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Kim Kardashians Fans Are Divided Over Her New Vogue Pics
Photo credit: Stefanie Keenan - Getty Images From Cosmopolitan Kim Kardashian just shared her latest Vogue cover shoot on Instagram, and her fans are divided about it. Some love the edgy styles, while others are taking a hard pass. Okay, yall, KKW Beauty mogul Kim Kardashian has been BUSY lately. Onscreen, Kim and the fam are dealing with the now-infamous (dont @ me) cheating scandal that was Tristan Third Trimester Thompson kissing Jordyn Woods while he was dating Khloé Kardashian, and IRL, Kim is currently on two-week vacation in Costa Rica with Kanye West, Kourtney Kardashian, Scott Disick, and most of their kids . And lest you think this is a vacation vacation, theyre actually all there filming for Keeping Up With the Kardashians . Somehow, amid all this, our girl Kim found time to shoot a new cover for Vogue Japan -its a hard life, but someone has to live it! Last night, Kim shared the photos on Instagram, and the response has been...mixed. To be fair, the styling was very ~fashun~, with Kim wearing avant-garde headpieces (slash avant-garde headpieces wearing her ) and a dress made up of puffy coat material, and there are also some...porcelain hands involved. Kim seemed amped about the pics, captioning the post, 3 VOGUE JAPAN COVERS!!! This was an absolute dream come true for me! You really just have to see them for yourself: View this post on Instagram 3 VOGUE JAPAN COVERS!!! This was an absolute dream come true for me! Styled by the legendary @anna_dello_russo and shot by @luigiandiango Make Up @makeupbymario Hair @chrisappleton1 @voguejapan @kkwbeauty A post shared by Kim Kardashian West (@kimkardashian) on Jun 20, 2019 at 6:18pm PDT Some of Kims followers LOVED the new pics, commenting things like, THIS IS EVERYTHING!!!, Obsessed, and Just WOW! However, not everyone was into these lewks, and some fans left more, er, colorful comments like, That 4th fit tho...got sis lookin like a whole supersize tampon, Is it just me, or does the second pic look like shes being birthed, Who styled this. Fire them, and What are these outfits? Story continues Obviously, Kim is too busy basking in her Vogue cover girl vibes/shooting in Costa Rica to respond to any of the haters, but hopefully, we can all agree that at least ONE of these pics needs to be made into a meme ASAP. ('You Might Also Like',) 16 Unexpected Fashion Rules That the Royal Family Follows The 8 Best Clarifying Shampoos for Getting Rid of Product Buildup Here's How to Flawlessly Conceal Your Acne |
This VC Firm Invested $200 Million in Slack. Now Its Stake Is Worth $4.6 Billion
Stewart Butterfield loved the game, but not enough people agreed with him. He spent two years and raised roughly $11 million to build an online adventure game called Glitch that featured garrulous, blue-headed creatures and milk-drunk butterflies.
Once people had a chance to play it and Butterfield could track the numbers, the verdict was clear: Glitch was a flop. “There was this night where I just lost faith,” Butterfield said in apodcastinterview. He decided in 2012 that it was game over. Butterfield made plans to shut down the company and give the remaining money back to his investors.
Andrew Braccia, a partner at venture capital firm Accel, wouldn’t accept the refund. He and other investors urged Butterfield to keep the remaining $5 million and try something else. That turned into Slack Technologies Inc., the maker of corporate chat software thatwent publicThursday. At the close of trading, Slack’s market value was $19 billion.
Accel invested about $200 million in Slack over seven years, largely driven by Braccia’s unwavering faith in Butterfield. As of the stock debut, Accel held 24% of the company, the biggest VC stake in a newly public unicorn in recent history. Those shares are worth $4.6 billion today.
Owning such a large chunk of a company is unusual in venture investing for a couple reasons. If a startup appears to be succeeding, founders and other investors compete fiercely for shares. And when things are uncertain, overexposing a fund to one company can be a foolish gamble. “They don’t all look like winners right away,” said Trae Vassallo, managing director of early-stage venture firm Defy.
The startup failure rate is 67%, according to research firm CB Insights. Just 1% of those achieve a unicorn valuation of at least $1 billion. “You have to have a clear conviction when making a concentrated bet,” said Byron Deeter, a partner at Bessemer Venture Partners. “If you’re right, you’ll be disproportionately rewarded. But if it goes bad, there’s a real risk.”
Slack is what happens when a risky bet pays off. The value of Accel’s stake is greater than that of any private financier of Lyft Inc., Snap Inc., Spotify Technology SA or Twitter Inc., each of which went public at higher market values.
In an interview Thursday, Butterfield said Accel was eager to buy into every funding round for Slack—of which there were many—and offered to invest more than expected almost every time. The company had raised more than $1.2 billion in private capital, according to CB Insights data. “Our whole board, the VC members of the board, have worked incredibly hard,” Butterfield said. “I feel incredibly well supported.”
In the windup to Slack’s listing, Accel converted about a quarter of its Slack holdings to common stock, allowing it to sell that portion of its shares. Such a transaction could return more than $1 billion for the VC firm, earning back the total sum of several funds. And that doesn’t account for two other Accel companies that have gone public since April, Crowdstrike Holdings Inc. and Pagerduty Inc.
In 2012, when Butterfield was convinced he’d failed, Braccia was steadfast, said Bradley Horowitz, who put some of his own money in the game company. That’s probably because Braccia recalled what happened the last time Butterfield made a bad game. It morphed into a popular photo-sharing site called Flickr, which Yahoo! bought for around $25 million in 2005. Braccia, Butterfield and Horowitz all worked together at Yahoo.
Horowitz, now a vice president of product atGoogle, said Braccia “was the one who said ‘keep going.’ He had the determination.” Horowitz joined Braccia in refusing to take his money back when Butterfield was ready to give up. “Stewart could have told me he was building a new coat hanger,” Horowitz said. “I would be all in.”
Braccia declined to be interviewed, citing the regulatory quiet period. Bloomberg Beta, the venture capital arm of Bloomberg LP, is also an investor in Slack.
In 2015, just as Slack was beginning to gain traction, Braccia explained why he was making such a big bet on the company. Butterfield has an uncanny ability to recover from failure and then rally people around his next idea, Bracciatolda crowd at the time: “He’s resilient. He’s been knocked down multiple times, and he’s picked himself back up.”
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Trump talks to Saudi crown prince on Iran, oil
WASHINGTON (Reuters) - U.S. President Donald Trump spoke on Friday to Saudi Crown Prince Mohammed bin Salman about Middle East stability and the oil market, the White House said, after tensions with Iran prompted a rise in oil prices.
"The two leaders discussed Saudi Arabia’s critical role in ensuring stability in the Middle East and in the global oil market. They also discussed the threat posed by the Iranian regime’s escalatory behaviour," White House spokesman Hogan Gidley said in a statement.
The phone call took place in the wake of Iran's shooting down of an unmanned U.S. drone in the Gulf region, which prompted Trump to prepare but ultimately hold back from launching a retaliatory attack.
There was no word from the White House statement on whether Trump raised with the crown prince the death last October of Saudi journalist Jamal Khashoggi.
A 100-page report by the U.N. special rapporteur on extrajudicial executions, Agnes Callamard, earlier this week accused Saudi Arabia of a “deliberate, premeditated execution” and said the crown prince should be investigated for it.
(Reporting by Steve Holland; Writing by Doina Chiacu; Editing by David Alexander and James Dalgleish) |
Did You Manage To Avoid IDT's (NYSE:IDT) Painful 53% Share Price Drop?
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It is doubtless a positive to see that theIDT Corporation(NYSE:IDT) share price has gained some 31% in the last three months. But if you look at the last five years the returns have not been good. After all, the share price is down 53% in that time, significantly under-performing the market.
See our latest analysis for IDT
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 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.
IDT became profitable within the last five years. That would generally be considered a positive, so we are surprised to see the share price is down. Other metrics may better explain the share price move.
The revenue decline of 2.1% isn't too bad. But it's quite possible the market had expected better; a closer look at the revenue trends might explain the pessimism.
The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart.
We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Dive deeper into the earnings by checking this interactive graph of IDT'searnings, revenue and cash flow.
It's important to keep in mind that we've been talking about the share price returns, which don't include dividends, while the total shareholder return does. By accounting for the value of dividends paid, the TSR can be seen as a more complete measure of the value a company brings to its shareholders. Over the last 5 years, IDT generated a TSR of -13%, which is, of course, better than the share price return. Even though the company isn't paying dividends at the moment, it has done in the past.
It's good to see that IDT has rewarded shareholders with a total shareholder return of 21% in the last twelve months. Notably the five-year annualised TSR loss of 2.7% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. 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.
IDT 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. |
Breaking Down Toy Story 4's Five Post-Credits Scenes
Warning: This post contains spoilers for Toy Story 4 . Toy Story 4 is getting rave reviews from critics. Sadly, it doesnt begin with the traditional Pixar short that precedes most of the studios films. But fear not, theres plenty of extra content at the end of the movie. The fourth installment in the beloved series boasts not one, but five post-credits scenes. So make sure to stay in your seat after Woodys latest adventure wraps up. The scenes bring closure to story arcs for some of the characters, but they also hint at possible sequels and spinoffs for the Toy Story franchise. Heres what to know about all five post-credit scenes. Post-credits scenes 1-3: Woody and Bo help the carnival prize toys find homes Keegan-Michael Key as Ducky, Jordan Peele as Bunny, Tom Hanks as Woody and Tim Allen as Buzz in Toy Story 4 | Disney/Pixar By the end of Toy Story 4, Woody (Tom Hanks) has decided to leave Bonnies home and live a free-wheeling life as a lost toy with Bo Peep (Annie Potts). In the first three post-credits scenes, Woody, Bo Peep and their newfound friends from the carnival, Ducky (Keegan Michael Key) and Bunny (Jordan Peele), make it their mission to find owners for the lonely toys who have languished on the back walls of impossible-to-win carnival games. They rig one of the shooting games so that every child who plays wins a toy. The teenage carnie who has been preoccupied with his phone the phone finally looks up at his booth to discover that all the toys are gone. In the last scene, Ducky and Bunny fantasize about an extreme version of their plush rush plan of attacking humans, which they shared earlier in the film. In the imaginary sequence, they transform into giant monsters zapping humans with lasers in their eyes. Keanu Reeves Duke Caboom asks the toys whether they can really shoot laser beams, and they say yes. Reeves then utters his signature slogan, Whoa. The series of scenes suggest that another Toy Story film focusing on the adventures of Woody, Bo Peep and the other lost toys could be in the works. Story continues Post-credits scene 4: Forky finds love Tony Hale as the voice of Forky in Toy Story 4 | Disney/Pixar The fourth post-credits scene neatly parallels the beginning of the film. At the start of Toy Story 4 , Bonnie created Forky out of art supplies salvaged from the trash on the first day of kindergarten. In the post-credits scene, we return to Bonnies room after she has returned home from the first day of first grade. Jessie emerges from Bonnies backpack and explains that Bonnie made yet another toy in school. Out comes Knifey, another utensil brought to life as a toy, just like Forky. Forky is immediately starstruck and promises to answer all her questions. Why am I alive? Knifey asks, just like Forky did earlier in the film. Forky immediately falls short of his promise: I dont know, he replies. Could Forky and Knifey share a story in a future film? Post-credits scene 5: Combat Carl finally gets his high-five Tom Hanks as the voice of Woody, Annie Potts as the voice of Bo Peep, and Keanu Reeves as the voice of Duke Caboom in Toy Story 4 | Disney/Pixar After the full credits have rolled, the Pixar logo appears onscreen. But this time, Duke Caboom has replaced the lamp Luxo Jr. He rolls onscreen and over the i in Pixar. Combat Carl, still waiting for the high-five that his comrades and Woody denied him earlier in the movie, is there, still waiting for his greeting. Canadas finest daredevil, thankfully, doesnt leave him hanging, finally offering the snubbed soldier the high-five he deserves. |
7 Telecom Stocks to Set on Speed Dial
Telecom stocks have had a decent year. They are lagging the broaderS&P 500, but it has been a low-teens six-month run. Even if it did nothing from here, that would be a good finish — 13% annually over the long term, not including the dividends that some of these firms provide, would be great for your portfolio.
And one other thing about this sector: It is less volatile than some of the other sectors since most of the companies have total or significant exposure to the U.S. market. “Buying Amercian” has its benefits when you’re in a trade war with the second-largest economy in the world.
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The seven telecom stocks below are getting the most attention now according to my Portfolio Grader. And it’s also very likely that they won’t be sitting still for the second half of this year.
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Source:Pabak Sarkar via Flickr
PDVWireless Inc(NASDAQ:ATEX) just got a new ticker symbol and a new name — more or less — this past Monday. The company is now going to be referred to as Anterix.
This name change goes along with its new focus on the 900 mghz spectrum it bought fromSprint(NYSE:S) in 2014. It is awaiting a ruling from the SEC that would give it the ability to use the spectrum for LTE communications.
Anterix specializes in secure communications for enterprise companies, governments and utilities. The point is to have a network that operates outside of the conventional telecom networks that can provide state of the art bandwidth and its own high level security.
It’s a great niche. And if the FCC gives it the green light, this stock will take off over the next couple quarters. It would also be an attractive takeover play.
Source: Shutterstock
Verizon Communications(NYSE:VZ) is usually at the center of most telecom conversations in the U.S. It is one of the original Ma Bell spinoffs (Bell Atlantic) and continues to be a dominant force.
Its challenges are opposite to the smaller companies featured here. While those are trying to exploit their core competencies to expand their businesses, VZ is more focused on not losing business, especially in the wireless space.
With a market cap of around $240 billion, this is one of the most widely held telecom stocks out there. And its 4.2% dividend yield also makes it a very attractive long-term holding.
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Right now, 5G is the thing, and the big firms will be spending tons of money to develop this technology. WithoutHuaweiequipment, this makes the challenge more difficult, but still important. If anyone can pull it off, it will be VZ stock.
Source: Shutterstock
Otelco(NASDAQ:OTEL) is one of a handful of companies that still run independent phone companies around the country. Based in Alabama, it also operates companies in Maine, Massachusetts, West Virginia, Missouri and Vermont.
It has been doing business for more than 130 years, so it has figured out its markets and defined its role to thrive all that time. There are many places in the U.S. that just don’t have the scale for larger telecoms to come in and compete.
OTEL offers all the modern telecom products that you can find in larger markets, just on a smaller scale. Just as larger telecoms are transitioning to a mobile-focused market from a landline world, the same transition is happening on a smaller level as well.
Withover 31,000 customersacross its service areas, OTEL is a solid player and has paid down its debt, which will help its margins and any financing for potential upgrades. It’s also an attractive takeover target.
Source: Shutterstock
IDT Corp(NYSE:IDT) is in an interesting niche that developed as the Internet Age developed. It provides wholesale global voice traffic over itsVOIP(voice over internet protocol) network and it also offers the unbanked and under-banked immigrant population a way to send money back to their home countries through its BOSS Revolution service. It also offers prepay telecom services (aka, phone cards).
At this point it’s the leading prepay service with a customer base that represents about 70% of the U.S. immigrant population. That also means it still has the remaining 30% to acquire, as well as the new customers who arrive annually.
IDT boasts that it gets a new customer every 8 seconds.
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It’s still a relatively small company, but its dual-purpose reach into a specific demographic makes it a very interesting play in the months and years to come.
Spok Holdings
(NASDAQ:SPOK) is a niche player in another megatrend growth sector. It also has been around since 1965, so it has built a reputation in a relatively conservative industry where reputation, reliability and consistency matter.
SPOK develops, runs and manages communications platforms for healthcare services providers like hospitals. It boasts that thetop 20 adult hospitalsand top 10 children’s hospitals in the country (as rated byU.S. News & World Report) all use Spok communications platforms.
It has the nation’s largest pager network, with more than 100 million messages sent each month. And remember, these are regularly life or death messages, so the systems have to up and running all the time, with near perfect precision.
At this point Spok has over 2,200 hospitals and healthcare systems on its platforms. And the nice thing about its operations is it also has maintenance contracts on its existing systems, which help stabilize its revenue stream. Q1 numbers were strong.
Source: Shutterstock
Iridium Communications(NASDAQ:IRDM) is a great example of the best and worst of companies that were born (and died) during the dotcom boom in the late 1990s.
Basically, Iridium is 141-satellite global communications network that was launched in 1998 by telecom pioneer Motorola (RIP). The concept was to build a global telecom network that could be accessed anywhere in the world — from the middle of the South Pacific to the top of Everest — at any time.
The vision was grand but the technology wasn’t up to the vision. In the initial versions, the phones (now known as sat phones) couldn’t be used well indoors, which diminished their value to regular consumers.
They also soon learned that the phones wouldn’t function until all the satellites were in place, which meant an enormous upfront spend on a now-smaller, specialized market. The original company went under in 6 months.
But now that tech has grown to meet the vision, IRDM is doing well and more and more specialized sectors are interested in the technology, especially the U.S. military.
• 7 Value Stocks to Buy for the Second Half
There is plenty to like here now and it’s a great long-term growth play on the future of telecom, especially the Internet of Things.
Source: Shutterstock
Shenandoah Telecommunications(NASDAQ:SHEN) has been around since 1902, serving rural Virginia, West Virginia, Pennsylvania and Maryland. Its wireless services are operated by Sprint, hasover 1 million customers.
The thing to watch with a long-time telecom like Shentel is the fact that many of its rural operations are now seeing a lot of growth from companies that are relocating outside of larger metropolitan areas.
Because land is cheaper and the population is less dense, “last mile” logistics operations and new companies are taking advantage. That’s bring customers into Shentel’s market.
And that may well be part of the reason that Shentel’s operating income was up 48% in Q1, with a record number of new digital subscribers. It will also be interesting to see what happens if the Sprint-Tmobile(NASDAQ:TMUS) merger happens.
Louis Navellieris a renowned growth investor. He is the editor of four investing newsletters:Growth Investor,Breakthrough Stocks,Accelerated ProfitsandPlatinum Growth. His most popular service, Growth Investor, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool,PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.
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NASA’s Mars 2020 rover just got shiny new feet
A rover without its wheels can’t do much roving at all, so the recent addition of fancy new wheels to the Mars 2020 rover is pretty exciting for NASA and space observers around the world. In a new blog post, NASA shows off some awesome photos of the wheels that were just affixed to the robot in the testing lab. The wheels, which are made out of aluminum, are quite large compared to those of some of NASA’s past rovers, giving us a nice point of comparison to gauge the difference in the overall size of the robot itself. However, as lovely as these new rover shoes look in the lab, they aren’t fit for duty on Mars. Related Stories: NASA just set preliminary dates for its commercial crew launches, with SpaceX in the lead The ring around Uranus has a warm glow SpaceX is just days away from its third Falcon Heavy launch As NASA explains, the wheels that were just added to the Mars 2020 rover won’t actually see duty on the Red Planet at all. They’re engineering models made for testing, and NASA will still need to swap them out for the “flight models” which will make the trip and eventually crawl across the dusty Martian surface. NASA offers some stats that give us an idea of how advances these wheels truly are: Made of aluminum, each of the six wheels (each 20.7 inches, or 52.5 centimeters, in diameter) features 48 grousers, or cleats, machined into its surface to provide excellent traction both in soft sand and on hard rocks. Every wheel has its own motor. The two front and two rear wheels also have individual steering motors that enable the vehicle to turn a full 360 degrees in place. The Mars 2020 mission won’t lift off until July of next year, and won’t actually arrive at Mars until early 2021. Still, the mission team is already seeing the fruits of its labor pay off in the impressive machine. “Now that’s a Mars rover,” David Gruel of NASA’s Jet Propulsion Laboratory said in a statement. “With the suspension on, not only does it look like a rover, but we have almost all our big-ticket items for integration in our rearview mirror — if our rover had one.” Story continues BGR Top Deals: Meet the $80 smartwatch with 30-day battery life that’s converting Apple Watch owners left and right There’s a power outlet wall plate with a built-in LED nightlight, and it’s brilliant Trending Right Now: The Nintendo Switch Mini leak might actually be real Forget the iPhone 11 and Pixel 4, the smartphone display we want is coming next week The credits scenes after ‘Spider-Man: Far From Home’ will blow your mind See the original version of this article on BGR.com |
Introducing I.D. Systems (NASDAQ:IDSY), A Stock That Climbed 18% In The Last Three Years
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Low-cost index funds make it easy to achieve average market returns. But across the board there are plenty of stocks that underperform the market. For example, theI.D. Systems, Inc.(NASDAQ:IDSY) share price return of 18% over three years lags the market return in the same period. Zooming in, the stock is actually down 14% in the last year.
See our latest analysis for I.D. Systems
Given that I.D. Systems didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last 3 years I.D. Systems saw its revenue grow at 14% per year. That's pretty nice growth. The annual gain of 5.8% over three years is better than nothing, but hardly impresses. So it's possible that expectations were elevated in the past, muting returns over three years. Of course, if the company can tread the path to profitability, then the current price might be too pessimistic.
The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart.
It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. If you are thinking of buying or selling I.D. Systems stock, you should check out thisfreereport showing analyst profit forecasts.
While the broader market gained around 6.4% in the last year, I.D. Systems shareholders lost 14%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 1.6% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. 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.
I.D. Systems 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. |
3 Stocks That Are Absurdly Cheap Right Now
The stock market has surged through June, as theS&P 500is again flirting with all-time highs. Dovish signals from the Federal Reserve, signs of a detente in the U.S.-China trade war, and President Trump's retreat from tariffs on Mexico have all helped the market recoup last month's losses.
With stock prices as high as ever, you may be wondering if there are still any bargains to be had on the market today. Luckily, our contributors have found three stocks that look absurdly cheap right now. Here's why they recommendSteel Dynamics(NASDAQ: STLD),Alliance Resource Partners(NASDAQ: ARLP), andHawaiian Holdings(NASDAQ: HA).
Image source: Getty Images.
Jason Hall(Steel Dynamics):Steelmaking remains a stubbornly hard industry to invest in (or at least profitably). Over the past couple of years, the combination of lower corporate taxes, a relatively strong U.S. economy, and the implementation of tariffs to push imported steel (much of which was being subsidized by foreign countries) out of the market was expected to result in a resurgence in American steel.
And to some extent it has been resurgent, with profits up solidly over the past few years:
STLD EPS Diluted (TTM)data byYCharts.
However, even with profits up, investors have been pretty negative on the industry more recently. Here's how some of Steel Dynamics' peers' stocks have fared since the beginning of 2018:
STLDdata byYCharts.
So what gives? In short, there are concerns that demand is weakening, and the temporary boost in steel prices following last year's tariffs hasn't stuck. But I think the recent sell-off has created an opportunity for investors to consider one of the few steelmakers worth owning: Steel Dynamics.
At recent prices, it trades for less than 5.6 times trailing earnings and 4.9 times cash flows, both of which are about as cheap as it's been over the past decade. The biggest reason why it's that cheap is because the industry isn't expected to earn nearly as much money in 2019 as last year, as well as fears that steel demand is nearing a cyclical peak.
So there's some risk that the cycle could be peaking, and Steel Dynamics' earnings could weaken more than expected over the next year or so. However, I think the long-term prospects for the company to continue taking market share, as well as the structural advantages of its mini mill-based operations to adapt to changes in steel demand, should make it a long-term market beater.
Sean Williams(Alliance Resource Partners):You'd struggle to find a cheaper stock right now than Alliance Resource Partners, which has a forward price-to-earnings ratio of less than 7.
Why's it so cheap, you ask? Well, for starters, blame guilt by association. Alliance Resource is a coal producer, and coal has a pretty bad rap on Wall Street. Over the past decade, many of the biggest names in coal declared bankruptcy under a mountain of debt and crumbling coal prices.
There have also been recent concerns aboutcoal exports to overseas markets. The rising tensions between the U.S. and China over trade, coupled with lower natural gas prices in Europe (which encourage utilities to switch to coal-fired power plants) and aggressive pricing by competitors, has made export life difficult for Alliance Resource Partners.
But here's the thing: This company is nothing like its many bankrupted peers. Alliance Resource's management team has historically run the company very conservatively, which is fully visible on its balance sheet. Alliance Resource has a reasonable $547 million in net debt and a total debt-to-equity of 42%. For added context, the company's operating cash flow over the trailing 12-month period is higher than its total debt, suggesting that its debt isn't a big concern.
It's secret to success and staying profitable, even when coal prices have declined significantly, is twofold. First, Alliance Resourcenegotiates volume and price commitments well in advance. It's not uncommon for the company to enter a given year with 80% to 90% of its production spoken for, as well as 50% of its production in the following year. By locking in output and price commitments ahead of time, Alliance Resource avoids the wild fluctuations tied to the wholesale coal market.
And secondly, there's the export market. Although exports are bound to see their ups and downs, the long-term outlook for international coal is promising. Having exported only a small fraction of its annual production in 2016, Alliance Resource is now selling about a quarter of its coal in overseas markets. There are plenty of opportunities in emerging markets for coal, which is perfect for Alliance Resource Partners' long-run outlook.
And just in case you like icing on your cake, Alliance Resourcehas a dividend yield of 12.4%-- and that's not a typo. For all of these reasons, Alliance Resource Partners is the absurdly cheap stock you should consider buying.
Jeremy Bowman(Hawaiian Holdings):Airlines have long been an unloved industry, but after a wave of consolidation in recent years, low fuel prices, and a strong economy, the sector looks to be on stronger footing than ever before.
The market remains skeptical of airlines, however, setting up some appealing options for value-seeking investors, and none look better than Hawaiian Holdings, the parent of Hawaiian Airlines.
The niche carrier trades at a trailing P/E ratio of just 5.2, or 6.7 based on this year's expected earnings. These are estimated to fall, since competitors likeSouthwestandAlaskaAirlineshave stepped up service to Hawaii, forcing Hawaiianto lower prices. However, Hawaiian isn't likely to cede its leadership of service to the islands, as it offers direct service from 13 mainland U.S. cities and several destinations in Asia and Australia. The company also has a commanding position in routes within the Hawaiian islands, with 80% market share, and that dominance is unlikely to be challenged by the major domestic carriers. Those routes generate 22% of its revenue but likely a higher percentage, as they are short-haul flights that require relatively little fuel.
In a sign of rising demand, the number of planes the company owns has grown from 37 to 49 over the last two years, and it has orders for six new planes in 2019.
Hawaii, meanwhile, is a unique destination in the world and should appeal to West Coasters flush with cash as the tech industry booms and to millennials who have shown a preference for spending onexperiences over things.
At a P/E of 6.7, Hawaiian looks like a bargain, and the stock should recover some of its recent losses, since it's poised to deliver steady growth over the coming years in spite of increasing competition in its market.
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Jason Hallowns shares of Nucor.Jeremy Bowmanhas no position in any of the stocks mentioned.Sean Williamshas no position in any of the stocks mentioned. The Motley Fool recommends Hawaiian Holdings and Nucor. The Motley Fool has adisclosure policy. |
Is It Too Late To Consider Buying I.D. Systems, Inc. (NASDAQ:IDSY)?
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I.D. Systems, Inc. (NASDAQ:IDSY), which is in the electronic business, and is based in United States, saw a decent share price growth in the teens level on the NASDAQGM over the last few months. As a small cap stock, which tends to lack high analyst coverage, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Today I will analyse the most recent data on I.D. Systems’s outlook and valuation to see if the opportunity still exists.
View our latest analysis for I.D. Systems
Great news for investors – I.D. Systems is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $10.72, but it is currently trading at US$5.63 on the share market, meaning that there is still an opportunity to buy now. I.D. Systems’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
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. In the upcoming year, I.D. Systems’s earnings are expected to increase by 63%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
Are you a shareholder?Since IDSY is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor?If you’ve been keeping an eye on IDSY for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy IDSY. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on I.D. Systems. You can find everything you need to know about I.D. Systems inthe latest infographic research report. If you are no longer interested in I.D. Systems, 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. |
PG&E to float $31 billion restructuring plan: Bloomberg
(Reuters) - Power producer PG&E Corp will propose a $31 billion bankruptcy restructuring plan that will include two funds worth a total of $34 billion to cover past and future wildfire claims, Bloomberg reported https://twitter.com/scottdeveau/status/1142117995680030720 on Friday.
Asked by Reuters about the plan, a PG&E spokesman said: "We are looking at all options when it comes to working with the governor and legislature, and are committed to resolving wildfire victims’ claims fairly and expeditiously."
Shares of the company, which is currently hosting its annual general meeting of shareholders, were down nearly 1 percent in a choppy reaction to the report which saw the stock both rise and fall.
On Tuesday, San Francisco-based PG&E said that as part of its reorganization it would pay $1 billion to more than a dozen local governments in California affected by wildfires in recent years.
The Bloomberg report said there would be two funds, one of $14 billion to cover past claims and one of $20 billion to cover future claims, under the plan which it said was expected to be filed formally in August.
PG&E sought Chapter 11 bankruptcy protection in January after facing liabilities of more than $30 billion in the wake of Camp Fire, California's deadliest and most destructive wildfire in recent times.
The Camp Fire killed more than 85 people, destroyed over 14,600 houses, mobile homes and other housing units, according to California's Department of Finance.
(Reporting by Debroop Roy in Bengaluru; editing by Patrick Graham) |
Community furious after racist comments about Muslim sixth-graders' class photo surface online
Community members spoke out on Facebook after reading racist comments about young Muslim students. (Credit: Facebook) Community members are furious after people left racist comments about Muslim people on photos of a class of sixth-graders. A St. Cloud, Minn. resident shared screenshots of the post and responses yesterday, pointing out that they were made by her “own neighbors,” who need to “understand the gravity of their words.” She added that people needed to take action and mobilize by contacting the commenters’ workplaces and share the post to protect kids from “being subjected to racial predators.” The original post, by someone named Gary Kopietz, of the photos containing the racist comments has now been removed. The resident posted two screenshots of the comments, some of which called the students “illegal.” “They’re multiplying everywhere and we don’t know when they will attack us again. It only took a few men and 4 Planes to kill 3000 American’s!! When are we going to pack up all these Illegal’s and send them back where they came from?” one comment read. “It’s time for real American patriots to walk up to Washington and start dragging out every illegal free rider support out of office...by the f****** neck!” another person wrote. Others made remarks about some of the students’ hijabs. “Women! Rip those hijabs off! You’re now living in a FREE country! Liberate yourselves from Islamic bondage!” a woman commented. “I don’t see not one girl without that thing on her head,” another added. Community members were not having it, and called out the racist comments, pointing out that they’re problematic and that no one deserves so much hatred. “Why do they keep saying illegals?? Do they think every non white person in America is an illegal?” one person questioned. Another responded with “Apparently, you're only legal if you're a white, straight, Christian.” It is unclear whether Kopietz, the person behind the original offensive post, is affiliated with the St. Cloud Area school district. Fosia Qalif and St. Cloud Area School District 742 did not immediately respond to Yahoo Lifestyle’s request for comment. Story continues Read more from Yahoo Lifestyle: New York City subway riders belt out hit Backstreet Boys song in impromptu singalong Church defends homophobic sign: LGBTQ community is ‘headed for destruction’ High school students bring senior ball to hospital for classmate battling cancer Follow us on Instagram , Facebook , and Twitter for nonstop inspiration delivered fresh to your feed, every day. |
CarMax Sees Used-Car Sales Soar
Many investors seeCarMax(NYSE: KMX)not only as an independent business but also as a gauge of the overall strength of the auto industry. In particular, the company's emphasis on used cars points to the health of the large segment of the population who choose not to spend up for new vehicles, and that often offers some insight into the state of the consumer economy more broadly. At the same time, the way CarMax has adapted tochanging customer attitudesabout how best to find and purchase vehicles has a lot to say about what the industry has had to do strategically to keep buyers coming in the door -- or clicking to buy from home.
Coming into Friday's fiscal first-quarter report,CarMax investors had high hopesthat the auto dealer would be able to accelerate its growth as the key spring season began. CarMax's numbers were quite encouraging, having bounced back from more sluggish performance recently and signaling continued strength for the industry.
Image source: CarMax.
CarMax's fiscal first-quarter results showed significant growth. Revenue climbed 12% to $5.37 billion, more than doubling its pace of growth from theprevious quarterand coming in well ahead of the 7% growth rate that most of those following the stock were expecting. Net income picked up 12% to $266.7 million, and that produced earnings of $1.59 per share, comparing favorably to the $1.47 per share consensus forecast among investors.
The numbers that CarMax put up on the sales front showed that the industry recovered in a major way during the early spring months. Used unit sales in comparable stores were higher by 9.5%, helping to power a 13% rise in total used car units sold. That big boost made sense in light of the comments that CarMax had made in the previous quarter, having said that delays in tax refunds deferred some purchases that otherwise would have happened before the fiscal first quarter began. Yet the auto retailer also pointed to efforts aimed at improving the customer shopping experience, including its omnichannel rollout in limited markets.
CarMax also saw good numbers elsewhere. Wholesale vehicle sales were up 6.6%, as the company bought more of the customer vehicles it appraised. Other sales and revenues were also higher by about 6%, with a double-digit percentage increase in extended protection plan revenue benefiting from favorable conditions throughout the business.
Pricing figures were relatively stable. Used vehicle average selling prices eased lower by 0.1% to $20,050, while selling prices per wholesale vehicle eased higher by 0.2% to $5,213. Gross profit per vehicle was unchanged for used cars but rose about 3% on the wholesale side of the business.
CEO Bill Nash was happy with how the company had done. "CarMax had an outstanding first quarter," Nash said, and he once again pointed to the rollout of its omnichannel sales capacity in the Atlanta market as a driver of growth.
CarMax is optimistic that it's moving in the right direction. Already in early June, the retailer has extended its omnichannel capabilities to most of its markets in Florida, and it opened a customer experience center in Atlanta. Nash remains convinced that "this is truly an unmatched experience that we are confident is the future of car buying."
Investors also kept seeing some of the same tactics that CarMax's management team has used to spur growth. On one hand, expansion of the retailer network continued, with three new stores, two in Texas and one in Memphis. On the other hand, CarMax kept buying back its stock, with $204.8 million in repurchases to buy about 3 million shares.
CarMax shareholders responded positively to the news, and the stock was higher by 5% at midday following the announcement. Changing trends in the auto industry will keep forcing the company to respond, but if it can do as well as it has done in the past, then CarMax should remain a key player in the auto dealer industry for years to come.
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Dan Caplingerhas no position in any of the stocks mentioned. The Motley Fool recommends CarMax. The Motley Fool has adisclosure policy. |
Are Investors Undervaluing I.D. Systems, Inc. (NASDAQ:IDSY) By 47%?
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Does the June share price for I.D. Systems, Inc. (NASDAQ:IDSY) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to today's value. I will use the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model.
Check out our latest analysis for I.D. Systems
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. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value:
[{"": "Levered FCF ($, Millions)", "2019": "$0.59", "2020": "$2.86", "2021": "$4.84", "2022": "$7.22", "2023": "$9.77", "2024": "$12.26", "2025": "$14.55", "2026": "$16.57", "2027": "$18.31", "2028": "$19.81"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x1", "2020": "Analyst x1", "2021": "Est @ 69.1%", "2022": "Est @ 49.19%", "2023": "Est @ 35.25%", "2024": "Est @ 25.49%", "2025": "Est @ 18.67%", "2026": "Est @ 13.88%", "2027": "Est @ 10.54%", "2028": "Est @ 8.2%"}, {"": "Present Value ($, Millions) Discounted @ 9.17%", "2019": "$0.54", "2020": "$2.40", "2021": "$3.72", "2022": "$5.08", "2023": "$6.30", "2024": "$7.24", "2025": "$7.87", "2026": "$8.21", "2027": "$8.31", "2028": "$8.24"}]
Present Value of 10-year Cash Flow (PVCF)= $57.92m
"Est" = FCF growth rate estimated by Simply Wall St
We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. 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 9.2%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$20m × (1 + 2.7%) ÷ (9.2% – 2.7%) = US$316m
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$316m ÷ ( 1 + 9.2%)10= $131.40m
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 $189.32m. To get the intrinsic value per share, we divide this by the total number of shares outstanding.This results in an intrinsic value estimate of $10.72. Relative to the current share price of $5.63, the company appears quite undervalued at a 47% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.
The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the 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 I.D. Systems 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 9.2%, which is based on a levered beta of 1.081. 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 I.D. Systems, There are three pertinent aspects you should look at:
1. Financial Health: Does IDSY 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 IDSY'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 IDSY? 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. |
3 Reasons Slack Valuation Soared on Its First Day of Trading
Shares ofSlack Technologies(NYSE: WORK)stormed out of the gate on its market debut on Thursday, opening at $38.50, far higher than the reference price of $26 set for it by the New York Stock Exchange the day before. The company took an unconventional path to public trading, opting for a direct public offering (DPO) or direct listing rather than the more-often-choseninitial public offering(IPO).
The stock climbed as high as $41.85 on its opening day before closing at $38.62 and ending the day with gains of 48.5% from the NYSE reference price (but just 0.3% from its opening trade price). Thursday's closing price valued the company at $19.5 billion, nearly three times its most recent valuation of $7.1 billion as a private company.
So why did Slack jump on its market debut? Let's take a look at three possible reasons.
Slack CTO Cal Henderson, CFO Allen Shim, and CEO Stewart Butterfield in front of the New York Stock Exchange on Slack's debut. Image source: Slack.
Most companies choose the traditional IPO process to go public, giving them the opportunity to sell new shares to the public and raise capital to fund the next stage of the company's growth. Slack chose the DPO because it didn't need to raise funds, as the work collaboration and messaging company has been financing its growth from its current operations. The company currently has about $793 million on its balance sheet, according to recent regulatory filings.
Choosing the DPO path to public trading also saves millions in listing fees and allows companyinsiders and early investorsto sell shares without having to endure the 90- to 180-daylock-up periodthat typically accompanies an IPO.
While Slack is not yet profitable, the company is growing quickly, and its financial results show enormous potential. Last week, the company reported the results of its fiscal 2020 first quarter (which ended April 30), which gave investors a boost in confidence.
The company generated revenue of $134.8 million, an increase of 67% year over year. Slack'sGAAPoperating losses came in at $38.4 million or 28% of total revenue, compared to a loss of $26.3 million or 33% of revenue in the prior-year quarter. The bottom-line result was a net loss of $31.8 million, about 28% worse than the $24.9 million loss in the year-ago quarter. This illustrates that the company is not yet profitable but continues to fund its growth from current operations.
Unlike some recent IPOs, Slack's rapid revenue growth and manageable losses show that if the company continues on its current trajectory, it could soon produce a profit. Other recent IPOs, like ride-hailing rivalsLyftandUber, arelosing billions of dollarsevery yearwith no end in sight. Prices for both stocks plummeted soon after their market debut, though Uber has since regained some ground.
This illustrates that investors are getting more cautious about new issues that aren't generating a profit and are hungry to invest in a newly minted company that has a chance of moving beyond mounting losses with a clear path to income generation.
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Danny Venahas no position in any of the stocks mentioned. The Motley Fool recommends Uber Technologies. The Motley Fool has adisclosure policy. |
When Should You Buy Medifast, Inc. (NYSE:MED)?
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Medifast, Inc. (NYSE:MED), which is in the personal products business, and is based in United States, saw significant share price movement during recent months on the NYSE, rising to highs of $157.08 and falling to the lows of $125.64. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Medifast's current trading price of $129.2 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Medifast’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for Medifast
Good news, investors! Medifast is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $241.5, but it is currently trading at US$129 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Medifast’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. In the upcoming year, Medifast’s earnings are expected to increase by 37%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
Are you a shareholder?Since MED is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor?If you’ve been keeping an eye on MED for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MED. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Medifast. You can find everything you need to know about Medifast inthe latest infographic research report. If you are no longer interested in Medifast, 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. |
Iran Downs U.S. Drone: Sector ETFs & Stocks to Gain
Geopolitical tension between Iran and the United States flared up lately after the United States and Iranian officials said the latter downed a U.S. military drone near the Strait of Hormuz. In any case, both countries have been at loggerheads for about a year.
Last August, the United States is putting into effect sanctions against Iran, targeting the Islamic Republic’s currency and key industries. These sanctions are part of President Donald Trump’s initiative to put an embargo on Iran’s missile and nuclear programs, and diminish its influence in the Middle East.
Then in November, the United States formally levied the second part of the sanctions that banned import of Iranian energy. However, Washington had also offered temporary waivers to eight key buyers, China, India, Greece, Italy, Taiwan, Japan, Turkey and South Korea at that time, allowing them to continue to import oil from Iran. But, in April 2019, Washington announced it won’t renew waivers previously granted on Iran oil import sanctions (read: US Tightens Sanctions on Iran: Country ETFs to Gain/Suffer).
Investors should note that Iran has been accused of several oil tanker attacks near the Strait of Hormuz as well as stabbings in oil facilities and an airport in Saudi Arabi in recent months. The repeated assault near the Strait of Hormuz, which makes up about 30% of the world’s seaborne oil traffic, means a lot to the oil industry.
Sector ETFs & Stocks to Gain
Energy
Oil prices have been steady these days thanks to a host of factors like repeated assaults nearthe Strait of Hormuz, a subdued greenback in the wake of dovish Fed hints and the likely extension of the OPEC output cut deal. No wonder,United States Oil Fund LP (USO)rose 4.6% on Jun 20.
iShares U.S. Energy ETF (IYE)has a Zacks ETF Rank #3 (Hold) with a High-risk outlook. The stock gained 2.3% on Jun 20.
Chevron CorporationCVX is one of the world's leading integrated energy companies. It has a Zacks Rank #2. The stock gained more than 1.1% on Jun 20.
Gold Miner
Flare-up in geopolitical risks always benefits the safe-haven asset gold. Added to this, the metal has benefited out of a dovish Fed in recent trading sessions.SPDR Gold Shares (GLD)was up 2.5% on Jun 20. Gold mining stocks normally act as a leveraged play of the underlying asset (read: ETF Winners & Losers Post Fed Meet).
VanEck Vectors Gold Miners ETF (GDX, which tracks the overall performance of companies involved in the gold mining industry,gained 4.4%on Jun 20.
AngloGold Ashanti LimitedAU is the largest gold producer at 7 million ounces a year, with reserves of 126 m oz. The stock has a Zacks Rank #1 (Strong Buy) and advanced 6.9% on Jun 20.
Defense
Iran’s downing of the U.S. drone has charged up defense stocks in anticipation of a harsh conflict.
iShares U.S. Aerospace & Defense ETF (ITA, which tracks the performance of the aerospace and defense sector of the U.S. equity market, added 1.8%. The fund also has a Zacks Rank #2.
Lockheed Martin CorporationLMT is a global security and aerospace company principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The stock also has a Zacks Rank #2 and added about 2% on Jun 20.
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Click to get this free reportLockheed Martin Corporation (LMT) : Free Stock Analysis ReportiShares U.S. Aerospace & Defense ETF (ITA): ETF Research ReportsiShares U.S. Energy ETF (IYE): ETF Research ReportsUS Commodity Funds United States Oil Fund (USO): ETF Research ReportsVanEck Vectors Gold Miners ETF (GDX): ETF Research ReportsSPDR Gold Shares (GLD): ETF Research ReportsAngloGold Ashanti Limited (AU) : Free Stock Analysis ReportChevron Corporation (CVX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report |
Even More States Pile On to Oppose T-Mobile and Sprint Merger
Earlier this month, 10 state attorneys generalfiled a lawsuitseeking to blockT-Mobile's(NASDAQ: TMUS)proposed megamerger with smaller rivalSprint(NYSE: S), a $26.5 billion deal announced early last year. The merger was always destined to face strong pushback, as reducing the number of national wireless carriers from four to three has considerable negative implications for competition.
More states have just piled on to oppose the merger.
T-Mobile CEO John Legere and Sprint Executive Chairman Marcelo Claure. Image source: T-Mobile.
New York Attorney General Letitia James announced today that four additional states have joined the effort to block the deal: Hawaii, Massachusetts, Nevada, and Minnesota. The original complaint estimated that the deal could end up costing T-Mobile and Sprint customers an extra $4.5 billion per year.
"The merger of T-Mobile and Sprint would stifle competition, cut jobs, and harm vulnerable consumers from across the country, so unity among the states will be key in defending our citizens against this power-hungry corporate union," James said in a statement. "We welcome the support from these four additional states, which should serve as a reminder that, all throughout the nation, we have much to lose if we do not take action to protect our people from this megamerger."
Massachusetts Attorney General Maura Healey said that after a yearlong investigation, her office concluded that the deal would "give the new company the power to raise prices, significantly reduce competition for customers, lower quality, and cost thousands of retail workers their jobs." Minnesota Attorney General Keith Ellison and Nevada Attorney General Aaron Ford echoed those sentiments, saying that it is their job to protect consumers in their respective states.
The Department of Justice's antitrust division still has yet to make a formal call on the proposed merger. T-Mobile and Sprint are reportedly working with the DOJ to make concessions to secure approval.
The companies may potentiallydivest subsidiaries and wireless spectrumtoDISH Network, and if those talks fall through, then T-Mobile is ready to auction off Sprint's Boost Mobile subsidiary,Reutersreported this week. T-Mobile and Sprint had previously agreed to divest Boost Mobile in order toget the FCC's blessing, since T-Mobile already has the largest prepaid customer base in the U.S.
The states don't think the Boost Mobile divestiture would be sufficient to address anticompetitive concerns, either. "If Boost Mobile were divested and operated as a [mobile virtual network operator] on the New T-Mobile network, the divestiture would not offset or limit the increase in concentration that will result from the Merger," the prosecutors wrote. The same would be true even if Boost Mobile were to operate on one of the other national networks, the attorneys general argued.
DOJ's pending decision is a bit of a curve ball that could affect the states' suit. The judge overseeing the case, U.S. District Judge Victor Marrero, said that call could impact the case, according toReuters. "The elephant not in the room is the Justice Department," Marrero said. "Either way, it is likely to affect what is on the table."
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Evan Niu, CFAhas no position in any of the stocks mentioned. The Motley Fool recommends T-Mobile US. The Motley Fool has adisclosure policy. |
Mike Novogratz’s Galaxy Digital to Launch Crypto Options Contracts Trading: Report
Mike Novogratz’scryptoinvestmentbankGalaxy Digital is expanding its services to offer crypto options contractstrading, industry media outletThe Blockreports on June 21.
According to the report, Galaxy Digital’s new initiative is made in response to increasing demand from institutional investors in order to hedge the highvolatilitythat is a calling card of crypto assets.
Bitcoin (BTC) options are a type of cryptoderivativethat are awide-spreadmethod of profiting from a highly volatile market by strategically hedging risks such as reducing portfolio risks, and in turn, losses from trading. Similar to traditional finance, there are two types of crypto options that can be bought — call options and put options. Respectively, these translate to right to purchase and right to sell the holding at the determined price.
Yoshi Nakamura, global head of business development at Galaxy Digital, reportedly claimed that crypto-related businesses such asminingfirms andlendershave been expressing more interest to crypto options recently. However, the executive declined to reveal specific numbers about growth of the business, adding that Galaxy’s crypto options business is “relatively new.”
According to an executive from crypto investment firm BlockTower Capital, the demand for crypto options has been increasing indeed, which is primarily driven by non-crypto firms.
According to the report, Galaxy is not the only firm in offering crypto options, with the service being reportedly supported by over-the-counter (OTC) trading operators such as Akuna Capital andCumberland, theChicago-based cryptocurrency trading unit of DRW Holdings LLC.
Asreportedearlier today, high volatility is the biggest reason people give up on cryptocurrencies, accounting for 31% of answers from those polled as to why they stopped using crypto.
Meanwhile, BTC futures, which is another type of crypto derivatives, have brieflybroken$10,000 mark today on the Chicago Mercantile Exchange’s (CME).
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FATF retains ‘travel rule’ in new guidance, compelling exchanges to share customer data
The Financial Action Task Force (FATF) has released its latest standards combating money laundering and terrorism, and it includes the much-debated “travel rule,” requiring exchanges to collect and transfer customer information during transactions.
In its February proposal, FATF said virtual asset providers (VASPs) may be required to obtain, hold and transmit both originator and beneficiary information. Now, the finalized guidance requires exchanges to gather and transfer originator name, originator account number (the VA wallet), originator’s location information, beneficiary name and beneficiary account number (their VA wallet).
Ahead of the guidance, exchange leaders discussed the feasibility of these requirements, with groups like Chainalysis and Global Digital Finance sending letters with feedback. Adhering to these guidelines globally would require unprecedented collaboration and could be costly to implement,according to leadersat Circle, Coinbase and Chainalysis.
Michael Harris, Director Financial Crime Compliance and Reputational Risk at LexisNexis Risk Solutions, said even with the finalized guidance, questions remain.
“With all regulation, the devil will be in the detail, and whilst the guidance being published is very much welcomed, there are many unresolved issues,” Harris said. “By its very nature, blockchain technology makes it difficult to identify the parties involved in payments made via these platforms, and it’s this lack of transparency which is in direct conflict with the successful monitoring of illicit activity.”
While the guidance isn’t binding, it could have widespread influence since nations that don’t comply could isolate themselves from their peers; the G20 nations already affirming their intention to hold to FATF guidelines. |
FDA declines to approve Daiichi Sankyo's blood cancer treatment
(Reuters) - Japan's Daiichi Sankyo Co said on Friday the U.S. Food and Drug Administration has declined to approve its drug quizartinib as a treatment for adults with a type of blood cancer.
The decision follows an advisory committee meeting, held in May, where independent advisers to the U.S. regulator voted 8-3 against the drug's approval to treat acute myeloid leukemia patients with a specific genetic mutation called FLT3.
Several experts in the committee concurred that the data presented by the company was not strong enough to support an approval and called for further study.
Daiichi said it would evaluate FDA's complete response letter as well as determine next steps in the United States.
Quizartinib has only been approved for use in Japan.
Daiichi has been focusing on building its cancer drug franchise and is targeting a whopping 500 billion yen ($4.65 billion) in annual sales from the business in fiscal 2025 from 20 billion yen in 2017.
A second drug from the company, pexidartinib, that aims to treat a type of rare, non-cancerous tumor that usually affects joints and limbs is still under FDA review.
($1 = 107.4800 yen)
(Reporting by Tamara Mathias in Bengaluru; Editing by Shinjini Ganguli) |
Is Now An Opportune Moment To Examine Medifast, Inc. (NYSE:MED)?
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Medifast, Inc. (NYSE:MED), which is in the personal products business, and is based in United States, received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $157.08 at one point, and dropping to the lows of $125.64. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Medifast's current trading price of $129.2 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Medifast’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for Medifast
Good news, investors! Medifast is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $241.5, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, Medifast’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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 grow by 37% over the next year, the near-term future seems bright for Medifast. 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?Since MED is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor?If you’ve been keeping an eye on MED for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MED. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Medifast. You can find everything you need to know about Medifast inthe latest infographic research report. If you are no longer interested in Medifast, 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. |
Could IDACORP, Inc. (NYSE:IDA) Have The Makings Of Another Dividend Aristocrat?
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Could IDACORP, Inc. (NYSE:IDA) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. Unfortunately, it's common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments.
A slim 2.4% yield is hard to get excited about, but the long payment history is respectable. At the right price, or with strong growth opportunities, IDACORP could have potential. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this.
Click the interactive chart for our full dividend analysis
Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. In the last year, IDACORP paid out 53% of its profit as dividends. A payout ratio above 50% generally implies a business is reaching maturity, although it is still possible to reinvest in the business or increase the dividend over time.
We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. The company paid out 66% of its free cash flow, which is not bad per se, but does start to limit the amount of cash IDACORP has available to meet other needs. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.
As IDACORP has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A quick way to check a company's financial situation uses these two ratios: net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and net interest cover. Net debt to EBITDA measures a company's total debt load relative to its earnings (lower = less debt), while net interest cover measures the company's ability to pay the interest on its debt (higher = greater ability to pay interest costs). With net debt of above 3x EBITDA, investors are starting to take on a meaningful amount of risk, should the business enter a downturn.
We calculated its interest cover by measuring its earnings before interest and tax (EBIT), and dividing this by the company's net interest expense. Interest cover of less than 5x its interest expense is starting to become a concern for IDACORP, and be aware that lenders may place additional restrictions on the company as well.
Remember, you can always get a snapshot of IDACORP'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 IDACORP'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$1.20 in 2009, compared to US$2.52 last year. Dividends per share have grown at approximately 7.7% per year over this time.
Companies like this, growing their dividend at a decent rate, can be very valuable over the long term, if the rate of growth can be maintained.
While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. IDACORP has grown its earnings per share at 4.9% per annum over the past five years. Growth of 4.9% is relatively anaemic growth, which we wonder about. If the company is struggling to grow, perhaps that's why it elects to pay out more than half of its earnings to shareholders.
To summarise, shareholders should always check that IDACORP's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. First, we think IDACORP is paying out an acceptable percentage of its cashflow and profit. Earnings growth has been limited, but we like that the dividend payments have been fairly consistent. In sum, we find it hard to get excited about IDACORP from a dividend perspective. It's not that we think it's a bad business; just that there are other companies that perform better on these criteria.
Are management backing themselves to deliver performance? Check their shareholdings in IDACORP inour latest insider ownership analysis.
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. |
Justices: Proof needed that person knew he couldn't have gun
WASHINGTON (AP) The Supreme Court says prosecutors must prove that people charged with violating federal gun laws knew they were not allowed to have a weapon. The government says the decision could affect thousands of prosecutions of convicted criminals who are barred from having a firearm. The court ruled 7-2 Friday in the case of a foreign student from the United Arab Emirates who took target practice at a Florida shooting range, even though he had been dismissed from the Florida Institute of Technology and was in the United States illegally. He was prosecuted under a law that bars people who are in the country illegally from having guns. Prosecutors never proved that the student, Hamid Rehaif, knew he couldn't have a gun, and lower courts ruled they didn't have to. The same law is also an important tool to keep guns away from convicted criminals. There were more than 6,000 convictions under the law during the government's 2017 fiscal year, according to the U.S. Sentencing Commission. Justice Stephen Breyer wrote in his majority opinion that the law at issue requires prosecutors to show both that the person had a gun and knew he shouldn't. Otherwise, Breyer said, the law could ensnare someone "brought into the United States unlawfully as a small child and was therefore unaware of his unlawful status." Justice Samuel Alito wrote in a dissent that was joined by Justice Clarence Thomas that the decision "opens the gates to a flood of litigation that is sure to burden the lower courts." The gun violence prevention group Everytown for Gun Safety had joined the Trump administration in urging the court to reject Rehaif's arguments. "We are concerned today's ruling will make it harder for law enforcement to impose accountability when people keep or acquire guns they're legally barred from possessing, including due to felony and domestic violence convictions," said Eric Tirschwell, Everytown's litigation director. Rehaif was sentenced to 18 months in prison. Friday's decision may not be the last word in his case. Lower courts will take a new look at its details, including the school's telling him his student visa would no longer be valid unless he transferred to another school. Prosecutors say Rehaif ignored the warning and instead spent months at a hotel in Melbourne, Florida, never re-enrolling in school. |
4 more states back lawsuit to block T-Mobile-Sprint merger as trial looms
Four more U.S. states are throwing their weight behind a federal lawsuit aiming to block a mega-merger between T-Mobile (TMUS) and Sprint (S), respectively the third and fourth-largest national wireless carriers.
Hawaii, Massachusetts, Minnesota, and Nevada will join nine other states and the District of Columbia, an attorney on behalf of the state of New York, told Judge Vincent Marrero on Friday during a pretrial hearing in Manhattan.
In a lawsuit filed last week, the states argue that if permitted to merge, the consolidated company would create a monopoly that violates federal antitrust law.
“Competition has enabled mobile wireless telecommunications services to become vital to the everyday lives of all the people by driving dramatic improvements in quality and reductions in prices,” the complaint states. “The merger will negatively impact all retail mobile wireless telecommunications service subscribers but will be particularly harmful to prepaid subscribers.”
For their part, Sprint and T-Mobile argue that a combined company would help the U.S. broaden its 5G wireless network. Friday’s hearing came as Sprint and T-Mobile await decisions from the Department of Justice and Federal Communications Commission, which have not officially stated whether they endorse the proposed deal.
“I understand it is still under consideration,” Judge Marrero said about the Justice Department’s pending determination, which, absent the lawsuit, would control the fate of the deal.
Marrero added that the department may or may not take a position on the case and inquired with both parties whether they believed the department would seek to be added as a party to the lawsuit.
“The Justice Department is very unlikely to intervene in this case,” George Cary, an attorney for T-Mobile and its parent companyDeutsche Telekom, said. Carey also explained that any decision from the Justice Department concerning its antitrust evaluation is unlikely to change the company’s ability to go forward with a trial.
An attorney representing New York said a proposed settlement between the mobile carriers and the Department of Justice would have a very significant impact that may require the states to amend their complaint. The states said it would be “unlikely but possible” that the Justice Department would seek to intervene in the case.
“The transaction as it stands is pro-competitive,” Carey argued.
He said the deal would allow T-Mobile and Sprint to “go head-to-head” with industry leaders, while the states contend that having more carriers is better for consumers.
“We think the competition that exists has benefitted Americans and benefitted Californians,” Paula Blizzard, an attorney on behalf of the state of California, argued.
Before the multistate lawsuit, the merger appeared to be progressing towards approval from the Department of Justice and the Federal Communications Commission. The companies had reportedly been asked by at least one of the agencies to make concessions such as divestment of Sprint’s prepaid service, Boost, as well as a portion of the radio frequencies that Sprint currently controls.
The attempted merger marks the third time T-Mobile has attempted to consolidate with a major carrier. In 2011, the company sought to merge with AT&T, and in 2014 it failed in a prior effort to combine with Sprint. A merger would make the combined new company the second-largest wireless provider in the country.
The parties told the judge they tentatively agreed to an October 7 trial date. A trial, they said, would take two to three weeks.
Yahoo Finance is a division of Verizon Media, whose parent company is Verizon Communications (VZ), currently the second largest U.S. wireless service provider by subscriber base.
Alexis Keenan is a New York-based reporter for Yahoo Finance. She previously produced and reported for CNN and is a former litigation attorney. Follow on Twitter@alexiskweed.
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Watch for a Bubble as Beyond Meat Stock Begins to Cool
DidBeyond Meat(NASDAQ:BYND) just begin a cooldown? The Beyond Meat stock price fell from over $200 per share to around $165 per share as one restaurant chain opted not to include its plant-based meat on their menu. This ended a meteoric rise in the stock from when it launched its IPO in early May.
Whether this constitutes profit-taking or a sustained move down remains unclear. However, given its current multiple and the lack of a catalyst to take BYND further, investors should probably stay away.
Beyond stock fell asYum! Brands(NYSE:YUM) restaurant chainTaco Bell announcedthat they would stay with their current vegetarian options. This also stopped the momentum that had taken BYND stock to more than eight times its IPO price in less than two months.
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Many might see this drop as a “buying opportunity.” With an increased focus on healthy food, this could well be just the beginning for plant-based meat products. Moreover, even for traders who see the run-up as concerning, Taco Bell’s decision not to go with Beyond Meat does not justify such a drop.
Beyond Meat counts many prominent restaurant chains as clients.Del Taco Restaurants(NASDAQ:TACO) reported that they sold about two million Beyond Meat tacos since April. Consequently, they will add two burritos featuring the meat substitute. Plant-based meat has also found its way on the menus of other restaurants. BothCarl’s Jr.andTGI Friday’sfeature items with Beyond Meat products.
Beyond Meat stock also benefits from its status as the only stock in this nascent industry. Its most direct peer,Impossible Foods, remains private.Tyson Foods(NYSE:TSN) also plans to offer a plant-based protein of their own, though they have not introduced such a product.
Still, before placing buy orders on Beyond Meat, traders need to exercise caution. Several analysts have turned on BYND stock due to valuation concerns, and analysts project losses until at least next year. Most investors can understand this as Beyond Meat trades at around 87 timessales!
Many might also question the $10 billion market cap. Wall Street predicts $204.97 million in revenue for the year. Even if the 63.5% revenue growth rate for 2020 comes to pass, prospective buyers need to act cautiously in such cases.
Investors should also note that hot stocks take on higher risk in the food industry. Hot tech stocks tend to support higher multiples over long periods, making stocks with high valuations less risky. However, food industry stocks rarely gain premium price-to-earnings (PE) ratios or attention.
Tyson trades at less than 14 times earnings. Also,Food wholesalerstend to trade at multiples in the teens, laggingS&P 500averages. Should Beyond Meat lose its sizzle, it could easily fall to such multiples.
Moreover, investors may have other stock choices in this industry soon. Impossible Foodsdoes not plan an IPOso far. Still, the success of BYND stock could change those plans. Further, as Tyson or other food producers enter the business, some investors might opt for those stocks.
The multiple on Beyond Meat stock makes the equity unpredictable. The plant-based meat industry could amount to a game-changer in the food industry. Consequently, traders have bid the price-to-sales multiple on the equity into the stratosphere.
However, while the stock might trade at higher levels years from now, the short and medium term could become challenging. In most cases, failure to gain a customer such as Taco Bell would not have led to such a massive selloff in an equity. Still, with no obvious catalyst to take it beyond current levels, Beyond Meat could fall.
Moreover, seeing the stock trade at more than 87 times sales indicates a likely bubble. Most of its industry peers trade at multiples below S&P 500 averages. If BYND falls due to a turn in sentiment, it could leave investors underwater in this equity for years.
As we just saw with Beyond Meat stock recently, speculation in hot stocks can bring tremendous returns. However, at this point, such investors might fare better in an equity with more potential upside than BYND stock.
As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You canfollow Will on Twitterat @HealyWriting.
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Americans in France could be paid as much as $300M in back taxes
Some Americans living in France are in for what some might consider a long overdue payday.
TheIRSupdated guidance ontaxcredits it had previously barred U.S. taxpayers residing in France from claiming, following a years-long court battle.
The U.S. is one of the only countries that subjects all citizens, no matter where they reside, to domestic taxation.
Americans living in France are also subject to French income taxes – which are not low, Steven R. Horton, owner and principal of Horton Tax Services – who also assisted on the court case – told FOX Business.
Generally, income taxes paid overseas can be deducted against U.S. tax obligations.
But the specific taxes in question (Contribution Sociale Généralisée (CSG) and the Contribution pour le Remboursement de la Dette Sociale (CRDS)) the IRS claimed were social levies and therefore not deductible.
The fight has been going on for at least seven years, Horton said.
Now that the IRS has updated guidance – allowing individuals to claim the tax credits – this week, affected persons can file for refunds. Claims from 2008, however, are not viable because it is beyond the statute of limitations.
“2008 is the big problem here because the IRS got its money and they don’t have to give it back,” Horton said.
Horton noted that the refunds only apply to people that paid U.S. income taxes, which includes Americans with wages above the foreign earned income exclusion.
Overall, Horton thinks about 5,000 Americans in France probably have refund claims. The average refund claim, he said, is about $10,000 to $15,000 per year, while most people are owed – on average – for five years each.
Horton estimates that the IRS could owe these individuals between $150 million and $300 million in back-taxes.
The IRS did not return FOX Business’ request for comment.
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The case was battled out in U.S. tax court, which Horton believes “dragged its feet” despite likely having the information to make a decision sooner.
The issue came about after an audit of Ory and Linda Eshel’s taxes – a pair of dual French-American citizens.
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An Intrinsic Calculation For Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT) Suggests It's 43% Undervalued
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How far off is Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to their present value. I will be using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model.
See our latest analysis for Intercept Pharmaceuticals
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, so we discount the value of these future cash flows to their estimated value in today's dollars:
[{"": "Levered FCF ($, Millions)", "2019": "$-249.91", "2020": "$-322.57", "2021": "$-277.51", "2022": "$345.36", "2023": "$441.56", "2024": "$520.79", "2025": "$590.48", "2026": "$650.62", "2027": "$702.34", "2028": "$747.17"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x6", "2020": "Analyst x6", "2021": "Analyst x4", "2022": "Analyst x2", "2023": "Analyst x4", "2024": "Est @ 17.95%", "2025": "Est @ 13.38%", "2026": "Est @ 10.19%", "2027": "Est @ 7.95%", "2028": "Est @ 6.38%"}, {"": "Present Value ($, Millions) Discounted @ 10.6%", "2019": "$-225.97", "2020": "$-263.73", "2021": "$-205.15", "2022": "$230.85", "2023": "$266.88", "2024": "$284.61", "2025": "$291.78", "2026": "$290.70", "2027": "$283.74", "2028": "$272.94"}]
Present Value of 10-year Cash Flow (PVCF)= $1.23b
"Est" = FCF growth rate estimated by Simply Wall St
The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 2.7%. We discount the terminal cash flows to today's value at a cost of equity of 10.6%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$747m × (1 + 2.7%) ÷ (10.6% – 2.7%) = US$9.8b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$9.8b ÷ ( 1 + 10.6%)10= $3.57b
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 $4.79b. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of $146.69. Relative to the current share price of $83.26, the company appears quite undervalued at a 43% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out.
Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the 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 Intercept Pharmaceuticals 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 10.6%, which is based on a levered beta of 1.32. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Intercept Pharmaceuticals, I've compiled three relevant aspects you should look at:
1. Financial Health: Does ICPT 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 ICPT'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 ICPT? 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. |
Friday Apple Rumors: Apple May Use OLED Screens in MacBook and iPad
Leading theApple(NASDAQ:AAPL) rumor mill today is news of OLED screens coming to more devices. Today, we’ll look at that and otherApple Rumorsfor Friday.
OLED Screens
:A new rumor claims that Apple is planning to bring OLED screens to more of its products, reportsMacRumors. According to this rumor, the tech company is going to bring OLED screens to its tablets, as well as MacBooks. The rumor claims that AAPL is currently in talks withSamsungto have it provide the OLED screens for these devices. It also notes that the company may have to pay Samsung a fee for low OLED screen orders for the iPhone.
Foxconn Advice:Foxconn founder Terry Gou is asking AAPL to move production out of China,AppleInsidernotes. Gou claims that the tech company would be better off by shifting production of its devices into Taiwan. This would help it avoid the trade war between the U.S. and China, which includes heavy tariffs. This move could take years, but the Foxconn founder believes it is possible.
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FTC Lawsuit:Qualcomm(NASDAQ:QCOM)is dragging Apple into its legal battle with the FTC, reports9to5Mac. The antitrust lawsuit against the company is still going on after QCOM appealed a ruling against it. To help make its case, the company is using slides from an internal presentation at AAPL. The FTC is arguing against the use of these slides, which come from its the legal battle between the two companies.
Check out more recentApple RumorsorSubscribe to Apple Rumors:RSS
As of this writing, William White did not hold a position in any of the aforementioned securities.Compare Brokers
The postFriday Apple Rumors: Apple May Use OLED Screens in MacBook and iPadappeared first onInvestorPlace. |
The Best Small-Cap Stock to Buy in June
Small-cap stocks can deliver explosive gains to investors. Withmarket capitalizationsbelow $2 billion, these businesses are small enough to grow exponentially if they're successful, generating fortunes for shareholders along the way.
However, they can alsoproduce sizable losses, up to and including a complete loss of capital should they fail. That's why it's important to invest in only the best small-cap stocks -- those with strong competitive advantages and massive long-term growth opportunities.
Read on to learn about an excellent business that meets these challenging criteria -- and that's poised to reward investors handsomely in the years ahead.
Image source: Getty Images.
Redfin(NASDAQ: RDFN)is a disruptive upstart within the $80 billion U.S. real estate brokerage industry. The online marketplace and discount brokerage company accounts for only a small piece of the industry's sales, yet it's rapidly gaining share, thanks to the cost savings and convenience it provides to its customers.
Redfin charges home sellers commissions as low as 1% of the sale price of their house, which is substantially lower than the typical 3% seller agent fee. While that may not sound like much of a difference, with the median home value in the U.S. now nearly $227,000, a 2% discount in fees can save sellers more than $4,500, on average. In markets where homes are more richly valued, such as California, the savings can be more than $10,000. Homebuyers can also save significant sums by using Redfin, with commission refunds that average $1,700.
By saving its customers money, Redfin is quickly taking share from its competitors. It accounted for 0.83% of the value of all existing U.S. home sales in thefirst quarter, up from 0.73% in the prior-year period and 0.33% back in 2014. In turn, Redfin's brokerage revenue jumped 16% year over year, to $81.3 million.
Redfin's ancillary businesses are growing even faster than its core brokerage operations. The company's RedfinNow homebuying business purchases houses directly from home sellers for a 7% fee, or about 1% more than the total amount of overall agent commissions they would normally pay with conventional brokers. The value proposition to sellers resides in their ability to sell their homes quickly and without the hassle and uncertainty of a traditional sale. The service is enjoying strong early demand: Revenue grew nearly sevenfold, to $21.4 million, in the first quarter.
Redfin is also expanding into additional areas such as mortgages and title services. Revenue in this segment soared 59% year over year, to $3 million. Perhaps more importantly, these services complement Redfin's core brokerage business. As an example, customers who use Redfin's brokerage, mortgage, and title services can typically use a more convenient and timesaving digital closing process. This, in turn, helps to boost customer satisfaction and repeat business.
Despite Redfin's intriguing expansion potential, its stock price is down about 15% over the past year. Investors appear to be focusing on the company's heavy growth investments, which haveweighed on profitability.
But Redfin is wisely spending money today to capture a far larger share of the industry's profits in the future. Moreover, the company's $1.7 billion market capitalization likely understates itsmassive long-term opportunity.
It's certainly possible that Redfin could ultimately capture 5% or more of the U.S. brokerage industry, perhaps even in the next decade. Should it do so, Redfin's market cap could exceed $10 billion at that time. This would equate to nearly asix-baggerfor investors who buy today.
As such, long-term investors may want to begin building a position in Redfin today.
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Joe Tenebrusohas no position in any of the stocks mentioned. The Motley Fool recommends Redfin. The Motley Fool has adisclosure policy. |
Some Miragen Therapeutics (NASDAQ:MGEN) Shareholders Have Copped A Big 66% Share Price Drop
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! The nature of investing is that you win some, and you lose some. And there's no doubt that Miragen Therapeutics, Inc. ( NASDAQ:MGEN ) stock has had a really bad year. In that relatively short period, the share price has plunged 66%. Miragen Therapeutics may have better days ahead, of course; we've only looked at a one year period. Shareholders have had an even rougher run lately, with the share price down 25% in the last 90 days. See our latest analysis for Miragen Therapeutics Miragen Therapeutics isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit. Miragen Therapeutics's revenue didn't grow at all in the last year. In fact, it fell 52%. If you think that's a particularly bad result, you're statistically on the money Arguably, the market has responded appropriately to this performance by sending the share price down 66% in the same time period. Buying shares in companies that lose money, shrink revenue, and see share price declines is unpopular with investors, but popular with speculators (apparently). So we'll be looking for strong improvements on the numbers before getting excited. You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow). NasdaqCM:MGEN Income Statement, June 21st 2019 Balance sheet strength is crucual. It might be well worthwhile taking a look at our free report on how its financial position has changed over time . A Different Perspective Given that the market gained 6.4% in the last year, Miragen Therapeutics shareholders might be miffed that they lost 66%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. The share price decline has continued throughout the most recent three months, down 25%, suggesting an absence of enthusiasm from investors. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. If you would like to research Miragen Therapeutics in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company. Story continues If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on 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 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. |
Crude Oil Price Forecast – Crude oil markets calm down
WTI Crude Oil The WTI Crude Oil market has gone back and forth during the trading session but settled on a relatively positive candle stick at major resistance. The 50 day EMA has caused a bit of resistance, so I think at this point it’s very likely what we are going to see is market participants take a bit of a breather. We are starting to get into an area that was previous support, so it should be resistance. I think a pullback towards the $55 level should be an opportunity to pick up a bit of value in this market. Crude Oil Inventories Video 24.06.19 Brent Brent markets went back and forth during the session as well, reaching around the 50 day EMA but at this point I think what we are looking at is a market that will pullback in order to pick up more momentum to continue going higher. Overall, we have to worry about the US/Iran situation, and that of course could bring the value of crude oil higher. Also, we have the Federal Reserve softening its monetary policy, so therefore we could also see crude oil get a bit of a bump from the currency markets as well. Ultimately, this is a market that I think will continue to be very noisy, but we have just finished a “W pattern”, which of course is a very bullish sign so I like the idea of buying dips as they offer value in what looks to be a huge turnaround in the attitude of market participants. Please let us know what you think in the comments below This article was originally posted on FX Empire More From FXEMPIRE: Futures Rise Alongside Bonds and Oil Prices Gold, Bitcoin and the USD – The Main Games in Town Air of Caution in Markets Ahead of “major” US Sanctions, Trump-Xi Meeting Crude Oil Price Update – Strengthens Over $58.03, Weakens Under $57.29 GBP/USD Daily Forecast – Sterling Eases Back from Major Resistance E-mini S&P 500 Index (ES) Futures Technical Analysis – June 24, 2019 Forecast |
This company wants cars to get software updates while driving
I sat with my hands on the wheel in the middle of a mini green race track, watching the feed from the tiny car I was driving.
Next to me, a developer was trying to modify code so the cityscape background on my screen turned into a desert landscape. A white flash appeared for a few seconds. He succeeded. And I didn't need to turn the car off or pull over — something carmakers hope they can replicate in the real world.
Smartphone users know the drill. When there's a new software update, they're notified and either schedule an overnight update or manually install the new software and stare at the progress bar as the phone restarts. That's basically how it works with cars now, too. But the auto industry's next move is to update the car's software as you drive.Read more...
More aboutDevelopers,Tesla,Autonomous Vehicles,Updates, andOta |
Were Hedge Funds Right About SS&C Technologies Holdings, Inc. (SSNC)?
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 SS&C Technologies Holdings, Inc. (NASDAQ:SSNC).
SS&C Technologies Holdings, Inc. (NASDAQ:SSNC)shares haven't seen a lot of action during the first quarter. Overall, hedge fund sentiment was unchanged. The stock was in 37 hedge funds' portfolios at the end of March. At the end of this article we will also compare SSNC to other stocks including Suzano S.A. (NYSE:SUZ), Twilio Inc. (NYSE:TWLO), and Fortis Inc. (NYSE:FTS) to get a better sense of its popularity.
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
We're going to take a glance at the recent hedge fund action surrounding SS&C Technologies Holdings, Inc. (NASDAQ:SSNC).
Heading into the second quarter of 2019, a total of 37 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards SSNC over the last 15 quarters. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
When looking at the institutional investors followed by Insider Monkey, Panayotis Takis Sparaggis'sAlkeon Capital Managementhas the largest position in SS&C Technologies Holdings, Inc. (NASDAQ:SSNC), worth close to $300.9 million, accounting for 1.5% of its total 13F portfolio. Sitting at the No. 2 spot is Cantillon Capital Management, managed by William von Mueffling, which holds a $226.2 million position; 2.4% of its 13F portfolio is allocated to the stock. Other members of the smart money with similar optimism contain Robert Joseph Caruso'sSelect Equity Group, John Smith Clark'sSouthpoint Capital Advisorsand Lee Ainslie'sMaverick Capital.
Since SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) has faced declining sentiment from hedge fund managers, it's easy to see that there exists a select few funds that slashed their full holdings last quarter. Interestingly, Andrew Immerman and Jeremy Schiffman'sPalestra Capital Managementsold off the biggest investment of all the hedgies tracked by Insider Monkey, comprising an estimated $104.2 million in stock, and Alexander Captain's Cat Rock Capital was right behind this move, as the fund dropped about $26.2 million worth. These bearish behaviors are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let's also examine hedge fund activity in other stocks similar to SS&C Technologies Holdings, Inc. (NASDAQ:SSNC). We will take a look at Suzano S.A. (NYSE:SUZ), Twilio Inc. (NYSE:TWLO), Fortis Inc. (NYSE:FTS), and Lennar Corporation (NYSE:LEN). This group of stocks' market values are similar to SSNC's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position SUZ,1,49875,1 TWLO,59,2213976,13 FTS,13,231336,-1 LEN,61,2310446,-1 Average,33.5,1201408,3 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 33.5 hedge funds with bullish positions and the average amount invested in these stocks was $1201 million. That figure was $1718 million in SSNC's case. Lennar Corporation (NYSE:LEN) is the most popular stock in this table. On the other hand Suzano S.A. (NYSE:SUZ) is the least popular one with only 1 bullish hedge fund positions. SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) 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 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately SSNC wasn't nearly as popular as these 20 stocks and hedge funds that were betting on SSNC were disappointed as the stock returned -7.6% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2.
Disclosure: None. This article was originally published atInsider Monkey.
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Silver Price Forecast – Silver continues to be volatile
Silver marketshave broken above the $15 level recently, and by doing so we have reached towards the psychologically and structurally important $15.50 level. Because of that, I think that it is only a matter time before market participants continue to jump in and try to buy this market, pushing it higher. It should be noted that we bounce from the 200 day EMA and therefore longer-term traders are probably getting involved at this point. Big money jumping and certainly helps. The $15.50 level above is going to cause a significant amount of resistance though, so I think at this point it’s likely that the market will be very choppy in this general region but I do favor the upside.
With the Federal Reserve stepping on the sidelines and becoming more dovish, it makes sense that the US dollar would fall, and therefore the precious metals market should continue to go higher. Looking at this, I think that the market probably goes to the $16.00 level, and perhaps even higher than that over the longer-term. I think that the $15 level underneath is massive support so a break down below there and perhaps even the 50 day EMA would be catastrophic for silver, and probably a complete change in attitude of the market yet again. Ultimately, I think that this market is one that you should be buying on dips and not selling it all as silver has a long way to go.
Please let us know what you think in the comments below
Thisarticlewas originally posted on FX Empire
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Introducing True Leaf Brands (CNSX:MJ), The Stock That Dropped 38% In The Last Year
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Passive investing in an index fund is a good way to ensure your own returns roughly match the overall market. When you buy individual stocks, you can make higher profits, but you also face the risk of under-performance. Investors inTrue Leaf Brands Inc.(CNSX:MJ) have tasted that bitter downside in the last year, as the share price dropped 38%. That falls noticeably short of the market return of around 1.6%. Longer term investors have fared much better, since the share price is up 27% in three years. The falls have accelerated recently, with the share price down 26% in the last three months.
View our latest analysis for True Leaf Brands
True Leaf Brands isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last twelve months, True Leaf Brands increased its revenue by 89%. That's a strong result which is better than most other loss making companies. Given the revenue growth, the share price drop of 38% seems quite harsh. Our sympathies to shareholders who are now underwater. On the bright side, if this company is moving profits in the right direction, top-line growth like that could be an opportunity. Our monkey brains haven't evolved to think exponentially, so humans do tend to underestimate companies that have exponential growth.
The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart.
If you are thinking of buying or selling True Leaf Brands stock, you should check out thisFREEdetailed report on its balance sheet.
True Leaf Brands shareholders are down 38% for the year, but the broader market is up 1.6%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Fortunately the longer term story is brighter, with total returns averaging about 8.4% per year over three years. Sometimes when a good quality long term winner has a weak period, it's turns out to be an opportunity, but you really need to be sure that the quality is there. Before spending more time on True Leaf Brandsit might be wise to click here to see if insiders have been buying or selling shares.
If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on 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. |
S&P 500 Price Forecast – Stock markets reached towards the highs
The S&P 500went back and forth during early trading on Friday which of course was “quadruple witching”, which is one of the worst days to trade anyway. That being the case, we are at the extreme highs of the longer-term market so it makes sense that we are going to struggle. We may get a bit of a pullback, as we fizzle out at all-time highs. I think at this point it’s very likely that the market will continue to see noisy reactions as we have the Buenos Aires talks around the corner and obviously things will be hinging on rumors.
At this point, I think we are very likely to see a bit of a pullback but that pullback should be thought of as a buying opportunity as the most important thing in the world is the Federal Reserve and not necessarily the economy. If the Federal Reserve is willing to be loose, Wall Street will buy stocks as bond simply won’t offer any type of return as far as yield is concerned. To the upside I think that we will go looking towards the 3000 handle, just as the 2900 level underneath should be supported. At this point, buying the dips continues to work but I would not hang onto a position for any real length of time.
Please let us know what you think in the comments below
Thisarticlewas originally posted on FX Empire
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3 Solar Stocks to Trade as the Sun Rises
It’s certainly not the first spot bullish investors might look to for trend trading given today’s disbelieving political climate, but solar stocks have been hot this year and the price charts continue to point to sizzling profits. Let me explain.
As any investor with more than a passing interest in the market knows, it’s been a terrific week for the broader averages. For its part theS&P 500has put together percentage gains and a marginal new all-time high above the ubiquitous October and May corrections and it’s double topping pattern. But that’s nothing compared to what solar stocks have been doing.
Despite today’s macro landscape of uncertainindustry-related tariffs, subsidies and a U.S. presidential administration dismissive of climate change, solar stocks have been quietly shining. TheInvesco Solar ETF(NYSEARCA:TAN) is up about 35% since October. And since May’s trade war-driven sell-off in the market, shares of TAN have added nearly 11% above its April 30thclose and adding to its impressive and largely under-the-radar gains in excess of 51%.
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To be sure, there’s a lot of vocal critics of solar or at least solar stocks and why they need to be avoided. At the end of the day though, if the charts ofFirst Solar(NASDAQ:FSLR),SolarEdge Technologies(NASDAQ:SEDG) andJinko Solar(NYSE:JKS) are what being a contrarian looks like, I say let’s simply focus on extracting more profits from friendly price trends filled with skeptics.
Click to Enlarge
First Solar is the first of our three solar stocks. This heavyweight also happens to be the sector’s largest outfit with a mid-cap valuation of about $6.6 billion.
The company’s most recentearnings report was mixedand saw a worse-than-forecast loss for the quarter. Still, FSLR stock did affirm its full-year profit guidance of $2.25 to $2.76 per share and boosted its sales outlook to $3.5 billion to $3.7 billion and above Street views of $3.37 billion.
Year-to-date gains of around 37% for this solar stock are slightly trailing TAN’s performance. However, a massive inverse head-and-shoulders pattern on the weekly price chart looks poised to begin the job of catching up to the solar ETF and even lead the sector in 2019’s second half.
Buy FSLR stock if shares can trade above $64. This is a second attempt entry to go long above the April consolidation high of $63.82. Set a stop-loss beneath support below $59.25 and the 50% retracement level. On the upside, taking initial profits as shares test the pattern neckline near $77.50 makes sense off and on the price chart.
Click to Enlarge
SolarEdge is the second of our three solar stocks. The Israeli-based company manufactures optimized inverter systems for residential, commercial and small utility-scale solar installations.
Most recently, Goldman Sachs upgraded shares. The firm seesmajor tailwinds for the U.S. residential marketincluding the 2020 California New Homes Mandate and an end to the 30% ITC tax credit triggering additional demand for solar upgrades.
The better news? Goldman’s move from sell to neutral for SEDG stock and price lift from $35 to $52 still shows Wall Street is at odds with demand from investors. Shares of this solar stock are trading about 14% above the analyst’s price target.
Moreover, with SEDG breaking out from a short base in the upper one-third of its corrective cup-shaped pattern — shares deserve a buy recommendation today.
Buy SEDG stock today with an initial stop-loss below $54.50 to keep exposure limited to justifiable levels on and off this solar stock’s price chart. On the upside, trimming profits on a test of the pattern and all-time-highs near $71 looks appropriate.
Click to Enlarge
Jinko Solar is the last of our three solar stocks. It’s a China-based outfit and as part of Goldman’s sector upgrade was blessed with a target lift from $9 to $13.
If you thought analysts were dismissive of SEDG, the price raise in this solar stock is roughly 41% below the market price. With Goldman keeping its sell recommendation on JKS stock, this bearish view not only takes the cake, it’s one contrarian-oriented bulls should want to devour!
Technically, shares of this solar stock have pulled back to test support of a key breakout from a congestion pattern within Jinko’s uptrend of several months. Now and with a daily chart forming a bullish hammer candlestick pattern, investors have a low-risk, high-reward means to buy JKS stock.
Buy JKS stock next week if shares can confirm a reversal off support. If required, a stop-loss beneath the pattern low makes good all-around sense. Alternatively, if bulls have the muscle to keep this quiet rally moving higher, taking profits near $26.50 – $27 and long-term channel resistance looks like equally smart business.
Disclosure: Investment accounts under Christopher Tyler’s management do not own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter@Options_CATandStockTwits.
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Gold Weekly Price Forecast – Gold markets explode to the upside this week
Gold markets have ralliedsignificantly during the week, pressing the $1400 level as resistance. This is an area that will attract a certain amount of psychological attention, but at this point it’s likely that we will continue to see this market try to go higher. We are just a bit overbought at this point, so I think that’s probably the biggest issue.
A break above the weekly candle sends this market looking towards the $1500 level above, but quite frankly I think it’s going to take quite a bit of momentum to make that happen. I look at pullbacks as an opportunity to go long in what is an obvious bullish market and would expect to see buyers near the $1375 level, perhaps even the $1350 level. Ultimately, the Gold markets tend to move in $25 increments, so it would make quite a bit of sense that the market would find interest at those levels.
As long as the Federal Reserve and the ECB both remain relatively soft with monetary policy, it’s very likely that precious metals will continue to strengthen. Obviously, gold is the main precious metal that people trade so it makes a lot of sense that we will continue to see a rise overall.
The $1350 level below is what I considered to be the “floor” in the market, so I think that the market staying above there is a prerequisite for a continuation of the uptrend. If we were to break down below that level then I would have to rethink everything.
Please let us know what you think in the comments below
Thisarticlewas originally posted on FX Empire
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BoE looks to throw open doors to tech companies ahead of Brexit
By Huw Jones
LONDON (Reuters) - The Bank of England opening up its balance sheet to payment companies and tech firms such as Facebook <FB.O> would bolster Britain's 7 billion pound ($9 billion) fintech sector just as it faces tougher competition from Europe after Brexit.
BoE Governor Mark Carney has said the Bank will consult next year on providing an "appropriate" level of access to its 500 billion pound balance sheet to new payment providers, putting them more on a par with the big banks that dominate payments. [nL8N23R5SN]
If the BoE approves the move, it would be the first major central bank anywhere in the world to let non-banks have direct access to its coffers, making it potentially attractive to large technology companies expanding into payments such as Amazon <AMZN.O> and Apple <AAPL.O>.
"The Governor's promise to go further by opening (the BoE)balance sheet and access to the payments system could further cement London's role as a key international fintech hub," said Margaret Doyle, partner and head of financial services insights at Deloitte.
Banking analyst John Cronin said the Bank could also be taking out insurance if the rapid advances of technology at payment companies dent the ability of commercial banks to make enough money as payment companies.
"Arguably over the much longer term it could be seen as a defensive move if banks' business models were to come under threat from Facebook's Libra and others," Goodbody analyst Cronin said.
"You can see how winners and losers emerge."
Earlier this week Facebook announced plans to introduce a cryptocurrency called Libra, part of an effort to expand into digital payments. [nL2N23P06G]
RAPID CHANGE
Payments make up a significant element of fintech activity but collectively they have yet to match the central role of banks in operating the financial system's plumbing.
Carney's comments coincided with British finance minister Philip Hammond announcing a review of the payments landscape to make sure that regulation and infrastructure keep pace with the "dizzying array of new payments models".
Currently only systemically important firms that are regulated to the same level as UK banks and are exposed to overnight liquidity risk - typically banks, broker-dealers and clearing houses - can access the central bank's balance sheet.
Facebook's cryptocurrency plans would turn it into a systemically important financial firm, Carney said. [nL8N23S17R]
If a payments company were granted access, it could park cash at the BoE overnight, meaning it would be less risky and rely less on commercial banks.
"Users should benefit from the reduced costs and increased certainty that come with banking at the central bank," Carney said.
Britain's government and financial regulators have been encouraging the fintech sector for several years, seeing it as a growth sector that already employs around 60,000 people.
The authorities are anxious to keep Britain at the cutting edge in an increasingly digitalised economy where electronic payments have already overtaken cash.
But Britain is due to leave the European Union on Oct. 31 and fintech firms in London have already expressed concerns they could be locked out of the EU market in future and unable to keep recruiting from the bloc.
UK regulators have been lauded by fintech firms for their flexibility in allowing new business models to be tested on real customers early on, but Berlin, Luxembourg and Paris are vying to attract firms from London by offering them access to the EU's vast single market.
Charlotte Crosswell, chief executive of Innovate Finance, a fintech industry body, said opening access to new types of payment providers at the BoE shows a real coming of age moment for fintech.
"We are delighted that regulators are keeping in step with the times, as this approach has propelled the UK to the forefront of financial services innovation, and allowed us to consistently maintain that position," Crosswell said.
($1 = 0.7903 pounds)
(Reporting by Huw Jones; Editing by Gareth Jones) |
How Should Investors Feel About True Leaf Brands Inc.'s (CNSX:MJ) CEO Pay?
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Darcy Bomford has been the CEO of True Leaf Brands Inc. (CNSX:MJ) since 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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 True Leaf Brands
At the time of writing our data says that True Leaf Brands Inc. has a market cap of CA$42m, and is paying total annual CEO compensation of CA$222k. (This number is for the twelve months until March 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$70k. We examined a group of similar sized companies, with market capitalizations of below CA$264m. The median CEO total compensation in that group is CA$152k.
As you can see, Darcy Bomford is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean True Leaf Brands Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at True Leaf Brands has changed over time.
True Leaf Brands Inc. has reduced its earnings per share by an average of 23% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 89% over the last year.
Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking outthis more detailed historical graphof earnings, revenue and cash flow.
True Leaf Brands Inc. has served shareholders reasonably well, with a total return of 27% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
We examined the amount True Leaf Brands Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years returns to investors have been uninspiring, and we would have liked to see stronger business growth. In conclusion we think the company should definitely focus on improving the business before awarding any large pay rises. Shareholders may want tocheck for free if True Leaf Brands insiders are buying or selling shares.
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. |
7 Top S&P 500 Stocks of 2019 (So Far)
The stock market is partying in 2019 more than it has in over 20 years. We are coming into the end of June, and theS&P 500is up more than 17% year-to-date. That’s the biggest year-to-date gain through June for the S&P 500 since 1997, when stocks were up 21% year-to-date in mid-June.
For what its worth, that first half 1997 rally in stocks continued into the back half of the year. Through the last six months of 1997, the S&P 500 rose another 8%, finishing the year with a record 30%-plus gain.
In other words, we are a little over halfway through 2019, and stocks are on track to have their best year in over 20 years. That’s pretty wild, considering in late 2018, financial markets globally were grappling with recession fears.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Nonetheless, now feels like an appropriate time to take a look at the stocks which are leading this record 2019 stock market rally. Which S&P 500 stocks have notched the biggest year-to-date gains through mid-June? As is always the case, it’s not who you would guess.
• The 7 Best Dow Jones Stocks to Buy for the Rest of 2019
With that in mind, let’s take a look at the top seven performing S&P 500 stocks of 2019 thus far.
Source: Shutterstock
YTD Gain:105%
Beaten up global beauty giantCoty(NYSE:COTY) has staged a huge turnaround rally in 2019 — a rally big enough to make COTY stock the S&P 500’s best performing stock year-to-date through mid-June.
The recovery rally was kick-started in early February when the company reported a surprise double-beat quarter that caused shares to rally in a big way. A few days thereafter, German conglomerateJab Holding Cooffered to purchases 150 million shares of Coty at a purchase price of $11.65. That pushed COTY stock — which was trading below $10 at the time — even higher. Since then the company has reported another “good enough” earnings report, which has kept COTY stock in rally mode.
Can COTY stock stay in rally mode? Most signs point to yes. The global economic situation is starting to improve after a late 2018 slowdown.
Coty’s numbers and operational trends are also improving. Insiders are buying the stock. The valuation remains reasonable at 19 times forward earnings. Big turnaround plans are due to be announced on July 1. Broadly, there’s still a lot to like about COTY stock, and all those favorable conditions should keep this stock in rally mode.
Source:Zack Seward via Flickr (Modified)
YTD Gain:78%
The second-best-performing S&P 500 stock of 2019 thus far is another dark horse turnaround company,Xerox(NYSE:XRX).
Document management systems company Xerox has been stuck in a multi-year decline. Now, management is finally doing something about it. They are reorganizing the company, looking to shed non-core assets, driving cost savings throughout the business, stabilizing top-line trends and putting the focus back on innovation. Most of these initiatives are working. The company has topped profit estimates in a big way in each of the past two quarters as margins are substantially improving. Investors have rallied around these profit improvements, and XRX stock is up nearly 80% year-to-date.
• 6 Stocks Ready to Bounce on a Trade Deal
Will the rally continue? Not until revenue trends reverse course. The valuation is cheap at about 9-times forward earnings. But that low multiple has been the average valuation for this stock over the past several years. Margins are improving, so that warrants a higher valuation. However, revenue trends remain depressed, and depressed revenue trends do not warrant a higher valuation. Thus, until they reverse course, it’s tough to see XRX stock staying on a winning trajectory.
Source: Shutterstock
YTD Gain:71%
Coming in third is Mexican fast casual eateryChipotle Mexican Grill(NYSE:CMG).
The huge 70%-plus year-to-date gain in CMG stock can be attributed almost entirely to new management. The new team came to Chipotle in 2018 and implemented a series of growth initiatives ranging from expanding the digital delivery business to revamping the menu to rolling out new marketing strategies. All of those initiatives have come together to spark a healthy recovery in Chipotle’s traffic, sales, margin and profit trends.
The result? A huge bounce-back rally in what was a very beaten up CMG stock.
Can the stock keep marching higher in the back half of 2019? I’m not convinced. I still think the macro-trends aren’t as good as they used to be for Chipotle. Namely, the health food craze has shifted from Mexican-style burritos and bowls in the mid-2010’s, to acai bowls, superfood cafes, poke, and various other non-burrito-related meals in the late 2010’s. Thus, I doubt unit performance levels and margins will return to peak levels, and the inability to do so will ultimately short-circuit this big rally in CMG stock.
YTD Gain:65%
Slotting in at fourth, we have electronics design giantCadence Design Systems(NASDAQ:CDNS) with a 65% year-to-date gain through June.
CDNS stock has rallied in a big way in 2019 as the secular bull thesis has gained traction, credence, and visibility through back-to-back double-beat-and-raise earnings report, both of which comprised low double-digit revenue growth and healthy margin expansion. Analysts raised price targets in response to both reports, and the stock has consequently been in rally mode all year long.
• 7 Value Stocks to Buy for the Second Half
Will Cadence stock stay in rally mode for the rest of the year? I’m not convinced. Valuation is now an issue for this stock. At 32-times forward earnings, CDNS stock is trading at its biggest forward earnings multiple in several years. Throughout 2018, the stock traded at or below 25-times forward earnings. To be sure, growth is good (low double-digit revenue growth with steady margin expansion). But that good growth profile seems fully priced in here and now. As such, further upside seems limited by an already stretched valuation.
Source: Shutterstock
YTD Gain:65%
Last year, chip companyAdvanced Micro Devices(NASDAQ:AMD) was the best-performing S&P 500 stock. AMD is following up that record 2018 performance with another strong year in 2019.
With a 65% year-to-date gain, AMD stock is the fifth-best-performing S&P 500 stock in 2019 thus far. The driver of the out-performance? The same thing that drove out-performance in 2018: relentless market share expansion.
The global central processing unit (CPU) and graphics processing unit (GPU) markets are huge — big enough to support a $210 billion market cap forIntel(NASDAQ:INTC) on the CPU side, and a $100 billion market cap forNvidia(NASDAQ:NVDA) on the GPU side. AMD is a small player in this market, with a market cap just under $32 billion. But through faster-than-peer product innovation, it is rapidly winning share from Intel and Nvidia, and in so doing, becoming an increasingly large and important CPU and GPU company.
Will AMD stock stay in rally mode? In the long term, yes. The present outlook is for AMD to continue to steal market share from Nvidia and Intel over the next several years. That share expansion, in a market supported by healthy growth drivers, should drive robust revenue and profit growth at AMD, the sum of which should drive AMD stock higher. But, in the near term, valuation friction is a problem for AMD stock, and prices well above $30don’t seem justified just yet.
YTD Gain:62%
The sixth-best-performing S&P 500 stock of 2019 is investment analysis solutions providerMSCI(NYSE:MSCI), with a 62% year-to-date gain.
The big rally in MSCI stock in 2019 can be attributed to the company’s continued success in its transformation to a high-margin, recurring revenue subscription business. MSCI has reported back-to-back strong earnings reports in 2019, both of which underscore that the subscription business is growing nicely and that margins have potential to move higher in medium-to-long-term. Investors have celebrated those results and pushed MSCI stock materially higher over the past six months.
• 5 Stocks to Buy for $20 or Less
Is MSCI stock due for another big run in the back half of 2019? Unlikely. This is a good growth company that is benefiting from big data and analytics tailwinds. But, the growth trajectory isn’t that robust. Organic revenues rose less than 10% last quarter, while subscription revenues rose just 10%. Margins have potential to move higher, but they are already pretty high, and further upside is fairly limited. As such, you are probably looking at a mid-teens profit grower here. MSCI stock trades at 33 times forward earnings. That’s a big multiple for mid-teens profit growth — almost too big — meaning valuation friction will prevent MSCI stock from heading much higher in the near term.
Source:Bureau of Safety and Environmental Enforcement via Flickr
YTD Gain:61%
Last, but not least, on this list of the S&P 500’s best performing stocks of 2019 thus far isAnadarko Petroleum Corp(NYSE:APC), with a 61% year-to-date gain.
The driver behind APC stock’s big 2019 gain? A bidding war betweenChevron(NYSE:CVX) andOccidental Petroleum(NYSE:OXY). Chevron came in and offered to buy Anadarko for $65 per share. Given the huge premium and obvious synergies, it seemed like a done deal. Then news broke that prior to that buyout offer being announced, Anadarko and Occidental had been in mergers and acquisitions talks, with the price tag in those talks hovering in the $70’s. Shortly after those reports, Occidental pulled the trigger on a cash-and-stock deal for Anadarko which, at the time, valued APC at $76 per share. Net net, a bidding war between Occidental and Chevron drove APC stock up more than 60% this year.
Will APC stock stay in rally mode? Probably not. The latest update is that Anadarko management views the Occidental offer as superior to the Chevron offer, and that Chevron won’t boost its offer. The Occidental offer, which is a cash and stock offer, pegs the takeover value of APC stock at about $70. That’s where APC stock trades today. Thus, further acquisition-driven upside in APC stock seems muted.
As of this writing, Luke Lango was long INTC and NVDA.
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Silver Weekly Price Forecast – Silver markets retire during week
Silver markets broke outto the upside, breaking above the $15.00 level rather significantly, and even came close to touching the $15.50 level. That being the case, the fact that we have given back some of the gains should be a huge surprise, as it is a large, round, psychologically midcentury number.
Ultimately, the Federal Reserve has softened its monetary policy, so it makes sense that precious metals will gain. The $16 level above should cause a lot of resistance, but I think it makes the most obvious target to the upside. That round figure should cause a lot of trouble but once we clear that we should then be able to go to the $17.00 level. I think that buying dips continues to be the best way going forward, as we have seen such a shift in sentiment. It’s not until we break down below the $14.85 level on a daily close that I would be interested in shorting this market, something that doesn’t look very likely to happen in the short term.
With the Federal Reserve on the soft side, precious metals markets in general should continue to strengthen, but as we have been in a downtrend for some time, it’s going to take a significant amount of effort so therefore it will make a significant amount of choppiness and volatility going forward. The 50 week moving average has offered resistance, and therefore I think we will continue to bounce around but I do favor the upside and look at value underneath as opportunities.
Please let us know what you think in the comments below
Thisarticlewas originally posted on FX Empire
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• Crude Oil Price Update – Strengthens Over $58.03, Weakens Under $57.29 |
2019 FIFA Women's World Cup team, U.S. Soccer agree to mediation in discrimination lawsuit
Lawyers for the U.S. women's World Cup team, including stars Alex Morgan (left) and Megan Rapinoe (second left), have agreed to mediation to try to resolve the discrimination lawsuit they filed in March against U.S. Soccer. (Getty) REIMS, France — In an effort to avoid the courtroom, the United States women’s national team and the U.S. Soccer Federation tentatively agreed Friday to mediation to resolve a discrimination lawsuit filed by the players earlier this year, a U.S. Soccer spokesman confirmed Yahoo Sports. The Wall Street Journal was the first to report that the sides would attempt to resolve their differences via mediation, which would take place following the ongoing FIFA Women’s World Cup in France. The development represents an apparent shift in strategy by the players’ representatives, who had stated their intention to bring the suit, which was filed in March in U.S. District Court in Los Angeles, to trial. The players had previously rejected offers to have a third party try to settle the suit before the two sides went to court, a person with knowledge of the discussions told Yahoo Sports. In the complaint, 28 players accused the federation of “institutionalized gender discrimination” that impacts their travel, training, medical treatment, and coaching. The defending world champion USWNT beat Sweden on Thursday in its final first round match at France 2019. The Americans will play Spain here on Monday in the round of 16. The USSF bristled at the timing of the news. “While we welcome the opportunity to mediate, we are disappointed the plaintiffs’ counsel felt it necessary to share this news publicly during the Women’s World Cup and create any possible distraction from the team’s focus on the tournament and success on the field,” federation spokesman Neil Buethe said in an email. “We look forward to everyone returning their focus to the efforts on the field as we aim to win another title.” Five U.S. players sued U.S. Soccer in 2016 claiming similar gender-based discrimination. The USWNT and the federation agreed to a new collective bargaining agreement the following year. U.S. Soccer formally responded to the latest suit in May, arguing that the men’s and women’s national teams “are physically and functionally separate organizations that perform services for U.S. Soccer in physically separate spaces and compete in different competitions, venues and countries at different times; have different coaches, staff and leadership; have separate collective bargaining agreements; and have separate budgets that take into account the different revenue that the teams generate.” Story continues More from Yahoo Sports: NBA draft winners and losers: Suns crash and burn Bol Bol falls far in draft, but finally has NBA team Cards pitcher wouldn't leave field after game-ending mistake Pelicans draftee has the most joyous reaction to being drafted |
Did You Miss Majesco's (NASDAQ:MJCO) 52% Share Price Gain?
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By buying an index fund, you can roughly match the market return with ease. But if you choose individual stocks with prowess, you can make superior returns. Just take a look atMajesco(NASDAQ:MJCO), which is up 52%, over three years, soundly beating the market return of 39% (not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 34%.
View our latest analysis for Majesco
In his essayThe Superinvestors of Graham-and-DoddsvilleWarren Buffett described how share prices do not always rationally reflect the value of a business. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
Majesco became profitable within the last three years. That would generally be considered a positive, so we'd expect the share price to be up.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. Thisfreeinteractive report on Majesco'searnings, revenue and cash flowis a great place to start, if you want to investigate the stock further.
We're pleased to report that Majesco rewarded shareholders with a total shareholder return of 34% over the last year. So this year's TSR was actually better than the three-year TSR (annualized) of 15%. Given the track record of solid returns over varying time frames, it might be worth putting Majesco on your watchlist. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought.You can find out about the insider purchases of Majesco by clicking this link.
Majesco is not the only stock that insiders are buying. For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on 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. |
Pixar MVP John Ratzenberger takes us through all his roles, from 'Toy Stoy' to 'Incredibles 2'
John Ratzenberger ‘s 10-year run as Cliff Clavin on the seminal ’80s sitcom Cheers was impressive enough. His run in Pixar movies has been even longer. Starting with 1995’s Toy Story and continuing through last year’s Oscar-nominated Incredibles 2 and this week’s Toy Story 4 , Ratzenberger has voiced a role in every single Pixar-produced film. That’s a whopping 21 movies straight, earning the 71-year-old Ratzenberger the title of “Pixar’s good luck charm” and oftentimes leading fans on an Easter egg hunt to pick out his sometimes-disguised drawl. “Everyone, from college age to 1 year old, knows the sound of my voice,” Ratzenberger beamed during a recent interview with Yahoo Entertainment where he discussed many of his roles (watch above). It helped that he was in on the ground floor, when the future computer-animation giant was still essentially functioning as a startup before revolutionizing the genre with the release of Toy Story , in which Ratzenberger was cast as the talking piggy bank, Hamm. (“That was really the voice of Cliff Clavin,” he admitted.) “At the very beginning no one had really heard of Pixar, when they asked me to do the voice of the pig. I said, ‘Absolutely. Sounds like fun.’ And then when I started working with them, I said, ‘Boy, they do all the heavy lifting. The actor really doesn’t have much to do.’ All you really do is listen to what they tell you.” That simple formula landed Ratzenberger eventual roles in A Bug’s Life (1998), the Cars trilogy (2006-2017), WALL-E (2008), Up (2009), Brave (2012), and Inside Out (2015). While he insists there was never a point where it was agreed he’d appear in every film, the offers just keep coming. Story originally published Feb. 15, 2019. Toy Story 4 is now in theaters. Read more on Yahoo Entertainment: Role Recall: Jean-Claude Van Damme kicks around stories from 'Breakin',' 'Bloodsport,' 'Kickboxer,' 'Expendables 2' and more Sam Elliott talks most memorable roles, from 'Butch Cassidy' to 'Big Lebowski' to 'A Star Is Born' Role Recall: Glenn Close on feminism and 'Fatal Attraction,' 'beautiful genius' Robin Williams, and her Oscar-nominated 'The Wife' Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle's newsletter. View comments |
Dominican health official dismisses mysterious deaths as 'fake news'
In an interview with Fox News , a Dominican Republic health official dismissed the latest string of recent deaths in the country as "fake news." Ministry of Public Health spokesman Carlos Suero took a page from U.S. President Donald Trump's playbook while fighting back against accusations that his country is no longer safe for American tourists. Since June 2018 , at least nine people have suspiciously died at resorts throughout the Caribbean island. "It’s all a hysteria against the Dominican Republic, to hurt our tourism, this is a very competitive industry and we get millions of tourists, we are a popular destination," Suero said. Many of the deaths have either involved the consumption of questionable alcohol or the use of hotel amenities. Suero, however, maintained that testing of the hotel properties by government health inspectors, with assistance from the U.S. Embassy, has turned up negative results. "The testing results are all negative, everything – the food, the alcohol, the air – is normal, there is no alteration of the alcohol," he said. "With all the tourists we get every year, we make sure we comply with international standards for everything." The State Department did not corroborate Suero's assertion but released a statement confirming that the FBI is investigating at least three of the deaths that have occurred lately. "The FBI is providing technical assistance to Dominican authorities with toxicology reports for three recent deaths at the Grand Bahia Principe La Romana resort," the statement read. "Our FBI colleagues tell us that those results may take up to 30 days." The three specific deaths the agency is looking into all happened last month. On May 25, Pennsylvania psychotherapist Miranda Schaup-Werner suddenly collapsed after having a drink in her room. At the time, she had been celebrating her ninth anniversary with her husband. Authorities ultimately determined that Schaup-Werner, who had previously been diagnosed with inflammation around her heart 15 years earlier, died of respiratory failure and pulmonary edema. Story continues Five days after Schaup-Werner's passed, Maryland couple Edward Nathaniel Holmes and Cynthia Day were found dead in their room after they failed to check out of their hotel. Dominican police later claimed they found medication for high blood pressure in the pair's room and concluded that the two died of the same illness that Schaup-Werner did. Nevertheless, relatives of all three victims remain adamant that their loved ones were healthy before they flew out to the Dominican Republic. The FBI has since stepped in to see whether other factors may have led to the trio's passing. Other tourists who have died in the past year include Pennsylvania resident Yvette Monique Sport, Maryland resident David Harrison , Ohio resident Jerry Curran , California resident Robert Turlock , New York resident Leyla Cox and, most recently, New Jersey resident Joseph Allen . Still, Suero told Fox News that he is unconvinced that there is any foul play involved in any of the deaths. "People die all over the world," he said. "Unfortunately, very unfortunately for us, these tourists have died here. We had about 14 deaths last year here of U.S. tourists, and no one said a word. Now everyone is making a big deal of these." |
1.5 million sign petition to ban Yulin festival
A petition has gained a staggering 1.5 million signatures calling for an end to the Yulin Dog Meat Festival (GETTY) Around 1.5 million people have signed a petition to put an end to the Yulin Dog Meat Festival. The online call to stop the 10-year-old Chinese festival was started by by Care2 and Humane Society International. The Yulin Dog Meat Festival will see between 10,000 and 15,000 animals beaten, tortured and killed for their meat as part of the controversial event in China. The petition was sent to the Chinese Embassy, and it received the support of animal welfare groups and celebrities, who have demanded the festival be stopped. Animal activists around the world are supporting calls to ban the festival (GETTY) Claire Bass, executive director of Humane Society International UK, said: “The dog meat trade in China is first and foremost about crime and cruelty. "The Yulin festival is one small but distressing example of an unspeakably cruel trade run by dog thieves and sellers who routinely steal pets in broad daylight using poison darts and rope nooses, defy public health and safety laws, and cause horrendous suffering, all for a meat that most people in China don't consume." Read more on Yahoo News UK: 'Wimbledon Prowler' jailed for 14 years for decade-long burglary spree Farmer receives life sentence for shotgun murder of estranged wife ‘in jealous rage’ Man pleads guilty to killing elderly woman he robbed of £60 Paul Littlefair, RSPCA head of international, said that although the law in China is yet to be changed, there is growing opposition to the event. He said: "The Yulin Dog Meat Festival is one of the high-profile reasons why the RSPCA is working closely with the Chinese authorities to help address animal cruelty. Puppies are seen in a cage at a dog meat market in Yulin, in China's southern Guangxi region (GETTY) Actress Dame Judi Dench also lent her support to the campaign. Dame Dench said: "It fills me with sadness to think that the Yulin Dog Meat Festival is just around the corner again. "I cannot imagine the suffering of those poor dogs, and I hope very much that one day soon this cruel trade will end." |
What to Expect From the Telegram Open Network: A Developer’s Perspective
Recently, new materialssurfacedabout the lite client for the Telegram Open Network (TON) blockchain, powered by encrypted instant messaging serviceTelegram. Based on the content of these documents, it is possible to make a lot of assumptions about its future, especially in regard to comparing TON with competitors — such as theCosmosnetwork, Polkadot andEthereum 2.0— as well as the overall impact of the blockchain ecosystem.
Polkadot, Cosmos and TON will definitely compete for users and developers. Moreover, in 2019, every blockchain really needs to have a lot of use cases built on it in order to attract users and potential investors, as the era of the initial coin offering (ICO) and new blockchainsmay now be over. Requirements for blockchain projects are currently high and about to be even higher after the release of TON. It is important to explain to users which problemsare solved by this project. It is possible to compare projects by the amount of potential users. TON is probably the leader because of existing Telegram user base (300M+).
Neither Ethereum nor any other cryptocurrency or blockchain company currently has 300 million users — but Telegram does. One of the largest problems of current blockchain development is handling thescalabilityfor such an amount of users, which is why Polkadot, Ethereum 2.0 and others exist in the first place. These blockchains attempt to address larger volume and faster speed. Currently, Ethereum and Bitcoincan processabout 15 and 7 transactions per second (TPS) respectively — much less than Visa’s almost 45,000 TPS. Thus, TON needs to process more than Visa to facilitate its millions of users.
The main challenge for modern blockchains is being able to scale enough to process such a large amount of transactions that it’s suitable for mass adoption, which would mean it could bear millions or even billions of potential users.
TONclaimsto be fast in terms of processing transactions between users. However, not a single blockchain project is capable of achieving the goal of processing millions of transactions per second.
There are different approaches to scaling a blockchain system while having the same security and decentralization as Bitcoin — or at least close to it.
The first way is to usecentralized hubs controlled bysmart contracts. A user can deposit funds into the smart contract and will retain the same funds on this hub. However, if something unforeseen happens, users can get their funds back from a smart contract without any interaction with the hub. An example of this isPlasma, which wasproposedon Aug. 11, 2017 by Ethereum co-founder Vitalik Buterin and Joseph Poon, the creator of Lighting Network, in order to scale Ethereum. During the development, a number of issues appeared that made Plasma quite complicated to implement. The main difficulty was the exit from Plasma. To exit, the user needed to wait seven days. During this period, anybody could provide proof that the user cheated. A smart contract needs to verify that the user has the right to exit. The main challenge is to make the least possible calculations and to have the smallest possible proof size on the Ethereum side, because you need to pay for any calculation or for any data on Ethereum. During Plasma discussions12345678910and implementations1234567, an issue with the history of exit proofs caused Plasma to becomeunstableafter a couple of months. Because of that problem, there is no fully production-ready Plasma with smart contracts on it right now.
The second way to scale blockchain is to use a proof-of-stake (PoS) consensus algorithm instead of proof-of-work (PoW). The main difference between these approaches is thatPoSallows for the validation of blocks by one’s stake — the amount of coins that the validator owns. PoS is more efficient than PoW according to its creators’ (Sunny King and Scott Nadal)research. An example of proof-of-stake blockchains right now areStellar,EOS(which uses a delegated proof-of-stake of DPoS),Binance Chain, Cosmos andPolkadot.
The third approach to solving scalability problem issharding.
Shardingis a way to split the entire state of the network into a bunch of partitions (called shards) that contain their own independent piece of state and transaction history.
The main principle is to execute transactions parallelly and to separate all the data into different small blockchains that can interact with each other.
To think of it in a metaphor, imagine Ethereum was split into thousands of pieces. Each piece can function on its own and can have its own features known to each respective piece. If the pieces want to talk to one another, they will have to use some sort of protocol. Sharding creates a way for each shard to maintain individual transaction receipts that are cryptographically secure. They can be brought back together to be a larger piece at any time.
Sharding, together with PoS, isone of the best ways to scale current systems. However, there are a couple ofsecurity issueswith it that are still unresolved.
TON is a PoS blockchain that actively uses sharding to scale. It has a masterchain and workchains that are also connected, with both having their own shardchains. Thus, the TON description document conclusion reads:
“To achieve the necessary scalability, we proposed the TON Blockchain, a ‘tightly-coupled’ multi-blockchain system [...] with bottom-up approach to sharding (cf. 2.8.12 and 2.1.2).”
TON will be scalable because it will combine several approaches, such as sharding and PoS consensus. With sharding, the data is stored in different places so less information is being sent through the network — making it faster. The benefit of PoS is that you don’t need to do a lot of calculations to validate the block. By using both of these, they create much faster transaction validations than proof-of-work.
Polkadot is a blockchain that allows for the connection to other blockchains, which was built by Gavin Wood, a co-founder of Etherium. Cosmos is similar to Polkadot — however, the Cosmos team developed a PoS consensus algorithm that is the leader in speed and security.
TON’s main advantage over its competitors is its user base of 300 million. But there are other parameters that can be compared.
Developers community:
Without a developers community, there could be no future for any blockchain systems. Right now, there are still not a lot of use cases of blockchain in the general population. It is obvious that without developers, there would not be any apps based on a given blockchain, so there would not be any users either.
Polkadot and Ethereum are the leaders here. Ethereum has been growing its community for six years. There are many companies and enthusiasts from the best technological universities that have built and continue to build apps on the Ethereum blockchain. The main reason for this is that the Ethereum and Polkadot approach is to develop everything open-source and allow anybody to participate in it by proposing ideas through EIP (Ethereum Improvement Protocols) and getting research grants.
The main problem with TON here is that it is not public: There is no way to participate in the development process. The TON teamis well knownas a team of talented and smart people, but are very closed off from the public. There is no large, open developer community for TON and, therefore, there might not be many apps and protocols built on TON — at least, not until it operates more publicly. For mass adoption for any blockchain, there needs to be many developers building mass use cases — so, this is an issue for TON’s growth, at least for now.
Smart contract language:
Right now, there is only one language on TON, which allows for smart contracts. However, TON is still under active development, and everything could be significantly different in future. We will analyze only the current situation now.
TON’s smart contract language, calledFift, is quite unusual. It was inspired by theprogramming language Forththat first appeared about 50 years ago. This language could be unfriendly to new developers. Most JavaScript or Python developers will maybe never understand how to code with it. However, it is somewhat similar to the language Lisp in terms of syntax.
This means that the TON team decided to have dev quality over quantity. Only well-experienced developers can work with Fift, which also means that there will be fewer mistakes in the production of smart contracts. However, that also means there will be fewer developers. It could be a good approach to use Fift, but it is still risky for TON.
It is pretty much the opposite approach to Ethereum’s strategy with the Solidity language, which was designed to be similar with JavaScript to allow a lot of new developers and JavaScript developers to start working with Solidity quickly.
Both Polkadot and Ethereum 2.0 allow for developing decentralized applications (DApps) using classical languages like C#, Java, C++, JS, Go, Rust and others. The main idea is to use the WebAssembly virtual machine, which suits perfectly for blockchain systems. WebAssembly was originally designed for web applications. Thus, developers can use one language while completing different tasks with it. Cosmos also allows developers to use classical languages.
TON could potentially have a lot of problems with Fift. Polkadot, Cosmos and Ethereum use classical languages and there is no simple solution for TON now about how to compete with this. However,TON Labsis working on optimization the Fift for other coding languages, such as C++, that are more widely used. However, it is possible that other languages will have the possibility to be converted to Fift. Ton Labs is working to do that in future. With support for languages like C++ and C#, Ton will solve all the issues connected with the difficulties of understanding Fift and will have the same level of adoption of developers as Polkadot — or maybe even better. The Telegram team always has had a good API and documentation for its API, such as Telegram Bots.
Architecture:
Polkadot has one mainchain called therelay chain, with many sidechains connected to it calledparachains. Parachains do not have their own consensus, so all the blocks are verified on the relay chain by a group of about 1,000 validators. It is more scalable than most current solutions because blocks in the parachains are executed parallelly.
Cosmos also has one mainchain called Cosmos Hub. Other sidechains are connected to the hub and called zones. Every zone has its own validators, so blocks are executed independently. The problem here is that, with such a small amount of validators (100), zones can be hacked. In Polkadot, all chains have common validators to solve this issue. Cosmos’ approach is to have only useful zones, so there will be enough validators to stay safe. You could have your own blockchain for specific reasons, in this case.
TON’s architecture, as detailed in section 2.1 of theTON Description Document, is completely different. Its defining characteristic is that it has a masterchain and a large number of workchains — independent blockchains that can interact with each other and be governed by the masterchain. Every workchain consists of shardchains — small chains responsible for specific data in a blockchain stored in blocks.
Each workchain is subdivided into up to 260 sharded blockchains, having the same rules and block format as the workchain itself but responsible only for a subset of accounts, depending on several (the most significant) bits of the account address.
Each shardchain block is a group of cells — the specific type of data in TON. A shardchain block itself can also be described by an algebraic formula and is stored as a “bag of cells,” according to the TON Description Document (section 2.5.6).
The most interesting architectural approach is TON’s sharding. However, there are a lot of issues concerning the implementation and security of that solution right now. Sharding in this case can be insecure and has some exposure to hacking.
There are a certain number of use cases that can be implemented on TON and other new generation blockchains.
Telegram bots + blockchain:
Telegram already has bots. It is one of the best ways to build an app with a human interface directly in messenger. It is much easier to use when you don’t need to install any new app, but can just tap your favorite bot in search. With TON’s API for bots, it could be possible to build simple, user-friendly DApps for users that will be available to them in seconds. There are already some bots on Telegram now that allow you to use bitcoin and ether, and even exchange, buy or sell them.
With TON payments, Telegram can build its own marketplace of apps directly within the messenger, which could end up being the Apple App Store killer. With the first phone banking beginning in 1983 by the Bank of Scotland, then the first online banking by Stanford Credit Union, followed by banking apps in 2007 and banking bots in 2015, now we see bots becoming commonplace. By 2020, it is estimated that 85% of banking customer service will be done bots. Businesses should find the messenger “home” of their users — Discord for gamers, Telegram for crypto enthusiasts, WeChat for China and Slack for enterprise business — to align with where their target user currently resides.
Micropayments in messenger: Micropayments in messengers are one of the most promising blockchain applications in everyday life.
For example,WeChatpayments: one of the main reasons WeChat is unsuccessful in Europe and in the United States is that WeChat is too centralized and affiliated with the Chinese government. The West prefers more slightly agnostic platforms, on which people are free to select services and payments from a variety of options.
DEX:
A decentralized cryptocurrency exchange (DEX) is another possible use case of the TON blockchain that can also work for Telegram bots. With the potential of TON to process millions of transactions, it is possible to build an exchange to trade.
Bridges between other chains: A bridge is a connection between the blockchains, which is the main goal of Cosmos, Polkadot and TON. Bridges allow sending transactions to another blockchain with one point of failure, as bridges work with validators that could be attacked. When we use a bridge, we need a group of trusted validators who listen to events from one blockchain and will transfer them to another. The main problem is that validators can be attacked or malfunction on their own. To prevent such cases, validators need to stake assets on both chains. They will be punished by losing the staked amount for any malfunction or misconduct. However, that also means that amount of crypto that can be transferred through a bridge must be less than the amount staked by the validators. This is important because bridges could make exchanging more decentralized than just using current exchanges.
The TON team’s strategy differs quite a bit from the main strategy of current leaders like Polkadot, Ethereum and Cosmos. The current way TON is being developed is much more complicated for developers than the aforementioned blockchains. However, if the TON team finds out how to attract developers, this could completely change the way developers work with all blockchains. TON could illustrate that it’s possible to release a product without any public discussions and still attract a robust community. TON could attract professional, well-experienced C++ developers instead of JavaScript developers, which can definitely change the quality of DApps. This could impact customers who hire developers in a positive way by eliminating lower-quality developers in outsourcing organizations.
TON could become a powerhouse blockchain — as upon its release, 300 million people will instantly possess gram wallets, which will make it the world’s most adopted cryptocurrency. In seconds it’s very probable that TON will move to the forefront as being the most-used blockchain within the whole ecosystem, with the best developers in the world building on it.
The team behind TON declares that it will maintain its own infrastructure, and the company will have a voting capacity twice as powerful as the rest of the community. The question is why it would advocate for such a centralized system. It claims to make a distributed blockchain system, but in fact, it is not distributed, but centralized. Other than the fact that it has a public ledger, it is no different from other processing systems. It has created some services on the blockchain, but so far it is unclear how it will work and what it needs (DHT, proxies, DNS).
If we consider the network, blockchain, services and payment — then this results in a completely centralized system that will be serviced by the organization (TON). Technically, it has a very detailed and well-implemented white paper. The understandable purpose of the services, the clear connection between them, and that there are no technological issues all make for a potentially great platform that can withstand a large load.
With all due respect to world-class technology, it could cause one to ponder: Why be agnostic and private if you're in fact really just centralized? Perhaps it’s a message for both centralized and decentralized systems to maintain the integrity that was so meticulously built.
Related reading:Exclusive: New Report Reveals Details of Telegram’s TON Blockchain
The article is co-authored by Nick Kozlov and Dmitry Gorilovsky.
Nick Kozlovis software developer, nominated as Microsoft MVP in blockchain, winner of 10+ international hackathons, CTO of Button Wallet.
Dmitry Gorilovskyis a product creator and innovator with a proven track of record in hardware/software development, 10+ years of experience in IoT product and business development, six+ years in blockchain industry, the creator of YotaPhone, the founder and CEO of Woodenshark — the company behind multiple IoT and hardware products — and the founder and CEO of Moeco — a global connectivity platform.
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Sweat-proof foundations for summer – for all skin types
Yahoo Lifestyle’s shopping team is committed to finding you the best products at the best prices. We may receive a share from purchases made via links on this page. Sweat-proof foundations to keep your face from melting. (Photos: bareMinerals, NARS, Maybelline New York, L'Oréal Paris; Art by Quinn Lemmers for Yahoo Lifestyle) With summer creeping up, you should seriously considering changing your foundation . You may instinctively reach for a sheerer, lightweight foundation that won’t feel heavy on your face; or, you may still want full coverage for an ultra-glam finish. Yet, the idea of a sweat-dripped face full of makeup is enough to make anyone tweak their summer makeup routine. When looking for your perfect summer foundation, the first thing you’ll need to do is figure out the consistency you desire — whether that’s a powder, cream or liquid. If you’re aiming to pull off a my-skin-but-better look à la Alicia Keys , then products such as BB and CC creams — which offer broad spectrum SPF and antioxidants — are your best bet. Alternatively, you can skip a base and use a setting or face powder to touch up places that need more coverage or that tend to get more oily, such as your T-zone. If you’re more of the full-glam makeup type, your recipe for success starts with a strong primer (hydrating if you have dry skin, mattifying for oily complexions), your foundation of choice and a setting powder to seal everything in. Always be mindful of your tools for makeup application: a sponge can help blend product onto larger areas of the face more seamlessly, while a makeup brush can give more of an airbrushed effect. Lastly, you’ll want to think of the finish of your foundation. Do you want something that’s matte or dewy? What about something with light-reflecting particles that make your skin look radiant? Most finishes are determined by the skin type that particular foundation is catering to, but you can always mix and match to find your ideal finish. For instance, a radiant foundation may be formulated to work with oily skin, since oily skin tends to naturally appear “dewy.” However one could use a radiant foundation and then mattify the face a bit with pressed powder (which comes in handy for excess oil). If you’re someone with dry skin who loves a matte finish, make sure that your skincare regimen (which includes everything you’re doing before the makeup application) is supporting your skin to be as healthy and hydrated as possible. Look for products that are nourishing and hydrating, such as hyaluronic acid, coconut extract, glycerin and vitamins A, C or E. Story continues Now that you know a bit about what to look for, here are some of our favorite foundations for the summertime. For those who want a barely-there finish: Maybelline Dream Fresh BB Cream Sheer Tint 8-In-1 Skin Perfector (Photo: Maybelline New York) Shop it : Maybelline Dream Fresh BB Cream Sheer Tint 8-In-1 Skin Perfector, $7 This BB cream acts as a skin perfector— pigmented enough to brighten and enhance the skin, yet light enough to feel like you aren’t wearing anything at all. The cream also has a broad-spectrum SPF 30 and is made of a water-gel formula that instantly refreshes and hydrates the skin. Best part is that the formula is suitable for all skin types and buildable for a wide range of skin tones. For application, you can go in with a makeup tool such as a sponge, or even use your fingers. For those with oily skin who want buildable coverage: L'Oréal Paris Infallible Pro-Matte Liquid Foundation (Photo: L'Oréal Paris) Shop it : L'Oréal Paris Infallible Pro-Matte Liquid Foundation, $11 A beauty girl’s favorite, the Infallible Pro Matte foundation not only comes in a matte finish, but offers a buildable coverage that easily buffs into the skin. Once dry, this foundation is heat and humidity-resistant for up to 24 hours, which makes it perfect for long, summer nights. For those who want a sheer, radiant finish: bareMinerals Complexion Rescue Tinted Moisturizer Hydrating Gel Cream (Photo: bareMinerals) Shop it : bareMinerals COMPLEXION RESCUE Tinted Moisturizer Hydrating Gel Cream, $32 This product is the ideal tinted moisturizer for just a “drop” of coverage during those warm, summer days. Ingredients such as mineral electrolytes work to hydrate the skin, while heart-leaf globe daisy, an antioxidant, protect the skin’s barrier from other environmental stressors. Oh, and it’s got SPF 30 protection for additional coverage from the sun. If you’re in need of more hydration, mix with a bit of your favorite facial moisturizer. For those with oily skin who want full coverage: Tarte Amazonian Clay Full Coverage Airbrush Foundation (Photo: Tarte Cosmetics) Shop it : Tarte Amazonian Clay Full Coverage Airbrush Foundation, $36 Although the product boasts that it provides medium coverage, let me attest to this product definitely building up to full coverage. The powder is talc-free, hypoallergenic (hello, those with sensitive skin) and enriched with Amazonian clay, which not only provides 12-hour coverage, but it possesses a waterproof formula that makes it a perfect summer foundation. For those who want their skin to “illuminate from within”: NARS Sheer Glow Foundation (Photo: NARS) Shop it : NARS Sheer Glow Foundation, $47 The foundation may be on the more pricey side of our picks, but it’s got a ton of perks: The brightening formula leaves skin hydrated and luminous, actually improving skin’s brightness and texture with daily use. Plus, if you apply it with a beauty sponge, you’ll see that the foundation is creates a satin-like finish. For a flawless finish that works on all skin types: Hourglass Vanish Seamless Finish Foundation Stick (Photo: Hourglass) Shop it : Hourglass Vanish Seamless Finish Foundation Stick, $46 If you need a product you can easily apply and touch up while on the go, Hourglass’s foundation stick is right up your alley. It provides a full coverage and natural finish. It contains double the amount of pigment versus traditional foundations, making the color payoff effortless and long-wearing. The triangular shape also makes it easy to place under the eyes and other hard to reach places on the face. For those with dry skin who want full coverage: Black Opal True Color Foundation Stick (Photo: Black Opal) Shop it : Black Opal True Color Foundation Stick, $10 Not only is Black Opal’s foundation shade range more inclusive for deep skin tones, but the formulation of the stick blurs pores and conceals skin imperfections, all while giving maximum coverage. The best part is that the foundation stick moisturizes as it covers, allowing your skin to stay hydrated no matter how long you wear it. For those with dry skin who need long-wear coverage: Revlon ColorStay Makeup for Normal/Dry Skin (Photo: Revlon) Shop it : Revlon ColorStay Makeup for Normal/Dry Skin, $10-$15 Revlon’s ColorStay foundation come in 24 shades, and really holds up to its name, with a lightweight liquid formula that actively works to provide coverage up to 24 hours. Depending on how you apply it, the foundation offers medium to full coverage. Throughout the day, you can use a misting spray to refresh your face. Read More from Yahoo Lifestyle: 10 inexpensive sunburn remedies that will change your life (and skin) Do hair vitamins really work? Here’s what a dermatologist says. The $18 leave-in conditioner Hailey Baldwin swears by |
Dominican Republic tourists deaths prompt travel concerns
One of the pool areas of the Hard Rock Hotel & Casino is seen where a tourist died unexpectedly after getting sick two months ago on June 20, 2019 in Punta Cana, Dominican Republic. News reports and the United States State Department are saying that seven Americans have become ill and died this year and two more families are reported to have come forward saying their relatives died unexpectedly last year while staying at resorts in the Dominican Republic. The FBI is assisting the Dominican authorities in the investigation into why tourists are dying. (Photo by Joe Raedle/Getty Images) A series of mysterious deaths in the Dominican Republic has put a spotlight on the popular Caribbean tourist destination recently. After several American travellers died under similar circumstances while visiting the country, the FBI and local authorities are investigating. So what does that mean for Canadians who are planning to visit the popular tourist spot? One travel expert says the best thing Canadians can do is refer to the government's travel advisory website , or the company with whom they booked their flight and accommodations. That is probably the best place to start with, says Frederic Dimanche, director of the School of Hospitality and Tourism Management at Ryerson. Good travel agents are trained to provide that kind of information as well. Along with information on high risk travel, the Canadian governments advisory website will also provide information on visa requirements, vaccine requirements and recommendations on drinking local water. Most of the concerns Canadian travellers have are going to be related to tropical diseases, says Dimanche. Countries in the Caribbean, Central America, Africa, those are the countries where youll find the type of risks that you dont find in the northern hemisphere. Currently, the governments travel advisory website recommends exercising a high degree of caution in the Dominican Republic, due to high crime rates and the Zika virus. Dimanche adds that its also important to protect yourself against preventable diseases, like STIs, when travelling. Safe sex is always something youd want to recommend, he says. And not necessarily just with the locals, but with other travellers as well. Allison Wallace, vice president of corporate communications at Flight Centre, says that along with checking the advisory website and talking to your travel agent, it can help to speak to personal references about upcoming travel destinations. Talking to people you trust that have travelled to the destination youre interested in can help mitigate concerns, she says. Everyones idea of safe and risky is different and needs to be kept in context. Story continues When it comes to travel destinations with potential safety issues, the World Health Organization also has an up-to-date list of regions with health risks. In recent years, there has been ongoing advisories to places in Central America as a result of the Zika virus. Canada isnt excluded when it comes to travel advisories affecting the country. In 2003, Toronto was on the World Health Organizations list of destinations to avoid , after an outbreak of SARS. |
Crocs Could Pull Off 10-15% Earnings Upside, Baird Says In Upgrade
Crocs, Inc.(NASDAQ:CROX) shares were soaring Friday after Baird turned bullish on the casual footwear company's stock.
The Analyst
Jonathan Kompupgraded Crocs from Neutral to Outperform and maintained a $29 price target.
The Thesis
The recent pullback in Crocs shares has been overdone given signs of brand momentum, Komp said in the Friday upgrade note. (See his track record here.)
For the past 12-18 months, the analyst said he has held a positive view of the company’s structural improvements — but has been hesitant to chase shares after the stock broke seven-year highs entering 2019.
Crocs has already delivered "impressive" financial improvements and has the potential for brand momentum into 2020, Komp said.
The analyst projected the stock will outperform as the company successfully cycles tougher comparisons and reinforces confidence in sustained sales and margin gains.
Baird is optimistic about Crocs' pipeline of clogs and sandals heading into 2020 and said the company has a steady lineup of additional collaborations with an increasing international mix.
“Net, we have high confidence in current 2019-2020E estimates and see 10-15% upside to 2020E earnings as possible/realistic if top-line momentum continues."
Price Action
Crocs shares were trading higher by 10.2% at $19.70 at the time of publication Friday.
Related Links:
Crocs Gets An Upgrade On High Warm-Weather Demand
Crocs, Shoe Carnival Surge Higher After Susquehanna Upgrades
Photo by Pink Sherbet Photography via Wikimedia.
Latest Ratings for CROX
[{"Jun 2019": "Apr 2019", "": "", "Upgrades": "Downgrades", "Neutral": "Overweight", "Outperform": "Neutral"}, {"Jun 2019": "Jan 2019", "": "", "Upgrades": "Upgrades", "Neutral": "Neutral", "Outperform": "Positive"}]
View More Analyst Ratings for CROXView the Latest Analyst Ratings
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Why is the PlayStation Classic so unpopular?
Given the popularity of other nostalgic throwbacks like the NES and SNES Classic consoles, it's easy to see what Sony wastryingto do when they released the PlayStation Classic in December. Devindra Hardawar even pointed out in hisreviewthat the system was "a quick attempt by Sony to cash in on the micro-console trend." While the Classic did have a decent look and feel, the 20 game selection was unlikely to satisfy fans, the controllers lacked DualShock and the inclusion of the PAL versions of some titles was baffling. These disappointments -- and an initial price point of $100 -- were enough to push the console'sscoredown to 67.
The body of the system, an adorably sized replica of the 1994 original, has USB connections for the controllers, an HDMI output and micro-USB for power. Users were largely pleased with the smaller, look-alike shell: DonPolo said it's "nicely designed and a great addition to my existing classic console collection," while CrazyCanuck loved its design, noting that "it's almost a perfect replica of the [PlayStation] I played, and spent far too much time with."
Dev may have felt that Sony cheaped out on the controllers, but they were still popular with user reviewers; both Kevin and Timmmay called them great. Mickey said the "feel of the controllers matched what I remembered when I had the original back in the day." While many were disappointed at the lack of DualShock, Timmmay pointed out that he "never cared for the DualShock since most games I play are platformers, RPGs, puzzle games and SHMUPs."
Those controllers added some value to the system for Mickey, who felt that "the fact that you get two of them, and they are standard USB controllers, almost covered half the cost right there." However, all reviewers -- Dev and readers alike -- regarded the systems initial $99 price point as a huge fail. Mickey waited for the system to go on sale for $40 before picking one up, while Timmmay said "It was never really on my radar when it was selling for $100." DonPolo said the Classic "could have been an amazing device if, for starters, it would have been priced out correctly." Only a marked down price to $37 made "the entire venture less painful" for him. And CrazyCanuck summed it up best by stating, "At its current retail price, which is drastically cheaper, it might be worth it to die-hard fans of the system."
One of the most hotly-contested components of the PS Classic package is the selection of games included. The list of twenty titles features well known titles likeGrand Theft AutoandTekken 3, but excludes other popular throwbacks likeSilent HillandTomb Raider II. Reviewers expressed disappointment at the lineup: Elranzer referred to the selection as "being pretty poor," while Timmmay said it was his "only complaint." sanban013 didn't hold back, saying that "Out of twenty of the best games, only one or two are included in here, hence, this is AWFUL." Predictably, users who found titles they liked were more complimentary. Dgarra was straightforward: "Bought this forIntelligent Qube, works great, still love it." CrazyCanuck enjoyed "about a fourth of the library (Coolboarders, Resident Evil, FFVII, Twisted MetalandMetal Gear Solid.)"
Many users mentioned that modding the console or adding programs restored the features (or games) they felt were missing from the system. Gabriel said "if you have the technical chops to reconfigure the PCSX emulator or use a third-party program likeBleemSync, the PlayStation Classic can be a great experience." Timmmay said after they sideloaded games likeCastlevania Symphony of the Nightit became "well worth the $40 investment it now costs." Andrew, who enjoys tinkering with hardware, says "with Bleemsync, a powered hub, and a 2TB PS4 external hard drive, this system is INCREDIBLE." Whether or not it's worth purchasing a PlayStation Classic only to add on that much, is clearly going to be up to the individual user.
Much like the feedback about the game library, responses to the game play were critical at best. Gabriel said when he first started using the PS Classic, his first thought was "the graphics are worse than I remember." Mickey said the game play was "overall close to what I remember but it has been many years since I touched a PSX." Elranzer said the "PlayStation games have aged much worse than the pixel-based retro systems before them," and blamed "some weird decisions like using the inferior PAL versions (such an AWFUL video standard)." CrazyCanuk concurred, stating they are "not a fan of how the games are all based on their PAL versions from back in the day."
Overall, users reviewed the nostalgia console more harshly than Dev, awarding the system a crushing score of 60. KillamanShank1 signed up just to call the system "trash." And others weren't exactly holding back: KaaPow called the PS Classic a "sorry attempt" and "half-assed," freedonut said it was "not worth it," and Gabriel advised interested consumers to not "waste your time or money." DonPolo was more pragmatic, stating it "really didn't hit the nostalgia mark with its game library and it should have included the DualShock controllers." Elranzer said the console "is not worth it unless you're a collector."
That seems to be valid advice, as the users who found value in the system were either collectors or had extremely grounded expectations of what the console was capable of. Ryan, for example, loves his PS Classic. "It sits proudly next to my SNES and NES Classic. It's modded with a selection of my favorite games." Travis, who pre-ordered the system, "enjoyed it for what it is" (though he is also looking into modding it). Again, CrazyCanuck sums it up nicely with the following advice: "All told, if you're a collector, get it. If you're a fan of the games and you don't have your PSX and discs anymore, get it. Otherwise, you're fine passing on a system that, while visually is a great representation, is lackluster in both library and everything else." |
How Bentley Turned Itself Around Thanks to the Continental GT
Photo credit: Bentley From Car and Driver Bentley today wafts through commonly understood ultra-luxury-car circles as an established player, duking it out with high-end Porsches, Mercedes-Benzes, and others for the richest Americans' cash. But in 2003, Bentley was in a very different (and worse) position in the new-car market. So how did it go from a niche player, a British curiosity floated along by platforms and engines borrowed from Rolls-Royce, to producing more than 10,000 cars a year? The short answer is: the Continental GT , which appeared—first as a coupe, then later as a convertible—in 2003, using a classic Bentley name. This was the first modern Bentley, meaning it was designed under the tutelage of the Volkswagen Group, which Bentley joined in 1998. The GT used components that mostly came from Volkswagen and Audi, including its unusual twin-turbocharged W-12 engine. (Unlike more common, albeit still rare, V-12 engines, which have two banks of six cylinders that meet to form a V shape, a W-12 sports four banks of three cylinders arranged to resemble a W.) Unlike in the Rolls-Royce days, the Conti's components were blended with the GT's retro-modern good looks inside and out such that they weren't immediately noticeable as having been borrowed. Almost immediately, the Continental GT was a success. According to the company, a fight broke out among potential customers over who'd buy the first one. The convertible version joined the lineup for 2006, and Bentley later refreshed the GT for 2014, adding a less expensive optional V-8 engine at the same time. To date, Bentley has sold more than 70,000 Continental GTs globally. Photo credit: Heritage Images - Getty Images Before then, you'd never have believed that the automaker's best-selling model to that point was the Turbo R (pictured above), a gigantic sedan equivalent to today's full-size Mulsanne. (In fact, the Turbo R started out as the Mulsanne Turbo, before Bentley changed the name to better reflect its, um, turbocharger and the extra roadholding—R!—delivered by its sport suspension, at least relative to the base model's Rolls-Royce suspension.) Bentley managed to move about 7500 Turbo Rs between 1985 and 1999, a mere fraction of the Continental GT's total over a barely longer period of time. Story continues In its time, the Turbo R was viewed as a return, of sorts, to Bentley's gentleman-race-car roots. It was fast, luxurious, and sporty(ish). Keep in mind, it was still a Rolls-Royce wearing a Bentley grille, fortified by a turbocharger to produce 325 horsepower and with a slightly firmer suspension. But Bentleys had so lost the plot by that time that, when the Turbo R even vaguely alluded to Bentley's long-lost characteristics, its momentum set in motion the company's eventual return to its traditionally sporty, luxurious image and set the table for the Continental GT. Today, Bentley is introducing its latest Continental in both 12- and eight-cylinder forms in the midst of celebrating its centenary, as the company has been around since 1919. A new Flying Spur, essentially a four-door Conti, is coming soon. The Bentley lineup also includes the Bentayga SUV as well as the stupendously splendid Mulsanne sedan. The factory in Crewe, England, is on pace to produce more than 10,000 vehicles for the fifth year running—and not a single vehicle in the lineup shares parts with a Rolls-Royce. And to think, this resurgence began with a leftover Rolls-Royce that was turbocharged. You Might Also Like Future Cars Worth Waiting For: 2021-2025 |
Bronstein, Gewirtz & Grossman, LLC Announces Investigation of Sealed Air Corporation (SEE)
NEW YORK, NY / ACCESSWIRE / June 21, 2019 /Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Sealed Air Corporation ("Sealed Air" or the "Company") (SEE). Such investors are encouraged to obtain additional information and assist the investigation by visiting the firm's site:www.bgandg.com/see.
The investigation concerns whether Sealed Air and certain of its officers and/or directors have violated federal securities laws.
On June 20, 2019, after market hours, Sealed Air revealed that it fired CFO Bill Stiehl, after its internal audit committee conducted a review following an SEC subpoena. Sealed Air said that it received the subpoena for information related to its selection of an independent audit firm and the independence of that audit firm. Following this news, Sealed Air stock dropped sharply intraday trading on June 21, 2019.
If you are aware of any facts relating to this investigation, or purchased Sealed Air shares,you can assist this investigation by visiting the firm's site:www.bgandg.com/see. You can also contact Peretz Bronstein or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC: 212-697-6484.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact:
Bronstein, Gewirtz & Grossman, LLCPeretz Bronstein or Yael Hurwitz212-697-6484 |info@bgandg.com
SOURCE:Bronstein, Gewirtz & Grossman, LLC
View source version on accesswire.com:https://www.accesswire.com/549489/Bronstein-Gewirtz-Grossman-LLC-Announces-Investigation-of-Sealed-Air-Corporation-SEE |
How I Buy Bread for $1 or Less
Checked bread prices lately? When the staff of life costs $4 or more per loaf, your food budget suffers.
One way to avoid paying top dollar is to search for a bakery outlet in your area. The savings are always good, and sometimes great.
A few personal examples:
• I once paid 50 cents for an 18-count package of “stadium rolls” — high-end buns that turned on-sale turkey burgers into a tasty supper. Usually they cost a dollar, but for some reason they were on sale that week.
• We often get tortillas for 50 cents, and sometimes less — some weeks it’s “buy one, get two free.”
• Our go-to price for a 1-pound bag of pretzels is also 50 cents.
• I routinely buy multigrain loaves for $1 to $1.50. Since we often have toast with breakfast and sandwiches for lunch, the savings are noticeable.
• Every now and then, I’ll get Little Debbie snack cakes for a buck a box as a fun treat for my great-nephews.
But isn’t this stuff reallyold?
Nope. Bakeries use outlets to sell extra items. Sometimes that means factory overruns or holiday-themed products — Christmas cookies or Halloween Tastykakes, for example. It can also mean bread and other products that are approaching their best-by dates.
Having seen close-dated bread on supermarket shelves — where you’d expect it to be super-fresh — I prefer to pay a bargain price at the outlet. Besides, terms like “best by” and “sell by”probably don’t mean what you think.
We’ve purchased dark rye and pumpernickel as well as 12-grain loaves. We’ve also bought Boboli pizza shells, bagels, hot dog rolls, English muffins and onion rolls.
Depending on the outlet, you may find more than just baked goods.
Here in Anchorage, Alaska, we’ve found good-quality coffee (a pound and a half for $6), corn chips and even canned sardines at our Oroweat bakery outlet. Our favorite 50-cent find there is a 1-pound bag of Twizzlers.
Large bakeries with outlets in multiple states often list the locations on their websites. Examples include:
• Aunt Millie’s: This bakery has outlet locations in Indiana, Michigan, Ohio and Wisconsin.
• Bimbo Bakeries USA: This company’s brands include Arnold, Ball Park, Boboli, Entenmann’s, Sara Lee and Thomas. Use its website’s Outlet Locator to search for outlets in your state.
• Franz Bakery: Outlets are located in Northeast states and Alaska.
• Schwebel Baking Co.: Outlets are located in New York, Ohio and Pennsylvania.
You can also find bakery outlets through third-party websites, though you might want to call the outlet in advance to confirm the information you found online is current. Examples include:
• Holsum: Outlets are located in Wisconsin, according to Menuism.
• Oroweat: Outlets are located in 11 states, according to MapMuse.
• Pepperidge Farm: Outlets are located in 10 states, according to FactoryOutletStores.info.
A local baking company might have its own thrift shop, too, so also do a web search for bread and bakery outlets in your area.
If your local supermarkets have their own bakeries, check the “yesterday’s baked goods” rack for discounted products as well.
Watch the video of ‘How I Buy Bread for https:// or Less’ on MoneyTalksNews.com.
A few more slice-of-life tips:
• Think ahead : If you find your favorite bread, extend the savings by buying extra loaves and freezing them.
• Try new flavors : Not sure you’d like onion rolls or Russian rye? It’ll cost only a buck or two to find out.
• Always have your favorite rolls in the freezer . Those stadium rolls make tuna salad seem more interesting — especially if you toast the rolls and add a little relish and chopped hard-cooked egg to the tuna. Leftover soup, or even canned soup, becomes a decent meal when served with dinner rolls.
• Check sell-by dates : While I’m not above eating bread with two days left on the meter, I always look for loaves with the longest shelf life, even if I plan to freeze them.
• Look for extra savings : For example, some outlets have punch-card systems: Collect enough stamps on your loyalty card and you’ll get free products.
• Go often : Lineups vary from week to week, so it might pay to stop by a local outlet frequently. For example, sometimes I get my pick of sandwich rolls and on other occasions find no rolls at all. One week, Dave’s Killer Bread was available for 50 cents a loaf. How else are you going to get a deal like that?
Have you ever shopped at a bakery outlet? Share your experience or tips by commenting below or over onour Facebook page.
This article was originally published onMoneyTalksNews.comas'How I Buy Bread for $1 or Less'.
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Hedge Funds Have Never Been This Bullish On Lear Corporation (LEA)
A market surge in the first quarter, spurred by easing global macroeconomic concerns and Powell's pivot ended up having a positive impact on the markets and many hedge funds as a result. The stocks of smaller companies which were especially hard hit during the fourth quarter slightly outperformed the market during the first quarter. Unfortunately, Trump is unpredictable and volatility returned in the second quarter and smaller-cap stocks went back to selling off. We finished compiling the latest 13F filings to get an idea about what hedge funds are thinking about the overall market as well as individual stocks. In this article we will study the hedge fund sentiment to see how those concerns affected their ownership of Lear Corporation (NYSE:LEA) during the quarter.
Lear Corporation (NYSE:LEA)has experienced an increase in enthusiasm from smart money of late. Overall hedge fund sentiment towards Lear is at its all time high. Though, our calculations also showed that LEA isn't among the30 most popular stocks among hedge funds.
Today there are a lot of signals stock market investors have at their disposal to appraise stocks. A duo of the most underrated signals are hedge fund and insider trading activity. Our experts have shown that, historically, those who follow the best picks of the top investment managers can trounce their index-focused peers by a significant margin (see the details here).
Let's go over the new hedge fund action regarding Lear Corporation (NYSE:LEA).
Heading into the second quarter of 2019, a total of 40 of the hedge funds tracked by Insider Monkey were long this stock, a change of 38% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards LEA over the last 15 quarters. With hedgies' capital changing hands, there exists a select group of notable hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey,Pzena Investment Management, managed by Richard S. Pzena, holds the largest position in Lear Corporation (NYSE:LEA). Pzena Investment Management has a $354.3 million position in the stock, comprising 1.9% of its 13F portfolio. On Pzena Investment Management's heels is AQR Capital Management, managed by Cliff Asness, which holds a $138 million position; 0.1% of its 13F portfolio is allocated to the stock. Some other hedge funds and institutional investors that hold long positions include Brandon Haley's Holocene Advisors, Phill Gross and Robert Atchinson'sAdage Capital Managementand Robert Bishop'sImpala Asset Management.
As one would reasonably expect, some big names have jumped into Lear Corporation (NYSE:LEA) headfirst.Holocene Advisors, managed by Brandon Haley, assembled the largest position in Lear Corporation (NYSE:LEA). Holocene Advisors had $54.5 million invested in the company at the end of the quarter. Phill Gross and Robert Atchinson's Adage Capital Management also made a $47.5 million investment in the stock during the quarter. The other funds with new positions in the stock are Robert Bishop's Impala Asset Management, Dmitry Balyasny'sBalyasny Asset Management, and Clint Murray'sLodge Hill Capital.
Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Lear Corporation (NYSE:LEA) but similarly valued. We will take a look at Under Armour Inc (NYSE:UA), Whirlpool Corporation (NYSE:WHR), Zions Bancorporation, National Association (NASDAQ:ZION), and Woori Financial Group Inc. (NYSE:WF). This group of stocks' market valuations match LEA's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position UA,30,934725,3 WHR,18,547948,-2 ZION,44,631442,2 WF,1,997,-1 Average,23.25,528778,0.5 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 23.25 hedge funds with bullish positions and the average amount invested in these stocks was $529 million. That figure was $805 million in LEA's case. Zions Bancorporation, National Association (NASDAQ:ZION) is the most popular stock in this table. On the other hand Woori Financial Group Inc. (NYSE:WF) is the least popular one with only 1 bullish hedge fund positions. Lear Corporation (NYSE:LEA) 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 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately LEA wasn't nearly as popular as these 20 stocks and hedge funds that were betting on LEA were disappointed as the stock returned 0.6% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2.
Disclosure: None. This article was originally published atInsider Monkey.
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Should You Follow Jefferies and Buy CannTrust (CTST)?
Over the past 12 months, Canadian cannabis company CannTrust Holdings (CTST) has burned through more than $55 million in negative free cash flow. CannTrust has more than doubled its revenues year over year, to nearly $41 million booked over the past year -- yet deteriorated from a profitable operation earning on the order of $15 million a year in profit, to an unprofitable operation that lost more than $9 million despite growing revenues strongly.
If you're of a skeptical frame of mind as regards the bubble-shaped marijuana economy, these are the kinds of numbers that might worry you.
However, despite financial concerns — and a lack of catalysts — Jefferies analystOwen Bennettreiterates a 'buy' rating on CannTrust stock with a C$13 price target, promising near-100% upside from the shares' recent price of C$6.65 ($5.02, US). (To watch Bennett's track record,click here)
What worries Bennett is ... a lack of "positive newsflow" out of CannTrust.
This, in a nutshell, is the upshot of the "flash report" that Bennett issued yesterday in response to CannTrust's announcement that it has signed "a non-binding letter of intent" to set up a hemp farming operation in the U.S. to produce "high cannabidiol content" hemp for sale in the U.S. (where hemp CBD is legal).
Bennett attributes the stock's recent weakness not to CannTrust's abysmally unprofitable and cash-burning financials, but rather to a "lack of positive catalysts in terms of news flow." CannTrust has made "no FMCG announcements," laments Bennett, "despite the chairman saying back in Oct. 2018 they'd announce something by year-end." It's said "nothing" about expanding its production of marijuana derivatives such as edibles and vapables, "nothing" about "US exposure" either, and given "no updates on the Pharma side of things," either.
All of which explains why the analyst is so enthusiastic to hear that at long last, CannTrust is making progress... in the newsflow department. Calling the company's announcement that it will soon begin hemp production in California "definitely welcome," the analyst doubled down on his positive stance on CannTrust stock. And yet, at the same time, he also injected a note of caution.
The reason is contained in the fine print from CannTrust's Wednesday announcement:
Its deal with "diversified farming company" Elk Grove Farming Company is not a binding agreement, but only a letter of intent to eventually sign such an agreement. In any case, it's not expected to result in any actual production until sometime in 2020. Moreover, profits from CannTrust's arrangement with Elk Grove (if any) will be split 50-50 with CannTrust's partner, which will have 50% ownership of the joint venture.
Despite the 50-50 relationship, CannTrust is bearing much of the risk in this venture. For one thing, it's partnering up with an operation that Bennett notes "has no hemp experience." CannTrust will also "guarantee" to buy the JV's "biomass" -- which serves Elk Grove's interests more than CannTrust's. Once in possession of the biomass, CannTrust will try to process, formulate and sell it as hemp-derived CBD products in U.S. markets. And yet, selling into this market may be difficult, for as Bennett also points out, "CannTrust still lacks a branded partner" to help sell its hypothetical hemp-derived products.
Despite all of this, Bennett recommends that you buy CannTrust. Our only question would be: "Why?"
To read more on the nitty gritty of what’s going on in the rising cannabis industry,click here.
Read more on CTST:
• CannTrust: Even With Entry Into U.S. Market, Investors Must Remain Patient
• Canntrust (CTST) Stock Remains an Attractive Cannabis Pick
• Should Investors Buy CannTrust Stock on Weakness? This Cannabis Expert Says Yes
• Why Investors Should Buy Cannabis Stock CannTrust (CTST) on Dip
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• Deutsche Bank Remains Sidelined on AMD Stock; Here's Why
• Antitrust Investigation Is Not a Major Threat to Alphabet (GOOGL) Stock, Says Top Analyst
• Tesla's (TSLA) Gigafactory Is Impressive, But Its Stock Isn't, Says RBC Capital |
The age you should start using anti-aging skin care products
Experts agree that skin starts to age around 20 years old, and recommend that you start the road to prevention early. (Photo: Getty) The wealth of products available these days to target visible signs of aging such as fine lines, crow’s feet, dark under-eye circles and dull skin are a gift and a curse. The options are so extensive that it can actually feel quite overwhelming figuring out a skin care regimen that works best. So when and where does one begin? Experts agree that skin starts to age around 20 years old, and recommend that you start the road to prevention early. “I recommend my patients to start incorporating anti-aging skin care products in their 20s and 30s, when our skin slowly starts to lose collagen,” says Y. Claire Chang , a board-certified cosmetic dermatologist at Union Square Laser Dermatology in New York City. The first step to reduce signs of premature aging is daily sunscreen use. Sun exposure contributes greatly to the skin’s aging process. “The best thing to follow a good skin regimen requires one to wear sunscreen — SPF 50 or higher — and to moisturize daily,” according to board-certified dermatologist Naana Boakye of New Jersey’s Bergen Dermatology. The next step in the anti-aging skin care fight is to identify the best key ingredients in the wide breadth of products available. Boayke, and most skin experts, recommend those with vitamin A derivatives like retinol, retinyl esters or retinaldehyde to improve fine lines and skin laxity. She explains: “Oxidative stress/UV radiation plays an important role in the skin aging process by creating enzymes that degrade collagen and elastin which ultimately lead to pigmentation and wrinkles. Wrinkle-fighting creams that contain vitamin A derivatives can promote new deposition of collagen and prevent its degradation by increasing Type I procollagen.” Collagen is a protein that gives skin its elasticity and firmness, which makes the skin appear more youthful. In a nutshell: start with retinol. How you layer products is also key to getting the highest return on your skin care investment. “After cleansing, the layering should go as follows: In the morning — exfoliator, toner, serum or gel, cream, any treatment product and then sunscreen. In the evening — exfoliator, toner, serum or gel, cream, retinoid,” says Natasha Sandy, M.D. of PolisheD Dermatology. Keep in mind that some concentrations of key ingredients can be irritating to certain skin types, so a pea-sized amount can go a long way. Story continues Key ingredients to keep an eye out for when scanning the label of anti-aging products, include hyaluronic acid, antioxidants like ascorbic acid (vitamin C) and vitamin E, glycolic acid, peptides and ceramides. We’ve rounded up a list of some of the best anti-aging products on the market, along with the benefits of each of these key ingredients — shop them below! Yahoo Lifestyle’s shopping team is committed to finding you the best products at the best prices. We may receive a share from purchases made via links on this page. Derma E Anti-Wrinkle Treatment Oil (Photo: Derma E) Shop it : Derma E Anti-Wrinkle Treatment Oil, $10 Antioxidants like vitamins E and C protect the skin from free radicals that damage cells, and vitamin A increases cell turnover (how we produce new skin cells). With a potent concentration of both, plus a safflower oil base, this vegan treatment oil comes highly recommended for individuals with sensitive skin. Use of this product can improve overall skin texture, minimize fine lines, brown spots and large pores, and stimulate collagen production. Neutrogena Hydro Boost Water Gel Lotion Sunscreen SPF 50 (Photo: Neutrogena) Shop it : Neutrogena Hydro Boost Water Gel Lotion Sunscreen SPF 50, $10 “Sun protection is the easiest way to protect the skin from aging, and should be started as early as possible,” says Chang. You can’t go wrong with anti-aging skincare that combines moisture and sun protection, and Neutrogena Hydro Boost Water Gel Lotion SPF 50 offers both, with the added bonus of being water light and virtually invisible under makeup. That means none of those white streaks or greasy residue that we normally see after applying sunscreen. CeraVe Hydrating Hyaluronic Acid Serum (Photo: CeraVe) Shop it : CeraVe Hydrating Hyaluronic Acid Serum, $19 Hyaluronic acid sounds scary, but it’s actually a powerful moisturizer and assists with intense hydration of the skin. “As we age, our skin loses hydrating elements, including ceramides and hyaluronic acid,” says Chang. So, it’s important to use products that replace those “elements.” CeraVe also contains ceramides, which seal in moisture, so this is a great product for those with extremely dry skin. And with a high concentration of hyaluronic acid, this serum hydrates and protects the skin, improving the appearance of dry lines. The Ordinary Glycolic Acid 7% Toning Solution (Photo: The Ordinary) Shop it : The Ordinary Glycolic Acid 7% Toning Solution, $9 Glycolic acid is an effective chemical exfoliant that gets rid of dead skin, boosts collagen and elastin production and evens the skin’s texture and tone, which is huge when addressing hyperpigmentation. The Ordinary is a brand known for its no-frills product range, and this toning solution acts as a mild chemical exfoliant. Mario Badescu Facial Spray with Aloe, Cucumber and Green Tea (Photo: Mario Badescu) Shop it : Mario Badescu Facial Spray with Aloe, Cucumber and Green Tea, $12 People with deeper, darker complexions tend to show signs of aging like hyperpigmentation more so than those with lighter complexions, and green tea helps to calm that inflammation and even the skin tone. Mario Badescu’s cult facial spray contains aloe, green tea and cucumber to calm, protect and hydrate the skin. Sandy also highly recommends adding products with green tea and caffeine for those in their 40s because they aid in cell regeneration. L'Oréal Paris Revitalift Derm Intensives Hyaluronic Acid Serum (Photo: L'Oréal Paris) Shop it : L'Oréal Paris Revitalift Derm Intensives Hyaluronic Acid Serum, $24 Hyaluronic acid is also a great hydrating agent loaded with anti-aging benefits, especially if you have a darker complexion and skin that’s oily. The cool thing about hyaluronic acid is that it’s found naturally throughout your body and can hold 1,000 times its weight in water! Talk about a moisturizer. Ole Henriksen C Your Best Selfie Brightening Moisturizer & Eye Crème Set (Photo: Ole Henriksen) Shop it : Ole Henriksen C Your Best Selfie Brightening Moisturizer & Eye Crème Set, $24 Vitamin C packs a powerful punch when it comes to stimulating collagen production, and brightening and firming the skin. All of the things we need for eyes that look youthful and well-rested. The C Your Best Selfie combo pack from Ole Henriksen contains Banana Bright Eye Crème (inspired by the beloved banana powder) to brighten dark under-eye circles, and C-Rush Brightening Gel Crème for a high dosage of vitamin C to target fine lines and provide lasting moisture. RoC Retinol Correxion Deep Wrinkle Anti-Aging Facial Serum (Photo: RoC) Shop it : RoC Retinol Correxion Deep Wrinkle Anti-Aging Facial Serum, $18 Most skin experts agree that retinol is a key ingredient in anti-aging skin care products. Retinol is a form of vitamin A that can increase cell turnover, which improves the texture of the skin, reduces fine lines and brown spots, as well as stimulates collagen and elastin. Adding RoC’s Deep Wrinkle Serum to your nighttime routine when the skin repairs itself from your long day of adulting is a step in the right direction. Read More from Yahoo Lifestyle: The best mascaras for longer, thicker eyelashes — starting at $7 Do hair vitamins really work? Here’s what a dermatologist says. The $18 leave-in conditioner Hailey Baldwin swears by Follow us on Instagram , Facebook , Twitter , and Pinterest for nonstop inspiration delivered fresh to your feed, every day. Want daily pop culture news delivered to your inbox? Sign up here for Yahoo’s newsletter. |
Democrats look to other lawsuits to block GOP lame-duck laws
MADISON, Wis. (AP) Wisconsin Democrats trying to undo laws passed by Republicans during a lame-duck session just before Gov. Scott Walker left office are putting their hopes behind a federal court challenge following a resounding legal defeat Friday. The conservative-controlled Wisconsin Supreme Court, breaking 4-3 along ideological lines, upheld the lame-duck session during which Republicans passed laws limiting the powers of incoming Democratic Gov. Tony Evers and Attorney General Josh Kaul. Most of the laws enacted just weeks before Walker left office after his November defeat have been reinstated and are in effect while the legal challenges proceed. The case decided on Friday turned on a procedural challenge to the calling of the session itself. A pending federal case gets at the laws passed, arguing that they violate the U.S. Constitution's free speech and equal protection guarantees, among other rights. Vincent Levy, an attorney for the Wisconsin Democratic Party in that lawsuit, said he was disappointed with the state court's ruling, but that he was confident "the federal courts, reviewing our claims with independence, will see things our way, and rule that the lame-duck laws unconstitutionally struck core principles of our democracy." Evers' attorney Tamara Packard said that given the current makeup of the state Supreme Court, political disputes such as those involving the lame-duck legislation may be better fought in federal court. There is another case being fought at the state level brought by unions challenging the laws before the Wisconsin Supreme Court. A federal judge has also separately blocked one provision that limited early voting, which was taken up as part of a larger case challenging laws approved prior to the lame-duck session. A group of liberal-leaning organizations led by the League of Women Voters sued in January alleging the laws are invalid because legislators convened illegally to pass them in December. The groups maintained the Legislature's session had ended months earlier and that the lame-duck floor session wasn't part of the Legislature's regular schedule. Story continues But the Supreme Court declared that the Wisconsin Constitution gives lawmakers the authority to decide when to meet. "The terminology the Legislature chooses to accomplish the legislative process is squarely the prerogative of the Legislature," the conservative majority wrote. Three liberal justices dissented, saying the Legislature went beyond what is constitutionally allowable when it convened the lame-duck session. Evers called the ruling a disappointment and "all too predictable." "It is based on a desired political outcome, not the plain meaning and text of the constitution," Evers said in a statement. He said the Wisconsin Constitution was designed to prevent lawmakers from quickly passing laws without public scrutiny. He called the lame-duck session "an attack on the will of the people, our democracy, and our system of government." Republican legislative leaders who orchestrated the lame-duck session heralded the ruling, calling it a "common sense decision." "This lawsuit, pursued by special interests and Governor Evers, has led to an unnecessary waste of taxpayer resources," Assembly Speaker Robin Vos and Senate Majority Leader Scott Fitzgerald said in a joint statement. "We urge the governor to work with the Legislature instead of pursuing his political agenda through the courts." Republican legislators in several states have passed laws in lame-duck sessions following election losses in recent years. In addition to the Wisconsin provisions, outgoing Michigan Gov. Rick Snyder signed lame-duck measures in December to weaken minimum wage and paid sick time laws. North Carolina Republicans approved a sweeping package of restrictions on incoming Democratic Gov. Roy Cooper in a December 2016 lame-duck session. Democrats have decried the tactics as brazen attempts to hold onto power. Wisconsin's laws prohibit Evers from ordering Kaul to withdraw from lawsuits, a move designed to prevent Evers from fulfilling a campaign pledge to withdraw Wisconsin from a multistate lawsuit challenging the Affordable Care Act. Evers pulled the state from the lawsuit while the lame-duck provisions were on hold in March and the court's ruling Friday will not undo that action. The laws also require Kaul to get permission from the Legislature's Republican-controlled finance committee before settling lawsuits, and force him to deposit settlement awards in the state general fund rather than in state Department of Justice accounts. The provisions also guarantee Republican lawmakers the right to intervene in lawsuits using their own attorneys rather than Kaul's DOJ lawyers. Other sections of the laws restrict early in-person voting to the two weeks before an election. The cities of Madison and Milwaukee, both Democratic strongholds, held early voting for six weeks leading up to last November's elections. Republicans hoped the shorter window would tamp down Democratic turnout in 2020, but a federal judge blocked the restrictions in January and the state's ruling does not trump that. ___ For The Latest on this story: http://bit.ly/2WYKWsG |
Shopify Stock: My Favorite Mistake Keeps Rising
Sometimes I get it wrong. I have been callingShopify(NASDAQ:SHOP) stock a bubble stock for nearly two years, ever since short-sale researcher Citron sent out a report questioning how real their customers were.
Source:Shopify via Flickr
Butthe louder I’ve wailed, the fasterSHOP stock has risen.Since the start of 2019, shares are up 136% with a market cap of $36.7 billion.
I’m not alone. Our Laura Hoy calls Shopify’s current valuationa real problem.Our Chris Tyler suggests youwait for the drop.
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Maybe everyone’s wrong. But there’s a reason why, while I might be extremely bearish on a stock, I never sell short.
Some credit for Shopify’s rise should go to their niche.
Shopify is a cloud-based app that lets anyone open a web store. It also re-sells apps that can make such a store attractive. That’s a fashionable niche. It’s where money wants to be this year. Cloud-based software companies pay one rent check to their hosts, one that can go down, and get monthly income from their subscribers, which can often go up. It’s a sweet, sweet business.
This week, Shopify held its annual Unite conference, heralding thenew capabilitiesof its platform. It issueda State of Commerce Report, filled with internet buzzwords that make you swoon,like mobile, social and brand loyalty.
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The company announced a two-day shipping service, giving merchantsAmazon-like fulfillment. A start-up called Avatria, which specializes in increasing conversion rates,now integrates with Shopify.The company alsobought Handshake, a wholesale portal, for under $100 million.
The purchase drew breathless gasps about Shopify competing directly withAmazon(NASDAQ:AMZN) andAlibaba(NASDAQ:BABA), which was launched as a wholesale portal 20 years ago. Asplitfrom privately-held Mailchimp, andthe chimp’s purchaseof a Shopify competitor called Lemonstand, got more tongues wagging.
The numbers, however, continue to look ugly for those seeking a safe investment in Shopify stock.
SHOP did $320 million of business in its last quarter, less than in the December quarter, and has yet to see a profit. Operating cash flow was just $24 million for March and, while the company has about $2 billion in cash and short-term securities in the bank, with under $100 million in debt, you’re paying 30 times sales and 367 times operating cash flow if you buy now.
Shopify stock is putting bears through a classic short squeeze, with 28% of the stock’s volume being short interest as trade opened. A short squeeze can take a stock well beyond its fundamental value, because those who are short have borrowed shares, and must“buy them back or go to prison.”
Bulls are calling Shopify’s Unite announcementsa reason to buy SHOP stock, saying the new Shopify Plus can go head-to-head with Amazon, which has stopped buying from small suppliers andtold them to build their own stores.
Much of what I’m reading about Shopify sounds like hype, but it will squeeze the shorts until they collapse, and there are indications that is starting to happen.
Our Luke Lango asked in late May when Shopifymight hit $300.It has since blown past that number and keeps rising.
But I also know this. Every bubble bursts. Every short squeeze ends. Every company eventually trades at something like its fundamental value, albeit with a discount or premium based on the type of business it’s in.
When the Shopify bubble pops, there’s a long way it can fall before hitting anything like fundamental value. If you’re in it, congratulations and good luck to you. I’m going to keep sitting this dance out.
Dana Blankenhornis a financial and technology journalist. He is the author of a new environmental story,Bridget O’Flynn and the Bear, available now at the Amazon Kindle store. Write him atdanablankenhorn@gmail.comor follow him on Twitter at@danablankenhorn. As of this writing he owned shares in MSFT.
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Magazine columnist E. Jean Carroll: 'Donald Trump assaulted me'
Magazine columnist E. Jean Carroll alleges she was sexually assaulted by President Trump during the 1990s, in a dressing room at Bergdorf Goodman. However, Trump tweeted in response: “I’ve never met this person in my life.” Carroll makes the allegations in her upcoming book What Do We Need Men For? A Modest Proposal (published July 16), and excerpted in the latest issue of New York magazine ’s The Cut . The article is titled, “Hideous Men. Donald Trump assaulted me in a Bergdorf Goodman dressing room 23 years ago. But he’s not alone on the list of awful men in my life.” Famous magazine advice columnist E. Jean Carroll alleges President Trump sexually assaulted her in the 1990s. (Photo: Getty Images) The 75-year-old advice columnist, who then worked as a cable television host, says she was shopping at the luxury department store one evening in either 1995 or 1996 when “One of New York’s most famous men” walked in and said, “Hey, you’re that advice lady!” “Hey, you’re that real-estate tycoon!” Carroll, then 52, responded. According to Carroll, Trump was at the store to buy a present for “a girl” whom he didn’t name. However, the now-president was married to Marla Maples (the mother of Tiffany Trump ) from 1993 to 1999. Noting that Trump “yammers about himself like he’s Alexander the Great ready to loot Babylon,” the pair walked around the store, debating handbags and hats, making their way up to the lingerie floor where Trump allegedly demanded that Carroll try on a lacy, sheer bodysuit. Carroll demurred but says Trump grabbed her arm and guided her to a dressing room. “The moment the dressing-room door is closed, he lunges at me, pushes me against the wall, hitting my head quite badly, and puts his mouth against my lips,” wrote Carroll. “I am so shocked I shove him back and start laughing again. He seizes both my arms and pushes me up against the wall a second time, and, as I become aware of how large he is, he holds me against the wall with his shoulder and jams his hand under my coat dress and pulls down my tights.” Donald Trump and his former wife Marla Maples, pictured in 1995. (Photo: Getty Images) Carroll wrote that the now-president unzipped his pants, “forcing his fingers around my private area” and thrusted himself “halfway — or completely, I’m not certain — inside me.” Calling the encounter a “colossal struggle,” she tried pushing him off, eventually separating with the force of her knee. Story continues The writer ran from the dressing room and out of Bergdorf Goodman, later confiding to two friends, one of whom she says tells her, “He raped you. He raped you. Go to the police! I’ll go with you. We’ll go together.” Carroll’s other friend allegedly warned, “Tell no one. Forget it! He has 200 lawyers. He’ll bury you.” Both women confirmed Carroll’s story to New York magazine. Carroll preemptively addresses potential reader concerns: She did not file a police report and has no tangible evidence. Security cameras may have captured a vague snapshot of what occurred, she wrote, but Bergdorf Goodman does not possess such dated footage. There were no salespeople in view to corroborate her account. And Carroll says fear of death threats and the dissolution of her reputation has kept her silent. “Also, I am a coward,” she wrote. Among Carroll’s list of 21 “Hideous Men”— the most “revolting scoundrels I have ever met — she names Les Moonves, the former CEO of CBS, who was fired in 2018 after allegations of sexual misconduct from many women. The president has denied every sexual assault allegation that has come to light. A representative of the White House did not return Yahoo Lifestyle’s request for comment. According to The Cut , the White House responded to Carroll’s story by saying, “This is a completely false and unrealistic story surfacing 25 years after allegedly taking place and was created simply to make the President look bad.” On Friday, Trump released a statement that read. “...I’ve never met this person in my life. She is trying to sell a new book — that should indicate her motivation. It should be sold in the fiction section.” “Shame on those who make up false stories of assault to try to get publicity for themselves, or sell a book, or carry out a political agenda,” he said, comparing Carroll to Julie Swetnick, one of a few women to accuse Judge Brett Kavanaugh of sexual assault in 2018. The president pointed out Carroll’s absence of evidence and accused her of “working with” the Democratic party. “The world should know what’s really going on,” read the statement. “It is a disgrace and people should pay dearly for such false allegations.” NEW: President Trump responds to sexual assault allegations by E. Jean Carroll, saying `I've never met this person in my life' pic.twitter.com/qAyFStIYzq — Laura Litvan (@LauraLitvan) June 21, 2019 Yahoo Lifestyle was not immediately able to reach Carroll for comment. Read more from Yahoo Lifestyle: President Trump says America has 'a new Jackie O': 'It's called Melania T' CNN under fire for Melania Trump 'Woman of Mystery' show: 'Please tell me you asked her about being a birther' Ivanka Trump Collected $4 Million Last Year From Dad's Controversial Washington Hotel Follow us on Instagram , Facebook , Twitter and Pinterest for nonstop inspiration delivered fresh to your feed, every day. |
Why Focusing on Diversity Numbers Won't Really Make Companies More Inclusive
Diversity is simply good for business: Companies with greater gender diversity in their leadershipoutperform their less diverse competitors, have higher returns on capital, and are credited with better employee engagement and retention. These companies have more engaged customers, are more relevant to a broader customer base, are more innovative, and better at problem-solving. The same goes for companies that are more ethnically and racially diverse.
Yet while most C-Suite leaders know this, progress in making corporate America more diverse and inclusive, particularly in its leadership, remains far too slow—and in some cases, the industry has regressed. As of last year, there were only three black CEOs running Fortune 500 companies, which is actuallydown from seven in 2007.
Despite earnest efforts, it seems like no one in corporate America has really cracked the code on how to make U.S. companies and workplaces more reflective of the diverse makeup of our country.
Part of the problem is that the fixation on diversity numbers dominates the dialogue around diversity and inclusion. But just looking at the numbers may not be the best indicator for progress. While numbers are incredibly important—they provide a needed snapshot of how an organization’s employee base is made up, and can measure things like attraction, retention, and promotion—a focus on diversity numbers alone can create dangerous tunnel vision. By only targeting diversity numbers, businesses can end up failing to deal with the underlying causes of how an organization’s diversity makeup came to be, and what the culture of the organization is like.
The fact is, business leaders should balance their approach by paying more attention to company culture. Workplace culture is critical to advancing diversity targets, and also creates greater equity, unity, and opportunities for minorities, women, and other underrepresented employees. Establishing a workplace where each employee feels comfortable bringing their true selves to work is key to supporting them to stay, thrive, grow, and contribute within an organization. This means making efforts so that employees are aware of (and can prevent) unconscious bias in the workplace, can have open conversations about inclusion-related issues, and feel understood by their teams and management. Employees also learn best when encouraged to actively seek the opinions and perspectives of those who are different from them.
Moreover, diversity and inclusion efforts only work when they are integrated into the core of an organization’s strategy, not siloed away from the center, deprioritized as needed to drive financial results, or tacked on as an extracurricular. Moving the needle on diversity and inclusion requires deliberate planning, and expert execution—and like other business challenges, diversity and inclusion planning requires accountability.
The CEO Action for Diversity and Inclusion, a 700-organization strong coalition committed to changing the diversity landscape in our workplaces and communities (of which I am co-founder), is working to drive that accountability. To do so, we are introducing, as the new CEOpledge commitment, a promise by signatories to present or review diversity and inclusion plans with their boards of directors starting this year.
By presenting such targeted plans to their respective boards, participating CEOs will be underscoring their commitment to real change in their organizations, opening themselves to valuable input from the wisest stewards of their businesses, and ultimately receiving increased support from the organization as a whole to put plans into action. The CEOs that present these plans are also putting into place a mechanism which holds them accountable to their employees to make the workplace better for all.
America’s workplace diversity and inclusion problem is a systemic one—it’s larger than any one company, industry, or sector and is just too big to solve company-by-company. Today’s societal issues are the result of years of institutional racism, conscious and unconscious bias, and lack of access to education and resources in underserved populations. We simply cannot undo all of these deep issues one shop at a time.
Ultimately, a few (read: top, well-resourced) companies fixing their diversity and inclusion issues will not solve the problem for all. Not everyone can work for the handful of companies with stellar diversity programs, and we cannot be satisfied by fixing diversity issues only at organizations that have an abundance of resources to throw at the problem.
And these issues potentially affect most if not all workplaces in this country, not just corporate ones. For that reason, the CEO Action now includes organizations outside of just Fortune 500 companies—smaller businesses, colleges and universities, and nonprofits—because all organizations and institutions should have the same level of access to diversity and inclusion resources.
We need to tackle the issue collectively to bring about lasting change. Leaders and their employees must join forces to reach across industries, silos, and aisles, and form meaningful relationships that drive action, accountability, and a continuously rising standard. As CEOs, our time as leader is limited. We can focus on our bottom line but we also have a rare opportunity to make our society more fair and equitable for all.
Tim Ryan is U.S. chairman and senior partner ofPricewaterhouseCoopers and co-founder of CEO Action for Diversity and Inclusion.
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Majesco (NASDAQ:MJCO) Shareholders Booked A 52% Gain In The Last Three Years
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One simple way to benefit from the stock market is to buy an index fund. But many of us dare to dream of bigger returns, and build a portfolio ourselves. For example, theMajesco(NASDAQ:MJCO) share price is up 52% in the last three years, clearly besting than the market return of around 39% (not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 34%.
View our latest analysis for Majesco
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
During three years of share price growth, Majesco moved from a loss to profitability. That would generally be considered a positive, so we'd expect the share price to be up.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. It might be well worthwhile taking a look at ourfreereport on Majesco's earnings, revenue and cash flow.
Pleasingly, Majesco's total shareholder return last year was 34%. That's better than the annualized TSR of 15% over the last three years. The improving returns to shareholders suggests the stock is becoming more popular with time. 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 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. |
While Risky, Charlotte’s Web Is Too Cheap to Ignore
Over the course of the last couple of months, Charlotte’s Web ( CWBHF ) has taken a beating due to U.S Food and Drug Administration concern over CBD products. The stock offers all of the catalysts desired for a cannabis company including national expansion and the uplisting to a major stock exchange suggesting now is the time to really dig into the opportunity with the stock trading around $14.50. Rapid Expansion Charlotte’s Web is the premier company focused solely on the production and distribution of hemp-derived cannabidiol or CBD wellness products. Most other companies in the space are chasing the CBD market as part of a diversified retail plan that includes opening retail locations and cultivation of cannabis. The CBD market is expected to see substantial growth in the next few years. The company quotes a revenue target in the $7 billion range by 2023. Other research firms such as Cowen forecasts the CBD market to reach $16 billion by 2025. Either way, the U.S. CBD market is expected to see rapid expansion over the next five years. In this regard, the market likely didn’t like that Charlotte’s Web only reported slight revenue growth in Q1. The company posted revenues of $21.7 million, only up $0.2 million from the prior quarter. On top of that, management kept guidance for 2019 revenues of $120 to $170 million leaving open the door for only minimal growth. The market wants to see substantial growth despite the stock not trading at a rich valuation anymore. Irrational Sell Off The stock is down about 40% from the early April high above $25. With 95 million shares outstanding, Charlotte’s Web has a market valuation of just shy of $1.4 billion. The revenue goal based on analyst estimates is in the $350 million for 2020. The stock trades at a very reasonable 3x forward sales estimates for a company with the potential for a premium brand positioning in the health and wellness sector of CBD. A couple of issues hit the stock after reaching that blow off top in early April where the stock nearly doubled in a month. First, the company priced a secondary offering on May 9 for C$140 million worth of shares at C$20 per share. Second, the FDA held a hearing where the federal regulators questioned the long-term safety of CBD with suggestions that food and dietary products might not obtain approval for infusing CBD. Story continues Charlotte’s Web is solely focused on CBD so the company has a higher risk that new FDA regulations could impact the business. Takeaway The key investor takeaway is that Charlotte’s Web is likely to trade volatile like any cannabis related stock due to government regulations. The market appears to have missed the uplisting to the Toronto Stock Exchange at the end of May due to the passing of the 2018 Farm Bill. Now that the froth is out of the stock, investors should look to play Charlotte’s Web on the over played FDA risks and concerns about growth. An uplisting to a major U.S. stock exchange along with a another quarter of substantial growth from expanding with national retailers will have the stock back to old highs before long. To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here . Read more on Charlotte’s Web: Marijuana Stock Charlotte’s Web Looks Appealing at Current Levels This Cannabis Stock Is Not Only Friendly to Pets, but Also to Shareholders More recent articles from Smarter Analyst: Is 33% Upside Good Enough to Risk Buying Fitbit (FIT) Stock? Deutsche Bank Doesn't Think So Deutsche Bank Remains Sidelined on AMD Stock; Here's Why Antitrust Investigation Is Not a Major Threat to Alphabet (GOOGL) Stock, Says Top Analyst Tesla's (TSLA) Gigafactory Is Impressive, But Its Stock Isn't, Says RBC Capital |
The Milestone Scientific (NYSEMKT:MLSS) Share Price Is Down 86% So Some Shareholders Are Rather Upset
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Every investor on earth makes bad calls sometimes. But really big losses can really drag down an overall portfolio. So take a moment to sympathize with the long term shareholders of Milestone Scientific Inc. ( NYSEMKT:MLSS ), who have seen the share price tank a massive 86% over a three year period. That would certainly shake our confidence in the decision to own the stock. And more recent buyers are having a tough time too, with a drop of 59% in the last year. The good news is that the stock is up 2.5% in the last week. We really feel for shareholders in this scenario. It's a good reminder of the importance of diversification, and it's worth keeping in mind there's more to life than money, anyway. View our latest analysis for Milestone Scientific Milestone Scientific isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size. In the last three years Milestone Scientific saw its revenue shrink by 6.1% per year. That's not what investors generally want to see. The share price fall of 48% (per year, over three years) is a stern reminder that money-losing companies are expected to grow revenue. This business clearly needs to grow revenues if it is to perform as investors hope. Don't let a share price decline ruin your calm. You make better decisions when you're calm. The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart. AMEX:MLSS Income Statement, June 21st 2019 We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. So it makes a lot of sense to check out what analysts think Milestone Scientific will earn in the future (free profit forecasts) . Story continues A Different Perspective While the broader market gained around 6.4% in the last year, Milestone Scientific shareholders lost 59%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 28% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought. You can find out about the insider purchases of Milestone Scientific by clicking this link. If you like to buy stocks alongside management, then you might just love this free list 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 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. |
Options Bulls Circle as Analysts Cut Micron Price Targets
Micron Technology, Inc. (NASDAQ:MU)is trading down 3.4% today at $33, after J.P. Morgan Securities slashed its price target on the chip stock to $50 from $64. The brokerage firm said it will take the company "some time to normalize" after the U.S. blacklisting of Chinese telecom Huawei, and expressed concern over tough memory chip pricing.
J.P. Morgan Securities also lowered its full-year profit forecast for Micron ahead of the chipmaker's Tuesday evening event, a sentiment echoed in a bearish note from Baird. The latter firm lowered its 2019 forecast for MU, too, and cutting its price target on the stock to $28 from $32.
The stock's negative reaction to this bearish brokerage attention just echoes its recent trajectory. In fact, since a late-April rejection near $44 -- a stiff ceiling for MU in 2019 -- the shares are down more than 25%. And while they've found a floor just above their year-to-date breakeven level of $31.74, the 30-day moving average appears to be emerging as potential resistance.
History doesn't provide many clues on how Micron stock may react to earnings in next Wednesday's trading. The security has closed higher the day after earnings in four of the last eight quarters, including a 9.6% pop in March. This is about in line with what the options market is pricing in for this time around, regardless of direction.
Today's options traders appear to be betting on a post-earnings pop. Amid accelerated call volume -- the 65,000 contracts traded so far is 1.4 times the average intraday amount -- the July 35 strike is most active. It looks as if new positions are being purchased here for a volume-weighted average price of $1.26, which would make breakeven for thecall buyers$36.26 (strike plus premium paid). |
Hedge Funds Have Never Been This Bullish On Coupa Software Incorporated (COUP)
You probably know from experience that there is not as much information on small-cap companies as there is on large companies. Of course, this makes it really hard and difficult for individual investors to make proper and accurate analysis of certain small-cap companies. However, well-known and successful hedge fund managers like Jeff Ubben, George Soros and Seth Klarman hold the necessary resources and abilities to conduct an extensive stock analysis on small-cap stocks, which enable them to make millions of dollars by identifying potential winners within the small-cap galaxy of stocks. This represents the main reason why Insider Monkey takes notice of the hedge fund activity in these overlooked stocks.
IsCoupa Software Incorporated (NASDAQ:COUP)an exceptional investment today? The best stock pickers are getting more optimistic. The number of long hedge fund bets inched up by 5 in recent months. Overall hedge fund sentiment towards the stock currently sits at its all time. This is usually a bullish signal. We observed this in three other stocks:Adobe,DisneyandWorldpay. Disney outperformed the market by 23 percentage points whereas Worldpay and Adobe beat it by 6 points.
So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio.
Let's check out the new hedge fund action surrounding Coupa Software Incorporated (NASDAQ:COUP).
At the end of the first quarter, a total of 41 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 14% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards COUP over the last 15 quarters. With hedgies' sentiment swirling, there exists an "upper tier" of noteworthy hedge fund managers who were adding to their holdings substantially (or already accumulated large positions).
Among these funds,Whale Rock Capital Managementheld the most valuable stake in Coupa Software Incorporated (NASDAQ:COUP), which was worth $285.9 million at the end of the first quarter. On the second spot was Sylebra Capital Management which amassed $281.8 million worth of shares. Moreover, Alkeon Capital Management, Duquesne Capital, and SoMa Equity Partners were also bullish on Coupa Software Incorporated (NASDAQ:COUP), allocating a large percentage of their portfolios to this stock.
As one would reasonably expect, key money managers were breaking ground themselves.Hitchwood Capital Management, managed by James Crichton, initiated the most valuable position in Coupa Software Incorporated (NASDAQ:COUP). Hitchwood Capital Management had $54.6 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell'sArrowstreet Capitalalso initiated a $10.1 million position during the quarter. The following funds were also among the new COUP investors: Zach Schreiber'sPoint State Capital, Brian Ashford-Russell and Tim Woolley'sPolar Capital, and Steve Cohen'sPoint72 Asset Management.
Let's also examine hedge fund activity in other stocks similar to Coupa Software Incorporated (NASDAQ:COUP). We will take a look at Pilgrim's Pride Corporation (NASDAQ:PPC), First Solar, Inc. (NASDAQ:FSLR), Leggett & Platt, Inc. (NYSE:LEG), and Equitrans Midstream Corporation (NYSE:ETRN). All of these stocks' market caps are closest to COUP's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position PPC,14,140859,-3 FSLR,23,358479,1 LEG,10,27949,1 ETRN,19,559560,-9 Average,16.5,271712,-2.5 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 16.5 hedge funds with bullish positions and the average amount invested in these stocks was $272 million. That figure was $1385 million in COUP's case. First Solar, Inc. (NASDAQ:FSLR) is the most popular stock in this table. On the other hand Leggett & Platt, Inc. (NYSE:LEG) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Coupa Software Incorporated (NASDAQ:COUP) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Hedge funds were also right about betting on COUP as the stock returned 39.5% 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.
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Could Marsden Maritime Holdings Limited's (NZSE:MMH) Investor Composition Influence The Stock Price?
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Every investor in Marsden Maritime Holdings Limited (NZSE:MMH) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.
Marsden Maritime Holdings is not a large company by global standards. It has a market capitalization of NZ$219m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about MMH.
View our latest analysis for Marsden Maritime Holdings
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
We can see that Marsden Maritime Holdings does have institutional investors; and they hold 5.0% of the stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Marsden Maritime Holdings's historic earnings and revenue, below, but keep in mind there's always more to the story.
Marsden Maritime Holdings is not owned by hedge funds. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own some shares in Marsden Maritime Holdings Limited. It has a market capitalization of just NZ$219m, and insiders have NZ$8.3m worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board, though I generally prefer to see bigger insider holdings. But it might be worth checkingif those insiders have been selling.
The general public, with a 17% stake in the company, will not easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
It seems that Private Companies own 21%, of the MMH stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow for free.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
U.S. cities brace for immigration raids, say they will not participate
WASHINGTON (Reuters) - U.S. cities expecting to be hit by a wave of immigration raids intended to deport recently arrived families who are in the United States illegally said on Friday they would not cooperate with federal authorities. In a call with reporters earlier this week, Mark Morgan, the acting director of the U.S. Immigration and Customs Enforcement, said the agency would target for deportation families that have received a removal order from a U.S. immigration court. The Washington Post reported on Friday that the operation is slated to launch on Sunday and is expected to target up to 2,000 families facing deportation orders in as many as 10 U.S. cities, including Houston, Chicago, Miami and Los Angeles. A spokesman for ICE declined to comment, saying it would not offer details on operations before their conclusion. Chicago's Mayor Lori Lightfoot said she had terminated ICE's access to Chicago Police Department (CPD) databases related to federal immigration enforcement activities in response to the threat of raids. "I have also personally spoken with ICE leadership in Chicago and voiced my strong objection to any such raids. Further, I reiterated that CPD will not cooperate with or facilitate any ICE enforcement actions," Lightfoot said in a statement. The Los Angeles Police Department said in a series of tweets it would not participate or assist in the immigration enforcement actions. Houston's Mayor Sylvester Turner noted in a statement the "rich cultural contributions" of the city's immigrants, and said: "The city does not try to do ICE's job, nor does it try to impede ICE." Morgan said earlier this week that ICE wanted to deport families who had recently arrived illegally in the United States to discourage more Central Americans from arriving. The number of migrants apprehended crossing the U.S.-Mexico border surged in May to the highest level since 2006. Most of the migrants are fleeing violence, poverty and corruption in Central America, and are seeking asylum, a process that can take years. Many families are released into the United States for the duration of the process because of limits on how long children can be detained. Story continues The Department of Homeland Security did not immediately respond to a request for comment. Separately, the governor of Texas said the state was deploying 1,000 National Guard troops to the border after he said more than 45,000 people were apprehended illegally crossing in the past three weeks. (Reporting by Kristina Cooke and Makini Brice; Additional reporting by Tim Ahmann; Editing by Chris Reese and Rosalba O'Brien) |
Qualcomm (QCOM) Faces Challenges, But the Stock Remains a ‘Buy’
With Qualcomm (QCOM) shares rising 50% then quickly falling 25%, many are wondering how to play the stock.
While the company scored a major victory with an agreement with Apple to develop 5G on the iPhone, it also recently lost a major court decision that effectively ruled the company had to curb some anticompetitive practices to even the playing field with their competitors. More recently, geopolitics is playing a prominent role in the stock’s volatility, with the US-China tension making investors feeling uneasy about Qualcomm and many other companies that rely on a strong US-China relationship.
But in the long term, Morgan Stanley analystJames Faucetteis a buyer, as he maintains his Overweight rating with a $95 price target. (To watch Faucette's track record,click here)
Though Faucette is cutting his estimates for 2019 and 2020, he expects Qualcomm’s share of Apple’s production mix to increase to 60%. Faucette expects the Apple agreement to add $2 in EPS at “full ramp,” which he expects to take 18 months. But he doesn’t think it stops there, believing “further opportunities with Apple could exist in connectivity use cases beyond handset and in potential RF attachments.”
Tensions between the US and China are also contributing to concern over Qualcomm’s stock. Because of the Huawei ban, Faucette says he “reduced [his] assumption of Huawei’s contribution to…$0” this quarter, from about 2% of revenue. But as Huawei is expecting to see a massive slowdown in sales and shipments, Faucette sees Qualcomm playing a role in filling the empty void. He estimates Qualcomm “could see an incremental [EPS increase of] $0.30-$0.70” as a result.
Overall, Qualcomm is looked at as the leader of 5G and many see this as contributing to the agreement with Apple. As a result of the agreement, Qualcomm’s stock surged 50% in the aftermath, as rival Intel dropped out of 5G, paving the way for Qualcomm to work with Apple on bringing 5G to the iPhone. But with the recent ruling against Qualcomm, it is possible that Apple could renegotiation the terms of their deal, though many do not see this happening as Qualcomm is holding most of the cards through its leadership in 5G.
All in all, while Qualcomm is facing some pressure from China and the courts, Wall Street is still bullish on the company going forward.TipRanks analysisof 24 analyst ratings shows a consensus Moderate Buy rating, with 14 analysts saying Buy, nine saying Hold and only one recommending Sell. The average price target among these analysts stands at $85.29, about 19% above current levels.
Read more on QCOM:
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How This Canopy Founder Raised Millions With His Idea To Take the Pain Out of Tax Work
Kurt Avarell was working as aWall Street tax attorney when he got the idea forCanopy, a cloud-based suite that streamlines the work process for tax professionals and accountants by eliminating tasks that could be automated. Avarell started the company in 2014, coding the software in his basement, and has since raised $72 million in funding as its CEO.Last year, Canopy was named one of CB Insight’s Top Fintech Startups.
Each week, GOBankingRates sets out to discover what makes the people behind top companies tick. We like to call this series “Best in Business” — andAvarellreally is one of the best. He told us how he went from tax lawyer to pro coder, why customer feedback is so essentialand shared a fewways that you canfind (or build) your own dream job, too. Below, find our favorite moments from the story of howAvarelllaunched his business.
Inspiration to start Canopy was not just one particular moment but was born out of my experience as a tax practitioner, struggling under the weight of complex admin that is par for the course in the industry. The typical process that a tax professional follows includes a significant amount of paperwork and Excel spreadsheets, which is a very inefficient way to record information. In addition to this, clients really don’t appreciate having a lot of paperwork, and this negatively impacts client relationships. As a result, I aspired to develop a cloud-based solution that modernizes and humanizes the way tax professionals work.
I think there are a huge number of worries that any entrepreneur has when they start their own company. My biggest fear was probably not having the technical knowledge and engineering background necessary to build the best product possible from the ground up. With technology, without that education, it is very hard to get a very specific idea from one’s head to reality, and I knew that going in.
I started my career as a lawyer, so when I saw the lack of effective and intuitive software available to help tax professionals accomplish their work quickly, I really didn’t know where to start from an engineering perspective. I worked with a number of different people whose expertise was in computer science to develop the idea I had for Canopy. However, without the intimate knowledge of how coding actually works, it was very difficult to arrive at an end result that fit what I had in mind.
This was by far one of the biggest challenges I had going from the initial idea to the actual business — building the software. As a result, I spent six months doing nothing but learning how to code. The result has been really beneficial and enabled me to actually go from idea to inception. Currently, I can work very closely with the engineering team to continuously refine our products.
Read:How I Manage My Time as an Entrepreneur So I Don’t Go Insane
Working in law in New York City, there are a number of things I knew I wanted to leave there. I did not want to create an environment at Canopy where employees felt stressed, where they didn’t have a good work-life balance and where they felt like upper management didn’t care about them. The idea can sound cliche, but I believe that employees work better when they are in a non-competitive environment where they feel supported.
There have been a lot of really exciting milestones that Canopy has hit since we started in 2014. Canopy has grown from just me to over 300 employees and taken in $72 million in funding so far. However, my goal when I created Canopy was to solve the inefficiencies in a notoriously complex and laborious industry. So, when I think about success, I think about the feedback we receive from our customers — from individual practitioners to bigger accounting firms. The feedback has been overwhelmingly positive, and I see success as continuing in the same direction by adding new features, products and offerings to continuously improve our customers’ experience.
Success can be a lot of things. For me, today, success is measured by how much easier Canopy’s software makes life for our clients. If a client is able to save X number of hours in a week and that enables them to take on X number of new clients, making X times the amount of money they made pre-Canopy — that is [a] success for me.
Click through to read abouteight entrepreneurs who started with less than $15,000 and made millions.
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This article originally appeared onGOBankingRates.com:How This Canopy Founder Raised Millions With His Idea To Take the Pain Out of Tax Work |
Did You Manage To Avoid Milestone Scientific's (NYSEMKT:MLSS) Devastating 86% Share Price Drop?
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As every investor would know, not every swing hits the sweet spot. But really bad investments should be rare. So consider, for a moment, the misfortune ofMilestone Scientific Inc.(NYSEMKT:MLSS) investors who have held the stock for three years as it declined a whopping 86%. That would certainly shake our confidence in the decision to own the stock. And more recent buyers are having a tough time too, with a drop of 59% in the last year. It's up 2.5% in the last seven days.
While a drop like that is definitely a body blow, money isn't as important as health and happiness.
See our latest analysis for Milestone Scientific
Given that Milestone Scientific didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last three years Milestone Scientific saw its revenue shrink by 6.1% per year. That's not what investors generally want to see. The share price fall of 48% (per year, over three years) is a stern reminder that money-losing companies are expected to grow revenue. We're generally averse to companies with declining revenues, but we're not alone in that. There's no more than a snowball's chance in hell that share price will head back to its old highs, in the short term.
The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart.
We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Thisfreereport showing analyst forecastsshould help you form a view on Milestone Scientific
Investors in Milestone Scientific had a tough year, with a total loss of 59%, against a market gain of about 6.4%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 28% per year over five years. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality businesses. 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. |
Is Ghee Good for You?
Consumer Reports has no financial relationship with advertisers on this site. Consumer Reports has no financial relationship with advertisers on this site. Ghee a type of clarified butterseems to be everywhere these days. You may have seen jars of it on the shelves at Trader Joes or Whole Foods and wondered what it is. And thanks partly to the high-fat Keto diet craze, ghees popularity in the U.S. has soared: Fans are tossing their pasta with ghee and even dropping dollops of it into their morning coffee. Proponents claim that it can do everything from enhance weight loss to prevent dementiabut does it do those things, and is it really good for you? Ghee Nutrition Ghee is made by heating butter, which causes the water to evaporate and the milk solids to settle. The white to deep yellow liquidpure butterfatthat remains is ghee. It tastes deliciouslike a nutty, rich butterand is a common ingredient in South Asian cooking. But, like regular butter, its high in saturated fat , so its no health food, says Wahida Karmally, R.D., a special research scientist at Columbia University. Saturated fat raises the level of LDL (bad) cholesterol in the blood, she notes. And high levels of LDL cholesterol can lead to blockages in arteries that can cause heart attacks and strokes. Lately there has been some controversy around the health hazards of saturated fats, after a few studies failed to find a link between saturated fat and an increased risk of heart disease and death. But scientists say these results need to be put in the context of peoples overall diet. Indeed, other research has found that when people replace saturated fats with refined carbohydrates, their risk of heart disease doesnt fall. But when they swap saturated fats for unsaturated fats, it does decline. The Dietary Guidelines for Americans recommend that people consume less than 10 percent of their daily calories from saturated fats. The American Heart Association is even stricter: It says people should get only 5 to 6 percent of their calories per day from saturated fat. A tablespoon of ghee has about 130 calories and 14 grams of fatand 10 grams of that fat is saturated. (The same amount of butter has 102 calories and 12 grams of fat, 7 of them saturated.) Story continues Depending on which recommendation you go with, a tablespoon of ghee supplies someone who eats 1,800 calories daily with about half to nearly all of the saturated fat he or she should have in a day. Ghee does have vitamins A, E, and K, but youd have to eat so much ghee to get a significant amount, says Lisa Sasson, a clinical professor in the department of nutrition and food studies at New York University. The Health Claims The dangers of saturated fats are why scientists like Karmally are concerned by the rise of gheeand why theyre flummoxed by the unusual trend of people adding it to their morning coffee. (That practice took off several years ago with the launch of the Bulletproof brand of coffee, ghee, and supplements.) Advocates say it makes them feel full, allowing them to skip breakfast and supposedly leading to weight loss. Some ghee enthusiasts say it promotes mental clarity and may event prevent dementia. Ghee is used in Ayurveda, the ancient Indian medical system, where it is believed to aid digestion, flexibility, and memory and is often combined with medicinal herbs. But there is no scientific evidence to support ghees role in health, says Karmally. Indeed, there are only a handful of scientific studies looking at the health effects of ghee. In most of them, the subjects are rats. Should You Use Ghee? Sasson says a small amounta teaspoon or soof ghee is fine to use as a flavor enhancer, especially if it encourages you to eat other healthy foods. If somebody uses a little ghee on a lot of vegetables , whole grains , and beans , thats a great diet, she says. Still, there are much better options when it comes to choosing fats . Go for foods that are good sources of monounsaturated fats (like avocados and olive oil) and polyunsaturated fats (like soybean oil and corn oil) instead, says Walter C. Willett, professor of epidemiology and nutrition at the Harvard T.H. Chan School of Public Health. Polyunsaturated fats, in particular, lower levels of LDL cholesterol and boost levels of HDL (good) cholesterol. Research also suggests that polyunsaturated fats reduce the formation of blood clots and ease inflammation, Willett says. And what about stirring ghee into your coffee? If you insist on adding some fat to your cup of coffee, Willet says it would be better to put some olive oil in it. More from Consumer Reports: Top pick tires for 2016 Best used cars for $25,000 and less 7 best mattresses for couples Consumer Reports is an independent, nonprofit organization that works side by side with consumers to create a fairer, safer, and healthier world. CR does not endorse products or services, and does not accept advertising. Copyright © 2019, Consumer Reports, Inc. |
Negative Analyst Notes Both Hurt -- and Help -- Tesla Stock
Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. But do these analysts even know what they're talking about? Today, we're taking one high-profile Wall Street pick and putting it under the microscope... Just one day after Tesla (NASDAQ: TSLA) got rocked by a pair of analysts reiterating their sell ratings -- sending the stock down 3% -- shares of the world's most famous electric-car maker are mostly sidelined today on apparently conflicting reports from two more analysts. Let's find out why. Red Model 3 as seen from above Image source: Tesla. What happened yesterday Uniformly negative notes out of RBC Capital and Goldman Sachs torpedoed the stock's recent rally. From the first trading day of June through Wednesday, Tesla -- which had been under pressure on worries of flagging demand for its Model 3 sedan -- surged 26% higher as investors began taking to heart CEO Elon Musk's prediction that Q2 2019 could see Tesla report "the highest deliveries/sales quarter in Tesla history!" But contradicting this optimistic tone, on Thursday RBC warned that in fact, "2Q19 total deliveries may come in toward the low-end of guidance." Furthermore, as relayed by StreetInsider.com (subscription required), in reaching for even the lower end of its guidance, "TSLA is sacrificing profitability to focus on unit growth." Meanwhile, fellow investment banker Goldman Sachs attacked Tesla from an entirely different direction: Conceding before the fact that "2Q19 should be fine," Goldman shifted its fire to the second half of this fiscal year, warning that "2H19 (and beyond) volume estimates look high considering there are fewer levers to pull to stoke demand going forward." Investors predictably panicked, and Tesla stock fell 3%. What's happening today And yet, bad as these two reports make things sound, other analysts are a bit more optimistic on the Tesla front -- with one even finding silver linings around the cloudier forecasts. Story continues Today, R.W. Baird reiterated its outperform rating on Tesla stock, and raised its price target a bit (from $340 to $355). Its reason: "[W]e think expectations have overshot to the negative and we believe there are several catalysts upcoming which could drive shares higher (beginning with the upcoming delivery release)." Moreover, in an apparent reference to the previous day's notes coming out of RBC (criticizing Tesla's profits) and Goldman (downplaying Q2 deliveries), Baird observed: "[W]e have noticed bear arguments have pre-emptively shifted from demand to profitability." The apparent implication: As Tesla knocks down the negative arguments against it, one by one, bears are having to cast about in search of new things to complain about the company. Taking the opposite view, therefore, RBC suggests that "[a] solid Q2 delivery announcement could set up a positive cash flow quarter and set the stage for share appreciation in 2H:19." A second analyst chimes in Indeed, even the "bad" news we're seeing today is starting to look pretty good for Tesla. Simultaneous with Baird's price target hike, peer analyst Jefferies lowered its price target on Tesla. And yet, going from $400 down to $300, Jefferies ended up with a price target not too far off from what Baird set. Nor was Jefferies' note on lowering its price target even terribly negative in tone. Rather, citing findings from a recent visit to Tesla's Fremont factory, the analyst expressed confidence that "industrial efficiency [is] improving" (addressing the profitability complaint) and even worries about Model 3 demand seem "excessive." While Jefferies does cut its estimates for the company, therefore, hypothesizing that "[f]inancial performance should remain volatile in coming quarters," longer-term, the analyst says it sees "value in Tesla's technology lead (powertrain and AV development) and focus on increasingly affordable price points." The upshot for investors So what are investors to make of all these conflicting opinions on Tesla? Here's my take: Everyone's hedging their positions on Musk's innovative electric car company. Analysts -- even the bears -- seem wary of predicting that Tesla will miss on its delivery numbers at a time when the CEO himself is predicting "the highest deliveries/sales quarter in Tesla history!" That's a bold prediction to make, and it seems unlikely Musk would clamber out on a limb and make it when he knows the company will have to confirm or deny his prediction in just a couple weeks. (Last year, Tesla reported its Q2 deliveries on July 2 so, logically, we should see the latest report also arrive in the first week of next month.) With that catalyst on the horizon, Tesla bears are shifting their warnings to the quarters that will come after Q2, downplaying the significance of a "delivery beat" in July, and harping on the company's profits numbers. While that may seem like a disingenuous argument, however, it's not entirely unfair. After all, even if Tesla's operating and net profits have shown strength lately, data from S&P Global Market Intelligence show that its gross margin has been steadily declining for years as the company shifts to emphasize the sale of cheaper Model 3 cars instead of pricier Model S and X units. The simple truth of the matter is that, whether you love Musk or hate him, and whether Tesla "beats" or "misses" on deliveries, the real sine qua non for Tesla stock becoming a winning investment is its ability to earn consistent profits. The company failed to meet that standard in Q1 . Tesla fans need to hope it does a better job in Q2. More From The Motley Fool 10 Best Stocks to Buy Today The $16,728 Social Security Bonus You Cannot Afford to Miss 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) What Is an ETF? 5 Recession-Proof Stocks How to Beat the Market Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy . |
Here's Why We Think Marcus & Millichap (NYSE:MMI) Is Well Worth Watching
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For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit. But as Peter Lynch said inOne Up On Wall Street, 'Long shots almost never pay off.'
In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies likeMarcus & Millichap(NYSE:MMI). While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. Loss-making companies are always racing against time to reach financial sustainability, but time is often a friend of the profitable company, especially if it is growing.
View our latest analysis for Marcus & Millichap
If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS). It's no surprise, then, that I like to invest in companies with EPS growth. We can see that in the last three years Marcus & Millichap grew its EPS by 7.6% per year. While that sort of growth rate isn't amazing, it does show the business is growing.
I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. Not all of Marcus & Millichap's revenue this year is revenuefrom operations, so keep in mind the revenue and margin numbers I've used might not be the best representation of the underlying business. While we note Marcus & Millichap's EBIT margins were flat over the last year, revenue grew by a solid 8.1% to US$801m. That's progress.
In the chart below, you can see how the company has grown earnings, and revenue, over time. For finer detail, click on the image.
While we live in the present moment at all times, there's no doubt in my mind that the future matters more than the past. So why not checkthis interactive chart depicting future EPS estimates, for Marcus & Millichap?
I like company leaders to have some skin in the game, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. So it is good to see that Marcus & Millichap insiders have a significant amount of capital invested in the stock. To be specific, they have US$20m worth of shares. That's a lot of money, and no small incentive to work hard. Even though that's only about 1.7% of the company, it's enough money to indicate alignment between the leaders of the business and ordinary shareholders.
One important encouraging feature of Marcus & Millichap is that it is growing profits. If that's not enough on its own, there is also the rather notable levels of insider ownership. That combination appeals to me, for one. So yes, I do think the stock is worth keeping an eye on. If you think Marcus & Millichap might suit your style as an investor, you could go straight to its annual report, or you could first checkour discounted cash flow (DCF) valuation for the company.
You can invest in any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here isa list of companies with insider buying in the last three months.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
With the 737 Max Due Back Soon, Will General Electric (GE) Move Higher?
For the first time in a long time, General Electric (GE) news isn’t about its restructuring process.
The company on Tuesday made headlines from the Paris Air Show, as many in the aircraft industry are saying Boeing’s (BA) 737 Max will be ready to fly soon. The Max was grounded earlier in 2019 after two fatal crashes came within six months of each other, with blame pointed to the MCAS safety system. With the grounding, Boeing announced it would seriously cut production of the Max aircraft, which had a ripple effect down the supply chain, including with GE who manufactures its LEAP engine. But with the Max expected back in the air soon, production — and sourcing from GE — should ramp up.
AnalystAndrew Obinof Merrill Lynch isn’t changing his tune, though, as he keeps his Neutral rating on General Electric stock, with $12 price target. (To watch Obin's track record,click here)
GE saw good news in the form of increased orders of its LEAP engine, manufactured by the company through a joint venture with Safran. Indian carrier IndiGo ordered $20 billion of the LEAP engines to be used on its Airbus A320 and A321 aircraft. GE also picked picked up a victory with IAG placing 200 orders for the Boeing 737, which uses the CFM56 engine, also manufactured by GE through its joint venture.
On the Max, Obin says GE management was “more optimistic than other suppliers...at the show about 737 MAX re-certification ‘sooner rather than later.’” But while optimistic, the analyst says GE “expects about $300 million of working capital outflow in 2Q due to the grounding.” As cash flow is a major challenge for GE and focus for investors, many will keep an eye on this moving forward.
Overall, the 737 Max is providing GE with an external challenge, one that isn’t too common for the company right now. The main focus for GE is restructuring. CEO Larry Culp is being praised for his efforts to this point, as the company has rebounded from a terrible 2018 and is showing promise that it is returning to a stable stock. The Boeing challenge is expected to be short-term, as many on Wall Street continue to focus on the bigger picture of restructuring.
All in all, with the Max airplane expected to return to service soon and restructuring moving well, analysts are becoming more confident with GE stock.TipRanks analysisof 10 analyst ratings shows a consensus Moderate Buy rating, with four analysts rating Buy, four rating Hold and two suggesting Sell. However, the average price target of $10.86 suggests a slight upside from current levels.
Read more on GE:
• Not Out of Woods Yet, But Is General Electric (GE) Stock a Buy?
• General Electric (GE) Stock Is Still Poised for a Comeback
• Wall Street Remains Divided on Buying General Electric (GE) Stock
• Putting General Electric Management Under the Microscope Is Bad News for GE Stock
• Is 33% Upside Good Enough to Risk Buying Fitbit (FIT) Stock? Deutsche Bank Doesn't Think So
• Deutsche Bank Remains Sidelined on AMD Stock; Here's Why
• Antitrust Investigation Is Not a Major Threat to Alphabet (GOOGL) Stock, Says Top Analyst
• Tesla's (TSLA) Gigafactory Is Impressive, But Its Stock Isn't, Says RBC Capital |
At US$8.84, Is The Michaels Companies, Inc. (NASDAQ:MIK) Worth Looking At Closely?
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The Michaels Companies, Inc. (NASDAQ:MIK), which is in the specialty retail business, and is based in United States, received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to $12.91 at one point, and dropping to the lows of $8.17. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Michaels Companies's current trading price of $8.84 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Michaels Companies’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for Michaels Companies
Good news, investors! Michaels Companies is still a bargain right now. According to my valuation, the intrinsic value for the stock is $12.8, but it is currently trading at US$8.84 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Michaels Companies’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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 grow by a double-digit 18% over the next couple of years, the outlook is positive for Michaels Companies. 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?Since MIK is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor?If you’ve been keeping an eye on MIK for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MIK. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Michaels Companies. You can find everything you need to know about Michaels Companies inthe latest infographic research report. If you are no longer interested in Michaels Companies, 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. |
How Key and Peele turned Ducky and Bunny into Toy Story 4's biggest scene-stealers
When comedy duo Keegan-Michael Key and Jordan Peele signed on to voice Toy Story 4 ’s Ducky and Bunny — the mischievous plush carnival prizes who escape their arcade constraints with the help of Buzz Lightyear — there wasn’t much question as to which comedian would get to play which stuffed scene-stealer. “It was just so natural in terms of their energy,” Josh Cooley, the film’s director, tells EW. “Keegan just kind of bounces off the walls and Jordan is very kind of thoughtful and has a much lower energy, and since we knew we wanted to have a size difference between the two [characters], it just seemed funnier to have this little smaller guy voiced by Keegan and be a lot more energetic and bouncing off the walls.” Yet the recording booth never knew any inertia, at least not when Ducky or Bunny took their turns at bat. The filmmakers made an extra effort to always schedule the ever-busy Key, 48, and Peele, 40, to record together — a surprisingly rare practice in animation, but one that’s growing increasingly more common in bigger animated studio features (elsewhere on Toy Story 4 , Tom Hanks and Annie Potts also laid down their dialogue in tandem for Woody and Bo, who share most of their screen time). Unsurprising to fans who have followed Key and Peele’s careers since their sketch comedy days, Cooley dubs the pair’s Pixar performances “easily the funniest recording sessions I’ve ever been a part of.” The director gushes, “All I had to do was bring the scripts with the intention of what the scene was about, with some dialogue which they would read through a couple times, but then they would just take it to so many more levels further than I could ever possibly imagine. But the thing that was so great was that they weren’t just being funny for funny’s sake. Those improvised lines cemented the characters’ world views, if you will. Every single thing they said was in character and on point for the story, and that’s a talent in and of itself that is extremely hard to do, but to watch these two guys do it and be able to read each other’s minds at the same time was amazing. It was so hard to not ruin the takes with laughter.” Story continues Among the pair’s more memorable improvisations in the booth is a song Ducky and Bunny break into when they find out they’re on the way to meeting their first-ever kid, an anecdote Key recounted on The Tonight Show : “They put a bunch of lyrics down for us one day and said…we’re wondering if you could just kind of burst into song. And we’re like, ‘Oh yeah, whatever song you want.’ And they’re like, ‘No, we don’t really have the song. Could you write a song right now?’ We sang for 20 minutes straight, they recorded for about 30 minutes, and there’s about five seconds of it in the movie.” And as for the divvying up of roles itself, Peele’s part as the more subdued, more stuffed Bunny to Key’s pugnacious, plucky Ducky is “the first time in his life he’s ever been taller than me,” Key joked. “He is holding that close to his heart. We were looking at the characters for the first time and he was like, ‘So, I’m the big one? Alright .’” Disney/Pixar Related content: The most popular Pixar movie in each state Toy Story 4 : Meet three new (yet vintage!) characters Tim Allen warned Tom Hanks about the emotional ending to Toy Story 4 before he read it |
Get your skin in great shape before summer with these Walmart beauty products
Its really important to adjust your routine ahead of summer so your skin is prepared for the change in weather, says New York City-based board-certified dermatologist Joshua Zeichner. (Photo: Getty Images) With summer rapidly approaching, its about time to start switching up your skin care routine to reflect what your complexion will require as the weather gets hot and humid. For some folks especially those with normal, non-finicky skinthis could mean merely swapping your night cream for a lightweight lotion and amping the sun protection . But for those who struggle with skin concerns like acne or sensitivity, both of which can be exacerbated by heat and sweat, it can be incredibly beneficial to incorporate products that will help the skin stand up to the summer elements. Its really important to adjust your routine ahead of summer so your skin is prepared for the change in weather, says New York City-based board-certified dermatologist Joshua Zeichner. For instance, if you have oily skin, your goal should be to prevent your face from feeling heavy and greasy, so switching your cleanser to one that contains salicylic or glycolic acid is a great idea, he adds. Additionally, for those with easily irritated complexions, Zeichner says you should be aiming to calm inflammation as much as you can with products that feature calming ingredients like aloe and rose. As for mature skin types, hydrating and free-radical fighting elixirs along with ample sun protection should be your religion come summertime. Related Video: Dont Forget to Put Sunscreen On These Places Luckily, you can find highly effective, top-rated products to address your concerns right at your local Walmart . To make the process even easier for you, we narrowed down a selection of items beloved by shoppers and with the rave reviews to prove it. Yahoo Lifestyles shopping team is committed to finding you the best products at the best prices. We may receive a share from purchases made via links on this page. L'Oréal Paris Skin Expert Revitalift Bright Reveal Glycolic Cleanser (Photo: L'Oreal Paris) Shop it : L'Oréal Paris Skin Expert Revitalift Bright Reveal Glycolic Cleanser , $5, walmart.com This glycolic acid-packed cleanser from L'Oréal is perfect for anyone with acne-prone skin hoping to stave off excess sebum this summer. With 4.5 stars and nearly 3,000 impressive reviews from people who say its the best cleanser for acne theyve ever tried, you can trust its going to get the job done. Its weightless consistency and cooling effect make it all the more perfect for the hot months ahead. Story continues Neutrogena Hydro Boost Hyaluronic Acid Gel Face Moisturizer (Photo: Neutrogena) Shop it : Neutrogena Hydro Boost Hyaluronic Acid Gel Face Moisturizer , $17, walmart.com Dermatologist and founder of Smarter Skin Dermatology Sejal Shah suggests switching to gel-based moisturizers in the summer, as they absorb more quickly and feel light and refreshing on the skin. This best-seller from Neutrogenas Hydro Boost line has hyaluronic acid to quench even the driest of complexions, albeit works like a charm on oily and breakout-prone skin too. The myriad of amazing reviews from over 500 people are just another selling point that shouldnt go unnoticed. L'Oréal Paris Pure Clay Mask Detox & Brighten (Photo: L'Oreal Paris) Shop it : L'Oréal Paris Pure Clay Mask Detox & Brighten , $10, walmart.com Another ingredient Shah advises integrating into your routine if you have oily or combination skin is clay. It can help to combat some of the extra oil production you may experience in the summer, she explains. This slate-colored mask from L'Oréal contains a pore-refining blend of charcoal and three types of clay, all of which work to remove excess oil and acne-causing bacteria, while still leaving the skin soft and supple. With a whopping 10,000 reviews from happy customers, its definitely worth giving a shot. Aveeno Clear Complexion Daily Facial Cleansing Pads (Photo: Aveeno) Shop it : Aveeno Clear Complexion Daily Facial Cleansing Pads , $6, walmart.com While dermatologists dont recommend over-exfoliating in the summer, as this can increase sebum production and aggravate sensitive skin, they do suggest using a gentle daily exfoliator with saliclyic acid and glycerin to soothe. These pre-moistened pads from Aveeno happen to contain both plus, theyre free of common irritants like soap and alcohol, making them suitable for even those with highly reactive skin. And you know its a good sign if people are saying they hope Aveeno keeps making them forever. Olay Fresh Reset Pink Mineral Complex Clay Face Mask Stick (Photo: Olay) Shop it : Olay Fresh Reset Pink Mineral Complex Clay Face Mask Stick , $10, walmart.com Recommended by Rita Linkner of Spring Street Dermatology in New York City, Olays mask sticks work by absorbing oil and gently exfoliating the skin with kaolin clay. I really like them for cleaning the pores without drying the skin out, she says. Customers cant seem to get enough, either the foolproof mask has amassed over 700 reviews from folks who swear by the formulation for clearing their skin and keeping it balanced. The mess-free packaging is another plus people love. Bare Republic Mineral Sport Sunscreen Lotion (Photo: Bare Republic) Shop it : Bare Republic Mineral Sport Sunscreen Lotion , $15, walmart.com Every dermatologist recommended incorporating a sunscreen with SPF 30 or higher, regardless of skin type. However, they stress the importance for those with mature skin hoping to delay the affects of aging caused by the sun (for example, fine lines, wrinkles and hyperpigmentation). This broad-spectrum formula from Bare Republic features SPF 50, as well as a blend of nourishing oils to hydrate and repair complexions in need of a reset. La Roche-Posay Anthelios 30 Cooling Water-Lotion Sunscreen (Photo: La Roche-Posay) Shop it : La Roche-Posay Anthelios 30 Cooling Water-Lotion Sunscreen , $30, walmart.com Shah waxes poetic about La Roche-Posay sunscreens, and says this one, in particular, is a standout for sensitive and mature complexions because of how hydrating and soothing is it. The texture almost feels like water (hence its name) and sinks in instantly, leaving the skin with a subtle cooling sensation that works to calm redness and irritation on contact. Its also an excellent option for the face and body, so you dont have to lug around both with you. Differin Gentle Cleanser for Sensitive Skin (Photo: Differin) Shop it : Differin Gentle Cleanser for Sensitive Skin , $10, walmart.com This no-frills cleanser is ideal for those with acne and allergy-prone skin who need a lightweight face wash with soothing properties in the summer. Its pH-balanced formula gently whisks away dirt and bacteria without irritating the skin, leaving the skin looking and feeling softer and clearer after just one use. (Cheers to instant gratification, folks.) Clean & Clear Night Relaxing and Hydrating Jelly Eye Mask Sheet (Photo: Clean & Clear) Shop it : Clean & Clear Night Relaxing and Hydrating Jelly Eye Mask Sheet , $3, walmart.com Another do dermatologists recommend for summer skin care is upping the hydration as you are sweating more and prone to dehydration. This overnight eye mask from Clean & Clear is made with moisture-restoring seaweed extract and intensely nourishes the under-eye skin while you snooze. Customers say it helps with puffiness, dry patches and fading the appearance of fine lines and wrinkles what more could you ask for? Burt's Bees Hydrating Overnight Mask (Photo: Burt's Bees) Shop it : Burt's Bees Hydrating Overnight Mask , $15, walmart.com Another top-rated hydrator, this overnight face mask from Burts Bees features ingredients like avocado, castor and coconut oils to nourish skin thats stressed out from too much sun exposure. Slather on a thick layer before bed and wake up to a dewy, calm complexion thats decidedly clearer than the day before. Read More from Yahoo Lifestyle: The best mascaras for longer, thicker eyelashes starting at $7 Do hair vitamins really work? Heres what a dermatologist says. The $18 leave-in conditioner Hailey Baldwin swears by Follow us on Instagram , Facebook , Twitter , and Pinterest for nonstop inspiration delivered fresh to your feed, every day. Want daily pop culture news delivered to your inbox? Sign up here for Yahoos newsletter. |
Should You Investigate The Michaels Companies, Inc. (NASDAQ:MIK) At US$8.84?
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The Michaels Companies, Inc. (NASDAQ:MIK), which is in the specialty retail business, and is based in United States, saw significant share price movement during recent months on the NASDAQGS, rising to highs of $12.91 and falling to the lows of $8.17. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Michaels Companies's current trading price of $8.84 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Michaels Companies’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for Michaels Companies
Good news, investors! Michaels Companies is still a bargain right now. According to my valuation, the intrinsic value for the stock is $12.8, but it is currently trading at US$8.84 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Michaels Companies’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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. Michaels Companies’s earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.
Are you a shareholder?Since MIK is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor?If you’ve been keeping an eye on MIK for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MIK. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Michaels Companies. You can find everything you need to know about Michaels Companies inthe latest infographic research report. If you are no longer interested in Michaels Companies, 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. |
Is The Middleby Corporation's (NASDAQ:MIDD) Balance Sheet Strong Enough To Weather A Storm?
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Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as The Middleby Corporation (NASDAQ:MIDD), with a market capitalization of US$7.4b, rarely draw their attention from the investing community. However, generally ignored mid-caps have historically delivered better risk adjusted returns than both of those groups. Let’s take a look at MIDD’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. Don’t forget that this is a general and concentrated examination of Middleby’s financial health, so you should conduct further analysisinto MIDD here.
View our latest analysis for Middleby
MIDD has built up its total debt levels in the last twelve months, from US$1.0b to US$2.0b – this includes long-term debt. With this rise in debt, the current cash and short-term investment levels stands at US$81m to keep the business going. Moreover, MIDD has generated US$358m in operating cash flow over the same time period, resulting in an operating cash to total debt ratio of 18%, indicating that MIDD’s operating cash is less than its debt.
At the current liabilities level of US$562m, it appears that the company has been able to meet these commitments with a current assets level of US$1.1b, leading to a 1.98x current account ratio. The current ratio is the number you get when you divide current assets by current liabilities. Generally, for Machinery companies, this is a reasonable ratio since there's a sufficient cash cushion without leaving too much capital idle or in low-earning investments.
MIDD is a highly-leveraged company with debt exceeding equity by over 100%. This is not unusual for mid-caps as debt tends to be a cheaper and faster source of funding for some businesses. We can test if MIDD’s debt levels are sustainable by measuring interest payments against earnings of a company. Ideally, earnings before interest and tax (EBIT) should cover net interest by at least three times. For MIDD, the ratio of 7.49x suggests that interest is appropriately covered, which means that lenders may be inclined to lend more money to the company, as it is seen as safe in terms of payback.
Although MIDD’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 MIDD's liquidity needs, this may be its optimal capital structure for the time being. I admit this is a fairly basic analysis for MIDD's financial health. Other important fundamentals need to be considered alongside. You should continue to research Middleby to get a more holistic view of the mid-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for MIDD’s future growth? Take a look at ourfree research report of analyst consensusfor MIDD’s outlook.
2. Valuation: What is MIDD 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 MIDD 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. |
Caterpillar CEO Tells Cramer Trade Tensions 'Not New For Us'
Heavy equipment machine makerCaterpillar Inc.(NYSE:CAT)'s history traces back nearly a full century, meaning it's "navigated trade tensions" before and can do so again with China, CEO Jim Umplebytold CNBC's Jim Cramer.
What Happened
Caterpillar's exposure toChinastands at 5% to 10% of total sales and remains "strong" despite Sino-American trade tensions, Umpleby told Cramer in a Thursday interview.
The company saw a "big increase" in its China business beginning in 2017, and its strengths there are hydraulic excavators and demolition vehicles, he said.
Dealing with political challenges is "part of what we do" and "not new for us," the CEO said. Caterpillar is very comfortable in its ability to meet expectations, he said.
"We've seen this before, we've been through it, we'll manage our way through this situation."
'Not Chasing Growth'
Cramer said he once considered Caterpillar a "boom or bust" company, but under Umpleby's leadership it has become a "profitable growth company" that is "not chasing growth."
This may be most evident in the company's margin improvements over the past few years.
“The Caterpillar team improved operating margin from 11% in 2014 to 16% in 2018 in just 4 years,” Umpleby said.
“Last year we achieved record earnings per share at that $55 billion sales level that was 17% below what we had in 2012 at $66 billion [sales].”
Caterpillar is prioritizing resources toward business lines and regions that generate shareholder value, the CEO said — a strategy the manufacturer believes will generate profit and growth in both the short- and long-term.
Caterpillar shares were trading down slightly at $133.69.
Related Links:
Caterpillar Reports 6% Year-Over-Year Sales Increase
Boomerang Seems To Continue As Caterpillar, Nvidia, Apple Among Early Gainers
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© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
With Alibaba, It’s Not About You, It’s About China
Alibaba(NASDAQ:BABA) stock is reacting to the trade war with China by becoming more Chinese.
Source: Shutterstock
Lured by rules thatallow listing of dual-class shares in Hong Kong, Alibaba has announced plans to raise $20 billion there after doingan 8:1 stock split. Dual class shares were forbidden in Hong Kong when Alibaba went public in New York in 2014.
The split will make it possible to buy a share in the company, which opened for trade at about $166 on June 19, for just under $21. This makes it affordable to small Chinese investors.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While American business writers file gigabytes abouthow to trade thisorwhat it means to us, it’s not about us.
It’s about China.
Alibaba has become a proxy for what is possible to ordinary Chinese by combining theHoratio Algermaxims of co-founder Jack Ma with the absolute obedience preached by Chinese presidentXi Jinping.
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Alibaba bought theSouth China Morning Post, Hong Kong’s leading news outlet,in 2015. It now finds itself caught between the Xi government and the demand of Hong Kong’s people for autonomy. Millions of people, a substantial portion of Hong Kong’s population, have participated inprotestsover a proposal to allow quick extradition, to China, of people accused of crimes.
China’s government could crack down, as it did in Beijing 30 years ago, stifling democratic impulses. But the price could be heavy. So far, the governmenthas backed off its proposal, but has taken no further action.
The Posthas covered the story but has mostly focused on stories like a call to“restore business confidence.”The proteststhreaten to overshadowthe listing and the stock split.
While giving full autonomy to CEO Daniel Zhang anda new executive teamand preparing for his own retirement in September, Ma is quietly making Alibaba more of a tech play and less of the retail play Zhang had crafted. Its Hema supermarket unit, for instance, will be split off. CEO Zhang told Reuters the moves are meant to“guarantee innovation.”
The moves indicate more focus on Alibaba’s cloud, which is gainingthe same global footprintas the American “Cloud Czars.” But the Alibaba cloud, unlike the American clouds, isbased on Alibaba’s own business applications. The companyneed not worryabout charges of being a “monopoly” since, to Chinese leaders, that’s not a bad thing, So long as the monopoly is answerable to government power.
Ma himself, who is China’s richest man and also a member of the Chinese Communist Party,talks about going into teachingand philanthropy. He speaks of following the example ofMicrosoft(NASDAQ:MSFT) co-founder Bill Gates, who also retired from business in his mid-50s.
But Ma won’t be, and can’t be, Gates, anymore than he can beForrest Gump, the American movie character he so loves. That’s because Ma is Chinese, and Alibaba is Chinese, subjects to a strong central government that hands out freedom with an eye dropper.
In the end, Alibaba’s moves could be a godsend to American companies likeAmazon(NASDAQ:AMZN),Alphabet’s(NASDAQ:GOOG, NASDAQ:GOOGL) Google, andFacebook(NASDAQ:FB), which face calls in Europe and America to be broken up.
Alibaba’s market cap, at $435 billion, is a little over $100 billion short of Facebook. Breaking up the American czars would leave the market open to BABA stock. Cloud investors hope that fact will stay any trust-busting hands.
Dana Blankenhornis a financial and technology journalist. He is the author of a new environmental story,Bridget O’Flynn and the Bear, available now at the Amazon Kindle store. Write him atdanablankenhorn@gmail.comor follow him on Twitter at@danablankenhorn. As of this writing he owned shares in AMZN and MSFT.
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Investor sentiment is unusually low despite the S&P high
TheS&P 500closed at a record on Thursday — its first all-time high in seven weeks — after the Federal Reservesignaledthat an interest-rate cut may be on the horizon.
And one strategist says this week’s investor nervousness could actually add fuel to a market rally.
“I don’t really sense much euphoria with the market making a new all-time-high yesterday,” SunTrust Advisory Chief Market Strategist Keith Lerner said on yFI AM (video above). “And I think it’s a positive to extend this thing a little bit longer.”
“Over the last 12 months, we’ve seen the greatest outflow of ETF’s and mutual funds in at least 20 years,” Lerner explains. “And this is coming where the market is at a record high. Normally you see these kind of outflows after a big decline when people panic and that marks a bottom. So it’s a lot different from history, but if you see the market move up more, you may see some of these folks get back in.”
Lerner says his overall market view is “Don’t Fear Strength” and explains why investor sentiment is unusually depressed.
“We’re out with all time highs in the S&P, and a lot of investors in our work are still underinvested or underexposed in the market. So I think that’s part of what’s buffering the downside is that we’ve already seen a huge amount of de-risking by individual investors. Hedge funders are under-exposed, so I think net-in-net from a contrarian’s perspective, that’s a positive.”
The markets continue to face major uncertainties, including geopolitical tensions between the U.S. and Iran, the ongoing trade war with China, and dovish rhetoric from global central-bank policy makers.
So what should investors really worry about?
“A big catalyst is some of these things are simmering down a little bit,” Lerner says. “Even next week when we have the G20, I don’t think we need a trade deal but some progress that things are moving forward, I think, is good enough for the market.”
He added that “I don’t think you need a big catalyst. I think you just need things to not get much worse relative to depressed expectations that we are seeing today from investors.”
In a few weeks, market watchers will be eagerly awaiting another earnings season and many are concerned about impact of tariffs. Lerner gives his take.
“I think many analysts are having a difficult time quantifying the extent of tariffs,” Lerner says. “I think the market can handle some downward revisions in the earnings estimates. However if the next round of tariffs go through, I think would be a big issue for the market.”
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What You Must Know About Patterson Companies, Inc.'s (NASDAQ:PDCO) Financial Strength
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Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as Patterson Companies, Inc. (NASDAQ:PDCO) with a market-capitalization of US$2.2b, rarely draw their attention. However, history shows that overlooked mid-cap companies have performed better on a risk-adjusted manner than the smaller and larger segment of the market. This article will examine PDCO’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourselfinto PDCO here.
See our latest analysis for Patterson Companies
PDCO's debt levels have fallen from US$1.2b to US$785m over the last 12 months – this includes long-term debt. With this debt payback, PDCO's cash and short-term investments stands at US$117m to keep the business going. On top of this, PDCO has generated US$215m in operating cash flow during the same period of time, leading to an operating cash to total debt ratio of 27%, meaning that PDCO’s current level of operating cash is high enough to cover debt.
At the current liabilities level of US$933m, it appears that the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.8x. The current ratio is the number you get when you divide current assets by current liabilities. Usually, for Healthcare companies, this is a suitable ratio as there's enough of a cash buffer without holding too much capital in low return investments.
PDCO is a relatively highly levered company with a debt-to-equity of 53%. This is not unusual for mid-caps as debt tends to be a cheaper and faster source of funding for some businesses. 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 PDCO's case, the ratio of 3.14x suggests that interest is appropriately covered, which means that lenders may be inclined to lend more money to the company, as it is seen as safe in terms of payback.
Although PDCO’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised. This may mean this is an optimal capital structure for the business, given that it is also meeting its short-term commitment. This is only a rough assessment of financial health, and I'm sure PDCO has company-specific issues impacting its capital structure decisions. I recommend you continue to research Patterson Companies to get a more holistic view of the mid-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for PDCO’s future growth? Take a look at ourfree research report of analyst consensusfor PDCO’s outlook.
2. Valuation: What is PDCO 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 PDCO 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. |
Are Patterson Companies, Inc.'s (NASDAQ:PDCO) Interest Costs Too High?
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Stocks with market capitalization between $2B and $10B, such as Patterson Companies, Inc. (NASDAQ:PDCO) with a size of US$2.2b, do not attract as much attention from the investing community as do the small-caps and large-caps. However, generally ignored mid-caps have historically delivered better risk-adjusted returns than the two other categories of stocks. This article will examine PDCO’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. Don’t forget that this is a general and concentrated examination of Patterson Companies’s financial health, so you should conduct further analysisinto PDCO here.
Check out our latest analysis for Patterson Companies
Over the past year, PDCO has reduced its debt from US$1.2b to US$785m , which also accounts for long term debt. With this reduction in debt, the current cash and short-term investment levels stands at US$117m , ready to be used for running the business. On top of this, PDCO has generated cash from operations of US$215m during the same period of time, resulting in an operating cash to total debt ratio of 27%, indicating that PDCO’s operating cash is sufficient to cover its debt.
Looking at PDCO’s US$933m in current liabilities, it appears that the company has been able to meet these commitments with a current assets level of US$1.7b, leading to a 1.8x current account ratio. The current ratio is calculated by dividing current assets by current liabilities. For Healthcare companies, this ratio is within a sensible range since there's a sufficient cash cushion without leaving too much capital idle or in low-earning investments.
PDCO is a relatively highly levered company with a debt-to-equity of 53%. This is not unusual for mid-caps as debt tends to be a cheaper and faster source of funding for some businesses. We can check to see whether PDCO is able to meet its debt obligations by looking at the net interest coverage ratio. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In PDCO's, case, the ratio of 3.14x suggests that interest is appropriately covered, which means that lenders may be inclined to lend more money to the company, as it is seen as safe in terms of payback.
Although PDCO’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 PDCO's liquidity needs, this may be its optimal capital structure for the time being. I admit this is a fairly basic analysis for PDCO's financial health. Other important fundamentals need to be considered alongside. You should continue to research Patterson Companies to get a more holistic view of the mid-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for PDCO’s future growth? Take a look at ourfree research report of analyst consensusfor PDCO’s outlook.
2. Valuation: What is PDCO 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 PDCO 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. |
This week in Trumponomics: Tax-cut blowback
The tax cuts President Trump signed into law in 2017 were supposed to stimulate business spending and raise family incomes. Critics warned they’d also lead to damaging unintended consequences.
We will be watching for years to assess thelong-term impact of the tax cuts, but some new data shows a boost in incomes for some workers was temporary, while changes in deduction rules cut into charitable giving. The tax cuts aregenerally unpopular, because many voters think theyfavored businesses and the wealthyover the middle class. Trump will have to persuade voters the tax cuts helped ordinary families to have a decent shot at reelection in 2020.
Hundreds of companies gave their workers bonuses last year, to share the wealth as their tax bills declined. But most of them only did it once. New Labor Department data shows that bonuses rose 13.2% during the first quarter of 2018, compared with the year before, as bonuses triggered by the tax cuts kicked in. Butbonuses dropped by 23% in the first quarter of 2019, the biggest drop in the data series, which begins in 2004. Bonuses are back to the levels of 2015, well before the tax cuts.
Other numbers gathered by Giving USA show thatcharitable donations from individuals fell 1.1% in 2018, to $292 billion. That’s a small drop, but it’s the worst decline since the recession year of 2009. And the drop in giving came during a year in which the economy grew 2.9% and employment increased by 2.7 million jobs. Changes in the tax law reduced the deductibility of state and local taxes, leading fewer people to itemize deductions. Since charitable donations are deductible, some taxpayers most likely did the math and realized they wouldn’t get the tax benefit of donating. So they gave less.
Neither of these developments is terrible, but they contribute to the emerging picture of a tax-cut law failing to perform as promised. For these reasons, this week’s Trump-o-meter reads WEAK, the third-lowest reading.
In a more positive development, U.S. businesses brought home arecord amount of profits from overseas last year, since the lower U.S. tax rates let them keep more of it. But businesses are not investing that money the way tax-cut promoters said they would. There was amodest increase in business investment in 2018, but it was lower than the increase in 2012 and 2014. And investment has tapered off this year, with companies worried about a global economic slowdown and the damaging effects of Trump’s protectionist trade policies.
[Check out theYahoo Finance Trumponomics Report Card.]
Companies did splurge onshare buybackslast year, however—which is not something supporters of the tax cut are eager to promote. There’s nothing inherently wrong with buybacks, but when a company devotescash to repurchasing shares, that’s normally because it doesn’t see investments in people, equipment or facilities that would generate a better return. Andbuybacks don’t help workersor do much to stimulate growth.
Investors typically hope for a calm summer, but they may not get it this year. The U.S. standoff with Iran grew hot afterIran shot down a U.S. droneon June 19. Trump apparently ordered, then canceled, a bombing mission against Iran as retaliation. There could still be a U.S. attack, an Iranian counterattack and a whole matrix of ways hostilities could metastasize.
TheChina trade warcould get worse, as well. For now, markets seem content to believe there will be some rapprochement whenTrump meets President Xi of Chinaat the end of the month in Japan. But the two sides may have gotten as far as they can in negotiations without one side or the other making large concessions each is unwilling to make. Many analysts think more tariffs are coming, as both sides dig in their heels. Trump’s now battling a trade war in one part of the world and a shooting war in another.
Confidential tip line:rickjnewman@yahoo.com.Encrypted communication available. Click here toget Rick’s stories by email.
Read more:
Markets are still getting the Trump trade war wrong
Trump should stop bragging about the stock market
How China could meddle in the 2020 election
Elizabeth Warren’s best and worst economic ideas
Medicare for all won’t work. This might
Rick Newman is the author of four books, including “Rebounders: How Winners Pivot from Setback to Success.” Follow him on Twitter:@rickjnewman
Read the latest financial and business news from Yahoo Finance |
Armed Militias Pledge to Fight for Fugitive Oregon GOP Lawmakers At Any Cost
Mint Images Right-wing militia groups across the Pacific Northwest are mobilizing to prevent Oregon state police from arresting Republican state senators who went into hiding on Thursday in order to prevent climate change legislation from passing. All 11 of Oregons Republican state senators are currently on the lam, with some leaving for Idaho in an effort to deny the Democrat-controlled state senate a quorum to pass a cap-and-trade bill. In response, Oregon Governor Kate Brown (D), citing a provision in the state constitution that allows the state to compel absent lawmakers to attend legislative sessions, dispatched state troopers to bring them back. One of the lawmakers on the lam, Republican Brian Boquist (R), warned that he would resort to violence rather than return to the state, implying in a local television interview that he would attack law enforcement officers sent to retrieve him. Send bachelors and come heavily armed, Boquist said. Im not going to be a political prisoner in the state of Oregon. Its just that simple. Militia groups in the Pacific Northwesta hotbed of far-right extremist activismclaim theyve mobilized to protect those state senators. Were doing what we can to make sure that theyre safe and comfortable, said Eric Parker, the president of militia group Real Three Percenters Idaho, adding that the Idaho militias are in touch with their Oregon counterparts about the senators. In a Facebook post , Paul Luhrs, a member of the Oregon III%er militia, said the militia had vowed to provide security, transportation and refuge for those Senators in need. We will stand together with unwavering resolve, doing whatever it takes to keep these Senators safe, Luhrs wrote. Border Militias Use Facebook Live to Turn Immigrant Confrontations Into Reality TV This isnt the first time state lawmakers of either party have fled their states to deny their rivals a quorum. In 2003, Texas Democrats left the state to avoid a vote on redistricting legislation, while Democratic lawmakers in Wisconsin fled in 2011 to block Republican cuts to union rights. But what makes the current standoff in Oregon unique is the offers of help from militiasand the threats by at least one of those lawmakers to shoot police himself. Story continues Despite the offers, its not clear whether any of the Republican senators are actually in contact with the militia groups or have received help from them. Senate Minority Leader Herman Baertschiger Jr., who fled the state with the rest of the senate Republican caucus, didnt respond to requests for comment. Parker declined to comment about whether his group has been in contact with the senators themselves. One source inside the Oregon militia movement told The Daily Beast that their members were willing to put their own lives in front of these senators lives. The source claimed that dozens of armed militia members have mobilized to protect the state senators, and said there was potential for violence if law enforcement officials try to bring the senators back to Oregon. The source added that the militias would defend the Republicans at any cost. All of these people are armed, the source said. The militia mobilization has drawn in members of the III%ers, the Oath Keepers, and independent militia groups from outside the state, according to the militia source. The III%ers derive their name from their belief that only 3 percent of colonists were involved in the American Revolution, while the Oath Keepers claim to be veterans and law enforcement officers who have vowed not to violate their oaths. Parker, the Idaho militia leader, compared the fugitive state senators to the far-right activists who engaged in an armed stand-off with federal agents at the Bundy Ranch in Nevada in 2014. We see it the same as we saw the protesters in the wash at the Bundy Ranch, Parker said. This isnt the first time Oregon has seen militias mobilize for political ends. In 2016, militia members, led by members of Nevadas Bundy family who argued that the land should be open for private use, briefly seized Oregons Malheur National Wildlife Refuge. Militias are often trying to attach themselves to mainstream political causes in an attempt to win over new supporters, according to John Temple, the author of Up in Arms , a new book on the Bundys and the Malheur occupation. Temple said the fleeing legislators have the potential to attract support from across the militia movement nationwide, especially after Boquist boasted about attacking police. They are public officials and carry some weight, yet they are talking like they are straight out of the Malheur occupation, Temple said. Read more at The Daily Beast. Get our top stories in your inbox every day. Sign up now! Daily Beast Membership: Beast Inside goes deeper on the stories that matter to you. Learn more. |
James Gandolfini's son Michael remembers dad six years after his death
Six years after actor James Gandolfini’s death, he continues to loom large in his son Michael’s life. “6 years is too long. Every year without you is,” Michael wrote Wednesday on Instagram. “But I know you’re around. Miss you. More than anything. In this particular second it’s your laugh that I miss most. I love you so so much. We celebrate you today. Working hard to make you proud, I know you are, but I’ll never stop working at it. Love you dad.” View this post on Instagram A post shared by Michael Gandolfini (@mgandolfini) on Jun 19, 2019 at 9:21am PDT The elder Gandolfini, best known for his Emmy-winning turn as mobster Tony Soprano on HBO’s The Sopranos , died of a heart attack during a trip to Rome on June 19, 2013. He was 51. Those who respected and adored James, including some of his co-workers, offered kind words to Michael. Jamie-Lynn Sigler, who played James’s TV daughter, Meadow Soprano, on the show’s entire 86-episode run, wrote simply, “Oh,” with several heart emojis. Actor Jerry Ferrara, who dated Sigler and starred in HBO’s Entourage , complimented Michael on the photo he chose to share. “Great pic Michael. You’ve made him very proud. More to come,” Ferrara wrote. Actor Domenick Lombardozzi, who’s appeared in several HBO shows, including The Wire , assured Michael that he was sending positive vibes. “He’s definitely smiling down and very proud,” Lombardozzi wrote. John Ortiz, who’s appeared in HBO’s Luck and Togetherness , said he was doing the same. He added, “His laugh was the greatest.” Others shared sweet stories, too. Stunt coordinator Mark Riccardi remembers the elder Gandolfini’s thoughtful gesture when they had worked together. “A day I won’t forget only my 2nd film w JT at wrap your pops found me and ran over to my truck thanked me for a great day and gave me a bottle of JW Red .. class act.. never forgot that moment,” Riccardi commented. A fan offered a secondhand account of the late star’s good behavior off-set: “Years ago a friend of mine was at a bar and was lucky enough to meet your dad there. A bunch of them played pool and hung out for awhile. I remember they said he was a normal guy, fun to hang with. No ego, just a cool guy.” Story continues Someone else piped up, “As I sit here watching the Sopranos … thinking how great of an actor your father truly was! You have made him and I am certain you continue to do so.” Since his father’s death, Michael has become an actor in his own right, with several notable credits to his name. He portrayed Joey Dwyer in HBO’s The Deuce and, most notably, will play a younger version of his dad’s iconic character in next year’s Sopranos prequel, The Many Saints of Newark . Read more on Yahoo Entertainment: Kristin Cavallari reveals secrets from 'The Hills' reboot (even though she won't be on it) Julia Louis-Dreyfus experienced 'true fear' after breast cancer diagnosis 'The Pioneer Woman' star Ree Drummond's daughter arrested for underage drinking Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle's newsletter. |
Canopy Growth (CGC) Stock Jumps The Shark
After the market close on Thursday, Canopy Growth (CGC) finally reported March quarterly results. The key focus for investors was the numbers surrounding guidance for cannabis harvests in relation to FQ4 sales and the disappointing reliance on the recreational cannabis market in Canada that continues to struggle with delays and lackluster sales. Investors clearly didn't like the numbers, sending the stock price down nearly 8% in Friday's trading session.
Key Numbers
The most eye-popping number from the quarterly report was the forecast for harvested cannabis to double in the June quarter to 34,000 kgs. The company only sold 9,326 kgs in the March quarter.
The forecast is for production to grow 350% in the mater of quarters with a forecast for the harvest to easily double in the current quarter from the 14,469 kg harvested in the March quarter. Canopy Growth only harvested 7,556 kg as recent as the December quarter.
For FQ4, net revenues reached C$94.1 million for QoQ growth of 13%. Canopy Growth came close to becoming the first cannabis company to reach quarterly revenues of C$100.0 million.
Key selling prices remained stable, but again this is relatively old data going back to March. The average selling price per gram did dip to C$7.49 or 11% from last FQ4. The key issue with pricing is that all of the increased sales came from recreational cannabis in Canada with an actual decline in the high priced International medical cannabis market.
Remember that Canopy Growth just produced a press release dedicated to International operations to only report that sales amounted to a less than impressive 130 kg, down from 176 kg last FQ4. Even the Canadian medical cannabis sales plunged nearly 50% so investors need to consider that the large cannabis company is nothing more than a glorified Canadian recreational cannabis company.
Scary Losses
Canopy Growth is still investing very aggressively for the future. For the March quarter, gross margins plunged to only 16%. The rush to have the largest cannabis business is coming at a high cost.
When the gross margin is only C$15.0 million, a company can’t spend C$65.7 million on general and administration costs alone and expect to reach any level of profitability. Other operating expenses added another C$80.0 million in costs to lead to the substantial adjusted EBITDA loss.
Canopy Growth reported a massive C$97.7 million EBITDA loss in the quarter. The loss surged from only C$21.7 million last year and C$75.1 million in the prior quarter.
(Source: Canopy Growth FQ4’19 earnings release)
The market will have a hard time looking past these large losses.
Takeaway
The key investor takeaway is that Canopy Growth remains too richly valued considering the diminishing prospects within Canada and the lack of actual progress in international markets. The company has substantial inventory that will hit the weak market by the September quarter while still generating substantial losses.
The biggest question for Canopy Growth is margins in an environment when higher supply will hit prices and the Cannabis 2.0 delay will impact sales while costs mount. The C$20 billion valuation remains difficult to justify when the forecast of the CEO for sales to reach C$1 billion in the next year remains highly challenged.
If Canopy Growth only traded at 10x these sales estimates, the stock would lose 50% of its value. The company better spin a great story on the earnings call for the stock price to hold up.
To read more on the nitty gritty of what’s going on in the rising cannabis industry,click here.
Read more on CGC:
• Canopy Growth (CGC): The Emperor Isn’t Wearing Any Clothes
• Avoid Canopy Growth Stock Like the Plague; Here’s Why
• Analyst Sees Canopy Growth (CGC) Stock as a Winning Horse
• Cracks Are Forming in Canopy Growth Stock
• Is 33% Upside Good Enough to Risk Buying Fitbit (FIT) Stock? Deutsche Bank Doesn't Think So
• Deutsche Bank Remains Sidelined on AMD Stock; Here's Why
• Antitrust Investigation Is Not a Major Threat to Alphabet (GOOGL) Stock, Says Top Analyst
• Tesla's (TSLA) Gigafactory Is Impressive, But Its Stock Isn't, Says RBC Capital |
Should You Worry About Perma-Pipe International Holdings, Inc.'s (NASDAQ:PPIH) CEO Pay Cheque?
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David Mansfield has been the CEO of Perma-Pipe International Holdings, Inc. (NASDAQ:PPIH) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Perma-Pipe International Holdings
At the time of writing our data says that Perma-Pipe International Holdings, Inc. has a market cap of US$72m, and is paying total annual CEO compensation of US$890k. (This is based on the year to January 2019). That's a modest increase of 3.4% on the prior year year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$357k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$451k.
As you can see, David Mansfield is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Perma-Pipe International Holdings, Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Perma-Pipe International Holdings has changed from year to year.
On average over the last three years, Perma-Pipe International Holdings, Inc. has grown earnings per share (EPS) by 20% each year (using a line of best fit). It achieved revenue growth of 12% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts, shareholders might want to examinethis detailed historical graphof earnings, revenue and cash flow.
With a total shareholder return of 21% over three years, Perma-Pipe International Holdings, Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
We compared the total CEO remuneration paid by Perma-Pipe International Holdings, Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. We also note that, over the same time frame, shareholder returns haven't been bad. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. Whatever your view on compensation, you might want tocheck if insiders are buying or selling Perma-Pipe International Holdings shares (free trial).
Important note:Perma-Pipe International Holdings may not be the best stock to buy. You might find somethingbetterinthis list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Why Trump-Xi meeting won't produce a trade war 'breakthrough' at G20: Goldman Sachs
President Donald Trump’smeeting with Chinese President Xi Jinping at theupcoming G20 meetingwill be pivotal — but the odds of the two leaders striking a formal agreement that ends the U.S.-China trade war seem low, according to analysts from Goldman Sachs.
During the summit that begins on June 28, the bank’s analysts believe that both sides will agree to “re-engage” to reach an eventual agreement. This would then involve a commitment by the US to temporarily refrain from increasingtariffs.
Still, that doesn’t mean thatTrumpis done raising tariffs all together, according to Goldman.
“We do not believe that the Trump Administration is done raisingtariffs,” analysts wrote in a note to clients on Friday — and may even escalate further given the Federal Reserve’s accomodative stance.
“The President’s stated desire for easiermonetary policymight even motivate the White House to increase and/or prolong uncertainty,” they added.
“While we think some additional tariff escalation is more likely than not, we do not expect the White House to impose a 25% tariff on all remaining imports from China. A lower rate, like 10%, would be the natural alternative and would reduce the impact on consumers,” Goldman said.
On July 2, the next public comment period of tariffs concludes, Goldman pointed out. After that, the White House will be free to initiate a final tariff notice on imports from China, but the implementation of tariffs would more than likely take another couple of weeks.
However, given that there’s been little bilateral communication in recent weeks, Goldman said that “in light of the breakdown in talks in early May, there is clearly a chance that the two leaders might be unable to reach even a preliminary understanding.”
And if that happens, “we expect that President Trump would indicate that additional tariffs would be imposed, as the time to negotiate an agreement before the 2020 presidential election is growing shorter,” the bank’s analysts wrote.
They added: “we expect that President Trump would be unwilling to postpone further tariffs if he believed there was little chance of reaching a deal without further pressure.”
However, a deal prior to the2020 electionseems more realistic, especially since Trump will want to demonstrate his success withUS- Chinese negotiations, Goldman said.
Although the fast approaching election timeline may influence a deal, one that stops short of the US sought reforms from a few months ago, political scrutiny will also increase as well.
“We expect that the most likely scenario for an eventual deal would be for a few genuine reforms coupled with a commitment to purchase a substantial amount ofUS exports, in return for a phase-out of US tariffs,” the analysts concluded.
Donovan Russo is a writer for Yahoo Finance. Follow him@Donovanxrusso.
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Grayscale’s Ethereum Security Now Listed on OTC Markets
Grayscale’sEthereum-based security, Grayscale Ethereum Trust (ETHE), isavailablefor trading onOTCMarkets, according to an official blogpostfrom Grayscale Investments on June 20.
According to the post, ETHE is “an open-ended trust that holds Ethereum.” As further noted, this is a means ofinvestingin Ethereum without having to actually hold thecryptocurrency. This means that the “first U.S.-based publicly quoted security solely invested in and deriving value from the price of Ethereum is available.”
Grayscale’s Director of Investments and Research Matt Beck commented on how investing in Ethereum can help investors build a profitable portfolio, saying:
“Cryptocurrencies — such as Ethereum — offer exposure to a unique set of market opportunities and risks that are uncorrelated to traditional assets. As a result, they can further diversify modern portfolios, enhancing returns per unit of risk (when positions are sized appropriately and maintained over long investment horizons).”
This closely mirrors CEO of Morgan Creek Capital Mark Yusko’sstatementin May, in which he implored investors to hold bitcoin (BTC) due to its low correlation and high diversification.
Grayscale Investments, theUnited States-based investment firm behind ETHE, also offers a trust for bitcoin — Grayscale BitcoinTrust— as well as trusts for the cryptocurrencies Ripple (XRP), Bitcoin Cash (BCH), Ethereum Classic (ETC), Litecoin (LTC), Stellar Lumens (XLM), Zcash (ZEC), and Horizen (ZEN).
As previouslyreportedby Cointelegraph, Grayscale got the green light to trade ETHE via OTC markets in May from the Financial Industry Regulatory Authority (FINRA), a not-for-profit regulator authorized byCongress.
However, Grayscale notes in its disclaimer that the trusts are not registered with the major Americangovernmentalwatchdog, the Securities and Exchange Commission (SEC):
“The Products are NOT registered with the Securities and Exchange Commission (“SEC”) or any other regulatory agency in any jurisdiction, and are NOT subject to the same regulatory requirements as SEC-registered exchange traded funds or mutual funds [...] The Offered Products are being offered in private placements pursuant to the exemption from registration provided by Rule 506(c) under Regulation D of the Securities Act. As a result, the shares of each Offered Product are restricted and subject to significant limitations on resales and transfers.”
• Senate Banking Committee Sets Hearing on Facebook’s Crypto for July 16
• Chair of House Financial Services Committee Requests Halt on Facebook’s Crypto Project
• Coinbase Earn Now Supports Ethereum-Based Dai Stablecoin
• Bitcoin Falls Under $10,700 as Top Cryptos See Mixed Movements |
Is Mohawk Industries, Inc.'s (NYSE:MHK) Balance Sheet A Threat To Its Future?
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The size of Mohawk Industries, Inc. (NYSE:MHK), a US$11b large-cap, often attracts investors seeking a reliable investment in the stock market. Risk-averse investors who are attracted to diversified streams of revenue and strong capital returns tend to seek out these large companies. However, the health of the financials determines whether the company continues to succeed. This article will examine Mohawk Industries’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look furtherinto MHK here.
See our latest analysis for Mohawk Industries
Over the past year, MHK has ramped up its debt from US$2.9b to US$3.6b , which accounts for long term debt. With this increase in debt, the current cash and short-term investment levels stands at US$106m to keep the business going. Additionally, MHK has produced cash from operations of US$1.2b during the same period of time, resulting in an operating cash to total debt ratio of 33%, signalling that MHK’s operating cash is sufficient to cover its debt.
Looking at MHK’s US$3.4b in current liabilities, the company has been able to meet these commitments with a current assets level of US$4.7b, leading to a 1.37x current account ratio. The current ratio is calculated by dividing current assets by current liabilities. For Consumer Durables companies, this ratio is within a sensible range as there's enough of a cash buffer without holding too much capital in low return investments.
With a debt-to-equity ratio of 43%, MHK can be considered as an above-average leveraged company. This is common amongst large-cap companies because debt can often be a less expensive alternative to equity due to tax deductibility of interest payments. Accordingly, large companies often have an advantage over small-caps through lower cost of capital due to cheaper financing. By measuring how many times MHK’s earnings can cover interest payments, we can evaluate whether its level of debt is sustainable or not. Preferably, earnings before interest and tax (EBIT) should be at least three times as large as net interest. In MHK's case, the ratio of 26.33x suggests that interest is amply covered. It is considered a responsible and reassuring practice to maintain high interest coverage, which makes MHK and other large-cap investments thought to be safe.
Although MHK’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 MHK's liquidity needs, this may be its optimal capital structure for the time being. I admit this is a fairly basic analysis for MHK's financial health. Other important fundamentals need to be considered alongside. I recommend you continue to research Mohawk Industries to get a better picture of the large-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for MHK’s future growth? Take a look at ourfree research report of analyst consensusfor MHK’s outlook.
2. Valuation: What is MHK 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 MHK 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. |
Senate Democrats ask for details on antitrust probes into Big Tech
By David Shepardson WASHINGTON (Reuters) - Seven U.S. Senate Democrats asked the Trump administration on Friday to disclose details of possible Federal Trade Commission and Justice Department antitrust investigations into Amazon.com Inc, Facebook Inc, Alphabet Inc and Apple Inc. Reuters and other news outlets reported this month the agencies were gearing up to investigate whether the companies misuse their market power. The senators led by Senator Amy Klobuchar, a presidential candidate, said in the letters to FTC Chairman Joe Simons and Justice Department antitrust chief Makan Delrahim that "given the silence of the FTC and the Justice Department, the truth is that we still do not know if these investigations have actually been initiated and neither do the American people." The FTC declined to comment on the letter, while the Justice Department did not immediately comment on Friday. The letters were also signed by Patrick Leahy, Richard Blumenthal, Tammy Baldwin, Edward Markey, Tina Smith and Cory Booker - another presidential candidate - who said they were encouraged by the media reports of investigations "but also somewhat troubled that such inquiries were not already well underway." The senators noted that both agencies typically refrain from commenting on investigations that are not public "but these circumstances are far from typical. The significant public interest in and allegations surrounding the business conduct of Big Tech and the leaks concerning the clearance process relating to potential investigations of Amazon, Apple, Facebook and Google have made these matters highly unusual." Reuters reported this month that the Justice Department and FTC met in recent weeks and agreed to give the Justice Department the jurisdiction to undertake potential antitrust probes of Apple and Google, while the FTC was given jurisdiction to look at Amazon and Facebook. (Reporting by David Shepardson; Editing by Cynthia Osterman and Marguerita Choy) |
Trump Is Winning Mueller Fallout Battles, But House Democrats Say They'll Win The War
WASHINGTON ― For a congressional hearing on one of the most consequential documents in American political history, Thursday’s House Judiciary Committee session on Robert Mueller ’s special counsel report wasn’t exactly a hot ticket. If anyone wanted to watch four academics testify about a 448-page report examining Russian interference in the 2016 election and President Donald Trump ’s attempts to intervene in the investigation, there were plenty of seats available. The sparsely attended hearing raised questions about House Democrats’ strategy for investigating the Trump administration, which has been stonewalling congressional oversight at every turn. Attorney General William Barr bailed on a scheduled hearing. The White House blocked testimony from former counsel Don McGahn. And Mueller himself has sought to avoid testifying before Congress, saying his report is his testimony and encouraging Americans to read it for themselves. But a lot of Americans seem to be waiting for the movie version. The Mueller report’s release really didn’t do much to sway public opinion , and just 14% told HuffPost/YouGov that they had personally read any of it. So, there were questions this week about why the Judiciary Committee allowed former senior Trump adviser Hope Hicks to testify behind closed doors. Hicks’ public testimony would have made compelling television, even though she avoided revealing much that was new. She was accompanied by two deputy White House counsels, who objected more than 130 times to questions about her time in the administration. Having that scene play out on cable news could’ve swayed some opinions. Former Trump aide Hope Hicks testified behind closed doors to the House Judiciary Committee. Many are wondering why Democrats allowed her to duck a public hearing. (Photo: Associated Press) Rep. Jamie Raskin (D-Md.) said members of the Trump administration are well aware that public testimony would be compelling, and that’s why they’re so dead-set against letting it happen. “The administration understands that well, which is why they decided to destroy our ability to get fact witnesses to come in and give us honest testimony. It’s a scandalous turn of events, but it’s consistent with their spectacular disrespect for the rule of law,” Raskin told HuffPost. Story continues “Of course we want fact witnesses,” Rep. Pramila Jayapal (D-Wash.) said. “That is exactly what the Trump administration is trying to do everything they can to prevent.” “I find it amusing when my colleagues, my Republican colleagues, say, ‘These aren’t fact witnesses!’ Well, help us get the fact witnesses then! Go call the president, your best buddy, and tell him to stop putting forward claims like complete immunity for senior advisers,” Jayapal said. In the meantime, Jayapal said holding hearings was still important to educate the public on the contents of the Mueller report as much as possible. “People are confused for a reason. People are confused because the attorney general intercepted the Mueller report before it got to the people and made all kinds of misleading statements about what was in the Mueller report,” Jayapal said, referring to the three-week period when Barr’s incomplete and misleading summary of the report allowed Trump and his supporters to steer the public narrative about the investigations’ findings. House Judiciary Committee Chairman Jerry Nadler (D-N.Y.) said there’s a method to what some critics see as madness. He told Politico this week that Hicks’ testimony “very much played into our hands,” because it will help illustrate to a federal judge the consequences of the Trump administration’s stonewalling. “I understand, obviously, people are getting frustrated,” Nadler told the outlet. “‘Why aren’t you having fact witnesses? Why are you having John Dean and former prosecutors pontificate?’ Well the fact of the matter is, we can’t get fact witnesses until we win in court.” There were plenty of seats at this week's House Judiciary Committee hearing on Robert Mueller's special counsel report. (Photo: Ryan J. Reilly / HuffPost) Nadler said he was drafting a lawsuit against McGahn, a key witness in the Mueller report who obeyed the Trump administration’s directive not to testify. McGahn told Mueller’s team that Trump told him to inform then-Deputy Attorney General Rod Rosenstein (who was overseeing the Mueller investigation) that Mueller was too conflicted to head the special counsel probe, which McGahn said he interpreted as a directive to have Mueller fired. Though many would have preferred to see the testimony of administration figures like Hicks happen in public, Judiciary Committee Democrats said they understand that Nadler is in a tough spot. Raskin, along with committee members like Rep. Steve Cohen (D-Tenn.), were hesitant in interviews to place any blame on the chairman. “The chairman is doing whatever he can under very trying circumstances,” Raskin said. And in the meantime, members said it’s important to keep educating Americans about the contents of Mueller’s report. “It is very much an educational process,” Jaypal said. “It’s a long report. We have all read it because we’re here in the committee, but I don’t think the vast majority of Americans have read it, and I think they’re relying on other people to tell them what’s in the Mueller report.” Related... 'I'm Fucked,' And Other Damning Revelations From The Mueller Report The Trump Administration And Congress Are On A Constitutional Collision Course Trump Lawyers Objected Over 130 Times As Dems Asked Hope Hicks About Mueller Report Love HuffPost? Become a founding member of HuffPost Plus today. This article originally appeared on HuffPost . |
How Do Analysts See Mainfreight Limited (NZSE:MFT) Performing In The Years Ahead?
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Mainfreight Limited's (NZSE:MFT) released its most recent earnings update in May 2019, which suggested that the business gained from a robust tailwind, eventuating to a double-digit earnings growth of 28%. Investors may find it useful to understand how market analysts view Mainfreight's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
Check out our latest analysis for Mainfreight
Analysts' expectations for this coming year seems buoyant, with earnings climbing by a robust 18%. This growth seems to continue into the following year with rates reaching double digit 30% compared to today’s earnings, and finally hitting NZ$196m by 2022.
Although it’s helpful to understand the growth year by year relative to today’s value, it may be more valuable evaluating the rate at which the earnings are moving every year, on average. The advantage of this technique is that we can get a bigger picture of the direction of Mainfreight's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I've appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 11%. This means that, we can expect Mainfreight will grow its earnings by 11% every year for the next couple of years.
For Mainfreight, I've put together three important aspects you should further research:
1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Valuation: What is MFT 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 MFT is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of MFT? Exploreour interactive list of stocks with large growth potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
New York Senate passes ban on Elon Musk's Not-A-Flamethrower
If you live in New York state and bought one ofThe Boring Company's Not-A-Flamethrowers, you probably want to get rid of it shortly. The state's Senate recentlypassed a billthat bans the possession of a flamethrower for recreational purposes, and legislators very explicitly singled out Elon Musk's gadget as an example. The measure bars specifically bars any device that projects burning fuel at least three feet away, which appears to include Boring's hardware.
A bill has yet to come to a vote in the state Assembly, although the 48-13 vote in the Senate suggests it won't have much trouble clearing the other chamber.
It's no secret why they want flamethrowers like Musk's banned. While Boring's device isn'ttechnicallya flamethrower (it's more of a torch attached to a gun shell), it certainly has the effect of one at times. The company even required that buyers absolve the company of responsibility if they did any damage to people or property. Many people will use the Not-A-Flamethrower safely, but it would only take one accident (or worse) for things to go horribly wrong.
We've asked Boring Company for comment. However, there might not be much it can do if the bill is signed into law. This won't hurt the company's bottom line when production ended a long time ago, but it's not great news for fans -- and it'll likely discourage other companies from offering something similar. |
US STOCKS-S&P 500 touches record high as Wall St eyes trade talks
(For a live blog on the U.S. stock market, click or type LIVE/ in a news window.)
* Pence delays China speech amid "positive signs" on talks
* Energy sector gains as crude prices rise
* Indexes: Dow +0.10%, S&P 500 -0.06%, Nasdaq -0.24% (Updates to afternoon)
By Noel Randewich
June 21 (Reuters) - Wall Street was little changed on Friday, as U.S. Vice President Mike Pence's decision to defer a speech on China policy increased optimism on upcoming trade talks between Washington and Beijing, though tensions between the United States and Iran undercut sentiment.
The S&P 500 briefly hit a record high.
Pence called off a planned China speech that had been cast initially as a sequel to a blistering broadside he delivered in October, a move aimed at averting increasing tensions with Beijing, a White House official said.
The benchmark S&P 500 index hit an intraday record high of 2,964.15, but then stepped back as the rising tensions between the United States and Iran kept investors on edge.
U.S. President Donald Trump and Chinese President Xi Jinping are expected to restart trade talks at the Group of 20 summit in Japan next week, on June 28-29.
"People will be focusing on what happens at the G20 with Presidents Trump and Xi," said Kurt Brunner, portfolio manager with the Swarthmore Group in Philadelphia. Any indication of progress from Trump following the meeting would be positive for Wall Street, he said.
Stocks were set to log a third straight week of gains, after posting their worst monthly performance this year in May on fears the prolonged trade war would hit global economic growth.
Trump said on Friday he aborted a military strike on Iran in response to Teheran's downing of a U.S. drone, but the possibility of a U.S. retaliation pushed crude prices higher and helped lift the energy sector by 0.49%.
Traders also pointed to higher volatility on Friday on account of "quadruple witching," when investors unwind interests in futures and options contracts prior to expiration.
At 2:19 pm ET, the Dow Jones Industrial Average was up 0.1% at 26,780.05 points, while the S&P 500 lost 0.06% to 2,952.46. The Nasdaq Composite dropped 0.24% to 8,031.71.
The tech-heavy Nasdaq was weighed down by a 2.3% fall in PayPal Holdings Inc after the digital payments company said its chief operating officer, Bill Ready, would step down.
CarMax Inc rose as much as 3.4% to a record high after the used-vehicles retailer posted quarterly results above analysts' expectations.
Carnival Corp fell for a second day, down 4.3%, and among the biggest decliners. Several brokerages trimmed their share price targets after the cruise operator cut its 2019 profit forecast.
Declining issues outnumbered advancing ones on the NYSE by a 1.51-to-1 ratio; on Nasdaq, a 1.95-to-1 ratio favored decliners.
The S&P 500 posted 34 new 52-week highs and two new lows; the Nasdaq Composite recorded 45 new highs and 54 new lows. (Reporting by Noel Randewich in San Francisco Additional reporting by Amy Caren Daniel and Shreyashi Sanyal in Bengaluru Editing by Leslie Adler) |
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