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Why Overstock Stock Popped 12% on Friday
What happened Overstock.com (NASDAQ: OSTK) -- the one-time Amazon wannabe that's since become a play on digital currency -- revealed that it wants to get out of the retail business and go all-in on blockchain instead. Investors cheered. Overstock stock is up 12.7% as of 1:55 p.m. EDT on Friday, and at one point was up more than 20%. 99% off sale sign Image source: Getty Images. So what CNN is reporting that Overstock CEO Patrick Byrne made the revelation yesterday at the Fortune Brainstorm Finance conference in Montauk, N.Y. Said Byrne, "Two very attractive acquirers that I would have put high up on my list have shown up" with offers to buy Overstock's e-tailing business -- although he wouldn't say who those bidders were, or how much they were offering to pay. What Byrne did imply was that on his side of the equation, Overstock is a pretty motivated seller. "There's no point in trying to compete [in retail anymore]. It's way too expensive," said Byrne. So instead, Overstock wants to jettison the retail business that provides 99% of its revenue and focus on blockchain technology full time, with Byrne saying he thinks his company can make $20 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) this year. Now what To do that, Overstock may have to get out of retail. The company is struggling to compete with better-run and better-funded retailers, and S&P Global Market Intelligence data show that Overstock has posted negative EBITDA margins for two years running. In fact, though, even abandoning retail and focusing 100% on blockchain may not be enough to save the company. Although Byrne argues that "our earnings have turned," the company's Tzero token trading systems business has grown its revenue only 25% over the past two years -- and sales declined last quarter. Trailing revenue shows Tzero brought in less than $19 million over the last 12 months -- after the company spent $150 million building Tzero. Story continues It makes an investor wonder if maybe Byrne is selling the wrong part of Overstock's business. More From The Motley Fool 10 Best Stocks to Buy Today The $16,728 Social Security Bonus You Cannot Afford to Miss 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) What Is an ETF? 5 Recession-Proof Stocks How to Beat the Market John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon. The Motley Fool has a disclosure policy . |
What does The Middleby Corporation's (NASDAQ:MIDD) Balance Sheet Tell Us About Its Future?
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Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as The Middleby Corporation (NASDAQ:MIDD), with a market cap of US$7.4b, often get neglected by retail investors. However, generally ignored mid-caps have historically delivered better risk-adjusted returns than the two other categories of stocks. This article will examine MIDD’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysisinto MIDD here.
View our latest analysis for Middleby
MIDD's debt levels surged from US$1.0b to US$2.0b over the last 12 months – this includes long-term debt. With this rise in debt, the current cash and short-term investment levels stands at US$81m , ready to be used for running the business. Additionally, MIDD has generated US$358m in operating cash flow in the last twelve months, resulting in an operating cash to total debt ratio of 18%, signalling that MIDD’s operating cash is less than its debt.
With current liabilities at 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 calculated by dividing current assets by current liabilities. For Machinery companies, this ratio is within a sensible range since there is a bit of a cash buffer without leaving too much capital in a low-return environment.
With total debt exceeding equity, MIDD is considered a highly levered company. This is not uncommon for a mid-cap company given that debt tends to be lower-cost and at times, more accessible. We can check to see whether MIDD 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 MIDD's, case, the ratio of 7.49x suggests that interest is appropriately covered, which means that debtors may be willing to loan the company more money, giving MIDD ample headroom to grow its debt facilities.
MIDD’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow. Since there is also no concerns around MIDD's liquidity needs, this may be its optimal capital structure for the time being. This is only a rough assessment of financial health, and I'm sure MIDD has company-specific issues impacting its capital structure decisions. I recommend you 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. |
Here's Why AnaptysBio Shares Are Sliding Today
Shares ofAnaptysBio(NASDAQ: ANAB), a clinical-stage biotechnology company, are sliding in response to results recently posted byRegeneron(NASDAQ: REGN)for REGN3500. Investors, worried that mediocre results for Regeneron's IL-33 antibody mean trouble for AnaptysBio's lead candidate, pushed the stock 10.9% lower as of 2:46 p.m. EDT on Friday.
AnaptysBio's lead candidate, etokimab, reduces inflammation by inhibiting IL-33, which is the same target REGN3500 aims for. Regeneron didn't share all the details from a recently completed midstage study with REGN3500 as a treatment for eosinophilic asthma, but the biotech did share something disturbing. Patients dosed with Dupixent, an IL-4 antagonist approved to treat eczema and asthma, showed that the drug outperformed REGN3500 on its own.
Image source: Getty Images.
The purpose of the study was to test REGN3500 plus Dupixent against Dupixent monotherapy, but investigators also treated a group of patients with REGN3500 on its own. Patients receiving Regeneron's IL-33 drug on its own underperformed the Dupixent-only group. Also, patients given REGN3500 in combination with Dupixent didn't perform any better than those treated with Dupixent as a monotherapy.
This outcome is troubling because there's little chance that AnaptysBio will record significant sales of etokimab if it can't clearly outperform Dupixent. But don't assume AnaptysBio's candidate will fizzle until you get a closer look.
So far, all we know is that a handful of patients treated with an IL-33 candidate that Regeneron had on the back burner didn't perform significantly better than those given available care in one of three indications AnaptysBio is pursuing with etokimab. Before assuming that AnaptysBio's IL-33 candidate is doomed, it's important to realize that Regeneron's study split just 38 asthma patients up into five different groups, so an outlier or two could have made its IL-33 drug look much worse than it really was.
We'll know more about etokimab's chances of outperforming Dupixent as a treatment for eczemawhen the company reportsresults from a phase 2 study in the second half of the year.
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Cory Renauerhas no position in any of the stocks mentioned. The Motley Fool recommends AnaptysBio. The Motley Fool has adisclosure policy. |
Queer rocker Bob Mould on coming out late in life: ‘Why didn't I do this a little sooner?’
When indie-rock pioneer Bob Mould came out as gay in a 1994 feature for Spin magazine, he was almost 34 years old, and more than a decade had passed since his former band, Minneapolis pre-grunge trio Hüsker Dü, had released their debut album. Looking back in a Pride Month interview for Yahoo Entertainment, when asked what he would tell his younger self, he quips: “What took you so long to come out? Why didn't you do this a little sooner?” While Mould’s sexuality was what he calls an “open secret” in the 1980s college-rock scene, he does admit now, a bit ruefully, “I think to have a voice and not to have not used it fully for some moments, a couple years where maybe it could have made more of a difference… it’s not a regret , because everything is good as-is, but I would tell my younger self, ‘You've got an audience. You should tell them things.’” Mould explains that much of his reluctance to come out wasn’t so much because he feared a backlash in the rock world — although he did experience some of that in ’94 when File Under: Easy Listening , his second album with his post-Hüsker Dü band Sugar, came out in conjunction with the Spin article. (“I lost some fans, and I lost a little bit of support at commercial radio in the deep South. Maybe they didn't like the record, or maybe it coincided with the article. But the two happened together. I don't know.”) Mould was more worried about being pigeonholed and having his music “recontextualized” in light of his sexuality. “I think one concern was just really how people are going to look at the work… that people would go back and look at my whole catalog and go, ‘Ooh, that song must have been a gay song!’” he explains. “I think especially in the '80s, if one were to come out as a ‘gay artist,’ you got framed that way. But maybe in the '80s, if a lot more of us had been out, we would have resolved some of that sooner, because I think pop culture at that time still had the ability to change the world, or change the perceptions of people.” Story continues Still, in 1992, Mould made a subtle statement with the music video for Sugar’s “If I Can’t Change Your Mind” that connected with his queer fanbase. “I think that was the video that got everybody talking and thinking in that direction,” he reflects. The video depicted people in different romantic relationships — men with men, men with women, women with women — with Mould thumbing through a series of Polaroids, one of which was a photo of him and his then-partner. And the end of the clip, he flipped the photograph over to reveal that he had scrawled on the back, "This is not your parents’ world." “I think people that were connecting with my '90s band Sugar, maybe those are the folks in the community that come to me and say, ‘That work really meant a lot, and that video really told us without telling us that you were gay. It was all about same-sex relationships, without you having to pronounce. It really left a good impression on us,’” says Mould. “People loved it. I'm guessing that the LGBT community picked up on it immediately. I'm guessing some of my fans just thought it was some political statement, some unaffiliated political statement, because there was nothing super-gay about it. It was a subtle message; it was probably speaking in code maybe a little bit to people still.” Bob Mould in Sugar's "If I Can't Change Your Mind" video. (Photo: Rykodisc) Growing up in the ‘60s in the small northern New York state town of Malone, Mould said he knew by the time he was 10 years old that he was gay. “Well, I can't really say I knew what ‘gay’ was, because I grew up in a rural farm town and there was nobody gay that I knew about. I didn't even really understand what that was, but I knew I was different; I knew my preferences.” It was only when he moved to the Twin Cities when he was 17 to attend college that he started to “confront the idea of relationships or what is being gay.” (His Hüsker Dü bandmate Grant Hart, who died in 2017 , was bisexual, although Mould says their relationship was never anything more than platonic.) But Mould says “it was a slow graduation to understanding what my identity was, then it was another 10 years of struggling with, do I keep it an open secret? Do I come out? How does it affect how people look at my work? How does that all frame up in the '80s against the first wave of HIV/AIDS, all of the misinformation that came along with that?” The Sugar music video was a small step in that graduation process, but it was the publication of the Spin piece, at the “peak of my visibility,” that changed everything . “ Spin really wanted, one way or the other, to talk about this. Is that being ‘outed’? I don't know, because then I said, ‘Sure, I guess it's time to talk about it,’” says Mould. “It was three days with [journalist] Dennis Cooper in my house. We hung out for days, so he saw everything. Then when we got to it, I was still pretty defensive about the idea of being a musician first and a gay person [second]. It was awkward, I felt a little bit of pressure, but I think I was probably putting it on myself. I certainly don't hold Dennis or Spin responsible for anything. I think with time, we all get a good laugh out of it. At the moment, though, it was still shaky ground for me." Mould’s evolution as an openly gay man, however, was far from over. “Personally, I might have been out at 33, but I didn't really feel like I was part of a gay community until I was 38, 39, in New York. I walked away from music for a while, and spent time cultivating my own gay life and my gay identity, and starting to feel whole, feel like a whole being in that direction,” Mould explains. “I literally took years away from rock music just so that I could learn who I was, and see if I was able to fit into the gay life and feel comfortable, and make a difference.” Mould spent his time of self-discovery out of the rock ‘n’ roll spotlight recording electronic dance music, working as a live DJ in collaboration with D.C. techno artist Richard Morel under the name Blowoff, and becoming involved in various charitable efforts for gay causes. “Look, there were so many people that did a lot harder work for the cause than I did. I did what I could do,” says Mould. “I don't know if I was any kind of trailblazer, because I was slow to be publicly out. I think once I was out, I did as much as I could do. … I had built this new platform with Rich, we had this voice, and we were able to really activate the community. We gave people a new kind of party that they hadn't seen before, where it was really about music — sexy, but not dirty. I think we were able to do a lot of good with that party, as far as awareness, and just spiritually for people. That was a great stretch of time.” Mould is now happily settled in Berlin, and he recently released the solo album Sunshine Rock , the title of which reflects his current state of mind — although his latest recording, coinciding with Pride Month, is a cover of queer punk icon Pete Shelley and the Buzzcocks’ “I Don’t Mind.” Says longtime Buzzcocks fan Mould: “The way Pete wrote all the songs gender-neutral, that's where I was unconsciously connecting. That was something that got into my songwriting. Now when I look back at the '80s, and I look back at people who were writing relationship songs that were gender-neutral, maybe more of them were LGBT than I knew at the time.” Despite his contentment nowadays, Mould admits he still struggles with his coming-out experience, and he both envies and applauds today’s young, openly queer music artists. “I still think about [when I came out]. I still replay it in my head, and go, ‘Eh, what was the right thing to do?’ I think in the '90s when I was even more visible, or more popular, whatever, and I finally did come out, it was a relief. I think a lot of people were like, ‘We already knew.’ It was an interesting journey. Hats off to musicians these days and kids; if they want to be gay and out, and really forward with the message, I think generally music fans are more accepting of that now. I think over the decades, there's been some enlightenment. I hope.” And while Mould cannot go back in time to advise his younger self, he does have some words of encouragement for anyone coming out relatively late in life: “Just be who you want to be. Be who you need to be. Your family and friends will understand.” Read more from Yahoo Entertainment: Pete Shelley, leader of seminal punk band the Buzzcocks, dead at 63 'Rocketman' star Taron Egerton on gay storyline: 'I'm very proud that our movie puts it front and center' 'NSync's Lance Bass says 'music industry is still homophobic,' but it’s time for an openly gay boy band Pop prodigy MNEK on being a black gay role model: 'There's nothing wrong with being myself' The Drums’ Jonny Pierce: ‘Being gay literally saved my life’ ‘American Idol’ contestant Jeremiah Lloyd Harmon’s brave coming-out story: ‘Everybody was a little jolted by how transparent I was being’ Follow Lyndsey on Facebook , Twitter , Instagram , Google+ , Amazon , Tumblr , Spotify . 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Rallying Singapore-Based Stock Could Have More Upside
The shares of Singapore-basedSea Ltd (NYSE:SE)have tripled in 2019, spiking 6.3% just today to trade at $34.33, earlier hitting an all-time of $34.74. Call traders have been along for the ride, with more than 5,600 long calls initiated during the past 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), compared to just 490 puts. Looking closer, there was a huge addition in open interest at the June 32 call over this time frame, and the August 32 call saw a notable rise in open interest, as well.
Options volume is accelerated across the board this afternoon, and the July 34 call is seeing heavy trading, with new positions being opened. Total open interest was already at an annual high coming into today, while the 30-day at-the-money implied volatility of 50% ranks in the 21st annual percentile-- showing relatively tame short-term volatility expectations at the moment. Of course, this reading is up significantly today, jumping 15.2%.
Another volatility measure, our Schaeffer's Volatility Index (SVI), is low, too, ranking in just the 3rd annual percentile. Per data from Schaeffer's Quantitative Analyst Chris Prybal, the other two times the stock's SVI ranked in the bottom quartile of its annual range and the shares were trading near 52-week highs, they went on to average a one-month gain of 10.8%.
Aside from this signal, there is also the Garena parent's upcoming Call of Duty: Mobile launch that's expected for the third quarter, which could generate positive buzz for the stock. And investors should be paying attention when the company schedules its next earnings release, since the last two quarterly reports have sparked gains of 24.1% and 34.9%. Finally, all covering analysts recommend buying the shares, with J.P. Morgan Securities just last week giving SE stock an "overweight" rating and $36 price target. |
Fixer-Uppers Aren’t As Good of a Deal as Homebuyers Thought
If you’re in the market for a house and think a fixer-upper can save you some cash, think again. You may end up spending more after renovations than you would have spent had you gone ahead and purchased a move-in ready home in the first place, according to new research.
The top reason homebuyers buy fixer-uppers is because they think they can save money on the purchase price, according to asurveyof 1,069 homeowners by home renovation platform Porch. Among the respondents, 63% of millennials, 61% of Gen Xers and 59% of baby boomers felt that way.
But while a fixer-upper may have a lower purchase price than a comparable turnkey house — a property that needs no major improvements before you move in — the money you’ll have to spend to fix the house up often exceeds expectations.
On average, the survey respondents who bought turnkey houses said they spent $250,496, while those who purchased fixer-uppers bought their homes for $199,819. After fixer-upper homeowners paid for renovations, those who stayed within budget spent on average $246,891 in total.
However, 44% of fixer-upper homeowners went over budget, spending on average 38% more than expected, the survey found. Among those who spent over budget, the average total cost of buying and renovating the home came to $275,741 — approximately $25,000 more than the average cost of a turnkey house.
Some renovation projects tend to be more unfriendly to the budget than others. Homebuyers who needed to install a new HVAC system (54%), do major plumbing work (52%) or make basement renovations (52%) were most likely to spend more than they planned. Other renovation projects likely to go over budget were:
• Bathrooms (51%)
• New appliances (51%)
• Roof (50%)
• Kitchen (50%)
• Electrical (49%)
• Driveway (49%)
• New flooring (49%)
Not surprisingly, fixer-upper homeowners who overspent were more likely to regret their purchase than those who stayed within budget on renovations. Not surprisingly, 86% of those who spent what they expected to spend and 73% of those who spent less than they expected said they would make the same purchase again. However, only 60% of homeowners who spent more on renovations than they planned said they would buy the same house. Some survey respondents also said they would get more accurate assessments of the cost of repairs if they were to buy a fixer-upper again.
Before you buy a house,think through all financial considerations, including whether you have to spend money and time making renovations. If you do want to buy a fixer-upper, look intohome renovation loans, which may wrap the cost of repairs into the overall mortgage loan. Also, consider getting estimates from multiple contractors so you will more likely have an accurate assessment of how much repairs will ultimately cost. |
3 Monthly Dividend Stocks to Buy Today
Retirement: It’s all about one thing and that’s income … replacing a steady paycheck with your savings. With that,dividend stockshave plenty of appeal for retirees. Not only can you score higher yields than bonds, but you have the ability to grow those payouts over time as well. However, dividend stocks do have one major drawback.
Their payment schedules.
Most dividend stocks pay on a quarterly or even semi-annual basis. And while that may not seem like a problem, for many retirees used to a monthly or bi-weekly paycheck balancing cash flows can be a hard pill to swallow. After all, your mortgage, cable bill and car payments are due each month. To that end, getting a monthly dividend could be the answer to budgeting issues.
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Luckily, there are plenty of dividend stocks that do happen to payout monthly. Here are three of the best.
Dividend Yield: 5.89%
Most investors have never heard of businesses development companies (BDCs). That’s a shame because they can be some of the biggest yielding stocks around. BDCs are set up as pass-through entities much like real estate investment trusts, and similarly must pay out at least 90% of their earnings as dividends. How they earn that income is by loaning cash to mid-sized firms — companies too big to ask the local bank for a loan, but not big enough to launch a significant bond offering — at competitive rates. The best way to really think of them is like public-private equity firms.
And when it comes to BDCs,Main Street Capital(NASDAQ:MAIN) could be one of the best.
MAIN has provided capital to more than 200 private companies and thanks to its underwriting and deal standards, it has been very successful at turning abig profit on those loans. Just for the first quarter of this year, MAIN has already seen its investment income rise by 10% year-over-year. Those sorts of gains have allowed the firm to become a great dividend stock since its IPO in 2007. The BDC has managed to grow its payout by 127% since then.
Today, you can score a great recurring monthly dividend with a current yield of 5.89%. The best part is that MAIN’s management likes to reward shareholders further with extra supplemental dividends. This allows the BDC to use excess capital if a great deal can be had or for dividends. Adding those extra payouts in, and investors are looking at closer to 7.2% yield.
BDCs like MAIN provide a much-needed service to many firms. And thanks to its underwriting skill and focus on quality firms, MAIN has quickly become one heck of a dividend stock.
Dividend Yield: 4.5%
One sector that can be a fertile hunting ground for dividend stocks, and is also known for its stability, is the telecommunications industry. Top stocks likeAT&T(NYSE:T) andVerizon(NYSE:VZ) are in plenty of income portfolios. The reason is easy to see. Predictable fixed costs and demand allow telcos to pay out reliably healthy dividends. The problem is T and VZ aren’t monthly dividend stocks.
But Canada’sShaw Communications(NYSE:SJR) is.
Shaw remains one of Canada’s largest telecoms and offers the usual bundle of services, including cable, internet and wireless phone services. It has been doing this for decades just like T and VZ here at home. And SJR has also tackled the problem of cord cutting head on. The telecom has been able to successfully convert customers to faster internet service to overcome lower cable subscriptions. This has helped boost revenues. At the same time, SJR has been one of the first movers in Canada fornew 5G networks.That will give it a heads-up in bringing faster mobile internet, IoT and other applications to the nation.
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As Shaw moves forward in these areas, investors can sit back and collect a hefty monthly yield.Currently, SJR pays 4.5%.Now, that dividend will fluctuate based on changes to the U.S./Canadian dollar. However, given Shaw’s stability and potential growth, it’s a small price to pay for a great dividend stock.
Dividend Yield: 4.89%
Honing in on so-called mega-trends is a great way to find dividend stocks that will stand the test of time. For monthly-dividend payerLTC Properties(NYSE:LTC) that mega-trend is the “Graying of America.”
Thanks to advances in medicine, lifespans are only increasing and longevity is almost assured at this point. LTC is uniquely positioned to take advantage of this fact. The firm invests in the senior housing and assisted living facility sectors of the healthcare property market. Currently, the firm owns/invests inroughly 200 propertiesthat are right in the sweet spot for the nation’s aging baby boomers. Demand for these facilities continues to grow as more seniors need aid to get along.
The key is that LTC doesn’t operate the facilities or even own the buildings in many cases. What it does is provide financing for owner/operators to construct and renovate their properties or it buys properties from owners in a sale-leaseback transaction. It’s basically a mortgage lender that collects a monthly rent check. This position in the sector allows it to avoid some of the profitability issues that can result in senior living and assisted living facilities.
It also allows for some safety and steady profits on its end. Year-over-year, LTC saw a gain in FFO for the first quarter of 2019. Steady FFO gains have allowed it to raise its dividend over 46% since 2008. Currently, LTC yields 4.89%.
All in all, LTC is in the right area at the right time. And that makes it a great monthly dividend stock to own.
As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.
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7 Bathroom Remodel Ideas on a Budget
For such a small space relative to the rest of your home, the bathroom is a place you may spend a lot of time. Aside from the necessary breaks, you also shower there when getting ready for work or might soak in the tub after a long day. And getting ready for a night out can easily add another 30 minutes to your normal bathroom time. Why not make all that time spent in the bathroom a little more enjoyable with a remodel that not only makes the bathroom look more sleek and modern, but also helps improve its functionality? A bathroom remodel is a goal project for many homeowners -- and it's often considered a room that could make or break a home sale when the property is on the market . But with plumbing, tile and electrical wiring to consider, a lot of complexity is packed into a small space. As a result, the price tag on a bathroom renovation can get out of hand quickly. According to the 2019 Houzz & Home survey , the cost to remodel a bathroom continues to rise. The median price for homeowners remodeling a master bath in 2018 was $8,000, up more than 14% from 2017, when the median cost was $7,000. For a guest or secondary bathroom remodel, the cost for homeowners rose to $3,500 in 2018, up 17% from 2017, when the median cost was $3,000. If you're looking to overhaul your entire bathroom, however, the price rises fast. The Houzz survey reports that in 2018 the median cost for a major master bathroom remodel, including new vanity, countertops and toilet, was $17,000 for a bathroom over 100 square feet and $10,000 for a bathroom under 100 square feet. [ Read: 7 Kitchen Remodel Ideas on a Budget. ] For many homeowners, a bathroom renovation that big just isn't an option. Fortunately, there are smaller projects you can take on that can help make your bathroom feel new again without draining your savings. Here are seven ways you can renovate your bathroom on a budget: -- Change the toilet. -- Freshen up the vanity. -- Find the newest fixtures. Story continues -- Take on a tile project. -- Reface an old tub. -- Update the lighting. -- Focus on plumbing. Change the Toilet You may call it the throne, but have you given some thought to how well your toilet meets your needs or how it looks in your bathroom? An older or cheap model may not be tall enough for you, it may have lost its crisp white look or may even be a dated pink or blue color you just can't look at anymore. Replacing a toilet requires little skill and can be taken on as a DIY project, says Chip Wade, a master carpenter best known for his roles on HGTV shows like "Ellen's Design Challenge" and "Curb Appeal: The Block," and a consultant for Liberty Mutual Insurance. To get through the steps without issue, he recommends looking at more than one online source or enlisting the help of a friend who has replaced a toilet before. Anticipated cost: You can purchase a toilet through any big-box home improvement store like Lowe's or Home Depot. They range in price from less than $100 to more than $300, depending on flush options and bowl shapes that can increase comfort level. Freshen Up the Vanity Another focal point in any bathroom is the sink and vanity area, and it's also a spot that can look dated quickly as trends go in and out of style. Upgrading from a single to double vanity is a popular option, but that change can easily take your project beyond your budget . To avoid major plumbing changes that can drive up the cost of your project, explore your options to simply replace what you have with a more modern-looking vanity. Leneiva Head, owner of Welcome Home Realty, a real estate management company in Nashville, Tennessee, recommends heading to the big-box stores to see what vanity options could give your bathroom new life. "About $300 will get you a really pretty vanity," she says. For an even less invasive project, try breathing some new life into the vanity area by replacing the mirror. "Take that one long mirror that everybody has and get two shorter mirrors," Head says. Or frame out your mirror with a pop of color or rustic wood to match your desired look. Anticipated cost: A vanity without the sink is available at Home Depot for as low as $89. For a new sink included, the price begins around $300 and reaches beyond $1,500. Framed or double mirrors are also available at standard home improvement stores, but they can also be found through Ikea and Wayfair starting at around $60 and up. [ See: The Best Time of Year for Every Home Improvement Project ] Find the Newest Fixtures If replacing a tub, shower or bathroom sink is outside your budget , you can still make each feature look new again by updating the faucets, knobs and handles. These fixtures are often inexpensive and serve as an easy DIY project with no real plumbing skills required. To best update the fixtures, Head recommends going with what's currently in style, whether it's a dark brown faucet, rain shower head or detachable shower head. "When people see the fixtures in the shower, they forget about the shower itself," she says. Anticipated cost: These fixtures are easily found at home improvement stores. A variety of sink faucets are available for between $40 and $90 at Ace Hardware, while shower faucet sets that include a tub faucet, shower head and handle cost $90 to $120. Detachable shower heads cost between $15 and $35 at Ace Hardware. Take on a Tile Project New tile is often a go-to project for homeowners looking to update their bathroom s. While you may be willing to give tiling a try yourself, others hire a professional to ensure the individual pieces are laid evenly and properly secured to the wall or floor. Anticipated cost: HomeAdvisor reports that the cost for a professional to install tile in your bathroom is, on average, $2,000 for a 90-square-foot space. Even if you want the expertise of a professional placing the new tile, you may be able to save by demolishing any existing tile on your own. Reface an Old Tub Taking out your 1980s bathtub and replacing it with a chic, freestanding soaker tub is a pricey project that requires a lot of additional work to move drains, replace tile and maybe even remove walls to create space. Head recommends an alternative: "Tubs are expensive to replace, but you can actually have that repaired and refaced," Head says. Refinishing tile in a shower is also far more budget-friendly than replacing the shower. Since it involves the shower pan, or base of the shower, Wade says it's not a good DIY project because details involving slope and angles determine whether the drain functions properly. This project also must meet municipal code, so it's better suited for a professional. "Unless you've seen it done and seen it done multiple times," Wade says, "it's not something you learn as you go." Anticipated cost: The typical range to refinish a bathtub is between $329 and $596, according to HomeAdvisor. The home improvement information site also reports the cost to refinish ceramic tile is $1,075, on average. Update the Lighting Chances are , the lighting in your bathroom could use an upgrade. Especially if the top of your vanity mirror is lined with large, round bulbs -- which Head notes are reminiscent of a dressing room -- you have many options to bring newer, better lighting into the space. Head recommends installing a monorail-style light, which still includes multiple bulbs but is connected on a solid strip for a single-light look. You can go even more modern with a light bar that doesn't require bulbs. "When you change your lighting style and type, you change the whole room," Head says. Anticipated cost: A monorail-style light that conceals the bulbs is available online at a variety of prices and styles, starting at $68 on Overstock.com and climbing to $250 through Shades of Light. A bulb-less light bar begins at $48 and reaches beyond $480, depending on price, size and style. [ See: The Best Free Interior Design Apps ] Focus on Plumbing Especially if you live in a house that's a century old or more, your budget may be best spent on some of the less-visible features that can make showering, cleaning up and using the bathroom far more enjoyable. For the sake of updating plumbing, prepare to spend the majority of your money on the labor costs of a licensed plumber. But with new plumbing that has neither the wear and tear or interior buildup of antique pipes, you'll experience fewer backups and maybe even see better distribution of hot and cold water. The drain system "is not something I recommend messing around with too much," Wade says, noting you're more likely to come up against detailed code specifications about slope, fall, operators and other details that, if done incorrectly, won't function as they should and could cause problems. Anticipated cost: HomeAdvisor reports a plumber costs, on average, between $45 and $200 per hour. Expect additional materials costs if you're replacing any pipes or drains. More From US News & World Report 6 Tips for Properly Caring for Your New Construction Home 19 Essential Tools a DIYer Should Have 7 Tips for Updating Your House in an Up-and-Coming Neighborhood |
Have Insiders Been Buying ViewRay, Inc. (NASDAQ:VRAY) Shares This Year?
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We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares inViewRay, Inc.(NASDAQ:VRAY).
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
See our latest analysis for ViewRay
In the last twelve months, the biggest single purchase by an insider was when President Scott Drake bought US$388k worth of shares at a price of US$6.47 per share. Even though the purchase was made at a significantly lower price than the recent price (US$8.92), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Happily, we note that in the last year insiders bought 85000 shares for a total of US$550k. While ViewRay insiders bought shares last year, they didn't sell. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably donotwant to miss thisfreelist of growing companies that insiders are buying.
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that ViewRay insiders own 4.4% of the company, worth about US$38m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
The fact that there have been no ViewRay insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in ViewRay and their transactions don't cause us concern. Therefore, you should should definitely take a look at thisFREEreport showing analyst forecasts for ViewRay.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Astrobiology takes the spotlight: Saturn’s moon Enceladus may offer a ‘free lunch’
This composite image shows how plumes of water emanate from fissures in the surface ice of Enceladus, one of Saturn’s moons. (NASA / JPL Illustration) The sea that lies beneath the icy surface of Enceladus, one of Saturn’s moons, could provide even more fuel for extraterrestrial organisms than previously thought. That’s the upshot of a study to be presented at AbSciCon 2019 , an astrobiology conference taking place next week in Bellevue, Wash. Hundreds of researchers will be sharing their findings about the prospects for life elsewhere in the solar system and the universe. Among them will be Lucas Fifer, a doctoral student in Earth and space sciences at the University of Washington. He’s the lead researcher for the Enceladus study. It’s been more than a decade since NASA’s Cassini mission revealed that plumes of water are rising up from fissures in Enceladus’ thick surface layer of ice. Scientists have gone on to find increasing evidence that Saturnian moon’s subsurface sea could be hospitable to marine microbes or perhaps even higher forms of life. Analyses of the plumes indicate that they contain molecules of hydrogen as well as minerals and organic molecules that could serve as fuel. But do the plumes accurately reflect the composition of the seas beneath the ice? Fifer and his UW colleagues, Jonathan Toner and David Catling , fed the chemical analysis of the plumes observed by the Cassini probe into a computer model, and found that the seas are likely to provide even more of the things that life could take advantage of. The reason is that the proportions of gases dissolved in the water should change as the plumes erupt through the ice fissures, due to a phenomenon known as fractionalization. Some of the gases would get preferentially left behind. In Enceladus’ case, those gases include hydrogen, methane and carbon dioxide — which serve as energy sources for microbes on Earth. Having more of those gases should improve the chances for any life existing in the hidden ocean. “It’s better to find high gas concentrations than none at all,” Fifer said in a news release . “It seems unlikely that life would evolve to consume this chemical free lunch if the gases were not abundant in the ocean.” Story continues Higher levels of carbon dioxide also would imply that the ocean is less alkaline than previously thought, and closer to the acid-alkaline pH balance found in earthly oceans. That’s another advantage for Earthlike life. “Although there are exceptions, most life on Earth functions best living in or consuming water with near-neutral pH, so similar conditions on Enceladus could be encouraging,” Fifer said. “And they make it much easier to compare this strange ocean world to an environment that is more familiar.” What’s more, the analysis suggests the ocean could hold high concentrations of ammonium, which is another potential fuel for life. Fifer said the findings could be interpreted in two ways. One interpretation would be that the Enceladusians have a big menu to choose from. The other interpretation is less reassuring: Having so much fuel lying around in the ocean could mean “that there is hardly anyone around to eat it,” he said. Enceladus has traditionally shared the spotlight with Europa , an icy moon of Jupiter, when it comes to the search for life in subsurface oceans. NASA has plans on the books for a mission to Europa in the 2020s , but a mission to Enceladus is likely to be farther off. One proposed project, known as the Enceladus Life Finder , would send a probe on repeated passes through the moon’s plumes. And Russian-Israeli billionaire Yuri Milner has voiced interest in helping an Enceladus mission get off the ground sooner rather than later. Fifer said the analysis that he and his colleagues conducted could help scientists on such missions calibrate their own findings. “Future spacecraft missions will sample the plumes looking for signs of life, many of which will be affected just by the eruption process,” he said. “So, understanding the difference between the ocean and the plume now will be a huge help down the road.” More from GeekWire: Breakthrough Discuss turns spotlight on search for life elsewhere in solar system Life on the moon? It could have happened billions of years ago, astrobiologists say 21-year-old readings boost the case for water plumes spraying out from Europa Mars Express delivers radar evidence of hidden lake at Red Planet’s south pole |
1 Number That Should Terrify Slack Investors
Investors are clearly excited that wildly popular enterprise messaging serviceSlack(NYSE: WORK)has finally hit the public markets. Slack opted for adirect listinginstead of a traditional IPO, setting a reference price of $26 earlier this week before trading commenced yesterday. Shares immediately opened nearly 50% higher than that reference price and soared as high as $42 yesterday.
Are Slack investors getting ahead of themselves?
Image source: Slack.
The market is already pricing in extraordinary expectations for Slack going forward, even as the company's revenue growth has been decelerating, a natural result of a growing revenue base. On a trailing-12-month (TTM) basis, Slack has recognized $454.5 million in revenue as of its most recent fiscal quarter, which ended in April.
At that time, it also had 896,057 Class A shares and 529.3 million Class B shares outstanding, according to the prospectus. (That outstanding share count excludes shares issuable to options and restricted stock units that have been granted to employees as stock-based compensation.) Both share classes are identical except for voting rights. Class A shares get one vote per share and Class B shares get 10 votes per share, with Class B shares converting to Class A before they can be sold to public investors. At $38 per share, Slack boasts a market cap of $20.15 billion.
In other words, Slack is trading at over 44.3 times trailing sales. That's an incredibly lofty valuation, even among cloud-based enterprise peers notorious for fetching rich multiples.
To be clear, there's a lot about Slack's business to be excited about. The service is incredibly popular and enjoys rave word-of-mouth recommendations, often considered the best form of advertising a company can get, which leads to bottom-up adoption within enterprises. The number of paid customers that generate over $100,000 in annual recurring revenue (ARR) continues tomarch steadily higher.
But if you stack Slack up against other enterprise collaboration and enterprise software peers, the valuation may be tough to justify.
[{"Company": "Slack", "P/S (TTM)": "44.3"}, {"Company": "Atlassian", "P/S (TTM)": "28.7"}, {"Company": "Dropbox", "P/S (TTM)": "6.8"}, {"Company": "Box", "P/S (TTM)": "4.2"}, {"Company": "Okta", "P/S (TTM)": "33.2"}, {"Company": "ServiceNow", "P/S (TTM)": "18.5"}, {"Company": "Zuora", "P/S (TTM)": "6.8"}]
Data sources: Slack prospectus and Morningstar.
Of course, P/S multiples alone don't tell the whole story, but a sky-high ratio means that Slack will have to execute flawlessly in the years ahead to justify such a premium, and risks getting forcefully punished for any missteps. The company isprioritizing cash flow breakevenoverGAAPprofits for now.
Additionally, with a market cap in excess of $20 billion, Slack has now become an unattractive acquisition candidate. Tech behemoths had reportedly considered scooping up the start-up in recent years as its adoption spread like wildfire.Microsoftsupposedlymulled an $8 billion bid in 2016before CEO Satya Nadella nixed the idea, perhaps hoping to avoid some of hispredecessor's mistakeswhile building competing Microsoft Teams for far cheaper. Even e-commerce giantAmazonconsidered buying Slack in 2017.
Getting taken out by a larger company is still possible, but much less likely at its current valuation. Slack will likely have to meet those optimistic hopes on its own.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors.Evan Niu, CFAowns shares of AMZN and OKTA. The Motley Fool owns shares of and recommends AMZN, TEAM, BOX, MSFT, OKTA, and ZUO. The Motley Fool owns shares of NOW. The Motley Fool has adisclosure policy. |
With EPS Growth And More, International Bancshares (NASDAQ:IBOC) Is Interesting
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Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses.
If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested inInternational Bancshares(NASDAQ:IBOC). While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed.
View our latest analysis for International Bancshares
As one of my mentors once told me, share price follows earnings per share (EPS). That means EPS growth is considered a real positive by most successful long-term investors. Impressively, International Bancshares has grown EPS by 17% per year, compound, in the last three years. As a general rule, we'd say that if a company can keep upthatsort of growth, shareholders will be smiling.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. I note that International Bancshares's revenuefrom operationswas lower than its revenue in the last twelve months, so that could distort my analysis of its margins. While we note International Bancshares's EBIT margins were flat over the last year, revenue grew by a solid 8.6% to US$574m. That's progress.
The chart below shows how the company's bottom and top lines have progressed over time. To see the actual numbers, click on the chart.
While it's always good to see growing profits, you should always remember that a weak balance sheet could come back to bite. So check International Bancshares'sbalance sheet strength, before getting too excited.
It makes me feel more secure owning shares in a company if insiders also own shares, thusly more closely aligning our interests. As a result, I'm encouraged by the fact that insiders own International Bancshares shares worth a considerable sum. Indeed, they have a glittering mountain of wealth invested in it, currently valued at US$295m. Coming in at 12% of the business, that holding gives insiders a lot of influence, and plenty of reason to generate value for shareholders. Very encouraging.
It means a lot to see insiders invested in the business, but I find myself wondering if remuneration policies are shareholder friendly. Well, based on the CEO pay, I'd say they are indeed. For companies with market capitalizations between US$2.0b and US$6.4b, like International Bancshares, the median CEO pay is around US$5.2m.
The International Bancshares CEO received total compensation of just US$2.3m in the year to December 2018. That looks like modest pay to me, and may hint at a certain respect for the interests of shareholders. CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders. I'd also argue reasonable pay levels attest to good decision making more generally.
Given my belief that share price follows earnings per share you can easily imagine how I feel about International Bancshares's strong EPS growth. If you need more convincing beyond that EPS growth rate, don't forget about the reasonable remuneration and the high insider ownership. This may only be a fast rundown, but the takeaway for me is that International Bancshares is worth keeping an eye on. While we've looked at the quality of the earnings, we haven't yet done any work to value the stock. So if you like to buy cheap, you may want tocheck if International Bancshares is trading on a high P/E or a low P/E, relative to its industry.
Of course, you can do well (sometimes) buying stocks thatare notgrowing earnings anddo nothave insiders buying shares. But as a growth investor I always like to check out companies thatdohave those features. You can accessa free list of them here.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Inside Theresa May's great British failure
LONDON — Theresa May knew the futility of her last stand, but was determined to make it anyway. She needed it. The prime minister and her closest aides and officials had gathered in her office in No. 10 Downing Street to discuss their next steps following the collapse of cross-party talks with Labour. “Are you telling me it’s not going to work?” May asked the assembled aides sitting around her table or on sofas nearby, according one senior official familiar with the discussion that day. Her aides did not sugarcoat it: None thought it would work. It was the moment May and her team had tried for so long to avoid — the end of the road. From that point it was only a matter of time. But the prime minister was determined to roll the dice anyway. The scene reveals a prime minister whose commitment, duty and determination crashed up against an almost unprecedented evaporation of authority, power and influence after a series of catastrophic miscalculations. None was more damaging than her decision to call a snap general election in 2017, robbing her of the majority she needed to take Britain out of the EU with a deal acceptable to her Conservative Party. “The imperceptible and unquantifiable phenomenon of political power" had drained away, said one Tory minister who backed her until the end. "It had gone." Theresa May had inherited the biggest political challenge for any U.K. prime minister since 1945 — and proved unequal to the task . Personal and political shortcomings met the inescapable reality of parliamentary arithmetic, EU power and the Irish border . Instead of delivering Brexit and making the country work for provincial Britain , as she promised, she departs leaving an even bigger crisis than the one she inherited, with little — if anything — by way of domestic achievements to show for her premiership. Not delivering May had taken the job with a warning that failing to deliver Brexit would only empower the political extremes. Brexit meant Brexit, she said — it was a revolution that had to be enacted to stave off more dramatic disruption. Story continues “We face a time of great national change,” May declared outside No. 10 on July 13, 2016 — her first day on the job. “And I know, because we’re Great Britain, that we will rise to the challenge.” By May 21, 2019 — less than three years later — she had nothing to show and nothing left to give. “I have tried everything I possibly can to find a way through." Three days later it was over , but the message was the same as it had been almost three years before — a warning that the revolution would not go away. “I feel as certain today as I did three years ago that in a democracy, if you give people a choice you have a duty to implement what they decide,” she said. “The referendum was not just a call to leave the EU but for profound change in our country.” That call for profound change ultimately cost May her job. After March 29, her third and final attempt to force through her Brexit divorce deal, the Conservative Party’s poll ratings nose-dived amid a surge in support for Nigel Farage’s populist Brexit Party demanding a no-deal withdrawal. With May forced to take her finger out of the dyke, the surge now risks overwhelming the British political establishment. The candidates to succeed her as Tory leader and prime minister — Boris Johnson , Dominic Raab, Steve Baker, Esther McVey, Andrea Leadsom, Sajid Javid and Jeremy Hunt — have all spoken of no-deal being preferable to no-Brexit. Jeremy Corbyn ’s Labour — a radical proposition in and of itself — is moving toward backing a second referendum. The crisis is not going away. Will Tanner, who advised the prime minister for five years, and was her deputy head of policy at No. 10 until 2017, said it is ironic that May had been dragged from power by the very forces she warned against. “I think she has long known the political consequences of not delivering on the referendum result and several of her speeches foreshadowed the return of Nigel Farage,” he said. “She has tried always to bring politics back to that mainstream middle-ground of public opinion. The difficulty is that she herself has not been able to be the leader, the prophet for the mainstream middle-ground vision. Partly that has left a vacuum for other people to fill.” Party before Brexit With an eye on her political obituary, May used her resignation speech Friday to insist she has left nothing on the pitch. The truth, her critics counter, is that this is not the case. May went as far as she possibly could without breaking the Conservative Party. She never considered a national government, a confirmatory second referendum or a soft Brexit deal inside the single market and customs union that Labour and the Scottish National Party might be able to support, because to do so would almost certainly have cost her the leadership of her party, or caused a permanent split. Even at the end, she would only compromise so far: Her “bold” final offer to Labour was a guarantee that MPs would be given the chance to vote for or against a second referendum. This was not an offer to support a second referendum in order to pass her deal — it was an offer her aides knew was hollow, because parliament would not support it. “She ignored certain strategic options because she wanted to keep the party together,” one leading Tory MP said. “But the party still imploded. It’s just total, total failure.” May herself admitted she had tried to deliver a Tory Brexit first. “It is true that initially I wanted to achieve [Brexit] predominantly on the back of Conservative and DUP [Northern Ireland’s Democratic Unionist Party] votes,” she said Tuesday. It is this which her critics say reveals her hopeless naivety as a politician. Having surrendered her majority in the 2017 snap election, she clung on promising to stick the course — a promise she could never keep given the competing demands within the Conservative Party and its DUP allies. A former Tory minister who was one of her early supporters said from the moment she lost her majority, the only way Brexit could be delivered was through compromise with the opposition because she would never be able to meet the demands of her backbench ideologues. “She has showed incredibly poor judgement. She confused ideological big beasts with people who are actually capable of delivery,” the former minister said. “Drawing the red lines, triggering Article 50, calling a snap election — all of these were proffered by the big beasts in the party. She was incapable of working out who her real allies were and who were just pushing her in an ideological direction. Even after they tried to get rid of her she always pushed in the way of the hard Brexiteers.” Others think her major strategic mistake was not committing to no-deal seriously. Speaking to POLITICO, former Brexit Secretary David Davis said: “I don’t think her worst enemies would accuse of her of not having a sense of duty. But she interpreted it in a way that was bound to fail.” Squandered advantage May is an unusual politician, let alone prime minister. She is introverted, robotic, uncommunicative. She is almost uniquely comfortable in awkward silence. She has few friends and even fewer true confidantes. “Her inner circle consisted of herself and her husband, that’s it,” said one senior official who worked closely with her. One Tory MP who worked with her closely was more blunt. “You had a prime minister who had almost no politicians as her friends. She never discussed things, she just received advice from people who owed their jobs to her — officials and advisers. She was permanently tone-deaf. It’s really hard to see what is positive of what has come out of this.” But others — non-politicians — who have worked for her reveal a woman who was good to work for — considerate, even kind. At the end of the Chequers summit which saw ministers David Davis and Boris Johnson resign over plans for Britain to adopt a “common rulebook” with the EU, champagne was served to all the officials, aides and ministers who were there. The prime minister, avoiding conversation with her political colleagues, approached one of her more junior aides who was standing without a drink. She asked whether he’d been missed, which he had. “Let me go and get you one,” she said, and before he could stop her she had left the room to find him a glass. “That’s what she’s like,” the official said. For a period near the beginning of her term, this unshowy, intensely private politician seemed untouchable, on the brink of a landslide so huge it would have embarrassed Tony Blair or Margaret Thatcher. Her aide Nick Timothy was boasting that they were redefining Toryism in months, in a way David Cameron and others had failed to do for years. In March 2017, May was, at times, more than 20 points ahead in the polls and set for a majority comfortably more than 100. In the space of three months, she threw it all away, squandering her advantage on an election which exposed her flaws in the glare of a national campaign. And yet she still took home comfortably more than 40 percent of the vote. “[She got] the highest Tory vote share since Margaret Thatcher, more votes than Tony Blair ever received, more working-class votes than a Conservative government has ever got,” Tanner says. “We very quickly forget that at a time when everyone is calling for her head.” Brexit 'Magna Carta' Whatever May's personal strengths or weaknesses, her legacy is not only one of tragic, total failure but also a noose her successors will struggle to escape from: the thrice rejected withdrawal agreement. Within hours of May’s announcement, the EU confirmed it would not change the deal. "There is no change,” European Commission spokeswoman Mina Andreeva confirmed. The deal is the deal, whoever is in Number 10. Irish deputy PM Simon Coveney was quick to reiterate the same point. “The chance of the EU looking again, making any changes, is absolutely minuscule,” one aide close to May said. Even after no-deal, it will come back to the withdrawal agreement, he added. “It will always come back to this. As soon as you have no-deal and you start negotiating, the Irish will demand it goes back to the backstop.” May’s successor will, therefore, be left with the same problem: a parliament which will not willingly allow a no-deal. One Tory minister who now favors no-deal was unsure what May’s successor could realistically do. “I’m very skeptical that anyone who comes in will do any better,” he said. “The real issue is how you can negotiate with the EU. To put it all at her door is really harsh." "The only way anything might have been any different is if we had been united and committed to no-deal if we didn’t get what we wanted," the minister added. "But that was never the case, and therefore we were stuffed — and that’s not her fault.” A second senior Tory MP agreed. “My own question is whether it could’ve been avoided, because Brexit is a complete wrecking ball for the Tory party, in fact for anybody. It just toxifies whoever touches it.” May’s real legacy, he said, was the Withdrawal Agreement, which was “pickled” whichever individual occupied Number 10. “It’s there forever — a Brexit Magna Carta.” The longer the Conservative Party refuses to face up to this fact, the longer the crisis will last. “The Tory party will still be in delusion land because the party is not prepared to face the trade offs, and therefore to be a frontrunner in the contest you still have to indulge the party’s fantasies," the MP said. "If they indulge these fantasies, they will simply end up in the same place as Theresa May.” Even this arch-critic did not believe May would be remembered as the real Brexit enemy. “She is the prime minister who played a bad hand really badly,” he said. “But in the league table of blame, Cameron will rank higher than her. Cameron was just gambling more than even he realized he was gambling.” This story was originally published by POLITICO Europe. |
Delfin asks U.S. regulators for more time to build floating LNG project
June 21 (Reuters) - Delfin LNG LLC asked U.S. federal energy regulators for a three-year and six-month extension until March 28, 2023 to build facilities proposed to connect floating liquefied natural gas (FLNG) vessels off the coast of Louisiana:
* The U.S. Federal Energy Regulatory Commission (FERC) issued an order on Sept. 28, 2017 authorizing Delfin to build and operate the facilities to transport and deliver natural gas to FLNG vessels in federal waters off Cameron Parish in Louisiana.
* The FERC order required Delfin to complete the facilities within two years of the order date.
* Since FERC issued the order, Delfin said it "has worked diligently to further its development of the project."
* "Due to the detailed nature of the engineering design of the offshore facilities, which includes floating liquefaction technology, and the complexity of developing the necessary commercial arrangements, progress on the project, including the onshore facilities, has been slower than originally anticipated," Delfin said.
* In March, the company said plans to construct the FLNG vessel in China, which may also provide funding and buy part of its output, were moving ahead despite trade tension between the countries.
* The Delfin LNG project is designed to produce up to 13 million tonnes per annum (mtpa) of LNG or about 1.7 billion cubic feet per day (bcfd) of natural gas. One billion cubic feet is enough gas to supply about 5 million U.S. homes for a day.
* Delfin has said it hopes to make a final investment decision to build the project in 2019 and put the facility into service in 2023.
* Officials at the company were not immediately available for comment.
(Reporting by Scott DiSavino Editing by James Dalgleish) |
Nancy Pelosi Gifts Justin Trudeau Chocolate and Wine After She Loses NBA Finals Bet
Looks like U.S.-Canada relations are doing just fine after the Toronto Raptors’ defeat of the Golden State Warriors in the 2019 NBA Finals . Following up on a friendly bet on the outcome of the championship, House Speaker Nancy Pelosi — who represents California in Congress — gifted Canadian Prime Minister Justin Trudeau a basket of food and wine during a press conference on Thursday. “I’m here to settle the wager,” Pelosi, 79, said in a video of the press conference posted to her Twitter account. “As I promised, products of the great state of California — starting with chocolate, almonds, walnuts, pistachios and wine.” According to Pelosi, the two had made the bet while both were on a trip to Normandy, France, earlier this month, commemorating the 75th anniversary of D-Day. RELATED: Toronto Raptors Defeat Golden State Warriors in Tight Game to Win Their First-Ever NBA Championship Accepting her gift, Trudeau, 47, responded, “Canadians are gracious in defeat and even more gracious in victory.” The prime minister then pulled out his own present for Pelosi — Raptors swag and Canadian chocolate. “I don’t expect you to wear it,” Trudeau joked about the Raptors apparel. It’s wonderful to once again welcome @JustinTrudeau to the U.S. Capitol. And as promised, today I am handing over a selection of California’s finest following the @Raptors victory in the #NBAFinals last week. https://t.co/y4fI3bxPro — Nancy Pelosi (@SpeakerPelosi) June 20, 2019 The Raptors beat the Warriors 114-110 in Game 6 last week, marking their first-ever NBA Championship. It was the fifth straight finals appearance for the Warriors, and the first time the Raptors had ever made it to the tournament. Story continues RELATED: Steph Curry Calls Drake to Congratulate Him After Raptors’ Championship Win: ‘Y’All Deserve It, Man’ After the game, Trudeau tweeted at Pelosi, writing, “Hey @SpeakerPelosi – sorry our bet didn’t work out for you but I’m looking forward to those California delicacies you owe me. I like dark chocolate, by the way.” “You had quite a win, @JustinTrudeau,” the House Speaker said . “I’m still recovering. Still gathering my California delicacies. Wasn’t prepared to lose. Congratulations to @NBA champions #WeTheNorth – truly great competitors who won over truly great @warriors.” |
Do International Bancshares's (NASDAQ:IBOC) Earnings Warrant Your Attention?
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For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit. But as Warren Buffett has mused, 'If you've been playing poker for half an hour and you still don't know who the patsy is, you're the patsy.' When they buy such story stocks, investors are all too often the patsy.
In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies likeInternational Bancshares(NASDAQ:IBOC). 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.
Check out our latest analysis for International Bancshares
The market is a voting machine in the short term, but a weighing machine in the long term, so share price follows earnings per share (EPS) eventually. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Impressively, International Bancshares has grown EPS by 17% per year, compound, in the last three years. As a general rule, we'd say that if a company can keep upthatsort of growth, shareholders will be smiling.
One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. Not all of International Bancshares'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 International Bancshares's EBIT margins were flat over the last year, revenue grew by a solid 8.6% to US$574m. That's a real positive.
The chart below shows how the company's bottom and top lines have progressed over time. To see the actual numbers, click on the chart.
While profitability drives the upside, prudent investors alwayscheck the balance sheet, too.
It makes me feel more secure owning shares in a company if insiders also own shares, thusly more closely aligning our interests. As a result, I'm encouraged by the fact that insiders own International Bancshares shares worth a considerable sum. Indeed, they have a glittering mountain of wealth invested in it, currently valued at US$295m. Coming in at 12% of the business, that holding gives insiders a lot of influence, and plenty of reason to generate value for shareholders. So it might be my imagination, but I do sense the glimmer of an opportunity.
It means a lot to see insiders invested in the business, but I find myself wondering if remuneration policies are shareholder friendly. Well, based on the CEO pay, I'd say they are indeed. For companies with market capitalizations between US$2.0b and US$6.4b, like International Bancshares, the median CEO pay is around US$5.2m.
The CEO of International Bancshares only received US$2.3m in total compensation for the year ending December 2018. That looks like modest pay to me, and may hint at a certain respect for the interests of shareholders. While the level of CEO compensation isn't a huge factor in my view of the company, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. I'd also argue reasonable pay levels attest to good decision making more generally.
You can't deny that International Bancshares has grown its earnings per share at a very impressive rate. That's attractive. If you need more convincing beyond that EPS growth rate, don't forget about the reasonable remuneration and the high insider ownership. This may only be a fast rundown, but the takeaway for me is that International Bancshares is worth keeping an eye on. Of course, just because International Bancshares is growing does not mean it is undervalued. If you're wondering about the valuation, check outthis gauge of its price-to-earnings ratio, as compared to its industry.
Of course, you can do well (sometimes) buying stocks thatare notgrowing earnings anddo nothave insiders buying shares. But as a growth investor I always like to check out companies thatdohave those features. You can accessa free list of them here.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
US manufacturers blame trade wars for slip in record-level optimism
Optimism amongU.S. manufacturersslipped in the second quarter of 2019 from last year's record highs, according to the industry’s top trade group, astrade tensionswithChinaand Mexico dampeneconomic forecasts.
Nearly 80 percent of firms have a positive outlook for their operations, according to the National Association of Manufacturer’s quarterly survey, down from nearly 90 percent in the first quarter.
Optimism peaked at 93 percent last year, a record in the survey's 20-year history as the GOP-led tax cuts fueled a bustling economy.
“Clearly, optimism is still strong among manufacturers, but you can’t overlook the fact that trade uncertainties are causing concern for manufacturers,” said NAM Chief Economist Chad Moutray, who conducted the survey.
Key to improving the outlook, Moutray said, is approving USMCA, completing a trade deal with China and President Trump removing his threat to impose tariffs on auto imports to the U.S.
Driving much of the concern is the ongoing trade discussions with China, as well as the uncertain future of a new trade deal with Canada and Mexico. Among the 689 respondents to the survey, 56 percent said they were concerned about trade, while 50 percent listed rising raw material prices as a worry.
Mexico on Wednesday ratified the United States–Mexico–Canada Agreement (USMCA), but it remains unclear when House Speaker Nancy Pelosi, D-Calif., plans to bring the measure up for a vote. Democrats are concerned over the labor provisions and pharmaceutical protections in the deal meant to replace the North American Free Trade Agreement.
On the China front, Trump and President Xi Jinping will meet at the upcoming G20 summit in Japan. Top U.S. and China trade officials are expected to restart trade negotiations prior to that gathering.
The White House, however, is still eying tariffs on an additional $300 billion in shipments from Beijing, a move that corporate America is warning could lead to higher prices for consumers.
Companies flocked to Washington D.C. this week to push back against the new duties, telling the administration that it will be difficult to source many goods outside of China and warning that shifting production back to the U.S. is unlikely to produce many new jobs.
While economists have largely downplayed the threat of an economic recession, U.S. firms are warning that a slowdown is approaching.
The economy added 75,000 jobs in May, much smaller than experts expected. And manufacturing jobs, which had been a source of significant growth in recent years, slowed to an increase of 3,000 positions last month.
The Federal Reserve is strongly hinting that it will cut interest rates this year, a move that is likely to spur renewed growth.
The unemployment rate, however, still remains at a decades low, making it more difficult for companies to find qualified workers. Nearly 69 percent of manufacturers listed finding and retaining the necessary workforce as a key concern, according to the survey from the National Association of Manufacturers.
Respondents expect wages to 2.3 percent over the next 12 months. Overall, prices are estimated to rise 2 percent, while increases in raw material costs slow to 3.1 percent.
Sales growth is expected to decrease to 3.4 percent in the next year, down from the prior 4.4 percent outlook. Meanwhile, insurance costs are expected to grow by 6.5 percent.
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Health care is one of the top issues on the 2020 campaign trail, as Democrats increasingly call for a government-financed system, often referred to as “Medicare for All,” while the Trump administration continues to try to repeal and replace Obamacare.
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NY Senate Confirms Acting Superintendent of NYDFS
The New York State Senate has confirmed Linda Lacewell as new superintendent for the Department of Financial Services, the body responsible for regulating nearly 1,500 financial institutions with assets of more than $2.6 trillion and the cryptocurrency industry.
Lacewell was nominated for the position by Governor Andrew Cuomo and previously served as chief of staff for the Governor and acting superintendent for the DFS. She had been serving in the role as the state’s top financial regulator since February 2019.
Since 2015, the DFS has taken the lead nationally to regulate the virtual currency market. The agency’s central aims in regulating the industry are to prevent money laundering, protect consumers, and lay out rules related to cybersecurity. The department has approved 19 crypto companies since introducing BitLicense requirements in June 2015.
Related:Robinhood Opens Trading for 7 Cryptocurrencies in New York
Under Lacewell’s leadership as acting superintendent the DFS has continued to expand the virtual currency market in New York by offering licenses for new entrants.
Most recently, Lacewell granted the application of Bitstamp USA, an Luxembourg-based exchange, to hang its shingle in New York.
“A regulated industry protects customers while supporting innovation and ensuring our financial services sector is a vibrant part of New York’s economy,” Lacewell said at the time. She suggested the expansion of the market encourages competition.
Additionally, the department has made moves to secure the trading of privacy-protecting cryptocurrency, when granting the Gemini exchange a BitLicense to offer trading in Zcash.
Related:Coinbase Opens Up XRP Trading for New York Residents
However, the regulator’s requirements are anything but lax. In April, Bittrex was denied a BitLicense for failing to comply with KYC rules and shirking its “obligation to conduct appropriate due diligence on all types of assets,” as Shirin Emami, executive deputy superintendent for banking at the DFS, said in aCoinDeskop-ed.
“It is an honor and a privilege to be confirmed as Superintendent of the Department of Financial Services,” Superintendent Lacewell said in a statement. “I thank Governor Cuomo and the Members of the New York State Senate for the opportunity to lead this essential agency and I look forward to working with the entire Legislature at a time when it has never been more important to protect consumers, safeguard markets, enforce the law and encourage real financial services innovation.”
Lacewell previously established the Cyber Division, which focuses on consumer protection and cybersecurity, and the Consumer Protection and Financial Enforcement Division, to fight consumer fraud as well as ensure compliance from regulated firms.
“Linda understands what good public policy is and intuitively knows that markets work best when there’s an even playing field with clear rules preventing fraud, abuse and unfairness,” said Benjamin Lawsky, the agency’s first superintendent, at the time she was first announced acting principle.
She is the recipient of the Henry L. Stimson Medal and the Attorney General’s Award for Exceptional Service.
New York City skyline photo via Shutterstock
• Banking, Bitfinex and the Hidden Irony of Crypto’s Newest Controversy
• NYPD Warns $2 Million Stolen in Scam Involving Bitcoin |
Does International Bancshares Corporation (NASDAQ:IBOC) Have A Particularly Volatile Share Price?
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Anyone researching International Bancshares Corporation (NASDAQ:IBOC) might want to consider the historical volatility of the share price. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. The second sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market.
Some stocks are more sensitive to general market forces than others. Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. To make good use of it you must first know that the beta of the overall market is one. A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.
View our latest analysis for International Bancshares
Zooming in on International Bancshares, we see it has a five year beta of 1.4. This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. Based on this history, investors should be aware that International Bancshares are likely to rise strongly in times of greed, but sell off in times of fear. Share price volatility is well worth considering, but most long term investors consider the history of revenue and earnings growth to be more important. Take a look at how International Bancshares fares in that regard, below.
International Bancshares is a fairly large company. It has a market capitalisation of US$2.5b, which means it is probably on the radar of most investors. It takes a lot of money to influence the share price of large companies like this one. That makes it interesting to note that its share price has a history of sensitivity to market volatility. There might be some aspect of the business that means profits are leveraged to the economic cycle.
Since International Bancshares tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as International Bancshares’s financial health and performance track record. I urge you to continue your research by taking a look at the following:
1. Future Outlook: What are well-informed industry analysts predicting for IBOC’s future growth? Take a look at ourfree research report of analyst consensusfor IBOC’s outlook.
2. Past Track Record: Has IBOC been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look atthe free visual representations of IBOC's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how IBOC measures up against other companies on valuation. You could start with thisfree list of prospective options.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Writer says she was raped by Trump in 1990s
In a first-person account published Friday in New York magazine, writer E. Jean Carroll said she was raped by Donald Trump in the 1990s. Trump denied the allegation in a statement from the White House late Friday. Carroll, a longtime columnist for Elle magazine and the author of five books, details an encounter with Trump in the mid-1990s in the upscale Bergdorf Goodman department store in midtown Manhattan. Carroll was in her early 50s at the time. Trump and Carroll recognized each other in the store, and Trump told her he needed to buy a gift for a girl, according to Carrolls account. E. Jean Carroll and Donald Trump. (Yahoo News photo illustration; photos: Facebook, Getty Images) The alleged assault occurred in the dressing room after Trump suggested Carroll try on a lace bodysuit. Carroll says Trump pushed her against the wall, and forcing his fingers around my private area, thrusts his penis halfway or completely, Im not certain inside me. After three minutes, she was able to break free and run from the dressing room. Carroll joins at least 16 other women who have made sexual assault allegations against the president. In December 2017, White House press secretary Sarah Sanders said all those women were lying. Photo: New York magazine In a statement to New York, a White House official said, 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. Later the White House issued a statement in Trumps name: Regarding the story by E. Jean Carroll, claiming she once encountered me at Bergdorf Goodman 23 years ago. Ive never met this person in my life. She is trying to sell a new bookthat 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 agendalike Julie Swetnick who falsely accused Justice Brett Kavanaugh. Its just as bad for people to believe it, particularly when there is zero evidence. Worse still for a dying publication to try to prop itself up by peddling fake newsits an epidemic. Story continues Ms. Carroll & New York Magazine: No pictures? No surveillance? No video? No reports? No sales attendants around?? I would like to thank Bergdorf Goodman for confirming they have no video footage of any such incident, because it never happened. False accusations diminish the severity of real assault. All should condemn false accusations and any actual assault in the strongest possible terms. If anyone has information that the Democratic Party is working with Ms. Carroll or New York Magazine, please notify us as soon as possible. The world should know whats really going on. It is a disgrace and people should pay dearly for such false accusations. The excerpt from Carrolls forthcoming book, What Do We Need Men For? A Modest Proposal, was accompanied on the magazines website with a picture of Trump, Carroll and their then spouses at a party in 1987. Trumps behavior in Carrolls account recalls how the president said he behaves around beautiful women in the now infamous Access Hollywood tape released in 2016. You know, Im automatically attracted to beautiful I just start kissing them, Trump told Billy Bush. Its like a magnet. Just kiss. I dont even wait. And when youre a star, they let you do it. You can do anything. The date of the assault is unclear. Carroll says it occurred in either late 1995 or early 1996. In the excerpt, Carroll, now 75, does not explain why she decided to come forward. She says she fears receiving death threats or being dragged through the mud. She writes, joining the 15 women whove come forward with credible stories about how the man grabbed, badgered, belittled, mauled, molested, and assaulted them, only to see the man turn it around, deny, threaten, and attack them, never sounded like much fun. Journalist E. Jean Carroll in 2015. (Photo: Astrid Stawiarz/Getty Images for Elle) Carroll writes that she told two friends of the assault shortly after it happened. One of them encouraged her to go to the police, and the other advised against it. Tell no one. Forget it! He has 200 lawyers. Hell bury you. Both friends remember the conversations decades later, and confirmed Carrolls account to New York. Carrolls book will be released July 2. The excerpt alleges assaults by five other men, including Les Moonves, the former CEO of CBS. Moonves resigned in disgrace after being accused of sexual assault in September 2018. Carroll claims he kissed and groped her in a hotel elevator after she finished interviewing him for an article. _____ Read more from Yahoo News: Trump wants his next press secretary to be a cable news street fighter For politicians, the D.C. elite and even a presidential candidate, a Navy program has been an attractive fast-track path to military service Trump admits his Cabinet had some clinkers Confronted with multiple errors in his new Trump book, a testy Michael Wolff says, You have to trust me Why are people willing to risk death for a selfie? PHOTOS: Storms bring flooding and power outages across the U.S. |
What You Should Know About Integra LifeSciences Holdings Corporation's (NASDAQ:IART) Financial Strength
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Investors are always looking for growth in small-cap stocks like Integra LifeSciences Holdings Corporation (NASDAQ:IART), with a market cap of US$4.5b. However, an important fact which most ignore is: how financially healthy is the business? Understanding the company's financial health becomes vital, as mismanagement of capital can lead to bankruptcies, which occur at a higher rate for small-caps. The following basic checks can help you get a picture of the company's balance sheet strength. However, this is not a comprehensive overview, so I suggest youdig deeper yourself into IART here.
Over the past year, IART has reduced its debt from US$1.8b to US$1.5b , which includes long-term debt. With this debt repayment, IART's cash and short-term investments stands at US$160m , ready to be used for running the business. Additionally, IART has produced cash from operations of US$188m during the same period of time, leading to an operating cash to total debt ratio of 13%, indicating that IART’s current level of operating cash is not high enough to cover debt.
Looking at IART’s US$288m in current liabilities, it appears that the company has been able to meet these commitments with a current assets level of US$823m, leading to a 2.86x current account ratio. The current ratio is calculated by dividing current assets by current liabilities. Generally, for Medical Equipment companies, this is a reasonable ratio since there's a sufficient cash cushion without leaving too much capital idle or in low-earning investments.
IART is a relatively highly levered company with a debt-to-equity of 99%. This is a bit unusual for a small-cap stock, since they generally have a harder time borrowing than large more established companies. 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 before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In IART's case, the ratio of 4.43x 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.
IART’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow. Since there is also no concerns around IART's liquidity needs, this may be its optimal capital structure for the time being. I admit this is a fairly basic analysis for IART's financial health. Other important fundamentals need to be considered alongside. I recommend you continue to research Integra LifeSciences Holdings to get a better picture of the small-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for IART’s future growth? Take a look at ourfree research report of analyst consensusfor IART’s outlook.
2. Valuation: What is IART 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 IART 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. |
Wendy Williams admits that she’s still ‘madly in love’ with Kevin Hunter
Wendy Williams may have filed for divorce from Kevin Hunter — and stepped out with a new man on both coasts— but it hasn’t made her instantly stop loving her longtime spouse. While appearing at the Black Enterprise FWD Conference in Charlotte, N.C. on Thursday, Williams talked about moving on professionally and personally from Hunter, who also served as her manager and an executive producer on The Wendy Williams Show . She said it’s been hard because Hunter, who reportedly had a baby with another woman earlier this year, had been her biggest supporter. “My husband and I were partners,” Williams told the crowd. “But I just had to clean the slate and start over.” And while this is a new avenue — being single at 54 — she knows she can do it because she’s done it before. “I didn’t meet my husband until my 29th birthday,” Williams said. At that point, “I was already a property owner. I was already a radio star. I was already the boss of my own life. So it’s not new — I’m returning to that life but with a bigger platform.” . @WendyWilliams talks about her career before getting married. #BEintheQC pic.twitter.com/0Z68nDBsG4 — Black Enterprise (@blackenterprise) June 20, 2019 While she proclaimed that she loves her new life — she’s been stepping out with a much younger man (with a questionable past ) — she shares it is scary as well. “I will say this: There was no one else that knew that I could do this,” Williams said of her success, according to the website The Grio . “[Kevin] was the one who told me I could do it. When Kevin entered my life, he was 23 and I was 29 and he was available. It was always me, my attorney and Kevin. His name wasn’t on the paperwork, but he was a huge part of that.” She said. “Now, I cheer for myself, but I’m still madly in love with him. You see it in my eyes.” "I was already a boss of my own life before I met my husband" @WendyWilliams #BEintheQC pic.twitter.com/Dxbb5nxVzs — Black Enterprise (@blackenterprise) June 20, 2019 Williams also said that, after dissolving The Hunter Foundation in May, her charity with her soon-to-be ex to help addicts, she’ll start up another one once she gets herself sorted out first. Story continues “ When I can get myself well, then I can give back, but I had to heal myself first,” said Williams, who relapsed earlier this year. “You can’t really help anyone or share anything until you’re whole yourself.” “Take care of yourself first before you start all of this giving back...it’s not called being selfish, it’s called surviving.” ~ @WendyWilliams #BEintheQC pic.twitter.com/q6i17Hmk3o — Black Enterprise (@blackenterprise) June 20, 2019 Williams’s marriage drama has played out for much of this year. Amid reports that Hunter fathered a baby with his mistress, Williams filed for divorce soon after moving out of a sober living facility. Hunter was quickly fired from her show. He issued a vague public apology for unspecified “wrongs.” It has since been reported that police investigated a tip that Hunter had tried to poison Williams, but no charges were filed. Hunter and the couple’s only child, Kevin Jr., also had a physical fight during which the 19-year-old was arrested . Read more on Yahoo Entertainment: Matthew Perry speaks out after photos of himself looking 'disheveled' raise concern 'Legend' Mick Jagger back at it as Rolling Stones tour resumes two months after his heart surgery Bella Thorne says she taught herself to read and count Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle’s newsletter. View comments |
Is Integra LifeSciences Holdings Corporation (NASDAQ:IART) Trading At A 27% Discount?
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In this article we are going to estimate the intrinsic value of Integra LifeSciences Holdings Corporation (NASDAQ:IART) by projecting its future cash flows and then discounting them to today's value. This is done using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.
Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model.
View our latest analysis for Integra LifeSciences Holdings
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 need to discount the sum of these future cash flows to arrive at a present value estimate:
[{"": "Levered FCF ($, Millions)", "2019": "$186.33", "2020": "$257.33", "2021": "$315.50", "2022": "$362.96", "2023": "$404.16", "2024": "$439.58", "2025": "$470.15", "2026": "$496.89", "2027": "$520.73", "2028": "$542.49"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x3", "2020": "Analyst x3", "2021": "Analyst x2", "2022": "Est @ 15.04%", "2023": "Est @ 11.35%", "2024": "Est @ 8.76%", "2025": "Est @ 6.95%", "2026": "Est @ 5.69%", "2027": "Est @ 4.8%", "2028": "Est @ 4.18%"}, {"": "Present Value ($, Millions) Discounted @ 8.97%", "2019": "$171.00", "2020": "$216.72", "2021": "$243.84", "2022": "$257.44", "2023": "$263.06", "2024": "$262.57", "2025": "$257.72", "2026": "$249.96", "2027": "$240.40", "2028": "$229.83"}]
Present Value of 10-year Cash Flow (PVCF)= $2.39b
"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. 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%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$542m × (1 + 2.7%) ÷ (9% – 2.7%) = US$8.9b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$8.9b ÷ ( 1 + 9%)10= $3.79b
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 $6.18b. 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 $72.27. Compared to the current share price of $53.11, the company appears a touch undervalued at a 27% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.
We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Integra LifeSciences Holdings 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%, which is based on a levered beta of 1.047. 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 Integra LifeSciences Holdings, I've put together three further aspects you should further examine:
1. Financial Health: Does IART 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 IART'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 IART? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NASDAQ every day. If you want to find the calculation for other stocks justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Which is the Better Dividend Aristocrat, McDonald’s or Coca-Cola?
Dividend stocks give investors a cushion of cash flow when times get tough.Dividend Aristocrats,, the giants that have raised dividends for 25 years in a row, are among the most reliable dividend payers there are.McDonald's(NYSE: MCD)andCoca-Cola(NYSE: KO)are two such stalwarts. However, not all Dividend Aristocrats are created equal.
To decide which company is the better dividend payer, investors should analyze several factors: the company's dividend yield, its growth story, and the amount of earnings it pays out as dividends. Let's compare our Dividend Aristocrats on these measures to see which is the better investment today.
Source: McDonald's
In baseball, the supreme measure used to compare hitters is batting average. For dividend stocks, it is dividend yield. Dividend yield measures the size of a company's annual dividend payout relative to its share price. It is calculated by dividing the annual dividend per share by the current share price. Think of yield as a quick way to figure out how much cash flow an investment will send your way each year through dividends. For example, a stock with a yield of 4% will slide over $4,000 annually (before taxes) on a $100,000 investment.
Coca-Cola has an advantage over McDonald's when it comes to dividend yield. Coke has a current yield of just over 3%, while McDonald's hovers around 2.25%. Looking back five years, McDonald's paid a yield closer to 3.5%, while Coke was still in the neighborhood of 3%. Why did the McDonald's yield drop while Coke's remained the same?
The answer can be found in the share price changes for each of these companies.
Source:YCharts
Coke's share price has risen by 26% over the last five years, whereas McDonald's shares have skyrocketed by 105%. Even if a company's dividend per share increases, the business's yield will decline if share prices increase faster than dividends increase -- the denominator of the yield calculation is increasing faster than the numerator. By digging a little deeper, we can uncover the stories behind these price fluctuations.
Over time, every company will face its share of challenges. How management responds to these challenges will determine the fate of the business, and of shareholder returns.
Since 2015, McDonald's has been executing on a turnaround plan focused on slimming down its corporate management structure, serving up higher quality menu items, and delivering speedier customer service. These initiatives have shown up in stores in the form of Sirloin Third Pound burgers and sleek self-ordering kiosks that would not feel out of place on the bridge of the Starship Enterprise.
Even better, McDonald's plan has worked. Gross margins have increased by over one-thousand basis points and earnings have grown at a CAGR of 16.25%, since 2015. Think of those gross margins in terms of selling a hamburger -- gross margin is the sales dollars left over from selling the hamburger after you pay for the patty and the bun. For investors, McDonald's turnaround led to an outstanding run-up in its share price, which, in turn, knocked down its yield. This was great news for the guy holding shares back in 2015. For the investor seeking yield today, however, it could leave us hungry for more.
Turning to the world of Coke, the purveyor of pop has been slogging through a nightmare of consumers heading for the exits. Over the last 20 years, consumption of full-calorie soda has dropped by 25%, while bottled water sales have shot to the rafters. This exodus has fizzed up through Coke in the form of flat revenues and a tepid 1.88% earnings CAGR over the last 10 years. Management rallied in 2014 with a plan to bust the slump by using, among other tools, bottler refranchising and investments in healthier beverages such as organic, cold-pressed juices and plant-based protein drinks. However, unlike McDonald's blueprint, this line-up has produced limited results.
Over the last couple of years, revenues at Coke have dropped by double digits and over the last five years earnings growth has bounced from extreme lows of -81% to highs of 417%. Pings of salvation, however, have surfaced in the form of higher gross margins in recent years and comparable earnings growth of 9% in 2018. This last bit of news is refreshing for Coke shareholders, as it indicates the plan may be taking root. However, the previous onslaught led to stagnant share prices and left the yield hovering around 3%. For the investor holding shares in 2015, this turned out poorly, but for the investor looking for income today, this yield is more attractive than McDonald's.
When it comes to dividend yield, on first glance it appears that Coca-Cola is the Mickey Mantle of income investing while McDonald's is a minor league hitter. However, a closer look at the stories behind these yields reveals that McDonald's has been slugging away successfully while Coca-Cola has come up dry. A high yield alone does not prove that a company is a good investment.
Companies have a bevy of options for how to use their earnings. Management can use earnings to pay down debt, buy new brands, repurchase shares, or, in our case, pay out dividends. The amount of earnings paid out as dividends is called the payout ratio, which is calculated by simply dividing the company's per share dividend payments by its earnings per share. Think of the payout ratio as the amount of wiggle room a company has to continue paying out dividends. If the ratio is 100%, then the company has run out of room and is using all of its earnings to pay its dividends. Wise investors will check for a wide berth in the payout ratio.
For our Dividend Aristocrats, the expectations are that management will continue to raise dividends regardless of what earnings do. After-all, company leaders don't want to break investors' hearts by snapping a 25-year streak of dividend raises. These raises are not a problem for companies that are growing earnings. For those that have struggled, however, this is bad news.
McDonald's management has raised the quarterly dividend by a compounded rate of 7.4% over the last five years while earnings have grown at a CAGR of 6.32%. This has led to a payout ratio of around 60% which gives the company a healthy forty cents of wiggle room out of every dollar it earns to cover the dividend payment.
For Coke, though, things are becoming claustrophobic. Over the last five years, management has raised the quarterly dividend by a compounded rate of 5% while earnings have shrunk by a CAGR of nearly 5%. This disastrous pinch has led to a payout ratio of nearly 96%. This four cents of wiggle room should raise alarm bells for dividend investors, as unsustainable payouts lead to dividend cuts regardless of whether a company has a long history of dividend increases.
Dividend Aristocrats give investors a level of comfort that dividends will be paid and raised long into the future. However, a closer look at yields, growth stories, and payout ratios shows that not all Dividend Aristocrats are alike. In the face-off between McDonald's and Coke, we find that Coke's recent story is rife with slowing growth and a squeezed payout that threatens the cash flow to investors. McDonald's, on the other hand, has hit a solid line-drive with a turnaround plan that has grown earnings and created enough space to reliably cover continued dividend increases. Wise dividend investors hungry for yield will add McDonald's to their starting line-up.
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Adam Brownleeowns shares of Coca-Cola and McDonald's. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy. |
Is There An Opportunity With Integra LifeSciences Holdings Corporation's (NASDAQ:IART) 27% Undervaluation?
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Today we will run through one way of estimating the intrinsic value of Integra LifeSciences Holdings Corporation (NASDAQ:IART) by taking the foreast future cash flows of the company and discounting them back to today's value. I will use the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. 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 Integra LifeSciences Holdings
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 start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value:
[{"": "Levered FCF ($, Millions)", "2019": "$186.33", "2020": "$257.33", "2021": "$315.50", "2022": "$362.96", "2023": "$404.16", "2024": "$439.58", "2025": "$470.15", "2026": "$496.89", "2027": "$520.73", "2028": "$542.49"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x3", "2020": "Analyst x3", "2021": "Analyst x2", "2022": "Est @ 15.04%", "2023": "Est @ 11.35%", "2024": "Est @ 8.76%", "2025": "Est @ 6.95%", "2026": "Est @ 5.69%", "2027": "Est @ 4.8%", "2028": "Est @ 4.18%"}, {"": "Present Value ($, Millions) Discounted @ 8.97%", "2019": "$171.00", "2020": "$216.72", "2021": "$243.84", "2022": "$257.44", "2023": "$263.06", "2024": "$262.57", "2025": "$257.72", "2026": "$249.96", "2027": "$240.40", "2028": "$229.83"}]
Present Value of 10-year Cash Flow (PVCF)= $2.39b
"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. 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 9%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$542m × (1 + 2.7%) ÷ (9% – 2.7%) = US$8.9b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$8.9b ÷ ( 1 + 9%)10= $3.79b
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $6.18b. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of $72.27. Compared to the current share price of $53.11, the company appears a touch undervalued at a 27% 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.
We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Integra LifeSciences Holdings 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%, which is based on a levered beta of 1.047. 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 Integra LifeSciences Holdings, I've compiled three further factors you should look at:
1. Financial Health: Does IART 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 IART'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 IART? 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. |
Opinion: Illinois' Bill To Legalize Cannabis Will Create A Failing Market
By Jonathan Loiterman.
The public debate surrounding cannabis policy often focuses on the fundamental question of legalization, but the details ofhowcannabis policy is implemented are critical to understanding and forecasting legalization’s social and financial impact. Well intended, pro-legalization advocates should not be lured by bad policy. Important details about things like licensing, canopy-sizes, and rules governing competition will have a huge social and financial impact in the short term and erect enduring economic structures that will be extraordinarily difficult to disrupt decades into the future.
After historic votes to approve the Illinois Cannabis Regulation and Tax Act (HB 1438) in the Illinois House and Senate, Illinois Governor J.B. Pritzker has pledged to sign the bill into law. Unfortunately, the law is terrible for almost everyone in Illinois. The law will, by design, allocate nearly all the economic benefit of legalization to a tiny group of pre-selected political and economic elites,shrouded in a legal cloak of secrecy,who received medical licenses in 2015. It will also fail to achieve its criminal and social justice goals.
The structure of the law is so prone to abuse that at least one politician was alreadyalready under investigationforattempts to sell access to the licensesbefore the bill has passed.
In 2015, Illinois awarded, by statute, 20 cultivation licenses as part of a pilot medical program. Close to 200 applicants filed for those 20 licenses, but just two companies were awarded nearly a third of the licenses and about a dozen wound up controlling all of them in a process that was entirely opaque.
This new law provides that those legacy licensees will have access to a class of license (a “cultivation center”) for which no one else in the public may ever be able to apply. Cultivation centers may have up to 210,000 square feet of grow canopy each, and owners of cultivation centers may have an interest in up to 3 such licenses. Total available production of these licenses: 4,200,000 square feet.
The only new cultivation licenses that will be available are those for “craft growers,” who will be initially limited to just 5,000 square feet of canopy and an interest in only one such license. This law would only initially allow 40 such growers by 2020, who would collectively control just 200,000 square feet of total production capacity with another 60 available by 2021, a total of 500,000 square feet for all of them put together.
The law mandates that each legacy medical license will control more production capacity than all of the newly licensed growers combined. Some individual companies will own up to three times all the new production capacity authorized by this law. As a group, the 2015 cultivator licensee cohort would start off controlling more than 95% of the supply of cannabis for all downstream licensees through at least 2021, with any further licensing up to the discretion of the same agencies who awarded these cultivation centers this unearned dominance in the first place. That dominance could never be disrupted by free market forces since the craft growers are legally prohibited from expanding capacity beyond certain strict limits applicable only to the new growers.
This means that adjacent businesses that supply equipment, real estate, soil, lumber, professional services, and other needs for cannabis businesses will all suffer from restricted competition and scale in the market and that citizens and businesses in Illinois will be cheated out of the economic stimulus that would have been triggered by those investments.
These supply conditions are extraordinarily likely to lead to high prices. Cannabis Benchmarks shows that Illinois already has among the highest cannabis prices in the U.S. for similar reasons. High cannabis prices are significant for every citizen in Illinois for one simple reason:when prices for cannabis are too high in legal, regulated markets, consumers stick to the illegal markets.
California is facing a 50% shortfall in cannabis tax revenue because high taxes and high regulationhave priced too many consumers out of the market. By comparison, Oregon, which started its adult use cannabis program with an open licensing system, is beating tax revenue targets by a significant margin. In fact, cannabis is leading the way on a tax revenue boom that is so great, it triggered a constitutional provision that requires up to $1.4 billion to be returned to citizens.
Under this law, Illinois will be hit with an emboldened illegal market and an industry that’s too small and too expensive to support the State’s tax goals or social equity goals. The big winners would be those the State has awarded the dominance of more than95% market share in a high-demand, under-supplied market that cannot lawfully be disrupted by market forces.
This doesn’t have to happen. Illinois legislators can adopt a system, like Oregon’s, where anyone who meets certain sensible standards can be licensed for production on equal standing. Oregon’s system has more than 2,000 business owners from every walk of life, competing on a level playing field, and producing better tax revenues, better prices, better criminal justice results, and more diverse and broadly shared benefits.
Under the Cannabis Regulation and Tax Act, citizens of Illinois can expect that the social equity provisions will fail to have any significant impact on the communities harmed by prohibition and that the tiny group of firms licensed before this law was enacted will have an iron grip on the supply of cannabis in Illinois for the foreseeable future.
Image by Javier Hasse.
Jonathan Loiterman is the Chairman & CEO of Green Star Growing, Inc., a licensed cannabis cultivator and processor in Oregon. Mr. Loiterman is licensed as an attorney in Illinois and Oregon and has served as a past Chairman of the Illinois State Bar Association’s Health Section Council as well as a member of the Oregon Liquor Control Commission’s Cannabis Advisory Board.
The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
See more from Benzinga
• Leveraging Instagram To Build Cannabis Businesses
• Baking Consumer Basket Trends To Improve Cannabis Sales
• Why Marijuana Is About To Mint Millionaires
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Oh, By the Way, This Clinical Trial Didn't Work
ApparentlyRoche's(NASDAQOTH: RHHBY)phase 3 IMspire170 clinical trial failed.
But you wouldn't know it from looking at the press release page on Roche's website. There's no mention of the results of the study that tested its drugs, Cotellic and Tecentriq, in patients with previously untreated advancedmelanomathat has a normal BRAF gene. The late-stage clinical trial was hoping to show that the combination could reduce the risk of progression or death compared toMerck's(NYSE: MRK)Keytruda.
Instead, investors had to hear the bad news fromExelixis(NASDAQ: EXEL), which discovered Cotellic and licensed it to Roche's Genentech unit. The smaller biotech, which gets a share of the profits from the drug's sales in the U.S. and royalties elsewhere, didn't bother to issue a press release either, but at least it disclosed the news of the failure in a four-sentence filing with the Securities and Exchange Commission.
Image source: Getty Images.
Even though the IMspire170 study was arguably more important to Roche -- it has 1.5 drugs involved in the study versus Exelixis' 0.5 drugs, after all -- the important thing investors need to remember is that companies are required to disclose only events that have a material impact.
Roche's lawyers apparently concluded that the results weren't material to its overall business, which seems reasonable given the $15 billion in revenue Roche captured in the first quarter alone. And, for the record, it's not the case that Roche was planning on keeping the failure a secret forever; according to the aforementioned SEC document, Roche told Exelixis that it plans to present the data at an upcoming medical meeting.
Exelixis' revenue might break $1 billion for this year, so positive IMspire170 results could have had a more material effect on the top line, which would explain the disclosure.
Investors seem to be shrugging off the clinical-trial failure, though, with Exelixis' shares trading up for the day around noon. It seems like a reasonable response considering the biotech brought in only $2.5 million from Cotellic in the first quarter; at a little over 1% of total revenue, Cotellic is barely moving the needle for the company.
While Cotellic and Tecentriq couldn't beat Merck's Keytruda in melanoma patients with a normal BRAF gene, there's still hope to expand sales of Cotellic and Tecentriq in melanoma patients with BRAF mutations.
Cotellic is currently approved to treat BRAF-mutation-positive patients in combination with Roche's Zelboraf, but sales have been paltry -- thus the $2.5 million for Exelixis' share of the quarterly profits -- because the combination has to compete withNovartis'(NYSE: NVS)Tafinlar plus Mekinist andArray BioPharma's(NASDAQ: ARRY)Braftovi plus Mektovi, which are also approved to treat melanoma patients with BRAF mutations. Array's duo might become stiffer competition after it gets some marketing muscle fromPfizer(NYSE: PFE), which agreed topurchasethe company earlier this week.
Roche is trying to improve the efficacy of Cotellic plus Zelboraf by adding Tecentriq. The phase 3 trial, dubbed IMspire150 Trilogy, will compare the triple combo to Cotellic plus Zelboraf, so the barrier for showing superiority over the control is lower than it was for IMspire170. If Roche can demonstrate that adding Tecentriq lowers the risk of progression or death, the triplet could have a fighting chance against Novartis' and Array Biopharma's doublets.
Data from IMspire150 Trilogy is expected later this year, so it won't be too long before investors know the results.
That is, assuming one of the companies bothers to let investors know.
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Brian Orellihas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Exelixis. The Motley Fool has adisclosure policy. |
Why You Should Like Molina Healthcare, Inc.’s (NYSE:MOH) ROCE
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Today we'll evaluate Molina Healthcare, Inc. (NYSE:MOH) to determine whether it could have potential as an investment idea. In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business.
First up, we'll look at what ROCE is and how we calculate it. Then we'll compare its ROCE to similar companies. Finally, we'll look at how its current liabilities affect its ROCE.
ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business. In general, businesses with a higher ROCE are usually better quality. Overall, it is a valuable metric that has its flaws. Author Edwin Whitingsaysto be careful when comparing the ROCE of different businesses, since 'No two businesses are exactly alike.'
Analysts use this formula to calculate return on capital employed:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
Or for Molina Healthcare:
0.37 = US$1.2b ÷ (US$7.6b - US$4.3b) (Based on the trailing twelve months to March 2019.)
Therefore,Molina Healthcare has an ROCE of 37%.
View our latest analysis for Molina Healthcare
ROCE can be useful when making comparisons, such as between similar companies. Molina Healthcare's ROCE appears to be substantially greater than the 12% average in the Healthcare industry. I think that's good to see, since it implies the company is better than other companies at making the most of its capital. Regardless of the industry comparison, in absolute terms, Molina Healthcare's ROCE currently appears to be excellent.
Our data shows that Molina Healthcare currently has an ROCE of 37%, compared to its ROCE of 14% 3 years ago. This makes us think the business might be improving.
When considering ROCE, bear in mind that it reflects the past and does not necessarily predict the future. ROCE can be misleading for companies in cyclical industries, with returns looking impressive during the boom times, but very weak during the busts. This is because ROCE only looks at one year, instead of considering returns across a whole cycle. What happens in the future is pretty important for investors, so we have prepared afreereport on analyst forecasts for Molina Healthcare.
Current liabilities are short term bills and invoices that need to be paid in 12 months or less. The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. To check the impact of this, we calculate if a company has high current liabilities relative to its total assets.
Molina Healthcare has total assets of US$7.6b and current liabilities of US$4.3b. As a result, its current liabilities are equal to approximately 57% of its total assets. Molina Healthcare's high level of current liabilities boost the ROCE - but its ROCE is still impressive.
In my book, this business could be worthy of further research. There might be better investments than Molina Healthcare out there,but you will have to work hard to find them. These promising businesses withrapidly growing earningsmight be right up your alley.
If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Can Joe Biden Be Americas New Great Compromiser?
M aybe it is bad strategy for Joe Biden to recount the times he was a young senator and sat at the table with segregationists to get things done. At least, maybe it is a bad strategy in the Democratic primary. Liberal commentators have rushed out to remind Joe Biden that Democrats are fooling themselves if they believe compromise is on offer. Hosts of The View pointed out that Neil Gorsuch sits on the Supreme Court because Mitch McConnell and Republicans were unwilling to compromise and vote for Merrick Garland. And didnt Republicans bat down every chance to make compromises with Barack Obama because they made it their mission to deprive him of any accomplishments? The only option is to defeat Republicans, they say. Or possibly alter the constitutional system in order to defeat their current advantage in the Senate. Or pack the Supreme Court. Shouldnt we play by the rules that are operating? Or even escalate? That might be the more appealing strategy in the hothouse of party primaries. And ambitious candidates have floated radical ideas for reforming the constitutional system. But Biden may be onto something powerful. Bidens fundamental claim is that we are living in an aberrant part of American history. He is playing to what he believes is a common feeling; people feel that there is more anxiety, contention, and polarization surrounding politics now than before. Maybe it is the pervasive belief identified by Will Rahn: Americans of every political persuasion feel like theyre losin g . Biden basically attributes the gridlock to Trump and tries to satisfy Democratic partisanship by making Trump the concentrated symbol of contentious politics. But in fact this sense of polarization and anxiety goes back at least to the 2000 election results, in which our language of red and blue America was inaugurated, if not to the impeachment of Clinton or to the 1994 congressional election. Each party has a narrative around these events in which the other was the aggressor. Bidens pitch is that he remembers how to compromise. And its not surprising that he reached for a pre-1994 example to demonstrate it. Story continues Lets stipulate that Bidens own history isnt always one of civility and mollifying his opponents. Today, Biden brags about the times he came to the table to compromise with actual segregationists. In 2012, though, he warned black voters that a President Mitt Romney would put yall back in chains. And yet, there is something powerfully appealing in the promise to usher out an old generation of American politics. One of the reasons Donald Trump won the presidency is that he promised to break up a generation-long consensus and stalemate on issues including trade, immigration, and foreign policy. Underneath all the partisan rancor, Washington had settled on a kind of passive bipartisan consensus on these issues. Trump changed the electoral map by promising to return them to democratic debate, input, and contest. Bidens generational case can be that Trump represents the final crest of an ongoing logic of escalation and enmity in Americas democracy. One of the historic boasts of American democracy is supposed to be that our form of politics not just sets the rules on which we contest great issues, and reconciles us to the results, but that the process of democratic contest and compromise ultimately reconciles us to shared membership in the nation. There is to Americas culture war an escalating logic that is beginning to frighten its participants. The fear is driving some liberals to dream about abolishing the Senate, and some conservatives to dream of a post-liberal future. Historically it was the desire to avoid (or postpone) ultimate conflict that drove the career of Henry Clay, the Great Compromiser who helped arrange the Missouri Compromise, the Tarriff Compromise of 1833, and the Compromise of 1850. Bidens new championing of the genius for compromise may be appealing to moderate voters precisely because there is a desire for de-escalation and for a new durable, livable settlement in America. How can Democrats or Republicans possibly hope to escalate from Trumps form of combat? Isnt it time for a new paradigm? The promise of great compromises might be a good general-election pitch in 2020, but there is a serious problem for would-be compromisers. Sometimes history doesnt permit the durable settlement you desire. Clays legacy was left in tatters, and his compromises were exposed as delays even immoral evasions just eight years after he died. If the enmity is sufficient and the disagreement deep enough, no politician can postpone conflict forever. More from National Review Sanders Is Deflating Joe Biden Was Never Pro-Life Joe Biden: Centrist? |
UPDATE 1-U.S. Democratic candidate Warren calls for ban on private prisons
(Adds statement from GEO Group)
By Jarrett Renshaw
NEW YORK, June 21 (Reuters) - U.S. Democratic presidential candidate Elizabeth Warren on Friday called for the elimination of privately run prisons and detention centers at the federal and state level, arguing they too often place profits above safety.
The U.S. senator from Massachusetts also pledged to ban private contractors from charging inmates for routine services such as phone calls, bank transfers and healthcare, and to crack down on the practice of marking up prices for commissary items.
"There should be no place in America for profiting off putting more people behind bars or in detention," Warren said in a statement.
Warren, a leader of the party's progressive wing, has made her policy rollouts on topics including student debt relief and higher taxes on the wealthy a cornerstone of her campaign. She is one of 24 Democratic candidates seeking the nomination to challenge Republican President Donald Trump in 2020.
The multibillion-dollar private prison industry has been the government's answer to overcrowding and swelling budgets, but critics say the operators sacrifice safety for profits and benefit from a criminal justice system that treats minorities unfairly.
The United States has the world's largest private prison population. Private prisons incarcerate about 9% of all U.S. prisoners, and 19% of all federal prisoners, according to U.S. Bureau of Justice statistics.
Boca Raton, Florida-based GEO Group Inc is the nation's largest for-profit corrections company, followed by Nashville-based CoreCivic Inc.
In a statement, a GEO spokesman accused Warren of engaging in "politically motivated attacks based on false narratives."
"Our facilities are highly rated by independent accreditation entities," said the spokesman, Pablo Paez, , adding that the company would welcome a visit to its facilities by Warren to speak with inmates directly.
Warren noted the private prison population grew five times as quickly as the overall prison population from 2000 to 2016. About 75% of all immigrants detained by U.S. Immigration and Customs Enforcement are also in private prisons, federal data shows.
She promised to cut all contracts with private operators at the federal level and force state and local governments to do the same or else lose federal funding. It was unclear whether Warren's plan would cost U.S. taxpayers more money.
Private detention center operators have profited from Trump's aggressive anti-immigration policies, which have led to large-scale detentions and separations of families, Warren said.
She noted that one private detention center, Caliburn International, recently hired Trump's former chief of staff, John Kelly, a retired U.S. Marine general. The company has faced scrutiny for its treatment of immigrants at its Homestead, Florida, facility.
Tetiana Anderson, a Caliburn spokeswoman, said the Homestead location is an emergency care shelter that provides the best possible care.
"The shelter provides educational classrooms, dormitories, dining halls, recreational fields and medical facilities, any suggestion that conditions at the Homestead emergency care shelter are 'unsanitary' and 'prison-like' is simply inaccurate," Anderson said.
In addition to private operators, nearly 4,000 corporations make money off mass incarceration, Warren says.
"Incarcerating and detaining millions for profit doesn't keep us safe. It's time to do better," she said.
(Reporting by Jarrett Renshaw; editing by Jonathan Oatis and Lisa Shumaker) |
Is Molina Healthcare, Inc.'s (NYSE:MOH) Balance Sheet Strong Enough To Weather A Storm?
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Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Molina Healthcare, Inc. (NYSE:MOH), with a market cap of US$9.2b, often get neglected by retail investors. Surprisingly though, when accounted for risk, mid-caps have delivered better returns compared to the two other categories of stocks. This article will examine MOH’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 Molina Healthcare’s financial health, so you should conduct further analysisinto MOH here.
View our latest analysis for Molina Healthcare
MOH has shrunk its total debt levels in the last twelve months, from US$2.1b to US$1.7b , which includes long-term debt. With this reduction in debt, the current cash and short-term investment levels stands at US$4.7b , ready to be used for running the business. Its negative operating cash flow means calculating cash-to-debt wouldn't be useful. For this article’s sake, I won’t be looking at this today, but you can take a look at some of MOH’soperating efficiency ratios such as ROA here.
At the current liabilities level of US$4.3b, the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.57x. The current ratio is the number you get when you divide current assets by current liabilities. Generally, for Healthcare companies, this is a reasonable ratio as there's enough of a cash buffer without holding too much capital in low return investments.
MOH is a relatively highly levered company with a debt-to-equity of 85%. 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 MOH’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 MOH, the ratio of 11.7x suggests that interest is comfortably covered, which means that lenders may be less hesitant to lend out more funding as MOH’s high interest coverage is seen as responsible and safe practice.
Although MOH’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 MOH's liquidity needs, this may be its optimal capital structure for the time being. I admit this is a fairly basic analysis for MOH's financial health. Other important fundamentals need to be considered alongside. You should continue to research Molina Healthcare to get a better picture of the mid-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for MOH’s future growth? Take a look at ourfree research report of analyst consensusfor MOH’s outlook.
2. Valuation: What is MOH 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 MOH 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. |
Don't Sell Mercury Systems, Inc. (NASDAQ:MRCY) Before You Read This
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Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. To keep it practical, we'll show how Mercury Systems, Inc.'s (NASDAQ:MRCY) P/E ratio could help you assess the value on offer. Looking at earnings over the last twelve months,Mercury Systems has a P/E ratio of 74.43. In other words, at today's prices, investors are paying $74.43 for every $1 in prior year profit.
See our latest analysis for Mercury Systems
Theformula for P/Eis:
Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Or for Mercury Systems:
P/E of 74.43 = $69.68 ÷ $0.94 (Based on the year to March 2019.)
A higher P/E ratio means that buyers have to paya higher pricefor each $1 the company has earned over the last year. All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.'
Earnings growth rates have a big influence on P/E ratios. When earnings grow, the 'E' increases, over time. That means even if the current P/E is high, it will reduce over time if the share price stays flat. A lower P/E should indicate the stock is cheap relative to others -- and that may attract buyers.
Most would be impressed by Mercury Systems earnings growth of 10% in the last year. And its annual EPS growth rate over 3 years is 19%. This could arguably justify a relatively high P/E ratio.
We can get an indication of market expectations by looking at the P/E ratio. The image below shows that Mercury Systems has a significantly higher P/E than the average (23) P/E for companies in the aerospace & defense industry.
That means that the market expects Mercury Systems will outperform other companies in its industry. Shareholders are clearly optimistic, but the future is always uncertain. So further research is always essential. I often monitordirector buying and selling.
Don't forget that the P/E ratio considers market capitalization. So it won't reflect the advantage of cash, or disadvantage of debt. Theoretically, a business can improve its earnings (and produce a lower P/E in the future) by investing in growth. That means taking on debt (or spending its cash).
Such expenditure might be good or bad, in the long term, but the point here is that the balance sheet is not reflected by this ratio.
Mercury Systems's net debt is 4.3% of its market cap. The market might award it a higher P/E ratio if it had net cash, but its unlikely this low level of net borrowing is having a big impact on the P/E multiple.
With a P/E ratio of 74.4, Mercury Systems is expected to grow earnings very strongly in the years to come. While the company does use modest debt, its recent earnings growth is very good. So on this analysis it seems reasonable that its P/E ratio is above average.
Investors have an opportunity when market expectations about a stock are wrong. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' So thisfreevisualization of the analyst consensus on future earningscould help you make theright decisionabout whether to buy, sell, or hold.
Of course,you might find a fantastic investment by looking at a few good candidates.So take a peek at thisfreelist of companies with modest (or no) debt, trading on a P/E below 20.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
5 Top Stock Trades for Monday: AAPL, XOM, NVTA
A day after the Fed’s statement on Wednesday, the stock market ripped higher Thursday. On Friday, it cautiously hovered around flat as investors contemplate the Fed, the trade war and potential geopolitical issues with Iran. That said, there are some solid moves in individual names, leading the way for our top stock trades.
Click to Enlarge
I really like the wayApple(NASDAQ:AAPL) is coiling just below $200. The FANG + Apple group came into Friday’s session13% or more below their all-time highs, with the exception ofAmazon(NASDAQ:AMZN), which was about 6% below its highs.
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It will be hard for theNasdaqto hit new highs with this lagging action under way. If the trade-war rhetoric starts to improve though, AAPL could be a big winner.
Over $200 puts $210+ on the table. If $200 is resistance though, look for trend and moving average support between $192.50 and $194. Otherwise, AAPL may need more time to setup.
Click to Enlarge
Above is a long-term weekly chart ofExxon Mobil(NYSE:XOM). While not displayed, the stock barely reclaimed and closed above both its 50-day and 200-day moving average on Thursday. On Friday, it added to those gains, as it’s now over the 50-week moving average as well (that’s actually shown above).
So now what?
I want to see if XOM can put together a rally up toward $80, currently downtrend resistance (blue line). Above that mark calls for a test of range resistance near $83. Should shares falter from current levels, a decline to its 200-week moving average near $75 is in play. Below that and uptrend support around $73 is on the table, with range support at $70 just below that.
Keep it simple and visual.
Click to Enlarge
Invitae(NASDAQ:NVTA) really burst onto the scene this year, running from about $10 in January to $26.77 in April. Wow, what a run! But the whole long setup fell apart when a head-and-shoulder formation sent shares reeling once neckline support near $22.50 gave way.
Since then, $17 support held up fine as shares have been making their way higher once again. Friday’s action looked disappointing, but long-term bulls have to be happy with it holding its 20-day and 50-day moving averages.
NVTA is a speculative holding,but looks set for big long-term gains in my view.
I would love to see it push through this $22 to $22.50 area, which marks prior neckline support as well as downtrend resistance (blue line). If it does, look for a gap fill up toward $24. If it can’t push through $22.50, see if its moving averages can buoy the name again.
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Another high-octane growth name has beenThe Trade Desk(NASDAQ:TTD).
Earlier this month, we called TTDa better sell than buy up near $260 channel resistance. While it wasn’t overbought, going from $200 to $260 in just five trading sessions was too far, too fast.
Momentum is starting to roll over (blue circle) and TTD is coming under pressure. I don’t know if the 20-day saves it or if it will fall to the 50-day. Will it return to $200? I really don’t know — no one does.
However, bulls who wisely took profits can start to rebuild a position near any of these key levels. It just depends on how comfortable they feel with the potential risk. $231 marked the recent low this month, so perhaps the 20-day isn’t a bad spot to nibble. I would love another shot at TTD closer to $200 though.
Click to Enlarge
This is another one werecently warned investors about.Nio(NASDAQ:NIO) stock rallied up to prior downtrend support and the 20-day moving average.
On Friday, these marks ruthlessly swatted Nio lower, as shares collapsed more than 8%. Now the $2.50 level is back on the table. Below and Nio stock will look quite ugly. Simply put, this is not one I want to be long.
• The 7 Best Dow Jones Stocks to Buy for the Rest of 2019
If $2.50 holds, we need to see a move over the 20-day and downtrend resistance before it’s even close to being a buy.
Bret Kenwell is the manager and author ofFuture Blue Chipsand is on Twitter@BretKenwell. As of this writing, Bret Kenwell is long AAPl and AMZN.
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With EPS Growth And More, Medical Properties Trust (NYSE:MPW) Is Interesting
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. Unfortunately, high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like Medical Properties Trust ( NYSE:MPW ). Even if the shares are fully valued today, most capitalists would recognize its profits as the demonstration of steady value generation. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed. See our latest analysis for Medical Properties Trust How Fast Is Medical Properties Trust Growing? If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow. It's no surprise, then, that I like to invest in companies with EPS growth. Who among us would not applaud Medical Properties Trust's stratospheric annual EPS growth of 56%, compound, over the last three years? Growth that fast may well be fleeting, but like a lotus blooming from a murky pond, it sparks joy for the wary stock pickers. Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. Not all of Medical Properties Trust's revenue this year is revenue from operations , so keep in mind the revenue and margin numbers I've used might not be the best representation of the underlying business. Medical Properties Trust reported flat revenue and EBIT margins over the last year. That's not a major concern but nor does it point to the long term growth we like to see. Story continues In the chart below, you can see how the company has grown earnings, and revenue, over time. For finer detail, click on the image. NYSE:MPW Income Statement, June 21st 2019 Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want to check this interactive graph of professional analyst EPS forecasts for Medical Properties Trust . Are Medical Properties Trust Insiders Aligned With All Shareholders? We would not expect to see insiders owning a large percentage of a US$7.2b company like Medical Properties Trust. But we do take comfort from the fact that they are investors in the company. With a whopping US$90m worth of shares as a group, insiders have plenty riding on the company's success. That's certainly enough to make me think that management will be very focussed on long term growth. Is Medical Properties Trust Worth Keeping An Eye On? Medical Properties Trust's earnings per share have taken off like a rocket aimed right at the moon. That sort of growth is nothing short of eye-catching, and the large investment held by insiders certainly brightens my view of the company. The hope is, of course, that the strong growth marks a fundamental improvement in the business economics. So to my mind Medical Properties Trust is worth putting on your watchlist; after all, shareholders do well when the market underestimates fast growing companies. Of course, just because Medical Properties Trust is growing does not mean it is undervalued. If you're wondering about the valuation, check out this gauge of its price-to-earnings ratio , as compared to its industry. Of course, you can do well (sometimes) buying stocks that are not growing earnings and do not have insiders buying shares. But as a growth investor I always like to check out companies that do have those features. You can access a free list of them here . Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
ICE Plans to Target 2,000 Undocumented Immigrants in New Deportation Operation
U.S. Immigration and Customs Enforcement will begin an operation Sunday targeting over 2,000 undocumented immigrants who have received deportation orders, according to reports . The operation will last several days and target families in up to ten U.S. cities, including those with large immigrant populations such as Los Angeles, Houston, Chicago, and Miami. Agents plan to use hotel rooms to hold undocumented individuals until all the members of their family are together, at which time they will be deported. Acting ICE head Mark Morgan stressed that the U.S. must send a message to potential immigrants that bringing a child into the country does not grant you immunity. Do not risk it. Do not pay the cartels an exorbitant amount of money, because once you receive due process and get a final order, you will be removed, Morgan said. The message has gotten out that if you bring a kid, nothing will ever happen to you. We need to make sure were sending the message that will not be tolerated any more. Acting Secretary of Homeland Security Kevin McAleenan has also suggested an effort to more specifically target about 150 families who were given attorneys but fled the legal process. Despite McAleenans recommendation that immigration resources be directed toward the crisis at the southern border, President Trump has made the interior raid a priority and announced the upcoming operation earlier this week. Next week ICE will begin the process of removing the millions of illegal aliens who have illicitly found their way into the United States, Trump wrote on Monday. They will be removed as fast as they come in. I dont want to send ICE agents to their workplace, Morgan said of the plans for mass arrests. I dont want to send ICE agents to their home. I dont want to send ICE agents to try and track them down and apprehend them in their communities and town. But weve applied due process. Weve tried to work with them. More from National Review Philadelphia Will Block ICE from Accessing Arrest Database U.S. Citizen Receives $55,000 Settlement after ICE Detention Mass. Judge Charged with Obstruction for Allegedly Helping Man Evade ICE |
California governor proposes $21 billion wildfire fund - media
By Alex Dobuzinskis
LOS ANGELES, June 21 (Reuters) - California Governor Gavin Newsom has proposed a fund of up to $21 billion to help utilities pay for future wildfire damage, according to media reports on Friday.
The proposal by the state's Democratic governor follows the bankruptcy filing of San Francisco-based utility PG&E Corp, which anticipates $30 billion in liabilities from wildfires in 2017 and 2018 that have been blamed on its equipment.
Newsom has proposed two models for the fund, according to media reports.
One model would place the reserve at $10.5 billion, to be funded by a surcharge on electricity bills, and the second model would raise the value to $21 billion fund by including a multi-billion dollar insurance policy paid for by utilities, the Wall Street Journal reported.
PG&E and California's two other major utilities, Southern California Edison and San Diego Gas & Electric would have to spend a combined $3 billion on wildfire safety measures to qualify for the insurance component of such a fund, the Sacramento Bee newspaper reported.
Southern California Edison and San Diego Gas & Electric would decide if they prefer a $10.5 billion fund or the $21 billion fund and PG&E would be forced to join whatever option they chose, the Wall Street Journal reported, citing details from the governor's aides.
A representative for Newsom could not immediately be reached for comment.
The proposed fund would need to be created by lawmakers in the state legislature.
Separately, Bloomberg reported that PG&E Corp has been proposing a $14 billion fund to deal with past claims from wildfires. (Reporting by Alex Dobuzinskis Editing by Susan Thomas) |
What To Know Before Buying Caterpillar Inc. (NYSE:CAT) For Its Dividend
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Could Caterpillar Inc. (NYSE:CAT) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter.
With Caterpillar yielding 3.1% and having paid a dividend for over 10 years, many investors likely find the company quite interesting. It would not be a surprise to discover that many investors buy it for the dividends. The company also bought back stock equivalent to around 5.1% of market capitalisation this year. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below.
Click the interactive chart for our full dividend analysis
Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Caterpillar paid out 32% of its profit as dividends, over the trailing twelve month period. This is medium payout level that leaves enough capital in the business to fund opportunities that might arise, while also rewarding shareholders. Plus, there is room to increase the payout ratio over time.
In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Caterpillar paid out a conservative 49% of its free cash flow as dividends last year. 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 Caterpillar has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. Caterpillar has net debt of 2.65 times its earnings before interest, tax, depreciation, and amortisation (EBITDA). Using debt can accelerate business growth, but also increases the risks.
Net interest cover can be calculated by dividing earnings before interest and tax (EBIT) by the company's net interest expense. Caterpillar has interest cover of more than 12 times its interest expense, which we think is quite strong.
Remember, you can always get a snapshot of Caterpillar's latest financial position,by checking our visualisation of its financial health.
From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. For the purpose of this article, we only scrutinise the last decade of Caterpillar's dividend payments. During this period the dividend has been stable, which could imply the business could have relatively consistent earnings power. During the past ten-year period, the first annual payment was US$1.68 in 2009, compared to US$4.12 last year. Dividends per share have grown at approximately 9.4% per year over this time.
Dividends have grown at a reasonable rate over this period, and without any major cuts in the payment over time, we think this is an attractive combination.
Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. It's good to see Caterpillar has been growing its earnings per share at 13% a year over the past 5 years. Earnings per share have been growing at a good rate, and the company is paying less than half its earnings as dividends. We generally think this is an attractive combination, as it permits further reinvestment in the business.
To summarise, shareholders should always check that Caterpillar's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. It's great to see that Caterpillar is paying out a low percentage of its earnings and cash flow. That said, we were glad to see it growing earnings and paying a fairly consistent dividend. Overall, we think there are a lot of positives to Caterpillar from a dividend perspective.
Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 20 analysts we track are forecasting for Caterpillarfor freewith publicanalyst estimates for the company.
If you are a dividend investor, you might also want to look at ourcurated list of dividend stocks yielding above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
CoinTelegraph faces copyright infringement suit after a photo allegedly went uncredited
Disclaimer: These summaries are provided for educational purposes only byNelson RosarioandStephen Palley. They are not legal advice. These are our opinions only, aren’t authorized by any past, present or future client or employer. Also we might change our minds. We contain multitudes.
As always, Rosario summaries are “NMR” and Palley summaries are “SDP".
[related id=1]Rice v. CoinTelegraph Media USA, Inc., Case №1:19-cv-5648 (S.D.N.Y. filed June 17, 2019)[NMR]
This week we have one of the first copyright infringement lawsuits related to crypto. The underlying subject matter concerns two of the bigger names in the industry. That said, as we’ve seen with many other cases around here, this case is a pretty standard copyright infringement lawsuit. Remember, just because you have new tech doesn’t mean you need new law. So, what’s going on here with Rice and CoinTelegraph?
John Curtis Rice is a Bronx based photographer who makes his money by licensing his photography to businesses and other interested parties. Way back in 2013 Mr. Rice licensed a photograph he took of Shrem to the New York Post for a delightfully titled storyCoin of the Net realm. The Post credits Rice as the photographer on the article.The articleis worth a quick read as it is a total blast from the past that includes that absolutely fantastic phrase “digital doubloons.” Digital doubloons. So good. In May of this year Rice registered his copyright in the photograph with the U.S. Copyright office., and now Rice is suing CoinTelegraph for willful copyright infringement.
For those of you that don’t know, which if you’re reading something called Crypto Caselaw Minute the odds of this applying to you seem to be about zilch, CoinTelegraph is one of the main blockchain/cryptocurrency focused media sites. CoinTelegraph ran an Op-ed on its website with a list of convicted criminals in the bitcoin space that included Shrem. Allegedly, as part of that list under Shrem’s entry was the photo from the New York Post without credit to Rice. The Op-ed ran in 2015. There is a three-year statute of limitations on bringing a copyright infringement lawsuit. It’s 2019. Wait, what?
So, there are a couple of things going on here. One, in March of this year the U.S. Supreme Court ruled that an individual bringing a copyright infringement claim must have registered the copyright with the U.S. Copyright Officebeforethey bring their claim. That explains the registration in May. Second, although there is three-year statute of limitation on bringing a claim, and the Op-ed originally published in 2015, the Op-ed is still on the website, although now there appears to be no image of Shrem in the Op-ed. Lastly, the plaintiff is alleging willful infringement in order to try and receive increased damages. Basically, they’ll have to show that the defendant acted recklessly in copying the picture. I’m very curious to see the defendant’s response in this suit.
The Block is pleased to bring you expert cryptocurrency legal analysis courtesy of Stephen Palley (@stephendpalley) and Nelson M. Rosario (@nelsonmrosario). They summarize three cryptocurrency-related cases on a weekly basis and have given The Block permission to republish their commentary and analysis in full. Part I of this week's analysis, Crypto Caselaw Minute, is above. |
Toys ‘R’ Us Is Coming Back From the Dead and Opening Stores in 2019
Maybe American kids will only have tolive through one Christmaswithout Toys “R” Us.
About a year aftershuttering U.S. operations, the remnant of the defunct toy chain is set to return this holiday season by opening about a half dozen U.S. stores and an e-commerce site, according to people familiar with the matter.
Richard Barry, a former Toys “R” Us executive who is now CEO of new entity Tru Kids Inc., has been pitching his vision to reincarnate the chain to toymakers, including at an industry conference this week, said the people, who asked not to be identified because the plans aren’t public.
The stores are slated to be about 10,000-square feet, roughly a third of the size of the brand’s big-box outlets that closed last year, the people said. The locations will also have more experiences, like play areas. The startup costs could be minimized with a consignment inventory model in which toymakers ship goods but don’t get paid until consumers buy them, some of the people said.
A spokeswoman for Tru Kids said the company wasn’t ready to publicly share details on its U.S. strategy.
It remains to be seen how much of a boost the retailer’s comeback will provide the toy industry, including giants such as Hasbro Inc. andMattelInc. The original Toys “R” Us, the only national toy chain,left a huge holewhen it went under. It had been generating about $7 billion in sales a year in the U.S. through more than 700 locations, including the Babies “R” Us brand.
WalmartInc.,TargetCorp. andAmazon.comInc. haveswooped in to fill the void. They have all expanded toy assortments and marketing, including aprinted toy catalog from Amazon. Other non-traditional chains jumped into the category, including grocery stores and Party City Holdco Inc.
There is also a question of how many toymakers will do business with the new Toys “R” Us after many lost money when the former company announced liquidation in March 2018, just months after filing for bankruptcy.
MGA Entertainment Inc., one of the best-performing toymakers in the world, is already on board to sell at the re-imagined Toys “R” Us shops, saidChief Executive Officer Isaac Larian, who said he has been pitched the plan. His company’s properties include Little Tikes, L.O.L. Surprise! and Bratz dolls.
“This market needs a self-standing toy store, that’s for sure,” Larian said in an interview. “We will sell them inventory.”
During the chain’s bankruptcy, lenders led by Solus Alternative Asset Management and Angelo Gordon took control of the company’s assets. After results didn’t improve, they opted to shutter operations in the U.S. Units in Australia and other regions also closed, with divisions in Asia and Canada acquired by new owners.
This group tried to sell the intellectual property, but opted to keep it to garner a better return. As owners of the intellectual property, they have been collecting licensing and other fees from the units still operating and selling them private-label goods. The lenders then formed Tru Kids with the goal of reviving the brand in the U.S. and other regions it exited. It has since hired several industry veterans and signed a deal to bring Toys “R” Us and Babies “R” Us back to Australia through a partner.
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FollowFortuneon Flipboardto stay up-to-date on the latest news and analysis. |
California Wildfires Could Be Even Worse This Year
Wildfires have been burning for weeks in the western U.S., well before summer officially started just before noon Eastern time today. As bad as last year's wildfire season was, 2019's could be even worse according to some federal and state officials.
Despite a wet winter and spring this year, which wiped out 2018's extreme drought across California, many parts of the state have been drying out quickly in recent weeks. This, combined with record triple-digit heat in mid-June, has created fire weather conditions all over again.
"It's hard to imagine a repeat of this experience, but this is the potential reality that we face again this year," said Jeff Rupert, director of the Office of Wildland Fire for the Interior Department, during his opening remarks at aSenate hearingon June 20.
The catastrophic 2018 wildfire season ravaged California, killing dozens of people, causing billions of dollars of damage and leaving towns unrecognizable. One of the worst fires was the Camp Fire, the state's costliest and deadliest on record. Eighty-five people died in the Camp Fire, and it burned most of the town of Paradise to the ground. The other was the Mendocino Complex Fire, which was California's largest on record, destroying more than 700 square miles of land.
Sand Fire in Yolo County, California on June 9, 2019.
"So it's difficult for me to sit here this morning and say that a challenging year is ahead of us because the wildfires that we're now experiencing are consistently more destructive than they've ever been," Rupert added.
TheNational Interagency Fire Center(NIFC) is forecasting a significant, large fire potential along the West Coast during the heart of the fire season in August and September.
Rupert, as well as Shawna Legarza, the director of fire aviation and management for the U.S. Forest Service, spoke before the committee about how the federal government and Congress plan to manage potential threats from the upcoming wildfire season.
"We know that our predictive services is showing that it's going to start to increase, that we could have a very significant fire year again," Legarza said during her opening statement. "This year in California and the Pacific Northwest, all those grasses are going to be drying out from the heavy rains and snowpack, and with that will come large fires. So we must continue to be prepared."
U.S. Senator Lisa Murkowski of Alaska also spoke, noting the recent wildfires across the country, including in her state as well as Arizona. She believes the increase in wildfires over the past few years can be blamed on climate change, unhealthy landscapes that are overstocked with "excess fuels," and disease and insect outbreaks which leave trees that are "ready to ignite just like a matchstick."
During her opening remarks, Murkowski said, "Some observers believe the stage is set for fire activity similar to the indescribable damage and staggering loss of life that we saw last year in northern California." In addition to the loss of life and property, fires can degrade air quality, making it difficult for people to breathe, especially those with heart or lung conditions.
SONAR Critical Events: Ongoing wildfire risk areas shaded in yellow, as of June 21, 2019.
Some scientists believe that devastating fire seasons could be the rule rather than the exception in the decades to come if climate change leads to increased temperatures and reduced rainfall – ideal conditions for large, destructive wildfires. Over the next 25 years, the National Climate Assessment predicts the area burned by wildfires could double nationwide as a result. By the end of the century, models project the burned area in North America could increase two to 5.5 times.
The Sand Fire in Yolo County, California started on June 8 and lasted a week, burning around 2,500 acres of land. The Woodbury Fire also began on June 8, just east of Phoenix, Arizona, and continues to burn. As of this morning, June 21, it covers nearly 65,000 acres and is 42 percent contained, according to InciWeb. Other smallerwildfires are still burningacross the western U.S.
Because of ongoing hot and very dry conditions, in addition to strong winds, wildfires may spread quickly and new ones could easily be sparked. The National Weather Service (NWS) has issuedRed Flag Warningsacross the region, including the Sacramento, Phoenix, Albuquerque and Santa Fe metro areas. Other areas may be added in the coming days and weeks.
Image Sourced From Pixabay
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© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Caterpillar Inc. (NYSE:CAT): A Fundamentally Attractive Investment
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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Caterpillar Inc. (NYSE:CAT) due to its excellent fundamentals in more than one area. CAT is a notable dividend-paying company with a an impressive track record of delivering benchmark-beating performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at thereport on Caterpillar here.
In the past couple of years, CAT has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. Not only did CAT outperformed its past performance, its growth also exceeded the Machinery industry expansion, which generated a 28% earnings growth. This is an notable feat for the company.
CAT is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For Caterpillar, there are three key factors you should look at:
1. Future Outlook: What are well-informed industry analysts predicting for CAT’s future growth? Take a look at ourfree research report of analyst consensusfor CAT’s outlook.
2. Financial Health: Are CAT’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of CAT? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Yulin Dog Meat Festival: Dogs blow-torched alive in footage from China
Video footage shows a dog apparently being blow torched alive ahead of an annual dog meat festival in China . As many as 15,000 dogs are tortured, killed and cooked to be sold at Yulin Lychee and Dog Meat Festival every year. Canine meat is considered a delicacy in China, where about £10m worth of dogs and £4m cats are sold for their meat annually. But 1.5 million people have now signed a petition calling for an end to the cruel festival. Claire Bass, UK director of Humane Society International (HSI), said: “Yulin is one relatively small example of a much larger, uglier issue that thousands of dedicated Chinese activists are working to stop. “Contrary to the assumptions by many in the West, most people in China don’t eat dogs and in fact they are horrified at the thought of a trade that takes their canine companions away from them.” Sending her support for the petition, actress Dame Judi Dench said: “It fills me with sadness to think that the Yulin dog meat festival is just around the corner again. “So I wanted to send this message as a symbol of my solidarity with all the thousands of people in China against the dog meat trade, who love their dogs and cats just as much as we do, but who go through the awful heart ache of having them stolen by dog thieves.” Most dogs and cats caught up in China’s meat trade are believed to be strays snatched from the streets and stolen pets, according to HSI. Dogs and cats are typically bludgeoned to death in front of each other, put into a de-hairing machine to remove fur, and then blow-torched for sale to markets, the organisation said. The animals are also still sometimes slaughtered in public places. Thousands descend on the festival on 21 June each summer to celebrate the summer solstice – the longest day of the year. According to folklore, eating the meat during the summer months brings luck and good health. Some also believe dog meat can ward off diseases and heighten men’s sexual performance. Story continues Cat meat, fresh lychees and liquor are also available at the 10-day event. Just five days before this year’s festival, Chinese animal activists managed to rescue 62 dogs from a Yulin slaughterhouse. Many of them are now being cared for by HSI at a shelter in northern China. |
Out of the Office: Monkeying Around With AZA's CEO Dan Ashe
Lions and tigers and bears…
The Association of Zoos and Aquariums has 233 aquariums, zoos, and science centers, each one working to protect thousands of animals by advancing their welfare, as well as conservation of wildlife, and public engagement. As AZA’s president and CEO, Dan Ashe is in charge of promoting that mission.
Ashe has been at the helm of the AZA since 2017 and previously was the director of the U.S. Fish and Wildlife Service under the Obama administration.
Fortune’s Beth Kowitt stepped out of the office and into the Bronx Zoo with Ashe to talk about the AZA’s mission, scary animal encounters, and former president Barack Obama’s spirit animal. Let’s just say they had more fun than a barrel of monkeys. |
Is Now An Opportune Moment To Examine Martinrea International Inc. (TSE:MRE)?
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Martinrea International Inc. (TSE:MRE), which is in the auto components business, and is based in Canada, saw a double-digit share price rise of over 10% in the past couple of months on the TSX. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s examine Martinrea International’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
See our latest analysis for Martinrea International
Great news for investors – Martinrea International is still trading at a fairly cheap price. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 4.9x is currently well-below the industry average of 14.24x, meaning that it is trading at a cheaper price relative to its peers. Although, there may be another chance to buy again in the future. This is because Martinrea International’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 27% over the next couple of years, the future seems bright for Martinrea International. 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 MRE 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 MRE 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 MRE. 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 Martinrea International. You can find everything you need to know about Martinrea International inthe latest infographic research report. If you are no longer interested in Martinrea International, 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. |
A Magnificent MLP ETF
Exchange traded funds with exposure to master limited partnerships are outperforming traditional energy funds in a significant fashion in 2019, and with the Federal Reserve poised to potentially lower interest rates, high-yield assets such as MLPs could receive renewed attention from income investors.
What Happened
MLPs with midstream exposure are thriving this year as the U.S. tops the ranks of the world's oil-producing giants — a theme that is benefiting ETFs such as theGlobal X MLP & Energy Infrastructure ETF(NYSE:MLPX).
“In conjunction with its domestic focus, the midstream segment’s significant dollar-based currency exposure has helped further insulate it from geopolitics,” Global X saidin a recent note.
“While the trade wars, shifting monetary policies, and volatile commodity prices have dented international currency values, the dollar has held up well. As a result, companies with significant foreign revenue have suffered from depreciating currency values — a headwind that has not afflicted the midstream space.”
Why It's Important
The $808.13-million MLPX tracks the Solactive MLP & Energy Infrastructure Index and focuses on midstream entities, including pipeline operators and storage facility providers.
With a generous dividend yield of 5.21%, MLPX is up 17.75% year-to-date.
The Fed's relaxed stance toward interest rates is also seen as a potential catalyst for more MLP upside this year.
“The Fed’s December pivot to a more dovish stance has offered additional support for the midstream space, with higher yielding investments benefiting from falling bond yields,” according to Global X.
“Since the end of 2018, the U.S. 10-year Treasury rate fell by 65 basis points (bps), dropping from slightly over 270 bps to just above 200 bps now. The market is now pricing in three rate cuts by the end of 2019, and four total by the end of 2020, expressing that it believes rates will be aggressively heading downward in the near term.”
What's Next
Midstream MLPs have been solid performers this year, but investors who think they are late to the party may want to think again and get involved.
“While midstream performance has started off strong this year, we believe that a confluence of tailwinds could further power returns,” said Global X.
“With strong domestic exposure during heightened geopolitical risk, attractive yields in a falling rate environment, and growing interest from private equity sources, we believe MLPs and midstream companies are facing an attractive macro backdrop.”
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Why Martinrea International Inc. (TSE:MRE) Could Be Worth Watching
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Martinrea International Inc. (TSE:MRE), which is in the auto components business, and is based in Canada, saw a decent share price growth in the teens level on the TSX over the last few months. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s examine Martinrea International’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
See our latest analysis for Martinrea International
Good news, investors! Martinrea International is still a bargain right now. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 4.9x is currently well-below the industry average of 14.24x, meaning that it is trading at a cheaper price relative to its peers. Although, there may be another chance to buy again in the future. This is because Martinrea International’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
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. Martinrea International’s earnings over the next few years are expected to increase by 27%, 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 MRE 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 financial health to consider, which could explain the current undervaluation.
Are you a potential investor?If you’ve been keeping an eye on MRE 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 MRE. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Martinrea International. You can find everything you need to know about Martinrea International inthe latest infographic research report. If you are no longer interested in Martinrea International, 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. |
Police called to Boris Johnson's home after neighbour 'hears loud screams' in domestic disturbance
Former Foreign Secretary Boris Johnson arrives for the Conservative Councillors' Association Group Leaders' Day at Local Government House in London. (Photo by Stefan Rousseau/PA Images via Getty Images) Police were called to the home of Boris Johnson after loud screams and concerns for a female neighbour. Conservative leadership candidate Mr Johnson shares his home with partner Carrie Symonds. The Guardian reported that officers were alerted to the domestic disturbance early on Friday after neighbours said there had been a loud altercation involving screaming, shouting and banging. Scotland Yard confirmed that the caller, who was from south London, "was concerned for the welfare of a female neighbour". The Metropolitan Police responded to a call from a local resident at 12.24am on Friday. A spokesperson for the force said: "The caller was concerned for the welfare of a female neighbour. "Police attended and spoke to all occupants of the address, who were all safe and well. "There were no offences or concerns apparent to the officers and there was no cause for police action." READ MORE Woman who killed neighbour in attack using scissors, broken bottle and ashtray jailed Sex with animals finally illegal in Canada after loophole is closed The neighbour had knocked on the door but received no response, according to The Guardian. The neighbour, who said they recorded the altercation from inside their home, told the newspaper: "I (was) hoping that someone would answer the door and say 'We're OK'. I knocked three times and no one came to the door." It was also reported that the neighbour heard a sound like "smashing" plates, along with "a couple of very loud screams" and a "loud bang" which shook the house. |
Women in college-educated workforce make breakthrough, study finds
Women are expected to make up a majority of the college-educatedlabor forcein the U.S. for the first time this year, according to new data analysis.
Though women have been the majority of college-educated adults in the U.S. since about 2007, women with degrees have lagged behind their male counterparts in the workforce until 2019, according to a Pew Research Centeranalysispublished Thursday.
Using data from the U.S. Bureau of Labor Statistics, the organization found that there were 29.5 million women in the workforce with at least a bachelor’s degree in the first quarter of 2019, which is just slightly more than the 29.3 million college-educated men in the workforce.
That brings women to 50.2 percent of the college-educated workforce. In 2000, that workforce was only 45.1 percent female.
“This milestone matters for women because educational attainment is highly correlated with income,” the organization said.
Employees with at least a bachelor’s degree earned $61,300 in 2017, compared to “typical workers” who earned $41,900 according to theCensus Bureau. However, that earnings gap is still greater for men than women, according to the Pew Research Center.
The value of a college degree also has greatereconomicimplications.
According to the organization, which found that about 35 percent of adults older than 25 in the U.S. have college degrees, but they still produce 57 percent of earnings in the country, according to labor market earnings from 2017.
Women have been earning more degrees than men since the 1980s and, by 2007, women surpassed the majority of college-educated adults in the U.S., according to the Pew Research Center.
However, those women are less likely to be in the workforce than men with college degrees, which is why it has taken so long for women to reach equity in the college-educated labor force, the center suggested.
“In 2018, 69.9 percent of college-educated women were in the labor force, compared with 78.1 percent of college-educated men,” the center said.
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Despite the overall findings, there are specific jobs where college-educated women continue to trail behind such as engineering or jobs with computers. Women with degrees also have a majority of positions such as health care practitioners and technicians and office and administrative support, according to the Pew Research Center.
“The growing number of college-educated women in the labor force translates into greater earning potential for women overall and could eventually contribute to the narrowing of the gender wage gap,” the organization said in its analysis.
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Should You Be Tempted To Sell Mid Penn Bancorp, Inc. (NASDAQ:MPB) Because Of Its P/E Ratio?
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This article is written for those who want to get better at using price to earnings ratios (P/E ratios). To keep it practical, we'll show how Mid Penn Bancorp, Inc.'s (NASDAQ:MPB) P/E ratio could help you assess the value on offer. Looking at earnings over the last twelve months,Mid Penn Bancorp has a P/E ratio of 14.24. That corresponds to an earnings yield of approximately 7.0%.
View our latest analysis for Mid Penn Bancorp
Theformula for price to earningsis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for Mid Penn Bancorp:
P/E of 14.24 = $25.11 ÷ $1.76 (Based on the year to March 2019.)
A higher P/E ratio means that investors are payinga higher pricefor each $1 of company earnings. That isn't necessarily good or bad, but a high P/E implies relatively high expectations of what a company can achieve in the future.
Probably the most important factor in determining what P/E a company trades on is the earnings growth. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. That means unless the share price increases, the P/E will reduce in a few years. A lower P/E should indicate the stock is cheap relative to others -- and that may attract buyers.
Mid Penn Bancorp increased earnings per share by a whopping 35% last year. And its annual EPS growth rate over 5 years is 2.6%. So we'd generally expect it to have a relatively high P/E ratio.
We can get an indication of market expectations by looking at the P/E ratio. As you can see below, Mid Penn Bancorp has a higher P/E than the average company (12.7) in the banks industry.
Its relatively high P/E ratio indicates that Mid Penn Bancorp shareholders think it will perform better than other companies in its industry classification. Shareholders are clearly optimistic, but the future is always uncertain. So further research is always essential. I often monitordirector buying and selling.
Don't forget that the P/E ratio considers market capitalization. In other words, it does not consider any debt or cash that the company may have on the balance sheet. The exact same company would hypothetically deserve a higher P/E ratio if it had a strong balance sheet, than if it had a weak one with lots of debt, because a cashed up company can spend on growth.
Such expenditure might be good or bad, in the long term, but the point here is that the balance sheet is not reflected by this ratio.
Mid Penn Bancorp's net debt is 13% of its market cap. That's enough debt to impact the P/E ratio a little; so keep it in mind if you're comparing it to companies without debt.
Mid Penn Bancorp has a P/E of 14.2. That's below the average in the US market, which is 18. The company does have a little debt, and EPS growth was good last year. If the company can continue to grow earnings, then the current P/E may be unjustifiably low. Given analysts are expecting further growth, one might have expected a higher P/E ratio.That may be worth further research.
When the market is wrong about a stock, it gives savvy investors an opportunity. If it is underestimating a company, investors can make money by buying and holding the shares until the market corrects itself. So thisfreereport on the analyst consensus forecastscould help you make amaster moveon this stock.
Of courseyou might be able to find a better stock than Mid Penn Bancorp. So you may wish to see thisfreecollection of other companies that have grown earnings strongly.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
'The midsize developer is certainly disappearing,' says Versus Evil founder
'The midsize developer is certainly disappearing,' says Versus Evil founder GameDaily spoke at length with Steve Escalante about working with indies, digital storefronts, and the state of the industry. James Brightman , Fri, 21 Jun 2019 19:38:00 In the last decade, we’ve witnessed a boom in the indie game development space. Game development has become increasingly democratized, with engines like Unreal removing licensing fees, accessible middleware tools, and digital storefronts. The average developer does not have business acumen or marketing savvy, however, which is why there have also been numerous indie publishers rising up ( Devolver Digital , Raw Fury , Fellow Traveller , etc.) in recent years to assist creatives on their journey. Versus Evil, set up in 2014, is one such indie label, and its founder Steve Escalante has seen an industry change before his eyes over the course of two decades in the industry. As with most industries, the money (or lack thereof) is at the heart of some of the biggest changes in the game development landscape, Escalante said in a recent interview with GameDaily. “I feel like it could be slipping back into the old days because everyone needs money, and as soon as everyone needs money, the power is in the control of the guys who have the money,” he commented. Versus Evil, like other indie labels, is interested in leveling the playing field to give indies a chance. Escalante’s operation provides direct support for developers ranging from marketing, advertising, public relations, social media, community management, product strategy, monetization, and, of course, distribution. Escalante believes that the industry, and those with the money and power, should not be overlooking the little guy. “The responsibility in my opinion is for those guys to say, ‘Yes, but you can have a return for your money. Yes, you're taking the risk, but at the same time, if you're keeping 90% of the revenue, then you are going to make these guys beholden to you, and that is why the whole indie boom started to begin with,” he added. “So be responsible; it's okay for other studios to make money. It's okay for other studios to move on from you because they're being successful, because that's what fosters creativity." Story continues Steve Escalante, Versus Evil A lot of the small studios aren’t getting as many opportunities or recognition, and for those that do start to grow, they typically get acquired by a big game company. And that means that the so-called AA studio has all but gone extinct. Microsoft has certainly played a part in this recently, gobbling up inXile, Obsidian, Ninja Theory, Compulsion Games, Playground Games, Undead Labs, and just recently Double Fine Productions . “That's arguably one of the most interesting things I think that's happening right now, because you can look at it in so many different ways,” Escalante said. “I would agree that the midsize developer is certainly disappearing... potentially even being redefined, right? I mean the Obsidian team of 100-plus people is hard to sustain as an independent developer, especially since most of the big AAA companies are bringing in internal development.” Bulking up internal development while simultaneously leveraging outsourcing companies like Virtuous or Keywords “essentially removes a lot of the needs [for] that midsize developer.” Whether that’s full development, co-development, live ops or other support, the indie or midsize developer is falling by the wayside. “Most of the bigger companies want teams that are 30, 40, 50-plus people. As soon as you say that, the little indie is out,” Escalante explained. “I've had conversations with many of those people, and they're asking me how we're doing. I'm like, ‘Well, I work with some amazing indie teams to help support games. We have our own internally as well. These guys and girls are all just really good at what they do, and it's the bigger companies that overlook these guys all the time because they're only five people, 10 people, 15 people.’ And I look at them and say, ‘Yes, but they've done some amazing work and we've worked with them over the years, and they deliver.’ “So it's an interesting thing where you have these indie companies that are being overlooked because of size, you have everyone else that basically is being gobbled up for internal development, and then you just have the big outsourcing companies like the Keywords of the world that can present a much different picture than let's say an indie porting studio or an indie art studio, because they just don't have the 30, 40, 50 people to be able to throw at a project. Which is also scary, because those things can be canceled at any time.” Because the majority of the indie companies aren’t given those opportunities, they’re not able to grow responsibly. And then you’re looking at a chicken-and-egg scenario because they need the bigger numbers to become more attractive. “It creates an interesting dilemma… because most of them are working on let's say indie focused budgets, and they're staying small,” Escalante continued. “It's something that I have conversations [about] with my guys all the time. It's almost like I have this responsibility… because I see this whole transition of, ‘Isn't this what happens? Isn't this why the whole indie movement started many years ago?’ [There was that] shift 20-plus years ago where the bigger companies weren't funding titles because it's just not going to sell a half million units. So [the loss of] IP rights and all that stuff started happening.” With the industry almost in a state of haves and have-nots, funding for the little guys becomes a critical issue. Escalante noted that Versus Evil definitely is funding more than it used to. “More teams need funds as opposed to in the past [when] a lot of teams were just developing the game on their own and all they needed us to come in and do was fund the marketing,” he said. Ultimately, that means a label like Versus Evil has to be more selective. “We're being submitted so many games that are playable that it allows me, at least today, to look at the titles in that capacity and say, ‘Okay, which ones are we the most excited about in funding and playing?’ Whereas the higher risk ones are trusting that team from a design doc all the way through and hoping that they find the fun after we've already put in a sizable amount of funds, which is obviously a higher risk.” Versus Evil won’t fund just any indie, either. The projects have to fit the mold of what Versus Evil has become known for, which judging by The Banner Saga and Pillars of Eternity II is primarily the RPG genre. “There are certain games that are Devolver games, certain games that are Raw Fury games, and have that flavor. We've literally looked at games and said, ‘I like it, but I'm not sure that that's a Versus Evil title.’ It's how we're known and what we're known for, which is really just good RPGs, good strategy, good art, that type of thing,” Escalante noted. Versus Evil published Obsidian's Pillars of Eternity II: Deadfire For a developer that’s lucky enough to get a pitch approved, the challenge of discoverability still awaits. Escalante acknowledged that discoverability remains their number one issue by far. That said, the rise of more storefronts (Epic Games Store, Discord, etc.) is certainly helpful. More platforms means more opportunities to find an audience. “When you look at the digital PC business, up until recently most of it has been Steam and then Steam resellers. So the reality is it's Steam. As a business owner, it should make you nervous that you have one of your major revenue streams essentially through one partner,” Escalante observed. “So I think that it's really good to look at the PC landscape now and see that there are different segments, different retailers, different regions of excellence. You've got aggregators out in Europe. You've got the GOG guys that have a different angle with the DRM-free stuff. They're also running a curated store as well. You've got the Epic guys that are running a pretty highly curated store right now as well, and they've also put out data that shows that a lot of their customers don't even have Steam. “I think these new storefronts that are out there are good for everyone to basically really make sure that your title gets the best chance of being promoted, and if that means doing a special deal with somebody, whether it's Discord or Epic or what have you, then why not?” On that last point, Escalante pushed back on the controversy that was generated by some of the exclusive deals Epic Games Store landed. He doesn’t understand why consumers are fuming. “I know a lot of customers have basically been upset that Epic is doing what they're doing. They feel like maybe they're fragmenting the market. I disagree. It's not a fragmentation,” he stressed. “Epic didn't stand at the store and say, ‘Hey, I know you have all your music with Google and we're asking you to switch over to an iOS platform.’ That's not what they're doing. I mean it's literally just click on a different icon on your computer that you have at home. So to me fragmentation is asking you to switch over to this completely different device as opposed to an icon on your desktop. “The reality is customers have been doing that for Origin and Uplay and Battle.net and all these things as well, but for some reason the perception of this other store, whether it's Epic or Discord or others, has created these interesting thoughts from the consumer point of view. So I look at it on the business side as well and just say, ‘I think it's great. It reminds me of the benefits and heyday of selling into GameStop and EB Games, and EB being the stronger in PC and GameStop being the stronger in console. And having those retailers basically working hard with you to sell as many of your games as possible.’ That's a really positive thing.” And from the developer standpoint, Escalante also argued that Epic’s 88/12 revenue split was “necessary,” because in today’s marketplace “30% is a hard thing to swallow if you're not necessarily seeing that value.” A more generous revenue share is no doubt appreciated, but it doesn’t solve the discoverability crisis. So what can a small team do? Well, aside from enlisting marketing help from a label like Versus Evil, Escalante said it really does begin with quality. Without that, all the marketing in the world won’t come to a game’s rescue. And while indies do lack resources, Escalante has seen one too many times situations where a team makes an excuse for quality. “You can't basically say it's this [orf that] and then make concessions and/or excuses as to why it's not as good. If you know it's not as good, then you should probably focus on making sure that it is as good,” he remarked. “The argument of, ‘Well we're indie,’ kind of doesn't [fly] ... I mean people don't believe in that excuse that much anymore. So you've got to create a good game in its own right, and yes you're going to have to probably make some feature considerations. You're going to have to make some art considerations, certainly some scale considerations because you are indie, but at the same time, focus on what you're doing. Focus on quality and the people that are playing those games will see that and react accordingly.” Once the quality is up to snuff, then Versus Evil can put its weight behind a game to amplify its messaging. But there’s another trend that developers should be keenly aware of as they grapple with their next projects: the impact of mobile on player expectations. There’s now an entire generation of gamers who grew up with mobile games as their first or dominant platform. These players are now in their late teens or even early-20s. It’s a new audience that may not seek out what the old-school PC developers are used to creating. “You start asking questions of, does a mobile customer or kid that basically is now moving into PC and console… do they discard a premium game like they do their free-to-play mobile game? Is it that fast? Are they willing to put in 100 hours into a game?” Escalante pondered. “All those questions are pretty big questions as you start looking at what you're creating content wise. So I think when you start looking at that and business models, whether that's subscription or what have you, you kind of look at it and go, ‘All right, so what are we doing to create the game?’” This generation of players has come to expect constant engagement as well. It’s something that developers in the live service era absolutely must consider, especially as more subscription services begin to enter the scene. “What is your game today? What is it going to be in the next year? Are you still going to be supporting it? Are we still creating DLC? Is that free? Is that premium? If we're part of a subscription service, how are we engaging those customers in month one, in month six, and 12 months? So all of those things basically start to really shape how you develop,” Escalante advised. “It becomes a really interesting problem to solve from a game perspective… do we need to create that 60 to 100-hour game or do we focus on a tighter game experience that they can play, really get enjoyment out of it, and then get out? To some regards, Fortnite's kind of like that. If you play one match of Fortnite, you can be done. The reality is it's so much fun, you play multiple times.” Making engrossing interactive entertainment is hard enough, and in the indie world it often means having to wear many hats at a small studio. But only those who can quickly adapt to ever-changing technologies and player behaviors will be able to survive the long game. Satisfying the community is a critical component. As Escalante said, it all boils down to: “How are we developing content and how are we keeping that conversation going with the community?" League of Legends blocked in Iran and Syria because of the U.S. government Steam is ending support for Ubuntu over 32-bit compatibility What Western Game Publishers Need To Know About Gamers In Asia [Industry Contributor] Jason Rubin: Oculus Quest is seeing 'console-like usage' |
SunPower sues former executive over trade secrets
June 21 (Reuters) - U.S. solar company SunPower Corp is suing a former senior executive, accusing him of stealing the company's proprietary information to help his new employer, Standard Industries, build a rooftop solar business.
The lawsuit, filed in state court in California in Santa Clara County on June 14, names Martin DeBono, SunPower's former executive vice president of global channels; Standard Industries; and Standard's solar division, GAF Energy, as defendants.
The lawsuit alleges that DeBono began working for Standard several months before he left SunPower in April 2018. It states that in 2017, DeBono forwarded emails containing proprietary sales information to a personal account and drafted a PowerPoint presentation called "Solar Overview for Standard" based on SunPower's proprietary and confidential information.
Privately held Standard Industries, which is based in New York, said the lawsuit was without merit.
"SunPower's claims are meritless. Talented people are joining GAF Energy because we are driving a more modern approach to residential, rooftop solar and clearly, SunPower is threatened," the company said in an emailed statement.
DeBono did not immediately respond to a request for comment.
Standard launched GAF Energy earlier this year with DeBono at the helm. The company is leveraging its existing roofing manufacturing business, GAF, to offer an integrated solar roof product.
SunPower has sued competitors and former employees in the past alleging theft of trade secrets, including SolarCity in 2012 and SunEdison in 2015.
"As the industry leader in solar technology, we take protecting our intellectual property very seriously," SunPower said in a statement. (Reporting by Nichola Groom; Editing by Richard Chang) |
Are Metro Inc.'s (TSE:MRU) Interest Costs Too High?
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Investors seeking to preserve capital in a volatile environment might consider large-cap stocks such as Metro Inc. (TSE:MRU) a safer option. Big corporations are much sought after by risk-averse investors who find diversified revenue streams and strong capital returns attractive. But, its financial health remains the key to continued success. I will provide an overview of Metro’s financial liquidity and leverage to give you an idea of Metro’s position to take advantage of potential acquisitions or comfortably endure future downturns. Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysisinto MRU here.
Check out our latest analysis for Metro
MRU has shrunk its total debt levels in the last twelve months, from CA$2.8b to CA$2.6b – this includes long-term debt. With this debt payback, MRU currently has CA$133m remaining in cash and short-term investments to keep the business going. Additionally, MRU has produced CA$638m in operating cash flow in the last twelve months, leading to an operating cash to total debt ratio of 24%, signalling that MRU’s debt is appropriately covered by operating cash.
At the current liabilities level of CA$1.3b, it appears that the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.43x. The current ratio is the number you get when you divide current assets by current liabilities. Generally, for Consumer Retailing companies, this is a reasonable ratio since there's a sufficient cash cushion without leaving too much capital idle or in low-earning investments.
MRU is a relatively highly levered company with a debt-to-equity of 46%. This isn’t uncommon for large companies because interest payments on debt are tax deductible, meaning debt can be a cheaper source of capital than equity. Accordingly, large companies often have an advantage over small-caps through lower cost of capital due to cheaper financing. By measuring how many times MRU’s earnings can cover interest payments, we can evaluate whether its level of debt is sustainable or not. As a rule of thumb, a company should have earnings before interest and tax (EBIT) of at least three times the size of net interest. For MRU, the ratio of 9.95x suggests that interest is appropriately covered. Large-cap investments like MRU are often believed to be a safe investment due to their ability to pump out ample earnings multiple times its interest payments.
At its current level of cash flow coverage, MRU has room for improvement to better cushion for events which may require debt repayment. However, the company exhibits proper management of current assets and upcoming liabilities. This is only a rough assessment of financial health, and I'm sure MRU has company-specific issues impacting its capital structure decisions. I recommend you continue to research Metro to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for MRU’s future growth? Take a look at ourfree research report of analyst consensusfor MRU’s outlook.
2. Valuation: What is MRU 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 MRU 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. |
Does "Freedom Weighting" Make a Better EM ETF?
• (1:00) - Alpha Architect and Factor Investing
• (4:10) - What is The Human Freedom Index
• (7:00) - Alpha Architect Freedom 100 Emerging Markets ETF:FRDM
• (11:25) - Factor Investing: What Criteria Do You Use For Value?
• (13:45) - Alpha Architect U.S. Quantitative Value ETF:QVAL
• (17:10) - Momentum Factor Investing: What Defines A Momentum Stock?
• (19:45) - Alpha Architect U.S. Quantitative Momentum ETF:QMOM
• (23:30) - Is Freedom An Investing Factor?
• (26:10) - Episode Roundup: Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with Perth Tolle, founder of Life + Liberty Indexes, and Jack Vogel, CIO at Alpha Architect.
Alpha Architect is an asset management firm focused on factor investing. They recently launched the Freedom 100 Emerging Markets ETF FRDM which uses human and economic freedoms as primary factors in the investment selection process.
Factor investing is among the hottest trends in the ETF industry. The factor industry is estimated at $1.9 trillion and is projected to grow to $3.4 trillion by 2022, according to BlackRock. To kick off the podcast, Jack explains the basics of factor investing.
FRDM provides a unique way of investing in emerging markets. Perth explains why countries that treat their citizens better usually outperform over the long term. The index uses data provided by the Fraser Institute, Cato Institute, and Friedrich Naumann Foundation for calculating freedom scores.
While China and Hong Kong represent more than 30% of the portfolio in popular EM ETFs, FRDM excludes them. It also has no exposure to countries like Russia and Saudi Arabia that have poor freedom and human rights record.
Taiwan, South Korea and Chile get highest exposure in the index. Taiwan Semiconductor TSM, Samsung Electronics SSNLF and Naspers NPSNY are its top holdings. FRDM does have a small indirect exposure to Tencent TCEHY due to Nasper’s investment in the Chinese tech giant.
What kind of performance investors can expect from FRDM versus other broad EM ETFs?
We then discuss value investing. The Alpha Architect U.S. Quantitative Value ETF QVAL seeks to invest in cheapest, highest quality value stocks. Chip stocks like Applied Materials AMAT, Micron MU and Intel INTC, which have been beaten down due to trade tensions, are among its holdings.
Value has been underperforming growth for the past several years. Can value finally get its grove back?
The Alpha Architect U.S. Quantitative Momentum ETF QMOM screens for high momentum stocks on the “quality” of their momentum. Hot stocks like Trade Desk TTD, Okta OKTA and MongoDB MDB are among its holdings.
Are value and momentum complementary? Can a combination of these two strategies produce better risk adjusted returns than the broader indexes?
Find out on the podcast.
Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportThe Trade Desk Inc. (TTD) : Free Stock Analysis ReportTencent Holding Ltd. (TCEHY) : Free Stock Analysis ReportSamsung Electronics Co. (SSNLF) : Free Stock Analysis ReportAlpha Architect U.S. Quantitative Value ETF (QVAL): ETF Research ReportsAlpha Architect U.S. Quantitative Momentum ETF (QMOM): ETF Research ReportsIntel Corporation (INTC) : Free Stock Analysis ReportMicron Technology, Inc. (MU) : Free Stock Analysis ReportApplied Materials, Inc. (AMAT) : Free Stock Analysis ReportTaiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis ReportMongoDB, Inc. (MDB) : Free Stock Analysis ReportNaspers Ltd. (NPSNY) : Free Stock Analysis ReportOkta, Inc. (OKTA) : Free Stock Analysis ReportFRDM-100 EM (FRDM): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment Research |
Police: Man spread terror propaganda before officer attack
PHOENIX (AP) — An 18-year-old Islamic State follower who was shot after throwing rocks at and wielding a knife toward a police officer in metro Phoenix earlier this year had used text messages to spread terror propaganda to a friend, according to documents released by authorities. Ismail Hamed sent a friend links to al-Qaida leader Osama bin Laden's declaration of jihad, a video of U.S.-born militant cleric Anwar al-Awlaki and texted a photo of the gunman in the 2016 Florida nightclub massacre with a message saying, "Never forget Orlando." In other texts, he alluded to the Columbine High School shooting in 1999, bemoaned the effect of Western secularism on Islam and said he had read accounts of prisoners jailed at the Guantanamo Bay detention center, according to records from the investigation released on June 14 at the request of prosecutors. Investigators say Hamed was gradually embracing extremist ideologies in the four months before the Jan. 7 attack outside a sheriff's substation in Fountain Hills, which is 30 miles (48 kilometers) northeast of Phoenix. Three weeks before the attack, Hamed texted a friend that the afterlife was all that mattered and that he didn't need anyone but Allah to survive. On the day of the attack, Hamed told a 911 operator that he pledged allegiance to the Islamic State, was armed with rocks and a knife, and wanted to meet face-to-face with an officer. He told the operator that he wanted to protest suffering in the Middle East. Body-camera video of the encounter shows that when a sheriff's sergeant asked for Hamed's identification, Hamed started throwing rocks at him, leading the officer to pull out his handgun and point it at Hamed, who then drew a knife and walked toward the sergeant. The officer shot Hamed, who survived his injuries, after Hamed ignored a warning to drop the knife. Hamed, who at the time was a high school student on winter break, has pleaded not guilty to aggravated assault and terrorism charges. He has been jailed since his arrest. Story continues Mark Mendoza, one of Hamed's attorneys, declined to comment on the records. The Maricopa County Sheriff's Office, which investigated the case, told The Associated Press that Hamed didn't have any contacts with recruiters for terrorist groups and instead was self-racialized through his research of the Islamic State and radical groups. He sent the texts to his high school friends, but Hamed is the only person among the group of friends who planned to carry out an attack and was believed to be a bona fide sympathizer of the Islamic State, the sheriff's office said. In a Sept. 21 text, Hamed asked a friend if he had read the declaration of jihad by bin Laden, the chief suspect in the 2001 attacks on the United States who was killed by Navy SEALs in Pakistan nearly a decade later, according to the records. "not yet, been busy with schoolwork, i will make time to read it this weekend," the friend responded. Two weeks before attacking the sheriff's sergeant, Hamed sent the same friend a link to a video featuring al-Awlaki, who was considered an inspirational leader of al-Qaida before he was killed in a drone strike in Yemen in 2011. Hamed texted his friend that the video was "an eye opener" and that he considered al-Awlaki to be "one of the best scholars of our time," according to the records. The same friend also received a Dec. 21 text from Hamed, who wrote "Never forget Orlando" and posted a photo of Omar Mateen, who killed 49 people at the Orlando nightclub in 2016 and was killed by police after opening fire in the name of the Islamic State. In a September text to three friends, Hamed said he was about to turn 18, with one friend responding, "What are you going to do with all that power?" Hamed responded by saying "the spirit of columbine is within me." He told a friend in a text in September that he hoped Islam didn't fall victim to Western secularism. "For example at my mosque we allowed non muslim women to enter in the mosque without a hijab just so we could give them the impression that we are a 'peace loving' faith," Hamed wrote. Even though Hamed would later invoke the Islamic State before throwing rocks at the officer, he criticized the terror group twice in texts in the preceding months, saying it wasn't fighting a noble jihad and calling it an asset of the Central Intelligence Agency. ___ Follow Jacques Billeaud at twitter.com/jacquesbilleaud. |
Is Momo Inc. (NASDAQ:MOMO) Trading At A 48% Discount?
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In this article we are going to estimate the intrinsic value of Momo Inc. (NASDAQ:MOMO) by taking the expected future cash flows and discounting them to today's value. This is done 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 Momo
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value:
[{"": "Levered FCF (CN\u00a5, Millions)", "2019": "CN\u00a54.17k", "2020": "CN\u00a54.96k", "2021": "CN\u00a56.02k", "2022": "CN\u00a56.35k", "2023": "CN\u00a56.64k", "2024": "CN\u00a56.91k", "2025": "CN\u00a57.16k", "2026": "CN\u00a57.40k", "2027": "CN\u00a57.64k", "2028": "CN\u00a57.87k"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x8", "2020": "Analyst x8", "2021": "Analyst x8", "2022": "Analyst x1", "2023": "Est @ 4.58%", "2024": "Est @ 4.02%", "2025": "Est @ 3.63%", "2026": "Est @ 3.36%", "2027": "Est @ 3.17%", "2028": "Est @ 3.04%"}, {"": "Present Value (CN\u00a5, Millions) Discounted @ 9.14%", "2019": "CN\u00a53.82k", "2020": "CN\u00a54.17k", "2021": "CN\u00a54.63k", "2022": "CN\u00a54.48k", "2023": "CN\u00a54.29k", "2024": "CN\u00a54.09k", "2025": "CN\u00a53.88k", "2026": "CN\u00a53.68k", "2027": "CN\u00a53.47k", "2028": "CN\u00a53.28k"}]
Present Value of 10-year Cash Flow (PVCF)= CN¥39.78b
"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 9.1%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = CN¥7.9b × (1 + 2.7%) ÷ (9.1% – 2.7%) = CN¥126b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= CN¥CN¥126b ÷ ( 1 + 9.1%)10= CN¥52.54b
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is CN¥92.32b. In the final step we divide the equity value by the number of shares outstanding. This results in an intrinsic value estimate in the company’s reported currency of CN¥445.24. However, MOMO’s primary listing is in China, and 1 share of MOMO in CNY represents 0.146 ( CNY/ USD) share of NasdaqGS:MOMO,so the intrinsic value per share in USD is $64.98.Relative to the current share price of $33.81, the company appears quite undervalued at a 48% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.
We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Momo 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 9.1%, which is based on a levered beta of 1.076. 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.
Whilst important, DCF calculation 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 Momo, There are three relevant factors you should look at:
1. Financial Health: Does MOMO 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 MOMO'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 MOMO? 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. |
New Instagram feature brings 'Suggestions For You' in DMs
The feature, which sends users similar accounts to the ones they currently engage with, is a part of Facebook's effort to expand its direct messaging platforms. Feature, along with Facebook's future plans, could lead to more engagement and ad dollars.
Read morehere.Read more...
More aboutTech,Facebook,Instagram,Mashable Video, andSocial Media |
A Look At The Fair Value Of MSA Safety Incorporated (NYSE:MSA)
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Today we will run through one way of estimating the intrinsic value of MSA Safety Incorporated (NYSE:MSA) 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!
Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model.
View our latest analysis for MSA Safety
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars:
[{"": "Levered FCF ($, Millions)", "2019": "$171.97", "2020": "$203.41", "2021": "$223.07", "2022": "$239.99", "2023": "$254.69", "2024": "$267.71", "2025": "$279.47", "2026": "$290.36", "2027": "$300.66", "2028": "$310.58"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x1", "2020": "Analyst x1", "2021": "Est @ 9.67%", "2022": "Est @ 7.59%", "2023": "Est @ 6.13%", "2024": "Est @ 5.11%", "2025": "Est @ 4.4%", "2026": "Est @ 3.9%", "2027": "Est @ 3.55%", "2028": "Est @ 3.3%"}, {"": "Present Value ($, Millions) Discounted @ 7.67%", "2019": "$159.72", "2020": "$175.46", "2021": "$178.72", "2022": "$178.58", "2023": "$176.02", "2024": "$171.84", "2025": "$166.61", "2026": "$160.77", "2027": "$154.62", "2028": "$148.35"}]
Present Value of 10-year Cash Flow (PVCF)= $1.67b
"Est" = FCF growth rate estimated by Simply Wall St
After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 2.7%. We discount the terminal cash flows to today's value at a cost of equity of 7.7%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$311m × (1 + 2.7%) ÷ (7.7% – 2.7%) = US$6.5b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$6.5b ÷ ( 1 + 7.7%)10= $3.09b
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 $4.76b. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of $122.94. Relative to the current share price of $103.6, the company appears about fair value at a 16% 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.
We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. 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 MSA Safety 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 7.7%, which is based on a levered beta of 0.829. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Although the valuation of a company is important, it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For MSA Safety, There are three additional aspects you should look at:
1. Financial Health: Does MSA 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 MSA'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 MSA? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Texans Are Very Upset About the Sale of Whataburger. Here's Why That Reaction Makes Total Sense
In April 2001, a joint resolution passed the Texas House and Senate that declared Whataburger, the states beloved fast-food chain, to be a Texas Treasure. In the most Texan fashion imaginable, the bill honoring the burger institution was introduced by the state chair of the Texas Public Health Committee. They deserve credit for capturing the hearts and taste buds of millions of Texans, including many in the House of Representatives, Rep. Jaime Capelo said in the preamble to the vote. (The measure passed with bipartisan support.) Nearly 20 years later, it remains true that across Texas political disparate spectrum, Whataburger may be the only thing that Ted Cruz and Beto ORourke could both admit to loving. But late last week, the states devotion to Whataburger came under serious strain when the 69-year-old, family-owned company sold its controlling interest to a Chicago-based investment firm. The news inspired all measures of betrayal-themed responses. Whataburgers been sold to the Yanks, Texas Monthly offered . Whatadisaster, read one Houston-area headline. On Twitter, Houston Texans star J.J. Watt suggested that fans affected by the sale unite to buy the franchise back and to add kolaches to the menu. (Texas Governor Greg Abbott responded to Watt by tweeting a picture of George W. Bush driving a pick-up truck with the caption, Get in J.J., Were saving Whataburger.) Elsewhere, memes depicting heartbreak and offense were circulated. 182 men didnt die at The Alamo just so we could give @Whataburger over to Chicago, went another representative tweet. Ok, I say we all chip in and buy Whataburger back. Make honey butter chicken biscuits available all day, add kolaches to the menu and change nothing else. Especially not the ketchup. https://t.co/HadutHXJ9l JJ Watt (@JJWatt) June 14, 2019 This ferocious display of grief shouldnt be surprising. Though Texan pride itself may be infamous and intense, strongly felt passion for regional fast food is practically a national rite . After all, regional chains are the unsung heroes of the fast-food industry; they dwell in semi-obscurity nationally, capturing the quirks and particularities of an area. They dont seek out mass appeal in the way a national chain like McDonalds or Burger King does. Instead, a three-way mishmash of chili, spaghetti and cheese at Skyline Chili makes sense to an Ohioan in the way that a blueberry biscuit at Bojangles makes sense to someone from the Southeast. One overarching irony is that fast-food chains are frequently characterized as corporate and impersonal. But what their ubiquity breeds is familiarity and what their all-hours accessibility creates is the opportunity for ritual. Growing up in Texas, my Whataburger ritual took place in high school when, almost without fail, my friends and I would pile into our cars and drive to Whataburger every weekend night. Wed arrive at 11 p.m., when the chain would start serving breakfast and wed order taquitos beautiful, eggy, cheesy concoctions wrapped in warm tortillas and served with branded picante sauce thats so good its sold in local grocery stores. If we had enough time to spare before our curfews, my friends and I would go inside to eat them. The cashier would hand us small numbered plastic table tents to hold while we waited for our orders, markers that, if you were 16, you might sneak into your pocket to decorate your room with later. Then wed all jam into a booth and devour our taquitos and talk about the otherworldly basketball exploits of Hakeem Olajuwon or the unremarkable drama of our romantic lives. If we were running behind schedule, there was always the drive-thru. And if the drive-thru line was packed because of a concert, a high school football game, the rodeo or the frequent 11 p.m. crush, wed just speed toward the next Whataburger, which was never more than an eight-minute drive away. This ceremony strikes at another glory of regional fast food: how an experience can feel both specific and universal at the same time. As a Texas kid, I felt the way about Whataburger as a kid in the Midwest might have felt about Steak n Shake as a kid in North Carolina might have felt about Cook Out as a kid in California might have felt about In-N-Out as a kid in Wisconsin might have felt about Culvers, and so on. An open letter to our beloved fans: pic.twitter.com/3pVjZ7zmKc Whataburger® (@Whataburger) June 14, 2019 Texas, we dont want you to be upset, Whataburger wrote in an open letter on Twitter. We will always be Texan and represent you in a way that makes you proud. Its a nice sentiment from a chain with enormous, hard-earned credibility, but with Whataburger so deeply enmeshed in the iconography of Texas its A-frame buildings and bright orange signage are legend something does sting about seeing it go from a family-owned operation to a column in an investment-firm ledger in a faraway place. For many in the Lone Star State, theres still an inescapable sense that Texas has just been messed with. View comments |
Fans are scratching their heads over this picture of Khloe Kardashian
Photo credit: Getty Images From Cosmopolitan Khloe Kardashian has some answering to do after a bunch of internet users have been left scratching their heads over her appearance in a recent Instagram upload. Keeping Up With The Kardashians fans have pointed out that she looks wildly different in her latest image, with some people jumping to the conclusion that she may have undergone cosmetic surgery. Photo credit: Giphy The picture in question shows the mum-of-one looking off to the side and giving viewers the *perfect* shot of her side-profile. The Kardashian-Jenner gang have all been fairly open about how contouring can alter the shape of their entire faces, with Kim Kardashian previously crediting the technique with slimming down her nose. View this post on Instagram 🐾 A post shared by Khloé (@khloekardashian) on Jun 20, 2019 at 9:07pm PDT Drawing comparisons between the two sisters, one person commented: “I thought it was Kim 😳😳😳,” as another said: “I honestly couldn’t tell which Kardashian this was for a moment, I had to look at the name.” “Is it me, or does she look different in every one of her pictures? She’s still gorgeous though! ❤️,” another fan responded, as a fourth straight-up dusted off their conspiracy theory book: “Where is Khloe? This picture isn’t her.” Photo credit: Instagram Despite several people arguing that the shape of her nose has totally changed, it’s worth mentioning that Khloe has responded to similar comments in the past by admitting she has a fear of going under the knife. Just last year, she explained: “One day, I think I’ll get one because I think about it every day. But I’m scared, so for now, it’s all about contour.” That would explain it. ('You Might Also Like',) A ranking of the very best hair straighteners - according to our Beauty Editors Best party dresses to shop in the UK right now 11 products you'd be mad to miss from the Net A Porter beauty sale |
Waymo to expand driverless car company outside the U.S.
The car company plans to go to France and Japan. This is part of a partnership with Renault and Nissan.Read morehere.Read more...
More aboutTech,Transportation,Mashable Video,Driverless Cars, andWaymo |
US blacklists 5 Chinese supercomputing companies, labels them national security threats
The U.S. Department of Commerce added fiveChinese technologycompanies to its national security entity list on Friday ahead of President Trump and Chinese President Xi Jinping's expected meeting at the G-20 Summit next week.
The companies' addition to theentity listrequires them to seek U.S. government approval before they can purchase American parts and undergo a license review, effectively blacklisting them.
The newly listedChinese companiesare Chengdu Haiguang Integrated Circuit, Chengdu Haiguang Microelectronics Technology, Higon, Sugon and the Wuxi Jiangnan Institute of Computing Technology, according to a filing from the department'sBureau of Industry and Security. The restriction also listed numerous aliases related to the companies.
The five groups are involved in supercomputing and were added to the list over concerns of military applications of their technology.
"The Entity List [...] identifies entities for which there is reasonable cause to believe, based on specific and articulable facts, have been involved, are involved, or pose a significant risk of being or becoming involved in activities contrary to the national security or foreign policy interests of the United States," according to the filing.
The additions to the blacklist came ahead of Trump and Xi's anticipated meeting to discuss trade on the sidelines of the G-20 Summit in Osaka, Japan. The hope is the leaders' talk will rekindle negotiations amid an ongoing trade war between the two countries.
"The heads of the two trade teams will communicate, according to instructions passed down from the two presidents," Chinese commerce ministry spokesman Gao Feng told reporters, according to Reuters. "We hope [the United States] will create the necessary conditions and atmosphere for solving problems through dialogue as equals."
Trump has imposed 25 percent tariffs on $250 billion in Chinese imports and is preparing to target another $300 billion, extending the import taxes to virtually everything China ships to the United States. China has retaliated with tariffs on U.S. products.
"Adding more Chinese companies to the U.S. bad guys list may be seen as a way to ramp up the pressure on China," said Amanda DeBusk, a partner at Dechert LLP and the former Commerce Department assistant secretary for export enforcement. "However, the Chinese may see this as ill-timed bullying. They cannot be seen as making concessions to the United States, so this may have the effect of hurting any chances for trade agreement."
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Vice President Mike Pence also canceled a planned speech in Washington, D.C., that would have criticized China's stance on human rights.
The remarks, meant to be delivered at the Wilson Center, were already delayed from its original date of June 4 — the 30th anniversary of the Tiananmen Square massacre.
A White House official cited the apparent progress of trade talks between Trump and Xi for the postponement and said his speech will be delivered after the G-20 meeting, according toBloomberg.
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Gold Bug Peter Schiff Celebrates Metal’s Pitiful Gains, Bashes Bitcoin
ByCCN Markets: Longtime crypto critic and gold proponent Peter Schiff is excited. He’s not happy due to the stock market hitting newall-time highsorbitcoin pricessurging but rather by a microscopic advance in the price ofgold.
This week, the price of gold topped $1,400 per ounce for the first time in more than five years. This, a mere 25% rally from recent lows, was enough for Schiff to declare victory:
Schiff dismisses bitcoin’s huge gains while declaring a new gold bull market | Source: Twitter
Over the last year exactly, it is up $130 per ounce or 10 percent.
Peter Schiff has reasons to stay permanently bullish on gold. For one, he runs a website which buys and sells physical gold and silver. His asset management company also runs a mutual fund that invests in gold-related stocks. Over the past five years, ithas returnedless than 1 percent annually. Forget topping bitcoin, Schiff’s gold fund hasn’t even been able to keep up with a savings account.
Read the full story on CCN.com. |
Nissan's idea for a better ice cream truck: Make it electric
Instead of gas-powered ice cream vans that require generators, Nissan built a prototype with electric batteries for rechargeable, renewable soft-serve.
The e-NV200 all-electricvan came outlast year, but this week, for UK Clean Air Day, Nissan unveiled how it could be modified to transport, deliver, and chill ice cream.
Image: nissan
The truck has just under a 125-mile range with a 40kWh battery powering the motor. The precious cargo from Mackie's of Scotland is served from a soft-serve machine and a freezer, which are powered by Nissan's new recycled battery system called Energy Roam. The drink fridge is also powered through the energy system, which goes on sale later this year.Read more...
More aboutNissan,Ice Cream,Electric Vehicles,Tech, andEnergy |
Should Merus (NASDAQ:MRUS) Be Disappointed With Their 75% Profit?
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By buying an index fund, you can roughly match the market return with ease. But if you buy good businesses at attractive prices, your portfolio returns could exceed the average market return. For example, theMerus N.V.(NASDAQ:MRUS) share price is up 75% in the last three years, clearly besting than the market return of around 39% (not including dividends).
See our latest analysis for Merus
Given that Merus 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.
Merus's revenue trended up 72% each year over three years. That's much better than most loss-making companies. The share price rise of 20% per year throughout that time is nice to see, and given the revenue growth, that gain seems somewhat justified. If that's the case, now might be the time to take a close look at Merus. If the company is trending towards profitability then it could be very interesting.
You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).
Balance sheet strength is crucual. It might be well worthwhile taking a look at ourfreereport on how its financial position has changed over time.
The last twelve months weren't great for Merus shares, which cost holders 37%, while the market wasupabout 6.4%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Fortunately the longer term story is brighter, with total returns averaging about 20% per year over three years. The recent sell-off could be an opportunity if the business remains sound, so it may be worth checking the fundamental data for signs of a long-term growth trend. You might want to assessthis data-rich visualizationof its earnings, revenue and cash flow.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on 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. |
Woman outraged after being told to take down 'improper' pride flag: 'It's a right of freedom of expression'
Robin Chipman received a letter from her home owner's association asking her to take down her gay pride flag, or pay hefty fines. (Credit: Robin Chipman) Just a day before the kickoff of largest LGBTQ Pride celebration in Florida, held in St. Petersburg, a resident of the city was told to remove the Gay Pride flag she’d hung on her porch, after fellow condo owners complained, calling it “improper.” “We have a Home Owner’s Association (HOA) community here that is very bigoted,” the resident, Robin Chipman, a retired commercial interior designer, tells Yahoo Lifestyle. “They’re using this as an example to say, ‘This is what we can and can’t do and what to believe in.’” Chipman’s beachside condo is right near the setting of St. Pete Pride , which kicks off Friday and runs through Sun. Jun. 23. When Chipman’s friend and his partner decided to rent out the unit above hers to join in the festivities, she busted out the rainbow flag as a way of showing she was an LGBTQ ally. “I was at Party City getting my lei and my rainbow umbrella. I saw the flag and thought it would be fun,” Chipman says. However, just days after hanging her sign of solidarity, she received a letter from the HOA saying that her “improper flag” violated building exterior guidelines. The letter went on to “respectfully request” that she take down the flag by July 2— or pay a fine of $100 per day, up to $1,000. “I was upset. It’s a right of freedom of expression. It’s a celebration of a people that have been oppressed for so long and they deserve to have their day in the sun like all of us do,” Chipman says. Robin’s homeowner association, the Waterside at Coquina Key North Condo Association, did not immediately respond to Yahoo Lifestyle’s request for comment. According to Chipman, the HOA’s guidelines allow owners to decorate the building exterior for holidays 15 days before and 15 days after the celebration. “People are allowed to have flags on game day to show their support for their team. [Flying my pride flag] is just going along with the guidelines,” says Chipman, who feels she’s being singled out, noting that some of the condo association’s board members have had outstanding violations with no repercussions. Although Chipman was planning to take down the flag after the weekend’s Gay Pride festivities anyway, she says she felt the need to speak out so that things like this don’t happen in the future. “It sheds a poor light on all of us here,” she says. “I would rather not have to publicize it, but it’s wrong and I think people need to know that they can’t do this.” Despite pushback by some fellow owners, Chipman says she plans to fight the existing rules so she can fly her rainbow flag with pride next year, and the year after. Story continues Read more from Yahoo Lifestyle: • Gay couple receives letter saying they gave young neighbor the 'courage' to come out: 'Visibility is so important ' • Man buys U.S. town, renames it 'Gay Hell' to protest Trump's ban on pride flags • Teen fired from Christian camp counselor job for being gay: ‘I’m heartbroken’ Follow us on Instagram , Facebook , and Twitter for nonstop inspiration delivered fresh to your feed, every day. View comments |
Do You Like Microsoft Corporation (NASDAQ:MSFT) At This P/E Ratio?
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This article is written for those who want to get better at using price to earnings ratios (P/E ratios). We'll show how you can use Microsoft Corporation's (NASDAQ:MSFT) P/E ratio to inform your assessment of the investment opportunity. Looking at earnings over the last twelve months,Microsoft has a P/E ratio of 30.11. That corresponds to an earnings yield of approximately 3.3%.
See our latest analysis for Microsoft
Theformula for price to earningsis:
Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Or for Microsoft:
P/E of 30.11 = $136.95 ÷ $4.55 (Based on the trailing twelve months to March 2019.)
The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. That isn't a good or a bad thing on its own, but a high P/E means that buyers have a higher opinion of the business's prospects, relative to stocks with a lower P/E.
Probably the most important factor in determining what P/E a company trades on is the earnings growth. When earnings grow, the 'E' increases, over time. That means even if the current P/E is high, it will reduce over time if the share price stays flat. And as that P/E ratio drops, the company will look cheap, unless its share price increases.
In the last year, Microsoft grew EPS like Taylor Swift grew her fan base back in 2010; the 122% gain was both fast and well deserved. And earnings per share have improved by 51% annually, over the last three years. So we'd absolutely expect it to have a relatively high P/E ratio.
We can get an indication of market expectations by looking at the P/E ratio. If you look at the image below, you can see Microsoft has a lower P/E than the average (51.6) in the software industry classification.
Its relatively low P/E ratio indicates that Microsoft shareholders think it will struggle to do as well as other companies in its industry classification. While current expectations are low, the stock could be undervalued if the situation is better than the market assumes. If you consider the stock interesting, further research is recommended. For example, I often monitordirector buying and selling.
It's important to note that the P/E ratio considers the market capitalization, not the enterprise value. Thus, the metric does not reflect cash or debt held by the company. In theory, a company can lower its future P/E ratio by using cash or debt to invest in growth.
While growth expenditure doesn't always pay off, the point is that it is a good option to have; but one that the P/E ratio ignores.
Since Microsoft holds net cash of US$53b, it can spend on growth, justifying a higher P/E ratio than otherwise.
Microsoft trades on a P/E ratio of 30.1, which is above the US market average of 18. Its net cash position is the cherry on top of its superb EPS growth. So based on this analysis we'd expect Microsoft to have a high P/E ratio.
Investors should be looking to buy stocks that the market is wrong about. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' So thisfreereport on the analyst consensus forecastscould help you make amaster moveon this stock.
Of courseyou might be able to find a better stock than Microsoft. So you may wish to see thisfreecollection of other companies that have grown earnings strongly.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Spotify claims it 'overpaid' songwriters and wants its money back
Spotify and music publishers have been in a bit of a tiff for months over aplanned royalty rate increasethat would require streaming services to pay more to artists. You can bet the company is watching the numbers closely, especially while it appeals the new rules. Spotify now claims that it overpaid songwriters and publishers last year, and now it's asking for its money back, according toMusic Business Worldwide.
The entire issue stems from a decision made by the US Copyright Royalty Board (CRB) that would mandate higher payouts for streaming content. The increase, which would affect services like Spotify, Apple Music, Pandora and others, wouldraise royalties by 43.8 percentover the next five years. Spotify -- which reportedly pays out$0.006 to $0.0084 per stream, split between rights holders (songwriters, publishers, etc.) -- has fought against the new royalty rates, claiming they would harm "both music licensees and copyright owners."
Complicating the matter is a bit of complexity relating to how discounted student and family subscriptions are treated under the new revenue plan.Music Business Worldwidereports that the agreement requires family plans to be counted as 1.5 subscribers per month and student to be counted as 0.5 subscribers per month. Based on Spotify's calculations, the company says it overpaid songwriters and publishers, and now wants that money back.
"According to the new CRB regulations, we overpaid most publishers in 2018. While the appeal of the CRB decision is pending, the rates set by the CRB are current law, and we will abide by them -- not only for 2018, but also for future years in which the amount paid to publishers is set to increase significantly," a spokesperson for Spotify told Engadget.
"Rather than collect the 2018 overpayment immediately, we have offered to extend the recoupment period through the end of 2019 in order to minimize the impact of the adjustment on publishing companies," the spokesperson said. |
Is Now An Opportune Moment To Examine Molina Healthcare, Inc. (NYSE:MOH)?
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Molina Healthcare, Inc. (NYSE:MOH), which is in the healthcare business, and is based in United States, received a lot of attention from a substantial price increase on the NYSE over the last few months. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s examine Molina Healthcare’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
Check out our latest analysis for Molina Healthcare
Great news for investors – Molina Healthcare is still trading at a fairly cheap price. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 11.32x is currently well-below the industry average of 21x, meaning that it is trading at a cheaper price relative to its peers. However, given that Molina Healthcare’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with a relatively muted profit growth of 7.5% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Molina Healthcare, at least in the short term.
Are you a shareholder?Even though growth is relatively muted, since MOH is currently undervalued, it may be a great time to increase your holdings in the stock. 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 MOH for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MOH. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Molina Healthcare. You can find everything you need to know about Molina Healthcare inthe latest infographic research report. If you are no longer interested in Molina Healthcare, 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. |
Should You Be Pleased About The CEO Pay At Trek Metals Limited's (ASX:ZRL)
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Brad Drabsch became the CEO of Trek Metals Limited (ASX:ZRL) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Trek Metals
According to our data, Trek Metals Limited has a market capitalization of AU$2.6m, and pays its CEO total annual compensation worth US$241k. (This number is for the twelve months until March 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$146k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$246k.
So Brad Drabsch is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Trek Metals has changed over time.
Over the last three years Trek Metals Limited has shrunk its earnings per share by an average of 25% per year (measured with a line of best fit). In the last year, its revenue is down -85%.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking outthis more detailed historical graphof earnings, revenue and cash flow.
Since shareholders would have lost about 93% over three years, some Trek Metals Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
Remuneration for Brad Drabsch is close enough to the median pay for a CEO of a similar sized company .
The company isn't growing EPS, and shareholder returns have been disappointing. Few would argue that it's wise for the company to pay any more, before returns improve. CEO compensation is one thing, but it is also interesting tocheck if the CEO is buying or selling Trek Metals (free visualization of insider trades).
If you want to buy a stock that is better than Trek Metals, thisfreelist of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
The Latest: California lawmakers reviewing utility plan
SACRAMENTO, Calif. (AP) — The Latest on a plan by the California governor to create a fund for utilities to tap if they face massive liability costs from wildfires. (all times local): 12:15 p.m. California legislative leaders aren't yet on board with Gov. Gavin Newsom's plan to create a fund that utilities can tap if they face massive liability costs from wildfires. Senate leader Toni Atkins says the chamber hasn't yet received a formal proposal from Newsom. She says any action taken by the Legislature must protect ratepayers and wildfire victims while keeping electric service reliable. Assembly Speaker Anthony Rendon says committees will need to review the proposal and hold public hearings. Under the plan, utilities would have to adopt strict safety measures, including tying executive compensation to safety performance, to access the fund. Newsom's proposal Friday was not written in formal language needed to begin the legislative process. He says he wants a deal by July 12. __ 11:15 a.m. Gov. Gavin Newsom is proposing to throw a financial lifeline to California's biggest electric companies dealing with the results of disastrous wildfires — but only if the companies agree to concessions such as tying executive pay to safety. The plan announced Friday would also require companies to spend a combined $3 billion on safety measures over the next three years. If the utilities satisfy the proposed requirements, they would get financial assistance from the state. Newsom is proposing letting Southern California Edison and San Diego Gas & Electric decide what type of assistance fund they want. Pacific Gas & Electric Corp. would not get a say as it goes through bankruptcy proceedings. Legislators still have to approve the plan. Newsom aims to strike a deal within the next three weeks. |
First day of summer, National Smoothie Day: Free food and discounts at Dairy Queen, Jamba
The longest day of the year is one of the sweetest.
For the first day of summer Friday, which also is National Smoothie Day, several businesses are offering frozen freebies and discounts like 50% off smoothies.
June 21 also isNational Selfie Day,Take Your Dog to Work Day, National Seashell Day and National Take Back the Lunch Break Day, according toNationalDayCalendar.com.
The freebie fest continues Saturday at Krispy Kreme.
Because 1 million free doughnuts were given out June 7 for National Doughnut Day, Krispy Kreme has a second deal. The doughnut chain is giving out its new Original Filled doughnuts, available in vanilla and chocolate, while supplies last.
June deals:How, where to get free food – doughnuts, tacos and more – and discounts
Year of freebies and deals:Map out the year's biggest deal days so you don't miss out
Participation and offers can vary by location and unless otherwise noted these deals are only available June 21 and while supplies last. Some will require you to have a restaurant's app or be signed up for emails. To be on the safe side, check with your closest location.
Applebee's:The June Neighborhood Drink of the Month is the $1 Vodka Raspberry Lemonade, which is served in a 10-ounce mug with vodka, Tropicana Lemonade, raspberry and lemon juice. For National Smoothie Day, there’s not a nationwide special, but check with your closest location as some franchises might have various promotions. For instance, at locations owned and operated by Doherty Enterprises, smoothies are $4.99.
Auntie Anne's:The pretzel chain's new Strawberry Lemonade Frost debuts Friday and for delivery orders will be available in a special keep-cold cup. While there's not a deal, earn points with theMy Preztel Perks loyalty program.
Bahama Breeze:The chain's Legendary Island Cocktails are $5 Friday.
Boston Market:Bring in any sandwich – whether it’s homemade or from a competitor – between 11 a.m. to 2 p.m. Friday and get a free Boston Market sandwich. The chain is calling its first day of summer“sandwich throwdown”a nationwide taste test of its four new sandwiches.
Carl's Jr.:The chain’s 100 Days of Summer promotion features limited-time offers and contests. Through Aug. 20, there will be a daily Happy Hour with six-piece Chicken Stars and a small Coca-Cola for $3, four-piece Chicken Stars with any combo purchase for $1 and new classic floats for $2.99. On social media, share how you’re celebrating summer and each week winners will be selected. Learn more atwww.carlsjr100daysofsummer.com.
Cumberland Farms:Text the word SUMMER to 64827 Friday and opt-in to the Cumberland Farms text database to receive a summertime offer. Existing members of the database will receive the offer on Friday morning and the offer is valid through Sunday. The text says "Scratch to reveal your winnings" for an offer.
Dairy Queen:With an offer on the DQ mobile app and any purchase Friday, get a free small regular or dipped cone. Download the app atwww.dairyqueen.com/app.
Dunkin’:There are two different Dunkin’ deals.At restaurants Friday through Sunday, DD Perks rewards members get on medium or large-sized iced and frozen beverages. There’s also a way to get a free can ofDunkin’ Shot in the Darksent to your home. Ask Amazon Alexa or Google Assistant to send by saying: “Ask Send Me a Sample for Dunkin’ Shot in the Dark Coffee." Friday’s smart assistant promotion is available while supplies last. Learn more about how the promotion works atwww.dunkinanytime.com.
Edible Arrangements:Get $1.99 smoothies or fruit cups through Sunday. Not all locations sell smoothies and the deal is available at stores and for in-store orders placed online with promo code SMOOTHIE.
Fruitlove:Get the new spoonable smoothie for free after a rebate from the Ibotta cashback app at select stores for National Smoothie Day. The smoothie comes in five flavors and “combines the benefits of creamy yogurt and real fruits and vegetables, with the added convenience of an adorable green spoon,” the company said in a statement.
Jamba:The chain, which recently changed its name from Jamba Juice, is giving away free small smoothies from 2 to 5 p.m. Friday. Choose from Watermelon Breeze, Vanilla Blue Sky or White Gummi smoothie.
La Colombe Coffee Roasters:Get a free Mocha Draft Latte with any purchase Friday at all café locations.
Nekter Juice Bar:Superfood smoothies are $5 Friday for rewards members at participating locations. Download the app atwww.nekterjuicebar.com.
Planet Smoothie:From 2 to 4 p.m. Friday, get a free 16-ounce Mediterranean Monster smoothie. No purchase is necessary and limit one free smoothie while supplies last.
Potbelly Sandwich Shop:Through Friday, the chain is celebrating "Take Back Your Lunch Day" with a buy-one-get-one free offer on sandwiches, salads or Pick-Your-Pair.
Red Mango:Get 50% off any smoothie Friday.
Robeks Fresh Juices & Smoothies:Rewards members get triple rewards on all in-store and online purchases Friday. Sign up for the loyalty program atwww.robeks.com.
Smoothie Factory:Smoothies are half price Friday.
Smoothie King:Use the chain’sHealthy Rewards appwith a purchase Friday and get a free 20-ounce smoothie offer loaded on the app to redeem June 22-27. The free smoothie is limited to a $6 value. Get the app atwww.smoothieking.com/healthy-rewards.
Tropical Smoothie Cafe:As part of its National Flip Flop Day promotion, the chain is collecting donations through June 30. Donate $5 or more and get a discount for 5% off your purchases for the rest of the year. Learn more atwww.nationalflipflopday.com.
Wayback Burgers:Friday is the chain'sFree Shake Day. Get a free 12-ounce Black & White Milkshake, while supplies last at participating locations. No purchase is necessary and there's a limit of one per customer.
Wendy's:Starting Friday and through July 14, get a free half-sizeBerry Burst Saladwith any purchase using theWendy’s mobile app.
More deals:Locally owned businesses and smaller chains also may have deals Friday. One of the easiest ways to find out is to check social media channels.
Follow Kelly Tyko on Twitter:@KellyTyko
This article originally appeared on USA TODAY:First day of summer, National Smoothie Day: Free food and discounts at Dairy Queen, Jamba |
South Korea's POSCO drops plans for Chilean battery material plant
By Dave Sherwood and Jane Chung
SANTIAGO/SEOUL, June 21(Reuters) - South Korea's POSCO has pulled out of a project to build battery parts in Chile, the Asian steelmaker said, little more than a year after winning guaranteed access to cheap lithium from top producer Albemarle.
POSCO, together with partner Samsung SDI, won a 2018 Chilean government tender to build a battery-parts factory in the country's northern desert in exchange for a 27-year supply of low-cost lithium.
The problem, POSCO told Reuters, is that the project it proposed requires lithium hydroxide, a type of the metal increasingly favored by EV battery makers but one not produced by Albemarle in Chile.
Albemarle in Chile produces primarily lithium carbonate, a variety of the metal that is widely used in smaller consumer electronics.
Samsung, the world's largest maker of smartphones, told Reuters that it is still reviewing the project following Posco’s announcement.
POSCO's decision is yet another in a string of setbacks for Chile, which has struggled to modernize its lithium policies, boost output and develop a domestic battery industry, despite having the world's largest supplies of the metal and rising global EV demand.
Albemarle and the Chilean government in 2016 signed an agreement that allows Albemarle to more than triple its output of lithium. But the deal requires the company reserve as much as 25 percent of its production for companies seeking to build batteries or their parts in Chile. The agreement does not specify whether Albemarle should produce lithium carbonate or lithium hydroxide at its facilities.
Albemarle and Corfo, which leases the company its mining rights in Chile, initially disagreed on how to price the lithium it would provide to the battery makers, but have since come to agreement. Neither has offered details of the settlement.
Albemarle did not immediately respond to requests for comment on Posco's decision.
China's Sichuan Fulin Transportation Group Co and Chile's privately held Molymet also won access to the discounted lithium in last year's tender.
Fulin and Molymet did not immediately respond to requests for comment.
Following last year's tender, Chile's government said the price tag for the three projects was $754 million. At least 664 jobs would be created.
The deals were widely seen as a foot in the door into Chile as countries and global corporations scramble to lock down supplies of key metals used in batteries that power cell phones, tablets and electric vehicles.
POSCO last summer said it would build a lithium plant in Argentina to help secure its own supply. That announcement came as POSCO also said it would buy lithium mining rights in Argentina from Galaxy Resource Ltd's in a deal worth $280 million.
(Reporting by Dave Sherwood and Jane Chung; Additional reporting by Shanghai newsroom; editing by Ernest Scheyder and Leslie Adler) |
Murphy says he's reviewing budget but will meet deadline
TRENTON, N.J. (AP) — Gov. Phil Murphy said Friday that "all options are on the table" as he reviews the $38.7 billion budget lawmakers sent him, but that he'll meet the state's constitutional requirement to enact a balanced budget. Whether the Democrat will sign the spending bill the Democrat-led Legislature sent him Thursday or use his line-item veto remained murky Friday. The governor hinted this week that he would take out the red pen the state constitution grants him to cut out spending. He cannot, though, add anything to the budget. He praised lawmakers for embracing most of the spending he sought in his own $38.6 billion proposal, but again chided them for failing to include his income tax hike on those making more than $1 million. "Within the next nine days, I will meet my constitutional responsibility to enact a balanced budget for New Jersey," he said at a news conference in his office building. Later at the same event, he reiterated his statement from earlier in the week that "all options are on the table." That likely means using the line-item veto. He told lawmakers in a letter this week that he would take "corrective" action if the budget they sent him didn't have the revenue — from the tax on millionaires — that he sought. The budget lawmakers sent Murphy has about $142 million in more spending, though the administration estimates the difference is even greater. Aside from not including the income tax hike, lawmakers also abandoned Murphy's other fee increases, including on gun permits, as well as a $150 surcharge for corporations with more than 50 workers who use state Medicaid services. On the spending side, lawmakers boosted the state subsidy for New Jersey Transit, as well as for a host of other programs. Murphy and his fellow Democrats, who control the Legislature, agreed on spending for schools and pensions, among other areas. It's the second straight year that Murphy is feuding with members of his own party over raising taxes on the wealthy, an issue he campaigned on and one polls have shown residents are mostly supportive of. Last year, lawmakers and Murphy averted a state government shutdown by agreeing to raise taxes on people making more than $5 million, as well as on corporations. The state constitution requires a balanced budget by June 30. |
ETF Of The Week: Tale Of 2 Bond Funds
All month, investors were busy rejiggering their portfolios in advance of Wednesday's meeting of the Federal Reserve. Market observers widely expected that, at the meeting, the Fed would leave its benchmark interest rate unchanged, while setting the scene for a possible rate cut in July (which is exactly what it did).
As a result, theiShares 1-3 Year Treasury Bond ETF (SHY)saw a staggering $2.2 billion of net outflows, while theiShares Short Treasury Bond ETF (SHV)has brought in new assets of $4.0 billion over the same time period:
Source: ETF.com; data as of June 19, 2019
Those were by far the biggest flows in and out of anybond ETFthis month. In fact, SHY's outflows have topped the list of ETF redemptions so far in June.
To SHV From SHY & Back Again
Though both SHV and SHY are short-term Treasury bond ETFs, the difference is in precisely how short term they really are. SHY holds Treasuries with 1-3 years left until maturity, while SHV holds Treasuries with less than 12 months remaining.
Flowswise, that time horizon has made all the difference. Investors who believe a rate cut is in the imminent future are more likely to shift their fixed income allocation toward shorter maturities.
Interest rates and bond prices are inversely related; meaning that when interest rates drop, bond prices tend to rise. That's because bonds issued after the rate cut will yield less than older ones, making them less attractive for investors seeking income.
That is why investors are moving their money toward the shorter-term SHV and away from SHY. It's an easy trade to make: Both funds are equally priced, with an expense ratio of 0.15%, and they both have massive liquidity, with tight spreads of 0.01% and over $250 million in volume traded daily each.
Future Rate Cuts Ahead
The Fed's decision on Wednesday largely met expectation. Though the agency held off on an interest rate cut at present and denied further cuts for the rest of the year, it suggested that one or two rate cuts might still happen sometime next year.
Given that time frame, it'll be interesting to see if investor money shifts out of SHV and back toward SHY, or if investors are willing to be as "patient" as the Fed claimed it plans to be.
Contact Lara Crigger atlcrigger@etf.com
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3 Stock Picks to Consider When the Fed Cuts Rates
Investors are almost unanimously convinced that there will be a federal funds interest rate cut in July. The Federal Reserve opted to keep the benchmark rate in a target range of 2.25%-2.5%, with a vote of 9-1. Comments made by Fed Chairman Jerome Powell and a tweak made to the central bank’s statement made traders increase bets on an upcoming rate cut. Powell stated during Wednesday’s address that the case for a more accommodative policy has strengthened, furthering the notion that policy makers are concerned about recent economic developments. The fed funds futures market is now signaling a 100% chance of a monetary easing policy next month.
The yield on the 10-year Treasury note, which is a benchmark for mortgage rates and corporate borrowing, fell below 2% in response to the Fed’s statements on Wednesday. According to a CNBC analysis, stocks in the energy and materials sector tend to increase in a declining rate environment, mostly due to the weakening dollar that results from the falling rates. The analysis also found that Disney DIS, Verizon VZ, and Home Depot HD have all historically performed well in low rate conditions.
Disney
According to the analysis, Disney is historically the best performing Dow stock under a low rate environment. The media giant rose 2.42% while the Dow only rose about 1% when the 10-year yield was between 2%-1.5%. The media conglomerate is currently listed as a Zacks Rank #3 (Hold). Disney has an earnings yield of 4.67% that can attract investors looking for a stock with solid returns relative to its price. Shares of DIS have been on a strong run lately; the stock’s 12-week price change is +22.26% relative to the S&P 500. Disney looks to maintain its recent 12-week success relative to its industry with the looming hope of a rate cut.
Verizon
The analysis defined stocks in the communications sector as big winners as well because of their high dividend yields that become more attractive when fixed income yields fall. It also identified Verizon as the second-best performing stock in the Dow when interest rates decline. Verizon is currently sitting at a Zacks Rank #3 (Hold) with a high dividend yield of 4.2%.
Verizon also has a Style Score of B in Value, and shares are currently trading at 12X its forward earnings. It also has an earnings yield of 8.28%, assuring investors they are paying for a stock that can produce positive returns. The company has seen some recent success; earnings last quarter increased over 7% compared to the previous quarter, while Verizon’s bottom line beat the Zacks Consensus Estimate by 2.56%. With its appealing dividend and positive recent earnings growth, demand could rise for VZ if a rate cut does happen soon.
Home Depot
When yields drop, mortgage rates follow suit, meaning more consumers are inclined to refinance. Just last week, refinancing jumped an astounding 47% week to week and 97% annually. When homeowners have lower monthly mortgage payments, it gives them more disposable income. Homeowners often choose to use this extra money to invest in their home in other ways. For instance, customer traffic in home improvement stores like Home Depot could see an increase, helping to boost the stock.
The Home Depot is a Zacks Rank #3 (Hold) with a Style Score of B in Growth. The home improvement company has recently seen a double-digit price increase within the last 12 weeks to go along with their year-to-date price increase of 22.95%. Zacks Consensus Estimates are currently projecting positive growth in earnings and revenues all the way through fiscal 2021 for the company. Home Depot has been able to consistently surpass our growth estimates and with a looming rate cut, it seems like the company may be able to keep that trend.
The Home Depot, Inc. price-eps-surprise | The Home Depot, Inc. Quote
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportThe Walt Disney Company (DIS) : Free Stock Analysis ReportVerizon Communications Inc. (VZ) : Free Stock Analysis ReportThe Home Depot, Inc. (HD) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
AP Interview: Albania PM says opposition ruining EU chances
TIRANA, Albania (AP) Albanian prime minister said Friday that the opposition's main goal is to disrupt the country's efforts to launch full membership negotiations with the European Union. Edi Rama, also leader of the ruling left-wing Socialist Party, also told The Associated Press in an interview Friday he was determined the June 30 municipal elections would be held despite opposition unrest since mid-February. "It's done to affect and to affect it negatively. It's done to show to Europe that this country isn't stable, that this country does not deserve to be taken seriously," he said, referring to the protests that have been violent. Rama was wearing a polo shirt, with "PS 30" on the front in a reference to his Socialist Party and the date of the municipal elections. Center-right opposition parties are boycotting the vote after months of demanding an early national election and accusing the government of vote-rigging and other wrongdoing. Thousands of opposition supporters gathered in in front of the prime minister's office holding U.S., EU and German flags and shouting "Rama go." Main opposition Democratic Party leader Lulzim Basha threatened to hold protests across the country to prevent the municipal elections from taking place. "Any attempt to provoke Albanians will fail shamefully and June 30 will be Edi Rama's political end," he said before leading supporters to the parliament building. No objects were thrown at police, the first time that happened since the start of the rallies in mid-February and apparently a consequence of intensive calls from the U.S., EU and other Western countries to stop the violence. President Ilir Meta is backing the protesters' cause and has been trying to cancel the elections, saying they would be "undemocratic" without the participation of the opposition. Albania's parliament has started the lengthy procedure to oust Meta for allegedly violating the constitution. Story continues Rama offered no solution other than "it's time to hear the people," adding he would resume calls for unconditional dialogue after the polls. EU countries postponed the start of membership talks with Albania and North Macedonia despite warnings a delay could undermine reform efforts and stability in the Balkans region. Rama said the opposition's arguments "don't stand," adding it has "a clear plan to disrupt the political process, the negotiations with the EU process." He said that opposition leaders fear that EU membership negotiations would open with a focus on the judiciary, including whether top officials should be indicted in corruption cases. "The country had to prove that this it is a place where the justice system has no problem to indict, to convict and to prevent criminal activity of anyone," Rama said. "The era of impunity will be over and that's the problem" for the opposition, he said. Opposition protests have turned violent with demonstrators hurling projectiles at police officers, who have responded with tear gas in some cases. In recent days, the opposition has tried to prevent the preparation of municipal elections in the districts they manage. The opposition runs 27 districts, while the governing Socialists are in control of 34. The United States, EU and other international institutions have called on the opposition to avoid violence and sit in talks. The opposition has planned its ninth national protest later Friday. ___ Follow Llazar Semini on Twitter: https://twitter.com/lsemini |
Innovative Industrial Properties Expands In Michigan, Signs Lease With Emerald Growth Partners
Innovative Industrial Properties Inc(NYSE:IIPR) announced Friday that it acquired a property in Michigan and entered into a long-term lease agreement with Emerald Growth Partners.
What Happened
The property in Harrison, Michigan comprises around 45,000 square feet of industrial space.
The value of the acquisition amounted to around $6.9 million excluding transaction costs, IIP said.
At the same time, Innovative Industrial Properties said it entered into a long-term triple-net lease agreement with an affilitate of Emerald Growth Partners, which itends to operate a medical cannabis cultivation and facility there.
Innovative Industrial Properties said it will reimburse Emerald Growth Partners for tenant improvements for the building in the amount of up to $3.1 million.
Need more cannabis news?Check out all of our coveragehere.
Why It's Important
At the beginning of April, Emerald Growth Partnerswas pre-qualifiedto enter the Michigan cannabis market and received licenses for cultivation, processing and retail operations.
The company received four class C cultivation licenses, one class A cultivation license and one processing facility license, as well as approval to open 12 retail locations across the state.
Michigan is one of the largest medical cannabis markets in the U.S., and last year the state legalized adult-use cannabis.
The legal cannabis market in Michigan is projected to reach $1.4 billion by 2022, according to ArcView Market Research.
Related Links:
Innovative Industrial Properties Expands Lease Agreement In Michigan With Green Peak Innovations
Cannabis REIT Innovative Industrial Properties Raises Dividend By 33%
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• Innovative Industrial Properties Expands Lease Agreement In Michigan With Green Peak Innovations
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© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
US STOCKS SNAPSHOT-Wall St edges down as U.S.-Iran tension counters trade hopes
June 21 (Reuters) - Wall Street closed slightly lower on Friday as U.S. Vice President Mike Pence's decision to defer a speech on China policy increased optimism on upcoming trade talks between Washington and Beijing, while tensions between the United States and Iran undercut sentiment.
The Dow Jones Industrial Average fell 33.97 points, or 0.13%, to 26,719.2, the S&P 500 lost 3.65 points, or 0.12%, to 2,950.53 and the Nasdaq Composite dropped 19.63 points, or 0.24%, to 8,031.71. (Reporting by Noel Randewich Editing by James Dalgleish) |
Kendrick Perkins calls Kristaps Porzingis 'a diva to the max'
If you’re looking for a major Kristaps Porzingis fan, Kendrick Perkins is not that guy. In a discussion about the New York Knicks on ESPN’s “The Jump” on Friday, the former NBA player revealed his true feelings about Porzingis, who was traded from the Knicks to the Dallas Mavericks in January. Perkins’ comments begin at the 1:10 mark in the video below. The Knicks have the most cap room of any team this summer - but will they land the top free agents who'd fill it? Did they really need to trade Kristaps Porzingis to open up that second slot? @KendrickPerkins says even if a second guy doesn't come, he's happy the Knicks dealt KP. pic.twitter.com/Tj2kaGYbSc — Rachel Nichols (@Rachel__Nichols) June 21, 2019 “I’ve just never been high on a big man that’s a diva, and I feel like he’s a diva to the max. I could name 20 players that I’d take over Porzingis right now in this league. … I think they made the right decision. They got him up out of there, with all the off-court issues.” Don’t hold back, Kendrick, tell us how you really feel. That’s a lot of feelings about Porzingis, who didn’t play a single minute during the 2018-2019 season as he recovered from a torn ACL. And it’s not totally clear how Perkins came to the conclusion that Porzingis is a “diva.” Perkins mentioned off-the-court issues with Porzingis, which have been present. Porzingis has been accused of raping a woman in February 2018, which is still being investigated by police. He was also recently involved in an altercation outside a Latvian nightclub, but the Mavericks concluded Porzingis was not at fault. Drama tends to follow Kristaps Porzingis, and Kendrick Perkins says that's why the Knicks made the right decision to trade him. (Photo by Abbie Parr/Getty Images) Of course, there was also drama surrounding his trade from the Knicks to the Mavericks. According to ESPN, Porzingis and his agent (who is also his brother) met with the Knicks’ top brass to voice their displeasure with the team’s commitment to winning and building sustainable success, as well as with how badly the season had been going. (They were 10-40 at the time.) According to Knicks GM Scott Perry and president Steve Mills, Porzingis demanded that the Knicks trade him within seven days or he’d go back to Europe. Story continues “Diva” is a strong word to use, but it’s hard to deny the drama that’s surrounded Porzingis in the past season. Since he hasn’t been able to play, it remains to be seen if the Knicks will be better off without him, and if the Mavericks will be better with him — and if he’ll be worth the drama. 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 |
Read This Before Your Next Trade
The market is off to its best start in over 30 years! And what a start it’s been.
Already, the Dow is up 15.3%, the S&P is up 17.7% after breaking out to new all-time highs, and the Nasdaq is up 21.2%.
A strong economy, record jobs market, an accommodative Fed that pledged to “act as appropriate” (cut rates) “to sustain the expansion”, and growing optimism that a U.S.-China trade deal will finally happen at next week’s G20 summit, has sent stocks soaring.
And it looks like there’s a lot more upside to go.
But, like any year, there are always some headwinds out there.
So whether you’re bullish on the market, or a bit wary, it’s now more important than ever to make sure you’re doing everything you can to get the most out of your trades.
Regardless of which camp you put yourself in, there will be distinct winners and losers as we move forward. So before you make your next trade, please read this first to learn how to put the probabilities of success on your side.
Knowledge Is Power
We’ve all heard the old adage; knowledge is power.
It’s a great saying because it’s true.
And that saying couldn’t be truer than when it comes to investing.
Take a look at your last big loser for example. After analyzing what went wrong, you soon discover some piece of information that -- ‘had you known beforehand, you never would have gotten into it in the first place’.
I’m not talking about things that are unknowable, like inside information or surprise announcements that can catch even the most professional of professionals off guard.
I’m talking about things that you could have known about or SHOULD have known about before you got in.
Did You Know?...
• Did you know that roughly half of a stock's price movement can be attributed to the group that it’s in?
• Did you also know that oftentimes a mediocre stock in a top performing group will outperform a ‘great’ stock in a poor performing group?
• And did you know that the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1?
• And did you also know that the top 10% of industries outperformed the most?
More . . .
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Was your last loser in one of the top industries or in one of the bottom industries?
If it was in one of the bottom industries, you should have known to not take a chance on something with a reduced probability of success.
That’s what is meant by ‘knowledge is power’. Knowable things that you need to know.
That’s not to say that stocks in crummy industries won’t go up -- they do. And that’s not to say that stocks in good industries won’t go down -- because they do too.
But more stocks go up in the top industries, and more stocks go down in the bottom industries.
And since there are over 10,000 stocks out there to pick and choose from, why settle for one with a reduced chance of making any money?
Did You Know?...
• Did you know that stocks with ‘just’ double-digit growth rates typically outperform stocks with triple-digit growth rates?
• Did you also know that stocks with crazy high growth rates test nearly as poorly as those with the lowest growth rates?
Did your last loser have a spectacular growth rate?
If so, and it got crushed, would you have picked it if you knew that stocks with the highest growth rates have spotty track records?
It seems logical to think that the companies with the highest growth rates would do the best. But it doesn’t always turn out to be the case.
One explanation for this is that sky high growth rates are unsustainable. And the moment a more normal (albeit still good) growth rate emerges, the stock gets a dose of reality as well.
For example, a company earning 1 cent a share that is now expected to earn 6 cents, has a 500% growth rate. But, if it receives a downward estimate revision to 5 cents, that’s a significant drop. Even though it still has a 400% growth rate, the estimates were just reduced by -16.7% and the price is likely to follow.
If you’ve ever wondered how a stock with a triple-digit growth rate could possibly go down -- that’s how.
Instead, I have found that comparing a stock to the median growth rate for its industry is the best way to find solid outperformers with a lesser chance to disappoint.
Did You Know?...
• Did you know that stocks receiving broker rating upgrades have historically outperformed those with no rating change by more than 1.5 times? And did you know they outperformed stocks receiving downgrades by more than 10 x as much? The next time one of your stocks is upgraded or downgraded, be sure to remember these statistics so you know how the odds stack up and whether they’re for you or against you.
• Did you know that stocks with a Price to Sales ratio of less than 1 have produced significantly superior results over companies with a Price to Sales ratio greater than 1? And did you know that those with a Price to Sales ratio of greater than 4 have typically shown to lose money? That doesn’t mean that all stocks with a P/S ratio of less than one will go up and those over four will go down, but you can greatly increase your odds of success by following these valuations.
• Did you know that the Zacks Rank is one of the best rating systems out there? And did you know that since 1988, the Zacks Rank #1 Strong Buy stocks have beaten the market in 26 of the last 31 years, with an average annual return of 24.6% per year? That’s nearly 2.5 x the returns of the S&P with an 83% annual win ratio.
• Did you know that two simple filters added to the Zacks Rank #1 stocks significantly increases its returns? What if you did? We have a screen that utilizes these two additional items. Over the last 19 years (2000 thru 2018), it’s produced an average annual return of 54.3% per year, while only holding five stocks in its portfolio at a time. And it handily beat the market again last year. That screen is aptly called the Filtered Zacks Rank 5 screen.
Do you know how well your stock picking strategies have performed?
Whether good or bad – do you know why?
Do you know if your favorite item to look for is helping you or hurting you?
Beat The Market On Your Next Trade
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Thanks and good trading,
Kevin
Zacks EVP Kevin Matras is our chart patterns and stock screening expert. He also developed many of Zacks' most powerful market-beating strategies that come with theResearch Wizard.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportTo read this article on Zacks.com click here.Zacks Investment Research |
Markets Right Now: Weeklong stock market rally fizzles out
NEW YORK (AP) — The latest on developments in financial markets (all times local):
4 p.m.
Stocks ended a wobbly day slightly lower on Wall Street as a weeklong rally fizzled out.
The modest losses Friday came a day after the S&P 500 set a record closing high. On Friday the Dow Jones Industrial Average also briefly traded above the all-time closing high it reached in October.
Technology and industrial companies led the way lower. PayPal lost 2.2% and FedEx gave up 1.5%.
The price of oil continued to climb and rose more than 9% for the week as tensions between the U.S. and Iran increase.
The S&P 500 fell 3 points, or 0.1%, to 2,950. It's up 7.2% so far in June.
The Dow Jones Industrial Average lost 34 points, or 0.1%, to 26,719. The Nasdaq dipped 19 points, or 0.2%, to 8,031.
___
11:45 a.m.
A weeklong rally on the stock market is fizzling out as major U.S. indexes wobble between small gains and losses.
A day earlier, the S&P 500 index reached a record closing high. The Dow Jones Industrial Average was edging closer to its own all-time high Friday.
Banks climbed as long-term bond yields rose, which makes it easier for banks to charge higher interest rates on mortgages and other kind of loans.
Wells Fargo and Citigroup each rose 1%
The price of oil continued to climb and was up more than 9% for the week.
The S&P 500 rose 1 point to 2,955. It's up 7.4% so far in June.
The Dow Jones Industrial Average rose 68 points, or 0.2%, to 26,821. The Nasdaq dipped 9 points, or 0.6%, to 8,042.
___
9:35 a.m.
The stock market is taking a breather Friday, a day after the S&P 500 index rose to a record high.
The commodities and bond markets are also tame compared with Thursday, when oil jumped more than 5% and the yield on the 10-year Treasury note fell below 2% for the first time since 2016.
The markets have been reacting to signs the Federal Reserve is willing to cut interest rates if the U.S. economy slumps and heightened tensions between the U.S. and Iran.
The S&P 500 slipped 4 points, or 0.1 percent, to 2,950.
The Dow Jones industrials fell 10 points to 26,742. The Nasdaq dipped 26 points, or 0.3%, to 8,025.
Bond prices fell. The yield on the 10-year Treasury rose to 2.04%. Oil rose slightly. |
Why You Should Skip Target-Date Funds in Your Portfolio
While there's no such thing as a perfect retirement investment , some experts might argue that target funds come close. These funds take the guesswork out of rebalancing by automatically adjusting asset allocation based on a timeline specified by the investor. "Target-date funds have become popular because they offer an all in one solution," says Denny Baish, a senior investment analyst and portfolio manager at Fort Pitt Capital Group in Pittsburgh. Target-retirement funds can offer streamlined diversification and often appeal to those who are comfortable with a hands-off approach. Baish says these funds are common in retirement plans for participants who don't want to bother, don't have the time or simply don't know how to build out a proper allocation. But these types of funds are not without certain flaws. For some investors, a retirement strategy that's free of target-date funds could make more sense. Here are four reasons to rethink adding funds with a target date to a portfolio as part of your investment strategy: -- Control is limited. -- There's little room for personalization. -- Underinvestment is a hidden risk. -- The costs can be deceptive. You Have Limited Control Target-date funds leave very little for an investor to do in managing their portfolio , which may not be a good thing. [ See: 8 Simple Rules for Investing in Retirement. ] Baish says these funds take control of asset allocation, fund manager selection and strategic decision-making out of investors' hands. "Basically, the investor can't make any changes," he says. "That decision is now up to the target-date fund's managers and fund company." That can be a problem if the underlying investments within the fund are of unequal quality. While there may be some winners in the bunch, there could also be a mix of mediocre or under-performing investments that detract from performance. There's not much an investor can do about it, however, other than selling the fund altogether. Story continues Baish says researching individual funds and building a customized asset allocation is the best option. This way, the investor retains control when it comes to the quality of funds included, the weighting of stocks, bonds and cash and the frequency of rebalancing. There Is Little Room for Personalization Employer-sponsored retirement plans may use target-date funds as the default investment option, but these funds shouldn't be accepted at face value. Michael Finke, professor of wealth management at The American College of Financial Services, offers an analogy for understanding how target-date funds compare with other investments. "Think of them as a generic commodity like white flour," Finke says. "White flour is fine for most people, but many would like whole wheat or almond flour more and some are gluten-intolerant. A target-date fund gives all workers with the same retirement date the same asset allocation, even though some obviously will be more risk tolerant than others." For instance, if a pension plan is offered alongside a 401(k ) or similar workplace plan, Finke argues that those workers may be able to take more risk with their investments. At the same time, he says plan sponsors may favor riskier target funds. Workers who are placed in these plans by default may not understand how much risk they're taking or how that aligns with their risk tolerance. [ See: 10 Ways to Maximize Your Retirement Investments. ] Finke says investors who are comfortable choosing investments and want a more customized approach should consider index funds. Tax-inefficient investments, such as bonds or a real estate investment trust, known as REITs , can be added to tax-advantaged accounts while exchange-traded funds, or ETFs, may have to be placed in a taxable brokerage account. "This will provide a higher overall after-tax return rather than simply investing in balanced funds in both types of accounts," Finke says. There Are Hidden Risks It's a misconception to think of target funds as the safest retirement investments; even the best target-date funds are not completely risk-free. One of the biggest risks to be mindful of is underinvestment, says Troy Dryer, vice president of business development at IPX, a company owned by FPS Group. That risk stems from the fact that target-date funds don't all follow the same rules for establishing asset allocation . Some funds use retirement age as a guide in determining a withdrawal date while others project life expectancy. It a subtle difference but one that can't be overlooked. "If your target-date funds only invest to retirement and not through retirement, you may be underinvested," Dryer says. Longer life expectancy means a longer window in which a portfolio must be able to sustain an investor's income needs. Dryer says actively managed mutual funds and ETFs should be considered for balancing risk and diversification when looking at retirement funds. Money managers are equipped to manage assets in a changing market while target-date funds lack the capacity to react to economic or political changes. The Costs Are Deceptive Some people may lean toward target-date funds based on the assumption that these funds are a cost-efficient way to invest. But that can be misleading. "It's very difficult to really understand what the costs are within a target-date fund," says Guy Baker, founder of Wealth Teams Alliance in Irvine, California. This is because target funds may include several asset classes and the published cost is a composite of those internal fund expenses, Baker says. The average investor may not be able to easily evaluate the turnover or the asset class expenses following that structure. Baker says managed accounts can offer more transparency because there's typically a stated cost to the investor. [ See: Stop Believing These 7 Investing Myths. ] Whether it makes sense to stick with target-date funds or not ultimately depends on someone's personal preference. Experts acknowledge that they can be a good fit for some investors such as when someone is new to investing and only has a smaller amount of money to start their investment portfolio. Understanding the fund's composition, how often rebalancing occurs, risk exposure and fees are critical to making an informed decision about to use them for retirement. "While target-date funds might be easier, it doesn't necessarily mean they are a fit for every investor and their retirement plan," Baish says. "Education is key, so be sure to ask your advisor any questions you might have." More From US News & World Report 8 Simple Rules for Investing in Retirement 8 Best Mutual Funds for Retirement 7 Best Bond Funds for Retirement |
US Stock Market Overview – Stocks Slip, but Settle Up Strong for the Week
US stocks slipped Friday, and had a difficult time moving higher after experiencing upward momentum for most of the week. The large cap S&P 500 index closed at an all time high multiple times during the week and closed at a weekly all time high up more than 2.3% for the week. Oil prices continued to move higher as Trump announced that he was about to declare an attack on Iraq for retaliation for the destruction of an unmanned drone.
The US Commerce Department has banned five more Chinese entities from buying US components after blacklisting telecom giant Huawei last month. Sectors were mixed. Energy and Healthcare were the best performers in the S&P 500, Industrials and Technology were the worst.
President Trump ordered a military strike on Iran but changed his mind when he was told that there could be as many as 150-deaths with this retaliation. The Iranian shot down an unmanned drone over the Strait of Hormuz. Reports suggest Trump warned Iran that an attack was imminent and called for talks, giving Iran a short period of time to respond. The 10-year traded below 2% for the first time yesterday since November 2016. The interest rates reduction is now priced in by mid-January 202 and a 4th by January 2021.
The US Commerce Department banned an additional five Chinese entities from buying components after blacklisting telecom giant Huawei last month. Higon, Chengdu Haiguang Integrated Circuit, Chengdu Haiguang Microelectronics Technology, Sugon and Wuxi Jiangnan Institute of Computing Technology are the names of the companies. The commerce department said that these companies’ activities pose a srisk of being involved in activities contrary to the national security and foreign policy interests of the United States. Shares of semis sold off on the news. The commerce department announcement came before President Donald Trump’s key meeting with Chinese leader Xi Jinping at the G-20 summit this month to discuss the lingering trade differences.
Refinery stocks surged on Friday as gasoline prices at the pump could rise for East Coast drivers after a massive explosion Friday affected operations at a Philadelphia refining complex responsible for as much as 27% of the region’s fuel production. This refining outage couldn’t come at a worse time for consumers, given the backdrop of the tensions with Iran and a time of the year when individuals usually travel. The summer driving season kicked off on Memorial Day. The explosion occurred just as US gasoline demand hit an all-time high last week. The pressure on gasoline prices also comes at a volatile time for oil prices, up more than 9% this week, after plummeting about 20% this spring.
Thisarticlewas originally posted on FX Empire
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Imagine Owning IVE Group (ASX:IGL) And Wondering If The 11% Share Price Slide Is Justified
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The simplest way to benefit from a rising market is to buy an index fund. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. Investors inIVE Group Limited(ASX:IGL) have tasted that bitter downside in the last year, as the share price dropped 11%. That's disappointing when you consider the market returned 12%. At least the damage isn't so bad if you look at the last three years, since the stock is down 7.3% in that time. Unhappily, the share price slid 1.9% in the last week.
See our latest analysis for IVE Group
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
Unhappily, IVE Group had to report a 1.5% decline in EPS over the last year. This reduction in EPS is not as bad as the 11% share price fall. So it seems the market was too confident about the business, a year ago. The P/E ratio of 10.66 also points to the negative market sentiment.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Before buying or selling a stock, we always recommend a close examination ofhistoric growth trends, available here..
It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for IVE Group the TSR over the last year was -3.9%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!
IVE Group shareholders are down 3.9% for the year (even including dividends), but the broader market is up 12%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Fortunately the longer term story is brighter, with total returns averaging about 4.7% per year over three years. The recent sell-off could be an opportunity if the business remains sound, so it may be worth checking the fundamental data for signs of a long-term growth trend. 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.
IVE Group 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 AU exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
EMERGING MARKETS-Brazil and Argentine currencies rise in catch-up rally
(Updates prices) By Susan Mathew June 21 (Reuters) - While worries over tensions between U.S. and Iran kept some Latin American assets pressured on Friday, Brazil's stocks scaled a record high and its currency firmed in a catch-up rally, while Argentina's peso hit a two-month high. Sentiment globally took a hit after U.S. President Donald Trump called off a military attack on Iran at the last minute. The attack was meant to be in retaliation to the downing of an unmanned U.S. drone on Thursday. Stocks in Mexico, Chile and Colombia slipped between 0.1% and 0.6%. Among currencies, Mexico's peso slipped 0.5%, falling for the first time in four days, while Chile's currency was flat against a weaker dollar. The Mexican peso is set to log a rise of 0.3% over the week. Colombia's peso slipped 0.4% after three days of gains. Colombia's central bank on Friday kept the benchmark rate unchanged at 4.25%, as expected, in a bid to boost the economy ahead of what it said would be a temporary rise in inflation. HOLIDAY CATCH-UP Returning from a holiday on Thursday, Brazil stocks soared 1.71% to an all-time high and the real touched a three month peak, up 0.5%, as they caught up with the Fed-fueled rally that had boosted broader markets a day earlier. However, shares of airline Gol Linhas Aereas and its loyalty program Smiles Fidelidade dipped more than 2% each. Smiles on Friday said Gol would adjust standard ticket and air miles pricing. Earlier this week, Gol had failed to reach a deal to buyout Smiles. The real was set to post a weekly gain of about 2%, while the Bovespa was set for a 4% gain over the week. Also returning from a holiday, in Argentina the peso rose 1.3% and the Merval stock index climbed 1.4%. Argentina's Treasury said on Friday that the country posted its biggest monthly primary fiscal surplus in eight years in May, from a deficit of 7.8 billion pesos a year ago. In the coming week, investors will be keenly watching for the outcome of a meeting between the presidents of the United States and China to discuss trade on the sidelines of the G20 summit in Japan. "Our base case is that the G20 meeting between Presidents Xi and Trump will bring a constructive result, opening the door to a resumption of formal trade negotiations. However, we believe much optimism is already priced in," analysts at TD Securities said in a note. Key Latin American stock indexes and currencies at 1948 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1,054.44 0.06 MSCI LatAm 2,875.88 1.29 Brazil Bovespa 102,019.95 1.71 Mexico IPC 43,424.48 -0.51 Chile IPSA 5,056.40 -0.09 Argentina MerVal 40,418.82 1.4 Colombia IGBC 12,556.92 -0.56 Currencies Latest Daily % change Brazil real 3.8167 0.86 Mexico peso 19.1120 -0.61 Chile peso 683.7 -0.04 Colombia peso 3,197.43 -0.29 Peru sol 3.3 0.30 Argentina peso 42.7900 1.40 (interbank) (Reporting by Susan Mathew in Bengaluru; Editing by Rosalba O'Brien) |
CLASS ACTION UPDATE for LYFT, JMIA and CBL: Levi & Korsinsky, LLP Reminds Investors of Class Actions on Behalf of Shareholders
NEW YORK, NY / ACCESSWIRE / June 21, 2019 / Levi & Korsinsky, LLP announces that class action lawsuits have commenced on behalf of shareholders of the following publicly-traded companies. Shareholders interested in serving as lead plaintiff have until the deadlines listed to petition the court and further details about the cases can be found at the links provided. Lyft, Inc. ( LYFT ) Class Period : pursuant or traceable to the Company's Offering and Registration Statement issued in relation to the March 28, 2019 IPO Lead Plaintiff Deadline : July 16, 2019 Join the action: https://www.zlk.com/pslra-1/lyft-inc-loss-form?prid=2029&wire=1 According to the lawsuit, Lyft's Offering materials issued in connection with its IPO failed to disclose that: (1) Lyft's claimed ridesharing position was overstated; (2) more than 1,000 of the bicycles in Lyft's rideshare program suffered from safety issues that would lead to their recall; (3) Lyft's drivers were becoming disincentivized from driving for Lyft; (4) Lyft failed to warn investors that a labor disruption could affect its operations; and (5) as a result, Lyft's public statements were materially false and misleading at all relevant times. To learn more about the Lyft, Inc. class action contact jlevi@levikorsinsky.com . Jumia Technologies AG ( JMIA ) Class Period : Purchasers of American Depositary Shares between April 12, 2019 and May 9, 2019 Lead Plaintiff Deadline : July 15, 2019 Join the action: https://www.zlk.com/pslra-1/jumia-technologies-ag-loss-form?prid=2029&wire=1 The lawsuit alleges: Jumia Technologies AG made materially false and/or misleading statements throughout the class period and/or failed to disclose that: (a) Jumia had materially overstated its active customers and active merchants; (b) Jumia's representations about its orders, order cancellations, undelivered orders and returned orders lacked a sufficient factual basis and materially overstated the Company's sales; (c) Jumia failed to sufficiently disclose related party transactions; and (d) Jumia's financial statements were presented in violation of applicable accounting standards. Story continues To learn more about the Jumia Technologies AG class action contact jlevi@levikorsinsky.com . CBL & Associates Properties, Inc ( CBL ) Class Period : November 8, 2017 - March 26, 2019 Lead Plaintiff Deadline : July 16, 2019 Join the action: https://www.zlk.com/pslra-1/cbl-associates-properties-inc-loss-form?prid=2029&wire=1 The lawsuit alleges: CBL & Associates Properties, Inc made materially false and/or misleading statements and/or failed to disclose that: the Company was the target of a class action suit that could result in tens of millions or even hundreds of millions of dollars in liability. The Complaint further alleges that Defendants completely ignored their disclosure obligation, motivated by a desire to avoid bad publicity surrounding their dishonest nature and their dishonest conduct. When the truth was revealed, CBL shares materially declined in price, injuring the class. To learn more about the CBL & Associates Properties, Inc class action contact jlevi@levikorsinsky.com . You have until the lead plaintiff deadlines to request the court appoint as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff. Levi & Korsinsky is a national firm with offices in New York, California, Connecticut, and Washington D.C. The firm's attorneys have extensive expertise and experience representing investors in securities litigation, and have recovered hundreds of millions of dollars for aggrieved shareholders. Attorney advertising. Prior results do not guarantee similar outcomes. CONTACT: Levi & Korsinsky, LLP Joseph E. Levi, Esq. 55 Broadway, 10th Floor New York, NY 10006 jlevi@levikorsinsky.com Tel: (212) 363-7500 Fax: (212) 363-7171 www.zlk.com SOURCE: Levi & Korsinsky, LLP View source version on accesswire.com: https://www.accesswire.com/549522/CLASS-ACTION-UPDATE-for-LYFT-JMIA-and-CBL-Levi-Korsinsky-LLP-Reminds-Investors-of-Class-Actions-on-Behalf-of-Shareholders |
ASAP Rocky, ASAP Ferg, Tyga, and YG appear on Mustard’s new song “On GOD”: Stream
ASAP Rocky and ASAP Ferg have connected for the second time in as many months. Following “Pups” from May, the two leading ASAP Mob members are back at it again for new song “On GOD”. Helmed by producer Mustard and also featuring contributions from Tyga and YG , the track is fastened with serious, dramatic strings. All four rappers mean business, too, as they turn one barking, no-nonsense bar after another. (Read: The 10 Hottest European Music Festivals ) Hear it down below. [youtube https://www.youtube.com/watch?v=5LfzYp2uHY8?version=3&rel=1&fs=1&autohide=2&showsearch=0&showinfo=1&iv_load_policy=1&wmode=transparent&w=806&h=454] “On GOD” is taken from Mustard’s upcoming album, Perfect Ten , due out June 28th. The full-length also includes “100 Bands” featuring Quavo and “Pure Water” featuring Migos. Mustard will hit the road soon opening for Future and Meek Mill’s co-headlining “Legendary Nights Tour” , and tickets can be purchased here . ASAP Ferg’s Still Striving mixtape dropped back in 2017, while ASAP Rocky’s impressive Testing album hit shelves last year. //imasdk.googleapis.com/js/sdkloader/ima3.js //plugins.consequencemedia.com/comscore/comScore-JS-6.3.1.181004.min.js //plugins.consequencemedia.com/wasp-video-player/wasp.videoplayer.min.js waspVideoPlayer({ bidUnit: { code: 'video1', mediaTypes: { video: { playerSize: [640, 480], context: 'instream', mimes: ['video/mp4'] } }, bids: [{ bidder: 'appnexus', params: { placementId: 14369254, //placementId: 13232361, video: { skippable: true, playback_method: ['auto_play_sound_off'] } } }] }, playlist: [{"id":"tourstopmeekmill2cdreamtheater2cpaparoach-1554499114982","name":"Tour Stop: Meek Mill, Dream Theater, Papa Roach","artist":"Meek Mill, Dream Theater, Papa Roach","genre":"Music, Hip-Hop, Rap, Hip Hop","title":"Tour Stop: Meek Mill, Dream Theater, Papa Roach","tags":"@Meek Mill, Dream Theater, Papa Roach, Hip-Hop, Rap, Heavy, Setlist, Setlist.fm, Tour","poster":"https:\/\/lnthumbnails.consequenceofsound.net\/tourstopmeekmill2cdreamtheater2cpaparoach-1554499114982\/thumb_00002.png","thumbnail":"https:\/\/lnthumbnails.consequenceofsound.net\/tourstopmeekmill2cdreamtheater2cpaparoach-1554499114982\/thumb_00002.png","src":"https:\/\/lnvideos.consequenceofsound.net\/tourstopmeekmill2cdreamtheater2cpaparoach-1554499114982\/playlist.m3u8","type":"application\/x-mpegURL","target":"lnVideos","publisher":"Consequence of Sound"},{"id":"childishgambinoevergreenfinal-1525219793065","name":"Childish Gambino's Top 5 Songs","artist":"Childish Gambino","genre":"Music, Rap, Hip Hop, Hip-Hop","title":"Childish Gambino's Top 5 Songs","tags":"@Childish Gambino, Donald Glover, Rap, Hip-Hop, hip hop, best rappers, best rap, rap music, top, hip-hop music, top songs, top music","poster":"https:\/\/thumbnails.consequenceofsound.net\/childishgambinoevergreenfinal-1525219793065\/thumb_00002.png","thumbnail":"https:\/\/thumbnails.consequenceofsound.net\/childishgambinoevergreenfinal-1525219793065\/thumb_00002.png","src":"https:\/\/videos.consequenceofsound.net\/childishgambinoevergreenfinal-1525219793065\/playlist.m3u8","type":"application\/x-mpegURL","target":"COSVideos","publisher":"Consequence of Sound"},{"id":"drakefoodreferences-1519096448373","name":"Food References in Drake's Music","artist":"Drake","genre":"Music, Rap, Hip Hop, Hip-Hop","title":"Food References in Drake's Music","tags":"@Drake, Rap, Hip-Hop, hip hop, best rappers, best rap, rap music, top, hip-hop music","poster":"https:\/\/thumbnails.consequenceofsound.net\/drakefoodreferences-1519096448373\/thumb_00001.png","thumbnail":"https:\/\/thumbnails.consequenceofsound.net\/drakefoodreferences-1519096448373\/thumb_00001.png","src":"https:\/\/videos.consequenceofsound.net\/drakefoodreferences-1519096448373\/playlist.m3u8","type":"application\/x-mpegURL","target":"COSVideos","publisher":"Consequence of Sound"},{"id":"thecomeupclosedsessions-1525884253703","name":"The Come Up: Closed Sessions","artist":"The Come Up","genre":"Music, Rap, Hip Hop, Hip-Hop","title":" The Come Up: Closed Sessions","tags":"@hip-hop, rap, The Come Up","poster":"https:\/\/thumbnails.consequenceofsound.net\/thecomeupclosedsessions-1525884253703\/thumb_00002.png","thumbnail":"https:\/\/thumbnails.consequenceofsound.net\/thecomeupclosedsessions-1525884253703\/thumb_00002.png","src":"https:\/\/videos.consequenceofsound.net\/thecomeupclosedsessions-1525884253703\/playlist.m3u8","type":"application\/x-mpegURL","target":"COSVideos","publisher":"Consequence of Sound"},{"id":"khalidannouncesfreespiritsummertour-1554499158103","name":"Khalid Announces Free Spirit Summer Tour","artist":"Khalid","genre":"Music, Hip-Hop, Rap, Hip Hop","title":"Khalid Announces Free Spirit Summer Tour","tags":"@Khald, Hip-Hop, Rap, Hip-Hop Music, Setlist, Setlist.fm, Tour","poster":"https:\/\/lnthumbnails.consequenceofsound.net\/khalidannouncesfreespiritsummertour-1554499158103\/thumb_00004.png","thumbnail":"https:\/\/lnthumbnails.consequenceofsound.net\/khalidannouncesfreespiritsummertour-1554499158103\/thumb_00004.png","src":"https:\/\/lnvideos.consequenceofsound.net\/khalidannouncesfreespiritsummertour-1554499158103\/playlist.m3u8","type":"application\/x-mpegURL","target":"lnVideos","publisher":"Consequence of Sound"}], showPlaylist: true, autoPlay: true, sticky: false, stickyParentId: 'sidebar', stickyTopOffset: 60, containerId: "video_4350", adUnit: '/134312942/COS_VIDEO_PREBID', targeting: [], appnexusAccountId: '', comscorePublisherId: 21854097, shareUrlPrefix: window.location.protocol + '//' + window.location.hostname + '/videoembed?video-id=' }); ASAP Rocky, ASAP Ferg, Tyga, and YG appear on Mustard’s new song “On GOD”: Stream Lake Schatz |
Wix CEO: 'Pretty Good Chance' Of Growing To $10B In Annual Collections
Cloud-based website development platform companyWix.Com Ltd(NASDAQ:WIX) ended the first quarter with more than 150 million customers, but the company has plenty of room to expand within the "enormous" market, company CEO Avishai Abrahamitold CNBC's Jim Cramer.
What Happened
Wix serves small-to-medium sized businesses across the world, which implies a "pretty good chance" of growing from $1 billion in annual collections to $10 billion, the CEO said during Cramer's "Mad Money" show.
Wix has one major trend working in its favor, he said: the need for businesses to manage their own websites continues to grow.
Why It's Important
Wix's services do not end with helping businesses create websites; it offers management solutions and marketing tools to grow with, the CEO said.
For example, Wix can act as an intermediary with a group of freelance experts with knowledge in online marketing, art and other valuable skills.
What's Next
Wix announced a new feature, Corvid, that links with external data sources to collect, store and manage content.
Pricing for the feature has yet to be announced, as it is still in the late beta stage, but it is expected to be fully released in the next six months.
Wix shares were down 0.62% at $148.11 at the close Friday.
Related Links:
Wix Reports Q1 Results: 4 Sell-Side Takes
KeyBanc Takes Neutral Stance On Wix
See more from Benzinga
• KeyBanc Takes Neutral Stance On Wix
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
FEMA's presidential alerts are an easy target for spoofing attacks
Last fall, FEMA conducted thefirst nationwide testof its Wireless Emergency Alert (WEA) system when it beamed a "presidential alert" to all capable phones in the US. WEA has long been used to send alerts about missing children, natural disasters and other dangerous events. But a few years ago, the FCCvoted to expand WEAso that, among other changes, government officials could write longer messages. Now, researchers from the University of Colorado Boulder warn that WEA's presidential alerts can be easily spoofed.
Intheir paper, the researchers developed and tested a spoofing attack on presidential alerts. They used commercially available hardware and modified open-source software to send messages to nearly every phone in a 50,000-seat stadium with a 90 percent success rate. The vulnerability is due to the fact that WEA alerts use LTE. Alerts are sent on a specific channel to every compatible device in range, and there's no way for the device to verify the authenticity of the alert. Presidential alerts are especially risky because users can't opt out of them, as they can with AMBER alerts or weather warnings.
"Fake alerts in crowded cities or stadiums could potentially result in cascades of panic," the researchers wrote. We got a glimpse of just how disruptive fake alerts can be last year, when afalse alertmistakenly warnedevery cellphone in Hawaii that a nuclear missile was on its way. The panic would be more widespread if an alert were sent out nationwide. The paper warns that fixing the problem will require "a largecollaborative effortbetween carriers, government stakeholders, and cell phone manufacturers." Given the US government's relationship with some cell phone manufacturersin particular, that seems like a big ask. |
Marcus Hiles: Populations are Turning to Rental Alternatives Across the Nation
DALLAS, TX / ACCESSWIRE / June 21, 2019 /According to a new report, rental rates across the nation are on the rise and the main driver centers around the home market. With younger demographics the primary group of today's potential home buyers, studies show there is a dip in the home ownership rate for these generations when compared to their predecessors. Many economic factors have contributed to this, including the fluctuations and current climate of the housing industry as the main issue.
Larger and more consistent increases have been seen in the market over the last decade that when compared to historical data from the early 2000's has had a faster and more substantial growth rate. These increases in home values have grown a staggering 70% nationally when comparing the median price of homes in the current market against those in the 2008 recession lows. Today's home prices have now put many potential buyers in a position unable to make the financial commitment and has made a larger group of the population look to rental alternatives.
"The rental market has been a solution for a growing population of residents in Texas and in the nation, who may seek home ownership but cannot afford it. Because of this trend, more rental properties are being developed across the state to keep up with the demand." shares Texas-based property developer and CEO of Western Rim PropertiesMarcus Hiles.
Though it is getting even harder for developers to keep up with the growing demand. Reports from April 2019 show that rents rose by 3% year over year nationally with key locations pushing the rise. Those locations include Texas' popular metro areas including Houston, Austin and Dallas. Among the fastest growing in rental rates was Austin with a 3.5% annual increase that was followed by the DFW area at 2.5%. Despite these increases in rental rates, residents are still looking for housing alternatives. Studies show that even though the market is starting to balance out, home prices remain high in some of the nation's top metro areas including popular Texas cities.
As the home market continues to grow in value the younger generations that are the majority of potential buyers are choosing rental options. Reports show that 65% of households run by those under the age of 35 rent which is up nearly 10% from a decade ago. "As the housing market is not seeing relief in certain areas in Texas, rental properties are growing to supplement the need. Despite increases in rent that some locations may be experiencing, the state continues to attract new residents each year as it remains home to some of the most affordable living options available." shares Marcus Hiles who has established several rental properties across the midwest state throughout his 30-year career.
The housing market is expected to level soon but there is no telling how each area with be impacted and when. Until the changes occur, property developers and potential home buyers are having to adapt with new alternatives and the solution points to rental properties in the short term.
To learn more about business and development news visitmarcushiles-news.com.
YouTube:https://www.youtube.com/channel/UCwrLIhyaB0p_0F1gWg4R7cA/videosHouzz:https://www.houzz.com/pro/marcushiles/marcus-hilesInstagram:https://www.instagram.com/marcus.hiles/
CONTACT:
Marcus Hiles,media@marcushiles.net
SOURCE:Marcus Hiles
View source version on accesswire.com:https://www.accesswire.com/549519/Marcus-Hiles-Populations-are-Turning-to-Rental-Alternatives-Across-the-Nation |
New Google, Less Government Pressure?
In this episode ofMarketFoolery, host Mac Greer talks with Motley Fool analysts Andy Cross and Ron Gross about some stocks.Slack(NYSE: WORK)emerged on Wall Street today, and investors are excited. That enthusiasm -- a rare sight in 2019 -- doesn't seem based on oversold hype. Meanwhile, a founder letter from Sundar Pichai of Google/Alphabet(NASDAQ: GOOGL)(NASDAQ: GOOG)fame reveals that the search giant is considering how to make all of the company better for the world. Plus, a good quarter forDarden Restaurants(NYSE: DRI), parent company of such gems as Olive Garden and Cheddar's Scratch Kitchen, as well as some grammatical shake-ups to aMarketFooleryclassic. Tune in to find out more!
To catch full episodes of all The Motley Fool's free podcasts, check out ourpodcast center. A full transcript follows the video.
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This video was recorded on June 20, 2019.
Mac Greer:It's Thursday, June 20th. Welcome toMarketFoolery! I'm Mac Greer. And joining me in studio, we have Motley Fool analysts Andy Cross and Ron Gross. Gentlemen, welcome!
Andy Cross:Hey, Mac!
Ron Gross:How are you doing, Mac?
Greer:I'm doing good! Slack making its Wall Street debut. We'll talk about that.
Gross:Very exciting!
Greer:We're also going to talk some Olive Garden and Google. But let's begin with the Fed. On Wednesday, the Federal Reserve signaling that interest rate cuts could be coming as early as June. I say could. On Thursday, the market opening up big. Now, Ron, we are company-focused investors here. We're focused on stocks. How should we think of the Fed and interest rate cuts?
Gross:You know, it's interesting, traders are actually now pricing in a 100% chance of a rate cut next month.
Greer:That's seems high!
Gross:That's about as high as you can get without turning it up to 11. But seriously, folks, I don't love the fact that the Fed is seeing weakness in the economy. That's not a good thing. The R word, recession, is a scary thing. Even slowing growth is a scary thing. However, I do like that the Fed is on top of this, and it's going to use certain tools they have in their toolbox to try to combat that. It gets a little scary if those tools don't work, but I like to see them being proactive and doing something about that. That's why you see the stock market rallying. Obviously, lower interest rates are better for companies in general, but you're also seeing the Fed take action or signal that they're going to take action. Rather than being fearful, you can be somewhat optimistic.
Cross:Yeah, thinking about this globally, I think considering that the U.S. economy, even growing at 2%-ish, for a Western economy, is a bright spot. When you think about more than $12.5 trillion in sovereign debt out there that has negative interest rates around the world, Mac, just the interest rate environment is so low, and as Ron said about the economy, it's doing OK but it's not thriving. The Fed is saying -- which is much different, by the way, than what the Fed was thinking a year ago when they were raising rates at their meetings during 2018. Now they're saying, "Hey, we're in different environment, we're recognizing this." The markets have been pricing this in, maybe not 100%, but certainly over the past couple of months, they've been trending to price it out. We still have the very short-term notes selling at higher yields than the 10-year now. Signs that the economy is not humming along, and the Fed just has this in their toolbox. They continue to see that. Maybe now we will see a rate cut sometime in the next couple of months.
Greer:Guys, Slack making its Wall Street debut on Thursday. Now, this is not your traditional IPO. It's a direct listing. We'll talk about that in a minute. The ticker symbol is WORK. Work. Slack, for those unfamiliar, is a cloud-based, instant messaging type of platform for the workplace. We use it here at The Motley Fool. We used it to prep for this show. We're big Slack users. Andy, I want to know about the stock. What about Slack as an investor?
Cross:Well, it's really interesting. I think it'll be a very well received IPO. Now, as a direct listing, it doesn't have the support of these underwriters. It hasMorgan StanleyandGoldman Sachshelping to make the company go public. But it's not like they are issuing new shares. Slack is not benefiting at all. They're not getting any money from this. They're not raising any capital from this. They are simply a private company one day and a public company the next, with some help with some of those banks that match up the buyers and sellers.
The company itself is really coming on. Just think about how we are using this at The Motley Fool. They have more than 600,000 total customers. Only about 100,000 of those are actually paying, so they have about 500,000 who use their free solution, that can get you started into Slack. It's a collaborative tool. It's a workplace tool. Stewart Butterfield, who founded the company, who founded also Flickr --
Greer:Great name!
Cross:Yeah, it's a great name! He and CTO at Slack, who was also a tech leader at Flickr before it sold out to Yahoo, they co-founded Slack. They're both very involved and they own a lot of stock. Stewart Butterfield owns probably north of $1 billion worth depending on where the shares trade today. He owns more than 42 million shares. When you think about this push toward collaborative tools, collaborative work environments, the so-called SaaS space, software-driven, cloud-based architecture that's helping companies work better and more efficiently, including The Motley Fool. They have loads and loads of customers. Two-thirds of the Fortune 100 are Slack customers, Mac. This is not just some small company. The valuation was probably around $16 billion. We'll see where the shares trade after today.
Gross:I do think it will be a successful IPO. I think the demand for the stock will be there. Interestingly, the company is still a small company from a revenue perspective. Maybe $135 million for the last quarter in revenue. Still not profitable. We have a company trading around 34X trailing revenue --
Cross:But sales are doubling.
Gross:The growth is there. That's what you need to see when you see a company trading at that kind of valuation. I think it will do well.
Interestingly, you'll only probably get about half of the shares available for trading. The six top institutional shareholders control about 60% of the stock. If they're not sellers, you're not going to see a lot of float out there. It'll be interesting to see how the supply and demand shake out. That will, of course, affect the stock price and how it trades.
Cross:That's why a direct listing is so fascinating, Mac, because it needs the buyers and sellers. As Ron often says, it takes two to make a trade. Well, you need the buyers and sellers, and it doesn't have the underwriters to help really facilitate that -- sorry, they will help manage it, but since the company's not issuing new shares, they're really at the whims of the buyers and sellers.
Greer:Andy, you mentioned the CEO earlier, Stewart Butterfield. He said in a CNBC interview that companies will phase out email over the next five to seven years. Now, he said that the broader world of email will stick around, will still be around, but that companies will phase out email over the next five to seven years. Is that what has to happen for Slack to succeed?
Cross:No, it doesn't have to happen. I think email will still have some place. Let's just be clear, Slack is focused really on their corporate and the work environment. So they're not really talking about individually usage. The killer app for text messaging is text messaging with our iPhones and Google and all that kind of stuff. This is really focused on the work environment. So email may still be around. The volume of email here at The Motley Fool since we've used Slack, I think, has fallen by more than half, maybe even two-thirds or so. Our volume of email flow has dropped dramatically as we continue to use Slack. I don't think email needs to vanish. In fact, Slack ties into thousands of different apps and API' to be able to coordinate and partner with different applications including email. It doesn't need to happen. But I think he's probably right. The work email flow will dramatically change over the next five years.
Greer:For someone, though, who doesn't know much about Slack, or who may not have it in their workplace, when are you using Slack vs. email? What has Slack replaced in terms of email?
Cross:Well, in our preparation for this radio show, I was using Slack, for example, and you went quiet --
Greer:That's not true! I was using it most of the time!
Cross:Yeah, you were using it most of the time, but then you switched to email and sent me an email, and I was waiting for a Slack response.
Greer:True or false: you may have been late for our taping?
Cross:Well, that is true --
Gross:Only late because there was no official start time. You can't be late if there's no start time!
Greer:Let's not nitpick.
Gross:Slack is at its best, in my opinion, when it's used for short correspondence.
Greer:And projects, right?
Gross:No, not for projects. I think email is better for projects.
Greer:Really? I disagree with you!
Gross:You have ongoing threads, attachments, you have things you want to keep for long periods of time, maybe file into folders. I think Slack is better for short bursts.
Cross:Like all software applications, it's not perfect. But I think it is a dramatic improvement. By the way, there were lots of other companies trying to do this. Yammer, which I think was bought by maybeMicrosoft. And there are others who have done this over the years. Slack built a solution -- it's only been around since 2014, I think. They built a solution that is integrated, it is cloud-first, it is really focused on helping to improve the collaboration. I think Ron's right, there are times when it's better and times when it's not, although I see it with a lot of the integrations and other software applications getting better. But I agree with Ron. We've talked a lot about this. It's really good for quick hit, little communications, knowledge sharing, that kind of thing. If you start getting into more robust conversations, at least from my experience, that's where more conversations really need to happen. Slack can help drive that. And by the way, there's now Slack video and you can Slack call. They talk about communications and collaboration when they talk about Slack, and that's really what they're trying to drive.
Greer:For our next story, some better than expected earnings from Darden Restaurants, parent company of the beloved, in some circles, beloved Olive Garden, and other restaurant chains. But Ron, we've got revenues and same-store sales growth coming in a bit lighter than expected. What's the story here?
Gross:Yeah, I'm not sure that "better than expected" is the proper categorization here. I think investors were disappointed with revenue and their comp store sales. I think those missed expectations.
Greer:Agree to disagree.
Gross:I think investors were also somewhat disappointed with the guidance for fiscal 2020 going forward. But all in all, it still was a strong report. I mean, you saw sales up 4.5%, driven by 39 new restaurants, 1.6% blended increase in same restaurant sales. Strength in Olive Garden, Longhorn Steakhouse, Capital Grille. Weakness in Cheddar's Scratch Kitchen, Yard House, Seasons 52, Bahama Breeze. Shake those all together, you get a 1.6% same restaurant blended sales increase, which is not terrible. I think investors wanted to see more there. But it all worked together to increase earnings per share almost 27%. That's a strong number. They repurchased 42 million shares of stock. Guidance is fine. They're looking for $6.30 on the low end for fiscal 2020. That puts the stock at about 18X earnings. Not really that expensive when you look at other restaurants out there that trade more in the low to mid 20X earnings. They just raised their dividend 17%. You've got a 3.1% yield at the current price. I think the company is doing well.
Cross:I have a soft spot in my heart for Olive Garden. I haven't been to one in years. But when I was at the University of Michigan, my brother was there as well --
Gross:Go blue.
Cross:-- he took me to an Olive Garden my first week, and I just felt like it was just the greatest experience ever, when your older brother takes you to Olive Garden. I just loaded up on breadsticks and salad. It was great! But I haven't been back in forever.
Greer:Breadsticks are so good!
Cross:I mean, they're great!
Gross:Obviously, Steve Broido, or our beloved man behind the glass for our radio show, is the biggest fan at The Motley Fool of Olive Garden and continues to be.
Greer:Loves it, absolutely loves it! Ron, you mentioned the stock. When I was doing my research before the show, trying to find Andy, it was really interesting. Darden has just absolutely crushed the market over the last five years. It's up over 3X in value. Olive Garden's parent company, Darden, doing really well and really outperforming competitors likeBrinkerandYum!.
Gross:They've done a great job. Perhaps we should give some kudos to activist investors Starboard Value who are partly responsible for improving some operations there.
Greer:And who said, what? That Olive Garden was giving out too many breadsticks.
Gross:And they should not salt the water because it lowers the lifetime of the pots and pans they use. Little tidbits like that. But yeah, even this year, the stock's up 15%, which is about even with the market, but still very strong.
Cross:It's a $15 billion company. It's not small.
Greer:Well, in his annual founder's letter for parent company Alphabet, Google CEO Sundar Pichai said the company had moved on from its original goal of "organizing the world's information," and is now focused on building "an even more helpful Google for everyone." Now, this comes as Google and Alphabet is facing increased scrutiny, including reports that the Justice Department may be gearing up for some antitrust investigations. Andy, what do you think of Google 2.0, now more helpful?
Cross:Just to be sure, Sundar wrote this letter, and he is the president of Google, which is a subsidiary of now Alphabet, which also has lots of other businesses tied into it. They made this decision a few years ago to do this. He and Sergey Brin and Larry Page, who are the original founders of Alphabet, created the Alphabet structure. He's written two of these letters, and they've written a couple of other ones, during this time.
I think he had to, obviously. Alphabet's a $750 billion company, one of the largest in the world. It touches so many parts of our lives in what we do, and now it's under scrutiny from lots of different parts, including internal employees, shareholder bases. Lots of concerns around the tech privacy and how our data is being used and what we're seeing on YouTube, search of antitrust concerns.
But just looking at the sub heads of his letter, Mac, I think they're telling. The sub heads of the letter. The first one: Building A More Helpful Google. Finding Trusted, Accurate Information. Building For Everyone. Keeping Users and Their Data Safe and Secure. Investing in Our Communities. They've talked about investing more than $1 billion in Home.
Greer:I like that!
Cross:Right? Taking the Longer Term View, I don't think anyone ever thought Google took the short-term view. From the very beginning, when they went public, they always talked about longer term. And then finally, wrapping it back up with A More Helpful Google for the Future. I think he laid out the case, considering where they are now, what they want to be over the next 10, 20 years. It's not as much about the organization of the information like it used to be, which is so tied to search. It's really about being more useful to all of us. Just think about what we do on YouTube. We watch videos to figure out whatever it might be, how to fix a toilet. I mean, I don't do that, per se, but some people do. How to tie a bow tie, I've used it for that. All kinds of stuff. I think that's really what the focus is going to be in the future when it comes to the Google property of Alphabet.
Gross:I agree. I think letters like this, or communications fromFacebook, it's a sign of the times, it's a sign of the political climate we're in right now. Which I think is fine, especially if it's to the benefit of shareholders and consumers. I don't like to see companies moving to the whims of the political climate, however, so I would be careful there. But if they are truly taking a look at their business, and making improvements, and really introspection that will accrue to the benefit of all shareholders, then I think that's great.
Cross:Well, they can't not do that. If people are talking about regulating them as monopolies, because we use them so much every day, I think being able to articulate -- you're seeing the same struggle with Facebook and Mark Zuckerberg and his team, trying to articulate to politicians and users and consumers and watchdogs out there, especially over in Europe, where Google has faced a lot of trouble over the years, and fined a lot of money, I think he has to strike a message that is a little bit more like this than what it may have used to be.
Greer:Andy, I want to circle back to what you were saying about YouTube. The front page of today's Washington Post, one of the headlines,YouTube Under Investigation Over Child Privacy Complaints. And then our very own Chris Hill sent me an article earlier today that talked about how YouTube is considering moving all of its children's content into a separate product, the already existing stand-alone YouTube Kids app. The whole idea there is to better protect young viewers. I can't decide. I'm a very happy Alphabet/ Google shareholder. I love YouTube, but I also have kids, and YouTube is the Wild Wild West. You can have parental controls, you can have filters. But at the end of the day, people are uploading so much content to YouTube that you just get the sense that the algorithms and the company can't keep up.
Cross:I get the sense that that might be true. Sundar mentioned in his letter that 1% of all the YouTube content is terrible content, and 99% people find valuable in different ways.
Greer:But they find the 1%.
Cross:Well, they find the 1%, and the 1% is what drives so much of the concerns in the headlines, just like it does with anything else, when the minority of volume of stuff drives most of the conversation. I think Google and Alphabet, trying to figure out how best to structure their properties and their software and develop solutions -- I mean, Alphabet has spent $22 billion on R&D, research and development, over the past year. That's double what you saw from Facebook, and more than both Microsoft andApple. Less than Amazon, but more than Microsoft and Apple. They are spending a lot of effort and resources, mostly around technology, AI, machine learning, to try to figure out so much of this to get it right because it is so important to consumers. Not just the watchdogs, important there too, but consumers, especially in today's world where switching costs are low. We are so in tune with how our technology is being used, how our data and privacy is being used or being abused. So they have to get this right. This letter, to me, started to outline more of the thinking around what Alphabet and Google, which is their largest property, has to become for the future because of the concerns, like you mentioned with YouTube, Mac.
Greer:OK, well, now it is time for our desert island question. Before I hit you with the three stocks we've talked about -- Slack, Darden and Alphabet, a.k.a. Google, I want to let you know that one of our longtime colleagues, he talked to me about this last week. He passed me in the hall and said, "Oh, by the way, I've been listening. I've been thinking about this for two years. When you ask your desert island question, I don't think that's what you mean. I think you mean deserted island." I want to leave it out there for listeners.marketfoolery@fool.com. Is this the desert island question? Or is it the deserted island question? I went down a rabbit hole on Google after he said that, and I do want to say that I think a desert island, by definition, is deserted.
Cross:I just want the dessert island.
Greer:Do you have strong opinions on desert vs. deserted island?
Gross:When you think ofGilligan's Island, that was a deserted island, which I think is actually what you mean when you ask this question.
Greer:Well, you know what's interesting? I'm glad you brought that up. In my notes, I have the lyric fromGilligan's Island, because I know you will. Here's the lyric. You ready?
Gross:Yeah.
Greer: "The ship set ground on the shore of this uncharted desert isle." Drop the mic.
Cross:Desert, we think about sand.
Gross:But it was lush, there were palm trees all over the place. It wasn't a desert.
Greer:I think of theNew Yorkercartoon, sand with one palm tree. But I think a desert island doesn't necessarily have to have sand. I think desert by definition is deserted. I think they are one and the same and I think desert packs more of a punch.
Gross:Let's see what the listeners say.
Cross:I'll take my cue from the listeners. Please let us know.
Greer:OK, so the two questions for listeners. I'm going to add a second. Is it my desert island question or my deserted island question? And then a follow-up if you really want to weigh in: If someone is on the island, is it really deserted?
Gross:If a tree falls in a forest...
Cross:Do we have two answers to that question? Can they be the same answer?
Greer:marketfoolery@fool.com. These are the things we worry about. In today's world, this is what I worry about. OK, the next five years, you're on an island. It was previously deserted, uninhabited. It may have sand. It may have tropical landscape. I don't know. It's a dumb question.
Gross:Mr. and Mrs. Howell might be there.
Greer:All I know is that you're looking at these three stocks and you have to buy one for the next five years: Slack, Darden, or Alphabet?
Gross:Uncharacteristically, Mac, I'm going to go with Slack. I would like to be a shareholder and own it for quite some time.
Cross:I do see that stock trading now. It's up north of $40. List price was $26, it's above $40. It's up almost 60%. I still like Slack long term, thinking out five years at least, compared to at least those two companies, although Darden, very impressive track record. That's a good call, Mac!
Gross:But yet, still a restaurant.
Cross:Still a restaurant, so I'm going with Slack.
Greer:Both on the desert and deserted island?
Cross:Both on the desert and the deserted island.
Greer:OK. As always, people on the show may have interest in the stocks they talk about, and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. Ron, Andy, thanks for joining me! That's it for this edition ofMarketFoolery! The show is mixed by Dan Boyd. I'm Mac Greer. Thanks for listening! And we will see you tomorrow!
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors.Andy Crossowns shares of Facebook.Mac Greerowns shares of Alphabet (C shares), Apple, and Facebook.Ron Grossowns shares of Alphabet (C shares), Apple, Facebook, and Microsoft. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Apple, Facebook, and Microsoft. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool has adisclosure policy. |
Who's Afraid of Amazon in Digital Health?—Brainstorm Health
Happy Friday, readers! On this summer solstice, we’ve received some more insight into exactly why health care companies are so concerned about Amazon’s entry into the digital health space. Those concerns always made sense in a theoretical kind of way (Amazon is, after all, the Killer of Industries, from retail to cloud storage to the logistics sector). But documents unveiled as part of a lawsuit between CVS and a former employee who absconded to the Amazon-purchased PillPack pharmacy delivery business provide more details on exactly what’s driving the angst. More details below. Read on for the day’s news, and have a wonderful weekend. Sy Mukherjee @the_sy_guy sayak.mukherjee@fortune.com DIGITAL HEALTH Lawsuit docs provide a glimpse into health care’s Amazon anxiety. About that aforementioned CVS lawsuit and what it says about Amazon: “Our review of documents related to a case filed by CVS – which seeks to prevent a former CVS executive from joining PillPack – shows that Amazon is seeking to develop a service offering that would bypass PBMs [pharmacy benefit managers] and contract directly with payers,” analysts from Jeffries wrote, according to The Street . The nightmare scenario for existing health giants is any entity that cuts into the lucrative employer health care space, especially via direct negotiations with major insurers. It appears this may be exactly what Amazon is planning (although the extent of possible services is still fuzzy). ( The Street ) INDICATIONS Addyi 2.0? Addyi, the women’s libido treatment consistently mislabeled as a “female Viagra,” has elicited plenty of controversy. Its safety and efficacy was questioned by experts when approved by the Food and Drug Administration (FDA); its sales have… not been great, though they’ve improved substantially in the past few months in part thanks to new online sexual health product distributors. But regulators are now set to decide on another female libido drug that could also prove controversial. Amag Pharmaceuticals’ Vyleesi, unlike Sprout Pharma’s Addyi, comes in a shot rather than a pill, and potentially harbors less side effects. Its potential in the market remains an open question. ( Bloomberg ) THE BIG PICTURE Missouri’s last abortion clinic may shut down. Missouri health officials are inviting a major legal brouhaha after effectively ordering the state’s lone, existing abortion clinic to shut down. The clinic will remain open on a temporary basis thanks to a judge’s injunction; a more lasting decision may come in the next few days. But if Missouri succeeds in refusing the clinic’s application for renewal, it would become the first state in the U.S. with zero abortion clinics. ( Reuters ) REQUIRED READING Meet the A.I. Landlord That’s Building a Single-Family-Home Empire , by Shawn Tully Why Focusing on Diversity Numbers Won’t Really Make Companies More Inclusive , by Tim Ryan Boeing’s Stunning Moment of Redemption , by Phil Boucher Produced by Sy Mukherjee @the_sy_guy sayak.mukherjee@fortune.com Find past coverage. Sign up for other Fortune newsletters. |
Did You Manage To Avoid IVE Group's (ASX:IGL) 11% Share Price Drop?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Investors can approximate the average market return by buying an index fund. But if you buy individual stocks, you can do both better or worse than that. Unfortunately theIVE Group Limited(ASX:IGL) share price slid 11% over twelve months. That falls noticeably short of the market return of around 12%. At least the damage isn't so bad if you look at the last three years, since the stock is down 7.3% in that time. It's down 1.9% in the last seven days.
View our latest analysis for IVE Group
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
Unhappily, IVE Group had to report a 1.5% decline in EPS over the last year. The share price decline of 11% is actually more than the EPS drop. So it seems the market was too confident about the business, a year ago. The P/E ratio of 10.66 also points to the negative market sentiment.
The graphic below depicts how EPS has changed over time (unveil 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 IVE Group's earnings, revenue and cash flow.
When looking at investment returns, it is important to consider the difference betweentotal shareholder return(TSR) andshare price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, IVE Group's TSR for the last year was -3.9%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments!
IVE Group shareholders are down 3.9% for the year (even including dividends), but the broader market is up 12%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Investors are up over three years, booking 4.7% per year, much better than the more recent returns. 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. 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 IVE Group by clicking this link.
IVE Group 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 AU exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
This Woman's ‘Pimple’ Was Stage 3 Melanoma. Its Recurrence Sparked Her to Run Her First Marathon
Photo credit: Kristina Baum From Prevention Kristina Baum, 37, had an inauspicious start to distance running: She signed up for her first race, the Army Ten Miler , back in 2006 with zero training. “I thought I might as well just show up and try it, and see as far I can get,” she tells Runner’s World . She ran eight miles without stopping and walked the last two. The physical after-effects were rough-she threw up twice, and was in pain for days-but finishing the race completely hooked her on running. So she started training, and ran the Houston Half Marathon in 2007 and 2009. But at the same time, her professional career was taking off, and racing hit the back burner. She had pursued a career in communications in Washington, D.C., where she currently serves as the communications director for the House Natural Resources Committee, and was climbing the ladder fast. The ‘Pimple’ That Started It All Then in 2012, she went to the doctor for a bad chest cold. But her doctor noticed something on her arm that was concerning: It was a colorless spot that looked like a pimple or a wart. It was something Baum had noticed three months before, but didn’t think much of. Her doctor recommended that Baum go for a biopsy, but she put it off for three months because of her crazy work schedule. Besides, she wasn’t having any symptoms, so she didn’t think it was something that needed to be taken care of urgently. Six days after her biopsy in September of 2012, she got the call with the results: stage 3 melanoma, a type of skin cancer that is less common than basal cell or squamous cell carcinomas, but more dangerous because it is much more likely to spread. “It was one of those life-changing calls. I was crying, trying to write things down,” she says. “I didn’t even really know what melanoma was at the time.” Two days after her diagnosis, Baum ran a 5K, but the treatment that year-which included two surgeries, one to remove the cancer in October 2012, and another the next month to remove cancerous lymph nodes-would be rough. “Exercising during my first diagnosis was far too difficult. I did try, but recovery was incredibly difficult after a tough workout,” she says. After her treatments, though, she was told she was N.E.D. (or what most know as “no evidence of disease.”) For the next four years, she felt healthy and strong-“I was in the best shape of my life,” she says-supplementing her running with HIIT and cross-training , including Kayla Itsines’s program. Photo credit: Courtesy of Kristina Baum Learning the Cancer Came Back Then, at a regular checkup in June 2016, she learned her melanoma had come back: It was stage 4 and in her left kidney. Story continues Her treatment-a phase-one clinical trial of a non-FDA approved drug made by Bristol Myers Squib, known as anti-LAG3, combined with Nivolumab (FDA approved)-left her extremely weak and sick. “I was on prednisone, which basically destroys your muscle mass-it just wipes you out. It causes you to gain weight, experience blurry vision,” she says. The clinical trial drug worked, but it completely destroyed her fitness. “If I was in the shower trying to wash my hair, I barely had the strength to hold my arms up,” she says. But by April 2017, her doctors cleared her once again. She had no evidence of the disease and was considered a “complete responder” to the medication. That spurred her to get strong. “I hate being weak,” she says. “I never want to feel that weak ever again.” So she started small, pulling on an old pair of Nikes. “I started with walking. Walked half a mile, then a full [mile] that turned into six miles,” she says. “Then I started running. A half mile, then a full mile. Then I just said, ‘Well, I'm just going to try.’So I signed up for the Pancreatic Cancer 5K that year [2017] and gave it a shot.” Photo credit: Courtesy of Kristina Baum After that, she was running 5Ks every weekend. “It just felt really great to be out and running, feeling stronger,” she says. Then a friend brought up a new challenge when she asked if she wanted to try a triathlon . She completed her first in October of 2017. “I did a master swim class to learned how to competitively swim . It snowballed from there,” she says. “I ran seven half marathons, triathlon-I was running about 9-minute miles. I felt great.” On October 28, 2018, she ran her first marathon, the Marine Corps Marathon. At mile 17, it hit her that not too long ago, she was in the hospital, listening to beeping machines and wondering if she would die, she remembers. She finished the race in 4:35:19. Dealing With a Second Recurrence She had started training for the Ironman Maryland when she went to the doctor for a routine checkup in December of 2018. Baum wasn’t feeling quite right-she felt more tired than usual, but thought that was just due to her training. She also was experiencing vertigo, a condition that made her feel dizzy. Her doctor sent her for a MRI scan, but because she had a clear CT scan the month before, she almost didn’t go for it. “But they called the next day after my MRI, and I had to go back on treatment,” she says. Her cancer had returned. This time, it had metastasized to her brain. “It threw a huge wrench in my plans-I had hired a pro-triathlete coach and was training for my first Ironman,” she says. She had to abandon her race at the suggestion of her oncologist, and has since started her second clinical trial treatment. She received CyberKnife radiation in January 2019 to shrink (and hopefully eliminate) the tumor in her brain, and she receives immunotherapy drug Opdivo-which interferes with the growth and spread of any cancer cells-once a month at Johns Hopkins Sidney Kimmel Comprehensive Cancer Center. Just this past Monday, though, she received the news she was hoping for: Her latest brain MRI showed no evidence of cancer. She will continue to remain on treatment for now. Photo credit: Courtesy of Kristina Baum While she’s battling extreme fatigue, she hasn’t let it stop her from lacing up her Topo Ultrafly 2s and running. She ran a 10-miler at the beginner of March, had a treatment the next weekend, and the weekend after that, finished the NYC Half Marathon. “The half marathon is my favorite distance, and I just had to accept I’m probably not going to get the PR I want,” she says. “I just want to finish the race.” Baum has also signed up for the New York City Marathon in 2019 and hopes to complete the six World Major Abbott races in the future. She is still working with her training coach, Angela Naeth, who understands what it’s like to fight for health-she’s battling Lyme disease-and who also leads the team Baum trains with called I Race Like A Girl. She has Baum running three times a week, swimming once or twice a week, biking once a week, and doing strength workouts twice a week. But she’s learned to listen to her body and take it a day at a time. “Normally the day after immunotherapy treatment is rough. Some days I’m just really wiped out. I recently bought a road ID in case something happens while I’m out training. I wear it a lot-but I’ve decided I’m going to keep going,” she says. As her treatment continues, she’s relied on her faith to help her with the physical and spiritual strength she’s needed to get through it. “God definitely gives me ability to run each day. Each day I’m incredibly grateful for it. I think about the days when I couldn’t run at all, and what I wouldn’t give to just be able to,” she says. “I love the feeling of getting lost in a long run. To feel your breath, to think, to pray, to get angry or cry. It’s a big way I can process everything and decompress,” she says. And most importantly, it makes her feel strong. “When you feel as weak as I have, feeling strong is super important. Being able to keep running allows me to feel like myself. Without that, my quality of life just isn’t the same,” she says. She’s motivated not only by her own fight, but to do what she can to find a cure for melanoma. In fact, she’s trying to raise money for melanoma research-she has been able to participate in two clinical trials-through the Melanoma Research Alliance . “But for me, it’s not just about beating cancer medically. I think you beat cancer by how well you live your life each day, and the more you live in fear, it prevents you from doing what you’re meant to do,” she says. “Cancer is like having a terrorist living in my body, but it’s not gonna win today, and I am going to keep pushing. And I want other people fighting this to know they can be strong and push forward, too.” Stay updated on the latest science-backed health, fitness, and nutrition news by signing up for the Prevention.com newsletter here . For added fun, follow us on Instagram . ('You Might Also Like',) The Best Yoga Mats, According to Top Yoga Instructors The Shockingly Simple Diet Change This Woman Made to Drop 54 Pounds Losing Stubborn Belly Fat Really Comes Down to These Two Lifestyle Changes View comments |
O-I Announces Second Quarter 2019 Earnings Conference Call and Webcast
FOR IMMEDIATE RELEASE
For more information, contact:Sasha SekpehO-I Investor Relations(567) 336-5128alexandra.sekpeh@o-i.com
O-I Announces Second Quarter 2019 EarningsConference Call and Webcast
PERRYSBURG, Ohio (Jun. 21, 2019) - Owens-Illinois, Inc. (OI) has scheduled its second quarter 2019 conference call and webcast for Thursday, Aug. 1, 2019, at 8 a.m. EDT. The Company`s news release for the second quarter 2019 earnings will be issued after the market closes on Wednesday, Jul. 31.
What: O-I Conference Call and WebcastEarnings presentation materials will also be posted on the O-I website,www.o-i.com/investors, when the earnings news release is issued.
When: Thursday, Aug. 1, 2019, at 8 a.m. EDT
Where:http://investors.o-i.com/phoenix.zhtml?c=88324&p=irol-calendar
The webcast will be archived atwww.o-i.com/investorsuntil Aug. 2020.
To participate in the event via conference call, dial 1-888-733-1701 (U.S. and Canada) or 706-634-4943 (International) by 7:50 a.m. EDT, on Aug. 1. Ask for the O-I conference call.
###
About O-IAt Owens-Illinois, Inc. (OI), we love glass and we`re proud to make more of it than any other glass bottle or jar producer in the world. We love that it`s beautiful, pure and completely recyclable. With global headquarters in Perrysburg, Ohio, we are the preferred partner for many of the world`s leading food and beverage brands. Working hand in hand with our customers, we give our passion and expertise to make their bottles iconic and help build their brands around the world. With more than 26,500 employees at 77 plants in 23 countries, O-I has global impact, achieving revenues of $6.9 billion in 2018. For more information, visit o-i.com.
O-I Logo2Q 2019 Earnings Release and Conference Call
This announcement is distributed by West Corporation on behalf of West Corporation clients.The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.Source: Owens-Illinois, Inc. via GlobeNewswireHUG#2246350 |
Stocks pull back from record highs, energy prices surge
U.S. stocks pulled back Friday after the S&P 500 touched a new record intraday high earlier in the session. Treasury yields stabilized, and energy prices soared amid geopolitical angst.
The S&P 500 (^GSPC) edged down 0.12%, or 3.63 points, as of market close, paring gains after hitting a new all-time intraday high of 2,964.14 points. The Dow (^DJI) declined 0.13%, or 33.91 points, while the Nasdaq (^IXIC) slipped 0.24%, or 19.63 points.
Equities were on a tear this week amid signals of looser monetary policy from the U.S. Federal Reserve, Bank of England and Bank of Japan. The S&P 500 rose 2% over the course of the past week, and posted its best start to June on record, up 7.2% for the month through Friday’s close.
The Dow rose 2.4% for the week. The 30-component index, up 7.67% for the month, has posted its best start to June since 1938.
Treasury yields edged up Friday, recovering slightly as a buying spree from traders earlier in the week cooled. The 10-year yield (^TNX) rose 5.8 basis points to 2.059%, after breaking below 2% for the first time since November 2016 on Thursday. Yields move inversely to prices.
Friday marked the last session of trading before S&P Dow Jones Indices implements itsquarterly rebalanceof the S&P 500. This involves an adjustment to the representation of the 500 companies that comprise the S&P 500, and will impact exchange-traded funds (ETFs) and other funds tracking the index. Index adjustments tend to drive higher trading volumes as portfolio managers shift their holdings to align with the rebalanced index. The rebalance takes effect at market open June 24.
Additionally, Friday saw the simultaneous expiration of contracts on stock-index futures and options, stock options and single stock futures. This quarterly event – also called “quadruple witching” – also tends to stir up higher trading volumes and volatility.
Meanwhile, gasoline futures (RB=F) surged 4% after explosions and major fires broke out at Pennsylvania’s largest oil refinery. The fire, which originated from a vat of butane at Philadelphia Energy Solutions, was contained but not under control as of Friday morning, according tomultiplereports.
Crude oil prices also continued to climb Friday amid escalating tensions between the U.S. and Iran. President Donald Trump ordered military strikes on Iran before reneging,according to the New York Times, after Tehran downed a U.S. drone on Thursday.
Friday morning, Trump wrote in aseries of Twitter poststhat he stopped the strike just before it was set to initiate, and that he was “in no hurry” to escalate tensions with Iran.
Futures for domestic crude oil (CL=F) rose 0.6% to $57.43 per barrel Friday, adding to gains of more than 5% during Thursday’s session. Brent crude oil prices (BZ=F), the international benchmark, rose more than 1% to $65.20 per barrel.
A measure of business growth in the U.S. dropped to the lowest level in more than three years as activity in both the manufacturing and services sectors softened.IHS Markit’sU.S. manufacturing purchasing managers’ index (PMI) fell to 50.1 in its flash June reading, a near 10-year low. This was below May’s reading of 50.5, and consensus expectations for the reading to remain unchanged from May to June.
Meanwhile, IHS Markit’s services PMI declined to 50.7 in June, falling from 50.9 in May and underperforming against consensus expectations. The June services activity PMI was the lowest reading in 40 months. In total, the U.S. composite PMI registered at 50.6, the lowest level in nearly three-and-a-half years. Readings above a neutral level of 50 indicate expansion.
Canopy Growth Corporation (CGC,WEED.TO) reported quarterlyadjusted losses and gross margins that missed consensus expectations.
The world’s largest cannabis company reported quarterly losses before interest, taxes, depreciation and amortization of C$98 million (or about $74 million), versus a loss of $64 million expected, according to Bloomberg data. Adjusted gross margin – a closely watched metric as investors eye signs of profitability for members of the nascent industry – contracted to 16% for the quarter ended March 31. This was below consensus expectations for 24%. On the top line, revenue of C$94 million beat expectations for C$92 million.
Red Hat (RHT), an open-source enterprise software provider,reported first-quarter results that came in well above consensus expectations. Adjusted earnings per share of $1.00 bested consensus estimates by 14 cents, while revenue of $934.1 million was slightly above expectations. Subscription revenue grew to $815 million, up 15% over last year. IBM (IBM) is set to acquire Red Hat in a $34 billion deal, the two companiesannounced in October.
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Emily McCormick is a reporter for Yahoo Finance.Follow her on Twitter: @emily_mcck
Read more from Emily:
• Buffett on the American economy, capitalism: ‘It works’
• Tech companies like Lyft want your money – not ‘your opinion’
• Levi Strauss shares jump more than 30% above IPO price at open
• Facebook sued by Trump administration for alleged ‘discriminatory’ ad practices
• Boeing 737 Max groundings ‘pressure’ U.S. economic data: Wells Fargo
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Is Slack Really Worth $20 Billion?
Slack shares opened at $38.50 on Thursday, the company's first day of trading, up 48 percent from a $26 reference price Wednesday. That massive win gave the San Francisco-based tech startup a $19.5 billion valuation, almost triple its private valuation of $7.1 billion. That seems like a high number, considering that Slack itself estimated the market for its industry (workplace collaboration services) at $28 billion in its offering paperwork.
Friday saw the startup fall back to earth, as Slack stock fell 3.63 percent to 37.22. However, the true question about Slack's value won't be determined in its first week of trading (just as Uber's fatewasn't decided by a disastrous IPO).
WORK Quotesby TradingView
TheEntrepreneur Index™as a whole was down slightly, falling 0.13 percent asAmazon,Comcastand Adobe Inc. saw losses on the day. The biggest declines on the day came from D.R. Horton (-2.28 percent),Boston Properties(-1.9 percent) andFedEx Corp.(-1.89 percent).
On the other side,Alexion Pharmaceuticalsrose by 2.83 percent Victoria's Secret parent companyL Brandsrose by 2.8 percent on Friday followed by two clothing companies in Victoria's Secret parent company L Brands (2.8 percent) andRalph Lauren Corp.(2.47 percent).
Related:Stock Market Hits New High Thanks to Fed Policy Shift
TheEntrepreneur Index™collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time onEntrepreneur.com. |
U.S. banks clear first hurdle of Federal Reserve's annual stress test
By Pete Schroeder
WASHINGTON, June 21 (Reuters) - The 18 largest banks operating in the United States took the first step toward doling out capital on dividends, share buybacks and other investments on Friday, after clearing the first stage of their yearly health checks with the U.S. Federal Reserve.
The central bank said lenders, including JPMorgan Chase & Co , Citigroup Inc, Goldman Sachs, Morgan Stanley and Bank of America Corp, would face losses of $410 billion under its most severe recession scenario ever, but levels of high-quality capital would still be well above regulatory minimums. (Reporting by Pete Schroeder Editing by Leslie Adler) |
Why Crocs, Overstock.com, and PBF Energy Jumped Today
The stock market ended the week with modest losses, as various major benchmarks posted small declines. Many investors remain optimistic about the prospects for continued economic growth, but with some uncertainty about the future course of interest rates, the coming earnings season that begins next month could give critical information about how the broader economy will fare. Today, though, some individual companies came into the spotlight as their shares climbed dramatically.Crocs(NASDAQ: CROX),Overstock.com(NASDAQ: OSTK), andPBF Energy(NYSE: PBF)were among the top performers. Here's why they did so well.
Shares of Crocs ran up 8% after the shoemaker got favorable comments from Wall Street analysts. Baird upgraded Crocs stock from neutral to outperform, citing expected new products that could drive interest in the company for the remainder of the year and even into next year. Despite finding extensive domestic success, Crocs hasn't yet made the most of its international prospects, and efforts to expand its customer base to a new set of potential buyers could help it boost price points and increase margins. After aterrible performance latelydue to tariff concerns, Crocs is ready to jump forward again and try to make up for lost time.
Image source: Crocs.
Overstock.com saw its shares rise 15.5% following the one-time e-commerce challenger's latest comments about its efforts to get more heavily into the cryptocurrency industry. CEO Patrick Byrne has been excited about the prospects for crypto for a long time, and late yesterday, the executive said that the company has gotten a couple of offers to buy out its e-commerce retail segment. That would leave Overstock.com with pure-play exposure to blockchain technology through its Tzero trading business. Skeptics fear thatTzero's tiny revenuewouldn't be sufficient for Overstock.com to thrive, but with many cryptocurrencies having climbed recently, investor excitement is driving interest in the stock.
Finally, shares of PBF Energy gained 11%. Thedownstream refinery company's stockappeared to be the beneficiary of bad news at a competing business, as an explosion devastated the privately held Philadelphia Energy Solutions facility in South Philadelphia. Some energy market participants predicted that the accident could have an impact on gasoline prices in the vicinity of the facility, although they expect that any increases would be modest rather than approaching price-gouging levels. For PBF, which has a refinery in New Jersey, greater demand could lead to at least a short-term profit boost, and that seems to be driving shares higher.
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Dan Caplingerhas no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy. |
'The way you feel when you hold your baby' — here's what the Apple Card is like
For Goldman Sachs’s global head of consumer Harit Talwar—a seasoned credit card executive himself—the first time he held the Apple Card was a memorable experience.
Apple (AAPL) has partnered with Goldman (GS) and Mastercard (MA) to release its first-ever digital and physical credit card called the Apple Card.
The sleek, titanium card is currently being beta tested by the employees of both companies, pending an official release that’s expected this summer.
And using one is like "the way you feel when you hold your baby," Talwar said when Yahoo Finance asked him for his reaction.
"I have an Apple card. I'm a beta user. I can tell you I love using it. I'm using it all the time," Talwar said on the sidelines of the Fortune Brainstorm Finance event in Montauk this week.
Talwar, who joined Goldman in 2016 from Discover Financial, said it's his primary card in both his digital and physical wallet.
Using it is “so convenient and easy and customer-centric," he added.
The Apple Card works like Apple Pay and lives within the Apple Wallet. The no-fee card lets users do a range of things like tracking spending in real-time, use maps to locate purchases, accumulate daily cash rewards, and interact with customer service reps via text.
"Most of the time I use the digital wallet, the Apple Pay, and I buy it through Apple Pay, because Apple Pay is now increasingly accepted at most places," Talwar said.
At some places where Apple Pay is not accepted, Talwar pulls out the titanium laser edged, numberless physical card.
"I must tell you the moment I go to the physical card everybody looks at it twice and says 'Wow, this is a really sleek card.'"
Julia La Roche is a finance reporter at Yahoo Finance. Follow her onTwitter.
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