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Imagine Owning KS Energy (SGX:578) And Taking A 96% Loss Square On The Chin
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Long term investing works well, but it doesn't always work for each individual stock. It hits us in the gut when we see fellow investors suffer a loss. Imagine if you heldKS Energy Limited(SGX:578) for half a decade as the share price tanked 96%. And some of the more recent buyers are probably worried, too, with the stock falling 48% in the last year. It's up 31% in the last seven days.
We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don't have to lose the lesson.
View our latest analysis for KS Energy
KS Energy isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Over half a decade KS Energy reduced its trailing twelve month revenue by 39% for each year. That's definitely a weaker result than most pre-profit companies report. So it's not that strange that the share price dropped 46% per year in that period. We don't think this is a particularly promising picture. Ironically, that behavior could create an opportunity for the contrarian investor - but only if there are good reasons to predict a brighter future.
Depicted in the graphic below, you'll see revenue and earnings over time. If you want more detail, you can click on the chart itself.
Thisfreeinteractive report on KS Energy'sbalance sheet strengthis a great place to start, if you want to investigate the stock further.
While the broader market gained around 4.1% in the last year, KS Energy shareholders lost 48%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 46% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. You could get a better understanding of KS Energy's growth by checking outthis more detailed historical graphof earnings, revenue and cash flow.
We will like KS Energy better if we see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on SG exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Brazil's Petrobras pays $700 million to Vantage Drilling after court decision
SAO PAULO (Reuters) - Brazilian state-controlled oil company Petróleo Brasileiro SA said on Friday it had made a $700 million payment to oil services provider Vantage Drilling Company in a case involving a contract that it had terminated.
Petrobras, as the oil company is known, said in a securities filing that it decided to make the payment following a decision by a U.S. court in Texas denying its request to cancel the result of an earlier arbitration in Holland opened by Vantage after Petrobras terminated a drilling contract in 2015.
Petrobras argued at the time that the contract had been awarded to the U.S. company "by way of corruption," according to findings by Brazil's Operation Car Wash anti-corruption investigation.
Vantage denied the accusation and said the contract was "wrongfully terminated. It won the arbitration in Holland, but Petrobras appealed the ruling in the Texas court.Petrobras had also appealed the court decision to uphold the arbitration ruling.
Petrobras said on Friday it decided to pay the amount to end interests in the condemnation and to free up some assets that had been frozen by the Dutch arbitration as a way to force it to comply with the ruling.
Petrobras said the payment does not mean an end to the litigation, as it continues to defend its position.
(Reporting by Marcelo Teixeira; Editing by Leslie Adler) |
Some KS Energy (SGX:578) Shareholders Have Copped A 96% Share Price Wipe Out
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Long term investing is the way to go, but that doesn't mean you should hold every stock forever. We don't wish catastrophic capital loss on anyone. For example, we sympathize with anyone who was caught holdingKS Energy Limited(SGX:578) during the five years that saw its share price drop a whopping 96%. We also note that the stock has performed poorly over the last year, with the share price down 48%. The silver lining is that the stock is up 31% in about a week.
We really feel for shareholders in this scenario. It's a good reminder of the importance of diversification, and it's worth keeping in mind there's more to life than money, anyway.
Check out our latest analysis for KS Energy
Because KS Energy is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last five years KS Energy saw its revenue shrink by 39% per year. That's definitely a weaker result than most pre-profit companies report. So it's not that strange that the share price dropped 46% per year in that period. This kind of price performance makes us very wary, especially when combined with falling revenue. Ironically, that behavior could create an opportunity for the contrarian investor - but only if there are good reasons to predict a brighter future.
The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart.
Balance sheet strength is crucual. It might be well worthwhile taking a look at ourfreereport on how its financial position has changed over time.
KS Energy shareholders are down 48% for the year, but the market itself is up 4.1%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 46% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. You could get a better understanding of KS Energy's growth by checking outthis more detailed historical graphof earnings, revenue and cash flow.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss thisfreelist of companies that have proven they can grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on SG exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
What Kind Of Share Price Volatility Should You Expect For Hang Lung Group Limited (HKG:10)?
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Anyone researching Hang Lung Group Limited (HKG:10) might want to consider the historical volatility of the share price. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market.
Some stocks mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). However, Warren Buffett said 'volatility is far from synonymous with risk' in his 2014 letter to investors. So, while useful, beta is not the only metric to consider. To use beta as an investor, you must first understand that the overall market has a beta of one. A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.
Check out our latest analysis for Hang Lung Group
Looking at the last five years, Hang Lung Group has a beta of 1.37. The fact that this is well above 1 indicates that its share price movements have shown sensitivity to overall market volatility. If the past is any guide, we would expect that Hang Lung Group shares will rise quicker than the markets in times of optimism, but fall faster in times of pessimism. 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 Hang Lung Group fares in that regard, below.
Hang Lung Group is a fairly large company. It has a market capitalisation of HK$28b, which means it is probably on the radar of most investors. It takes deep pocketed investors to influence the share price of a large company, so it's a little unusual to see companies this size with high beta values. It may be that that this company is more heavily impacted by broader economic factors than most.
Beta only tells us that the Hang Lung Group share price is sensitive to broader market movements. This could indicate that it is a high growth company, or is heavily influenced by sentiment because it is speculative. Alternatively, it could have operating leverage in its business model. Ultimately, beta is an interesting metric, but there's plenty more to learn. In order to fully understand whether 10 is a good investment for you, we also need to consider important company-specific fundamentals such as Hang Lung Group’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Future Outlook: What are well-informed industry analysts predicting for 10’s future growth? Take a look at ourfree research report of analyst consensusfor 10’s outlook.
2. Past Track Record: Has 10 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 10's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how 10 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. |
Lance Bass to Officiate Jax Taylor and Brittany Cartwright's 'Vanderpump Rules' Wedding
Lance Bass is ready to help two Vanderpump Rules stars say "I do!" Two sources confirm to ET that the *NSYNC singer will officiate Jax Taylor and Brittany Cartwright’s wedding in Kentucky on June 29. Bass and Taylor are partners together in several business ventures, including Just Add X non-alcoholic mixers. When ET's Brice Sander spoke with the couple at the 4th Annual World Dog Day celebration in West Hollywood last month, they said wedding planning was going "really well." "We're just waiting for all of our RSVPs to come back in and then we're gonna start the seating charts," Brittany said. "That's, like, one of the hardest things. And then after that, we're pretty much golden." However, there were still a few important details left to iron out, like what the couple’s Pump Rules co-star, Tom Sandoval ’s, place is in the bridal party after his and Jax’s heated argument at the season seven reunion taping. At one point, Jax stormed off the reunion set and proclaimed that Tom was no longer his best man. "We’ll talk about it," Jax said last month. "We’re gonna talk about it. Of course, he’s in my wedding, he’s one of my best friends. I love him to death." "He’s definitely in the bridal party," Brittany clarified, though neither she nor Jax would say if he was still the best man. Another thing the couple still had to figure out is their married name. Jax’s legal name, Jason Cauchi, is included on the Beauty and the Beast -themed wedding invitations, and the couple told ET they’ll likely go by Jax’s legal moniker after the wedding, in part to honor his late father , Ronald Cauchi. “It’ll be our family name,” Jax said. “For sure, our kids will have my last name.” One guest who sadly may not be in attendance at the nuptials, however, is Vanderpump Rules matriarch Lisa Vanderpump. ET has learned that the reality star is taking a step back from filming, following the unexpected death of her mother , Jean, earlier this week. Vanderpump's reps confirmed the news to ET, saying the reality star was "shocked and devastated" by the news and asking for privacy as she coped with the loss. Story continues ET has also learned that Vanderpump Rules cameras are still shooting season eight with the rest of the cast, leading up to Jax and Brittany's wedding. Vanderpump may attend if she's feeling up to it, and if it does not conflict with any memorials for her mother. See more on the couple in the video below. RELATED CONTENT: Tom Sandoval and Ariana Madix Say Lisa Vanderpump Is 'Doing Great' After 'RHOBH' Exit (Exclusive) Andy Cohen Addresses Rumors Kathy Hilton Could Replace Lisa Vanderpump on 'RHOBH' Andy Cohen Responds to Fan Who Accuses Him of Not Sending Condolences to Lisa Vanderpump After Her Mom's Death Related Articles: Hollywood Bikini Bods Over 40 Biggest Celebrity Breakups of 2019 -- So Far! Celebrities in Their Underwear |
What Percentage Of S&P International Holding Limited (HKG:1695) Shares Do Insiders Own?
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The big shareholder groups in S&P International Holding Limited (HKG:1695) have power over the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.
S&P International Holding is a smaller company with a market capitalization of HK$178m, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutions don't own shares in the company. We can zoom in on the different ownership groups, to learn more about 1695.
Check out our latest analysis for S&P International Holding
Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.
There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to fund under management, so the institition does not bother to look closely at the company. Alternatively, there might be something about the company that has kept institutional investors away. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of S&P International Holding, for yourself, below.
S&P International Holding is not owned by hedge funds. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders own more than half of S&P International Holding Limited. This gives them effective control of the company. Given it has a market cap of HK$178m, that means they have HK$134m worth of shares. Most would argue this is a positive, showing strong alignment with shareholders. You canclick here to see if those insiders have been buying or selling.
With a 25% ownership, the general public have some degree of sway over 1695. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
It's always worth thinking about the different groups who own shares in a company. But to understand S&P International Holding better, we need to consider many other factors.
I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, backed by strong financial data.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Why Xiwang Property Holdings Company Limited (HKG:2088) Could Be Your Next Investment
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! I've been keeping an eye on Xiwang Property Holdings Company Limited ( HKG:2088 ) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe 2088 has a lot to offer. Basically, it is a company that has been able to sustain great financial health, trading at an attractive share price. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Xiwang Property Holdings here . Flawless balance sheet and undervalued 2088's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that 2088 manages its cash and cost levels well, which is a key determinant of the company’s health. Looking at 2088's capital structure, the company has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future. 2088's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. Investors have the opportunity to buy into the stock to reap capital gains, if 2088's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the real estate industry, 2088 is also trading below its peers, relative to earnings generated. This further reaffirms that 2088 is potentially undervalued. SEHK:2088 Price Estimation Relative to Market, June 21st 2019 Next Steps: For Xiwang Property Holdings, I've put together three essential factors you should further research: Future Outlook : What are well-informed industry analysts predicting for 2088’s future growth? Take a look at our free research report of analyst consensus for 2088’s outlook. Historical Performance : What has 2088's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 2088? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
California Puts Illegal Pot Shops (and Shoppers) on Notice
Marijuana shoppers are going to be getting a message from California regulators: Go legal.
Aiming to slow illegal pot sales that are undercutting the nation’s largest licensed market, California is kicking off a public information campaign—Get#weedwise—that encourages consumers to verify that their purchases are tested and legal.
Ads will be hitting social media sites and billboards promoting a state website where shoppers can quickly check if a shop is licensed—CApotcheck.com.
The campaign makes a simple argument: You don’t know what you’re getting if you buy illegal products.
One ad says, “What’s in your weed shouldn’t be a mystery. Shop licensed cannabis retailers only.”
The new push in the fight against illegal cannabis will be formally announced Friday at a Los Angeles forum featuring industry leaders, regulators, and elected officials.
The campaign “will directly impact consumer safety by clarifying that only cannabis purchased from licensed retailers has met the state’s safety standards,” Bureau of Cannabis Control Chief Lori Ajax said in a statement.
The ads are also intended to telegraph a warning to illicit shops and underground growers: Get licensed to operate in the legal market, or shut down.
At the forum organized by the United Cannabis Business Association, a trade group, the need for more aggressive enforcement against illegal operators came up repeatedly.
State Assemblyman Tom Lackey, a Republican from Palmdale, called the problem the “biggest failure right now in the system.”
“Regulations are merely suggestions without an enforcement arm,” he said, adding that the state and local governments are failing to work together.
California kicked off broad legal sales Jan. 1, 2018. But the illegal market has continued to thrive, in part because consumers can avoid steep tax rates by buying in unlicensed dispensaries.
But there’s a trade-off for saving a buck. Illegal products have not met strict state testing standards and could be tainted by mold, pesticides, heavy metals—even human waste.
“Do you know what’s hiding in your counterfeit edibles?” one ad asks.
Agency spokesman Alex Traverso said the ads are part of a three-pronged campaign to eventually corral illegal sales—the others are enforcement, including shutting down illegal shops and farms, and quickly licensing businesses that want to enter the legal economy.
The state is spending an initial $1.7 million on the campaign and hopes to “get it in front of as many eyeballs as possible,” Traverso said.
The state has been under pressure by the legal industry to do more to stop illegal sales. By some estimates, Los Angeles has hundreds of illegal shops and cultivation sites.
No one is predicting the campaign will bring illicit sales to a halt, but it’s being seen as another step to aid legal businesses as the state transitions from what was once a largely illegal economy into a multibillion-dollar, regulated marketplace.
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Will Genertec Universal Medical Group Company Limited's (HKG:2666) Earnings Grow In The Year Ahead?
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Since Genertec Universal Medical Group Company Limited (HKG:2666) released its earnings in December 2018, analyst consensus outlook appear cautiously optimistic, with profits predicted to increase by 20% next year, though this is noticeably lower than the previous 5-year average earnings growth of 26%. Currently with trailing-twelve-month earnings of CN¥1.4b, we can expect this to reach CN¥1.6b by 2020. Below is a brief commentary on the longer term outlook the market has for Genertec Universal Medical Group. For those interested in more of an analysis of the company, you canresearch its fundamentals here.
Check out our latest analysis for Genertec Universal Medical Group
The view from 4 analysts over the next three years is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
From the current net income level of CN¥1.4b and the final forecast of CN¥2.2b by 2022, the annual rate of growth for 2666’s earnings is 17%. This leads to an EPS of CN¥1.31 in the final year of projections relative to the current EPS of CN¥0.79. This high rate of growth of revenue squeezes margins, as analysts predict an upcoming margin contraction from the current 31% to 21% by the end of 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Genertec Universal Medical Group, there are three pertinent aspects you should look at:
1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Future Earnings: How does Genertec Universal Medical Group'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-Growth Alternatives: Are there other high-growth stocks you could be holding instead of Genertec Universal Medical Group? Exploreour interactive list of stocks with large growth potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Trump Approved Iran Strikes Knowing Body Count Would Be High
Alex Wong President Donald Trump approved preparations for military strikes against Iranfully aware that dozens or more Iranians might die as a result, two senior Trump administration officials and another source familiar with the situation tell The Daily Beast. To many observers, including some in his own administration, this appeared to be at odds with Trumps account of Thursdays deliberations; the president claimed that he abruptly halted the attack minutes before it was set to occur. In a series of tweets on Friday morning, the president stated that the U.S. military was cocked and loaded on Thursday night to hit Iran before he changed his mind, stating that 10 minutes before the strike he stopped it after being informed by a General of the potential loss of 150 lives. The presidents Friday tweets caused widespread confusion within Trumpworld, with some interpreting the tweets to mean that Trump wasnt told, or didnt ask, about a potential body count until minutes before the strikes would have taken place. But that wasnt the case, as The Washington Post first reported . Trump was initially briefed on Thursday for military options to retaliate against Iran for downing a U.S. surveillance drone. One of the things his advisers discussed with him was the potential for a high Iranian body count. With the possible death toll made clear, the president approved the preparations for striking Iran. Yes, he was briefed on it earlier in the day, a senior administration official said. Inside the U.S.-Iran Drone War The military has a standard in which the president is briefed on a potential strikethe battle damage assessment is included in that, added a former national security official involved in past briefings. Its always part of the package. And that includes possible military and civilian casualties. White House spokespeople declined to comment on the record for this report. The Pentagon declined to comment. Later on Friday, Trump fed the confusion further, telling NBC News Chuck Todd that he hadnt given a final approval to a military strike against Iran at alleven though he tweeted that the attack was 10 minutes out. Story continues I thought about it for a second and I said, you know what, they shot down an unmanned drone, plane, whatever you want to call it, and here we are sitting with a 150 dead people that would have taken place probably within a half an hour after I said go ahead," Trump said. "And I didnt like it
I didnt think it was proportionate." The series of events were the first indication that the president had seriously considered military strikes against Irana move he has for weeks publicly shied away from. Just Thursday, Trump walked back a tweet, in which he said Iran had made a big mistake for shooting down an unmanned American drone. House Armed Services Committee Chairman Adam Smith (D-WA) attended a briefing with the president at the White House Thursday with other congressional leaders. We talked in great depth about what they felt the appropriate response would be, Smith said. The gist was, the president was really wrestling with it. On the one hand, certainly you want to hold Iran accountable for this; on the other hand, nobody wants this to spin out of control. Smith said he was concerned that the White House was not consulting enough people when it came to Iran. The meeting yesterday was incredibly helpful. It was the first one hes had. Im chairman of the Armed Services Committee, was ranking member before that, two-plus years, its the first time Ive met with anyone at the White House, Smith said. I wish the [national security council] had more discussions. I wish they met more frequently with leaders. Its unclear if the president is considering striking Iran at all in the near future. But two former Trump White House officials told The Daily Beast that they feared that if the president saw TV pundits knocking his decision to pull backincluding those on his favorite channel Fox News it would increase the likelihood the president would actually end up confronting Iran militarily, and soon. Trump hates being portrayed as weak, these former officials added. Over the last several days the Foundation for Defense of Democracies, a Washington, D.C. think tank known for its hawkish approach to Iran, wrote the White House and the State Department with guidance on how to handle the most recent attacks on tankers in the Gulf of Oman and the shooting down of an American drone. The message to the administration: Continue the so-called maximum pressure campaign, which includes crippling the Iranian economy through sanctions and cutting off Tehrans access to the financial markets. Administration officials told The Daily Beast Friday that they were preparing to continue implementing that effort by announcing a new round of sanctions on Tehran. Lawmakers on Capitol Hill were briefed this week on Iran not only by administration officials but also by former Obama administration officials, including Wendy Sherman, the lead American negotiator on the nuclear deal, who often keep in touch with the Iranians. Tucker Carlson Tells Trump in Private: No War With Iran "We need to unambiguously seek to de-escalate tensions with Iran, said Jarrett Blanc, a former Obama administration official in the State Department who worked on the Iran nuclear deal. There's no justification in our national security interests to test Irans willingness to absorb military confrontation with the US. We need to get ourselves out of this situation. Amid the ongoing tensions between Washington and Tehran, the Trump administration has sent some of its top officials to the Middle East and Europe to shore up support for not only its stated maximum pressure campaign against Iran, but also the forthcoming unveiling of the Middle East peace plan. The State Departments special representative for Iran, who testified in front of Congress about Iran earlier this week, is in the Middle East meeting with regional partners, including Saudi Arabia, the United Arab Emirates, and Bahrain. with additional reporting by Sam Brodey and Justin Baragona Read more at The Daily Beast. Got a tip? Send it to The Daily Beast here Get our top stories in your inbox every day. Sign up now! Daily Beast Membership: Beast Inside goes deeper on the stories that matter to you. Learn more. |
Citi CEO: In an Age of Fintech Disruption, Don't Sleep on the Bank Branch
To thrive in the digital age, big banks need a two-pronged approach that spans the traditional and the new: a broad physical branch network that caters to Baby Boomers and a robust online (and mobile) presence for Generation X and Millennials. Sure, financial technology—or “fintech”—disrupters will pick their spots and target specific channels such as fat credit card processing fees. But the zealot’s view that “banks are screwed and just don’t know it” is wrong: Challengers will face a stiff hurdles to become bona fide banks. And if you want to mold the financial colossus of the future, don’t even think about using today’s banks as your model––emulate the best customer service of the superstar companies in industries as diverse as retailing and ride-hailing.
Those are a few of the strategic insights thatCitigroupCEO Michael Corbat shared last week at Brainstorm Finance,Fortune‘s inaugural finance conference, held in the oceanside hamlet of Montauk, N.Y.Fortuneexecutive editor Adam Lashinsky interviewed the banking executive in the closing session of the conference; here are what I’ll call Corbat’s Big Five: the trends and best practices that he views as guiding the future of financial services.
Citi has long been handicapped versusBank of America,J.P. MorganandWells Fargobecause of its small consumer footprint. Citi missed out on most of the merger mania that started in the 1980s while its Big Three rivals feasted; its key failure in creating a national presence was losing Wachovia to Wells Fargo during the financial crisis. Giant branch networks are extremely valuable because they’re a magnet for super-low cost checking deposits that banks can lend at, even in today’s low rate environment, for lucrative loans, especially on credit card balances.
Corbat wants Citi to start catching up. The plan: Recruit customers who already do business with the bank. “We have a bank today with 700 branches that are predominantly located in six cities,” he said in Montauk. “Compare that to Chase, Wells, or B of A that have branch counts in the thousands.” But Citi does operate a national consumer franchise, he added: credit cards. “Today, 28 million people carry the Citicard, so we know what you spend on and what your bank is, and you probably get American Airline miles or other affinity awards from Citi.” But fewer than 10% of those plastic customers bank with Citi.
That’s a fat target for Corbat, who’s using digital marketing to show credit card customers how they could could, for example, reap richer rewards by shifting their banking to Citi. Corbat says the initiative started just six months ago and remains a pilot, but adoption rates are so high that in the first quarter, Citi attracted $1 billion in deposits from new customers while barely tapping the reservoir of credit card holders who now bank elsewhere.
Lashinsky asked Corbat to weigh the assertion that there are two kinds of banks, “the ones that know they’re screwed, and the ones that don’t know they’re screwed.”
“You’re screwed if you’re in denial,” Corbat responded. “We’re absolutely not in denial. The next chapter is being written as we speak, and it’s digitally led.”
Still, the executive defended the traditional banking feature most frequently attacked by the fintech crowd: branches. “My kids are 26 and 30 and they’re saying all the time, ‘Dad, branches, get rid of them!'” Corbat said. But that kind of disruption would fatally undermine the big banks’ profitability, he argued. Branches serve baby boomers, the cohort that currently controls most of America’s wealth. “The Millennials are coming and they will dictate the future,” he said, “but the vast majority of the profitability of banking today is driven by the worldwide baby boom era.”
According to Corbat, “You have to provide two [customer] experiences at the same time: the truly digital experience where they open their phone to look at their balance or use Zelle [to transfer money], but they also like having their branch and a person to speak to.”
That dynamic forces financial institutions to run effectively two banks—”one that meets the needs of those who want a truly digital experience,” he said, “and an analog bank.” Shuttering the physical part of the business and playing fully into a fintech future means “we’d lose a significant amount of our bank customers,” he added.
Corbat pointed out that the ATM, first commercialized by Citi in 1977, didn’t eliminate (or even reduce) the legions of bank branches, as many financial futurists predicted at the time. “We have 60,000 ATMs today, but the first year the branch count in America actually declined [over that entire period] was last year,” he said.
Yes, branches will play a declining role moving forward, Corbat acknowledged. But the decline will be slower than fintech zealots believe. Yet sticking to the status quo will prove fatal, Corbat said. The financial institutions that best foresee and navigate the shift to digital without losing high net worth boomers will be the winners. “I’m not prepared to lock all the branch doors,” he said, “but there will be a point where the nature of physical presence and branches will probably change materially.”
Corbat believes fintech challengers will target select products that have long been exclusively supplied by banks. But that’s not the same thing as becoming full-fledged banks, he said. “What you’ve got going on in banking is dis-aggregation of certain channels like payments,” he said. For a retail giant likeAmazon, hammering down the cost of processing credit card payments—fees that come out of the retailer’s pocket—is a natural goal. “Take [credit card fees] on $150 billion in sales—2% when everyone swipes or uses the card,” he said. “You run the math on that. I’m sure [Amazon] would like to get in there and figure out a way to dis-intermediate that and save that.”
Fintech challengers to mainstream banks will succeed in bringing greater speed and efficiency, not to mention lower costs, to areas such as retail payments and cross-border money transfers. But what happens when a fintech company wants to combine a wide range of services to directly challenge incumbents? “The trick is, you dis-aggregate to create value, and then re-aggregate—and as you re-aggregate, the world changes,” he said. “Because in order to take deposits [and lend], you need to be a licensed institution. That’s the rubicon that people need to decide if they want to cross.” Corbat noted that the industry is currently in the midst of the dis-aggregation or unbundling phase as the challengers attack incumbents piece by piece. It’s impossible to predict what the look and feel of a direct fintech challenge to an incumbent bank, he said.
The big news story during the conference? An announcementthat a consortium led by marquee playersfromFacebooktoVisaare backing a new global cryptocurrency called Libra. Asked if Citi had been asked to join the group, Corbat said that “Facebook did not approach us or to my knowledge any of the other banks.” Though Corbat said he’s a “true believer” in cryptocurrencies and their underlying blockchain technology, Citi can’t enter the cryptocurrency realm because of regulation.
“The challenge with cryptocurrencies is the opaqueness as to the sources of the money,” he said, noting that regulated institutions must rise to anti-money laundering standards and the Bank Secrecy Act of 1970. “It would be outside our ability to take or send those monies on behalf [of people who hold them.]”
“With all due respect to the great banks or great fintechs,” Corbat said, there’s no use in showing up to work and striving to be best in class—that is, being as good as the best banks. The class has changed. “We need to match the best-in-life experience, because that’s the expectation of people today,” he said. “People don’t look at things and say, ‘From a bank experience, that’s great!’ They look at their Amazon experience, their Uber experience, that are best in life, that reduce friction time money and hassle.”
Like his big-bank CEO peers, Corbat faces one of the toughest challenges in American capitalism: maintaining a highly profitable legacy model (that would undermine profits if abandoned) while simultaneously anticipating the needs of a new generation of customers. For Citi’s part, investors aren’t optimistic: It now carries a puny price-to-earnings multiple of just 10, meaning markets think that its currently strong earnings per share will actuallydropin the future.
If Corbat can reverse those dour expectations, Citi will go on a roll. Onstage atFortuneBrainstorm Finance, it was clear that he plans to hold onto tradition and the profits it generates without remaining in the status quo. It’s a flexible, forward-looking strategy. The question is whether those skills will be enough versus fierce competition.
—Brainstorm Finance 2019:Read all coverage from our inaugural conference
—Bank of America CEO: “We want acashless society”
—Tala CEO: HowFacebook’s Libra cryptocurrencycan help companies scale
—Charles Schwab CEO: Actually, we’rekilling it with millennials
—Listen to our new audio briefing,Fortune500 Daily
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Does Market Volatility Impact Buddy Technologies Limited's (ASX:BUD) Share Price?
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If you own shares in Buddy Technologies Limited (ASX:BUD) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. In finance, Beta is a measure of volatility. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. 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 mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. To make good use of it you must first know that the beta of the overall market is one. 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 Buddy Technologies
With a beta of 1.04, (which is quite close to 1) the share price of Buddy Technologies has historically been about as voltile as the broader market. While history does not always repeat, this may indicate that the stock price will continue to be exposed to market risk, albeit not overly so. Beta is worth considering, but it's also important to consider whether Buddy Technologies is growing earnings and revenue. You can take a look for yourself, below.
With a market capitalisation of AU$83m, Buddy Technologies is a very small company by global standards. It is quite likely to be unknown to most investors. It doesn't take much money to really move the share price of a company as small as this one. That makes it somewhat unusual that it has a beta value so close to the overall market.
Since Buddy Technologies has a beta close to one, it will probably show a positive return when the market is moving up, based on history. If you're trying to generate better returns than the market, it would be worth thinking about other metrics such as cashflows, dividends and revenue growth might be a more useful guide to the future. In order to fully understand whether BUD is a good investment for you, we also need to consider important company-specific fundamentals such as Buddy Technologies’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Financial Health: Are BUD’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here.
2. Past Track Record: Has BUD 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 BUD's historicalsfor more clarity.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
These Factors Make EnGro Corporation Limited (SGX:S44) An Interesting Investment
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on EnGro Corporation Limited ( SGX:S44 ) due to its excellent fundamentals in more than one area. S44 is a company that has been able to sustain great financial health, trading at an attractive share price. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on EnGro here . Excellent balance sheet and good value S44's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that S44 has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. S44 appears to have made good use of debt, producing operating cash levels of 1.18x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. S44's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts' consensus forecast growth be correct. Also, relative to the rest of its peers with similar levels of earnings, S44's share price is trading below the group's average. This further reaffirms that S44 is potentially undervalued. SGX:S44 Intrinsic value, June 21st 2019 Next Steps: For EnGro, I've compiled three pertinent factors you should look at: Future Outlook : What are well-informed industry analysts predicting for S44’s future growth? Take a look at our free research report of analyst consensus for S44’s outlook. Historical Performance : What has S44's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of S44? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Are Dividend Investors Getting More Than They Bargained For With Soilbuild Business Space REIT's (SGX:SV3U) Dividend?
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Today we'll take a closer look at Soilbuild Business Space REIT (SGX:SV3U) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments.
With a six-year payment history and a 8.7% yield, many investors probably find Soilbuild Businessce REIT intriguing. It sure looks interesting on these metrics - but there's always more to the story . Some simple analysis can reduce the risk of holding Soilbuild Businessce REIT for its dividend, and we'll focus on the most important aspects below.
Click the interactive chart for our full dividend analysis
Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Soilbuild Businessce REIT paid out 123% of its profit as dividends, over the trailing twelve month period. Unless there are extenuating circumstances, from the perspective of an investor who hopes to own the company for many years, a payout ratio of above 100% is definitely a concern.
Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. With a cash payout ratio of 123%, Soilbuild Businessce REIT's dividend payments are poorly covered by cash flow. Cash is slightly more important than profit from a dividend perspective, but given Soilbuild Businessce REIT's payouts were not well covered by either earnings or cash flow, we would definitely be concerned about the sustainability of this dividend.
Remember, you can always get a snapshot of Soilbuild Businessce REIT's latest financial position,by checking our visualisation of its financial health.
Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. Looking at the data, we can see that Soilbuild Businessce REIT has been paying a dividend for the past six years. Its dividend has not fluctuated much that time, which we like, but we're conscious that the company might not yet have a track record of maintaining dividends in all economic conditions. During the past six-year period, the first annual payment was S$0.03 in 2013, compared to S$0.053 last year. This works out to be a compound annual growth rate (CAGR) of approximately 9.7% a year over that time.
Soilbuild Businessce REIT has been growing its dividend at a decent rate, and the payments have been stable despite the short payment history. This is a positive start.
The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. In the last five years, Soilbuild Businessce REIT's earnings per share have shrunk at approximately 3.0% per annum. If earnings continue to decline, the dividend may come under pressure. Every investor should make an assessment of whether the company is taking steps to stabilise the situation.
We'd also point out that Soilbuild Businessce REIT issued a meaningful number of new shares in the past year. Regularly issuing new shares can be detrimental - it's hard to grow dividends per share when new shares are regularly being created.
To summarise, shareholders should always check that Soilbuild Businessce REIT'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 a concern to see that the company paid out such a high percentage of its earnings and cashflow as dividends. Earnings per share have been falling, and the company has a relatively short dividend history - shorter than we like, anyway. There are a few too many issues for us to get comfortable with Soilbuild Businessce REIT from a dividend perspective. Businesses can change, but we would struggle to identify why an investor should rely on this stock for their income.
You can also discover whether shareholders are aligned with insider interests bychecking our visualisation of insider shareholdings and trades in Soilbuild Businessce REIT stock.
If you are a dividend investor, you might also want to look at ourcurated list of dividend stocks yielding above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Is Soilbuild Business Space REIT (SGX:SV3U) A Strong Dividend Stock?
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Could Soilbuild Business Space REIT (SGX:SV3U) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. Unfortunately, it's common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments.
In this case, Soilbuild Businessce REIT likely looks attractive to dividend investors, given its 8.7% dividend yield and six-year payment history. We'd agree the yield does look enticing. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this.
Explore this interactive chart for our latest analysis on Soilbuild Businessce REIT!
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. Looking at the data, we can see that 123% of Soilbuild Businessce REIT's profits were paid out as dividends in the last 12 months. A payout ratio above 100% is definitely an item of concern, unless there are some other circumstances that would justify it.
We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Soilbuild Businessce REIT paid out 123% of its free cash last year. Cash flows can be lumpy, but this dividend was not well covered by cash flow. Cash is slightly more important than profit from a dividend perspective, but given Soilbuild Businessce REIT's payments were not well covered by either earnings or cash flow, we are concerned about the sustainability of this dividend.
Consider gettingour latest analysis on Soilbuild Businessce REIT's financial position here.
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. Looking at the data, we can see that Soilbuild Businessce REIT has been paying a dividend for the past six years. The company has been paying a stable dividend for a while now, which is great. However we'd prefer to see consistency for a few more years before giving it our full seal of approval. During the past six-year period, the first annual payment was S$0.03 in 2013, compared to S$0.053 last year. Dividends per share have grown at approximately 9.7% per year over this time.
The dividend has been growing at a reasonable rate, which we like. We're conscious though that one of the best ways to detect a multi-decade consistent dividend-payer, is to watch a company pay dividends for 20 years - a distinction Soilbuild Businessce REIT has not achieved yet.
Examining whether the dividend is affordable and stable is important. However, it's also important to assess if earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. In the last five years, Soilbuild Businessce REIT's earnings per share have shrunk at approximately 3.0% per annum. If earnings continue to decline, the dividend may come under pressure. Every investor should make an assessment of whether the company is taking steps to stabilise the situation.
We'd also point out that Soilbuild Businessce REIT issued a meaningful number of new shares in the past year. Trying to grow the dividend when issuing new shares reminds us of the ancient Greek tale of Sisyphus - perpetually pushing a boulder uphill. Companies that consistently issue new shares are often suboptimal from a dividend perspective.
Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. It's a concern to see that the company paid out such a high percentage of its earnings and cashflow as dividends. Earnings per share have been falling, and the company has a relatively short dividend history - shorter than we like, anyway. Using these criteria, Soilbuild Businessce REIT looks quite suboptimal from a dividend investment perspective.
You can also discover whether shareholders are aligned with insider interests bychecking our visualisation of insider shareholdings and trades in Soilbuild Businessce REIT stock.
Looking for more high-yielding dividend ideas? Try ourcurated list of dividend stocks with a yield above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Boston rains cash on Mayor Pete
Boston is raining cash on Pete Buttigiegs presidential campaign, despite having two home-state candidates in the 2020 Democratic primary. In his latest foray into Sen. Elizabeth Warren and Rep. Seth Moultons Massachusetts backyard, Buttigieg raised close to $1 million Thursday during a visit to Boston, according to several people familiar with his fundraising. The 37-year-old South Bend, Ind., mayor held two fundraisers a grassroots event and a big-ticket dinner at Fenway Park. The fundraiser was hosted by Jack Connors Jr., a Democrat who chaired GOP Gov. Charlie Bakers reelection campaign; Sharon McNally, president of Camp Harbor View; and Bryan Rafanelli, an event planner, prominent gay political donor and Hillary Clinton ally. Buttigieg, who had already held several fundraisers in and around Boston this election cycle, plans to return to Massachusetts over the Fourth of July holiday to raise money on Cape Cod. Earlier this year, Buttigieg raised close to $150,000 at a fundraiser hosted at the Boston home of Rafanelli and his partner, Mark Walsh. His latest cash haul comes as the 2020 field gets ready to close the books on the second fundraising quarter of the year, which ends June 30. His campaign has told top donors he raised $7 million in the month of April alone and putting up a big fundraising number could solidify Buttigiegs place as a top-tier contender. The candidate known as Mayor Pete has popularity in Boston that is the envy of local pols. He drew more than 1,000 people to Northeastern University in early April, just as he was gaining momentum, and packed 850 people into the Somerville Theatre for a grassroots fundraiser weeks later. Buttigieg is one of the few top-tier presidential candidates holding traditional fundraisers this year. Warren swore off holding big-dollar events, even as her home state functions as a piggy bank for other 2020 Democrats. Former Vice President Joe Biden held two fundraisers in Boston at the beginning of June, and California Sen. Kamala Harris has been courting donors in Boston as well. Story continues Buttigieg raised more than $162,000 from Massachusetts zip codes in the first quarter of 2019, largely from Boston, its wealthy suburbs and areas near Cape Cod. Harris raised around $127,000 from Massachusetts zip codes in the first quarter, and Warren raised around $273,000 from zip codes in her home state in that time frame, which ended March 31. Next month, Buttigieg has a half-dozen New England fundraisers planned. Hell raise money in Provincetown on July 5, then hold two events in Nantucket and two events on Martha's Vineyard the next day. Several days later, Buttigieg will hold an evening reception in Holderness, N.H. The hosts of Thursday night's fundraiser had said their goal was to raise $1 million when they sent out an invitation last month. We believe that Mayor Pete Buttigieg just might be the right person to turn the ship around. He is the first to say that his candidacy is improbable but there is something about him that inspires courage, hope and optimism, hosts wrote in that invitation. Around 100 people attended the big dollar event tickets cost $2,800 each which was held in a suite overlooking home plate at Fenway Park. Buttigieg, who took questions for a half-hour, spoke about civil rights, abortion rights, the cost of college, deficit reduction and the recent police shooting in South Bend, according to an attendee. Buttigieg also held a grassroots event at John Hancock Hall in Boston, attended by about 500 people. He was introduced by former Houston Mayor Annise Parker, who is head of the LGBTQ Victory Fund, a gay-focused political action committee. Ticket prices ranged from $25 to $1,000 for that event. Daniel Strauss contributed to this report. |
Do Investors Have Good Reason To Be Wary Of UOL Group Limited's (SGX:U14) 2.4% Dividend Yield?
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Is UOL Group Limited (SGX:U14) a good dividend stock? How would you know? Dividend paying companies with growing earnings can be highly rewarding in the long term. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments.
With a 2.4% yield and a nine-year payment history, investors probably think UOL Group looks like a reliable dividend stock. While the yield may not look too great, the relatively long payment history is interesting. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this.
Explore this interactive chart for our latest analysis on UOL Group!
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. In the last year, UOL Group paid out 34% of its profit as dividends. 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.
We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Unfortunately, while UOL Group pays a dividend, it also reported negative free cash flow last year. While there may be a good reason for this, it's not ideal from a dividend perspective. It's positive to see that UOL Group's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
As UOL Group has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A quick way to check a company's financial situation uses these two ratios: net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. UOL Group is carrying net debt of 4.51 times its EBITDA, which is getting towards the upper limit of our comfort range on a dividend stock that the investor hopes will endure a wide range of economic circumstances.
We calculated its interest cover by measuring its earnings before interest and tax (EBIT), and dividing this by the company's net interest expense. UOL Group has interest cover of more than 12 times its interest expense, which we think is quite strong.
Consider gettingour latest analysis on UOL Group's financial position here.
Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. Looking at the last decade of data, we can see that UOL Group paid its first dividend at least nine years ago. The dividend has been quite stable over the past nine years, which is great to see - although we usually like to see the dividend maintained for a decade before giving it full marks, though. During the past nine-year period, the first annual payment was S$0.10 in 2010, compared to S$0.17 last year. This works out to be a compound annual growth rate (CAGR) of approximately 6.4% a year over that time.
The dividend has been growing at a reasonable rate, which we like. We're conscious though that one of the best ways to detect a multi-decade consistent dividend-payer, is to watch a company pay dividends for 20 years - a distinction UOL Group has not achieved yet.
Examining whether the dividend is affordable and stable is important. However, it's also important to assess if earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. Over the past five years, it looks as though UOL Group's EPS have declined at around 13% a year. Declining earnings per share over a number of years is not a great sign for the dividend investor. Without some improvement, this does not bode well for the long term value of a company's dividend.
Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. First, we like UOL Group's low dividend payout ratio, although we're a bit concerned that it paid out a substantially higher percentage of its free cash flow. Second, earnings per share have been in decline, and the dividend history is shorter than we'd like. With this information in mind, we think UOL Group may not be an ideal dividend stock.
Given that earnings are not growing, the dividend does not look nearly so attractive. Businesses can change though, and we think it would make sense to see whatanalysts are forecasting for the company.
We have also put together alist of global stocks with a market capitalisation above $1bn and yielding more 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
How Chinese Food and Beverage Group Limited (HKG:8272) Can Impact Your Portfolio Volatility
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If you own shares in Chinese Food and Beverage Group Limited (HKG:8272) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. In finance, Beta is a measure of volatility. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. The first type is company specific volatility. Investors use diversification across uncorrelated stocks to reduce this kind of price volatility across the portfolio. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market.
Some stocks mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. Beta is a widely used metric to measure a stock's exposure to market risk (volatility). Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. The first thing to understand about beta is that the beta of the overall market is one. A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.
Check out our latest analysis for Chinese Food and Beverage Group
Looking at the last five years, Chinese Food and Beverage Group has a beta of 1.6. The fact that this is well above 1 indicates that its share price movements have shown sensitivity to overall market volatility. If the past is any guide, we would expect that Chinese Food and Beverage Group shares will rise quicker than the markets in times of optimism, but fall faster in times of pessimism. Beta is worth considering, but it's also important to consider whether Chinese Food and Beverage Group is growing earnings and revenue. You can take a look for yourself, below.
With a market capitalisation of HK$32m, Chinese Food and Beverage Group is a very small company by global standards. It is quite likely to be unknown to most investors. Relatively few investors can influence the price of a smaller company, compared to a large company. This could explain the high beta value, in this case.
Beta only tells us that the Chinese Food and Beverage Group share price is sensitive to broader market movements. This could indicate that it is a high growth company, or is heavily influenced by sentiment because it is speculative. Alternatively, it could have operating leverage in its business model. Ultimately, beta is an interesting metric, but there's plenty more to learn. In order to fully understand whether 8272 is a good investment for you, we also need to consider important company-specific fundamentals such as Chinese Food and Beverage Group’s financial health and performance track record. I urge you to continue your research by taking a look at the following:
1. Financial Health: Are 8272’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here.
2. Past Track Record: Has 8272 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 8272's historicalsfor more clarity.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
How Does Investing In Chinese Food and Beverage Group Limited (HKG:8272) Impact The Volatility Of Your Portfolio?
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Anyone researching Chinese Food and Beverage Group Limited (HKG:8272) might want to consider the historical volatility of the share price. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market.
Some stocks see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated price movements. Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. To make good use of it you must first know that the beta of the overall market is one. A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.
See our latest analysis for Chinese Food and Beverage Group
Looking at the last five years, Chinese Food and Beverage Group has a beta of 1.6. The fact that this is well above 1 indicates that its share price movements have shown sensitivity to overall market volatility. If this beta value holds true in the future, Chinese Food and Beverage Group shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. Many would argue that beta is useful in position sizing, but fundamental metrics such as revenue and earnings are more important overall. You can see Chinese Food and Beverage Group's revenue and earnings in the image below.
Chinese Food and Beverage Group is a noticeably small company, with a market capitalisation of HK$32m. Most companies this size are not always actively traded. Relatively few investors can influence the price of a smaller company, compared to a large company. This could explain the high beta value, in this case.
Since Chinese Food and Beverage Group 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 Chinese Food and Beverage Group’s financial health and performance track record. I urge you to continue your research by taking a look at the following:
1. Financial Health: Are 8272’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here.
2. Past Track Record: Has 8272 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 8272's historicalsfor more clarity.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Bitcoin Breaks $10,000 for First Time Since March 2018
Bitcoin (BTC) has continued its steady rally in price over the past three months to break $10,000 today for the first time in over a year, according toCoin360.
Market visualization courtesy ofCoin360
Bitcoin broke the $10,000 mark today after trading in the $3,000-$4,000 range for the first four months of this year. As of press time, Bitcoin is up 6.53% on the day and trading at$10,153.
Bitcoin 1-year price chart. Source:Coin360
Bitcoin’s recent price rally has seen commentators like Fundstrat’s Tom Lee predict new record prices for the crypto in the future, as Cointelegraphreportedon June 19.
Also this week, the bitcoin hash rate — the total computing power of the bitcoin network —hitnew all-time highs. Bitcoin breaking a multi-year high, the growth in hash rate can be taken as a measure of how much interest there is inminingthe coin.
• ETH Hits 10-Month High as Crypto Markets See Solid Green
• Bitcoin Breaks $9,300 as US Stock Market Sees Minor Uptrend
• Bitcoin Holds $9,100 Support While Top 20 Coins Trade Sideways
• Bitcoin Worth Over $9,200 as Top Cryptos See Growth |
How Does Investing In Global Digital Creations Holdings Limited (HKG:8271) Impact The Volatility Of Your Portfolio?
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Anyone researching Global Digital Creations Holdings Limited (HKG:8271) might want to consider the historical volatility of the share price. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. The first type is company specific volatility. Investors use diversification across uncorrelated stocks to reduce this kind of price volatility across the portfolio. The second sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market.
Some stocks see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated price movements. Beta is a widely used metric to measure a stock's exposure to market risk (volatility). Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. The first thing to understand about beta is that the beta of the overall market is one. A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.
See our latest analysis for Global Digital Creations Holdings
Given that it has a beta of 0.90, we can surmise that the Global Digital Creations Holdings share price has not been strongly impacted by broader market volatility (over the last 5 years). This means that -- if history is a guide -- buying the stock would reduce the impact of overall market volatility in many portfolios (depending on the beta of the portfolio, of course). Many would argue that beta is useful in position sizing, but fundamental metrics such as revenue and earnings are more important overall. You can see Global Digital Creations Holdings's revenue and earnings in the image below.
Global Digital Creations Holdings is a rather small company. It has a market capitalisation of HK$219m, which means it is probably under the radar of most investors. It is not unusual for very small companies to have a low beta value, especially if only low volumes of shares are traded. Even when they are traded more actively, the share price is often more susceptible to company specific developments than overall market volatility.
Since Global Digital Creations Holdings is not heavily influenced by market moves, its share price is probably far more dependend on company specific developments. It could pay to take a closer look at metrics such as revenue growth, earnings growth, and debt. In order to fully understand whether 8271 is a good investment for you, we also need to consider important company-specific fundamentals such as Global Digital Creations Holdings’s financial health and performance track record. I urge you to continue your research by taking a look at the following:
1. Financial Health: Are 8271’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here.
2. Past Track Record: Has 8271 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 8271's historicalsfor more clarity.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
'The Muppet Movie' turns 40: The story behind 'The Rainbow Connection'
When Paul Williams and Kenny Ascher were hired by Jim Henson to write the songs for The Muppet Movie, they started with Kermit's opening number. That song, "The Rainbow Connection," would become a signature ballad for the Muppets , and over the years has been covered by everyone from Willie Nelson to Gwen Stefani. But before the song could become a classic, it had to have a title. In honor of The Muppet Movie 's 40th birthday (it opened in the U.S. on June 22, 1979) and its return to theaters this summer , Williams sat down with Yahoo Entertainment and explained how the phrase "the rainbow connection" was born. Watch that video above, then scroll down to watch the extended cut , in which Williams for the first time tells the stories behind every single song from The Muppet Movie. Kermit sings "The Rainbow Connection" in The Muppet Movie , 1979. (Photo: Henson Associates courtesy of Everett Collection) "Oddly enough, everything came except that title until the very end," Williams, now serving as the president of ASCAP , said of The Rainbow Connection. When he and Ascher started working on Kermit's big number, they had "When You Wish Upon a Star" from Disney's Pinocchio in mind. "We wanted to do something for Kermit that had that kind of impactful moment," said Williams, "where you you saw into the depth of his soul, where you realized that he had an inner life, and that he thought about spiritual and weighty things. You know, a deep-thinking frog." Paul Williams attends the 2017 Pre-Grammy Gala and Salute to Industry Icons Honoring Debra Lee at The Beverly Hilton Hotel on February 11, 2017 in Beverly Hills, Calif. (Photo: Scott Dudelson/Getty Images) During a meeting with Muppets creator and Kermit performer Jim Henson, puppeteer Frank Oz and Muppet Movie producer David Lazer, Williams learned that the film opened with pre-fame Kermit sitting at home in his swamp, strumming a banjo. So the songwriters started brainstorming things that Kermit could see in a swamp that would inspire a song. "There's water. There's air. There's refracted light. There's
rainbows!" said Williams. "Oddly enough, we actually wrote ourselves into a terrible corner, when you think about it. Why are there so many songs about rainbows, and what's on the other side? Williams and Ascher actually finished the whole song, including the lines "Someday we'll find it
the lovers, the dreamers, and me" without the title. They were searching for a way to tie the rainbow theme back to the chorus, or as Williams explained to his then-wife over dinner: "We're looking for a rainbow connection. Her response: "Why don't you call it 'The Rainbow Connection?' You've said it like five times in a row!" Story continues The finale of The Muppet Movie includes a reprise of "The Rainbow Connection." (Photo: Henson Associates courtesy of Everett Collection) The eight-song Muppet Movie soundtrack charted on the Billboard Top 100 and won a Grammy in 1980. "The Rainbow Connection" was a breakout hit, nominated for an Oscar for Best Original Song. How to explain its longevity? Williams told Yahoo that "there are magical elements to that song that I don't feel we had anything to do with putting in there." Or maybe it was simply "the right place at the right time, and the right frog singing." Here, some trivia behind the Muppet Movies other songs. Watch our extended conversation with Williams below for even more insight. "Movin' Right Along" Kermit and Fozzie's classic road song contains one of Williams's proudest rhyming couplets: "Hey L.A., where have you gone? Send someone to fetch us, we're in Saskatchewan." "I'm Going to Go Back There Someday" Gonzo is Williams' favorite Muppet, and his ballad is close to Williams' heart. As a skydiver himself, Williams thinks of both himself and Gonzo as "landlocked birds," and he loved the idea of Gonzo going back to the sky. Jim Henson added Gonzo's balloon-flight scene to the script to support the song, and in his will, Henson included it among the songs to be played at his funeral. "Never Before and Never Again" Piggy's dramatic love song was written for Frank Sinatra and recorded by Johnny Mathis, but ultimately given to the pig herself. "I thought she sang it beautifully," said Williams. "Can You Picture That?" One of the Muppets' rare forays into what Williams calls "deep, hardcore rock and roll," the song performed by Dr. Teeth and the Electric Mayhem also reflects one of Williams' personal beliefs: "When we dwell on something, we help to create it." Watch the full interview with Paul Williams: Read more from Yahoo Entertainment: 'Emmet Otter's Jug-Band Christmas' turns 40: An oral history of Jim Henson's holiday Muppet musical This is why Jim Henson was the greatest boss ever Secrets of the Muppet Guys Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle's newsletter. |
Fans are convinced Khloe Kardashian's new look is surgically enhanced
NBCUNIVERSAL UPFRONT EVENTS -- 2019 NBCUniversal Upfront in New York City on Monday, May 13, 2019 -- Pictured: (l-r) Kendall Jenner, Kourtney Kardashian, Khloe Kardashian, "Keeping up with The Kardashians" on E! Entertainment -- (Photo by: Heidi Gutman/NBCUniversal) Everyone knows that Khloe Kardashian is a whizz with the contour brush, but even her staunchest fans aren’t sure that her now look is down to make-up. So what’s all the fuss about? The entrepreneur has posted a picture on Instagram, which has left fans unsure of exactly which Kardashian sister they are looking at. View this post on Instagram A post shared by Khloé (@khloekardashian) on Jun 20, 2019 at 9:07pm PDT One commenter said: “Where is Khloé? This picture isn’t her,” while another added “I honestly couldn’t tell which Kardashian this was for a moment, I had to look at the name.” All seemed to believe that what made Khloe look so different from usual was her nose. with one fan exclaiming, “Giiiiirl i adore u but what the hell did you do to your nose.” Fans comment on Khloe Kardashian's Instagram It’s not the first time, fans have questioned whether the Kardashian sister has opted for cosmetic surgery to enhance her already stunning looks. Back in 2017, Khloe posted a picture of herself with a puppy, which had people again questioning if she’d gone under the surgeon’s knife. View this post on Instagram A post shared by Khloé (@khloekardashian) on Nov 9, 2017 at 4:13pm PST But the conspirators were slapped down by make-up fans, who were quick to jump into commend the new look. “New nose contour. She rounded the tip instead of just contouring the sides and bottom. Interesting.” Read more: Fans think something is 'off' with this photo of Khloe Kardashian: 'What happened to your nose?' It’s not surprising though that some have been confused by her changing looks. Khloe loves to pepper her Instagram with pictures of herself looking vastly different. But her current look of strong brows, nude lip, centred parted slightly wavy blonde locks and contoured nose is one she returns to time and time again. View this post on Instagram A post shared by Khloé (@khloekardashian) on Jul 20, 2018 at 1:32pm PDT In the past she’s even taken posted photos without any make-up at all, just to prove to her naysayers that her looks are all her own. Read more: Khloe Kardashian proves that she hasn't had a nose job in make-up free pictures She’s currently collaborating on a line of cosmetics with her sister Kyle, so is no doubt trying out some of the looks on herself. |
Despite Its High P/E Ratio, Is AGTech Holdings Limited (HKG:8279) Still Undervalued?
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This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). We'll apply a basic P/E ratio analysis to AGTech Holdings Limited's (HKG:8279), to help you decide if the stock is worth further research. Looking at earnings over the last twelve months,AGTech Holdings has a P/E ratio of 76.49. In other words, at today's prices, investors are paying HK$76.49 for every HK$1 in prior year profit.
View our latest analysis for AGTech Holdings
Theformula for price to earningsis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for AGTech Holdings:
P/E of 76.49 = HK$0.48 ÷ HK$0.0063 (Based on the year to March 2019.)
The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. That 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.
Generally speaking the rate of earnings growth has a profound impact on a company's P/E multiple. Earnings growth means that in the future the 'E' will be higher. That means 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.
AGTech Holdings's 86% EPS improvement over the last year was like bamboo growth after rain; rapid and impressive.
The P/E ratio indicates whether the market has higher or lower expectations of a company. The image below shows that AGTech Holdings has a significantly higher P/E than the average (11.8) P/E for companies in the it industry.
Its relatively high P/E ratio indicates that AGTech Holdings shareholders think it will perform better than other companies in its industry classification. The market is optimistic about the future, but that doesn't guarantee future growth. So investors should delve deeper. I like to checkif company insiders have been buying or selling.
One drawback of using a P/E ratio is that it considers market capitalization, but not the balance sheet. In other words, it does not consider any debt or cash that the company may have on the balance sheet. In theory, a company can lower its future P/E ratio by using cash or debt to invest in growth.
Spending on growth might be good or bad a few years later, but the point is that the P/E ratio does not account for the option (or lack thereof).
AGTech Holdings has net cash of HK$2.0b. This is fairly high at 36% of its market capitalization. That might mean balance sheet strength is important to the business, but should also help push the P/E a bit higher than it would otherwise be.
With a P/E ratio of 76.5, AGTech Holdings is expected to grow earnings very strongly in the years to come. The excess cash it carries is the gravy on top its fast EPS growth. So based on this analysis we'd expect AGTech Holdings 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.' We don't have analyst forecasts, but you might want to assessthis data-rich visualizationof earnings, revenue and cash flow.
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. |
Why Revolve Group Stock Was Sliding Today
Shares ofRevolve Group(NYSE: RVLV)were moving in reverse today, after the recent IPO finally seemed to run out of gas in its post-IPO surge. There was no specific news out on the online retailer. Rather, the stock seemed to fall as buyers and sellers search for an equilibrium point, as is typical following an IPO.
Shares closed down 12.3% on the day.
Image source: Revolve.
After pricing its IPO at $18 a share, Revolve Groupsoaredon its opening day, climbing 89%, and has steadily moved higher from there, peaking at an intraday high of $48.36 on June 19. Since then, the stock has fallen over the past two days, a sign investors may believe it had been overbought, as momentum may have carried it all the way to $48.
The reversal comes after fellow debutante and highly anticipated newcomerSlacksplashedon the market yesterday, perhaps stealing some of Revolve's thunder. Even after the recent slide, Revolve is trading at a lofty P/E ratio of around 90, though its profits seem to give it a leg up over most IPOs.
Not only is Revolve new to the market, but the company also has a unique business model. The online clothing retailer counts on social media influencers to drive its business as it markets specifically to a younger audience of millennials and Generation Z. Thus far, that strategy seems to be working. as the company brought in $30.7 million in profit last year and revenue grew 25% to $498.7 million. Those results may explain why the stock is still more than double its IPO price even after today's sell-off.
Investors should expect more volatility at least until the company's second-quarter earnings comes out, which won't happen for at least a month. In the meantime, expect the stock to bounce around as more investors try to wrap their heads around the next-gen clothing concept.
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Jeremy Bowmanhas 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. |
Calculating The Intrinsic Value Of Central China Real Estate Limited (HKG:832)
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Today we will run through one way of estimating the intrinsic value of Central China Real Estate Limited (HKG:832) by taking the expected future cash flows and discounting them to their present 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. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model.
Check out our latest analysis for Central China Real Estate
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 begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
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 (CN\u00a5, Millions)", "2019": "CN\u00a5394.03", "2020": "CN\u00a5892.29", "2021": "CN\u00a51.89k", "2022": "CN\u00a51.62k", "2023": "CN\u00a51.47k", "2024": "CN\u00a51.39k", "2025": "CN\u00a51.34k", "2026": "CN\u00a51.31k", "2027": "CN\u00a51.30k", "2028": "CN\u00a51.31k"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x2", "2020": "Analyst x2", "2021": "Analyst x2", "2022": "Est @ -14.07%", "2023": "Est @ -9.25%", "2024": "Est @ -5.87%", "2025": "Est @ -3.51%", "2026": "Est @ -1.86%", "2027": "Est @ -0.7%", "2028": "Est @ 0.11%"}, {"": "Present Value (CN\u00a5, Millions) Discounted @ 13.92%", "2019": "CN\u00a5345.87", "2020": "CN\u00a5687.51", "2021": "CN\u00a51.28k", "2022": "CN\u00a5964.16", "2023": "CN\u00a5768.07", "2024": "CN\u00a5634.61", "2025": "CN\u00a5537.50", "2026": "CN\u00a5463.06", "2027": "CN\u00a5403.63", "2028": "CN\u00a5354.70"}]
Present Value of 10-year Cash Flow (PVCF)= CN¥6.44b
"Est" = FCF growth rate estimated by Simply Wall St
The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 2%. We discount the terminal cash flows to today's value at a cost of equity of 13.9%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = CN¥1.3b × (1 + 2%) ÷ (13.9% – 2%) = CN¥11b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= CN¥CN¥11b ÷ ( 1 + 13.9%)10= CN¥3.04b
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¥9.47b. The last step is to then 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¥3.47. However, 832’s primary listing is in China, and 1 share of 832 in CNY represents 1.141 ( CNY/ HKD) share of SEHK:832,so the intrinsic value per share in HKD is HK$3.95.Compared to the current share price of HK$3.36, the company appears about fair value at a 15% 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.
Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Central China Real Estate 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 13.9%, which is based on a levered beta of 2. 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. For Central China Real Estate, There are three additional factors you should further examine:
1. Financial Health: Does 832 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 832'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 832? 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 HKG 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. |
Pentagon secretly struck back against Iranian cyberspies targeting U.S. ships
WASHINGTON — On Thursday evening, U.S. Cyber Command launched a retaliatory digital strike against an Iranian spy group that supported last week’s limpet mine attacks on commercial ships, according to two former intelligence officials. The group, which has ties to the Iranian Revolutionary Guard Corps, has over the past several years digitally tracked and targeted military and civilian ships passing through the economically important Strait of Hormuz, through which pass 17.4 million barrels of oil per day. Those capabilities, which have advanced over time, enabled attacks on vessels in the region for several years. Though sources declined to provide any further details of the retaliatory cyber operation, the response highlights how the Persian Gulf has become a staging ground for escalating digital — as well as conventional — conflict, with both the United States and Iran trying to get the upper hand with cyber capabilities. The retaliatory cyber response follows several weeks of mounting tension in the region, which appeared set to boil over after last week’s attacks on two oil tankers in the Gulf. U.S. officials blamed Iran for the attacks and threatened to strike back if U.S. interests in the region were harmed. Then, on Thursday, Iranians shot down a $240 million U.S. military drone. Image: Getty Creative In response, President Trump initially authorized — but then decided against — targeted military strikes on Thursday night. He said in a series of tweets Friday morning that he pulled back before any missiles were launched when he learned 150 Iranians might die. Meanwhile, multiple private U.S. cyber intelligence firms have reported attempts by Iranian hackers in recent weeks to infiltrate American organizations. U.S. officials told the Wall Street Journal they fear heightened escalations not only in physical space but in cyberspace as well. The National Security Council declined to comment on the Iranian cyber group or the U.S. Cyber Command response. The National Security Agency, U.S. Central Command and the Navy all directed Yahoo News to U.S. Cyber Command for comment. Cyber Command did not immediately respond to a request for comment. Heather Babb, a Pentagon spokeswoman, told Yahoo News that “as a matter of policy and for operational security, we do not discuss cyberspace operations, intelligence or planning.” Story continues Iran’s cyber capabilities are not the most sophisticated, at least compared to the United States’, but they are getting better. Tehran’s ability to gather information and unleash offensive operations has developed significantly in the last decade or so, particularly after Iranian centrifuges at the Natanz uranium enrichment plant were struck by a malicious computer worm created by U.S. and Israeli intelligence and first revealed in 2010. “After the Stuxnet event, Iran really cranked up its capability,” said Gary Brown, who served as the first senior legal counsel for U.S. Cyber Command and is currently a professor on cyber law at the National Defense University. Brown cited Iran’s cyberattacks on global financial institutions, Saudi Aramco and the Sands Casino. While unfamiliar with current activities, Brown told Yahoo News that Cyber Command has long been interested in Iranian cyber capabilities and “undoubtedly they’re continuing to track them.” An RQ-4 Global Hawk unmanned aircraft. (Photo: U.S. Air Force/Bobbi Zapka/Reuters) The Persian Gulf and the Strait of Hormuz, the narrow bodies of water separating Iran from the United Arab Emirates and Bahrain, which is home to the U.S. Navy’s 5th Fleet, are obvious intelligence targets for Iran. “Frankly it’s going to be standard ops for them to track who’s going in and out of the Gulf, to track all U.S. and allied warships going through, whether it’s the aircraft carriers or whatever, they’re going to track that very, very closely,” said retired Army Maj. Gen. Mark Quantock, who was Central Command’s director of intelligence from 2016 to 2017. How Iran managed to gather that information, given its lack of traditional military resources, at least compared to the West, has been relatively creative. In recent years, according to John Hultquist, the director of intelligence for threat intelligence firm FireEye, Iranian cyberspies have targeted U.S. Navy sailors, particularly those in the 5th Fleet, to gather information. One method those operators used was to assume false personas on social media for “honey-potting” or catfishing operations. “They use social media to look for vulnerable sailors on ships ... our Navy ships and probably other people’s navy ships too,” said James Lewis, a cyber expert at the Washington, D.C.-based Center for Strategic and International Studies. The Iranians would pretend to be attractive young women looking to connect with a “lonely seaman” to gather intelligence about ship movements, according to three former U.S. intelligence officials familiar with the operations. The attempts weren’t limited to Facebook; some of the efforts extended to Pinterest and other niche social networking sites. There were “many” successful examples of these Iranian cyber honey-pot operations, said one former intelligence official. “They were doing it at scale.” Naval personnel would divulge information of various levels of sensitivity — such as when and where they were traveling — while ignorant of the true identity of their interlocutors, said the former official. In addition to helping the Iranians track the movement of U.S. ships and personnel, these operations also helped them build out organizational charts of U.S. military units, the former official said. Iran’s targeting efforts in this area became notably more sophisticated in recent years, according to the former intelligence official. Cruder past efforts — featuring profile pictures of women in bikinis, who would immediately ask U.S. military personnel for information on when they were coming to port — gave way to a subtler, more time-consuming approach. The Iranians employed pictures of attractive, but fully clothed, women who would strike up online conversations with American servicemen over weeks, developing the fictitious relationships in order to nudge them into volunteering the desired intelligence. “There was a pretty substantial campaign going all the way up to [U.S. Navy] leadership at one point,” said Hultquist. FireEye has analyzed one Iranian group it calls Newscaster that has frequently used fake social media profiles to gather information and has been tied to at least one destructive attack, he told Yahoo News. The Department of Justice revealed a similar Iranian intelligence-gathering method in its recent indictment against former Air Force Special Agent and counterintelligence officer Monica Witt, who defected to Iran in August 2013. After Witt defected, Iranian officers targeted current and former U.S. government officials using “fictitious and imposter personas” created on Facebook and through email, according to the indictment. Improvements to Iran’s targeting programs over social media coincided roughly with Witt’s defection, and her insights into U.S. practices almost certainly helped catalyze some of these changes, said two former officials. A still image from a U.S. military handout video purporting to show Iran’s Revolutionary Guard removing an unexploded limpet mine from the side of the Kokuka Courageous on June 13. (Photo: U.S. military handout via Reuters) However, social media was not the only method the cyberspies used to keep track of ships in the region. For example, they would track U.S. naval movements in the region by hacking into ship-tracking websites as well, according to one former intelligence officer. Iranian intelligence officers are also capable of hijacking digital systems used in drones, and potentially even in ships, to spoof the GPS location of the device and plug in false coordinates. “They’ve been thinking a lot about drone capture because we’ve been flying drones over them for years,” said Lewis. In 2011, Iran claimed to have achieved this capability and said it redirected an American drone to Iran’s shores. Two former intelligence officials confirmed Iran is capable of doing this and noted that this tactic could be useful in fooling a ship’s automatic tracking system. Iran collects intelligence on ships passing through the Strait of Hormuz not just to identify their locations, but also to enable attacks, if necessary, according to multiple former intelligence officials. “If I have tactical information about when that ship is coming, I can launch a rocket attack,” said a former intelligence official. Iran’s cyber operatives facilitated intelligence gathering used in multiple ship attacks over the past several years, including in 2017, when Houthi rebels attached bombs to remote-controlled boats targeting vessels belonging to the UAE and Saudi Arabia, according to multiple former intelligence officials interviewed by Yahoo News. For Iran, projecting strength into the Strait and keeping a close eye on maritime targets is of utmost importance. “It doesn’t entirely surprise [me] to find out that there’s yet another way in which Iran is trying to find ways to flex its muscles, in particular regarding shipping in the Gulf,” said Matthew Levitt, director of the counterterrorism program at the Washington Institute for Near East Policy. “Iran is trying to respond to the U.S. maximum pressure campaign, in particular, now that still tougher measures have been taken to constrict the amount of oil Iran is able to ship and the amount of money it can get for it.” ___ Read more from Yahoo News: Trump says Iran’s ‘attack’ on U.S. drone was likely not intentional AOC accuses Trump administration of creating ‘concentration camps’ U.S. ‘probably had excellent presidents who were gay,’ Buttigieg says Trump wants his next press secretary to be a cable news ‘street fighter’ Orlando Sentinel endorses ‘not Donald Trump’ for president |
Bitcoin Price Tops $10K for First Time Since 2018
Bitcoin’s price soared above $10,000 on cryptocurrency exchanges for the first time in 15 months. The price hopped the $10K barrier at 7:35pm Eastern Time.
At press time, the top cryptocurrency by market capitalization is trading at $$10,080.49 – the highest level since March 8, 2018 – representing month-to-date gains in excess of 13 percent, according to CoinDesk’sBitcoin Price Index. On a 24-hour basis, BTC is outshining most top 10 cryptocurrencies with 7 percent gains.
The price rise is backed by a 12 percent jump in trading volumes. As per data source CoinMarketCap, $21 billion worth of bitcoins have traded across cryptocurrency exchanges in the last 24 hours.Messari, however, is reporting the “Real 10” volume at $1.4 billion.
Related:Where to Find the Rising Stars of Bitcoin’s Developer Community
With the move above $10,000, bitcoin has erased more than 40 percent of the sell-off seen in twelve months to December 2018. Further, prices look set to end the second quarter with triple-digit gains. As of writing, BTC is up more than 130 percent on a quarter-to-date basis.
Looking forward, BTC may continue to shine bright as the cryptocurrency is set toundergomining reward halving sometime in May 2020.
The process designed to curb inflation by reducing the reward for mining on bitcoin’s blockchain is repeated every four years and leads to supply deficit.
Related:Wright Has Not Disclosed Full Bitcoin Holdings Per Court Order, Says Plaintiff’s Representation
The upcoming reward halving may leave a bigger supply deficit if Facebook’s cryptocurrency Libra ends up boosting bitcoin’s appeal and adoption rateas predictedby some observers.
On Tuesday, the social media giantlaunchedthe white paper tomixed reviewswith pundits it a net positive development for bitcoin and cryptocurrencies in general.
While bitcoin’s long-term prospects look bright, the cryptocurrency may see a pullback in the short-term. After all, prices have rallied more than 140 percent in the last 2.5-months and bulls usually take a breather following such stellar gains.
Disclosure:The author holds no cryptocurrency at the time of writing
Hot air balloon imagevia Shutterstock; charts byTradingView
• Bitcoin Price Eyes $10K After Erasing 40% of Bear Market Drop
• At-Home Crypto Miner Coinmine Now Pays Out Bitcoin |
Is the Air Force Ready to Go All In on Kratos' Drones?
The Air Force is thinking about buying more than two dozen high-tech drones fromKratos Defense & Security Solutions(NASDAQ: KTOS), a potential final step toward a major order that's key to the bull case for this mid-tier defense tech company.
Will Roper, the Air Force's assistant secretary for acquisition, told reporters gathered at the Paris Air Show that the service is thinking of buying 20 to 30 of Kratos' advanced XQ-58A Valkyrie drones to ramp up testing and experimentation with the platform. The comments come just three months after the Valkyriecompleted a successful first test flightwith the Air Force Research Laboratory, and they mark the most concrete comments yet from a military official about the Pentagon's interest in the platform.
A full-fledged order of 100 or more drones is still probably a year off and is far from certain, but the progress is validation of Kratos' pursuit of unmanned programs. The company, which in recent years has been stung bymissed earningsanda critical report from a short-seller, appears to finally be progressing toward its destination.
The Air Force already operates a number of drone platforms designed primarily to provide surveillance or for missile launches, but the Valkyrie marks the beginning of a new, more sophisticated generation of unmanned planes. The company envisions swarms of Valkyrie drones flying into battle along side crewed aircraft, including theLockheed Martin-made F-35, to provide added firepower and to overwhelm and confuse enemy radar systems.
The Kratos XQ-58A Valkyrie during its second test flight. Image source: Air Force Photo by 2nd Lt. Randolph Abaya, 586 Flight Test Squadron.
An unmanned platform could be deployed to penetrate contested airspace, keeping piloted aircraft out of danger, and to help the Air Force generate more firepower at a relatively small cost. Kratos has estimated the Valkyrie will sell for less than $3 million apiece in a production run of at least 100 planes, compared with the$80 million-plus costfor a single F-35.
Roper told reporters he believes the mission for these drones could expand over time, with new sensors and weapons added. The Air Force is also working toward greater autonomy, with hopes that artificial intelligence will eventually allow the drones to learn and adapt in combat situations and respond to threats without command prompts.
Roper's comments come just days after Kratos said the Valkyrie had completed a second successful test, accomplishing all its objectives in a 71-minute flight. The drone is in the middle of a five-flight test sequence to evaluate its functionality, performance, and capabilities.
Steve Fendley, head of Kratos' unmanned operations, in a statement said that "with this most recent milestone, the readiness of the XQ-58A is accelerating and increasing the near-term application opportunities for the system."
The Air Force has made these so-called "loyal wingman" drones a priority, and while Kratos is out in front, it faces competition from larger contractors, includingBoeing(NYSE: BA). Kratos insists the Valkyrie is differentiated fromthe drone Boeing unveiled earlier this year in Australia, in part because the Valkyrie can launch without a runway, but the company's best strategy is to remain as far out in front as possible. The Boeing drone isn't expected to make its first flight until 2020.
For Kratos, getting a full production order for the Valkyrie would be a huge accomplishment. It could also be just the tip of the iceberg for the company. The plane is the first ofup to 10 tactical drone programsKratos has in the works to address various uses and missions, some classified.
Although it's unlikely they will all work as planned and end up as revenue producers, the company should be able to take what it's learned on the Valkyrie and apply it to these other programs, helping the company move the winners to market more quickly.
Kratos, a onetime wireless-infrastructure vendor that pivoted to become a government contractor over the past decade, has had a choppy run over the past 10 years. But as the Valkyrie has evolved from a promising idea to a potential Air Force priority, investors have taken notice.
KTOSdata byYCharts
Shares of Kratos are up about 90% over the past year and more than 400% over the past three years. They're also expensive relative to their defense rivals, trading at 3.7 times sales, compared with Boeing's 2.1 multiple and Lockheed Martin's 1.8.
With every passing month, it seems more likely Kratos will be able to cash in on its promise and justify its inflated multiple, and current holders should feel good owning the stock.
There still is the potential for added upside, assuming the Valkyrie and other drone programs remain on course. But it's hard to image the company's shares will enjoy another three-year period similar to their 400% gain since mid-2016. Kratos today is much less of a speculative stock than it used to be.
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With EPS Growth And More, CCID Consulting (HKG:8235) Is Interesting
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like CCID Consulting ( HKG:8235 ). Now, I'm not saying that the stock is necessarily undervalued today; but I can't shake an appreciation for the profitability of the business itself. 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. See our latest analysis for CCID Consulting CCID Consulting's Earnings Per Share Are Growing. 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. Who among us would not applaud CCID Consulting's stratospheric annual EPS growth of 46%, compound, over the last three years? While that sort of growth rate isn't sustainable for long, it certainly catches my attention; like a glint in the eye of my lover. I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats). The good news is that CCID Consulting is growing revenues, and EBIT margins improved by 4.4 percentage points to 21%, over the last year. Ticking those two boxes is a good sign of growth, in my book. In the chart below, you can see how the company has grown earnings, and revenue, over time. Click on the chart to see the exact numbers. Story continues SEHK:8235 Income Statement, June 21st 2019 CCID Consulting isn't a huge company, given its market capitalization of CN¥179m. That makes it extra important to check on its balance sheet strength . Are CCID Consulting Insiders Aligned With All Shareholders? As a general rule, I think it worth considering how much the CEO is paid, since unreasonably high rates could be considered against the interests of shareholders. For companies with market capitalizations under CN¥1.4b, like CCID Consulting, the median CEO pay is around CN¥1.5m. CCID Consulting offered total compensation worth CN¥1.3m to its CEO in the year to December 2018. That seems pretty reasonable, especially given its below the median for similar sized companies. CEO compensation is hardly the most important aspect of a company to consider, but when its reasonable that does give me a little more confidence that leadership are looking out for shareholder interests. I'd also argue reasonable pay levels attest to good decision making more generally. Is CCID Consulting Worth Keeping An Eye On? CCID Consulting's earnings per share have taken off like a rocket aimed right at the moon. Such fast EPS growth makes me wonder if the business has hit an inflection point (and I mean the good kind.) At the same time the reasonable CEO compensation reflects well on the board of directors. While I couldn't be sure without a deeper dive, it does seem that CCID Consulting has the hallmarks of a quality business; and that would make it well worth watching. 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 to check if CCID Consulting is trading on a high P/E or a low P/E , relative to its industry. You can invest in any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here is a list of companies with insider buying in the last three months. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor 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. |
MLB All-Star finalists: Bryce Harper misses the cut
Major League Baseball has announced the finalists that will appear on the final All-Star Game ballot, and Bryce Harper isn't one of them. (Getty Images) Major League Baseball’s latest attempt to increase interest in the All-Star Game is in full motion. On Friday, the results of the league’s three-week Primary phase of the 2019 MLB All-Star Ballot were announced. And the most shocking revelation is that Bryce Harper will not be on the final ballot. The Philadelphia Phillies outfielder was not among the top nine vote getters in the National League outfield, finishing behind the likes of Nick Markakis , Albert Almora Jr. and Kyle Schwarber . That means Harper will not be an All-Star starter. And the reality is, without a chance to start, it’s likely Harper will not be an All-Star at all for the first time since 2014. Harper has hit a disappointing .243/.357/.452 this season, with only 12 home runs. He leads the league with 94 strikeouts. Now that the fans have passed on electing Harper, it's unlikely the players or managers will either when it comes to selecting All-Star reserves. For those candidates who did make the cut, the voting slates will now be wiped clean. Fans will resume voting Wednesday, with the All-Star starters to be announced on June 27. Here’s the full list of finalists. You’ll notice there are surprising names at nearly every position. American League First Base • Luke Voit — New York Yankees • Carlos Santana — Cleveland Indians • C.J. Cron — Minnesota Twins Second Base • Tommy La Stella — Los Angeles Angels • Jose Altuve — Houston Astros • D.J. LeMahieu — New York Yankees Third Base • Alex Bregman — Houston Astros • Gio Urshela — New York Yankees • Hunter Dozier — Kansas City Royals Shortstop • Jorge Polanco — Minnesota Twins • Gleyber Torres — New York Yankees • Carlos Correa — Houston Astros Catcher • Gary Sanchez — New York Yankees • James McCann — Chicago White Sox • Robinson Chirinos — Houston Astros Designated Hitter • Nelson Cruz — Minnesota Twins • JD Martinez — Boston Red Sox • Hunter Pence — Texas Rangers Outfield • Mookie Betts — Boston Red Sox • George Springer — Houston Astros Story continues • Mike Trout — Los Angeles Angels • Michael Brantley — Houston Astros • Aaron Judge — New York Yankees • Austin Meadows — Tampa Bay Rays • Josh Reddick — Houston Astros • Eddie Rosario — Minnesota Twins • Joey Gallo — Texas Rangers National League First Base • Freddie Freeman — Atlanta Braves • Josh Bell — Pittsburgh Pirates • Anthony Rizzo — Chicago Cubs Second Base • Ozzie Albies — Atlanta Braves • Mike Moustakas — Milwaukee Brewers • Ketel Marte — Arizona Diamondbacks Third Base • Nolan Arenado — Colorado Rockies • Kris Bryant — Chicago Cubs • Josh Donaldson — Atlanta Braves Shortstop • Javier Baez — Chicago Cubs • Dansby Swanson — Atlanta Braves • Trevor Story — Colorado Rockies Catcher • Willson Contreras — Chicago Cubs • Brian McCann — Atlanta Braves • Yasmani Grandal — Milwaukee Brewers Outfield • Cody Bellinger — Los Angeles Dodgers • Christian Yelich — Milwaukee Brewers • Nick Markakis — Atlanta Braves • Charlie Blackmon — Colorado Rockies • Ronald Acuna Jr. — Atlanta Braves • Albert Almora Jr. — Chicago Cubs • Jason Heyward — Chicago Cubs • Kyle Schwarber — Chicago Cubs • Joc Pederson — Los Angeles Dodgers 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 |
Does The Seamless Green China (Holdings) Limited (HKG:8150) Share Price Tend To Follow The Market?
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Anyone researching Seamless Green China (Holdings) Limited (HKG:8150) might want to consider the historical volatility of the share price. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market.
Some stocks see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated price movements. Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). However, Warren Buffett said 'volatility is far from synonymous with risk' in his 2014 letter to investors. So, while useful, beta is not the only metric to consider. To use beta as an investor, you must first understand that the overall market has a beta of one. Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.
View our latest analysis for Seamless Green China (Holdings)
Given that it has a beta of 1.35, we can surmise that the Seamless Green China (Holdings) share price has been fairly sensitive to market volatility (over the last 5 years). Based on this history, investors should be aware that Seamless Green China (Holdings) 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 Seamless Green China (Holdings) fares in that regard, below.
With a market capitalisation of HK$75m, Seamless Green China (Holdings) is a very small company by global standards. It is quite likely to be unknown to most investors. It has a relatively high beta, suggesting it is fairly actively traded for a company of its size. Because it takes less capital to move the share price of a small company like this, when a stock this size is actively traded it is quite often more sensitive to market volatility than similar large companies.
Since Seamless Green China (Holdings) has a reasonably high beta, it's worth considering why it is so heavily influenced by broader market sentiment. For example, it might be a high growth stock or have a lot of operating leverage in its business model. In order to fully understand whether 8150 is a good investment for you, we also need to consider important company-specific fundamentals such as Seamless Green China (Holdings)’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Financial Health: Are 8150’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here.
2. Past Track Record: Has 8150 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 8150's historicalsfor more clarity.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
What Kind Of Share Price Volatility Should You Expect For Seamless Green China (Holdings) Limited (HKG:8150)?
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If you own shares in Seamless Green China (Holdings) Limited (HKG:8150) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. In finance, Beta is a measure of volatility. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. The first type is company specific volatility. Investors use diversification across uncorrelated stocks to reduce this kind of price volatility across the portfolio. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market.
Some stocks are more sensitive to general market forces than others. Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. To make good use of it you must first know that the beta of the overall market is one. A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.
View our latest analysis for Seamless Green China (Holdings)
Given that it has a beta of 1.35, we can surmise that the Seamless Green China (Holdings) share price has been fairly sensitive to market volatility (over the last 5 years). If this beta value holds true in the future, Seamless Green China (Holdings) shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. 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 Seamless Green China (Holdings) fares in that regard, below.
Seamless Green China (Holdings) is a noticeably small company, with a market capitalisation of HK$75m. Most companies this size are not always actively traded. Relatively few investors can influence the price of a smaller company, compared to a large company. This could explain the high beta value, in this case.
Beta only tells us that the Seamless Green China (Holdings) share price is sensitive to broader market movements. This could indicate that it is a high growth company, or is heavily influenced by sentiment because it is speculative. Alternatively, it could have operating leverage in its business model. Ultimately, beta is an interesting metric, but there's plenty more to learn. In order to fully understand whether 8150 is a good investment for you, we also need to consider important company-specific fundamentals such as Seamless Green China (Holdings)’s financial health and performance track record. I urge you to continue your research by taking a look at the following:
1. Financial Health: Are 8150’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here.
2. Past Track Record: Has 8150 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 8150's historicalsfor more clarity.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Boasting A 12% Return On Equity, Is Shimao Property Holdings Limited (HKG:813) A Top Quality Stock?
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While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. We'll use ROE to examine Shimao Property Holdings Limited (HKG:813), by way of a worked example.
Over the last twelve monthsShimao Property Holdings has recorded a ROE of 12%. Another way to think of that is that for every HK$1 worth of equity in the company, it was able to earn HK$0.12.
See our latest analysis for Shimao Property Holdings
Theformula for return on equityis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Shimao Property Holdings:
12% = CN¥8.8b ÷ CN¥105b (Based on the trailing twelve months to December 2018.)
Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. It is all earnings retained by the company, plus any capital paid in by shareholders. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets.
ROE looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the yearly profit. The higher the ROE, the more profit the company is making. So, all else being equal,a high ROE is better than a low one. That means it can be interesting to compare the ROE of different companies.
One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As is clear from the image below, Shimao Property Holdings has a better ROE than the average (9.1%) in the Real Estate industry.
That is a good sign. I usually take a closer look when a company has a better ROE than industry peers. One data point to check is ifinsiders have bought shares recently.
Companies usually need to invest money to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. That will make the ROE look better than if no debt was used.
It's worth noting the significant use of debt by Shimao Property Holdings, leading to its debt to equity ratio of 1.20. while its ROE is respectable, it is worth keeping in mind that there is usually a limit to how much debt a company can use. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
Return on equity is one way we can compare the business quality of different companies. Companies that can achieve high returns on equity without too much debt are generally of good quality. All else being equal, a higher ROE is better.
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to check this FREEvisualization of analyst forecasts for the company.
But note:Shimao Property Holdings may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Weekly Wrap – Central Banks, Stats, and Geopolitics Drove the Majors
The Stats It was a relatively quiet week on the economic calendar in the week ending 21 st June, A total of 55 stats were monitored throughout the week. Of the 55 stats, 27 came in below forecasts, with just 20 economic indicators coming in ahead of forecast. 8 stats were in line with forecasts in the week. Looking at the numbers, 32 of the stats reflected a deterioration from previous figures. Of the remaining 23, 18 stats reflected an upward trend. While the economic data was skewed to the negative, monetary policy ultimately defined the path of the Greenback and the majors. The U.S Dollar Index (“DXY”) slid by 1.39% in the week to 96.22. For the EUR, Draghi failed to jawbone the EUR in the week. The EUR ended the week up 1.44% to $1.1369 against the Dollar. Out of the U.S On the data front, key stats were skewed to the negative once again in the week. On the positive front, there were some better numbers from the housing sector, supported by the downward trend in mortgage rates. Weekly jobless claims also held relatively steady, with better than forecasted initial jobless claims. That was it on the positive front, however, with the rest of the stats disappointing. The NY Empire State and Philly FED Manufacturing Index numbers were particularly weak, with private sector activity also grinding to a halt. While the stats were skewed to the negative, it was ultimately the FED that delivered the knockout blow. The economic projections showed that a large number of FOMC members favored 2 rate cuts before the year-end. Inflation forecasts were also revised downwards. Outside of the stats, market sentiment towards the U.S – China trade war provided limited support as tensions rose in the Middle East. In the equity markets, the U.S majors saw green for a 3 rd consecutive week as record highs were revisited in the week. The NASDAQ led the way, rising by 3.01%. The S&P500 and Dow rose by 2.20% and by 2.41% respectively. Story continues Out of the UK It was a particularly busy week. On the economic calendar, key stats included inflation and retail sales figures. Following on from particularly hawkish Carney chatter last month, there was a material shift going into the 3 rd quarter. The annual rate of core inflation eased from 2.1% to 2%, while retail sales also softened, affirming the hoarding view. On the monetary policy front, the BoE revised economic growth forecasts downwards, forecasting zero growth for the 2 nd quarter. The BoE did shift on its forward guidance, however. Further rate rises were likely, but at a gradual and to a limited extent. This was the shift from Carney’s previous talk of a need for aggressive rate hikes to curb inflation. Monetary policy favored the Pound, however, with central banks elsewhere delivering the promise of monetary policy easing. The Pound ended the week up 1.18% to $1.2737. For the FTSE100, the stronger Pound limited the upside to just 0.84% for the week. The news of a Trump – Xi meeting at the G20 provided support to mining sectors. Rising tensions in the Middle East pressured risk sentiment at the end of the week, however, while supporting BP and Royal Dutch. Out of the Eurozone It was also a busy week. 1 st quarter Eurozone wage growth kicked off the week, with wage growth picking up from 2.3% to 2.5%. Stats out of Germany disappointed once more on Tuesday, with economic sentiment sliding in June. With the Eurozone’s ZEW consumer sentiment index also on the slide, the Eurozone’s flash consumer confidence index also slipped, according to figures released on Thursday. The highlight of the week for the EUR was a marginal improvement in private sector PMI numbers. Prelim June figures showed that private sector PMIs improved in both France and Germany. Germany’s manufacturing sector continued to contract, however. Of less influence in the week were finalized Eurozone inflation figures and April’s trade data, all of which were skewed to the negative. Outside of the numbers, Draghi delivered the promise of monetary policy support to pin back the EUR. The ECB also released its economic bulletin that continued to reflect downside risks, whilst also revising down growth for this year. In the equity markets, the weaker EUR failed to pin back the majors, which found support from central banks. The CAC40 rallied by 2.99%, with the DAX30 ending the week up by 2.01%. Elsewhere It was a particularly bullish week for the Aussie and Kiwi Dollars. The Aussie Dollar rose by 0.79% to $0.6926, while the Kiwi Dollar rallied by 1.49% to $0.6589. For the Aussie Dollar The gains came in spite of the stats being skewed towards the negative. House prices continued to slide in the 1 st quarter, according to figures released on Tuesday. Of greater significance, however, was the RBA meeting minutes, also released on Tuesday. While cutting rates in June, the RBA also talked of the possible need for another rate cut down the road. The combination of a dovish FED and a planned Trump – Xi meeting at the G20 next week delivered the upside. For the Kiwi Dollar Consumer sentiment held relatively steady in the 2 nd quarter, according to figures released on Tuesday. Of greater influence, however, was 1 st quarter GDP numbers. The New Zealand economy grew by 0.6% in the 1 st quarter, which was at the same pace as in the 4 th . With the FED talking of the need for as many as 2 rate cuts this year, the Kiwi managed to bounce back from $0.64 levels. For the Loonie It was also a busy week. May inflation and April retail sales figures on Wednesday and Friday delivered mixed results. Whilst inflationary pressures were on the rise, retail sales failed to impress. Of less influence were manufacturing sales and foreign security purchase numbers released earlier in the week. Outside of the stats, rising tensions in the Middle East provided the Loonie with plenty of support, as did monetary policy divergence. The Loonie ended the week up 1.43% to C$1.3222 against the Greenback. For the Japanese Yen Trade data on Wednesday and inflation and manufacturing PMI numbers on Friday raised further red flags. Exports tumbled by 7.8% in May, with Japan’s trade balance falling into a deficit, as the extended U.S – China trade war took a bite. Inflationary pressures eased further in May, with the annual rate of core inflation easing from 0.9% to 0.8%. On the policy front, however, the BoJ held steady. With rising tensions in the Middle East, there was plenty of support for the Yen on the week. For the week, the Japanese Yen rose by 1.14% to ¥107.32. Out of China There were no material stats to influence the global financial markets. Government support for the economy and hopes of progress on trade talks at next week’s G20 Summit were the positives. As a result, the CSI300 ended the week up 4.9% following the previous week’s 2.53% gain. This article was originally posted on FX Empire More From FXEMPIRE: Gold Extends Gains for the Fifth Day; Weak Dollar and Fed’s Cut Catalyzers GBP/JPY Price Forecast – British pound rolls over slightly Crude Oil Price Update – Strengthens Over $58.03, Weakens Under $57.29 GBP/USD Price Forecast – British pound rolls over Is Soybean Ready for Significant Gains? Coffee Gives Signals of Life Gold, Bitcoin and the USD – The Main Games in Town |
Okta Management Talks International Momentum, Headcount Growth, and More
Okta(NASDAQ: OKTA)impressed investors once again when it reported its latest quarterly results. Sharessurgedon the trading day following the identity-management company's fiscal first-quarter results, rising about 7%. Okta's revenue and non-GAAP loss per share were both much better than analysts' forecast for the period, as the company picked up traction with large customers.
For investors who want a closer look at Okta's strong momentum, the company'searnings callprovides some useful insight. These three excerpts, in particular, highlight notable drivers for revenue growth and one key area in which Okta is investing heavily to capture future growth.
Image source: Getty Images.
One growth driver prominently discussed in Okta's earnings release and during the call was the company's recent prowess at attracting larger customers. Customers with more than $100,000 in annual contract value increased 53% year over year -- an acceleration from 50% year-over-year growth in the fourth quarter of fiscal 2019.
But there are other key catalysts worth highlighting. One is Okta's growth internationally.
"Revenue from outside of the U.S. grew 60% and represented approximately 16% of our first-quarter revenue, compared to 15% in Q1 last year," said Okta CFO Bill Losch. "We continue to view our international business as a long-term growth driver and are investing to expand our international footprint."
Management is putting its money where its mouth is, as Okta announced a data center expansion in the Asia-Pacific region and a new office in Germany on the same day of its fiscal first-quarter earnings release.
While the bulk of Okta's sales come from the company's own salesforce, an increasing number of customer additions are the result of Okta's growing ecosystem of channel partners.
"While still in its early stages, the partner channel already contributes over a quarter of our business," Losch explained. "These channel partners provide Okta with a global reach and scale that we wouldn't be able to efficiently achieve on our own."
With such strong revenue growth, it's no surprise that Okta management sees some big opportunities ahead. Key strategic priorities for management are attracting the world's largest organizations, strengthening the network effect of its platform, and increasing its presence and capabilities with customer identity solutions.
Capitalizing on these opportunities, however, is no small task. This is why Okta will be hiring aggressively:
The headcount growth that we had in the first quarter was 40%. I think you should expect, that as we get into the second half of the year, that growth is actually going to accelerate. Because we feel like ... there are very strong strategic opportunities we want to capitalize on.
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Daniel Sparkshas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Okta. The Motley Fool has adisclosure policy. |
Is Shimao Property Holdings Limited (HKG:813) Potentially Undervalued?
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Shimao Property Holdings Limited (HKG:813), which is in the real estate business, and is based in Hong Kong, saw a significant share price rise of over 20% in the past couple of months on the SEHK. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Shimao Property Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists.
Check out our latest analysis for Shimao Property Holdings
According to my relative valuation model, the stock seems to be currently fairly priced. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Shimao Property Holdings’s ratio of 7.85x is trading slightly above its industry peers’ ratio of 6.3x, which means if you buy Shimao Property Holdings today, you’d be paying a relatively reasonable price for it. And if you believe Shimao Property Holdings should be trading in this range, then there isn’t really any room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since Shimao Property Holdings’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 97% over the next couple of years, the future seems bright for Shimao Property Holdings. 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?It seems like the market has already priced in 813’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at 813? Will you have enough conviction to buy should the price fluctuate below the true value?
Are you a potential investor?If you’ve been keeping tabs on 813, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for 813, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Shimao Property Holdings. You can find everything you need to know about Shimao Property Holdings inthe latest infographic research report. If you are no longer interested in Shimao Property Holdings, you can use our free platform to see my list of over50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Bitcoin Crests $10,000, Silencing Critics and Kicking Off Crypto Summer
ByCCN Markets: Propelled by increasing retail adoption bolstered byFacebook’sLibra announcement,bitcoinis officially over $10,000 across markets.
On Coinbase, where much retail adoption takes place, the price rose from just under $9,300 to nearly $10,000 by mid-afternoon. Bitcoin markets being open around the clock, the price finally touched $10,000 again on Friday evening.
Bitcoin crossed $10,000. | Source:TradingView
Read the full story on CCN.com. |
At HK$23.70, Is Shimao Property Holdings Limited (HKG:813) Worth Looking At Closely?
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Shimao Property Holdings Limited (HKG:813), which is in the real estate business, and is based in Hong Kong, received a lot of attention from a substantial price increase on the SEHK 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. However, what if the stock is still a bargain? Let’s take a look at Shimao Property Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists.
Check out our latest analysis for Shimao Property Holdings
The stock seems fairly valued at the moment according to my relative valuation model. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 7.85x is currently trading slightly above its industry peers’ ratio of 6.3x, which means if you buy Shimao Property Holdings today, you’d be paying a relatively fair price for it. And if you believe that Shimao Property Holdings should be trading at this level in the long run, there’s only an insignificant downside when the price falls to its real value. Although, there may be an opportunity to buy in the future. This is because Shimao Property Holdings’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. Shimao Property Holdings’s earnings over the next few years are expected to increase by 97%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
Are you a shareholder?813’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at 813? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor?If you’ve been keeping tabs on 813, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic forecast is encouraging for 813, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Shimao Property Holdings. You can find everything you need to know about Shimao Property Holdings inthe latest infographic research report. If you are no longer interested in Shimao Property Holdings, you can use our free platform to see my list of over50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Have Insiders Been Selling Royal Century Resources Holdings Limited (HKG:8125) Shares This Year?
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It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares inRoyal Century Resources Holdings Limited(HKG:8125).
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia Universitystudyfound that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
View our latest analysis for Royal Century Resources Holdings
In the last twelve months, the biggest single sale by an insider was when the , Zheng Juhua, sold HK$12m worth of shares at a price of HK$0.35 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (HK$0.081). So it is hard to draw any strong conclusion from it. Zheng Juhua was the only individual insider to sell over the last year.
Zheng Juhua ditched 81.4m shares over the year. The average price per share was HK$0.26. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Royal Century Resources Holdings insiders own about HK$15m worth of shares. That equates to 34% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
An insider sold Royal Century Resources Holdings shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy!I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow for free.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Solar Energy Has Record Start to 2019
Despite tariffs and federal government support for fossil fuels, the solar industry had a record first quarter of 2019 according to theSolar Market Insight Report 2019 Q2fromSEIAandWood Mackenzie Power & Renewables. The U.S. installed 2,674 megawatts (MW) of solar, up 10% from a year ago.
Within the report, we see strength in residential and utility-scale solar projects -- but the biggest surprise comes on the state level. Florida was the #1 installer of solar in the first quarter, surpassing California and showing potential for a huge new market.
Image source: Getty Images.
Residential solar installations were 603 MW in the first quarter, up 6% from a year ago. This bodes well for installers likeSunrun(NASDAQ: RUN)andVivint Solar(NYSE: VSLR), which require installations to flow through their businesses to stay afloat. What we won't know for a few weeks is if higher volumes are helping lower sales and marketing costs, which have been a challenge for the industry.
Utility solarsees no signs of slowing down, with 1,633 MW of installations in the quarter. Florida is driving a lot of growth, and Wood Mackenzie increased its five-year outlook for the state's utility-scale additions from 6,000 MW to 9,000 MW. Countrywide, the utility-scale forecast was increased by 1,200 MW in 2019 and 4,000 MW between now and 2023.
The one weak segment was non-residential, or commercial, solar. Installations were just 438 MW, down 18% from a year ago, as California, Massachusetts, and Minnesota made policy changes that affected the industry. This report lumps in community solar with commercial solar, so that can make the data a bit lumpy quarter to quarter.
California has led the country in solar installations for a long time, installing 2,599 MW in 2017 and 3,396 MW in 2018. The state slowed its pace early in 2019 to 538 MW in the first quarter. The big surprise came in Florida, where 860 MW were installed in the quarter compared to 758 MW in all of 2017 and 857 MW in 2018.
The big driver of Florida's growth is Florida Power & Light, a utility subsidiary ofNextEra Energy(NYSE: NEE). The utility announced 1,500 MW of solar procurement and could soon be one of the biggest solar utilities in the country, withplans to install 10,000 MW by 2030.
Florida still lags behind in residential and commercial solar installations. Solar leases weren't allowed until last year, and there are attempts to push back net metering by utilities. These barriers are slowly coming down, though, which should make Florida one of the top solar states for years to come.
Increased volume in the U.S. is incredibly positive for U.S. solar stocks.First Solar(NASDAQ: FSLR)andSunPower(NASDAQ: SPWR)are two of the biggest solar panel providers in the country, and should see strong demand in 2019 and beyond.
Residential installers like Sunrun, Vivint Solar, and SunPower also have to be pleased with growing volumes for small-scale solar systems, which have faced policy headwinds over the last two years.
For solar stocks overall, higher volumes are great news. Now the rubber will hit the road with earnings when companies have to prove that increased volume is helping margins, which hasn't always been the case in solar energy.
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Travis Hoiumowns shares of First Solar and SunPower. The Motley Fool recommends First Solar and NextEra Energy. The Motley Fool has adisclosure policy. |
Royal Century Resources Holdings Limited (HKG:8125) Insiders Have Been Selling
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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares inRoyal Century Resources Holdings Limited(HKG:8125).
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
See our latest analysis for Royal Century Resources Holdings
Over the last year, we can see that the biggest insider sale was by the , Zheng Juhua, for HK$12m worth of shares, at about HK$0.35 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of HK$0.081. So it may not tell us anything about how insiders feel about the current share price. Zheng Juhua was the only individual insider to sell over the last year.
Zheng Juhua divested 81.4m shares over the last 12 months at an average price of HK$0.26. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Royal Century Resources Holdings insiders own about HK$15m worth of shares. That equates to 34% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
An insider sold Royal Century Resources Holdings shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd think twice before buying!I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow for free.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
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. |
Australian Reserve Bank Official Advises Caution in Anticipation of Libra
Governor of the ReserveBankofAustralia(RBA), Philip Lowe, cautions thatFacebook’s announced virtual currency—Libra—may not attain mainstream usage in the near future, according to areportby Bloomberg on June 20
The report quotes Lowe as follows regarding Libra:
“There’s a lot of water under the bridge before Facebook’s proposal becomes something we’re using all the time [...] There are a lot of regulatory issues that need to be addressed and they’ve got to make sure there’s a solid business case, so we’ve got to be careful before we jump to conclusions.”
Lowe reportedly also criticized the top cryptocurrency by market cap, bitcoin (BTC), in 2017. The RBA governor is said to have complained that it rose to prominence due to “speculative mania” and further conjectured that criminals were likely more drawn to it than customers.
Libra and bitcoin aside, Lowe reportedly does not thinkcryptocurrencyis viable for Australia, due to the purported utility of its preexisting electronicpaymentsystem.
Lowe remarked:
“I have long thought that a kind of cryptocurrency would not take off in Australia because we already have a very, very efficient electronic payments system that allows anyone of us to make bank payments to another person in five seconds just knowing their mobile phone number.”
Asreportedby Cointelegraph on June 21, the RBA released a paper entitled ‘Cryptocurrency: Ten Years On,’ arguing that cryptocurrency would not achieve mainstream adoption in Australia.
Echoing the foregoing sentiments expressed by Lowe, the RBA paper’s abstract reads:
“This article examines why Bitcoin is unlikely to become a ubiquitous payment method in Australia, and summarises how subsequent cryptocurrencies have sought to address some of the shortcomings of Bitcoin – such as its volatility and scalability problems.”
Governor Lowe’s comments join a chorus of recent governmental reactions to Libra, including ambivalentcommentfrom the Chair of theUnited StatesFederal Reserve, as well as a statement from the chairman of theRussianState Duma Committee on Financial Markets that the Libra would not be legalized in Russia, as Cointelegraphreportedon June 19.
Cointelegraphreportedthat the U.S. Senate Banking Committee has scheduled hearings on Facebook’s cryptocurrency project for July 16.
• Facebook’s Crypto Project Will Be A Milestone According to RBC
• Ripple CEO: Bitcoin and XRP Aren’t Competitors — I’m Long BTC
• Facebook Has Not Applied for RBI Approval to Operate Libra in India: Report
• CME: Open Interest in Bitcoin Futures Contracts Hit All-Time High |
California to illegal pot shops: We're coming for you
LOS ANGELES (AP) California is planning to intensify its enforcement against the state's thriving illegal marijuana market, including launching an ad campaign Friday that urges consumers to seek out licensed shops with safe products. The state has been under pressure by the legal industry to do more to stop the illicit pot economy, which in Los Angeles and other cities often operates in plain sight. According to some estimates, up to 80 percent of sales in the state remain under the table, snatching profits from legal storefronts. "We are going to start having a more aggressive enforcement stance to come after the illegal market," Lori Ajax, the state's top cannabis regulator, said at an industry forum. The state announced it was kicking off a public information campaign Get #weedwise that encourages consumers to verify that their purchases are tested and legal. Ads will be hitting social media sites and billboards promoting a state website where shoppers can quickly check if a shop is licensed CApotcheck.com. The campaign makes a simple argument: You don't know what you're getting if you buy illegal products. One ad says, "What's in your weed shouldn't be a mystery. Shop licensed cannabis retailers only." The campaign "will directly impact consumer safety by clarifying that only cannabis purchased from licensed retailers has met the state's safety standards," Ajax said in an earlier statement. The ads are also intended to telegraph a warning to illicit shops and underground growers: Get licensed to operate in the legal market, or shut down. The need for tougher enforcement came up repeatedly at the forum, which was organized by the United Cannabis Business Association, a trade group. State Assemblyman Tom Lackey, a Republican from Palmdale, called the problem the "biggest failure right now in the system." "Regulations are merely suggestions without an enforcement arm," he said, adding that the state and local governments are failing to work together. Nicole Elliott, senior adviser on cannabis to Gov. Gavin Newsom, said state funds for enforcement would nearly double in the fiscal year than begins July 1, to $113 million. California kicked off broad legal sales Jan. 1, 2018. But the illegal market has continued a bustling business, in part because consumers can avoid steep tax rates by buying in unlicensed dispensaries. But there's a trade-off for saving a buck. Illegal products have not met strict state testing standards and could be tainted by mold, pesticides, heavy metals even human waste. Story continues "Do you know what's hiding in your counterfeit edibles?" one ad asks. Agency spokesman Alex Traverso said the ads are part of a three-pronged campaign intended to eventually corral illegal sales the others are enforcement, including shutting down illegal shops and farms, and quickly licensing businesses that want to enter the legal economy. The state is spending an initial $1.7 million on the campaign and hopes to "get it in front of as many eyeballs as possible," Traverso said. No one is predicting the campaign will bring illicit sales to a halt. But it's being seen as another step to aid legal businesses as the state transitions from what was once a largely illegal economy into a multibillion-dollar, regulated marketplace. Industry officials highlighted ongoing struggles for the nation's largest pot market, including tax rates that can approach 50 percent in some communities, a maze of regulatory hurdles that discourage operators from entering the legal market and the challenge of establishing a California brand in the rapidly developing global market. Democratic state Sen. Steven Bradford of Compton said the marketplace needs more diversity. "If the industry does not look like California, it will never succeed," Bradford said. ___ Blood is a member of AP's marijuana beat team. Follow him on Twitter at http://twitter.com/MichaelRBloodAP . Follow AP's complete marijuana coverage: https://apnews.com/Marijuana . View comments |
Easy Repay Finance & Investment Limited (HKG:8079) Insiders Increased Their Holdings
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares inEasy Repay Finance & Investment Limited(HKG:8079).
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
Check out our latest analysis for Easy Repay Finance & Investment
While no particular insider transaction stood out, we can still look at the overall trading.
Yeuk Yuen Shiu bought a total of 775k shares over the year at an average price of HK$0.32. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Easy Repay Finance & Investment is not the only stock insiders are buying. So take a peek at thisfreelist of growing companies with insider buying.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Easy Repay Finance & Investment insiders own 38% of the company, worth about HK$21m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
It doesn't really mean much that no insider has traded Easy Repay Finance & Investment shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Easy Repay Finance & Investment insiders are doubting the company, and they do own shares. Along with insider transactions, I recommend checking if Easy Repay Finance & Investment is growing revenue. This free chart ofhistoric revenue and earnings should make that easy.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Bitcoin Cash – ABC, Litecoin and Ripple Daily Analysis – 22/06/19
Bitcoin Cash ABC rallied by 5.13% on Friday. Reversing a 0.94% fall on Thursday, Bitcoin Cash ABC ended the business week up 2.34% to $436.6.
A bullish morning saw Bitcoin Cash ABC rally from an intraday low $415.28 to a late morning intraday high $444.0.
Steering clear of the first major support level at $406.01, Bitcoin Cash ABC broke through the major resistance levels.
A slide back to $423 levels in the early afternoon was the only bearish move of the day before recovering to $430 levels. Bitcoin Cash ABC broke back through the second major resistance level at $425.48.
At the time of writing, Bitcoin Cash ABC was up by 0.84% to $440.29. A bullish start to the day saw Bitcoin Cash ABC rise from a morning low $436.65 to a high $442.0 before easing back.
In spite of the early move, Bitcoin Cash ABC left the major support and resistance levels untested.
For the day ahead, a move back through the morning high $442.0 would support a run at the first major resistance level at $448.64.
Support from the broader market would be needed, however, for Bitcoin Cash ABC to break out from Friday’s high $444.0.
In the event of a broad-based crypto rally, Bitcoin Cash ABC could touch $450 levels before any pullback.
Failure to move back through the morning high $442.0 could see Bitcoin Cash ABC hit reverse. A fall through the morning low $436.65 would bring $420 levels into play before any recovery.
Barring a crypto meltdown, Bitcoin Cash ABC would likely steer clear of the first major support level at $419.92.
Litecoin rose by 2.36% on Friday. Reversing a 0.5% decline on Thursday, Litecoin ended the business week up 1.49% to $139.04.
Tracking the broader market, Litecoin rallied from a morning low $135.83 to a late morning intraday high $141.53.
Litecoin broke through the first major resistance level at $137.64 and second major resistance level at $139.28.
An early afternoon reversal saw Litecoin slide to an intraday low $135.35 before finding support.
Steering clear of the first major support level at $133.86, Litecoin recovered to $139 levels late in the day.
At the time of writing, Litecoin was down by 0.55% to $138.27. A bearish start to the day saw Litecoin fall from a morning high $139.32 to a low $138.04.
Litecoin left the major support and resistance levels untested early on.
For the day ahead, a move back through to $138.70 levels would support a return to $140 levels later in the day.
Litecoin would need the support of the broader market, however, to break through the first major resistance level at $141.93.
Barring a broad-based crypto rally, Friday’s high $141.53 and the first major resistance level would likely limit any upside on the day.
Failure to move back through to $138.70 levels could see Litecoin slide deeper into the red. A fall through to $136 levels would bring the first major support level at $135.75 into play.
Barring a broad-based crypto sell-off, Litecoin would likely steer clear of sub-$130 levels. The second major support level at $132.46 should limit any downside on the day.
Ripple’s XRP gained 3.28% on Friday. Reversing a 0.8% fall from Thursday, Ripple’s XRP ended the day at $0.44610. For the current week, Ripple’s XRP was up by 4.13%.
A bullish morning saw Ripple’s XRP rally from an intraday low $0.43133 to a late morning intraday high $0.45123.
Ripple’s XRP broke through the first major resistance level at $0.4400 and second major resistance level at $0.4473.
A pullback to $0.43 levels in the early afternoon was short-lived, with Ripple’s XRP recovering to $0.44 levels to hold above the first major resistance level at $0.4400.
At the time of writing, Ripple’s XRP was down by 0.43% to $0.44416. A bearish start to the day saw Ripple’s XRP fall from a morning high $0.44616 to a low $0.44322 before steadying.
Ripple’s XRP left the major support and resistance levels untested early on.
For the day ahead, a hold above $0.4430 through the morning would support a recovery later in the day.
Ripple’s XRP would need to move through the morning high $0.44616, however, to break back through to $0.45 levels.
In the event of a rebound, Ripple’s XRP would likely test the first major resistance level at $0.4544.
Barring a broad-based crypto rally, Ripple’s XRP will likely fall short of the second major resistance level at $0.4628.
Failure to move back through the morning high could see Ripple’s XRP slide to $0.43 levels before any recovery.
The first major support level at $0.4345 should limit the downside on the day.
Please let us know what you think in the comments below
Thanks, Bob
Thisarticlewas originally posted on FX Empire
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Microsoft cuts internal original content creators and producers at Inside Xbox and Mixer
Microsoft cuts internal original content creators and producers at Inside Xbox and Mixer The affected positions appear to be at Inside Xbox and Mixer with heavy implications that Microsoft is moving away from internal original content creation. Amanda Farough , Sat, 22 Jun 2019 00:36:00 In the wake of E3, Microsoft is the latest to be hit by what appears to be a targeted round of layoffs. While layoffs of any sort in any department are bound to be devastating, the positions that have been affected appear to be related to the original content teams handling Inside Xbox and, as of today, Mixer. The Inside Xbox layoffs quietly happened prior to E3. Happy #funemployment day! Couldn’t ask for better people to celebrate with! #willproduceforfood @CapiTanceTV @scatterwits @Hnerskers @blacksuitsora @_depressio @GarthAvery @WatchMixer @LinkedIn @redrobinburgers pic.twitter.com/T0ffYgbFDs — Kate (@kateyeager) June 21, 2019 This appears to be a strategy shift for Microsoft, as Mixer continues to move toward taking a bigger bite of the streaming pie. Cutting whole teams of original content producers indicates that Microsoft is taking a different approach moving forward, potentially tapping its vast network of streamers and influencers that would likely be eager to "step up." It's unlikely that Xbox and Microsoft will fully move away from original content, though. Story continues It's been a wild ride for the last year and a bit but my time as a producer at Mixer has come to an end. If anyone out there has any opportunities out there, DM me. I have a lot of really great friends in the same boat. pic.twitter.com/CJ9ihrNlrQ — Joshua Hnosko (@Hnerskers) June 21, 2019 The cuts at Inside Xbox, which is the Xbox brand's live news show, have removed internal broadcasters, writers, and producers. It would appear that Microsoft is digging deep into removing internal content creation, which has a tendency to be expensive. Given the slow rollout, these layoffs and related strategy shift seem to have been brewing for some time now. It's been a helluva run at Microsoft & Xbox - nearly 8 years - but sadly it looks as if that time is coming to an end. I was caught up in a lay-off, the first in my career (Achievement unlocked). So, it's time for me to start looking for my next gig. pic.twitter.com/pPEfhmuz2Q — Rukari Austin (@rukizzel) June 14, 2019 Microsoft is following a long, long line of companies cutting their workforce in the game industry. It's been a harrowing 18 months for developers and support staff, especially in the wake of the mass layoffs at Telltale , Activision Blizzard , ArenaNet , and Capcom Vancouver (among many others). We've reached out to Microsoft for comment, but didn't receive a response by publication. We will update our story accordingly. This story is developing. Updated 6/24/2019 Brazil Indie Games (BIG) Festival 2019 kicks off in Sao Paulo 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] |
These Fundamentals Make Pizu Group Holdings Limited (HKG:8053) Truly Worth Looking At
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Pizu Group Holdings Limited (HKG:8053) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of 8053, it is a company with great financial health as well as a a great track record of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at thereport on Pizu Group Holdings here.
8053 delivered a satisfying double-digit returns of 41% in the most recent year Not surprisingly, 8053 outperformed its industry which returned 8.9%, giving us more conviction of the company's capacity to drive bottom-line growth going forward. 8053 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that 8053 has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. 8053 appears to have made good use of debt, producing operating cash levels of 0.4x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Pizu Group Holdings, I've compiled three important aspects you should further examine:
1. Future Outlook: What are well-informed industry analysts predicting for 8053’s future growth? Take a look at ourfree research report of analyst consensusfor 8053’s outlook.
2. Valuation: What is 8053 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 8053 is currently mispriced by the market.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of 8053? 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. |
Cardinals fans give Albert Pujols heart-warming ovation
The last time Albert Pujols walked off the field at Busch Stadium, he was celebrating the St. Louis Cardinals 11th World Series championship in October of 2011. When he returned for the first time in nearly eight years on Friday as a member of the Los Angeles Angels, it was Pujols who was celebrated. His legacy. His contributions to the franchise and to the city. They all still mean something to Cardinals fans. That's why when he walked to the plate in the first inning for his first career at-bat against the Cardinals in St. Louis, the city rose to its feet like another championship had been won. It's more than just a game. #TimeToFly pic.twitter.com/IFItH3MFKd — FOX Sports Midwest (@FSMidwest) June 22, 2019 Pujols was given a one-minute, 15-second standing ovation by the Cardinals faithful. He was also greeted with a hug from former teammate Yadier Molina. Molina stood in front of home plate to halt play so that the fans and Pujols could soak in the special moment. Albert Pujols at the plate. Yadier Molina lets him have a moment then hugs him. pic.twitter.com/eTd8L2zSSe — Maria Torres (@maria_torres3) June 22, 2019 The warm welcome continued after Pujols was retired on a fly ball, and continued all the way through the Cardinals 5-1 victory . Cardinals fans even booed their own pitcher, Michael Wacha, for walking Pujols. #STLCards fans booed Michael Wacha after his four-pitch walk to Pujols. Tough crowd. — Jenifer Langosch (@LangoschMLB) June 22, 2019 And cheered loudly when Pujols reached on an infield single. Story continues When he removed for a pinch runner in the seventh inning, he was honored once more as he jogged off the field. Not many opposing players get a positive reception in St. Louis, or anywhere around MLB for that matter. Not every returning player gets that love and respect, either. Pujols is an exception, and rightfully so. For 11 seasons, magic seemed to happen every time Pujols took the field wearing the St. Louis uniform. The Cardinals did a great job capturing it in this 90-second tribute video. 11 seasons. Countless memories. Thanks for giving us a front row seat! pic.twitter.com/xMcZTHS8mr — St. Louis Cardinals (@Cardinals) June 22, 2019 More important to Pujols, though, was the growth as a player and a person that happened every day during his Cardinals tenure. Said Pujols before arriving to St. Louis: “I think it’s just going to be emotional for myself. When I got to St. Louis I was 21 and when I left I was 32. I got there as a baby and left as a man. You can’t ignore the success I had there, individually and team accomplishments, winning championships. It’s pretty awesome. I’m excited.” Emotional is the word. It was an emotional scene befitting of a reunion nearly a decade in the making. Pujols’ numbers in St. Louis were staggering. He posted a career .328/.420/.617 slashline with St. Louis, while producing 445 homers and 1,329 RBIs in 1,705 games. The awards followed. He was voted NL Rookie of the Year in 2001, won six Silver Slugger Awards and two Gold Gloves at first base. Albert Pujols was greeted with a one-minute standing ovation in his emotional return to St. Louis. (Photo by Dilip Vishwanat/Getty Images) It seems the most important accolades Pujols received came on Friday, when the city united to honor him to begin what could be his final series played in St. Louis. It was special. It was deserving. It was iconic. 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 |
Bar staff refused to serve Tom Hanks at music festival
Tom Hanks during the filming for the Graham Norton Show. (Photo by Isabel Infantes/PA Images via Getty Images) Everyone reaches a time in their life when they think they will no longer get ID-ed. For most of us, it’s when we hit our mid to late thirties. For celebs it’s usually just when you know, they are famous. So Tom Hanks found himself in a strange position at a music festival recently. The 62-year-old couldn’t get served a beer even though the bar staff knew who he was (it’s hard to miss the Hanks after all). The Oscar-winning actor recounted the events to Graham Norton on his show this week, before talking about Toy Story 4 . Read more: Hanks: I’m more Woody than Tom now “They have beer pavilions everywhere and I decided to go get myself a frosty cold one. So, I went and said hi – giving them a couple of seconds to let the H bomb drop. Then asked can I have a draft please.” The answer was definitely not what Hanks was expecting – “can we see your ID bracelet?” He then discovered that they couldn’t sell him a beer without an id band sir, which was only available from half a mile across the festival. Actor Tom Hanks at the London premiere after-party for 'That Thing You Do!', 9th January 1997. (Photo by Dave Benett/Getty Images) “I said look - not only am who you think I am, but I am also 62 goddamn-years-old.” Hanks was at the Stagecoach festival to support his wife Rita Wilson. The actress/producer has added musician to her multi-talented bow and has been touring. He explained that she was about to go on when he thought he had time to pop to the bar for a drink. Hanks was sporting a rather fetching beard, but was definitely still recognisable at the event. In fact the bar staff called him by his name. “‘I’m so sorry,’ they told me ‘but if I give you a beer then I’m just going to get fired.” Little did the bar staff at the Stagecoach festival know that they were not only refusing film-star actor Tom Hanks a beer, they were also refusing a man celebrating his 31st wedding anniversary. Read more: Tom Hanks and Rita Wilson still adorable after 30 years of marriage Wilson posted a loving tribute to her husband on Twitter while at the festival, explaining, “In any long term relationship, if you’re lucky, you started with a spark.” Today is my and @tomhanks 31st wedding anniversary!!! People often ask what is our secret to a long marriage. Well, I cowrote a song about this on my new album Halfway to Home!! It’s called The Spark. In any long term relationship, if you’re lucky, you started with a spark, pic.twitter.com/39hryeBp2U — Rita Wilson (@RitaWilson) April 30, 2019 Hanks is in town for the European premiere of Toy Story 4 . |
Pizu Group Holdings Limited (HKG:8053): Commentary On Fundamentals
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Attractive stocks have exceptional fundamentals. In the case of Pizu Group Holdings Limited (HKG:8053), there's is a company with great financial health as well as a a strong track record of performance. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at thereport on Pizu Group Holdings here.
Over the past few years, 8053 has demonstrated a proven ability to generate robust returns of 41% Unsurprisingly, 8053 surpassed the Trade Distributors industry return of 8.9%, which gives us more confidence of the company's capacity to drive earnings going forward. 8053's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that 8053 has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. 8053 seems to have put its debt to good use, generating operating cash levels of 0.4x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For Pizu Group Holdings, I've compiled three essential aspects you should further examine:
1. Future Outlook: What are well-informed industry analysts predicting for 8053’s future growth? Take a look at ourfree research report of analyst consensusfor 8053’s outlook.
2. Valuation: What is 8053 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 8053 is currently mispriced by the market.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of 8053? 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. |
Dominican judge sends 6 to trial in giant Odebrecht scandal
SANTO DOMINGO, Dominican Republic (AP) — A judge in the Dominican Republic on Friday ordered a former Senate president, an ex-public works minister and four other people to stand trial in a bribery scandal involving Brazilian construction giant Odebrecht. Judge Francisco Ortega Polanco sent ex-Senate leader Andrés Bautista, former public works minister Víctor Díaz Rúa, businessman Ángel Rondón and three others to trial in the corruption case, which has toppled former presidents and business and political leaders across Latin America and the Caribbean. Of the seven suspects being investigated in the Dominican Republic, only former Senate president Jesús Vázquez was spared trial. Prosecutors allege Bautista took bribes from Odebrecht for the Northwest Aqueduct Line expansion and the Palomino Hydroelectric Plant project. They say he introduced 1.8 billion Dominican pesos ($36 million at the current exchange rate) into the banking system in less than 15 years. Díaz Rúa and Rondón are accused of being major beneficiaries of the alleged corruption scheme. All deny the charges against them. As he left the court, Bautista said the "judge didn't refer to the evidence that we provided." Dominican Attorney General Jean Alain Rodríguez called the judge's decision "transcendental." "In the past 20 years, this is the corruption case with the greatest magnitude to be investigated in the Dominican Republic because of the number of accused, the level of their influence of the same and the amounts of money involved," said Rodríguez. Odebrecht has acknowledged paying nearly $800 million to high-profile leaders across the region in exchange for lucrative public works contracts. |
Is Hong Kong Life Sciences and Technologies Group Limited (HKG:8085) A Volatile Stock?
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If you own shares in Hong Kong Life Sciences and Technologies Group Limited (HKG:8085) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. In finance, Beta is a measure of volatility. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. The second type is the broader market volatility, which you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks on the market.
Some stocks see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated price movements. Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). However, Warren Buffett said 'volatility is far from synonymous with risk' in his 2014 letter to investors. So, while useful, beta is not the only metric to consider. To use beta as an investor, you must first understand that the overall market has a beta of one. Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.
See our latest analysis for Hong Kong Life Sciences and Technologies Group
Hong Kong Life Sciences and Technologies Group has a five-year beta of 0.92. This is reasonably close to the market beta of 1, so the stock has in the past displayed similar levels of volatility to the overall market. While history does not always repeat, this may indicate that the stock price will continue to be exposed to market risk, albeit not overly so. 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 Hong Kong Life Sciences and Technologies Group fares in that regard, below.
Hong Kong Life Sciences and Technologies Group is a noticeably small company, with a market capitalisation of HK$57m. Most companies this size are not always actively traded. It doesn't take much money to really move the share price of a company as small as this one. That makes it somewhat unusual that it has a beta value so close to the overall market.
It is probable that there is a link between the share price of Hong Kong Life Sciences and Technologies Group and the broader market, since it has a beta value quite close to one. However, long term investors are generally well served by looking past market volatility and focussing on the underlying development of the business. If that's your game, metrics such as revenue, earnings and cash flow will be more useful. In order to fully understand whether 8085 is a good investment for you, we also need to consider important company-specific fundamentals such as Hong Kong Life Sciences and Technologies Group’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Financial Health: Are 8085’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here.
2. Past Track Record: Has 8085 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 8085's historicalsfor more clarity.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Do Institutions Own Chinese Energy Holdings Limited (HKG:8009) Shares?
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A look at the shareholders of Chinese Energy Holdings Limited (HKG:8009) can tell us which group is most powerful. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'
With a market capitalization of HK$29m, Chinese Energy Holdings is a small cap stock, so it might not be well known by many institutional investors. In the chart below below, we can see that institutions don't own shares in the company. We can zoom in on the different ownership groups, to learn more about 8009.
View our latest analysis for Chinese Energy Holdings
Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.
There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Chinese Energy Holdings's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.
Hedge funds don't have many shares in Chinese Energy Holdings. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
It seems insiders own a significant proportion of Chinese Energy Holdings Limited. Insiders have a HK$3.5m stake in this HK$29m business. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You canclick here to see if those insiders have been buying or selling.
The general public, who are mostly retail investors, collectively hold 74% of Chinese Energy Holdings shares. This size of ownership gives retail investors collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.
With a stake of 14%, private equity firms could influence the 8009 board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow.
Of coursethis may not be the best stock to buy. So take a peek at thisfreefreelist of interesting companies.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Cell MedX Corp. Engages Think Ink Marketing
Carson City, Nevada--(Newsfile Corp. - June 21, 2019) -Cell MedX Corp. (OTCQB: CMXC),Cell MedX Corp. ("Cell MedX" or the "Company"), a biotech company focusing on the discovery, development and commercialization of therapeutic and non-therapeutic products that promote general wellness, announced today that it has retained Think Ink Marketing Data & Email Services, Inc. ("Think Ink") to develop an investor outreach program. The Company agreed to pay Think Ink $25,000 for the first month of their services.
Think Ink is a California-based marketing firm established in 1991 that provides its customers with a complete range of marketing services that span both digital and direct mail venues. With its digital services ranging from data appending, email marketing and pay-per-click online banner and native ads, the company helps its clients to reach a large network of potential investors.
About Cell MedX Corp. (OTCQB: CMXC)
Cell MedX Corp. is a biotech company focused on the discovery, development and commercialization of therapeutic and non-therapeutic products that promote general wellness and alleviate complications associated with medical conditions including, but not limited to: diabetes, Parkinson's disease, high blood pressure, neuropathy and kidney function. The final report on the Observational Clinical Trials has been received by Health Canada. For more information about the Company and its technology please visitwww.cellmedx.com/investors/overview/. For the Company's newsletter please visitwww.cellmedx.com/media/newsletters/
On behalf of the Board of Directors of Cell MedX Corp.
Frank McEnultyCEO
Forward Looking Statements
The information included in this press release has not been reviewed by the FDA, nor has it been peer reviewed. This press release contains forward-looking statements. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as "expects", "intends", "estimates", "projects", "anticipates", "believes", "could", and other similar words. All statements addressing product performance, events, or developments that the Company expects or anticipates will occur in the future are forward-looking statements. Because the statements are forward-looking, they should be evaluated in light of important risk factors and uncertainties, some of which are described in the Company's Quarterly, Annual and Current Reports filed with the United States Securities and Exchange Commission (the "SEC"). Should one or more of these risks or uncertainties materialize, or should any of the Company's underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on Company's forward-looking statements. Except as required by law, Cell MedX Corp. disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. No stock exchange, securities commission or other regulatory body has reviewed nor accepts responsibility for the adequacy or accuracy of this release. Investors are advised to carefully review the reports and documents that Cell MedX Corp. files from time to time with the SEC, including its Annual, Quarterly and Current Reports.
SOURCE:Cell MedX Corp.For further information visit:www.cellmedx.com.Or phone: 1-844-238-2692
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45809 |
Read This Before Buying China Gas Holdings Limited (HKG:384) Shares
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sellChina Gas Holdings Limited(HKG:384), you may well want to know whether insiders have been buying or selling.
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
See our latest analysis for China Gas Holdings
In the last twelve months, the biggest single sale by an insider was when the VP, Finance Director & Executive Director, Weiwei Zhu, sold HK$36m worth of shares at a price of HK$27.26 per share. That means that even when the share price was below the current price of HK$27.85, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 16.4% of Weiwei Zhu's stake.
Happily, we note that in the last year insiders paid HK$64m for 2.5m shares. On the other hand they divested 5.5m shares, for HK$151m. Over the last year we saw more insider selling of China Gas Holdings shares, than buying. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying.
There was substantially more insider selling, than buying, of China Gas Holdings shares over the last three months. In total, Weiwei Zhu sold HK$81m worth of shares in that time. Meanwhile Executive Chairman Ming Liu bought HK$7.4m worth. Generally this level of net selling might be considered a bit bearish.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. China Gas Holdings insiders own 9.9% of the company, currently worth about HK$15b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
The stark truth for China Gas Holdings is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that China Gas Holdings is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. Of course,the future is what matters most. So if you are interested in China Gas Holdings, you should check out thisfreereport on analyst forecasts for the company.
Of courseChina Gas Holdings may not be the best stock to buy. So you may wish to see thisfreecollection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Bitcoin Climbs Above 10,651.3 Level, Up 9%
Investing.com - Bitcoin rose above the $10,651.3 threshold on Saturday. Bitcoin was trading at 10,651.3 by 00:58 (04:58 GMT) on the Investing.com Index, up 8.69% on the day. It was the largest one-day percentage gain since May 19.
The move upwards pushed Bitcoin's market cap up to $188.8B, or 59.10% of the total cryptocurrency market cap. At its highest, Bitcoin's market cap was $241.2B.
Bitcoin had traded in a range of $10,031.3 to $10,950.9 in the previous twenty-four hours.
Over the past seven days, Bitcoin has seen a rise in value, as it gained 22.61%. The volume of Bitcoin traded in the twenty-four hours to time of writing was $24.6B or 31.05% of the total volume of all cryptocurrencies. It has traded in a range of $8,771.0625 to $10,950.9043 in the past 7 days.
At its current price, Bitcoin is still down 46.40% from its all-time high of $19,870.62 set on December 17, 2017.
Ethereum was last at $304.18 on the Investing.com Index, up 8.00% on the day.
XRP was trading at $0.45185 on the Investing.com Index, a gain of 3.54%.
Ethereum's market cap was last at $32.4B or 10.14% of the total cryptocurrency market cap, while XRP's market cap totaled $19.2B or 6.00% of the total cryptocurrency market value.
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How Much Are China Gas Holdings Limited (HKG:384) Insiders Taking Off The Table?
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It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares inChina Gas Holdings Limited(HKG:384).
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia Universitystudyfound that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Check out our latest analysis for China Gas Holdings
In the last twelve months, the biggest single sale by an insider was when the VP, Finance Director & Executive Director, Weiwei Zhu, sold HK$36m worth of shares at a price of HK$27.26 per share. That means that even when the share price was below the current price of HK$27.85, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 16.4% of Weiwei Zhu's holding.
Happily, we note that in the last year insiders paid HK$64m for 2.5m shares. On the other hand they divested 5.5m shares, for HK$151m. In total, China Gas Holdings insiders sold more than they bought over the last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
There was substantially more insider selling, than buying, of China Gas Holdings shares over the last three months. In that time, Weiwei Zhu dumped HK$81m worth of shares. On the flip side, Executive Chairman Ming Liu spent HK$7.4m on purchasing shares. Generally this level of net selling might be considered a bit bearish.
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. China Gas Holdings insiders own about HK$15b worth of shares (which is 9.9% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
The insider sales have outweighed the insider buying, at China Gas Holdings, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But since China Gas Holdings is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. Of course,the future is what matters most. So if you are interested in China Gas Holdings, you should check out thisfreereport on analyst forecasts for the company.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Lena Waithe calls out Will Smith and Denzel Washington
Lena Waithe attends the premiere of Ready Player One on March 19, 2018, in London. (Photo: REUTERS/Henry Nicholls) Lena Waithe accused two of the biggest movie stars around for failing to do all they can to get more black-led films made. The writer/producer/actress behind the upcoming thriller Queen & Slim was speaking with New York Times reporter Kyle Buchanan about whether getting movies made by black directors into theaters will soon be easier. Waithe, whose on-screen work includes episodes of Master of None and Dear White People , said her latest project, which she produced and wrote, would not have been possible without the success of Jordan Peele’s Get Out and the fact that Barry Jenkins’s Moonlight won the Oscar for Best Picture. The success of those movies, as well as box-office behemoth Black Panther , made studios pay attention to it. “I think black people in this industry are making art that is so specific and unique and good that the studio heads have no choice but to throw money at us,” Waithe said. “They’re saying, ‘How can we support you and stand next to you?’ The tricky part is that they want to be allies and they want to be inclusive, but they also want to make money.” Waithe lamented that the movie industry is “still trying to play catch up” when it comes to diversity, although she said black film is experiencing a renaissance. “And don’t get me started on black financiers! How many of those do we have? I’m not [going to name] names because I know better, but there are some very big black movie stars out there, and they could pay for two or three or even five small independent movies to get made by black directors and black writers,” she said. “Let me give you two movies that are very important to the black community: Moonlight and 12 Years a Slave . Whose production company put those out?” Buchanan acknowledged that it was Brad Pitt’s production company, Plan B. “Wasn’t Denzel [Washington] . Wasn’t Will Smith ,” Waithe said. “You won’t catch me making $20 million a movie and not paying for at least four or five independent movies a year. I do give credit to [director and producer] Ava [DuVernay] for trying to build something that hasn’t been built before, but that’s a lot on Ava’s back.” Story continues “I’m over here trying to build a community, and I don’t see other people doing it,” she said. “I really do feel like there’s a way for us to change the movie business from the inside out, but we’re all in our own silos doing our own thing.” Forbes estimated that, as of July 2018, 10 months ahead of the release of his Disney blockbuster Aladdin , Smith had a net worth of $42 million . In 2017, the magazine estimated Washington had raked in more than $290 million before taxes since 2003, when its reporters began keeping count. Yahoo Entertainment has reached out to Smith. A rep for Washington declined to comment. Others weighed in on social media. Some cited the fact that actor Jason Mitchell was fired from the Showtime series The Chi last month after he was accused of harassment. Waithe, who created the series, didn’t fire Mitchell when the allegations first surfaced, although she now says she wishes she would’ve handled the situation differently. Lena Waithe ignores sexual harassment on shows she’s executive producing..... https://t.co/9CnnwuPrUz — trump has dementia (@screwyoumegn) June 21, 2019 Lena Waithe has no business coming after anybody especially after she protected a sexual Predator who threatened the health and well being of at least two black womxn in her employ. Smh https://t.co/xvSQWerEVz — Athena's Daddy ala Blaque (@claudius_jr) June 21, 2019 Lena Waithe is highkey one of the last people who should be calling out anyone in the entertainment industry for anything at the moment. 🙃🙃🙃 — Marq Thee Power Bottom (@angryblkhoemo) June 22, 2019 Let’s call out Lena waithe for allowing Jason Mitchell to act badly on the set of The Chi. — Nicole Huggins (@nikki_huggins93) June 21, 2019 Still, there was some support for Waithe’s words about the film industry. . @LenaWaithe with the facts, as per usual https://t.co/PW7UZ7NiMH — khal jarreau (@khal) June 21, 2019 Talk to 'em! @LenaWaithe You're on point with this one💯 The Black community needs to continue to reach hands down and uplift our demographic in this volatile and uncertain film industry, as we know the reality of it. #FilmFriday #lenawaithe #WillSmith https://t.co/EetAlEAGpM — Ucal S (@uk3s_) June 21, 2019 Honestly, I have so much respect for @LenaWaithe right now. Bout to see EVERYTHING she produce 👏🏽👏🏽👏🏽👏🏽👏🏽 — Jonathan Braylock (@jonbraylock) June 21, 2019 Read more on Yahoo Entertainment: James Gandolfini's son Michael remembers his dad on anniversary of his death: 'Six years is too long' Kristin Cavallari reveals secrets from 'The Hills' reboot (even though she won't be on it) Julia Louis-Dreyfus experienced 'true fear' after breast cancer diagnosis Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle's newsletter. |
Is Lum Chang Holdings Limited (SGX:L19) A Smart Pick For Income Investors?
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Today we'll take a closer look at Lum Chang Holdings Limited (SGX:L19) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful.
With Lum Chang Holdings yielding 5.4% and having paid a dividend for over 10 years, many investors likely find the company quite interesting. We'd guess that plenty of investors have purchased it for the income. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below.
Click the interactive chart for our full dividend analysis
Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. In the last year, Lum Chang Holdings paid out 24% of its profit as dividends. We'd say its dividends are thoroughly covered by earnings.
As Lum Chang Holdings has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A quick way to check a company's financial situation uses these two ratios: net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. With net debt of above 3x EBITDA, investors are starting to take on a meaningful amount of risk, should the business enter a downturn.
We calculated its interest cover by measuring its earnings before interest and tax (EBIT), and dividing this by the company's net interest expense. Interest cover of less than 5x its interest expense is starting to become a concern for Lum Chang Holdings, and be aware that lenders may place additional restrictions on the company as well.
We update our data on Lum Chang Holdings every 24 hours, so you can always getour latest analysis of its financial health, here.
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 Lum Chang Holdings's dividend payments. Its dividend payments have fallen by 20% or more on at least one occasion over the past ten years. During the past ten-year period, the first annual payment was S$0.015 in 2009, compared to S$0.018 last year. Dividends per share have grown at approximately 1.8% per year over this time. The growth in dividends has not been linear, but the CAGR is a decent approximation of the rate of change over this time frame.
It's good to see some dividend growth, but the dividend has been cut at least once, and the size of the cut would eliminate most of the growth, anyway. We're not that enthused by this.
Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. Lum Chang Holdings has grown its earnings per share at 5.0% per annum over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for Lum Chang Holdings's prospects of growing its dividend payments in the future.
When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. It's great to see that Lum Chang Holdings is paying out a low percentage of its earnings and cash flow. Unfortunately, earnings growth has also been mediocre, and the company has cut its dividend at least once in the past. Lum Chang Holdings has a number of positive attributes, but it falls slightly short of our (admittedly high) standards. Were there evidence of a strong moat or an attractive valuation, it could still be well worth a look.
See if management have their own wealth at stake, by checking insider shareholdings inLum Chang Holdings stock.
We have also put together alist of global stocks with a market capitalisation above $1bn and yielding more 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Should Lum Chang Holdings Limited (SGX:L19) Be Part Of Your Dividend Portfolio?
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Could Lum Chang Holdings Limited (SGX:L19) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful.
With Lum Chang Holdings yielding 5.4% 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. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this.
Click the interactive chart for our full dividend analysis
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. Lum Chang Holdings paid out 24% of its profit as dividends, over the trailing twelve month period. With a low payout ratio, it looks like the dividend is comprehensively covered by earnings.
As Lum Chang Holdings has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A quick way to check a company's financial situation uses these two ratios: net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and net interest cover. Net debt to EBITDA measures a company's total debt load relative to its earnings (lower = less debt), while net interest cover measures the company's ability to pay the interest on its debt (higher = greater ability to pay interest costs). With net debt of above 3x EBITDA, investors are starting to take on a meaningful amount of risk, should the business enter a downturn.
Net interest cover can be calculated by dividing earnings before interest and tax (EBIT) by the company's net interest expense. Interest cover of less than 5x its interest expense is starting to become a concern for Lum Chang Holdings, and be aware that lenders may place additional restrictions on the company as well.
Remember, you can always get a snapshot of Lum Chang Holdings's latest financial position,by checking our visualisation of its financial health.
One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. Lum Chang Holdings has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. Its dividend payments have fallen by 20% or more on at least one occasion over the past ten years. During the past ten-year period, the first annual payment was S$0.015 in 2009, compared to S$0.018 last year. This works out to be a compound annual growth rate (CAGR) of approximately 1.8% a year over that time. The dividends haven't grown at precisely 1.8% every year, but this is a useful way to average out the historical rate of growth.
It's good to see some dividend growth, but the dividend has been cut at least once, and the size of the cut would eliminate most of the growth, anyway. We're not that enthused by this.
With a relatively unstable dividend, it's even more important to see if earnings per share (EPS) are growing. Why take the risk of a dividend getting cut, unless there's a good chance of bigger dividends in future? Lum Chang Holdings has grown its earnings per share at 5.0% per annum over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for Lum Chang Holdings's prospects of growing its dividend payments in the future.
To summarise, shareholders should always check that Lum Chang Holdings'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 Lum Chang Holdings is paying out a low percentage of its earnings and cash flow. Second, earnings growth has been ordinary, and its history of dividend payments is chequered - having cut its dividend at least once in the past. Overall we think Lum Chang Holdings is an interesting dividend stock, although it could be better.
Now, if you want to look closer, it would be worth checking out ourfreeresearch on Lum Chang Holdingsmanagement tenure, salary, and performance.
If you are a dividend investor, you might also want to look at ourcurated list of dividend stocks yielding above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
3 Defense Stocks to Watch
The defense industry is getting many more headlines than it is used to. There's the huge amount of money being proposed for the 2020 budget, and the president occasionally hounds defense contracts on the price tag for certain programs. Meanwhile, the defense budget is tacking back toward countering national powers instead of fighting terrorism.
All in all, there is a lot of money on the line for the defense industry if it can deliver on the right programs. Because of these changing budget priorities, we asked three Motley Fool contributors to each highlight a stock (or stocks) worth watching in the defense industry this month. Here's why they pickedUnited Technologies(NYSE: UTX)and its planned merger targetRaytheon(NYSE: RTN),Oshkosh Corporation(NYSE: OSK), andKratos Defense & Security Solutions(NASDAQ: KTOS)
Image source: Getty Images.
Tyler Crowe(United TechnologiesandRaytheon):Over the past few years, United Technologies has made several moves to boost its aerospace business. Last year, it acquired parts manufacturer Rockwell Collins in a $30 billion deal. That deal, on top of United Technologies' Pratt & Whitney division, made it a massive player in the aerospace industry for both commercial and military clients.
The mostrecent deal to merge with Raytheonhas the potential to be huge. The combined entity expects to have around $74 billion in annual revenue and will be the second largest American aerospace company behindBoeing.
There are likely some regulatory hurdles that could sidetrack this merger. But even if the deal were to go through, investors should still tread carefully before jumping into this newly formed company.
Having a company with a finger in so many pies in some of the highest-demand parts of the commercial and defense industry -- F-35 engines, hypersonic missiles, and artificial intelligence for commercial aircraft, to name a few -- certainly sounds compelling. For investors, though, the real value will come from management's ability to integrate these two entities and Rockwell Collins into a single entity that can effectively allocate capital across all its high-growth segments.
This isn't to say that management is unable to pull it off, but defense investors shouldn't assume that a deal of this magnitude is a layup.
Jason Hall(Oshkosh):As of this writing, shares of this maker of specialty vehicles for the military, first responders, and the construction industry are up nearly 32% this year. That's not only better than most of its defense contractor peers, but also represents a big recovery from May, when shares fell nearly 14%. It also means Oshkosh is delivering even better returns than theS&P 500, which is proving quite resurgent after a 20% drop to end last year:
So why is Oshkosh watchlist-worthy but not a defense stock I'd suggest buying? In short, because while there are some potential tailwinds for its business, particularly construction-related equipment, there are real concerns that the Defense Department's budget priorities aren't going to favor the company.
Earlier this year, it was disclosed that the Pentagon's fiscal 2020 budget calls for $1.6 billion to buy Oshkosh's Joint Light Tactical Vehicle (JLTV). That number represents a 17% reduction from last year's $1.928 billion in purchases of the Humvee replacement and $300 million less than the anticipated $1.9 billion the Defense Department was expected to spend on JLTV orders.
Management downplayed concerns on the earnings call, as one would expect. But I think investors would be smart to let the federal budgeting process play out a little more, as well as expectations for infrastructure construction-related spending, before making any decisions on Oshkosh as an investment. That's particularly true considering that it has outpaced its peers as an investment even as uncertainty looms. Patient investors could get a better entry point, or at the very least be able to invest -- or not -- with a fuller picture of the near-term demand for its vehicles.
RTNdata byYCharts.
John Bromels(Kratos Defense & Security Solutions):Drones are gaining in popularity, and not just the recreational kind. Military drones are being deployed in greater and greater numbers. In 2018, military spending on them reached a five-year high. They are used for all kinds of tasks, including combat, surveillance, and aerial refueling.
Small wonder, then, that shares of drone manufacturer Kratos have been soaring this year. The stock wasup 39% in May alone, thanks to an upbeat Q1 earnings report. Year to date, shares have gained nearly 60%, more than four times the S&P 500's gain of less than 15%.
That robust gain might make investors worried that the ship has already sailed -- or that the drone has already taken off. That's certainly a valid concern, especially considering how big the stock's recent jump was, and that the P/E is currently a massive 1,117.5 -- certainly enough to give any investor pause.
But there are also reasons to believe that the stock will continue to rise.As reported by my colleague Rich Smith, the company's Valkyrie drone has captured the Air Force's attention, and Kratos expects to begin receiving initial orders later this year, while its XQ-58A "loyal wingman" drone has bipartisan support in Congress.
Still, with such a rich valuation, today's investment in Kratos may not pay off for years. That's why I'm only recommending you keep the stock on your watchlist and consider very carefully if you want to take the plunge.
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Jason Hallhas no position in any of the stocks mentioned.John Bromelsowns shares of Oshkosh.Tyler Crowehas 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. |
Stephen Curry says 2020 election stakes are 'extremely high'
As more than 20 Democratic presidential candidates pack the primary race, Golden State Warriors star Stephen Curry isn’t sure who to support, similar to the millions of undecided Democratic voters. He still thinks the winner is going to have a big responsibility on his hands. Stephen Curry talks politics During a wide-ranging interview with The New York Times , Curry discussed the Warriors’ past and suddenly fraught future , a post-NBA Finals altercation involving a police officer and Toronto Raptors president Masai Ujiri and his Hollywood production career. But the most pressing of all the topics was politics. Curry, who reportedly communicates monthly with Democratic former president Barack Obama, said he still isn’t sure who he’s supporting in the crowded Democratic field . Via the New York Times: “Let’s just say that I don’t have a relationship with anybody that’s running,” Curry said. “Maybe that will develop over time. But I haven’t gotten into that game yet.” But he did say the stakes of the next presidential election were “extremely high,” “especially with how these last four years have been in terms of exposing a lot of nastiness that still exists in our country.” Curry has waded into the world of politics before, once finding an interesting way to insult President Donald Trump earlier in his presidency. You can imagine Curry will wade back in sometime in the future, but we’ll see at what point in the election that will be. Stephen Curry is at a pivotal point in his career. (Getty Images) Stephen Curry talks Raptors president Masai Ujiri If there was an unanticipated storyline to come out of the 2019 NBA Finals, which the Warriors lost in six games, it was Raptors president Masai Ujiri’s run-in with a police officer on his way to the court to accept the Larry O’Brien Trophy. The Alameda County Sheriff’s Office claims the executive struck the unnamed officer with two fists after being asked for a credential to enter the floor, but multiple eyewitness have disputed that account and video evidence hasn’t definitively decided the matter for either side. Story continues Curry recalled seeing a shaken Ujiri after the incident, and also wondered if racial politics could have played a role: “You know what’s crazy? I saw him after,” Curry said, referring to Ujiri. “I didn’t know anything about this situation. But looking back, I saw his face and I could tell something had happened.” Curry said he had seen cellphone videos from bystanders and read the news reports about the incident. “If he didn’t do anything wrong, obviously, you’d hope that it was handled in a better fashion,” he said. “Especially for a guy that was going out and trying to celebrate with his team that had done something historical. So I don’t know if that was a white G.M. or whatever, if that’s handled differently. You can always play the what-if game.” Ujiri is facing misdemeanor charges over the incident, which one lawyer said left the deputy’s jaw with a concussion and serious jaw injury. Stephen Curry talks the Warriors While politics are obviously a more important theater than sports, the stakes of Curry’s next season are also extremely high. Both Kevin Durant and Klay Thompson will miss significant time next season after respectively suffering an Achilles rupture and ACL tear in the Finals . Both players are also at risk of leaving in free agency, though Thompson’s dad indicated the shooting guard is staying put . Whatever happens, Curry will likely be shouldering his heaviest offensive load since the beginning of the Warriors’ run of five straight NBA Finals: “I run a lot more than the next guy,” Curry said. “There’s really just an understanding of my training and the things I do to get myself ready. I can withstand that type of output night after night. It’s going to be hard. It’s going to require another level of discipline.” Curry also analyzed the most difficult part of the Warriors’ season, which surprisingly wasn’t the Finals: “This regular season was the hardest one we’ve ever had in terms of keeping everything together,” Curry said. “Not because of anything more than it’s just mentally challenging to perform at this level every single night. When we got to the playoffs, it was the most fun I think we’ve had, minus the injuries, obviously. That was tough all the way across the board. One thing Curry will not obligated to do is participate in LeBron James’ Space Jam 2 , which the point guard confirmed he wouldn’t appear in due to “scheduling issues.” The fact that the movie is set up to glorify his greatest rival in James and that he has own production company with “Unanimous” also probably helped make the decision. 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 |
When Should You Buy China Dongxiang (Group) Co., Ltd. (HKG:3818)?
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China Dongxiang (Group) Co., Ltd. (HKG:3818), which is in the luxury business, and is based in China, received a lot of attention from a substantial price movement on the SEHK over the last few months, increasing to HK$1.2 at one point, and dropping to the lows of HK$0.95. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether China Dongxiang (Group)'s current trading price of HK$0.95 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at China Dongxiang (Group)’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
View our latest analysis for China Dongxiang (Group)
China Dongxiang (Group) appears to be overvalued according to my relative valuation model. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that China Dongxiang (Group)’s ratio of 15.31x is above its peer average of 9.72x, which suggests the stock is overvalued compared to the Luxury industry. Another thing to keep in mind is that China Dongxiang (Group)’s share price is quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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. China Dongxiang (Group)’s earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.
Are you a shareholder?3818’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe 3818 should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor?If you’ve been keeping tabs on 3818 for some time, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the positive outlook is encouraging for 3818, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on China Dongxiang (Group). You can find everything you need to know about China Dongxiang (Group) inthe latest infographic research report. If you are no longer interested in China Dongxiang (Group), 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. |
Need To Know: Wealthy Way Group Limited (HKG:3848) Insiders Have Been Selling Shares
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares inWealthy Way Group Limited(HKG:3848).
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
View our latest analysis for Wealthy Way Group
The Founder, Wai Lo, made the biggest insider sale in the last 12 months. That single transaction was for HK$32m worth of shares at a price of HK$6.80 each. That means that an insider was selling shares at below the current price (HK$6.80). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 4.4% of Wai Lo's holding. The only individual insider seller over the last year was Wai Lo.
You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Wealthy Way Group insiders own 67% of the company, worth about HK$702m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
An insider sold Wealthy Way Group shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. To put this in context, take a look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow.
Of courseWealthy Way Group may not be the best stock to buy. So you may wish to see thisfreecollection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Treasury Secretary Won’t Let Crypto Become Next Swiss Bank Accounts
ByCCN Markets: U.S. Treasury SecretarySteven Mnuchinsaid that the G7’s Financial Action Task Force (FATF) organization willnever let crypto assets“become the equivalent of secret numbered accounts.” Mnuchin was addressing a plenary session of the G7 initiative aimed at combating money laundering and terrorism financing.
The U.S. Treasury Secretary was referring to secretive bank accounts commonly offered in Switzerland as well as other offshore financial hubs where the identity of the account holder is kept secret and a client is only identified by a code word.
Mnuchin also disclosed that he had convened a working group comprised of various regulators including the Federal Reserve with the goal of ensuring that crypto is only used for legitimate purposes.
Mnuchin pointed out that an interpretive note that was adopted earlier this week by theFATFwill require cryptocurrency exchanges, crypto-based remittance and payments firms, and other crypto-related businesses to implement bank-like anti-money laundering and Combating the Financing of Terrorism procedures. The FATF Global Network has been meeting in Orlando, Fla. since June 16.
Read the full story on CCN.com. |
Boasting A 23% Return On Equity, Is Sakuma Exports Limited (NSE:SAKUMA) A Top Quality Stock?
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While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. To keep the lesson grounded in practicality, we'll use ROE to better understand Sakuma Exports Limited (NSE:SAKUMA).
Sakuma Exports has a ROE of 23%, based on the last twelve months. That means that for every ₹1 worth of shareholders' equity, it generated ₹0.23 in profit.
See our latest analysis for Sakuma Exports
Theformula for return on equityis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Sakuma Exports:
23% = ₹698m ÷ ₹3.1b (Based on the trailing twelve months to March 2019.)
Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is the capital paid in by shareholders, plus any retained earnings. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets.
Return on Equity measures a company's profitability against the profit it has kept for the business (plus any capital injections). The 'return' is the amount earned after tax over the last twelve months. That means that the higher the ROE, the more profitable the company is. So, all else being equal,a high ROE is better than a low one. Clearly, then, one can use ROE to compare different companies.
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As you can see in the graphic below, Sakuma Exports has a higher ROE than the average (7.0%) in the Consumer Retailing industry.
That's clearly a positive. I usually take a closer look when a company has a better ROE than industry peers. For exampleyou might checkif insiders are buying shares.
Companies usually need to invest money to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. That will make the ROE look better than if no debt was used.
Sakuma Exports has a debt to equity ratio of just 0.081, which is very low. The combination of modest debt and a very respectable ROE suggests this is a business worth watching. Judicious use of debt to improve returns can certainly be a good thing, although it does elevate risk slightly and reduce future optionality.
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
But when a business is high quality, the market often bids it up to a price that reflects this. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So you might want to check this FREEvisualization of analyst forecasts for the company.
Of courseSakuma Exports may not be the best stock to buy. So you may wish to see thisfreecollection of other companies that have high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Gun silencers would be barred under new federal legislation
TRENTON, N.J. (AP) Gun silencers like the one used in a recent lethal shooting in Virginia Beach would be banned under legislation that U.S. Sen. Bob Menendez of New Jersey introduced Friday. The Democrat unveiled the legislation at news conference in Trenton alongside Democratic Trenton Mayor Reed Gusciora and representatives from the gun-control group Moms Demand Action. "I'm not saying that any single piece of legislation can stop every single tragedy, but there's no question that gun safety laws can save lives," Menendez said. New Jersey already bans silencers, but they're lawful in many other states, including neighboring Pennsylvania. The new measure would open a 90-day buyback window for the estimated 1.5 million registered silencers. Federal law requires their registration, as well as a $200 tax. The buyback would financed by federal grants, Menendez said. The measure would also include some exceptions for current and former law enforcement personnel. The inspiration for the proposal came after last month's fatal shooting in Virginia Beach, Menendez said. Virginia Beach employee DeWayne Craddock used two semi-automatic handguns, a silencer and extended ammunition magazines. Twelve people at a municipal building were killed, while Craddock died in a gunbattle with police. A House version of the bill was being introduced by U.S. Rep. Bonnie Watson Coleman, a New Jersey Democrat, Menendez said. Other measures involving silencers are also being introduced. Virginia Democratic Rep. Jennifer Wexton introduced a measure Friday that would allow the chief law enforcement officers in jurisdictions where a silencer is registered to approve or deny the sale or transfer of silencers. Menendez compared the sound a silenced gun makes to a nail gun and argued that the sound of gunfire serves as a warning to people in mass-shooting situations. The National Rifle Association has criticized this comparison and said that the decibel level of silenced gun is much louder than a nail gun. A message seeking a response to the legislation was left with the NRA. The measure comes after the Democrat-led House this year passed a pair of measures bolstering background checks on firearms purchases. Those measures haven't gained traction in the GOP-led Senate. |
Is Sakuma Exports Limited's (NSE:SAKUMA) CEO Salary Justified?
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Saurabh Malhotra is the CEO of Sakuma Exports Limited (NSE:SAKUMA). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Sakuma Exports
At the time of writing our data says that Sakuma Exports Limited has a market cap of ₹3.7b, and is paying total annual CEO compensation of ₹7.2m. (This number is for the twelve months until March 2018). Notably, the salary of ₹7.2m is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹1.3m.
It would therefore appear that Sakuma Exports Limited pays Saurabh Malhotra more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Sakuma Exports has changed over time.
Sakuma Exports Limited has increased its earnings per share (EPS) by an average of 17% a year, over the last three years (using a line of best fit). It saw its revenue drop -4.0% over the last year.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. You might want to checkthis free visual report onanalyst forecastsfor future earnings.
Most shareholders would probably be pleased with Sakuma Exports Limited for providing a total return of 147% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
We examined the amount Sakuma Exports Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. So you may want tocheck if insiders are buying Sakuma Exports shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out thisfreelist of interesting companies, that have HIGH return on equity and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Imagine Owning Accuracy Shipping (NSE:ACCURACY) And Wondering If The 27% Share Price Slide Is Justified
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The simplest way to benefit from a rising market is to buy an index fund. Active investors aim to buy stocks that vastly outperform the market - but in the process, they risk under-performance. Investors inAccuracy Shipping Limited(NSE:ACCURACY) have tasted that bitter downside in the last year, as the share price dropped 27%. That's well bellow the market return of 1.5%. Because Accuracy Shipping hasn't been listed for many years, the market is still learning about how the business performs. Even worse, it's down 14% in about a month, which isn't fun at all. This could be related to the recent financial results - you can catch up on the most recent data by readingour company report.
View our latest analysis for Accuracy Shipping
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Unhappily, Accuracy Shipping had to report a 47% decline in EPS over the last year. The share price fall of 27% isn't as bad as the reduction in earnings per share. So the market may not be too worried about the EPS figure, at the moment -- or it may have expected earnings to drop faster.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
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. Before buying or selling a stock, we always recommend a close examination ofhistoric growth trends, available here..
While Accuracy Shipping shareholders are down 26% for the year (even including dividends), the market itself is up 1.5%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. It's great to see a nice little 5.3% rebound in the last three months. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). 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.
Accuracy Shipping is not the only stock insiders are buying. So take a peek at thisfreelist of growing companies with insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on IN exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Better Buy: Kinder Morgan Canada vs. Enbridge
Can you really compare $300-million-market-capKinder Morgan Canada(NASDAQOTH: KMLGF)toEnbridge(NYSE: ENB), a $70 billion midstream industry giant? The answer is yes, but you need to dig a little bit deeper to understand why. Here are four key points to consider when examining these two companies -- one of which is vital to understand before you make a decision.
Investors considering themidstream sectorare usually looking for dividend stocks. Kinder Morgan Canada's 4.3% yield is around twice as much as you'd get from an investment in anS&P 500 Indexfund. However, it is still notably below the nearly 6% yield offered by Enbridge. So Enbridge is the clear winner if all you are considering is yield.
Image source: Getty Images.
However, there's always more to the dividend picture than just yield. For example, Kinder Morgan Canada has only been a public company since mid-2017 and has little dividend history to look at. Enbridge, meanwhile, has increased its dividend annually for 23 consecutive years. Enbridge has clearly proven that it places a high priority on rewarding shareholders with dividend growth over time. Kinder Morgan Canada hasn't had enough time to show much of anything on this front.
That said, Enbridge covered its dividend by roughly 1.2 times in 2018. That's ample coverage in the midstream space but not quite the whole story. The company has been working through a major overhaul,buying a number of controlled entities to simplify its business. The long-term target for the dividend is roughly 65% of distributable cash flow, which equates to a coverage ratio of around 1.5 times. That's very good in the midstream space. Coverage was around 1.8 times in the first quarter, but the target for the full year is 1.5 times based on current company projections.
Aftera big asset overhaul of its own, Kinder Morgan Canada is projecting roughly 1.4 times coverage for its dividend in 2019. That's also very good but still a little below what Enbridge is serving up. All things considered, Enbridge is the easy win on the dividend.
Dividend safety, however, also requires a close look at a company'sbalance sheet. And in this pairing, Kinder Morgan Canada is in much better financial shape today. As noted above, it sold a large asset in 2018. Part of the cash was used to pay down debt, leaving the company's trailing debt-to-EBITDAratio at a very low 0.3 times. Enbridge's makeover, on the other hand, required it to spend money. Its debt-to-EBITDA ratio ballooned to more than 12 times at one point but is now down around 5.5 times. That's a vast improvement and not out of line for the midstream space. However, it's still nowhere near as low as Kinder Morgan Canada's metrics here.
ENB Financial Debt-to-EBITDA (TTM)data byYCharts.
That makes a big difference, because it means that Kinder Morgan Canada has a lot more room on its balance sheet to support growth spending. It clearly needs to find solid projects and execute well, but investors shouldn't need to worry about whether it can support the spending plans it creates -- it can. Enbridge requires a little more monitoring on that front, even though there's no particular reason to worry.
But here's the problem for Kinder Morgan Canada: After the big asset sale, it decided to review its business to figure out what steps to take next. Although that's a big decision, the only outcome is that it will remain a stand-alone company. After 2019, it really doesn't have any material growth plans. That means it's something of a blank slate, and investors have to hope it finds ways to grow in the future.
Enbridge, meanwhile, has a lot of plans in the works. The giant Canadian midstream company has 16 billion Canadian dollars worth of capital projects planned in 2019 and 2020, with the expectation that it can comfortably invest CA$5 to CA$6 billion annually thereafter. This spending is projected to lead to dividend growth of 10% in 2019 and 2020, with growth of 5% to 7% in the following years. Enbridge wins this one hands down for any investor who wants some clarity into the future.
The market caps of Kinder Morgan Canada and Enbridge are orders of magnitude different. There's a big reason for that: Kinder Morgan Canada owns just three assets. While that's not necessarily a knock against the company, it is an important factor to take into consideration. If something goes wrong at one of its businesses, it would be a big problem.
Enbridge, meanwhile, is one of the largest midstream companies in North America (80% of EBITDA). It has a few key assets that drive its business, but it has a much larger overall portfolio than Kinder Morgan Canada -- notably including more assets in which to invest for future growth. And Enbridge is also one of the largest gas utilities in North America (15% of EBITDA), providing even more stability to its top line. Enbridge wins again.
That said, you can't count Kinder Morgan Canada out, because U.S. midstream giantKinder Morgan Inc.(NYSE: KMI)owns 70% of its shares. That's been a mixed blessing so far, since a large portion of the cash from the asset sale noted above was also used to pay out a massive dividend. That dividend was orchestrated by Kinder Morgan Inc. because it wanted to get its hands on the money. So there are very real questions about whether Kinder Morgan Canada will do what's best for Kinder Morgan, Inc. or for individual investors. But this relationship may also allow Kinder Morgan Canada to punch above its weight when it comes to finding growth-oriented investments.
Enbridge still wins, but Kinder Morgan Canada scores better than you might at first expect when you look at the bigger picture.
Investing is all about weighing options. When it comes to Enbridge and Kinder Morgan Canada, you are considering an industry giant with a long history and an upstart with the potential for years of growth ahead of it (likely supported by a close relationship with one of Enbridge's largest competitors). Kinder Morgan Canada's dividend yield is lower today, but once it starts investing for the future, dividend growth could be swift. More aggressive types might find that a worthwhile trade-off.
But most will probably be better off with Enbridge. This industry giant's capital investment and dividend growth plans are material and appear well laid out. And since it doesn't have any conflicts with an outside investor (specifically Kinder Morgan Inc.'s 70% stake in Kinder Morgan Canada), you know it's working on behalf of individual investors. Despite the higher leverage, most investors will be better off tilting in favor of higher-yielding and more-diversified Enbridge.
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Reuben Gregg Brewerhas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Kinder Morgan. The Motley Fool recommends Enbridge. The Motley Fool has adisclosure policy. |
President Trump's toughest challenger in 2020 is himself
President Trump’s reelection chances could hinge more on his personality than the boomingU.S. economy.
That from famed pollster Mark Penn, who tells“WSJ at Large”hostGerry Bakerthat in all his years in politics, he’s never come across anyone like this president.
“I look at his numbers – 62 percent approve the job he’s doing in the economy. Only 32 percent like him personally,” he pointed out. “It’s the biggest personal-to-performance gap that I’ve ever seen and that is what is weighing the president down.”
Penn, who worked with the campaigns of both Bill and Hillary Clinton, is now Managing Partner of the digital marketing investment firm Stagwell Group and CEO of the MDC Partners marketing firm. He believes for Trump to win, he needs to sell voters on his economic prowess and downplay the negativity about him personally.
“The American public recognizes it’s his economy not Obama’s but those personal ratings are the lowest I’ve seen with somebody with those economic ratings,” he said. “He’s got to close that gap if he wants to do what normally happens, which is the economy is the number one variable.”
Still, Penn advises that when it comes to Trump, it’s wise to be skeptical about some polling data.
“I don’t trust those polls that have his ratings in the 30’s because he got 46 percent and 90 percent of his previous supporters support him,” he said. “I don’t trust anything below 43 right now. I do think he’s somewhere between that 43 and 47 percent.”
Penn notes president's popularity will rise when the public begins to concentrate more on who is running on the Democratic side.
“He’s had no opponents so essentially the president is running against himself at this point and he’s winning or losing depending upon how you look at it,” Penn said. “And the Democratic candidates will have the first debate and that will begin to create a focus on how they’re all doing.”
Former Vice President Joe Biden is theDemocratic Party’s frontrunner, but Penn warns that as he learned with former Secretary of State Hillary Clinton in 2008, being at the head of the pack early can be a disadvantage.
“There’s 23 [candidates]. That means there are 22 that are going to be fighting to bring you down,” he said. “And that’s why Biden is avoiding some of these places where he’s just going to be attacked.”
Penn, who calls South Bend, Indiana Mayor Pete Buttigieg the surprise of the field so far, sees the possibility that neither Biden nor anyone else will have enough delegates to score a decisive victory in next year’s Democratic Party convention.
“I think [California Senator] Kamala Harris has a good opportunity,” he said. “I think [Vermont Senator Bernie] Sanders and [Massachusetts Senator Elizabeth] Warren have a good opportunity and I think Mayor Pete [Buttigieg]. I think they may well have a perfect convention where nobody gets a majority on the first ballot and deals are going to have to be made.”
CLICK HERE TO GET THE FOX BUSINESS APP
But in the end, Penn said the outcome of the2020 presidential electionwill depend a lot on what the current occupant of the White House does from here.
“Look, I’ve run incumbent presidential campaigns before,” he explained. “He’s got to show that he’s got a record, that he’s got a whole plan for the next term so that he can make a difference. And he has to deal with his personality issues to reassure suburban voters or he’s not going to get them back.”
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Does Andhra Sugars (NSE:ANDHRSUGAR) Deserve A Spot On Your Watchlist?
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Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. But as Warren Buffett has mused, 'If you've been playing poker for half an hour and you still don't know who the patsy is, you're the patsy.' When they buy such story stocks, investors are all too often the patsy.
In contrast to all that, I prefer to spend time on companies likeAndhra Sugars(NSE:ANDHRSUGAR), which has not only revenues, but also profits. Even if the shares are fully valued today, most capitalists would recognize its profits as the demonstration of steady value generation. 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 Andhra Sugars
As one of my mentors once told me, share price follows earnings per share (EPS). Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Who among us would not applaud Andhra Sugars's stratospheric annual EPS growth of 58%, 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.
I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats). The good news is that Andhra Sugars is growing revenues, and EBIT margins improved by 6 percentage points to 18%, over the last year. Ticking those two boxes is a good sign of growth, in my book.
The chart below shows how the company's bottom and top lines have progressed over time. To see the actual numbers, click on the chart.
Andhra Sugars isn't a huge company, given its market capitalization of ₹8.7b. That makes it extra important to check on itsbalance sheet strength.
Personally, I like to see high insider ownership of a company, since it suggests that it will be managed in the interests of shareholders. So as you can imagine, the fact that Andhra Sugars insiders own a significant number of shares certainly appeals to me. In fact, they own 44% of the shares, making insiders a very influential shareholder group. I'm always comforted by solid insider ownership like this, as it implies that those running the business are genuinely motivated to create shareholder value. In terms of absolute value, insiders have ₹3.8b invested in the business, using the current share price. That's nothing to sneeze at!
Andhra Sugars's earnings per share have taken off like a rocket aimed right at the moon. That EPS growth certainly has my attention, and the large insider ownership only serves to further stoke my interest. At times fast EPS growth is a sign the business has reached an inflection point; and I do like those. So to my mind Andhra Sugars is worth putting on your watchlist; after all, shareholders do well when the market underestimates fast growing companies. Of course, profit growth is one thing but it's even better if Andhra Sugars is receiving high returns on equity, since that should imply it can keep growing without much need for capital.Click on this link to see how it is faring against the average in its industry.
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. |
Have Insiders Been Buying Atul Ltd (NSE:ATUL) Shares?
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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sellAtul Ltd(NSE:ATUL), you may well want to know whether insiders have been buying or selling.
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
View our latest analysis for Atul
While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading.
V. Rangan purchased 2000 shares over the year. The average price per share was ₹4,008. 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Atul insiders own 7.1% of the company, currently worth about ₹8.3b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Atul. That's what I like to see! Therefore, you should should definitely take a look at thisFREEreport showing analyst forecasts for Atul.
But note:Atul may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Our Take On Control Print Limited's (NSE:CONTROLPR) CEO Salary
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Basant Kabra became the CEO of Control Print Limited (NSE:CONTROLPR) in 2008. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Control Print
At the time of writing our data says that Control Print Limited has a market cap of ₹3.9b, and is paying total annual CEO compensation of ₹19m. (This figure is for the year to March 2018). While we always look at total compensation first, we note that the salary component is less, at ₹2.7m. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹1.3m.
Thus we can conclude that Basant Kabra receives more in total compensation than the median of a group of companies in the same market, and of similar size to Control Print Limited. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Control Print has changed from year to year.
On average over the last three years, Control Print Limited has grown earnings per share (EPS) by 6.7% each year (using a line of best fit). Revenue was pretty flat on last year.
I would argue that the improvement in revenue isn't particularly impressive, but I'm happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. Shareholders might be interested inthisfreevisualization of analyst forecasts.
Given the total loss of 15% over three years, many shareholders in Control Print Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
We examined the amount Control Print Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. CEO compensation is one thing, but it is also interesting tocheck if the CEO is buying or selling Control Print (free visualization of insider trades).
Important note:Control Print may not be the best stock to buy. You might find somethingbetterinthis list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Our Take On Control Print Limited's (NSE:CONTROLPR) CEO Salary
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Basant Kabra became the CEO of Control Print Limited (NSE:CONTROLPR) in 2008. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Control Print
Our data indicates that Control Print Limited is worth ₹3.9b, and total annual CEO compensation is ₹19m. (This figure is for the year to March 2018). We think total compensation is more important but we note that the CEO salary is lower, at ₹2.7m. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹1.3m.
Thus we can conclude that Basant Kabra receives more in total compensation than the median of a group of companies in the same market, and of similar size to Control Print Limited. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Control Print, below.
Over the last three years Control Print Limited has grown its earnings per share (EPS) by an average of 6.7% per year (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
I'm not particularly impressed by the revenue growth, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. It could be important to checkthis free visual depiction ofwhat analysts expectfor the future.
Given the total loss of 15% over three years, many shareholders in Control Print Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared total CEO remuneration at Control Print Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Although we'd stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. Whatever your view on compensation, you might want tocheck if insiders are buying or selling Control Print shares (free trial).
If you want to buy a stock that is better than Control Print, 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. |
Is Gujarat Gas Limited (NSE:GUJGAS) Worth ₹176 Based On Its Intrinsic Value?
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In this article we are going to estimate the intrinsic value of Gujarat Gas Limited (NSE:GUJGAS) by taking the expected future cash flows and 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.
Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model.
Check out our latest analysis for Gujarat Gas
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate:
[{"": "Levered FCF (\u20b9, Millions)", "2019": "\u20b92.68k", "2020": "\u20b93.81k", "2021": "\u20b95.90k", "2022": "\u20b97.11k", "2023": "\u20b98.28k", "2024": "\u20b99.43k", "2025": "\u20b910.55k", "2026": "\u20b911.67k", "2027": "\u20b912.81k", "2028": "\u20b913.97k"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x3", "2020": "Analyst x3", "2021": "Analyst x4", "2022": "Est @ 20.37%", "2023": "Est @ 16.52%", "2024": "Est @ 13.83%", "2025": "Est @ 11.95%", "2026": "Est @ 10.63%", "2027": "Est @ 9.7%", "2028": "Est @ 9.06%"}, {"": "Present Value (\u20b9, Millions) Discounted @ 14.43%", "2019": "\u20b92.35k", "2020": "\u20b92.91k", "2021": "\u20b93.94k", "2022": "\u20b94.15k", "2023": "\u20b94.22k", "2024": "\u20b94.20k", "2025": "\u20b94.11k", "2026": "\u20b93.97k", "2027": "\u20b93.81k", "2028": "\u20b93.63k"}]
Present Value of 10-year Cash Flow (PVCF)= ₹37.27b
"Est" = FCF growth rate estimated by Simply Wall St
After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 7.6%. We discount the terminal cash flows to today's value at a cost of equity of 14.4%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = ₹14b × (1 + 7.6%) ÷ (14.4% – 7.6%) = ₹218b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= ₹₹218b ÷ ( 1 + 14.4%)10= ₹56.72b
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 ₹93.99b. 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 ₹136.54. Compared to the current share price of ₹176.45, the company appears slightly overvalued at the time of writing. 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 Gujarat Gas as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 14.4%, which is based on a levered beta of 0.800. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Gujarat Gas, I've put together three fundamental aspects you should look at:
1. Financial Health: Does GUJGAS 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 GUJGAS'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 GUJGAS? 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 IN 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. |
Frasers Centrepoint Trust (SGX:J69U) Is Yielding 4.7% - But Is It A Buy?
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Is Frasers Centrepoint Trust (SGX:J69U) a good dividend stock? How would you know? Dividend paying companies with growing earnings can be highly rewarding in the long term. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter.
In this case, Frasers Centrepoint Trust likely looks attractive to investors, given its 4.7% dividend yield and a payment history of over ten years. It would not be a surprise to discover that many investors buy it for the dividends. There are a few simple ways to reduce the risks of buying Frasers Centrepoint Trust for its dividend, and we'll go through these below.
Explore this interactive chart for our latest analysis on Frasers Centrepoint Trust!
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Frasers Centrepoint Trust paid out 87% of its profit as dividends, over the trailing twelve month period. Paying out a majority of its earnings limits the amount that can be reinvested in the business. This may indicate a commitment to paying a dividend, or a dearth of investment opportunities.
Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. The company paid out 87% of its free cash flow as dividends last year, which is adequate, but reduces the wriggle room in the event of a downturn. It's positive to see that Frasers Centrepoint Trust's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
As Frasers Centrepoint Trust has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A quick way to check a company's financial situation uses these two ratios: net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. Frasers Centrepoint Trust has net debt of 6.30 times its earnings before interest, tax, depreciation and amortisation (EBITDA) which implies meaningful risk if interest rates rise of earnings decline.
We calculated its interest cover by measuring its earnings before interest and tax (EBIT), and dividing this by the company's net interest expense. Net interest cover of 5.93 times its interest expense appears reasonable for Frasers Centrepoint Trust, although we're conscious that even high interest cover doesn't make a company bulletproof. Despite a decent level of interest cover, we think that shareholders should remain cautious of the high level of net debt. Rising rates or tighter debt markets have a nasty habit of making fools of highly-indebted dividend stocks.
Consider gettingour latest analysis on Frasers Centrepoint Trust's financial position here.
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. Frasers Centrepoint Trust has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. The dividend has been stable over the past 10 years, which is great. We think this could suggest some resilience to the business and its dividends. During the past ten-year period, the first annual payment was S$0.078 in 2009, compared to S$0.12 last year. Dividends per share have grown at approximately 4.5% per year over this time.
While the consistency in the dividend payments is impressive, we think the relatively slow rate of growth is unappealing.
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 not great to see that Frasers Centrepoint Trust's have fallen at approximately 12% over the past five years. If earnings continue to decline, the dividend may come under pressure. Every investor should make an assessment of whether the company is taking steps to stabilise the situation.
Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. Frasers Centrepoint Trust's is paying out more than half its income as dividends, but at least the dividend is covered by both reported earnings and cashflow. Moreover, earnings have been shrinking. While the dividends have been fairly steady, we'd wonder for how much longer this will be sustainable if earnings continue to decline. While we're not hugely bearish on it, overall we think there are potentially better dividend stocks than Frasers Centrepoint Trust out there.
Given that earnings are not growing, the dividend does not look nearly so attractive. Businesses can change though, and we think it would make sense to see whatanalysts are forecasting 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. |
What To Know Before Buying Frasers Centrepoint Trust (SGX:J69U) For Its Dividend
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Could Frasers Centrepoint Trust (SGX:J69U) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.
A high yield and a long history of paying dividends is an appealing combination for Frasers Centrepoint Trust. We'd guess that plenty of investors have purchased it for the income. When buying stocks for their dividends, you should always run through the checks below, to see if the dividend looks sustainable.
Click the interactive chart for our full dividend analysis
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. Looking at the data, we can see that 87% of Frasers Centrepoint Trust's profits were paid out as dividends in the last 12 months. It's paying out most of its earnings, which limits the amount that can be reinvested in the business. This may indicate limited need for further capital within the business, or highlight a commitment to paying a dividend.
In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Frasers Centrepoint Trust paid out 87% of its cash flow last year. This may be sustainable but it does not leave much of a buffer for unexpected circumstances. 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 Frasers Centrepoint Trust has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A quick way to check a company's financial situation uses these two ratios: net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and net interest cover. Net debt to EBITDA measures a company's total debt load relative to its earnings (lower = less debt), while net interest cover measures the company's ability to pay the interest on its debt (higher = greater ability to pay interest costs). Frasers Centrepoint Trust has net debt of 6.30 times its earnings before interest, tax, depreciation and amortisation (EBITDA) which implies meaningful risk if interest rates rise of earnings decline.
Net interest cover can be calculated by dividing earnings before interest and tax (EBIT) by the company's net interest expense. Frasers Centrepoint Trust has EBIT of 5.93 times its interest expense, which we think is adequate. Despite a decent level of interest cover, we think that shareholders should remain cautious of the high level of net debt. Rising rates or tighter debt markets have a nasty habit of making fools of highly-indebted dividend stocks.
We update our data on Frasers Centrepoint Trust every 24 hours, so you can always getour latest analysis of its financial health, here.
One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. Frasers Centrepoint Trust has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. During this period the dividend has been stable, which could imply the business could have relatively consistent earnings power. During the past ten-year period, the first annual payment was S$0.078 in 2009, compared to S$0.12 last year. This works out to be a compound annual growth rate (CAGR) of approximately 4.5% a year over that time.
Dividends have grown relatively slowly, which is not great, but some investors may value the relative consistency of the dividend.
Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. It's not great to see that Frasers Centrepoint Trust's have fallen at approximately 12% over the past five years. If earnings continue to decline, the dividend may come under pressure. Every investor should make an assessment of whether the company is taking steps to stabilise the situation.
When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. First, we think Frasers Centrepoint Trust is paying out an acceptable percentage of its cashflow and profit. It's not great to see earnings per share shrinking. The dividends have been relatively consistent, but we wonder for how much longer this will be true. In sum, we find it hard to get excited about Frasers Centrepoint Trust from a dividend perspective. It's not that we think it's a bad business; just that there are other companies that perform better on these criteria.
Without at least some growth in earnings per share over time, the dividend will eventually come under pressure either from costs or inflation. Very few businesses see earnings consistently shrink year after year in perpetuity though, and so it might be worth seeing what the 16analysts we track are forecasting for the future.
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. |
The Latest: RI House to finish work on state budget
PROVIDENCE, R.I. (AP) — The Latest on the Rhode Island budget (all times local): 10:50 p.m. Rhode Island's House of Representatives will finish voting Saturday on a nearly $10 billion state budget. House leaders had hoped to finish voting Friday night, and the chamber passed most of the budget articles. But Democratic House Speaker Nicholas Mattiello called for a recess at 10:30 p.m. The $9.97 billion budget would expand the state's pre-kindergarten program and add six new medical marijuana dispensaries, bringing the total to nine. It would create a board of trustees for the University of Rhode Island. It does not include Democratic Gov. Gina Raimondo's proposals for legalizing recreational marijuana, expanding the state's free college tuition program or adding new taxes. Raimondo called the budget a "mixed bag." She praised investments in pre-kindergarten and education, a top priority, but said she's concerned it provides less funding than she requested for job training and economic development. ___ 1:11 p.m. Rhode Island's House of Representatives is voting on a nearly $10 billion state budget. House leaders say they're hoping to vote Friday night, but they could adjourn for the day and return Saturday if the debate goes late. The $9.97 billion budget would expand the state's pre-kindergarten program and add six new medical marijuana dispensaries, bringing the total to nine. It would create a board of trustees for the University of Rhode Island. It does not include Democratic Gov. Gina Raimondo's proposals for legalizing recreational marijuana, expanding the state's free college tuition program or adding new taxes. Raimondo called the budget a "mixed bag." She praised investments in pre-kindergarten and education, a top priority, but said she's concerned it provides less funding than she requested for job training and economic development. |
Do You Know What Seshasayee Paper and Boards Limited's (NSE:SESHAPAPER) P/E Ratio Means?
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The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). We'll look at Seshasayee Paper and Boards Limited's (NSE:SESHAPAPER) P/E ratio and reflect on what it tells us about the company's share price. Based on the last twelve months,Seshasayee Paper and Boards's P/E ratio is 6.09. That corresponds to an earnings yield of approximately 16%.
View our latest analysis for Seshasayee Paper and Boards
Theformula for price to earningsis:
Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Or for Seshasayee Paper and Boards:
P/E of 6.09 = ₹927.3 ÷ ₹152.26 (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.
P/E ratios primarily reflect market expectations around earnings growth rates. When earnings grow, the 'E' increases, over time. Therefore, even if you pay a high multiple of earnings now, that multiple will become lower in the future. Then, a lower P/E should attract more buyers, pushing the share price up.
In the last year, Seshasayee Paper and Boards grew EPS like Taylor Swift grew her fan base back in 2010; the 56% gain was both fast and well deserved. The sweetener is that the annual five year growth rate of 63% is also impressive. So I'd be surprised if the P/E ratio wasnotabove average.
The P/E ratio indicates whether the market has higher or lower expectations of a company. We can see in the image below that the average P/E (9) for companies in the forestry industry is higher than Seshasayee Paper and Boards's P/E.
Its relatively low P/E ratio indicates that Seshasayee Paper and Boards shareholders think it will struggle to do as well as other companies in its industry classification. Many investors like to buy stocks when the market is pessimistic about their prospects. It is arguably worth checkingif insiders are buying shares, because that might imply they believe the stock is undervalued.
The 'Price' in P/E reflects the market capitalization of the company. So it won't reflect the advantage of cash, or disadvantage of debt. 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 spending might be good or bad, overall, but the key point here is that you need to look at debt to understand the P/E ratio in context.
Seshasayee Paper and Boards has net cash of ₹2.0b. This is fairly high at 17% of its market capitalization. That might mean balance sheet strength is important to the business, but should also help push the P/E a bit higher than it would otherwise be.
Seshasayee Paper and Boards's P/E is 6.1 which is below average (15.5) in the IN market. Not only should the net cash position reduce risk, but the recent growth has been impressive. The below average P/E ratio suggests that market participants don't believe the strong growth will continue. Since analysts are predicting growth will continue, one might expect to see a higher P/E soit may be worth looking closer.
When the market is wrong about a stock, it gives savvy investors an opportunity. If the reality for a company is not as bad as the P/E ratio indicates, then the share price should increase as the market realizes this. So thisfreevisual report on analyst forecastscould hold the key to an excellent investment decision.
Of courseyou might be able to find a better stock than Seshasayee Paper and Boards. 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. |
Rhode Island House to finish work on state budget Saturday
PROVIDENCE, R.I. (AP) — Rhode Island's House of Representatives will finish voting on a nearly $10 billion state budget on Saturday. House leaders had hoped to finish voting Friday night and the chamber passed most of the budget articles. But after long debates about funding for the homeless, staffing at the Rhode Island Department of Children, Youth and Families and zoning control in Providence, Democratic House Speaker Nicholas Mattiello called for a recess at 10:30 p.m. Lawmakers return to the State House at 10 a.m. Saturday. The $9.97 billion budget would expand the state's pre-kindergarten program and add six new medical marijuana dispensaries, bringing the total to nine. It would create a board of trustees for the University of Rhode Island. It does not include Democratic Gov. Gina Raimondo's proposals for legalizing recreational marijuana, expanding the state's free college tuition program, increasing the minimum wage or adding several new taxes. Raimondo called the budget a "mixed bag." She praised investments in pre-kindergarten and education, a top priority, but said she's concerned it provides less funding than she requested for job training and economic development. Here are some highlights: ___ TAXES AND FEES The budget proposal doesn't include most of the taxes or assessments Raimondo proposed. She wanted to charge large companies based on their number of employees using Medicaid, which Mattiello said wasn't in line with his goal of creating a pro-business budget. Raimondo also sought to tax lobbying services, design services and services to commercial buildings, such as landscaping and janitorial work, too. House lawmakers nixed those plans, as well as proposed increases on tobacco products, but went along with Raimondo's idea to tax digital downloads and streaming services, including Netflix. They also did not want to raise beach parking fees but saw fit to raise campground fees. Rhode Island is also going to continue to phase out its car tax. Story continues Mattiello said the House offset the revenue that would have been generated by the new taxes by not doing some of the proposed new programming, finding efficiencies and restricting departmental overspending. The budget would eliminate the tax on feminine hygiene products. And it would create a $5 million annual fee on opioid manufacturers, aimed at compensating the public for the opioid epidemic. ___ EDUCATION The budget bill would add 270 to 300 more pre-K seats to the 1,080 that are already funded and provide additional state aid to municipalities for public schools. Mattiello said the budget invests very heavily in education, "as we should." It doesn't maintain Raimondo's proposal to expand the state's free college tuition program, currently offered at the Community College of Rhode Island to recent high school graduates. Raimondo wanted to offer it to adult students at CCRI and cover the last two years of a four-year degree at Rhode Island College. The budget would give URI its own trustee board. Currently the six-member Council on Post-Secondary Education oversees the state's universities. URI President David Dooley says the school's growing prominence necessitates a responsive board that thinks about finances, enrollment and research opportunities on a multi-year basis. ___ MARIJUANA Raimondo proposed to legalize recreational marijuana for adult use. Mattiello, however, said there seemed to be no desire among the public or lawmakers to legalize recreational marijuana this year, so House lawmakers decided to expand the number of medical marijuana dispensaries from three to nine instead. Raimondo said the expansion of medical marijuana possibly lays the foundation for legalizing recreational marijuana in the future, and she's fine with not legalizing recreational marijuana this year. ___ ECONOMIC DEVELOPMENT The proposed budget would change the way the Rebuild Rhode Island tax credit program provides financing for real estate development. Currently the Rhode Island Commerce Corporation can allocate up to $150 million in tax credits and sales tax doesn't count toward the $150 million limit. Financing has been provided to about 40 projects for a total of $111 million in tax credits authorized since the program began three years ago, with a sales tax of about $40 million, according to Commerce. The budget would allow for $200 million in tax credits over the life of the program but place the sales tax under the cap retroactively, according to Commerce, so the agency could do only about three more projects. Commerce has sufficient resources, Mattiello said, noting that unemployment is low and revenues are stressed. Raimondo had also wanted to expand the Real Jobs Rhode Island training program, with an additional $1.2 million. House lawmakers didn't agree to that. ___ OTHER INITIATIVES The budget proposal includes an individual mandate that would penalize people who don't have health insurance. The recommendation follows the expiration of the federal mandate that required people to obtain health insurance or face tax penalties. It was eliminated as part of the 2017 tax reform law. Residents would have to get new state license plates with a design that is supposed to help with electronic tolling. The budget would also remove to remove the city of Providence's jurisdiction over zoning in the state-owned Interstate 195 redevelopment district. Mattiello and Democratic Senate President Dominick Ruggerio were upset with Providence Mayor Jorge Elorza for jeopardizing plans for a proposed skyscraper on the land. |
Calculating The Intrinsic Value Of Lyka Labs Limited (NSE:LYKALABS)
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Does the June share price for Lyka Labs Limited (NSE:LYKALABS) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by projecting its future cash flows and then 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!
Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model.
Check out our latest analysis for Lyka Labs
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 begin with, we have to get estimates of the next ten years of cash flows. Seeing as no analyst estimates of free cash flow are available to us, we have extrapolate the previous free cash flow (FCF) from the company's last reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars:
[{"": "Levered FCF (\u20b9, Millions)", "2019": "\u20b954.35", "2020": "\u20b959.50", "2021": "\u20b964.79", "2022": "\u20b970.29", "2023": "\u20b976.07", "2024": "\u20b982.16", "2025": "\u20b988.63", "2026": "\u20b995.52", "2027": "\u20b9102.88", "2028": "\u20b9110.77"}, {"": "Growth Rate Estimate Source", "2019": "Est @ 10.3%", "2020": "Est @ 9.48%", "2021": "Est @ 8.9%", "2022": "Est @ 8.49%", "2023": "Est @ 8.21%", "2024": "Est @ 8.01%", "2025": "Est @ 7.87%", "2026": "Est @ 7.78%", "2027": "Est @ 7.71%", "2028": "Est @ 7.66%"}, {"": "Present Value (\u20b9, Millions) Discounted @ 17.89%", "2019": "\u20b946.10", "2020": "\u20b942.81", "2021": "\u20b939.55", "2022": "\u20b936.40", "2023": "\u20b933.41", "2024": "\u20b930.61", "2025": "\u20b928.01", "2026": "\u20b925.61", "2027": "\u20b923.40", "2028": "\u20b921.37"}]
Present Value of 10-year Cash Flow (PVCF)= ₹327.27m
"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 7.6%. We discount the terminal cash flows to today's value at a cost of equity of 17.9%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = ₹111m × (1 + 7.6%) ÷ (17.9% – 7.6%) = ₹1.2b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= ₹₹1.2b ÷ ( 1 + 17.9%)10= ₹222.36m
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is ₹549.63m. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of ₹19.62. Compared to the current share price of ₹22.1, the company appears around fair value at the time of writing. 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 Lyka Labs 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 17.9%, which is based on a levered beta of 1.202. 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. For Lyka Labs, I've put together three pertinent factors you should further examine:
1. Financial Health: Does LYKALABS have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of LYKALABS? 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 IN 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. |
A Spotlight On L&T Technology Services Limited's (NSE:LTTS) Fundamentals
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I've been keeping an eye on L&T Technology Services Limited (NSE:LTTS) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe LTTS has a lot to offer. Basically, it is a company with great financial health as well as a a great track record of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the fullreport on L&T Technology Services here.
LTTS delivered a bottom-line expansion of 51% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 31%. which is what investors like to see! LTTS's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that LTTS has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. LTTS appears to have made good use of debt, producing operating cash levels of 11.48x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For L&T Technology Services, there are three pertinent factors you should further research:
1. Future Outlook: What are well-informed industry analysts predicting for LTTS’s future growth? Take a look at ourfree research report of analyst consensusfor LTTS’s outlook.
2. Valuation: What is LTTS 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 LTTS is currently mispriced by the market.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of LTTS? 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. |
Is It Worth Buying Magma Fincorp Limited (NSE:MAGMA) For Its 0.6% Dividend Yield?
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Is Magma Fincorp Limited (NSE:MAGMA) a good dividend stock? How would you know? Dividend paying companies with growing earnings can be highly rewarding in the long term. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.
A 0.6% yield is nothing to get excited about, but investors probably think the long payment history suggests Magma Fincorp has some staying power. Some simple analysis can reduce the risk of holding Magma Fincorp for its dividend, and we'll focus on the most important aspects 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. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. In the last year, Magma Fincorp paid out 7.1% of its profit as dividends. With a low payout ratio, it looks like the dividend is comprehensively covered by earnings.
Consider gettingour latest analysis on Magma Fincorp's financial position here.
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. Magma Fincorp has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. The dividend has been stable over the past 10 years, which is great. We think this could suggest some resilience to the business and its dividends. During the past ten-year period, the first annual payment was ₹0.20 in 2009, compared to ₹0.80 last year. Dividends per share have grown at approximately 15% per year over this time.
With rapid dividend growth and no notable cuts to the dividend over a lengthy period of time, we think this company has a lot going for it.
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. Magma Fincorp has grown its earnings per share at 9.1% per annum over the past five years. A low payout ratio and strong historical earnings growth suggests Magma Fincorp has been effectively reinvesting in its business. We think this generally bodes well for its dividend prospects.
To summarise, shareholders should always check that Magma Fincorp's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. We're glad to see Magma Fincorp has a low payout ratio, as this suggests earnings are being reinvested in the business. 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 Magma Fincorp from a dividend perspective.
Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 6 analysts we track are forecasting for Magma Fincorpfor freewith publicanalyst estimates for the company.
Looking for more high-yielding dividend ideas? Try ourcurated list of dividend stocks with a yield above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Manali Petrochemicals Limited (NSE:MANALIPETC): Has Recent Earnings Growth Beaten Long-Term Trend?
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Assessing Manali Petrochemicals Limited's (NSE:MANALIPETC) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess MANALIPETC's recent performance announced on 31 March 2019 and evaluate these figures to its long-term trend and industry movements.
Check out our latest analysis for Manali Petrochemicals
MANALIPETC's trailing twelve-month earnings (from 31 March 2019) of ₹764m has jumped 32% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 15%, indicating the rate at which MANALIPETC is growing has accelerated. What's enabled this growth? Let's take a look at whether it is solely a result of industry tailwinds, or if Manali Petrochemicals has seen some company-specific growth.
In terms of returns from investment, Manali Petrochemicals has fallen short of achieving a 20% return on equity (ROE), recording 17% instead. However, its return on assets (ROA) of 12% exceeds the IN Chemicals industry of 9.2%, indicating Manali Petrochemicals has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Manali Petrochemicals’s debt level, has declined over the past 3 years from 22% to 18%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 1.1% to 7.4% over the past 5 years.
While past data is useful, it doesn’t tell the whole story. While Manali Petrochemicals has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I suggest you continue to research Manali Petrochemicals to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for MANALIPETC’s future growth? Take a look at ourfree research report of analyst consensusfor MANALIPETC’s outlook.
2. Financial Health: Are MANALIPETC’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
China state media urges U.S. to drop win-at-all-costs trade stance
SHANGHAI (Reuters) - Instead of waging a trade war with China, the United States should drop its win-at-all-costs mentality and consider the interests of its own people as well as the global community, the official People's Daily said an editorial on Saturday.
The Chinese Communist Party's newspaper urged the United States to cancel all tariffs on Chinese goods, saying the only way to resolve trade issues was through "equal dialogue".
Hopes that the two sides can rekindle negotiations were raised in the run-up to a meeting next week between President Xi Jinping and U.S. President Donald Donald Trump in Japan, where they will both attend a Group of 20 summit.
The Office of the U.S. Trade Representative is holding seven days of hearings from manufacturers and other businesses likely to be affected by a new round of tariffs on $300 billion worth of Chinese imports proposed by U.S. President Donald Trump.
The People's Daily said all previous hearings had shown "overwhelming" opposition to tariff increases from all walks of life, but it had made no difference.
"It seems that some people in the United States are waving the tariff stick in order to strengthen their so-called 'industrial competitive advantage'," it said.
"They do not consider public opinion, do not consider national conditions, and do not take the international economic order into account. They just want the renown as 'winners' but cannot understand the fact that they basically cannot win."
The U.S. National Retail Federation (NRF) said on Friday that the proposed tariff extension on Chinese goods, including cellphones and computers, could cost U.S. consumers an additional $12.2 billion each year.
(Reporting by David Stanway and Winni Zhou; Editing by SImon Cameron-Moore) |
Manali Petrochemicals Limited's (NSE:MANALIPETC) Earnings Grew 32%, Did It Beat Long-Term Trend?
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After reading Manali Petrochemicals Limited's (NSE:MANALIPETC) most recent earnings announcement (31 March 2019), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. As a long term investor, I pay close attention to earnings trend, rather than the figures published at one point in time. I also compare against an industry benchmark to check whether Manali Petrochemicals's performance has been impacted by industry movements. In this article I briefly touch on my key findings.
See our latest analysis for Manali Petrochemicals
MANALIPETC's trailing twelve-month earnings (from 31 March 2019) of ₹764m has jumped 32% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 15%, indicating the rate at which MANALIPETC is growing has accelerated. How has it been able to do this? Well, let’s take a look at if it is only a result of industry tailwinds, or if Manali Petrochemicals has experienced some company-specific growth.
In terms of returns from investment, Manali Petrochemicals has fallen short of achieving a 20% return on equity (ROE), recording 17% instead. However, its return on assets (ROA) of 12% exceeds the IN Chemicals industry of 9.2%, indicating Manali Petrochemicals has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Manali Petrochemicals’s debt level, has declined over the past 3 years from 22% to 18%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 1.1% to 7.4% over the past 5 years.
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Manali Petrochemicals gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Manali Petrochemicals to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for MANALIPETC’s future growth? Take a look at ourfree research report of analyst consensusfor MANALIPETC’s outlook.
2. Financial Health: Are MANALIPETC’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Top Ten Royal Feuds: From Meghan and Kate’s Secret Spats to Charles and Diana’s Eternal Hate
Getty UNSISTERLY Kate Middleton and Meghan Markle Despite the best efforts of palace spinners, once this genie was out of the bottle it proved impossible to put back. The roots of the row go back into the mists of time (well, 2016), but stress and nerves ahead of Meghan’s wedding didn’t help. One flashpoint was a bridesmaid dress fitting for Princess Charlotte, where Meghan’s brusqueness made Kate cry . Meghan and Kate, the palace has conceded, are “very different people” but they insist that the princesses hold no personal animosity towards each other. Still, the next 50 years should be fun. BROTHERLY LOVE LOST Prince William and Prince Harry Once the closest of brothers, they fell out after William urged Harry to take a little time to think about things before proposing to Meghan. Hotheaded Harry flew into a rage and accused William of not supporting him. The upshot? Harry and Meghan have moved out of Kensington Palace to Windsor and set up their own court and press operation answerable to the monarch, not his brother. There is only one problem for Harry: his brother will be the monarch sooner or later. The latest brainwave to solve the problem is for Harry and Meghan to move to Africa . Hmm, maybe. Royal Feud Explodes Into Public View Again as Palace Mulls Exile of Harry and Meghan THAT WOMAN Fergie and Prince Philip Philip thought Sarah Ferguson was a breath of fresh air when she first arrived on the scene, especially after his horse-mad daughter-in-law shrewdly took up carriage racing, but the affection turned sour after he began to see her as an attention-seeker—hence, allegedly, his calling her “that woman.” Fergie told friends that Philip ruled over his fearful family with a rod of iron. Things went from bad to worse when the annual royal vacation in Balmoral was enlivened by pictures in The Sun of Fergie’s new boyfriend, John Bryant, sucking her toes. She was still married to Andrew at that stage, but not for long. All these years later Philip still refuses to be in the same room as her, although the old rogue had to grin and bear it when Harry invited her to his wedding. Her ongoing romantic relationship with Andrew hasn’t improved Philip’s mood any. Story continues THAT WOMAN (2) Prince William and Fergie William’s 2012 wedding came less than two year after Fergie’s lowest point, when she was videoed proposing a deal to an undercover reporter dressed as an Arab sheikh: she would introduce him to Prince Andrew for £500,000. She was filmed accepting a £27,600 down payment and telling the reporter: “I can open any door you want.” William was so horrified that he didn’t invite Fergie to his wedding . Fergie said afterwards that she was so upset, as she revealed on the Oprah Winfrey Show , she fled to Thailand after not receiving the invitation. She said: “I was not invited, and I chose to go and be in Thailand in a place called Camelia and… the jungle embraced me.” MIRROR MIRROR Fergie and Diana Fergie has claimed that media reports of her oft-reported rivalry with Princess Diana are nonsense. However, after Diana invited Sarah Ferguson (her fourth cousin) to her wedding and gave her a piece of fabric to have made into a dress for the event, Sarah said she felt snubbed not to be invited to the post-ceremony reception. Diana revealed to her biographer Andrew Morton, that Fergie “wooed everybody in this family and did it so well. She left me looking like dirt.” The princess added that Prince Charles told her, “I wish you would be like Fergie—all jolly.” However as both their marriages crumbled they became stalwart friends and confidantes, “We burned the phone wires into the night, trading secrets and jokes that no-one else would understand,” Sarah wrote. MYSTERY FEUD Kate Middleton and Rose Hanbury The British papers have been untypically coy about why Kate was rumored to have fallen out with former model Rose Hanbury, aka the Marchioness of Cholmondeley. In fact, the papers are dancing around a longstanding rumor of an affair between William and Rose . The rumored former girlfriend of William lives a few miles across the fields from the Cambridges, with her husband, film director David Rocksavage, aka the Marquess of Cholmondeley. Kate Middleton, Royal Enigma, Faces Her First Scandal COOKIE CUTTER The Queen Mother and the Duke of Windsor The Queen Mother always liked to give the impression that becoming king and queen was a tremendous burden for her and her husband, King George VI (better known as stammering Bertie from the movie The King’s Speech ). The Duke of Windsor, who was King Edward VIII for less than a year before giving up his crown to marry Wallis Simpson, took issue with that characterization, claiming that Elizabeth had opportunistically seized her chance to force him off the throne to advance her own ambitions. He spread a malicious rumor that she was actually the product of an illicit union between her father and the cook , and called her ‘Cookie’ to his dying day. SIBLING WARFARE Andrew and Charles Royal brothers fall out all the time, and none more furiously in recent years than Andrew and Charles. Charles sees Andrew as an embarrassment due to his poor choice of friends (such as Jeffrey Epstein ) and his relaxed attitude to accepting vast sums of money from dodgy political contacts in Kazakhstan. Andrew resents the fact that Charles has sought to cut him out of the inner circle royal, adding insult to injury by downgrading his daughters to non-full-time royals (they have had to get jobs, poor loves) and removing their police protection. ALL COMERS PRINCESS ANNE VS. EVERYONE The Queen’s daughter Princess Anne is the hardest working royal, and as such has carte blanche to slag everyone else off in the family at any opportunity. She prefers people to fear her than like her, sees her brothers as good evidence of the ill-advised nature of primogeniture, and is ruthless in administering her slights. Most recently she had a go at the younger royals for being too touchy-feely: “The theory was that you couldn’t shake hands with everybody, so don’t start,” she told a documentary , “I kind of stick with that, but I noticed others don’t. It’s become a shaking-hands exercise rather than a walkabout.” How dare they! FOREVER BITTER CHARLES AND DIANA The biggest royal feud of them all didn’t end with Diana’s death in 1997. In fact, rather like old Ben Kenobi in Star Wars , her death made Diana more powerful than Charles could ever have imagined. More than 20 years on, Charles still struggles to be accepted and the chances of his wife ever being joyously received by the British public as queen are below zero. Many people believe Diana was murdered by the British establishment, and, prior to her death Diana allegedly wrote a note (some have claimed it could be a forgery) that said, “This particular phase in my life is the most dangerous—my husband is planning ‘an accident’ in my car, brake failure and serious head injury...” Even the Queen is not above the theories; she is said to have remarked that somebody might have “greased her brakes” when she first heard of Diana’s crash. Fanciful? Maybe, but what’s not in doubt is that these two really hated each other. Read more at The Daily Beast. Get our top stories in your inbox every day. Sign up now! Daily Beast Membership: Beast Inside goes deeper on the stories that matter to you. Learn more. |
Is Marshall Machines Limited's (NSE:MARSHALL) P/E Ratio Really That Good?
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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 Marshall Machines Limited's (NSE:MARSHALL) P/E ratio to inform your assessment of the investment opportunity. Looking at earnings over the last twelve months,Marshall Machines has a P/E ratio of 4.33. That corresponds to an earnings yield of approximately 23%.
View our latest analysis for Marshall Machines
Theformula for price to earningsis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for Marshall Machines:
P/E of 4.33 = ₹21.5 ÷ ₹4.97 (Based on the year to March 2019.)
The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. That isn't necessarily good or bad, but a high P/E implies relatively high expectations of what a company can achieve in the future.
P/E ratios primarily reflect market expectations around earnings growth rates. When earnings grow, the 'E' increases, over time. 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.
Marshall Machines shrunk earnings per share by 9.2% last year. But it has grown its earnings per share by 50% per year over the last five years.
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 Marshall Machines has a lower P/E than the average (14.4) in the machinery industry classification.
This suggests that market participants think Marshall Machines will underperform other companies in its industry. Since the market seems unimpressed with Marshall Machines, it's quite possible it could surprise on the upside. You should delve deeper. I like to checkif company insiders have been buying or selling.
Don't forget that the P/E ratio considers market capitalization. That means it doesn't take debt or cash into account. In theory, a company can lower its future P/E ratio by using cash or debt to invest in growth.
Spending on growth might be good or bad a few years later, but the point is that the P/E ratio does not account for the option (or lack thereof).
Net debt totals 70% of Marshall Machines's market cap. If you want to compare its P/E ratio to other companies, you should absolutely keep in mind it has significant borrowings.
Marshall Machines's P/E is 4.3 which is below average (15.5) in the IN market. The P/E reflects market pessimism that probably arises from the lack of recent EPS growth, paired with significant leverage.
Investors should be looking to buy stocks that the market is wrong about. If it is underestimating a company, investors can make money by buying and holding the shares until the market corrects itself. Although we don't have analyst forecasts, shareholders might want to examinethis detailed historical graphof earnings, revenue and cash flow.
But note:Marshall Machines may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with strong recent earnings growth (and a P/E ratio below 20).
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
'Dota Underlords' has more people playing now than 'Artifact' ever did
Just a day after going live, theDota Underlordsbetais off to a great start. According to stats fromSteamDB, as of Friday night it had over 84,000 players at once -- higher than Valve's troubledDota 2spinoffArtifactever had. Ittopped out at around 60,000, whileUnderlordshas already had over 179,000 simultaneous participants -- a number that the tracking site believes includes players on mobile devices.
Thefree-to-play turn-based strategy game is Valve's version of the modDota Auto Chess, and making a game that's much easier to play without spending money on new pieces is clearly working out. The maker ofDota Auto Chessis working on a standalone game that will be exclusive to Epic's Game Store on the PC, andKotakupoints out thatLeague of Legendsmaker Riot has had success with a similar game it released in beta this week calledTeamfight Tactics.
That level of growth and competition brings to mind the recent slew of battle royale titles, and the Underlords team is already keeping up the pace with several updates. According to a tweet, it's working on a number of new features beyond just game balancing, including social features, hero voiceovers, a full scoreboard, and it's "exploring" the possibility of a Turbo Mode based on player suggestions. |
'How Many People Will Be Killed?': Why Trump Decided Against Striking Iran
The planes were ready—their deadly cargo poised for delivery within a half-hour.
President Donald Trump had been given a series of options Thursday night on how to respond toIran’s downing of an unmanned American surveillance drone. Senior military adviserszeroed in on a plan to launchstrikes on a trio of sites within Iran, and it was up to Trump to give the final go-ahead.
If the planes took off, Trump later recounted to NBC, they would soon be at “a point where you wouldn’t turn back or couldn’t turn back.”
Trump’s decisionpoint came at the culmination of a tense 24 hours inside the West Wing after the drone went down.
How would he make his decision? “My gut,” he told legislators.
When the military officers came looking for the president’s final go-ahead, Trump said he had one last question.
“‘I want to know something before you go,'” Trump recounted. “‘How many people will be killed?'”
This account is based on information from more than a dozen legislators, congressional aides, administration officials and others, some of whom spoke on condition of anonymity to discuss internal deliberations.
Hours earlier,a model of a proposed new Air Force Onewas perched on the coffee table in the Oval Office. Its Trump-designed red, white and blue color scheme glistened under the Oval Office lights.
Seated behind the plane were Trump and Canadian Prime MinisterJustin Trudeau, whose visit to Washington on Thursday to discuss trade and tariffs was suddenly upstaged by the rising tensions in the Middle East. With reporters peppering Trump with a cacophony of questions about how he would respond to Tehran, the president took a moment to extoll the virtues of the new presidential plane. “It’s going to be terrific,” he declared.
Butwhat to do about Iran?
“You’ll find out. You’ll find out,” Trump said. “They made a very big mistake.”
The president, who had just come from a briefing on the incident,seemed to telegraph what he had learned, declaring, “I find it hard to believe it was intentional, if you want to know the truth.”
“I think that it could have been somebody who was loose and stupid that did it.”
Over a year earlier, Trump had defied most of the United States’ allies by pulling out of the Iran nuclear deal and strengthening sanctions on the regime, choking the Iranian economy and pushing Tehran to escalate tensions. Trudeau, who largely looked on in silence while Trump fielded questions, used his brief remarks to highlight the need for close coordination among nations.
“We look forward to discussing with our closest ally — their perspectives on this — and how we can move forward as an international community,” the Canadian prime minister said.
Trump, for his part, made no mention of alliances.
Trudeau’s meeting later that afternoon with Senate Majority Leader Mitch McConnell was abruptly cancelled when McConnell was summoned to the White House for a briefing on Iran.
But there was a glaring omission on the invitation list for briefing top congressional leaders and national security committee chairmen.
The heads of the House and Senate foreign relations committees were quickly added once the White House was reminded the panels have jurisdiction over the War Powers Act, according to a congressional aide familiar with the situation.
Once assembled, the lawmakers around the table made their case, one by one. Trump seemed eager to hear their opinions, even those of House Democrats who have launched a slew of investigations into the president.
“These conflicts have a way of escalating,” Senate Minority Leader Chuck Schumer told the president. Even if Trump didn’t intend to go to war, Schumer said, he could “bumble” into one.
The legislators saw “a commander in chief who struggled with the issue,” said Republican Sen. Jim Risch of Idaho, the chairman of the Foreign Relations Committee. “It was painful for him.”
Democrats made the case for caution, for partnering with allies, for taking a breath to de-escalate, as House Speaker Nancy Pelosi would put it later. Intelligence Committee Chairman Rep. Adam Schiff told the administration it could not continue to rely on the war authorizations approved by Congress after the Sept. 11, 2001 terror attacks.
White House reporters and photographers trained their eyes on a West Wing side door where the legislators would emerge, looking for any clues to what had transpired. When the legislators did turn up, there was a perplexing image: Schumer pumped his arms skyward in a celebratory “raise the roof” gesture while Pelosi cheerfully clapped.
Had the Democrats talked the president out of war? Had some sort of deal been struck?
Neither. It turned out Schumer had just relayed the happy news that his elderly mother had been released from the hospital.
“We left with the idea the president was going to consider some options,” Pelosi said.
Televisions across the White House were tuned, as usual, to Fox News. Tucker Carlson’s image flickered on the screen as he made his case earlier in the week against going to war with Iran.
Carlson was making a similar case to Trump in private, according to a White House official and a Republican close to the West Wing.
Trump had been soliciting a wide array of opinions about Iran aftera pair of tankers were damaged a week earliernear theStrait of Hormuz, an incident U.S. officialsblamed on the Iranians. The president was growing frustrated with his national security adviser John Bolton’s advocacy for a strike, the officials said.
The attack on the drone put the military option on the table.
But when Trump asked his question Thursday about how many Iranians could die in the strikes, the answer gave him pause. He was told 150 Iranian lives were at stake.
“I thought about it for a second,” Trump told NBC, “and I said: ‘You know what? Theyshot down an unmanned drone, plane, whatever you want to call it. And here we are sitting with 150 dead people that would have taken place probably within a half an hour after I said go ahead.’ And I didn’t like it. I didn’t think, I didn’t think it was proportionate.”
The president, long opposed to being drawn into a military conflict in the Middle East and in particular with an unpredictable foe like Iran, played up the drama of the moment. He tweeted Friday morning that the military had been “cocked and loaded” and that the weaponry was only 10 minutes away from being deployed.
As the day went on, a sense of normalcy returned to the White House.
On Friday afternoon, lawmakers filtered into the White House south lawn for the annual congressional picnic — just steps away from the windowless, basement Situation Room where security officials had debated what could come next.
Risch’s prediction: “There’s going to be something more proportional, obviously, and I suspect it’s going to be not kinetic action.”
—Your questionsabout the U.S.-Iran standoff, answered
—Black women voterswill be central to the 2020 election, experts predict
—Can Trump fire Fed Chair Jerome Powell?What history tells us
—Trump’sMAGA rallies cost big bucks—and cities foot the bills
—What you need to know about theupcoming 2020 primary debates
Get up to speed on your morning commute withFortune’sCEO Dailynewsletter. |
Here's Why I Think Maheshwari Logistics (NSE:MAHESHWARI) Might Deserve Your Attention Today
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Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. But as Peter Lynch said inOne Up On Wall Street, 'Long shots almost never pay off.'
In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies likeMaheshwari Logistics(NSE:MAHESHWARI). Even if the shares are fully valued today, most capitalists would recognize its profits as the demonstration of steady value generation. While a well funded company may sustain losses for years, unless its owners have an endless appetite for subsidizing the customer, it will need to generate a profit eventually, or else breathe its last breath.
View our latest analysis for Maheshwari Logistics
If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS). It's no surprise, then, that I like to invest in companies with EPS growth. We can see that in the last three years Maheshwari Logistics grew its EPS by 13% per year. That's a pretty good rate, if the company can sustain it.
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. Maheshwari Logistics maintained stable EBIT margins over the last year, all while growing revenue 19% to ₹10b. That's progress.
The chart below shows how the company's bottom and top lines have progressed over time. Click on the chart to see the exact numbers.
Since Maheshwari Logistics is no giant, with a market capitalization of ₹3.9b, so you shoulddefinitely check its cash and debtbeforegetting too excited about its prospects.
Personally, I like to see high insider ownership of a company, since it suggests that it will be managed in the interests of shareholders. So as you can imagine, the fact that Maheshwari Logistics insiders own a significant number of shares certainly appeals to me. Indeed, with a collective holding of 54%, company insiders are in control and have plenty of capital behind the venture. This makes me think they will be incentivised to plan for the long term - something I like to see. With that sort of holding, insiders have about ₹2.1b riding on the stock, at current prices. That's nothing to sneeze at!
One positive for Maheshwari Logistics is that it is growing EPS. That's nice to see. If that's not enough on its own, there is also the rather notable levels of insider ownership. The combination sparks joy for me, so I'd consider keeping the company on a watchlist. Of course, just because Maheshwari Logistics 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.
You can invest in any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here isa list of companies with insider buying in the last three months.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
US-China trade war, sea row in ASEAN summit spotlight
BANGKOK (AP) — Southeast Asian leaders will commit to conclude a long-delayed regional trade pact this year despite lingering odds to fend off risks from a protracted U.S.-China trade war when they gather for a weekend summit in Thailand. The Chinese sinking of a Philippine boat, which endangered 22 Filipino fishermen, is also expected to put the South China Sea territorial conflicts under the spotlight in the Association of Southeast Asian Nations meetings. The two-day summit gets underway Saturday in the Thai capital of Bangkok, where ASEAN was founded in 1967 in the Cold War era. Other key issues include the planned repatriation of more than 700,000 Rohingya Muslim refugees, who have fled a military crackdown in Buddhist-majority Myanmar since August 2017 to neighboring Bangladesh in a crisis that has tested ASEAN. Critics have hit the regional bloc for failing to address the abuses in Myanmar's Rakhine state that the United Nations has called ethnic cleansing. A confidential draft of a post-summit communique, which is expected to be issued by the host, Thailand's junta leader and newly proclaimed Prime Minister Prayuth Chan-ocha, would commit ASEAN to conclude the negotiations for the massive trade pact within the year. The draft statement urging economic ministers "to exert relentless efforts to reach this target" was seen by The Associated Press. "We remained concerned over the unabating tide of protectionism and anti-globalization sentiments that continue to plague the global economy and put multilateralism under threat," the statement said. Many of the leaders fear the rise of protectionism could have a devastating impact on the regional and global economy. Trade tensions between the U.S. and China over Beijing's technology policy and other market access issues have added to strains within the region, especially since President Donald Trump took office in early 2017 and declared his "America First" preference for bilateral trade deals and distrust of international institutions. Story continues The two sides have imposed tariffs on billions of dollars of each other's products in a standoff that has shown no sign of abating. ASEAN member states and six other Asia-Pacific countries have been negotiating the market-opening pact, called the Regional Comprehensive Economic Partnership, or RCEP. The accord includes giants such as China and India but not the U.S. and is expected to encompass nearly half the world's population and 40% of world trade. Although talks have gradually progressed, negotiators failed to finalize the accord last year due to remaining differences. India balked at widening its markets to imports from rival China, for example, according to participants. The South China Sea rifts have been a longstanding security concern. But the June 9 ramming of an anchored Philippine boat by a larger Chinese fishing vessel in the Reed Bank sparked an outcry and condemnations in the Philippines, after the Chinese crew sailed away while the fishing boat sank at night. Its Filipino crew was rescued by a Vietnamese vessel. Philippine President Rodrigo Duterte, who has nurtured close ties with China, has backed Beijing's initial assertion that the collision was accidental and mocked calls for him to immediately take drastic actions. Amid criticisms, the volatile Duterte said late Friday before flying to Thailand that he would "talk lengthily" about the disputes in the Bangkok meetings and would question China's vast claims that encroached deep into the coastal waters of rival claimants. "Is it correct for China to declare ownership of an ocean?" Duterte asked in a speech. ASEAN member states Brunei, Malaysia, Vietnam and the Philippines are involved in the long-unresolved conflicts, which escalated in recent years after China transformed seven disputed reefs into missile-protected islands, which can serve as forward military outposts. Greg Poling of the Asia Maritime Transparency Initiative, which promotes nonaggression in the disputed waters, predicted that "this kind of violence will happen more and more frequently." "The incident definitely speaks to the larger problem of China flooding the area around the Spratly Islands with hundreds of subsidized fishing vessels," which act as China's militia force, Poling said, referring to a hotly contested region near the Reed Bank. In the draft statement, ASEAN leaders are expected to stress the importance of not militarizing the disputed region and self-retrainst in carrying out activities "that could further complicate the situation and escalate tensions in the South China Sea." |
L&T Technology Services Limited (NSE:LTTS): Financial Strength Analysis
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Stocks with market capitalization between $2B and $10B, such as L&T Technology Services Limited (NSE:LTTS) with a size of ₹178b, do not attract as much attention from the investing community as do the small-caps and large-caps. However, generally ignored mid-caps have historically delivered better risk-adjusted returns than the two other categories of stocks. Today we will look at LTTS’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourselfinto LTTS here.
View our latest analysis for L&T Technology Services
LTTS's debt level has been constant at around ₹702m over the previous year . At this current level of debt, LTTS's cash and short-term investments stands at ₹7.8b to keep the business going. Additionally, LTTS has generated cash from operations of ₹8.1b in the last twelve months, resulting in an operating cash to total debt ratio of 1148%, meaning that LTTS’s operating cash is sufficient to cover its debt.
Looking at LTTS’s ₹8.6b in current liabilities, it seems that the business has been able to meet these obligations given the level of current assets of ₹24b, with a current ratio of 2.75x. The current ratio is the number you get when you divide current assets by current liabilities. Generally, for Professional Services companies, this is a reasonable ratio as there's enough of a cash buffer without holding too much capital in low return investments.
With debt at 2.8% of equity, LTTS may be thought of as having low leverage. This range is considered safe as LTTS is not taking on too much debt obligation, which can be restrictive and risky for equity-holders.
LTTS has demonstrated its ability to generate sufficient levels of cash flow, while its debt hovers at a safe level. Furthermore, the company will be able to pay all of its upcoming liabilities from its current short-term assets. I admit this is a fairly basic analysis for LTTS's financial health. Other important fundamentals need to be considered alongside. I recommend you continue to research L&T Technology Services to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for LTTS’s future growth? Take a look at ourfree research report of analyst consensusfor LTTS’s outlook.
2. Valuation: What is LTTS 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 LTTS 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. |
Is L&T Technology Services Limited (NSE:LTTS) As Strong As Its Balance Sheet Indicates?
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Mid-caps stocks, like L&T Technology Services Limited (NSE:LTTS) with a market capitalization of ₹178b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. However, generally ignored mid-caps have historically delivered better risk-adjusted returns than the two other categories of stocks. Today we will look at LTTS’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysisinto LTTS here.
See our latest analysis for L&T Technology Services
Over the past year, LTTS has maintained its debt levels at around ₹702m made up of predominantly near term debt. At this stable level of debt, the current cash and short-term investment levels stands at ₹7.8b to keep the business going. Additionally, LTTS has generated ₹8.1b in operating cash flow in the last twelve months, leading to an operating cash to total debt ratio of 1148%, signalling that LTTS’s operating cash is sufficient to cover its debt.
At the current liabilities level of ₹8.6b, it appears that the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 2.75x. The current ratio is the number you get when you divide current assets by current liabilities. Usually, for Professional Services companies, this is a suitable ratio as there's enough of a cash buffer without holding too much capital in low return investments.
With a debt-to-equity ratio of 2.8%, LTTS's debt level is relatively low. LTTS is not taking on too much debt commitment, which may be constraining for future growth.
LTTS’s high cash coverage and low debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow. Furthermore, the company exhibits an ability to meet its near term obligations should an adverse event occur. Keep in mind I haven't considered other factors such as how LTTS has been performing in the past. I recommend you continue to research L&T Technology Services to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for LTTS’s future growth? Take a look at ourfree research report of analyst consensusfor LTTS’s outlook.
2. Valuation: What is LTTS 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 LTTS 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. |
Is Marshall Machines Limited's (NSE:MARSHALL) P/E Ratio Really That Good?
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This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). We'll show how you can use Marshall Machines Limited's (NSE:MARSHALL) P/E ratio to inform your assessment of the investment opportunity.Marshall Machines has a price to earnings ratio of 4.33, based on the last twelve months. That is equivalent to an earnings yield of about 23%.
See our latest analysis for Marshall Machines
Theformula for P/Eis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for Marshall Machines:
P/E of 4.33 = ₹21.5 ÷ ₹4.97 (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 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. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. 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.
Marshall Machines shrunk earnings per share by 9.2% last year. But it has grown its earnings per share by 50% per year over the last five years.
One good way to get a quick read on what market participants expect of a company is to look at its P/E ratio. If you look at the image below, you can see Marshall Machines has a lower P/E than the average (14.4) in the machinery industry classification.
Marshall Machines's P/E tells us that market participants think it will not fare as well as its peers in the same industry. Many investors like to buy stocks when the market is pessimistic about their prospects. It is arguably worth checkingif insiders are buying shares, because that might imply they believe the stock is undervalued.
The 'Price' in P/E reflects the market capitalization of the company. That means it doesn't take debt or cash into account. 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).
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.
Marshall Machines has net debt worth 70% of its market capitalization. This is a reasonably significant level of debt -- all else being equal you'd expect a much lower P/E than if it had net cash.
Marshall Machines trades on a P/E ratio of 4.3, which is below the IN market average of 15.5. When you consider that the company has significant debt, and didn't grow EPS last year, it isn't surprising that the market has muted expectations.
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.' Although we don't have analyst forecasts, you might want to assessthis data-rich visualizationof earnings, revenue and cash flow.
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. |
Do LIC Housing Finance's (NSE:LICHSGFIN) Earnings Warrant Your Attention?
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It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks with a good story, even if those businesses lose money. But as Warren Buffett has mused, 'If you've been playing poker for half an hour and you still don't know who the patsy is, you're the patsy.' When they buy such story stocks, investors are all too often the patsy.
So if you're like me, you might be more interested in profitable, growing companies, likeLIC Housing Finance(NSE:LICHSGFIN). Now, I'm not saying that the stock is necessarily undervalued today; but I can't shake an appreciation for the profitability of the business itself. 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 LIC Housing Finance
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. Over the last three years, LIC Housing Finance has grown EPS by 13% per year. That's a pretty good rate, if the company can sustain it.
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 LIC Housing Finance'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. LIC Housing Finance maintained stable EBIT margins over the last year, all while growing revenue 20% to ₹45b. That's progress.
You can take a look at the company's revenue and earnings growth trend, in the chart below. To see the actual numbers, click on the chart.
The trick, as an investor, is to find companies that aregoing toperform well in the future, not just in the past. To that end, right now and today, you can checkour visualization of consensus analyst forecasts for future LIC Housing Finance EPS100% free.
I always like to check up on CEO compensation, because I think that reasonable pay levels, around or below the median, can be a sign that shareholder interests are well considered. I discovered that the median total compensation for the CEOs of companies like LIC Housing Finance with market caps between ₹139b and ₹445b is about ₹43m.
The LIC Housing Finance CEO received total compensation of only ₹3.2m in the year to March 2018. You could consider this pay as somewhat symbolic, which suggests the CEO does not need a lot of compensation to stay motivated. CEO compensation is hardly the most important aspect of a company to consider, but when its reasonable that does give me a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of a culture of integrity, in a broader sense.
One important encouraging feature of LIC Housing Finance is that it is growing profits. Not only that, but the CEO is paid quite reasonably, which makes me feel more trusting of the board of directors. So all in all I think it's worth at least considering for your watchlist. Now, you could try to make up your mind on LIC Housing Finance by focusing on just these factors,oryou couldalsoconsider how its price-to-earnings ratio compares to other companies in its industry.
You can invest in any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here isa list of companies with insider buying in the last three months.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
You Have To Love Detection Technology Oyj's (HEL:DETEC) Dividend
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Is Detection Technology Oyj (HEL:DETEC) a good dividend stock? How would you know? Dividend paying companies with growing earnings can be highly rewarding in the long term. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.
Some readers mightn't know much about Detection Technology Oyj's 1.7% dividend, as it has only been paying distributions for a year or so. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this.
Explore this interactive chart for our latest analysis on Detection Technology Oyj!
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. Detection Technology Oyj paid out 37% 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. One of the risks is that management reinvests the retained capital poorly instead of paying a higher dividend.
Remember, you can always get a snapshot of Detection Technology Oyj's latest financial position,by checking our visualisation of its financial health.
One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. With a payment history of less than 2 years, we think it's a bit too soon to think about living on the income from its dividend. During the past one-year period, the first annual payment was €0.35 in 2018, compared to €0.38 last year. Dividends per share have grown at approximately 8.6% per year over this time.
Detection Technology Oyj has been growing its dividend at a decent rate, and the payments have been stable despite the short payment history. This is a positive start.
Examining whether the dividend is affordable and stable is important. However, it's also important to assess if earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. It's good to see Detection Technology Oyj has been growing its earnings per share at 30% a year over the past 5 years. With high earnings per share growth in recent times and a modest payout ratio, we think this is an attractive combination if earnings can be reinvested to generate further growth.
Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. First, we like that the company's dividend payments appear well covered, although the retained capital also needs to be effectively reinvested. We were also glad to see it growing earnings, although its dividend history is not as long as we'd like. Overall we think Detection Technology Oyj scores well on our analysis. It's not quite perfect, but we'd definitely be keen to take a closer look.
Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 4 analysts we track are forecasting for Detection Technology Oyjfor freewith publicanalyst estimates for the company.
We have also put together alist of global stocks with a market capitalisation above $1bn and yielding more 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Aaron Judge provides Yankees with the depth they need
NEW YORK On the first day of summer, Aaron Judge insisted that he felt like it was April 21. Despite missing two months with a strained left oblique , Judge felt like he hadnt skipped a beat. But in fact, those two months have been huge for the New York Yankees . Back then, the club was 3.5 games behind the Tampa Bay Rays and hovering right at .500. Entering Friday, they were 4.5 games up in the AL East, boasting baseballs third-best record. Along the way, the Yankees proved they dont need Judge in the lineup to win games. They went 31-17 without him, overcoming not just his absence, but also 19 other IL stints from stars like Giancarlo Stanton and Didi Gregorius . This seemingly bottomless reserve of resilience has been the overwhelming narrative for the first half of the Yankees season. But even that isnt quite the right word. Resilience implies a measure of down-but-not-out, yet with backups like Gio Urshela slashing .307/.360/.455, the Yankees never even really looked down. But whatever you call the depth theyve needed to climb atop the division despite being ravaged by injuries, it was on display again Friday night, when they replaced a .314 hitter in the leadoff spot with the face of the franchise. Aaron Judge returned to the New York Yankees on Friday night after missing two months with an oblique injury. (AP) About that absence and that lineup placement: Before the game, manager Aaron Boone explained that DJ LeMahieu (as well as Luke Voit ) were both given the night off simply because thats a luxury the Yankees can afford, and that Judge was hitting leadoff for the first time in his career because Boone was just trying to get [his] best players up there as much as possible. That second part didnt really pan out. And the Yankees proved they didnt need Judge to win Friday night, either, their seventh victory in a row to improve to a season-best 21 games over .500. The bullpen threw four shutout innings, Gary Sanchez and Gleyber Torres each homered for the third straight game, and Judge was 0-for-4 with two strikeouts in the 4-1 victory over the Houston Astros although you wouldnt know it from the way the right-field bleachers were still chanting AA-RON JU-UDGE when he trotted out to the field for each top half. Story continues It may seem like the Yankees have too much talent on the roster Gregorius, Stanton, Judge are all back and theyve picked up Edwin Encarnación but if the value of that depth hasnt been sufficiently justified by the first half of the season, it was certainly underscored on Friday night. Cameron Maybin , who had been hitting .415 in his last 12 games, will go on the IL (make that 21 total injured Yankees on the season, one more than they had all of last year) after exiting the game in the fourth inning with a strained left calf . He was replaced by Aaron Hicks , who had missed two games himself due to shoulder discomfort (an MRI came back clean, and he was expected to be back in the starting lineup Saturday after getting a cortisone shot). Boone didnt announce a corresponding roster move, which means it remains to be seen whether this latest blow will present a path back to the majors for Clint Frazier who was slashing .283/.330/.513 before getting optioned after the Encarnación trade and to make room for Stanton or a chance to bolster their bullpen with an extra arm. In the middle of the game, Major League Baseball announced the finalists for All-Star elections . Among the nine outfielders with enough fan votes to advance was Judge, who was having a bad night in his 21st game of the season. That says something about Judge, whose value to the team and the city extends beyond what he does in a given game or even what he doesnt do for two months at the start of the season. He was one of five Yankees in a group of 34 finalists. That says something about how the team has managed to be successful without him and even when hes not. 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 |
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