyrean Capital Partners. Let's check out hedge fund activity in other stocks similar to Horizon Therapeutics Public Limited Company (NASDAQ:HZNP). These stocks are Globus Medical Inc (NYSE:GMED), H&R Block, Inc. (NYSE:HRB), Curtiss-Wright Corp. (NYSE:CW), and Grupo Aeroportuario del Sureste, S. A. B. de C. V. (NYSE:ASR). This group of stocks' market caps resemble HZNP's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position GMED,24,265383,6 HRB,16,238498,-2 CW,21,429271,1 ASR,8,35587,3 Average,17.25,242185,2 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 17.25 hedge funds with bullish positions and the average amount invested in these stocks was $242 million. That figure was $1304 million in HZNP's case. Globus Medical Inc (NYSE:GMED) is the most popular stock in this table. On the other hand Grupo Aeroportuario del Sureste, S. A. B. de C. V. (NYSE:ASR) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately HZNP wasn't nearly as popular as these 20 stocks and hedge funds that were betting on HZNP were disappointed as the stock returned -10.3% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Vulcan Materials Company (VMC) A Good Stock To Buy? Billionaire hedge fund managers such as David Abrams, Steve Cohen and Stan Druckenmiller can generate millions or even billions of dollars every year by pinning down high-potential small-cap stocks and pouring cash into these candidates. Small-cap stocks are overlooked by most investors, brokerage houses, and financial services hubs, while the unlimited research abilities of the big players within the hedge fund industry can easily identify the undervalued and high-potential stocks that reside the ignored corners of equity markets. There are numerous small-cap stocks that have turned out to be great winners, which is one of the main reasons the Insider Monkey team pays close attention to the hedge fund activity in relation to these stocks. Vulcan Materials Company (NYSE:VMC)was in 48 hedge funds' portfolios at the end of the first quarter of 2019. VMC has experienced an increase in activity from the world's largest hedge funds of late. There were 41 hedge funds in our database with VMC positions at the end of the previous quarter. Our calculations also showed that vmc isn't among the30 most popular stocks among hedge funds. In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to. We're going to analyze the latest hedge fund action regarding Vulcan Materials Company (NYSE:VMC). Heading into the second quarter of 2019, a total of 48 of the hedge funds tracked by Insider Monkey were long this stock, a change of 17% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards VMC over the last 15 quarters. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Egerton Capital Limitedwas the largest shareholder of Vulcan Materials Company (NYSE:VMC), with a stake worth $501.6 million reported as of the end of March. Trailing Egerton Capital Limited was Eminence Capital, which amassed a stake valued at $193.1 million. Adage Capital Management, Alkeon Capital Management, and Citadel Investment Group were also very fond of the stock, giving the stock large weights in their portfolios. Now, key money managers were leading the bulls' herd.Scopus Asset Management, managed by Alexander Mitchell, established the most outsized call position in Vulcan Materials Company (NYSE:VMC). Scopus Asset Management had $59.2 million invested in the company at the end of the quarter. Brandon Haley'sHolocene Advisorsalso initiated a $50.9 million position during the quarter. The other funds with brand new VMC positions are Robert Boucai'sNewbrook Capital Advisors, Alexander Mitchell'sScopus Asset Management, and James Parsons'sJunto Capital Management. Let's check out hedge fund activity in other stocks similar to Vulcan Materials Company (NYSE:VMC). These stocks are Avangrid, Inc. (NYSE:AGR), D.R. Horton, Inc. (NYSE:DHI), CenterPoint Energy, Inc. (NYSE:CNP), and ANSYS, Inc. (NASDAQ:ANSS). This group of stocks' market values resemble VMC's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position AGR,17,390906,4 DHI,46,2449791,-1 CNP,34,939440,1 ANSS,28,837871,-1 Average,31.25,1154502,0.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 31.25 hedge funds with bullish positions and the average amount invested in these stocks was $1155 million. That figure was $1768 million in VMC's case. D.R. Horton, Inc. (NYSE:DHI) is the most popular stock in this table. On the other hand Avangrid, Inc. (NYSE:AGR) is the least popular one with only 17 bullish hedge fund positions. Compared to these stocks Vulcan Materials Company (NYSE:VMC) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Hedge funds were also right about betting on VMC as the stock returned 7.6% during the same period and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Europeans urge US, Iran to step back from confrontation BRUSSELS (AP) — European leaders are being guarded in their responses to the deepening tensions between the United States and Iran, urging both sides to step back from confrontation. Influential European countries have for months been steering a delicate path between Washington and Tehran, ever since President Donald Trump's administration last year pulled out of a nuclear agreement with Iran that the European Union is keen to keep intact. That pact ensures Tehran's nuclear program is restricted to civilian uses in exchange for economic assistance and was signed by Iran, the U.S., Russia, China, France, Germany and Britain. It is at risk of collapse due to U.S. sanctions against Iran, leaving the Europeans diplomatically hamstrung by the antagonism between Washington and Tehran. European Council President Donald Tusk said Friday the bloc is urging restraint on both sides in the latest flare-up, after Iran shot down a U.S. surveillance drone. He rejected suggestions that the EU should speak more loudly in the dispute. "The biggest problems in our history (were) always provoked by too active politics, not too passive," he said at the end of an EU summit in Brussels. In an indication of the Europeans' uneasiness, the EU summit did not publish a statement on the topic. German Chancellor Angel Merkel said European countries are still hoping that there can be a political solution. "Naturally, we are worried about the situation and we're counting on diplomatic negotiations for a political solution to a very tense situation," Merkel said, without elaborating. French President Emmanuel Macron was equally vague. "I'm calling on all parties to be reasonable and keep talking," he said. Sanam Vakil, an analyst at London's Chatham House think tank, noted that Germany, Britain and France have recently been distracted by their domestic problems. The EU's muted response also reflects the bloc's deep frustration at the Trump administration and a trans-Atlantic divide on foreign policy, she said, with European leaders reluctant to seize the initiative amid divisiveness in their 28-nation bloc. "This should be an important moment for (the EU) to weigh in and try to shepherd a process," Vakil told The Associated Press. The EU's top diplomat is in regular contact with Washington and Tehran, Tusk said, and the EU is to chair a meeting of the nations involved in the embattled nuclear deal in Vienna next week. Moscow also added its voice to the calls for a careful approach. "The situation in the Persian Gulf is quite tense, and this is a concern for us," Kremlin spokesman Dmitry Peskov told reporters on Friday. "We are following the situation carefully and calling on all countries involved for restraint." View comments
I Ran A Stock Scan For Earnings Growth And Innovative Industrial Properties (NYSE:IIPR) Passed With Ease Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. 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 the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies likeInnovative Industrial Properties(NYSE:IIPR). Now, I'm not saying that the stock is necessarily undervalued today; but I can't shake an appreciation for the profitability of the business itself. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed. See our latest analysis for Innovative Industrial Properties In a capitalist society capital chases profits, and that means share prices tend rise with earnings per share (EPS). So like a ray of sunshine through a gap in the clouds, improving EPS is considered a good sign. It is therefore awe-striking that Innovative Industrial Properties's EPS went from US$0.18 to US$1.00 in just one year. When you see earnings grow that quickly, it often means good things ahead for the company. 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. The good news is that Innovative Industrial Properties is growing revenues, and EBIT margins improved by 27 percentage points to 43%, over the last year. Ticking those two boxes is a good sign of growth, in my book. The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image. Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want tocheck this interactive graph of professional analyst EPS forecasts for Innovative Industrial Properties. Like that fresh smell in the air when the rains are coming, insider buying fills me with optimistic anticipation. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. However, small purchases are not always indicative of conviction, and insiders don't always get it right. We do note that, in the last year, insiders sold -US$464.1k worth of shares. But that's far less than the US$2.8m insiders spend purchasing stock. This makes me even more interested in Innovative Industrial Properties because it suggests that those who understand the company best, are optimistic. It is also worth noting that it was Executive Chairman Alan Gold who made the biggest single purchase, worth US$2.7m, paying US$40.00 per share. Along with the insider buying, another encouraging sign for Innovative Industrial Properties is that insiders, as a group, have a considerable shareholding. Given insiders own a small fortune of shares, currently valued at US$69m, they have plenty of motivation to push the business to succeed. This should keep them focused on creating long term value for shareholders. While insiders are apparently happy to hold and accumulate shares, that is just part of the pretty picture. The cherry on top is that the CEO, Paul Smithers is paid comparatively modestly to CEOs at similar sized companies. I discovered that the median total compensation for the CEOs of companies like Innovative Industrial Properties with market caps between US$1.0b and US$3.2b is about US$4.1m. The Innovative Industrial Properties CEO received total compensation of just US$1.1m in the year to December 2018. That looks like modest pay to me, and may hint at a certain respect for the interests of shareholders. CEO compensation is hardly the most important aspect of a company to consider, but when its reasonable that does give me a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of good governance, more generally. Innovative Industrial Properties's earnings per share have taken off like a rocket aimed right at the moon. The company can also boast of insider buying, and reasonable remuneration for the CEO. It could be that Innovative Industrial Properties is at an inflection point, given the EPS growth. If so, then it the potential for further gains probably merit a spot on your watchlist. Of course, profit growth is one thing but it's even better if Innovative Industrial Properties is receiving high returns on equity, since that should imply it can keep growing without much need for capital.Click on this link to see how it is faring against the average in its industry. The good news is that Innovative Industrial Properties is not the only growth stock with insider buying. Here'sa a list of them... with insider buying in the last three months! Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Former top U.S. diplomat deplores policy toward Iran 'untethered to any coherent strategy' President Trump seriously miscalculated when he scrapped the U.S.-Iran nuclear deal, embarking on a policy “untethered to any coherent strategy,” according to a scathing assessment by William Burns, the former U.S. diplomat who negotiated the nuclear agreement. Burns said the move was certain to embolden hard-liners in Tehran and contribute to military tensions in a way that will backfire against the U.S. — which was already happening this week, as news broke that Iran had shot down an American military drone. “We’re worse off today as a result of bailing out” of the nuclear deal, Burns, former deputy secretary of state under President Obama and now president of the Carnegie Endowment for International Peace, said in an interview for the Yahoo News podcast “Skullduggery.” “And if our goal is regime change, we’re worse off today too because in a sense we’re playing the game of hard-liners in the regime in Tehran, whose grip on power is probably even stronger.” The remarks came shortly after the announcement that the Iranian military had shot down a U.S. drone, but before Trump canceled a retaliatory strike at the last minute, with U.S. forces “cocked & loaded.” But Burns made clear he sees the escalation in military tensions between the two countries as an inevitable consequence of the decision to pull out of the agreement, which he had hammered out in secret, back-channel negotiations with the Tehran regime. “The Iranian attack on the drone, just like the attacks on tankers a few days ago are reckless and dangerous steps, but they come against a backdrop” of Trump’s move to scrap the nuclear deal, Burns said. “What’s deeply unfortunate is here you have a president who’s ripped up American compliance with that agreement, unburdened by any sense of the facts in the agreement or anything else.” The critique by Burns, a 33-year veteran of the foreign service and former ambassador to Jordan and Russia, is not surprising. As he relates in his new book, “The Back Channel: A Memoir of American Diplomacy and the Case for Its Renewal,” he spent nearly two years on a top-secret mission to head off Tehran’s nuclear-weapons project, flying in unmarked airplanes and ducking into hotel service elevators to negotiate with Iranian officials who were deeply suspicious of U.S. intentions. Story continues He acknowledges that the deal he worked out was not perfect. “We could have done a better job, both before and after the comprehensive nuclear agreement was reached, of confronting the wider challenge of Iran in the Middle East.” But Burns said the agreement did defuse the “imminent risk” of Iran developing a nuclear bomb — something achieved only because the U.S. worked with European allies to impose international sanctions, resulting in a precipitous drop in the nation’s oil exports and the value of its currency. Trump abandoned the deal unilaterally, depriving the United States of the international leverage it had mustered and making the Iranians even less willing to agree to U.S. demands, he says. “I mean there, it’s not a very sentimental leadership,” he said, referring to the supreme leader, Ayatollah Ali Khamenei, and “the guys around him.” “You know, they’re deeply suspicious of engaging with the United States, and they’re deeply disinclined to negotiate under what they see to be pressure.” William Burns (Photo illustration: Yahoo News; photo: AP) Download or subscribe on iTunes: “Skullduggery” from Yahoo News The nuclear deal “didn’t solve the problem of Iran,” he said. “Iran still posed lots of threats to the United States.” But from the outset, Obama’s intention was to build on the agreement and modify Iranian behavior over time, a goal increasingly out of reach. Instead, Burns observed, the Trump administration now seems to be at war with itself. “That’s the incoherent part,” he said. “You know, what [national security adviser] John Bolton has stood for for many years, what I think Secretary [of State Mike] Pompeo clearly supports, is a set of aims that’s aimed more at either the capitulation of the Iranian regime or its implosion. I don't think either of those are realistic goals for policy. So what happens when you’re standing on that incoherent strategic terrain is your allies start to lose faith. … And your adversaries, in this case Iran, are prone to miscalculation because they’re going to assume the worst about our policy, that it’s aimed at regime change.” For all his criticism of Trump, Burns in his book and in the interview is painfully honest about mistakes he and others in the Obama administration made, especially in the failure to more forcefully confront the Iranian- and Russian-backed regime of President Bashar Assad in Syria. “A willingness to take more risks against the Assad regime after the Syrian civil war began in 2011 would have sent a strong signal to Iran, and cushioned the disquieting effect of the nuclear deal for the Saudis and other traditional friends,” Burns wrote in his book. Elsewhere, in the book, he wrote: “It is hard not to see Syria’s agony as an American policy failure.” In particular, Burns cited Obama’s failure in 2013 to enforce his “red line” on Syrian use of chemical weapons with a military strike. Obama had once famously said he was “very proud” of his decision. Burns clearly views it otherwise. “You look at the famous red-line incident with Syria when Assad had killed 1,400 Syrian civilians with the use of chemical weapons,” he said. “I thought at the time that was a moment when had we responded with a punitive military strike, it wouldn’t have changed the equation on the ground in Syria ... but I think it would have sent a signal, not just to the Iranians, but to the Israelis and to the Gulf Arabs that there were circumstances under which we’d use force.” _____ Read more from Yahoo News: Trump wants his next press secretary to be a cable news 'street fighter' For politicians, the D.C. elite and even a presidential candidate, a Navy program has been an attractive fast-track path to military service Trump admits his Cabinet had 'some clinkers' Confronted with multiple errors in his new Trump book, a testy Michael Wolff says, 'You have to trust me' Why are people willing to risk death for a selfie? PHOTOS: Storms bring flooding and power outages across the U.S.
Does Your Homeowners Insurance Protect You From Firework Damage? Nothing says the Fourth of July like a red, white and blue themed party followed by a stunning fireworks display. Unfortunately, it’s not all fun and games. In the hands of untrained consumers (especially those under the influence of alcohol) fireworks can be dangerous. They can and do cause thousands of injuries and millions of dollars in property damage every year. According to the National Fire Protection Agency, July 4 is the most common day for home fires, 50% of which are caused by fireworks. Here’s how to protect yourself (and your home) from damage. Homeowners insuranceis a type of insurance policy that covers you financially when your home or the property inside (or around) it is damaged. However, homeowners insurance isn’t a blank check that will pay for any and all harm inflicted on your property. Certain types of damage may be excluded, and that means you’ll have to pay for those types of repairs out of your own pocket. “Whenever a fire occurs, you can be sure your insurance company will investigate the cause and origin to determine whether or not the policy covers the damage caused by the incident,” said Anthony Fusco, president of the Southeast region of InterClaim Worldwide, a public adjusting firm that helps insurance policyholders navigate the often difficult insurance claim process. If the fireworks were used legally, he added, then most homeowners insurance will cover the damage. This is true even if your policy doesn’t call out firework damage by name. “Many policies are known as ‘all risk’ policies, meaning all causes of loss are covered unless specifically excluded by the policy language,” said Fusco. However, the damage will be investigated to make sure it wasn’t the result of illegal fireworks use or by fireworks used to intentionally cause damage to the home. “In areas where the type of fireworks that caused the damage is illegal,” he continued, “your insurer may make a different determination. It’s important to remember insurance never pays for loss or damage resulting from intentional or illegal acts.” If you can’t quite figure out your policy, it’s best to call your provider and ask for advice before hosting an extravagant fireworks bash. You’ll never know what will be (or won’t be) covered until an investigation into the type of damage and who’s at fault has been completed, but if the damage is found to be an accident, here’s what Fusco says is typically covered. If you injure others during a firework’s display, your policy will likely cover those medical bills. Unfortunately, Fusco cautions that if you cause an injury to yourself, your homeowners insurance policy may not cover you for the associated medical bills. It depends on your policy. However, if you have health insurance, that coverage may also kick in to help you cover the cost of treatment. If your home or your neighbor’s home is damaged by fireworks, your homeowners policy will kick in as long as the damage was sudden and accidental. “Always remember, insurance is not meant to cover loss due to an illegal act,” Fusco said. “So, if you’re operating an illegal fireworks factory out of your home and it causes a fire, don’t bother calling your insurer.” Because your homeowners policy will not protect you from damage caused by illegal fireworks, it’s crucial to check your state laws ahead of time. As of 2018, the APA reports that fireworks are completely banned in just one state — Massachusetts. In three states (Illinois, Ohio and Vermont) the use of fireworks is restricted to only wood or wire stick sparklers or other novelty items. You can visitAmericanPyro.comto view more detailed information about the fireworks laws in your specific state. Celebrating Independence Day with a beautiful, booming display of fireworks is an American tradition. But that patriotic tradition can turn into a dangerous disaster if you don’t follow the proper safety procedures. Lorraine Carli, spokesperson for the National Fire Protection Association (NFPA), urges against the purchase or use of consumer fireworks in any way, shape or form. “They’re just so inherently dangerous,” Carli explained. “There really is no safe way to use consumer fireworks.” According to the NFPA, fireworks are estimated to cause around 18,500 fires each year in the United States — and those are just the ones that are reported. Besides making a commitment not to use consumer fireworks yourself, it’s also important that you don’t attend shows put on by other amateurs. Instead, Carli recommends opting for displays put on by professionals who understand how to mitigate the risks. And the risks are plenty — according to the Consumer Product Safety Commission, in 2017 nearly 13,000 people were treated at emergency rooms in the United States for fireworks-related injuries. Of those injured, 36% were children under the age of 15 years old. “Even sparklers burn at 1,200 degrees Fahrenheit,” Carli said. “That’s hot enough to cause third-degree burns. As a matter of comparison, you bake a cake at 350 degrees Fahrenheit. So, you take this sparkler that’s around four times hotter than an oven baking a cake and hand it over to a child. It’s simply not safe.” Think that’s an overreaction? Think again. Of the nearly 13,000 injuries reported in the report, an estimated 1,200 were caused by sparklers. The same year there was even one reported death related to the use of sparklers. The National Safety Council, a nonprofit 501(c)(3) organization dedicated to eliminating preventable deaths, also agrees that fireworks displays are best left to experienced professionals. However, if they’re legal in your state and you plan to use them anyway, here are 11 firework safety tips the council recommends that you follow this Independence Day — and any other time of the year. • Never operate fireworks under the influence of drugs or alcohol. • Do not allow young children to handle fireworks. • Provide careful adult supervision for any older children using fireworks. • You should never light any firework product indoors. • Always wear protective eyewear when handling fireworks. • Only light one device at a time. • Only light fireworks at a safe distance from others and away from any structures or flammable materials. • You should never light fireworks in any type of container. • If a firework malfunctions, don’t try to relight it. • When you’re lighting fireworks, keep a bucket of water handy in case of fire and to immediately douse any fireworks that don’t go off properly. • Soak unused fireworks for several hours in water before discarding. Fireworks are a magnificent American tradition that millions of people enjoy every Independence Day. But they can pose a lot of danger in untrained hands. Your best bet is to avoid consumer fireworks altogether and leave the handling of them to the experts. Play it safe and pass on the tradition of enjoying professional fireworks displays that are safer for both you and your community.
Should i3 Verticals (NASDAQ:IIIV) Be Disappointed With Their 56% Profit? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! If you want to compound wealth in the stock market, you can do so by buying an index fund. But you can significantly boost your returns by picking above-average stocks. For example, thei3 Verticals, Inc.(NASDAQ:IIIV) share price is up 56% in the last year, clearly besting than the market return of around 4.1% (not including dividends). So that should have shareholders smiling. i3 Verticals hasn't been listed for long, so it's still not clear if it is a long term winner. See our latest analysis for i3 Verticals To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. i3 Verticals went from making a loss to reporting a profit, in the last year. The company was close to break-even last year, so earnings per share of US$0.79 isn't particularly stand out. But judging by the share price, the market is happy with the maiden profit. Inflection points like this can be a great time to take a closer look at a company. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. Thisfreeinteractive report on i3 Verticals'searnings, revenue and cash flowis a great place to start, if you want to investigate the stock further. i3 Verticals shareholders should be happy with thetotalgain of 56% over the last twelve months. A substantial portion of that gain has come in the last three months, with the stock up 20% in that time. This suggests the company is continuing to win over new investors. It is all well and good that insiders have been buying shares, but we suggest youcheck here to see what price insiders were buying at. i3 Verticals is not the only stock insiders are buying. So take a peek at thisfreelist of growing companies with insider buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on 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.
Prince William turns 37: Meghan Markle and Prince Harry under fire for 'cold' birthday message Did Meghan Markle and Prince Harry snub Prince William with a "cold" birthday post? That's what some fans of the royal family are saying. The Duke of Cambridge turned 37 on Friday, June 21, and the official Kensington Royal Instagram page shared a sweet photo of William smiling into the camera to thank followers for the birthday wishes. SEE ALSO:What Prince William and Kate Middleton 'realized' about their marriage after 'hurtful' cheating rumors "Thank you everyone for your lovely wishes on The Duke of Cambridge's birthday!" the caption read. In the comments of the post, Meghan and Harry's official Instagram account, Sussex Royal, commented, "Happy Birthday to the Duke of Cambridge!" seemingly in lieu of an actual post to honor his birthday. Naturally, the couple got heat from commenters who thought that a simple comment wasn't enough of a celebration. "He's your brother," one person wrote. "REALLY?" "Wow, pretty cold," another follower commented. "And petty. Grow up." "Really Harry and Meghan, you could of [sic] done a little better," another person proclaimed. "Are you trying to get everyone not to like you? We want the 4 of you back don't lose that bond you had with your brother." Other's called the comment "a shame" and wondered why there were "no birthday wishes for the future king at all" on their actual Instagram page. SEE ALSO:Meghan Markle and Princess Eugenie are obsessed with these perfect pumps While the Duke and Duchess of Sussex forewent a post for William's birthday, other member of the royal familydidindeed share messages on their accounts: Clarence House, the account for Prince Charles and Camilla, Duchess of Cornwall, shared a sweet message for Charles' oldest son with a photo from 1984, the official Royal Family account shared photos of Wills with Queen Elizabeth and Prince Andrew, Duke of York, also shared a vintage snap from 1986. Meghan and Harry's unceremonious birthday wishes for Prince William, especially in comparison to the rest of the royal family's, come just two days afterthe couple officially exited the Royal Foundation, the charity that they ran with William and his wife, Kate Middleton. It was the second official split between the couples in the span of just a few months: This spring,Harry and Meghan moved out of Kensington Palace, where Kate and William live with their kids, and into Frogmore Cottage at Windsor Castle. They also formally separated their royal offices. SEE ALSO:Prince Philip warned Prince Harry about marrying Meghan Markle The official moves come after months of speculation that there's a rift between Harry and William, as well as Kate and Meghan. While the alleged tension seems to be mostly behind them, there may still be some lingering bad blood. While royal experts say that "it's absolutely the case that the brothers did fall out" at some point amid tensions around Harry's new relationship with Meghan,sources now saythat the duchesses and the brothers are bonding over parenthood and that Archie Harrison's arrival "has probably really helped to improve the relationship."
So, You Want to Start a Foundation? Great! For some business owners, the American dream is more than the freedom to achieve prosperity. To these entrepreneurs, it is the ability to have a real impact on individuals in meaningful ways. Often, they accomplish these goals by starting some kind of 501(c)(3) nonprofit, tax-exempt charitable organization. SEE ALSO: Choosing Between a Private Foundation vs. Donor-Advised Fund That's what "Karl" wants to do: "I am a Swedish-American from the small 'Swedish' town of Kingsburg, Calif. I am now living in a large Midwestern city, where I met and married my lovely wife, who is from the south of France. "We want to create an educational foundation offering travel/study scholarships for high school students with Swedish ancestry who are taking French classes. They would travel to Sweden over the summer, spending a month, then, on to France, studying at a language immersion school and living with families. "French high school students would be invited to the U.S. over the Christmas holidays where they would stay in American homes, and, of course, speak only English. "We would finance this and ask for contributions from groups or schools in France and Sweden. "Our accountant says that all we need to do to get started is to create a nonprofit corporation and can solicit tax-deductible donations immediately. What is involved in setting up a foundation? Do you feel our idea is feasible?" What Kind of 'Foundation'? We ran Karl's question by attorney Jeffrey Haskell, Chief Legal Officer at Foundation Source, based in Fairfield, Conn. It is the nation's largest provider of support services for private foundations. "In states where fundraisers are required to register before soliciting the public at large, a charitable organization that fails to do so may face stiff penalties and incur severe reputational damage that can be difficult to repair," Haskell explains. "Indeed, some states publish public lists of organizations that are delinquent." Story continues "Your reader says he wants a 'foundation,' but he needs to decide if he wants to set up a private foundation or a public charity. Although both private foundations and public charities might have the word 'foundation' in their name, and both are classified as tax-exempt, 501(c)(3) organizations by the IRS, they have a major difference: the source of their funding. "Whereas a public charity, like the Make-A-Wish Foundation, gets its funding from the general public, a private foundation, like the Bill & Melinda Gates Foundation, derives almost all of its support from an individual, family or corporation," he explained. Not a Piece of Cake Having charitable ideas and goals are one thing, but fundraising -- finding the money to turn the couple's wish into reality -- is something quite different, as I learned. "If they establish this organization as a public charity, they would need to register in every state where funds are actively solicited," Haskell points out. "The couple would also need to constantly be fundraising to maintain their status as a public charity." As far as online solicitations go, to help give nonprofits a clearer set of guidelines, the National Association of State Charity Officials (NASCO) released the Charleston Principles in 2001. Under the principles, registration for online solicitation typically is required when a charity is domiciled or has a physical presence in a state requiring it. Even when a charity is neither domiciled nor physically present in a state, these principles require registration when the organization solicits donations through its website and (a) specifically targets residents within that state, such as through an email campaign, or (b) passively receives contributions from that state on a repeated or substantial basis. As you can see, fundraising -- and all the recordkeeping required -- is a lot of work, so Haskell suggests that establishing a private foundation might be a better alternative. "If they are personally able to provide most of the funding, a private foundation would be an ideal choice because it would eliminate the fundraising hassles while enabling them to be hands-on and to make decisions about who receives the awards." See Also: Should I Change Lawyers? Suggestions for Pursuing Either Option While the many considerations around establishing a private foundation or public charity are beyond the scope of today's story, Haskell provides some important guidance for those who want to establish either one: Perform a needs analysis. Is there a need for what you want to do, or is it already being addressed by another organization? If so, can you partner with them? If you decide that it is a "go," retain a lawyer who specializes in charities and nonprofits or a firm that establishes and manages private foundations. Because tax-exempt organizations are subject to strict regulations, it takes knowledge and careful oversight to remain in compliance. Carefully define your charitable purpose. Whether to help focus your own grant-making or to explain your organization's mission to potential donors, you'll need a clear mission statement. File for 501(c)(3) Tax-Exempt Status with the IRS. Draft a business plan that details how your organization will function. Recruit the most qualified people you know for your board of directors. "Both private foundations and public charities have enormous social and economic impact. Understanding the operational requirements, compliance considerations and philanthropic capabilities of each can help individuals choose the right type of organization for their needs and abilities," he concludes. Do Not Expect Donations from France or Sweden Although your venture has direct connections to France and Sweden, don't expect a lot of donations from either country, considering where they rank on the World Giving Index , which evaluates worldwide charitable giving. Indonesia was first; the U.S. came in as fourth. Sweden earned 42nd place. France -- 72nd place. See Also: What Type of Giver Are You? To Do the Most Good, Find Your Giving Personality Comments are suppressed in compliance with industry guidelines. Click here to learn more and read more articles from the author. This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA . EDITOR'S PICKS What NOT to Do When Discovering an Employee Is Stealing Top 5 Retirement Podcasts Everyone Should Listen To To Prepare Your Heirs for Future Wealth, Don\'t Hide the Truth Copyright 2019 The Kiplinger Washington Editors
This Month's Hottest IPO Is a Clothing Retailer It's not just temperatures heating up this month. More than a dozen companies have gone public in June, and there have been far more winners than losers. Just three of this month's IPOs have buckled below their initial price tags, but not all successful debutantes are faring the same. Slack, pet food e-tailerChewy, and gig economy marketplace operatorFiverrmay be the names generating headlines among this month's newbies, but no June offering has fared as well asRevolve Group(NYSE: RVLV). The online hub for fashionistas has soared 146% sincegoing public at $18two weeks ago. The clothing retailer leaning on the growing reach of online influencers to drum up sales is growing and profitable, and it even has an unlikely bull in its corner. Things may not end prettily for new investors chasing the stock, but momentum is squarely in its corner right now. Image source: Revolve Group. Revolve Group describes itself as a next-gen fashion retailer for millennials and Generation Z members. In short, it's an online apparel shop targeting anyone born since 1982. Revolve Group reaches this highly fickle audience by making cost-effective deals with fashion-forward influencers (you know, young social platform celebrities with gobs of followers). This would seem like a laughable business model if not for the fact that it works. Revolve Group rang up $498.7 million in net sales last year, 25% ahead of the nearly $400 million it served up a year earlier. Revolve Group is also profitable, something that a lot of the recent hot IPOs can't say. It's been squarely in the black for at least the last three years, including net income of $30.7 million in 2018. Leaning on influencers may have its critics. It's easy to hate on self-absorbed selfie snappers and laugh through the Fyre Festival documentaries, but it's hard to deny the simple math behind large audiences. Revolve Group's platform attracted an average of 9.4 million unique monthly visitors last year, and 57% of its sales came from customers visiting its site at least twice a week. These visitors also don't mind spending a lot of money in the aspirational push to live like an influencer. A whopping 79% of Revolve Group's net sales took place at full price in 2018, with an average order value of $279. Top-line growth may be slowing -- we went from 28% growth in 2017 to 25% last year and 21% through the first three months of this year -- but when you crank out a net margin north of 6% as an upstart online retailer, you're going to get the benefit of the doubt. Revolve Group had an unlikely cheerleader when it went public, as noted worrywart Citron Research put out a glowing report on the dot-com youth magnet. Citron established a $50 near-term price target on the stock, with more upside beyond that. It's true that therecent fashion-related IPOshave been a mixed bag. Most of them have been volatile, and it's undeniable that the two weeks of Revolve Group euphoria will eventually have its downturns. However, with the IPO likely to draw even more attention to the platform, it's hard to bet against something that's clearly working -- and that's pretty much what fashion is all about. More From The Motley Fool • 10 Best Stocks to Buy Today • The $16,728 Social Security Bonus You Cannot Afford to Miss • 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) • What Is an ETF? • 5 Recession-Proof Stocks • How to Beat the Market Rick Munarrizhas no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy.
Here’s What Hedge Funds Think About The TJX Companies, Inc. (TJX) Like everyone else, elite investors make mistakes. Some of their top consensus picks, such as Amazon, Facebook and Alibaba, have not done well in Q4 due to various reasons. Nevertheless, the data show elite investors' consensus picks have done well on average over the long-term. The top 20 stocks among hedge funds beat the S&P 500 Index ETF by more than 6 percentage points so far this year. Because their consensus picks have done well, we pay attention to what elite funds think before doing extensive research on a stock. In this article, we take a closer look at The TJX Companies, Inc. (NYSE:TJX) from the perspective of those elite funds. The TJX Companies, Inc. (NYSE:TJX)has seen a decrease in enthusiasm from smart money recently. Our calculations also showed that TJX isn't among the30 most popular stocks among hedge funds. To most stock holders, hedge funds are perceived as worthless, outdated financial tools of the past. While there are greater than 8000 funds in operation at present, Our experts look at the masters of this club, around 750 funds. Most estimates calculate that this group of people control most of all hedge funds' total capital, and by observing their inimitable picks, Insider Monkey has formulated various investment strategies that have historically outpaced the market. Insider Monkey's flagship hedge fund strategy outperformed the S&P 500 index by around 5 percentage points a year since its inception in May 2014 through the end of May. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 30.9% since February 2017 (through May 30th) even though the market was up nearly 24% during the same period. We just shared a list of 5 short targets in ourlatest quarterly updateand they are already down an average of 11.9% in less than a couple of weeks whereas our long picks outperformed the market by 2 percentage points in this volatile 2 week period. Let's take a gander at the latest hedge fund action regarding The TJX Companies, Inc. (NYSE:TJX). At Q1's end, a total of 54 of the hedge funds tracked by Insider Monkey were long this stock, a change of -7% from the fourth quarter of 2018. By comparison, 45 hedge funds held shares or bullish call options in TJX a year ago. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves. The largest stake in The TJX Companies, Inc. (NYSE:TJX) was held byArrowstreet Capital, which reported holding $659.1 million worth of stock at the end of March. It was followed by AQR Capital Management with a $381.8 million position. Other investors bullish on the company included Diamond Hill Capital, D E Shaw, and Two Sigma Advisors. Seeing as The TJX Companies, Inc. (NYSE:TJX) has witnessed bearish sentiment from the aggregate hedge fund industry, it's safe to say that there were a few fund managers that elected to cut their full holdings by the end of the third quarter. Intriguingly, James Parsons'sJunto Capital Managementsaid goodbye to the biggest stake of the "upper crust" of funds watched by Insider Monkey, valued at about $68.9 million in stock. Michael Kharitonov and Jon David McAuliffe's fund,Voleon Capital, also dumped its stock, about $31.8 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest was cut by 4 funds by the end of the third quarter. Let's now take a look at hedge fund activity in other stocks similar to The TJX Companies, Inc. (NYSE:TJX). These stocks are Duke Energy Corporation (NYSE:DUK), The Bank of Nova Scotia (NYSE:BNS), Canadian National Railway Company (NYSE:CNI), and Chubb Limited (NYSE:CB). All of these stocks' market caps are similar to TJX's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position DUK,26,1113817,9 BNS,14,518832,0 CNI,17,2175473,-7 CB,23,466816,-1 Average,20,1068735,0.25 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $1069 million. That figure was $3004 million in TJX's case. Duke Energy Corporation (NYSE:DUK) is the most popular stock in this table. On the other hand The Bank of Nova Scotia (NYSE:BNS) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks The TJX Companies, Inc. (NYSE:TJX) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately TJX wasn't nearly as popular as these 20 stocks and hedge funds that were betting on TJX were disappointed as the stock returned -4.6% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About New Residential Investment Corp (NRZ) We at Insider Monkey have gone over 738 13F filings that hedge funds and famous value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of March 31st. In this article we look at what those investors think of New Residential Investment Corp (NYSE:NRZ). New Residential Investment Corp (NYSE:NRZ)has experienced a decrease in enthusiasm from smart money of late.NRZwas in 18 hedge funds' portfolios at the end of March. There were 25 hedge funds in our database with NRZ positions at the end of the previous quarter. Our calculations also showed that nrz isn't among the30 most popular stocks among hedge funds. In today’s marketplace there are several tools stock market investors use to value stocks. A pair of the most under-the-radar tools are hedge fund and insider trading moves. Our researchers have shown that, historically, those who follow the best picks of the elite fund managers can outperform the broader indices by a healthy amount (see the details here). We're going to go over the recent hedge fund action surrounding New Residential Investment Corp (NYSE:NRZ). At the end of the first quarter, a total of 18 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -28% from the fourth quarter of 2018. On the other hand, there were a total of 21 hedge funds with a bullish position in NRZ a year ago. With the smart money's sentiment swirling, there exists an "upper tier" of noteworthy hedge fund managers who were increasing their stakes meaningfully (or already accumulated large positions). Among these funds,Balyasny Asset Managementheld the most valuable stake in New Residential Investment Corp (NYSE:NRZ), which was worth $61.5 million at the end of the first quarter. On the second spot was Capital Growth Management which amassed $36.4 million worth of shares. Moreover, Whitebox Advisors, Renaissance Technologies, and Laurion Capital Management were also bullish on New Residential Investment Corp (NYSE:NRZ), allocating a large percentage of their portfolios to this stock. Seeing as New Residential Investment Corp (NYSE:NRZ) has experienced declining sentiment from hedge fund managers, it's safe to say that there lies a certain "tier" of hedge funds who sold off their full holdings heading into Q3. Interestingly, Michael Blitzer'sKingstown Capital Managementsaid goodbye to the biggest position of the "upper crust" of funds tracked by Insider Monkey, valued at an estimated $21.3 million in stock, and Andrew Feldstein and Stephen Siderow's Blue Mountain Capital was right behind this move, as the fund cut about $7.8 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest was cut by 7 funds heading into Q3. Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as New Residential Investment Corp (NYSE:NRZ) but similarly valued. We will take a look at EnLink Midstream LLC (NYSE:ENLC), The Carlyle Group LP (NASDAQ:CG), People's United Financial, Inc. (NASDAQ:PBCT), and Companhia Brasileira de Distribuição (NYSE:CBD). This group of stocks' market valuations are similar to NRZ's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ENLC,10,39338,-5 CG,7,122872,-3 PBCT,20,176840,-2 CBD,12,93559,-1 Average,12.25,108152,-2.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 12.25 hedge funds with bullish positions and the average amount invested in these stocks was $108 million. That figure was $187 million in NRZ's case. People's United Financial, Inc. (NASDAQ:PBCT) is the most popular stock in this table. On the other hand The Carlyle Group LP (NASDAQ:CG) is the least popular one with only 7 bullish hedge fund positions. New Residential Investment Corp (NYSE:NRZ) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately NRZ wasn't nearly as popular as these 20 stocks and hedge funds that were betting on NRZ were disappointed as the stock returned -5% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Hedge Funds Have Never Been This Bullish On Americold Realty Trust (COLD) Billionaire hedge fund managers such as David Abrams, Steve Cohen and Stan Druckenmiller can generate millions or even billions of dollars every year by pinning down high-potential small-cap stocks and pouring cash into these candidates. Small-cap stocks are overlooked by most investors, brokerage houses, and financial services hubs, while the unlimited research abilities of the big players within the hedge fund industry can easily identify the undervalued and high-potential stocks that reside the ignored corners of equity markets. There are numerous small-cap stocks that have turned out to be great winners, which is one of the main reasons the Insider Monkey team pays close attention to the hedge fund activity in relation to these stocks. Americold Realty Trust (NYSE:COLD)shareholders have witnessed an increase in hedge fund interest in recent months.COLDwas in 27 hedge funds' portfolios at the end of the first quarter of 2019. There were 16 hedge funds in our database with COLD positions at the end of the previous quarter. Our calculations also showed that COLD isn't among the30 most popular stocks among hedge funds. So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio. Let's take a look at the key hedge fund action surrounding Americold Realty Trust (NYSE:COLD). At Q1's end, a total of 27 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 69% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in COLD over the last 15 quarters. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves. According to Insider Monkey's hedge fund database,Senator Investment Group, managed by Doug Silverman and Alexander Klabin, holds the biggest position in Americold Realty Trust (NYSE:COLD). Senator Investment Group has a $228.8 million position in the stock, comprising 5.2% of its 13F portfolio. The second largest stake is held byZimmer Partners, led by Stuart J. Zimmer, holding a $126.5 million position; 1.5% of its 13F portfolio is allocated to the stock. Other members of the smart money with similar optimism contain Ken Griffin'sCitadel Investment Group, Jeffrey Furber'sAEW Capital Managementand Jim Simons'sRenaissance Technologies. With a general bullishness amongst the heavyweights, key hedge funds have jumped into Americold Realty Trust (NYSE:COLD) headfirst.Marshall Wace LLP, managed by Paul Marshall and Ian Wace, assembled the most valuable position in Americold Realty Trust (NYSE:COLD). Marshall Wace LLP had $36.5 million invested in the company at the end of the quarter. John Khoury'sLong Pond Capitalalso made a $30.5 million investment in the stock during the quarter. The following funds were also among the new COLD investors: Ken Heebner'sCapital Growth Management, Jeffrey Talpins'sElement Capital Management, and Peter Rathjens, Bruce Clarke and John Campbell'sArrowstreet Capital. Let's now take a look at hedge fund activity in other stocks similar to Americold Realty Trust (NYSE:COLD). These stocks are Life Storage, Inc. (NYSE:LSI), MAXIMUS, Inc. (NYSE:MMS), CACI International Inc (NYSE:CACI), and LendingTree, Inc (NASDAQ:TREE). This group of stocks' market caps are closest to COLD's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position LSI,15,274431,2 MMS,20,288188,-2 CACI,13,132826,-5 TREE,17,82935,-4 Average,16.25,194595,-2.25 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 16.25 hedge funds with bullish positions and the average amount invested in these stocks was $195 million. That figure was $908 million in COLD's case. MAXIMUS, Inc. (NYSE:MMS) is the most popular stock in this table. On the other hand CACI International Inc (NYSE:CACI) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Americold Realty Trust (NYSE:COLD) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Hedge funds were also right about betting on COLD as the stock returned 2.9% during the same period and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
If You Had Bought i3 Verticals (NASDAQ:IIIV) Shares A Year Ago You'd Have Made 56% Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! If you want to compound wealth in the stock market, you can do so by buying an index fund. But if you pick the right individual stocks, you could make more than that. To wit, thei3 Verticals, Inc.(NASDAQ:IIIV) share price is 56% higher than it was a year ago, much better than the market return of around 4.1% (not including dividends) in the same period. If it can keep that out-performance up over the long term, investors will do very well! Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend. Check out our latest analysis for i3 Verticals To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). i3 Verticals went from making a loss to reporting a profit, in the last year. While it's good to see positive EPS of US$0.79 this year, the loss wasn't too bad last year. We'd argue the positive share price reflects the move to profitability. Some investors scan for companies that have just become profitable, since that's an important business development milestone. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. It might be well worthwhile taking a look at ourfreereport on i3 Verticals's earnings, revenue and cash flow. It's nice to see that i3 Verticals shareholders have gained 56% over the last year. A substantial portion of that gain has come in the last three months, with the stock up 20% in that time. This suggests the company is continuing to win over new investors. 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 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.
Hedge Funds Have Never Been This Bullish On Alteryx, Inc. (AYX) We at Insider Monkey have gone over 738 13F filings that hedge funds and famous value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of March 31st. In this article we look at what those investors think of Alteryx, Inc. (NYSE:AYX). Alteryx, Inc. (NYSE:AYX)shareholders have witnessed an increase in activity from the world's largest hedge funds in recent months. Our calculations also showed that AYX isn't among the30 most popular stocks among hedge funds. In today’s marketplace there are a large number of gauges stock market investors employ to size up publicly traded companies. Two of the best gauges are hedge fund and insider trading signals. Our researchers have shown that, historically, those who follow the best picks of the elite fund managers can outperform the market by a very impressive amount (see the details here). Let's analyze the latest hedge fund action regarding Alteryx, Inc. (NYSE:AYX). Heading into the second quarter of 2019, a total of 31 of the hedge funds tracked by Insider Monkey were long this stock, a change of 7% from the fourth quarter of 2018. On the other hand, there were a total of 16 hedge funds with a bullish position in AYX a year ago. With hedgies' capital changing hands, there exists an "upper tier" of key hedge fund managers who were increasing their holdings considerably (or already accumulated large positions). The largest stake in Alteryx, Inc. (NYSE:AYX) was held byAbdiel Capital Advisors, which reported holding $336.8 million worth of stock at the end of March. It was followed by Whale Rock Capital Management with a $63.4 million position. Other investors bullish on the company included D E Shaw, Renaissance Technologies, and Arrowstreet Capital. As industrywide interest jumped, key hedge funds have jumped into Alteryx, Inc. (NYSE:AYX) headfirst.Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, initiated the most outsized position in Alteryx, Inc. (NYSE:AYX). Arrowstreet Capital had $39.9 million invested in the company at the end of the quarter. Gregg Moskowitz'sInterval Partnersalso made a $14.7 million investment in the stock during the quarter. The following funds were also among the new AYX investors: Steve Cohen'sPoint72 Asset Management, Paul Marshall and Ian Wace'sMarshall Wace LLP, and Joel Greenblatt'sGotham Asset Management. Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Alteryx, Inc. (NYSE:AYX) but similarly valued. We will take a look at Sinopec Shanghai Petrochemical Co. (NYSE:SHI), Owens Corning (NYSE:OC), GW Pharmaceuticals plc (NASDAQ:GWPH), and Polaris Industries Inc. (NYSE:PII). All of these stocks' market caps are closest to AYX's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position SHI,5,12597,-1 OC,27,932300,-13 GWPH,23,540478,-2 PII,16,89139,1 Average,17.75,393629,-3.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 17.75 hedge funds with bullish positions and the average amount invested in these stocks was $394 million. That figure was $767 million in AYX's case. Owens Corning (NYSE:OC) is the most popular stock in this table. On the other hand Sinopec Shanghai Petrochemical Co. (NYSE:SHI) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Alteryx, Inc. (NYSE:AYX) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Hedge funds were also right about betting on AYX as the stock returned 4.8% during the same period and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Public Service Enterprise Group Incorporated (PEG) How do you pick the next stock to invest in? One way would be to spend hours of research browsing through thousands of publicly traded companies. However, an easier way is to look at the stocks that smart money investors are collectively bullish on. Hedge funds and other institutional investors usually invest large amounts of capital and have to conduct due diligence while choosing their next pick. They don't always get it right, but, on average, their stock picks historically generated strong returns after adjusting for known risk factors. With this in mind, let’s take a look at the recent hedge fund activity surrounding Public Service Enterprise Group Incorporated (NYSE:PEG). Public Service Enterprise Group Incorporated (NYSE:PEG)investors should pay attention to a decrease in support from the world's most elite money managers recently. Our calculations also showed that PEG isn't among the30 most popular stocks among hedge funds. In the eyes of most investors, hedge funds are perceived as slow, outdated financial tools of years past. While there are over 8000 funds with their doors open at the moment, We choose to focus on the leaders of this club, about 750 funds. These investment experts oversee most of all hedge funds' total asset base, and by following their finest investments, Insider Monkey has formulated a number of investment strategies that have historically outpaced the broader indices. Insider Monkey's flagship hedge fund strategy defeated the S&P 500 index by around 5 percentage points annually since its inception in May 2014 through the end of May. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 30.9% since February 2017 (through May 30th) even though the market was up nearly 24% during the same period. We just shared a list of 5 short targets in ourlatest quarterly updateand they are already down an average of 11.9% in less than a couple of weeks whereas our long picks outperformed the market by 2 percentage points in this volatile 2 week period. Let's take a look at the fresh hedge fund action surrounding Public Service Enterprise Group Incorporated (NYSE:PEG). At the end of the first quarter, a total of 28 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -7% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in PEG over the last 15 quarters. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,AQR Capital Managementwas the largest shareholder of Public Service Enterprise Group Incorporated (NYSE:PEG), with a stake worth $321.1 million reported as of the end of March. Trailing AQR Capital Management was Zimmer Partners, which amassed a stake valued at $240.3 million. Adage Capital Management, Renaissance Technologies, and Millennium Management were also very fond of the stock, giving the stock large weights in their portfolios. Judging by the fact that Public Service Enterprise Group Incorporated (NYSE:PEG) has witnessed declining sentiment from the aggregate hedge fund industry, it's safe to say that there exists a select few funds that decided to sell off their positions entirely heading into Q3. It's worth mentioning that Dmitry Balyasny'sBalyasny Asset Managementsaid goodbye to the biggest position of the 700 funds followed by Insider Monkey, comprising close to $87.8 million in stock, and Jonathan Barrett and Paul Segal's Luminus Management was right behind this move, as the fund dumped about $50.5 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest was cut by 2 funds heading into Q3. Let's now review hedge fund activity in other stocks - not necessarily in the same industry as Public Service Enterprise Group Incorporated (NYSE:PEG) but similarly valued. We will take a look at HP Inc. (NYSE:HPQ), Credit Suisse Group AG (NYSE:CS), Thomson Reuters Corporation (NYSE:TRI), and Monster Beverage Corp (NASDAQ:MNST). All of these stocks' market caps are closest to PEG's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position HPQ,35,868419,-5 CS,14,194661,0 TRI,17,227269,-2 MNST,33,2067252,1 Average,24.75,839400,-1.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 24.75 hedge funds with bullish positions and the average amount invested in these stocks was $839 million. That figure was $1019 million in PEG's case. HP Inc. (NYSE:HPQ) is the most popular stock in this table. On the other hand Credit Suisse Group AG (NYSE:CS) is the least popular one with only 14 bullish hedge fund positions. Public Service Enterprise Group Incorporated (NYSE:PEG) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately PEG wasn't nearly as popular as these 20 stocks and hedge funds that were betting on PEG were disappointed as the stock returned -1.2% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Nexstar Media Group, Inc. (NXST) How do we determine whether Nexstar Media Group, Inc. (NASDAQ:NXST) makes for a good investment at the moment? We analyze the sentiment of a select group of the very best investors in the world, who spend immense amounts of time and resources studying companies. They may not always be right (no one is), but data shows that their consensus long positions have historically outperformed the market when we adjust for known risk factors. IsNexstar Media Group, Inc. (NASDAQ:NXST)a healthy stock for your portfolio? Money managers are reducing their bets on the stock. The number of bullish hedge fund bets dropped by 3 recently. Our calculations also showed that NXST isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Let's take a glance at the recent hedge fund action regarding Nexstar Media Group, Inc. (NASDAQ:NXST). At Q1's end, a total of 31 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -9% from the fourth quarter of 2018. On the other hand, there were a total of 40 hedge funds with a bullish position in NXST a year ago. With the smart money's positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions). The largest stake in Nexstar Media Group, Inc. (NASDAQ:NXST) was held byWindacre Partnership, which reported holding $186.5 million worth of stock at the end of March. It was followed by P2 Capital Partners with a $160.9 million position. Other investors bullish on the company included Park West Asset Management, Hound Partners, and Baupost Group. Judging by the fact that Nexstar Media Group, Inc. (NASDAQ:NXST) has experienced bearish sentiment from hedge fund managers, it's safe to say that there were a few fund managers that decided to sell off their full holdings by the end of the third quarter. Interestingly, Parag Vora'sHG Vora Capital Managementdropped the largest position of all the hedgies followed by Insider Monkey, worth about $121.9 million in call options. Peter S. Park's fund,Park West Asset Management, also sold off its call options, about $118 million worth. These transactions are important to note, as total hedge fund interest fell by 3 funds by the end of the third quarter. Let's go over hedge fund activity in other stocks similar to Nexstar Media Group, Inc. (NASDAQ:NXST). We will take a look at Genesee & Wyoming Inc (NYSE:GWR), Kemper Corporation (NYSE:KMPR), Stericycle Inc (NASDAQ:SRCL), and Zynga Inc (NASDAQ:ZNGA). This group of stocks' market caps are closest to NXST's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position GWR,22,409479,4 KMPR,8,83442,-7 SRCL,22,560523,3 ZNGA,35,799497,6 Average,21.75,463235,1.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 21.75 hedge funds with bullish positions and the average amount invested in these stocks was $463 million. That figure was $1071 million in NXST's case. Zynga Inc (NASDAQ:ZNGA) is the most popular stock in this table. On the other hand Kemper Corporation (NYSE:KMPR) is the least popular one with only 8 bullish hedge fund positions. Nexstar Media Group, Inc. (NASDAQ:NXST) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately NXST wasn't nearly as popular as these 20 stocks and hedge funds that were betting on NXST were disappointed as the stock returned -2.9% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Top Analyst Reports for ExxonMobil, Oracle & ADP Friday, June 21, 2019 The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including ExxonMobil (XOM), Oracle (ORCL) and ADP (ADP). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today. You can see all of today’s research reports here >>> ExxonMobil ’s shares have outperformed the Zacks Integrated International Oil industry (+16.9% vs. +14%) over the past six months. The Zacks analyst thinks ExxonMobil has a leading position in the energy industry owing to its size and diverse asset base, both in terms of business mix and geographical footprint. With a stable cash position, the company’s balance sheet is one of the best in the industry. This has allowed ExxonMobil to reward stockholders with a 6.2% average annual dividend hike over the past 37 years. Notably, with three fresh offshore oil discoveries in Guyana, ExxonMobil recently completed 13 key discoveries in the Stabroek Block. However, since in Europe, demand for gas is highly seasonal, the company expects soft European gas volumes to weaken its upstream business through the April-to-June quarter of 2019. ExxonMobil also anticipates that substantial scheduled maintenance activities will adversely impact its downstream & chemical businesses in the second quarter of 2019. (You can read the full research report on ExxonMobil here >>> ). Shares of Oracle have underperformed the Zacks Computer Software industry in the past six months, gaining +33.5% vs. +43.3%. Oracle reported stellar fourth-quarter results. Moreover, both top and bottom line increased on a year over year basis. The Zacks analyst thinks the company is benefiting from strong adoption of its cloud-based solutions, comprising Fusion ERP and Fusion HCM, among others. Partnerships with the likes of Accenture are helping the company rapidly expand its cloud-base clientele. Also, anticipated strong demand for the next-generation autonomous database supported by machine learning will boost its competitive position against Amazon Web Services (AWS). Story continues However, stiff competition in the cloud market from dominant players is anticipated to limit margin expansion. Further, lower hardware volumes are anticipated to hurt top-line growth consequently keeping margins under pressure. Additionally, integration risks from buyouts remain a concern. (You can read the full research report on Oracle here >>> ). ADP ’s shares have gained +21.9% over the past year, outperforming the Zacks Outsourcing industry, which has gained +15% over the same period. The Zacks analyst thinks ADP continues to enjoy a dominant position in the human capital management market through strategic acquisitions. It has a strong business model, high recurring revenues, good margins, robust client retention and low capital expenditure. The company continues to innovate, improve operations and invest in its ongoing transformation efforts. A solid balance sheet enables it to continue with its shareholder-friendly activities alongside strategic buyouts and investments on product development. On the flip side, ADP faces significant competition in each of its product lines. Failure to remain technologically updated might reduces the demand for its solutions and services. The company is seeing increase in expenses as it continues to acquire companies and invest in transformation efforts. (You can read the full research report on ADP here >>> ). Other noteworthy reports we are featuring today include Baxter (BAX), Northrop Grumman (NOC) and EOG Resources (EOG). 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 >> Mark Vickery Senior Editor Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Guyana Discoveries Aid ExxonMobil (XOM), Chemical Unit Hurts Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships ADP Rides on Strategic Buyouts Amid Technological Challenges Featured Reports Investments Aid Northrop (NOC), High Operating Expenses Hurt Per the Zacks analyst, Northrop Grumman's regular investments in growth projects bolsters its future prospects. However, it continues to incur higher operating expenses that raises concerns. EOG Resources (EOG) Gains on Eagle Ford, Well Expenses High Huge inventory of premium drilling wells in the Eagle Ford shale will contribute to EOG Resources' oil production. But, escalating lease and well operating costs are a concern, per the Zacks analyst. Renal Care Unit Aids Baxter (BAX) Amid Stiff Competition The Zacks analyst is apprehensive about intense competition in the MedTech space. Strong Asia Business Aids Manulife (MFC), High Debt Level Ails Per the Zacks analyst, Manulife is poised to grow on new business growth in Asia that has been aiding operational results. Soliris, Ultomiris Boost Alexion (ALXN) Amid Pricing Woes Per the Zacks analyst, label expansion of Alexion's lead drug, Soliris boost sales. Strong End-Markets Aid Xylem (XYL), Forex Woes Ail Per the Zacks analyst, Xylem gains from solid growth opportunities in end-markets. Product Differentiation Aids Semtech (SMTC) Amid Weak Demand Per the Zacks analyst, Semtech is riding on the momentum in IoT, data center and mobile markets driven by its product differentiation strategy. New Upgrades Expanding Diagnosis & Treatment Portfolio Aids Philips (PHG) Per the Zacks analyst, Philips continues to benefit from growing Diagnosis & Treatment business on the back of partnerships, expanding geographical coverage and innovative solutions. Rising Assets, Cost Control Efforts Support Lazard (LAZ) Per the Zacks analyst, Lazard's investment strategies in equity and fixed income markets might boost assets under management. Also, focus on cost savings will likely enhance its profitability. Robust Wireless Growth Benefits Shaw Communications (SJR) Per the Zacks analyst, Shaw Communications' Wireless business is benefiting from higher subscriber growth and an improvement in average revenue per unit (ARPU). New Downgrades Lower Metal Prices, Volumes to Hurt Reliance Steel (RS) The Zacks analyst thinks that softer metal prices, especially for carbon steel, will crimp the company's margins. Lower sales volumes will also put pressure on its top line. High Funding Costs, Low Margins to Hit Annaly's (NLY) Growth Per the Zacks analyst, unfavorable funding dynamics and compressed spreads will likely dampen Annaly's performance and dividend distributions. Higher Investment Costs to Hurt John Wiley's (JW.A) Earnings Per the Zacks analyst, elevated investments for growth and optimization of Research and Education Services are likely to hurt John Wiley's earnings in fiscal 2020. undefined undefined Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report EOG Resources, Inc. (EOG) : Free Stock Analysis Report Baxter International Inc. (BAX) : Free Stock Analysis Report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
Here’s What Hedge Funds Think About Arista Networks Inc (ANET) Hedge funds are known to underperform the bull markets but that's not because they are terrible at stock picking. Hedge funds underperform because their net exposure in only 40-70% and they charge exorbitant fees. No one knows what the future holds and how market participants will react to the bountiful news that floods in each day. However, hedge funds' consensus picks on average deliver market beating returns. For example in the first 5 months of this year through May 30th the Standard and Poor’s 500 Index returned approximately 12.1% (including dividend payments). Conversely, hedge funds’ top 20 large-cap stock picks generated a return of 18.7% during the same 5-month period, with the majority of these stock picks outperforming the broader market benchmark. Interestingly, an average long/short hedge fund returned only a fraction of this value due to the hedges they implemented and the large fees they charged. If you pay attention to the actual hedge fund returns versus the returns of their long stock picks, you might believe that it is a waste of time to analyze hedge funds' purchases. We know better. That's why we scrutinize hedge fund sentiment before we invest in a stock like Arista Networks Inc (NYSE:ANET). Arista Networks Inc (NYSE:ANET)investors should be aware of an increase in activity from the world's largest hedge funds recently.ANETwas in 28 hedge funds' portfolios at the end of March. There were 23 hedge funds in our database with ANET holdings at the end of the previous quarter. Our calculations also showed that ANET isn't among the30 most popular stocks among hedge funds. In the eyes of most investors, hedge funds are viewed as underperforming, old investment vehicles of yesteryear. While there are greater than 8000 funds with their doors open at the moment, We choose to focus on the leaders of this group, about 750 funds. It is estimated that this group of investors preside over most of all hedge funds' total capital, and by keeping track of their best equity investments, Insider Monkey has formulated a few investment strategies that have historically outperformed the market. Insider Monkey's flagship hedge fund strategy outperformed the S&P 500 index by around 5 percentage points per year since its inception in May 2014 through the end of May. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 30.9% since February 2017 (through May 30th) even though the market was up nearly 24% during the same period. We just shared a list of 5 short targets in ourlatest quarterly updateand they are already down an average of 11.9% in less than a couple of weeks whereas our long picks outperformed the market by 2 percentage points in this volatile 2 week period. Let's analyze the latest hedge fund action surrounding Arista Networks Inc (NYSE:ANET). At Q1's end, a total of 28 of the hedge funds tracked by Insider Monkey were long this stock, a change of 22% from the fourth quarter of 2018. By comparison, 28 hedge funds held shares or bullish call options in ANET a year ago. With the smart money's capital changing hands, there exists a few key hedge fund managers who were increasing their stakes significantly (or already accumulated large positions). Among these funds,Renaissance Technologiesheld the most valuable stake in Arista Networks Inc (NYSE:ANET), which was worth $135.3 million at the end of the first quarter. On the second spot was Polar Capital which amassed $106.6 million worth of shares. Moreover, Citadel Investment Group, Hitchwood Capital Management, and Citadel Investment Group were also bullish on Arista Networks Inc (NYSE:ANET), allocating a large percentage of their portfolios to this stock. As industrywide interest jumped, key hedge funds have been driving this bullishness.Hitchwood Capital Management, managed by James Crichton, assembled the most valuable position in Arista Networks Inc (NYSE:ANET). Hitchwood Capital Management had $66 million invested in the company at the end of the quarter. Josh Resnick'sJericho Capital Asset Managementalso initiated a $60.1 million position during the quarter. The other funds with brand new ANET positions are Brandon Haley'sHolocene Advisors, Jeff Lignelli'sIncline Global Management, and Tor Minesuk'sMondrian Capital. Let's go over hedge fund activity in other stocks similar to Arista Networks Inc (NYSE:ANET). We will take a look at T. Rowe Price Group, Inc. (NASDAQ:TROW), PACCAR Inc (NASDAQ:PCAR), Waste Connections, Inc. (NYSE:WCN), and Discover Financial Services (NYSE:DFS). All of these stocks' market caps match ANET's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position TROW,26,519659,4 PCAR,23,94730,4 WCN,26,545837,-2 DFS,36,742031,-1 Average,27.75,475564,1.25 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 27.75 hedge funds with bullish positions and the average amount invested in these stocks was $476 million. That figure was $715 million in ANET's case. Discover Financial Services (NYSE:DFS) is the most popular stock in this table. On the other hand PACCAR Inc (NASDAQ:PCAR) is the least popular one with only 23 bullish hedge fund positions. Arista Networks Inc (NYSE:ANET) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately ANET wasn't nearly as popular as these 20 stocks and hedge funds that were betting on ANET were disappointed as the stock returned -21.1% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Brunswick Corporation (BC) The 700+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the first quarter, which unveil their equity positions as of March 31. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Brunswick Corporation (NYSE:BC). Brunswick Corporation (NYSE:BC)investors should be aware of an increase in support from the world's most elite money managers in recent months. Our calculations also showed that bc isn't among the30 most popular stocks among hedge funds. In the eyes of most shareholders, hedge funds are seen as worthless, old financial tools of the past. While there are over 8000 funds trading at present, Our experts choose to focus on the leaders of this club, approximately 750 funds. These hedge fund managers shepherd bulk of the hedge fund industry's total capital, and by observing their best stock picks, Insider Monkey has brought to light many investment strategies that have historically exceeded Mr. Market. Insider Monkey's flagship hedge fund strategy surpassed the S&P 500 index by around 5 percentage points per year since its inception in May 2014 through the end of May. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 30.9% since February 2017 (through May 30th) even though the market was up nearly 24% during the same period. We just shared a list of 5 short targets in ourlatest quarterly updateand they are already down an average of 11.9% in less than a couple of weeks whereas our long picks outperformed the market by 2 percentage points in this volatile 2 week period. [caption id="attachment_30621" align="aligncenter" width="487"] Cliff Asness of AQR Capital Management[/caption] Let's take a gander at the recent hedge fund action surrounding Brunswick Corporation (NYSE:BC). Heading into the second quarter of 2019, a total of 27 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 4% from the previous quarter. The graph below displays the number of hedge funds with bullish position in BC over the last 15 quarters. With hedge funds' positions undergoing their usual ebb and flow, there exists an "upper tier" of notable hedge fund managers who were increasing their stakes significantly (or already accumulated large positions). The largest stake in Brunswick Corporation (NYSE:BC) was held byLakewood Capital Management, which reported holding $147.8 million worth of stock at the end of March. It was followed by Adage Capital Management with a $70.4 million position. Other investors bullish on the company included D E Shaw, Impala Asset Management, and AQR Capital Management. As aggregate interest increased, key money managers have been driving this bullishness.Point72 Asset Management, managed by Steve Cohen, initiated the largest position in Brunswick Corporation (NYSE:BC). Point72 Asset Management had $36.3 million invested in the company at the end of the quarter. David Rosen'sRubric Capital Managementalso made a $4.8 million investment in the stock during the quarter. The other funds with new positions in the stock are Mariko Gordon'sDaruma Asset Management, Marc Majzner'sClearline Capital, and Brandon Haley'sHolocene Advisors. Let's now review hedge fund activity in other stocks - not necessarily in the same industry as Brunswick Corporation (NYSE:BC) but similarly valued. We will take a look at Southwest Gas Holdings, Inc. (NYSE:SWX), The Scotts Miracle-Gro Company (NYSE:SMG), SLM Corp (NASDAQ:SLM), and Choice Hotels International, Inc. (NYSE:CHH). This group of stocks' market values match BC's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position SWX,20,207977,3 SMG,16,167599,-4 SLM,29,576434,5 CHH,18,272313,-1 Average,20.75,306081,0.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 20.75 hedge funds with bullish positions and the average amount invested in these stocks was $306 million. That figure was $565 million in BC's case. SLM Corp (NASDAQ:SLM) is the most popular stock in this table. On the other hand The Scotts Miracle-Gro Company (NYSE:SMG) is the least popular one with only 16 bullish hedge fund positions. Brunswick Corporation (NYSE:BC) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately BC wasn't nearly as popular as these 20 stocks and hedge funds that were betting on BC were disappointed as the stock returned -14.9% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Stantec Inc. (TSE:STN) A Financially Sound Company? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Stantec Inc. (TSE:STN), with a market cap of CA$3.6b, often get neglected by retail investors. Surprisingly though, when accounted for risk, mid-caps have delivered better returns compared to the two other categories of stocks. Let’s take a look at STN’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 yourselfinto STN here. See our latest analysis for Stantec STN has built up its total debt levels in the last twelve months, from CA$911m to CA$1.8b – this includes long-term debt. With this growth in debt, STN currently has CA$119m remaining in cash and short-term investments to keep the business going. Moreover, STN has generated cash from operations of CA$205m over the same time period, leading to an operating cash to total debt ratio of 11%, meaning that STN’s operating cash is less than its debt. At the current liabilities level of CA$831m, it appears that the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.9x. The current ratio is the number you get when you divide current assets by current liabilities. Generally, for Professional Services companies, this is a reasonable ratio since there is a bit of a cash buffer without leaving too much capital in a low-return environment. With debt reaching 62% of equity, STN 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 STN's case, the ratio of 6.82x suggests that interest is appropriately covered, which means that lenders may be less hesitant to lend out more funding as STN’s high interest coverage is seen as responsible and safe practice. Although STN’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. Since there is also no concerns around STN's liquidity needs, this may be its optimal capital structure for the time being. I admit this is a fairly basic analysis for STN's financial health. Other important fundamentals need to be considered alongside. I recommend you continue to research Stantec to get a better picture of the mid-cap by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for STN’s future growth? Take a look at ourfree research report of analyst consensusfor STN’s outlook. 2. Valuation: What is STN 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 STN 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.
Here’s What Hedge Funds Think About Essent Group Ltd (ESNT) Reputable billionaire investors such as Jim Simons, Cliff Asness and David Tepper generate exorbitant profits for their wealthy accredited investors (a minimum of $1 million in investable assets would be required to invest in a hedge fund and most successful hedge funds won't accept your savings unless you commit at least $5 million) by pinpointing winning small-cap stocks. There is little or no publicly-available information at all on some of these small companies, which makes it hard for an individual investor to pin down a winner within the small-cap space. However, hedge funds and other big asset managers can do the due diligence and analysis for you instead, thanks to their highly-skilled research teams and vast resources to conduct an appropriate evaluation process. Looking for potential winners within the small-cap galaxy of stocks? We believe following the smart money is a good starting point. Essent Group Ltd (NYSE:ESNT)was in 27 hedge funds' portfolios at the end of March. ESNT investors should pay attention to a decrease in hedge fund interest of late. There were 28 hedge funds in our database with ESNT holdings at the end of the previous quarter. Our calculations also showed that esnt isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. [caption id="attachment_745225" align="aligncenter" width="473"] Noam Gottesman, GLG Partners[/caption] We're going to take a glance at the new hedge fund action encompassing Essent Group Ltd (NYSE:ESNT). Heading into the second quarter of 2019, a total of 27 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -4% from the fourth quarter of 2018. By comparison, 27 hedge funds held shares or bullish call options in ESNT a year ago. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Polar Capitalwas the largest shareholder of Essent Group Ltd (NYSE:ESNT), with a stake worth $71.7 million reported as of the end of March. Trailing Polar Capital was GLG Partners, which amassed a stake valued at $66.1 million. Renaissance Technologies, Millennium Management, and D E Shaw were also very fond of the stock, giving the stock large weights in their portfolios. Due to the fact that Essent Group Ltd (NYSE:ESNT) has faced falling interest from the smart money, logic holds that there were a few money managers who were dropping their positions entirely heading into Q3. Intriguingly, Anand Parekh'sAlyeska Investment Groupcut the largest stake of all the hedgies followed by Insider Monkey, comprising about $11.4 million in stock. Michael Hintze's fund,CQS Cayman LP, also sold off its stock, about $2.9 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest was cut by 1 funds heading into Q3. Let's now review hedge fund activity in other stocks - not necessarily in the same industry as Essent Group Ltd (NYSE:ESNT) but similarly valued. We will take a look at Pinnacle Financial Partners, Inc. (NASDAQ:PNFP), ALLETE Inc (NYSE:ALE), SINA Corp (NASDAQ:SINA), and Amneal Pharmaceuticals, Inc. (NYSE:AMRX). This group of stocks' market valuations are similar to ESNT's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position PNFP,15,87922,0 ALE,18,246797,0 SINA,24,474870,3 AMRX,8,27694,0 Average,16.25,209321,0.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 16.25 hedge funds with bullish positions and the average amount invested in these stocks was $209 million. That figure was $310 million in ESNT's case. SINA Corp (NASDAQ:SINA) is the most popular stock in this table. On the other hand Amneal Pharmaceuticals, Inc. (NYSE:AMRX) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Essent Group Ltd (NYSE:ESNT) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Hedge funds were also right about betting on ESNT as the stock returned 9.3% during the same period and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here's what Salesforce thinks you missed about its massive $15.7 billion acquisition Things haven’t been the same for Salesforce’s usually nicely rewarded investors since it plunked down a startling $15.7 billion to buy software play Tableau. Salesforce’s stock (CRM) has lagged the broader Nasdaq Composite and Dow Jones Industrial Average for a majority of the time following the deal announcement on June 10. Recall that Salesforce’s stock dropped 8% on the day the deal was announced. The reaction by Wall Street to Salesforce’s largest acquisition to date has been mixed at best. Some point to Salesforce using its stock to fund the entire transaction as a negative. Others think the company overpaid for a software company that has lost gargantuan sums these past three years. Salesforce says Tableau (DATA) will help it sell a more complete offering to companies undergoing big tech transformations. And top Salesforce executive Bret Taylor thinks the market’s reaction has totally missed the mark. “With Tableau it’s all about digital transformation,” Taylor, who is Salesforce’s president and former Facebook chief tech officer, said on Yahoo Finance’sThe First Trade. “When I talk to C-suite level executives three themes come up around digital transformation. The first is around integration. How can you bring together all of your customer data and provide a simple experience,” added Taylor. “The second is around customer experience around customer service and marketing. And the third pillar is around data. When you are going through that digital transformation you want to empower every single one of your employees to be literate around data. So we are excited about the opportunity to bring together those three pillars that empower every company.” The quicker Salesforce can bring to life what Taylor points out on Tableau, the better. Brian Sozzi is an editor-at-large and co-host of ‘The First Trade’ at Yahoo Finance. Follow Brian Sozzi him on Twitter@BrianSozzi Read the latest financial and business news from Yahoo Finance • Why Shake Shack CEO is testing a 4-day workweek • Trump's trade war with China may shock investors this summer • 2 black swans could come out of nowhere and kill stocks this summer • Why scrapping Trump's corporate tax cuts could crush businesses Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,SmartNews,LinkedIn,YouTube, andreddit.
Hemispherx Biopharma Inc (HEB) Exec. Vice Chairman/CEO/Pres. Thomas K. ... Exec. Vice Chairman/CEO/Pres. of Hemispherx Biopharma Inc (HEB) Thomas K. Equels bought 29,404 shares of HEB on 06/21/2019 at an average price of $4.03 a share.
Does IDT Corporation's (NYSE:IDT) CEO Salary Reflect Performance? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Shmuel Jonas has been the CEO of IDT Corporation (NYSE:IDT) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid. View our latest analysis for IDT Our data indicates that IDT Corporation is worth US$219m, and total annual CEO compensation is US$855k. (This figure is for the year to July 2018). While we always look at total compensation first, we note that the salary component is less, at US$495k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.1m. So Shmuel Jonas receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. You can see a visual representation of the CEO compensation at IDT, below. IDT Corporation has reduced its earnings per share by an average of 63% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down -6.7%. Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assessthis data-rich visualizationof earnings, revenue and cash flow. Since shareholders would have lost about 20% over three years, some IDT Corporation shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation. Remuneration for Shmuel Jonas is close enough to the median pay for a CEO of a similar sized company . Returns have been disappointing and the company is not growing its earnings per share. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. Shareholders may want tocheck for free if IDT insiders are buying or selling shares. Arguably, business quality is much more important than CEO compensation levels. So check out thisfreelist of interesting companies, that have HIGH return on equity and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
MLB explains why baseballs are leaving yard at high rate It took a while, but Major League Baseball finally admitted theres something weird going on with the balls this season. Commissioner Rob Manfred said Thursday that the baseballs have contributed to this years historic home-run rate. Manfred told David Lennon of Newsday the baseballs have less drag due to the pill in the middle of the ball. MLBs official stance on this years historic HR pace, as Manfred relayed, is this batch of baseballs having less drag, due to the pill at the balls center. David Lennon (@DPLennon) June 20, 2019 The mention of drag there is more important than the pill at the center of the ball. Robert Arthur of Baseball Prospectus is among the many analysts who have critically look at the baseballs over the past couple seasons. In April, he concluded the drag on the baseball was extremely low . What does that mean? As Arthur explained, the baseball flies a lot farther . [D]rag is incredibly important in determining how likely a hitter is to knock one out of the park. As baseballs become more aerodynamic, they travel further given a certain initial velocity. A deep fly ball that might have been caught at the warning track can instead go into the first row of the stands. A 3 percent change in drag coefficient can work to add about five feet to a well-hit fly ball, which can in turn increase home runs league wide by an astounding 10-15 percent. Arthur compared the low drag to the numbers he got during the 2017 season, when the home-run rate spiked. A record 6,105 home runs were hit that season. That record is on pace to be shattered in 2019. The league is currently on pace to hit 6,614 home runs. This season, 16 players have already hit at least 20 home runs. Last June 21, only four players had hit 20 home runs. In 2017, it was just seven players. Manfred did not say whether the league planned to correct the issue moving forward. Following the home-run spike in 2017, the balls seemed to fall back to normal. The home-run total dropped back to 5,585 in 2018. Still high, but nowhere near the record. Story continues If something is going to change again, it would fall on MLB to make it happen. MLB owns Rawlings, the company that makes its baseballs. Chris Cwik is a writer for Yahoo Sports. Have a tip? Email him at christophercwik@yahoo.com or follow him on Twitter! Follow @Chris_Cwik More from Yahoo Sports: 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

Subsets and Splits

No community queries yet

The top public SQL queries from the community will appear here once available.