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London Mayor Sadiq Khan Mocks Trump As 'Six-Foot-Three Child' London Mayor Sadiq Khan has fired another linguistic shot at President Donald Trump , calling him “a six-foot-three child.” According to The Guardian , Khan made the blistering remark at an education conference in Westminster’s Central Hall on Saturday just after assuring the crowd he had switched off his phone. “For those of you that have your phones on, if somebody starts tweeting about me ― a six-foot-three child in the White House ― can you let me know?” he joked. The war of words began earlier this month when the mayor penned an op-ed in The Observer , describing Trump’s rhetoric as a throwback to “fascists of the 20th century” and condemning him for “lying deliberately and repeatedly to the public.” Taking his argument further, Khan said it would be “so un-British” to offer Trump a red-carpet rollout for his U.K. summit, which was only two days away The op-ed sent the president into a tweet-filled rage. In retaliation, Trump lashed out at Khan , whom he deemed a “terrible” mayor and “stone cold loser.” His decision to be “foolishly ‘nasty’” to the leader of his “most important ally” was a mistake, the president warned. . @SadiqKhan , who by all accounts has done a terrible job as Mayor of London, has been foolishly “nasty” to the visiting President of the United States, by far the most important ally of the United Kingdom. He is a stone cold loser who should focus on crime in London, not me...... — Donald J. Trump (@realDonaldTrump) June 3, 2019 Lobbing the insults right back, Khan told Sky News the next day that Trump reminded him of his “ daughters when they were 11 .” “But look, it’s for him to choose how he decides to tweet,” he added. Related Coverage London Mayor Sadiq Khan Compares Donald Trump To ‘Fascists Of The 20th Century’ Donald Trump Begins UK Trip By Insulting London Mayor Sadiq Khan Story continues London Mayor Sadiq Khan Compares Trump To 11-Year-Old After Twitter Insults Love HuffPost? Become a founding member of HuffPost Plus today. This article originally appeared on HuffPost .
Journalist who exposed corruption, wouldn't name source dies PROVIDENCE, R.I. (AP) — Jim Taricani, an award-winning TV reporter who exposed corruption and served a federal sentence for refusing to disclose a source, has died. He was 69. Taricani died Friday at his home in North Kingstown, Rhode Island, said his friend Dyana Koelsch. The cause was kidney failure. Taricani covered Rhode Island for 40 years, 32 of them at WJAR-TV. He focused much of his reporting on organized crime and chronicled the crimes of the New England Mafia and figures including Raymond L.S. Patriarca. He also became a national advocate for a federal shield law that would protect journalists from having to reveal sources. Taricani was convicted in 2004 of civil contempt for refusing to reveal the source of a secret FBI videotape that showed a Providence city official taking a $1,000 cash bribe. The video was part of a corruption investigation that ultimately sent former Providence Mayor Buddy Cianci to prison. He said at the time that it was important to air the video to show people what corruption looked like. A federal judge sentenced him to six months and allowed him to serve it in home confinement because of his health; he had a heart transplant in 1996. He was released after four months for good behavior. When he retired in 2014, he told The Associated Press that he would not have done anything differently. "I just believe that this is what a reporter does," he said. "I don't think any reporter wants to be in that position. But it's part of the job. It's part of the territory that we travel in." The lawyer who was his source later admitted it and went to prison for contempt and perjury. A Connecticut native, Taricani started in radio, and then was hired at WPRI-TV before going to WJAR, where he founded the station's investigative unit. He won four Emmys, the Edward R. Murrow award and the Yankee Quill Award, the highest individual honor presented by the Academy of New England Journalists. Story continues He also became a mentor to generations of journalists, both at his own station and at competing outlets, including CNN's Christiane Amanpour. Rhode Island's governor, Gina Raimondo, called Taricani a "Rhode Island icon" Saturday. Koelsch said Taricani's wife, Laurie White, had received an outpouring of support Saturday, both from powerful politicians and regular people who loved and respected him. U.S. Rep. David Cicilline, who served as mayor after Cianci, remembered Taricani as "a person of extraordinary integrity and a principled journalist." The Rhode Island General Assembly, convening Saturday morning, held a moment of silence in Taricani's honor. Koelsch said despite his health problems, Taricani's transplanted heart was still going strong when he died. Taricani told the AP when he retired that he knew he was well beyond the life expectancy of someone with a heart transplant. "I've been lucky," he said. "Way lucky." ___ This story has been updated to correct that Taricani was convicted of civil contempt, not criminal contempt.
Waymo Just Partnered With Renault and Nissan to Research Driverless Mobility Services Waymo, theself-driving technologycompany owned byAlphabet(NASDAQ: GOOG)(NASDAQ: GOOGL), said this week that it had entered into an exclusive partnership withRenault SA(NASDAQOTH: RNSDF)andNissan Motor(NASDAQOTH: NSANY)"to explore driverless mobility services for passengers and deliveries in France and Japan." The partnership marks the first of its kind between automotive manufacturers and Waymo. Waymo said the partnership would initially be to "research commercial, legal, and regulatory issues related to transportation-as-a-service" in the two countries. Waymo's CEO, John Krafcik, said that working with Renault and Nissan will allow the company to bring its autonomous technology to a "global stage." He added in a press statement that Waymo's technology would "deliver transformational mobility solutions to safely serve riders and commercial deliveries in France, Japan, and other countries." Image source: Waymo. Groupe Renault, a combination of Nissan Motor Co. and Mitsubishi Motors, is the world's largest automotive alliance, which makes the latest news significant for Waymo. Additionally, the new partnership marks a big step for Waymo toward expanding its driverless-car technology reach beyond the United States. Nissan's CEO, Hiroto Saikawa, said that his company aims to be "an early provider of driverless mobility service" and that the automaker is working with Waymo as "the recognized leader in this space" to explore driverless-vehicle opportunities. Waymo is indeed a driverless leader. The company has extensive experience building autonomous-vehicle technology and has logged more than 10 million miles of autonomous driving on public U.S. roads. But the company is still at the beginning stages of commercializing its technology, and its testing and partnerships have been mainly focused in the U.S. so far. For example, Waymo has acommercial autonomous ridesharing servicein the Phoenix area right now and has partnered with some local municipalitiesand companiesto test self-driving vehicle services and food deliveries. But partnering with Renault and Nissan allows Waymo to go beyond its U.S. initiatives and take a first step toward bringing mobility services to other parts of the world. The joint press release said the partnership could expand beyond France and Japan and may include China in the future. One of Waymo's goals has always been to make the best driverless car technology and then license it to other companies to use. With this partnership, Waymo shows it's ready to begin slowly introducing its tech to global automakers, even if it's only in a research capacity at the moment. Investors may be frustrated by the seemingly slow pace at which driverless-car technology is reaching the roads and that this new partnership talks more about autonomous-vehicle research than revenue opportunities. But these early steps are laying the foundation for a massive driverless-vehicle market that could be worth $7 trillion by 2050. Waymo is one of the undisputed leaders in the driverless vehicle space, and this new partnership is a significant first step toward bringing its technology to other countries while learning more about the regulatory hurdles it may face overseas. Investors should be patient and take this latest news as the beginning of a big -- and international -- opportunity for Waymo to move passengers and goods autonomously. More From The Motley Fool • 10 Best Stocks to Buy Today • The $16,728 Social Security Bonus You Cannot Afford to Miss • 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) • What Is an ETF? • 5 Recession-Proof Stocks • How to Beat the Market Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.Chris Neigerhas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares) and Alphabet (C shares). The Motley Fool has adisclosure policy.
At G-20 summit, US-Iran tensions expected to cast a long shadow Iranwon’t attend the G20 summit in Osaka, Japan next week – the country has been blacklisted since the inception of the international forum – but heightened tensions between the U.S and Tehran could cast a long shadow over some of the meetings between the world’s most powerful economies. While the summit is expected to be dominated by news about the U.S-China trade war, concerns about the possibility of a military confrontation between the U.S. and Iran could play a role behind the scenes as the rest of the world pushes for a de-escalation in the brewing conflict. “Because remember, the sanctions, while they’re aimed at Iran, also affect U.S .allies and other countries, because the sanctions have to do with the ability of Iran to use the dollar, which obviously is the international reserve currency for trade,” said Feisal Istrabadi, the former Iraqi ambassador to the United Nations and the founding director of the Indiana University Center for the Study of the Middle East. “There’s an effect on the allies.” President Trump unilaterally withdrew from the Iran nuclear deal – arguably the biggest foreign policy achievement of the Obama administration – more than one year ago, bucking U.S. allies while imposing a punishing round of economic sanctions on Tehran that were intended to squeeze its finances. The other signatories to the deal, including China, Russia, France, the UK, Germany and Iran, said they would continue to honor the agreement, despite the U.S’s withdrawal. But, Iran said on Monday that it’s just 10 days away from surpassing the limits drawn by the nuclear deal on its supply of low-enriched uranium -- an attempt to pressure the European bloc to provide some relief from the American sanctions. Just a few days later, an Iranian missile shot down an unmanned U.S. spy drone over the Strait of Hormuz. Officials in Tehran and Washington have disputed whether the drone was in Iranian airspace or not. In response, the U.S. prepare a military strike against Iran, but at the last minute, called it off (Trump said in a tweet that it was not a “proportional response” because 150 people would have died). On Saturday, Trump said that, starting Monday, the U.S. would impose an additional round of “major” economic sanctions against Iran. He’ll be spending the weekend at Camp David discussing Middle East strategy with some advisers. "Iran cannot have Nuclear Weapons! Under the terrible Obama plan, they would have been on their way to Nuclear in a short number of years, and existing verification is not acceptable. We are putting major additional Sanctions on Iran on Monday," he wrote in a tweet. "I look forward to the day that sanctions come off Iran, and they become a productive and prosperous nation again - The sooner the better!" European officials likely will apply pressure on the Trump administration during the upcoming summit to lift sanctions, or to re-join the nuclear deal, Istabadi said – although Trump unlikely to acquiesce to either request. “It’s a multilateral agreement with multiple parties that the U.S. has unilaterally breached,” he said. “How you come back from that is a true Gordian Knot, as far as I’m concerned, particularly because the Iranians seem to be refusing to negotiate, which you can also understand. They were abiding by the agreement. There’s no evidence they weren’t. It’s just that Trump didn’t like the agreement.” Plus, Saudi Arabia -- which has no diplomatic relations with Tehran – could try to sway Trump in the opposite direction, persuading him to continue accelerating tensions with Iran. “They’ve been pretty influential in this administration,” he said. Essentially, Trump is in a bind, and the outlook is bleak. He expected the Iranians to negotiate, Istrabadi said, but based on their recent actions in the Gulf, they’re unwilling to come to the table until some type of economic relief is provided. Daniel Serwer, a scholar at the Middle East Institute and a professor at the Johns Hopkins School of International Studies, said that Trump has trapped himself by bad-mouthing the nuclear deal, while simultaneously ratcheting up long-standing tensions with the Islamic Republic. “He’s driven himself into a cul-de-sac, and the way out of a cul-de-sac is to turn yourself around and go into the other direction,” he said. “And that’s going to require him to do something - he’s clever, he can do it, he did it with Kim Jong Un. Kim Jong Un was American’s worst nightmare, and he became President trump’s best friend.” CLICK HERE TO GET THE FOX BUSINESS APP But Serwer also stressed that Trump’s last-minute decision to halt the military strike against Iran could bode well among the other nations at the G-20. “By not attacking Iran, the president has made it more possible than it would be otherwise to get the Europeans on board with the American perspective on what Iran is up to,” he said. Related Articles • Fmr. Notre Dame Coach Lou Holtz Predictions for Trump vs. Media • Trump May Have Dropped Another Clinton Bombshell • Carson: Trump Could Destroy Obama's Legacy
At Less Than $2 a Share, These Oil Stocks Could Have Explosive Upside (but Also Risk Imploding) Shares ofDenbury Resources(NYSE: DNR)andChesapeake Energy(NYSE: CHK)have made some big moves over the past year. Denbury Resources' stock, for example, was up a jaw-dropping 199.1% at one point last year, before itcrashed back to earth along with oil prices. Chesapeake Energy, meanwhile, wasup more than 50% earlier this yearbefore plunging ascrude entered another bear market in the past month. With their latest sell-offs, shares of both oil producers now sell for less than $2 apiece. As their big runs in the past year show, both companies have explosive upside when oil prices are on the upswing. That makes them potentially high-reward opportunities should crude prices rebound again. However, as each has also shown, they can quickly crash when crude prices cool off. Image source: Getty Images. Denbury Resources is in a tight spot financially these days. The oil producer has more than $2.5 billion of debt on its balance sheet, which is currently weighing it down. To put that number into perspective, debt accounts for an eye-popping 76% of its $3.3 billionenterprise valueand is more than four times its earnings. Those metrics are well above the industry comfort levels of 30% and two times, respectively. The company is trying to chip away at its debt level by keeping its capital spending level to a minimum. For 2019, Denbury expects to invest only $240 million to $260 million on new oil projects. Not only is that 20% to 25% below last year's level, but it's not enough investment to maintain its production rate, which is on track to decline by about 4% this year. Denbury cut spending so that it could produce some free cash flow to chip away at its debt level. Thanks to improving oil prices during the first quarter, Denbury was on track to generate more than $150 million in excess cash for debt reduction. However, with crude prices slumping in recent weeks, the company might only produce between $50 million and $100 million in excess cash this year, which would barely put a dent in its debt pile. If oil prices heat up, shares of Denbury Resources could explode higher since that would give it more money to pay down debt. However, if crude keeps falling, Denbury could eventually collapse. Chesapeake Energy is in a similarly tight spot financially. The oil and gas company had nearly $10 billion of debt on its balance sheet as of the end of the first quarter. That worked out to about 70% of its enterprise value and roughly four times its earnings. However, Chesapeake Energy's financeshave come a long way over the past few years. Further, the company is on track for additional improvements over the next two years, thanks to arecent acquisition. That deal has the company on pace to grow its oil production and cash flow at a fast pace through the end of next year. That should push its leverage ratio down to 3.6 times earnings this year and 2.8 times by the end of 2020 -- assuming oil prices cooperate -- putting it much closer to its two times target. Meanwhile, higher oil prices over that time frame could further accelerate Chesapeake Energy's strategy. That's because it would enable the company to produce excess cash to pay off additional debt. That ability to improve its balance sheet more quickly is why Chesapeake has such explosive upside to higher oil prices. On the other hand, if crude prices weaken further, it would put even more pressure on the company's already fragile financial profile. Shares of Denbury Resources and Chesapeake Energy have the potential to skyrocket in an improving oil market because that would provide them with more cash to pay down debt. However, their shares could also crater if crude prices take another tumble. While their high upside potential certainly makes them intriguing, investors shouldn't ignore the risk of implosion. That's why they might want to watch these oil stocks from the sidelines so that they don't get burned by all the volatility. More From The Motley Fool • 10 Best Stocks to Buy Today • The $16,728 Social Security Bonus You Cannot Afford to Miss • 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) • What Is an ETF? • 5 Recession-Proof Stocks • How to Beat the Market Matthew DiLalloowns shares of Denbury Resources. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy.
Maxed Out Your 401(k)? Here's Where to Park Your Extra Retirement Cash Many people with access to a401(k) planthrough an employer struggle to max it out. That's because the annual contribution limits for 401(k)s are pretty high: $19,000 for workers under 50, and $25,000 for those 50 and older. But if you're a higher earner, or lead an extremely frugal lifestyle, you might manage to eke out more than $19,000 or $25,000 in annual savings. The question is: Where should you put that cash once it can no longer go into a 401(k)? An HSA, orhealth savings account, is a hybrid savings and investment account that lets you set aside funds to be used to cover healthcare expenses in retirement (and during your working years). The money you contribute goes in tax-free, at which point you can invest it and enjoy tax-free growth on it. Then, your withdrawals are also tax-free, provided they're used to pay for qualified medical expenses. IMAGE SOURCE: GETTY IMAGES. To be eligible for an HSA, you must be enrolled in a high-deductible health insurance plan, defined as $1,350 or more for single coverage and $2,700 or more for family coverage. Though the annual contribution limits for HSAs change from year to year, currently they're $3,500 for single coverage and $7,000 for family coverage. Those 55 and over get a $1,000 catch-up as well. Now, the drawback of HSAs is that you're effectively forced to use that money on healthcare expenses or otherwise risk a 20% penalty for withdrawing funds for nonmedical purposes. Once you turn 65, however, you can use your HSA for any reason, and the worst that'll happen is that you'll be taxed on withdrawals that aren't used for qualified medical expenses. But chances are, you'll need that money for healthcare in retirement anyway, in which case saving your excess cash in an HSA is a smart idea, especially since you get the same tax break for contributing as you would for a traditional 401(k). The downside of putting money into a traditional brokerage account is that you won't get a tax break out of it, and that you'll be liable for taxes on your investment gains year after year. The upside? You'll have the opportunity to use that money for whatever purpose you'd like. You can save all of it for retirement, or you can earmark much of it for your golden years but also access that cash for other needs or wants that pop up along the way, like home improvements, vacations, or your kids' college tuition bills. Anannuityis a contract between you and an insurance company. In exchange for a lump sum up front, the issuer of your annuity agrees to pay you a certain amount of money -- either a lump sum in the future or a series of payments over time. Because annuities are complex and can sometimes come with costly fees, they're often regarded as a last-resort option for retirement savings, especially since there's no tax break involved in funding one. But if you're looking for another dedicated source of retirement income and you've already maxed out your 401(k), an annuity is something worth considering. If you're fortunate enough to be in a position where you've maxed out a 401(k) and still have money to save, it pays to put that cash to good use. HSAs, traditional brokerage accounts, and annuities are all reasonable options for socking away extra funds to use in retirement one way or another. More From The Motley Fool • 10 Best Stocks to Buy Today • The $16,728 Social Security Bonus You Cannot Afford to Miss • 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) • What Is an ETF? • 5 Recession-Proof Stocks • How to Beat the Market The Motley Fool has adisclosure policy.
Is Spark New Zealand Limited's (NZSE:SPK) Balance Sheet A Threat To Its Future? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Spark New Zealand Limited (NZSE:SPK), with a market cap of NZ$7.3b, often get neglected by retail investors. However, history shows that overlooked mid-cap companies have performed better on a risk-adjusted manner than the smaller and larger segment of the market. Let’s take a look at SPK’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. Don’t forget that this is a general and concentrated examination of Spark New Zealand’s financial health, so you should conduct further analysisinto SPK here. Check out our latest analysis for Spark New Zealand SPK has built up its total debt levels in the last twelve months, from NZ$1.3b to NZ$1.9b – this includes long-term debt. With this rise in debt, SPK currently has NZ$110m remaining in cash and short-term investments , ready to be used for running the business. Additionally, SPK has generated NZ$744m in operating cash flow over the same time period, leading to an operating cash to total debt ratio of 39%, meaning that SPK’s current level of operating cash is high enough to cover debt. At the current liabilities level of NZ$980m, the company may not be able to easily meet these obligations given the level of current assets of NZ$918m, with a current ratio of 0.94x. The current ratio is calculated by dividing current assets by current liabilities. With a debt-to-equity ratio of 99%, SPK can be considered as an above-average leveraged company. This is not uncommon for a mid-cap company given that debt tends to be lower-cost and at times, more accessible. No matter how high the company’s debt, if it can easily cover the interest payments, it’s considered to be efficient with its use of excess leverage. A company generating earnings after interest and tax at least three times its net interest payments is considered financially sound. In SPK's case, the ratio of 10.84x suggests that interest is comfortably covered, which means that debtors may be willing to loan the company more money, giving SPK ample headroom to grow its debt facilities. Although SPK’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet debt obligations which means its debt is being efficiently utilised. Though its lack of liquidity raises questions over current asset management practices for the mid-cap. This is only a rough assessment of financial health, and I'm sure SPK has company-specific issues impacting its capital structure decisions. You should continue to research Spark New Zealand to get a better picture of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for SPK’s future growth? Take a look at ourfree research report of analyst consensusfor SPK’s outlook. 2. Valuation: What is SPK 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 SPK 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.
Bogus Brexit murder plot and other lies planted online by Russian accounts: study By Jack Stubbs LONDON (Reuters) - In August 2018, Spanish authorities uncovered a plot by anti-Brexit campaigners to assassinate leading Brexiteer and now favorite to be Britain's next prime minister, Boris Johnson. Or did they? That story and others like it were created by a network of social media accounts operating from Russia which have attempted to seed false narratives across 30 different online platforms, a study by the Atlantic Council's Digital Forensic Research Lab has found. The effort employed scores of accounts posting in at least six languages on platforms including Facebook and Twitter, as well as multiple other blogging sites and forums. The aim was to "divide, discredit, and distract" Western countries by planting false information about topics ranging from alleged British meddling in the 2018 U.S. midterm elections to Irish paramilitary involvement in the poisoning of a former Russian spy in England last year. The network was traced by following connections to a group of 16 accounts suspended in May by Facebook, which said they were "part of a small network emanating from Russia." Western officials have warned that countries such as Russia, as well as domestic political groups, are increasingly spreading false or misleading information online in order to disrupt politics and public opinion. Moscow has repeatedly denied the allegations, most recently after the European Union said it had evidence of "sustained disinformation activity by Russian sources aiming to suppress turnout and influence voter preferences" in May's European Parliament elections. The Kremlin did not immediately respond to a Reuters request for comment. Ben Nimmo, a senior fellow at the Atlantic Council's DFR Lab, said the accounts failed to attract a large following - likely due to efforts not to get caught - but the operation is notable for its audacity and sophistication. "This operation was trying to provoke divisions between Western countries," he said. "It faked everything, from the documents it based its stories on, up to the accounts that boosted them." Nathaniel Gleicher, head of cybersecurity policy at Facebook, told Reuters the accounts and pages removed by Facebook in May had been a small part of "a broader operation that was primarily active on other internet platforms." "We know that these threats are not limited to a specific type of technology or service. The better we can be at working together, the better we'll do by our community," he said. A Twitter spokesman said the company welcomed the findings and had a team "dedicated to identifying and investigating suspected platform manipulation on Twitter, including potential state-backed activity." 'FAKE, FAKE' The alleged plot to kill Boris Johnson began on August 8 last year when a fake account on Facebook posted a letter purportedly sent by Spanish Foreign Minister Josep Borrell to a fellow lawmaker. The letter, written in informal Spanish and with Borrell's own name spelled wrong, says the minister has been informed of a "possible attack on Boris Johnson by radical Brexit opponents who want to stop him being nominated prime minister" and would alert British authorities. Asked about the authenticity of the letter, a spokesman for Borrell said the document was "FAKE, FAKE." Boris Johnson, who is expected to be confirmed as British prime minister next month, did not respond to requests for comment. DFR Lab said the operation's focus on narratives supporting the Kremlin and linguistic errors typical of native Russian-speakers supported Facebook's assessment that the accounts were operated from Russia. "The scale of the operation, its tradecraft, and its obsession with secrecy, indicate that it was run by a persistent, sophisticated, and well-resourced organization, possibly an intelligence agency," DFR Lab said in its report. Other narratives pushed by the network included a screenshot of a tweet allegedly posted and then deleted by former British Defence Minister Gavin Williamson. Pictures of the tweet included in blog posts online show Williamson saying people connected to the Real Irish Republican Army had supplied "a component of the nerve agent" used to poison a former Russian military intelligence officer in the English city of Salisbury last year. There is no record of the tweet being sent from Williamson's account. A spokeswoman for Williamson did not respond to requests for comment. (Additional reporting by Belen Carreno and Isla Binnie in Madrid, Editing by William Maclean)
What You Should Know About Spark New Zealand Limited's (NZSE:SPK) Financial Strength Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! While small-cap stocks, such as Spark New Zealand Limited (NZSE:SPK) with its market cap of NZ$7.3b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. Understanding the company's financial health becomes vital, since poor capital management may bring about bankruptcies, which occur at a higher rate for small-caps. Let's work through some financial health checks you may wish to consider if you're interested in this stock. Nevertheless, this is not a comprehensive overview, so I recommend youdig deeper yourself into SPK here. SPK's debt levels surged from NZ$1.3b to NZ$1.9b over the last 12 months – this includes long-term debt. With this growth in debt, SPK currently has NZ$110m remaining in cash and short-term investments to keep the business going. On top of this, SPK has generated NZ$744m in operating cash flow over the same time period, leading to an operating cash to total debt ratio of 39%, signalling that SPK’s current level of operating cash is high enough to cover debt. At the current liabilities level of NZ$980m, it seems that the business arguably has a rather low level of current assets relative its obligations, with the current ratio last standing at 0.94x. The current ratio is the number you get when you divide current assets by current liabilities. SPK is a relatively highly levered company with a debt-to-equity of 99%. This is a bit unusual for a small-cap stock, since they generally have a harder time borrowing than large more established companies. We can test if SPK’s debt levels are sustainable by measuring interest payments against earnings of a company. Ideally, earnings before interest and tax (EBIT) should cover net interest by at least three times. For SPK, the ratio of 10.84x suggests that interest is comfortably covered, which means that debtors may be willing to loan the company more money, giving SPK ample headroom to grow its debt facilities. Although SPK’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet debt obligations which means its debt is being efficiently utilised. However, its low liquidity raises concerns over whether current asset management practices are properly implemented for the small-cap. Keep in mind I haven't considered other factors such as how SPK has been performing in the past. You should continue to research Spark New Zealand to get a more holistic view of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for SPK’s future growth? Take a look at ourfree research report of analyst consensusfor SPK’s outlook. 2. Valuation: What is SPK 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 SPK 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.
MLB: David Ortiz moved out of ICU, continues recovery Former Boston Red Sox star David Ortiz was moved out of the intensive care unit Saturday as he continues to recover from a gunshot wound suffered in his native Dominican Republic. His wife, Tiffany, through the Red Sox, released a statement saying that Ortiz was out of the ICU, but will continue to recover under the care of his doctors. “David was moved out of the intensive care unit at Massachusetts General Hospital. He remains in good condition and continues to recover under the care of Drs. David King and Larry Ronan.” The #RedSox today issued the following statement on behalf of Tiffany Ortiz: pic.twitter.com/VJfNBdD17H — Boston Red Sox (@RedSox) June 22, 2019 Ortiz was shot in the abdomen on June 9 at a bar in the Dominican Republic . After undergoing surgery, he was transported back to the United States for continued care and recovery. Saturday’s update is a positive one. Earlier this week, Dominican Republic authorities said that Ortiz was not the intended target of the gunman. Instead, the target was someone else at the table. The case of mistaken identity has brought mixed response by Dominicans with some being highly skeptical. So far, authorities have arrested 11 suspects but are still on the hunt for alleged mastermind Victor Hugo Gomez . More from Yahoo Sports: Yankees can win without Judge, but they do need depth Phillies’ Harper fails to make list of All-Star finalists Curry: Stakes of next presidential election are ‘extremely high’ USWNT has tough lineup questions as knockout stage begins
Did Changing Sentiment Drive ApplyDirect's (ASX:AD1) Share Price Down A Disastrous 96%? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! As every investor would know, not every swing hits the sweet spot. But you want to avoid the really big losses like the plague. So consider, for a moment, the misfortune ofApplyDirect Limited(ASX:AD1) investors who have held the stock for three years as it declined a whopping 96%. That might cause some serious doubts about the merits of the initial decision to buy the stock, to put it mildly. And over the last year the share price fell 76%, so we doubt many shareholders are delighted. Even worse, it's down 37% in about a month, which isn't fun at all. We really feel for shareholders in this scenario. It's a good reminder of the importance of diversification, and it's worth keeping in mind there's more to life than money, anyway. View our latest analysis for ApplyDirect ApplyDirect 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth. Over three years, ApplyDirect grew revenue at 35% per year. That is faster than most pre-profit companies. So on the face of it we're really surprised to see the share price down 67% a year in the same time period. You'd want to take a close look at the balance sheet, as well as the losses. Sometimes fast revenue growth doesn't lead to profits. If the company is low on cash, it may have to raise capital soon. The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values). We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Before buying or selling a stock, we always recommend a close examination ofhistoric growth trends, available here.. Over the last year, ApplyDirect shareholders took a loss of 76%. In contrast the market gained about 11%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. The three-year loss of 67% per year isn't as bad as the last twelve months, suggesting that the company has not been able to convince the market it has solved its problems. Although Warren Buffett famously said he likes to 'buy when there is blood on the streets', he also focusses on high quality stocks with solid prospects. If you want to research this stock further, the data on insider buying is an obvious place to start. You canclick here to see who has been buying shares - and the price they paid. If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU exchanges. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Bourbon barrel recovery underway at storm-damaged warehouse OWENSBORO, Ky. (AP) A Kentucky distillery says efforts are underway to recover thousands of barrels of bourbon at a massive storage warehouse that partially collapsed during a thunderstorm. O.Z. Tyler Distillery in Owensboro said a section of the warehouse has been "successfully deconstructed" and the painstaking process of recovering barrels is moving ahead as part of an overall plan to eventually take down the entire building, called a rickhouse. Distillery officials say the warehouse cannot be salvaged. "We are very pleased with the progress moving into the weekend and realize it will take some time to remove all barrels from the site, but our first concern, and priority, is safety," master distiller Jacob Call said in an update posted on the distillery's website. The deconstruction plan calls for a "controlled collapse" of the entire warehouse at some point, Call said. No one was injured when part of the rickhouse collapsed early Monday. The distillery said "minimal leakage" of bourbon has been reported. The distillery said 19,400 barrels were aging in the warehouse, including about 4,500 barrels in the storm-damaged section. Barrels are being plucked from the warehouse with the use of an "ultra-high reach demolition excavator," the distillery said. Damaged barrels will be either repaired or disposed of, and the bourbon will be "re-barreled" and moved to storage, it added. O.Z. Tyler officials have been meeting daily with representatives of the federal Environmental Protection Agency as well as state and local officials. Containment measures include an earthen berm around the warehouse, the distillery said. Chain link fencing and temporary concrete barricades are in place to secure the site, it said. Another Kentucky bourbon barrel warehouse collapsed last year. Half of a warehouse collapsed at the Barton 1792 Distillery in Bardstown on June 22, 2018, and the other half came down two weeks later.
Have Insiders Been Buying ApplyDirect Limited (ASX:AD1) Shares? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! 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 before you buy or sellApplyDirect Limited(ASX:AD1), you may well want to know whether insiders have been buying or selling. It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information. We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. 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 ApplyDirect Over the last year, we can see that the biggest insider purchase was by Director Michael Norster for AU$2.9m worth of shares, at about AU$0.027 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.012). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Happily, we note that in the last year insiders bought 115.9m shares for a total of AU$3.2m. In the last twelve months ApplyDirect insiders were buying shares, but not selling. 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! ApplyDirect is not the only stock that insiders are buying. For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket. Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that ApplyDirect insiders own 53% of the company, worth about AU$2.7m. 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 doesn't really mean much that no insider has traded ApplyDirect shares in the last quarter. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like ApplyDirect insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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. But note:ApplyDirect 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.
Glastonbury's Emily Eavis: Jay-Z backlash was out of control Glastonbury's Emily Eavis joins Lauren Laverne on 'Desert Island Discs' (Credit: BBC Radio 4/Amanda Benson) Glastonbury co-organiser Emily Eavis has admitted she did not anticipate the backlash towards signing Jay-Z as a headline act. The daughter of Glastonbury founder Michael Eavis began helping her father organise the music festival in 2000 and in 2008 announced Jay-Z would be the headline act. Emily told Lauren Laverne on BBC Radio 4s Desert Island Discs : Jay-Z was probably the most controversial booking we have ever made. It just felt like an out of control storm that I was just never going to get out of. Every story, every day was just negative. Read more: Janet Jackson ribbed mercilessly by fans after bumping herself up to Glastonbury headliner Wed sold 80,000 tickets on the day of our ticket sale, and that is quite low for us, we normally sell out. We hadnt even announced Jay-Z at that point. Jay-Z performing on the Pyramid Stage at Glastonbury Festival in 2008 (Credit: Tabatha Fireman/Redferns via Getty Images) And then we announced Jay-Z and people just took the lack of popularity for that year and the fact that wed booked a different headliner as being this perfect storm of, Its all over, and, Theyve lost their minds! And I didnt see it coming. I just thought wed booked a really good really good artist, whos one fo the best lyricists int he world, who can come and do a really good hip-hop show. But she admitted it was huge relief when the rappers perfomance on the Pyramid Stage was so well received by festival goers. She said: And then he came on and actually it was incredible. I kind of had that feeling just about five ins before he came on, when I saw the crowd and they were all chanting, Jay-Z! Jay-Z! I grabbed my dad who was like, Do you think I should come and watch? And I was like, Yeah! Read more: Glastonbury Festival Bans Sale of Single-Use Plastic Bottles And we stood and watched him come on and my dad had never seen anything like it and he started laughing uncontrollably, and I started laughing and we were just looking out at this enormous field and it was an enormous feeling of togetherness. Farmer and music-lover Michael Eavis founded the festival on his farm in Somerset in 1970 and it was traditionally headlined by rock acts. Michael Eavis and Emily Eavis collect the Best Festival Award during the NME Awards 2016 with Austin, Texas at the O2 Brixton Academy, London. Emily admitted she and her father used to argue a lot when she took over choosing the line-up. She said: I think it was quite hard, something he created, its something of a different era. We havent had an argument for ages, we used to have quite a lot of dynamic real arguments. I think weve found our groove now. He loves the fact Im there and the children and hes really involved as a grandfather, hes very hands on. Emily, who was born in 1979, admitted that as a child she found the festival being held on her family farm scary. Story continues The mother-of-three confided: I wasnt that into the festival in the 80s, it was pretty scary at times and not at all like it is now... There were times it felt quite unsafe during the riots in the late 80s. My dad loved the risk, my mum kept it steady. Emily Eavis is on Desert Island Discs on BBC Sounds and BBC Radio 4 on Sunday June 23rd at 11:15am View comments
What Does Dreamscape Networks Limited's (ASX:DN8) Share Price Indicate? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Dreamscape Networks Limited (ASX:DN8), which is in the it business, and is based in Singapore, led the ASX gainers with a relatively large price hike in the past couple of weeks. Less-covered, small caps tend to present more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Today I will analyse the most recent data on Dreamscape Networks’s outlook and valuation to see if the opportunity still exists. Check out our latest analysis for Dreamscape Networks 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 14.32x is currently trading slightly below its industry peers’ ratio of 16.25x, which means if you buy Dreamscape Networks today, you’d be paying a fair price for it. And if you believe Dreamscape Networks should be trading in this range, then there isn’t much room for the share price grow beyond where it’s currently trading. Although, there may be an opportunity to buy in the future. This is because Dreamscape Networks’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. Dreamscape Networks’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?DN8’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 DN8? 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 DN8, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic forecast is encouraging for DN8, 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 Dreamscape Networks. You can find everything you need to know about Dreamscape Networks inthe latest infographic research report. If you are no longer interested in Dreamscape Networks, 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.
US cyberattack reportedly knocked out Iran missile control systems The US may have withheld a physical military response to Iran shooting down a drone, but it might not have shown similar restraint with a digital campaign.Washington Postsourcessay the President greenlit a long-in-the-making cyberattack that took down Iranian missile control computers on the night of June 20th. The exact impact of the Cyber Command operation isn't clear, but it was described as "crippling" -- Iran couldn't easily recover, one tipster said. It's uncertain how Iran reacted to the apparent attack. Officials have declined to comment, with Cyber Command noting that it doesn't want to jeopardize its operations by discussing its online efforts. The report comes days after word of the US planting offensive malwarein Russia's power grid, however, and not much longer after national security advisor John Bolton said the US was "broadening the areas" where it was prepared to use cyberwarfare. While this wasn't an immediate response to Iran's actions, it does show how the use of cyberattacks has become a larger part of an overall political strategy. They're not just used to achieve long-term goals, as was the case whenStuxnetsabotaged Iran's nuclear program. Under theelevated Cyber Command, they're coming into play for short-term actions that could disable immediate threats and apply political pressure.
Velodyne Lidar hires bankers for an IPO: Business Insider (Reuters) - Autonomous vehicle technology company Velodyne Lidar has hired bankers for an initial public offering, Business Insider reported on Saturday, citing sources familiar with the process. The San Jose, California-based company is working with Bank of America Merrill Lynch, Citigroup Inc, Royal Bank of Canada, and William Blair for a potential IPO, the report said. Velodyne is looking to surpass its private valuation of $1.8 billion and go public before the end of 2019, Business insider added, citing a source. Nikon Corp invested $25 million in the self-driving car technology company in December 2018. Velodyne Lidar did not respond to Reuters' request for comment outside regular business hours. (Reporting by Ishita Chigilli Palli in Bengaluru; Editing by Daniel Wallis)
When Should You Buy Dreamscape Networks Limited (ASX:DN8)? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Dreamscape Networks Limited (ASX:DN8), which is in the it business, and is based in Singapore, led the ASX gainers with a relatively large price hike in the past couple of weeks. As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s take a look at Dreamscape Networks’s outlook and value based on the most recent financial data to see if the opportunity still exists. See our latest analysis for Dreamscape Networks According to my relative valuation model, the stock seems to be currently fairly priced. 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 14.32x is currently trading slightly below its industry peers’ ratio of 16.25x, which means if you buy Dreamscape Networks today, you’d be paying a reasonable price for it. And if you believe Dreamscape Networks should be trading in this range, then there isn’t much room for the share price grow beyond where it’s currently trading. Although, there may be an opportunity to buy in the future. This is because Dreamscape Networks’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. Dreamscape Networks’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?It seems like the market has already priced in DN8’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 DN8? 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 DN8, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for DN8, which means it’s worth diving deeper into 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 Dreamscape Networks. You can find everything you need to know about Dreamscape Networks inthe latest infographic research report. If you are no longer interested in Dreamscape Networks, 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.
Harris, Warren, others counter Biden's electability argument COLUMBIA, S.C. (AP) — Standing before a throng of party faithful in a key early primary state, Joe Biden's leading rivals for the 2020 Democratic presidential nomination sought Saturday to undercut the former vice president's argument that he's the ideal Democrat to oust President Donald Trump. They did it without mentioning the 76-year-old front-runner at all. Biden, in turn, didn't mention them either. California Sen. Kamala Harris charged straight at Trump as she addressed hundreds of activists at the South Carolina Democratic Party Convention. "We need somebody on our stage when it comes for that general election, who knows how to recognize a rap sheet when they see it and prosecute the case," Harris said, playing off her experience as a state and local prosecutor as she shredded Trump on a litany of policy fronts. Then, in a seeming reference to Biden, the 54-year-old senator added that South Carolina voters mustn't "turn back the clock" but instead, "Let's start the next chapter. Let's turn the page." It was a demonstration that Biden, who's drawn fire in recent weeks for his reversal on opposing taxpayer funding of abortion and his recollections of working with long-dead segregationist senators, won't become the Democratic nominee without an intense fight, no matter his front-runner's strategy. Massachusetts Sen. Elizabeth Warren pitched her progressive policies as an agenda with wide reach. "People across this nation understand it is time for big, structural change in America. The time for small ideas is over," Warren said, adding the approach can draw in Democrats and Republicans." Vermont Sen. Bernie Sanders, meanwhile, pushed back at a centrist Democratic group, "Third Way," and some of its members' assertions that his democratic socialism is an "existential threat" to the party's 2020 hopes. Sanders countered that his left-flank agenda can win the White House. "We defeat Trump by running a campaign of energy and enthusiasm that substantially grows voter turnout ... in a way we have never seen," he said. Biden had the luxury of the last word Saturday, using his draw as the last of 20 candidates at the rostrum to deliver a rapid-fire litany of policy proposals, including a new pitch for an $8,000 tax credit for child care services. The former vice president avoided mention of his recent spat with New Jersey Sen. Cory Booker, who'd called for the former vice president to apologize after recalling how he had to work with virulent segregationists when he was first elected to the Senate in 1972. Booker took particularly exception to Biden noting that Mississippi Sen. James Eastland "never called me boy," only "son." Story continues In an interview with MSNBC after his speech Saturday, Biden did not apologize, saying his remarks got twisted. "I do understand the consequence of the word boy, but it wasn't said in any of that context at all," Biden says. Biden said he was trying to illustrate that Eastland didn't respect him, then the youngest senator. Biden has said he mentioned the segregationists in the first place only to underscore that Congress once functioned better than today even with men like Eastland in the mix, because members worked together despite fundamental disagreements. The convention Saturday was part of big political weekend in South Carolina that also included a Friday night party gala; the annual fish fry hosted by House Majority Whip Jim Clyburn; and a Saturday forum hosted by Planned Parenthood. For South Carolina Democrats, it was the culmination of several decades raising the state's profile to compete with Iowa and New Hampshire, the two states that for decades have led off presidential voting. For Biden and his rivals, it was a key test in a crucial primary state and a last public tune-up ahead of next week's inaugural 2020 debates in Miami. South Carolina boasts the largest electorate of the four early nominating states, and its mix of black voters and moderate whites gives candidates a proving ground ahead of a Super Tuesday slate of similar Southern states with hundreds of delegates at stake. Biden has led national Democratic polls since he announced his bid in April. He has shown particular strength in South Carolina, where he has deep relationships from previous presidential runs, friendships with two of state's towering former senators and, perhaps most important in 2020, his eight years as President Barack Obama's vice president. The South Carolina crowd roared when Biden mentioned his old boss and compared his demeanor to Trump's. "Our children are watching, they're watching, and it matters what presidents say and do," Biden said. "Barack Obama they watched, and they emulated. They wanted to be like him." The wide-ranging arguments in response revealed a Democratic field without a settled counter to the front-runner's early advantages. But it was clear that Biden's rivals won't yield South Carolina or the Super Tuesday map. Minnesota Sen. Amy Klobuchar, who campaigns heavily on her electoral success in Midwest states that swept Trump to office, tried to apply that to Republican-run South Carolina. "I know how to win," she said. Mayor Pete Buttigieg of South Bend, Indiana, made his first appearance of the weekend on Saturday, a white politician whose relationships with black constituents are in the spotlight. Buttigieg had canceled his Friday plans in South Carolina to remain at home after a South Bend police officer shot and killed a black man last weekend. "We will heal and we will become stronger in the broken places," Buttigieg promised on the morning after he was jeered in his hometown. Buttigieg later promised massive investments in the black community on the scale of the Marshall Plan in post-World War II Europe. ___ Follow the reporters on Twitter at https://twitter.com/BillBarrowAP and https://twitter.com/MegKinnardAP . View comments
Does Bisalloy Steel Group Limited (ASX:BIS) Have A Particularly Volatile Share Price? Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Anyone researching Bisalloy Steel Group Limited ( ASX:BIS ) 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 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 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 Bisalloy Steel Group What BIS's beta value tells investors Zooming in on Bisalloy Steel Group, we see it has a five year beta of 0.81. This is below 1, so historically its share price has been rather independent from the market. If history is a good guide, owning the stock should help ensure that your portfolio is not overly sensitive to market volatility. 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 Bisalloy Steel Group fares in that regard, below. Story continues ASX:BIS Income Statement, June 22nd 2019 Does BIS's size influence the expected beta? With a market capitalisation of AU$42m, Bisalloy Steel Group is a very small company by global standards. It is quite likely to be unknown to 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. What this means for you: Since Bisalloy Steel Group is not heavily influenced by market moves, its share price is probably far more dependend on company specific developments. It could pay to take a closer look at metrics such as revenue growth, earnings growth, and debt. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as Bisalloy Steel Group’s financial health and performance track record. I highly recommend you dive deeper by considering the following: Future Outlook : What are well-informed industry analysts predicting for BIS’s future growth? Take a look at our free research report of analyst consensus for BIS’s outlook. Past Track Record : Has BIS 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 at the free visual representations of BIS's historicals for more clarity. Other Interesting Stocks : It's worth checking to see how BIS measures up against other companies on valuation. You could start with this free 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 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.
The Latest: US struck Iranian computers earlier this week WASHINGTON (AP) — The Latest on Iran and cyberattacks (all times local): 7:30 p.m. Officials say U.S. military cyber forces earlier this week launched a retaliatory cyber strike against Iranian computer systems amid escalating tensions between the two countries. Three U.S. officials tell The Associated Press that the operation on Thursday evening disabled Iranian computer systems that controlled Iran's rocket and missile launchers. The officials spoke on condition of anonymity because they were not authorized to speak publicly. Yahoo News first reported the cyber strike. Two of the officials say President Donald Trump authorized the cyber strike even as he called off a conventional military response to Iran's downing of a U.S. surveillance drone. The officials say defense officials had prepared such a cyber response as a contingency plan for weeks preceding the attack. ___ 8:45 a.m. Cybersecurity firms say Iran has increased its offensive cyberattacks against the U.S. government and critical infrastructure as tensions have grown between the two nations. CrowdStrike and FireEye, which regularly track such activity, say in recent weeks hackers believed to be working for the Iranian government have targeted U.S. government agencies, as well as sectors of the economy, including oil and gas. The firms say the hackers have sent waves of spear-phishing emails. It is not known if the hackers managed to gain access to the targeted networks with the emails, which typically mimic legitimate emails but contain malicious software. The cyber offensive is the latest chapter in ongoing cyber operations between the U.S. and Iran. The recent sharp increase is occurring after the Trump administration imposed sanctions on the Iranian petrochemical sector this month.
Neil Young's Longtime Manager Elliot Roberts Dies at 76: 'My Best Friend in the World,' Singer Says Neil Young honored his longtime manager, Elliot Roberts, who died on Friday. He was 76. Young, 73, posted a touching tribute to his friend and manager of over 50 years on Saturday on his website , celebrating the man whom he says was central in maintaining his decades-long career in the music industry. “My friend for over 50 years, Elliot Roberts, has passed away. We are all heartbroken, but want to share what a great human being Elliot has been. Never one to think of himself, he put everyone else first,” the singer wrote. “That’s what he did for me for over fifty years of friendship love laughter, managing my life, protecting our art in the business of music. That’s what he did.” Young continued, “He was devoted to each of his kids from the very beginning. He would fly halfway around the world just to see his family for one day. That’s just the way he loved them. He was so happy with his soul-mate Dana. No matter where I was in the world, no matter his other obligations, he was always by the side of the stage as much as he could be.” Elliot Roberts \| Amanda Edwards/WireImage RELATED: Miley Cyrus & Neil Young Lose Homes in California Fires as He Slams ‘Unfit’ Trump Young remembered his close friend’s humor, adding, “Elliot was the funniest human being on earth with his uncanny wit and a heart filled with love. You never knew what he was going to say, but almost always a laugh was coming.” The two-time Grammy winner added, “He was my best friend in the world for so many years, and he was so happy for me and the life I found, with Daryl, my wonderful wife and soul sharer.” Roberts, born Elliot Rabinowitz in 1943, also managed the careers of Joni Mitchell, the Eagles, Tom Petty, the Talking Heads and Devo. Young praised Roberts for his business-savvy nature and how he always put his clients first as a manager. Elliot Roberts and Joni Mitchell, 1972 \| Gijsbert Hanekroot/Redferns RELATED: Neil Young Writes Touching Tribute to Ex-Wife Pegi Young Following Her Death from Cancer Story continues “Elliot loved making deals for all of us, saving our publishing rights, ensuring we were treated well, helping book our concerts, as well as booking the Bridge Concert with Marsha Vlassic from the very beginning for over 30 years. He made it happen,” Young said. “This world is forever changed for me, for all who knew him and loved him. His memory shines with love.” “Elliot Roberts was the greatest manager of all time. See you at the gig, Elliot,” Young finished the tribute. Roberts cause of death was not immediately revealed.
How Does Bisalloy Steel Group Limited (ASX:BIS) Affect Your Portfolio Volatility? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! If you own shares in Bisalloy Steel Group Limited (ASX:BIS) 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 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. 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. Check out our latest analysis for Bisalloy Steel Group Looking at the last five years, Bisalloy Steel Group has a beta of 0.81. The fact that this is well below 1 indicates that its share price movements haven't historically been very sensitive to overall market volatility. If history is a good guide, owning the stock should help ensure that your portfolio is not overly sensitive to market volatility. 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 Bisalloy Steel Group's revenue and earnings in the image below. Bisalloy Steel Group is a noticeably small company, with a market capitalisation of AU$42m. Most companies this size are not always actively traded. It is not unusual for very small companies to have a low beta value, especially if only low volumes of shares are traded. Even when they are traded more actively, the share price is often more susceptible to company specific developments than overall market volatility. The Bisalloy Steel Group doesn't usually show much sensitivity to the broader market. This could be for a variety of reasons. Typically, smaller companies have a low beta if their share price tends to move a lot due to company specific developments. Alternatively, an strong dividend payer might move less than the market because investors are valuing it for its income stream. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as Bisalloy Steel Group’s financial health and performance track record. I urge you to continue your research by taking a look at the following: 1. Future Outlook: What are well-informed industry analysts predicting for BIS’s future growth? Take a look at ourfree research report of analyst consensusfor BIS’s outlook. 2. Past Track Record: Has BIS 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 BIS's historicalsfor more clarity. 3. Other Interesting Stocks: It's worth checking to see how BIS 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.
What Are Analysts Saying About Sa Sa International Holdings Limited's (HKG:178) Future? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! On 31 March 2019, Sa Sa International Holdings Limited (HKG:178) announced its latest earnings update. Overall, it seems that analyst forecasts are fairly bearish, with earnings expected to decline by 3.4% in the upcoming year. However, compared to its 5-year track record of the average earnings growth rate of -20%, this is still an improvement. Currently with a trailing-twelve-month profit of HK$472m, the consensus growth rate suggests that earnings will drop to HK$456m by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Sa Sa International Holdings in the longer term. Readers that are interested in understanding the company beyond these figures shouldresearch its fundamentals here. See our latest analysis for Sa Sa International Holdings The view from 13 analysts over the next three years is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To understand the overall trajectory of 178's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope. From the current net income level of HK$472m and the final forecast of HK$572m by 2022, the annual rate of growth for 178’s earnings is 6.8%. EPS reaches HK$0.18 in the final year of forecast compared to the current HK$0.15 EPS today. In 2022, 178's profit margin will have expanded from 5.6% to 6.1%. Future outlook is only one aspect when you're building an investment case for a stock. For Sa Sa International Holdings, I've compiled three pertinent factors 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. Valuation: What is Sa Sa International Holdings 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 Sa Sa International Holdings is currently mispriced by the market. 3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of Sa Sa International Holdings? 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.
These 2 Energy Giants Are Teaming Up to Make a $15 Billion Bet on Plastics Oil behemothChevron(NYSE: CVX)and refining giantPhillips 66(NYSE: PSX)have been working together in the petrochemicals industry for nearly two decades through their 50-50 joint venture CPChem. They've built one of the world's largest petrochemical manufacturing companies, which operates 31 production facilities in five countries. They've mainly grown that business organically by building new petrochemical complexes, including recently investing $6 billion to expand their capacity in the U.S. Gulf Coast. However, according to a report by Reuters, they've made an offer to buy Canadian plastics maker Nova Chemicals for $15 billion. That deal would increase the joint venture's scale and expand its footprint while making it a more meaningful growth driver for the two energy giants. Image source: Getty Images. Nova Chemicals manufactures polyethylene resins (the most common plastic) and expandable styrenics (foam resins used to make things like cups and containers) from several facilities in the U.S. and Canada. The company is currently owned by Abu Dhabi's sovereign wealth fund, which bought it for a mere $500 million during the global financial crisis in 2009. The fund gave it the financial resources it needed to grow. That allowed the company to rapidly expand over the past decade as it took advantage of North America's abundance of low-cost oil and natural gas, which are key raw materials used to make plastics. An acquisition of Nova Chemicals by CPChem would expand its footprint into Canada while also increasing its presence in the key U.S. Gulf Coast petrochemicals hub. Nova Chemicals currently operates several facilities along the Gulf Coast and recently signed a joint venture with two other petrochemical companies to build some new facilities in Texas. That will enable the company to take even greater advantage of all the cheap oil and gas flowing into the region. Nova's U.S. Gulf Coast growth strategy lines up with CPChem's plan. The company recently started up three new petrochemical plants in that region as part of a $6 billion expansion program. Meanwhile, Chevron and Phillips 66 are currently considering building another new petrochemical plant in the area that would cost between $5 billion and $6 billion. Image source: Getty Images. Chevron makes most of its money producing oil, and Phillips 66 is primarily an oil refiner. In the first quarter of 2019, for example, Chevron'supstream businesscontributed $3.1 billion of earnings while itsdownstream operations, which include its refining business as well as its stake in CPChem, hauled in only $252 million in profit. The chemicals segment, meanwhile, was a larger contributor for Phillips 66 during that period -- supplying $227 million of its $319 million of adjusted earnings -- though that's solely due to thechallenges facing the refining sectorin the quarter. Because it's a minor contributor, most investors don't pay too much attention to this chemicals joint venture. However, CPChem has been a very steady contributor for those companies over the years. It helps them offset some of the volatility in their primary operations since earnings from upstream oil production and refining can swing wildly due to the fluctuations in the prices of oil and gas. Because the chemicals business consumes oil and gas, it acts as a natural hedge against the swings in commodity prices. Another benefit of the petrochemicals business is that it enables these energy companies to maximize their per-barrel profit. Chevron, for example, can take the oil and gas it pumps out of places like the Permian Basin and eventually turn that production into higher-value chemicals. Phillips 66, likewise, can take the naphtha it produces at its oil refineries, as well as the propane and ethane it makes at its natural gas liquids processing complexes, and turn them into the building blocks of plastics. The final benefit that CPChem brings to these two energy giants is its growth prospects. As mentioned, the company has been taking advantage of the increase in oil and gas production in North America to build new petrochemical complexes along the U.S. Gulf Coast, which increase both production and profitability. Meanwhile, if it were to acquire Nova, the company would increase its ability to expand since it can also grow in Canada and in the gas-rich Marcellus and Utica shale regions in the Northeast where Nova operates several facilities. CPChem's interest in buying Nova Chemicals isn't surprising since it would fit well with its strategy to expand in North America. The proposed acquisition would significantly expand its scale while improving its growth prospects since Nova and some of its partners are currently building new capacity in Texas. However, even if CPChem doesn't make this deal, it won't significantly impact Chevron and Phillips 66, because it's a smaller contributor to their earnings and they already have a needle-moving expansion in the works. More From The Motley Fool • 10 Best Stocks to Buy Today • The $16,728 Social Security Bonus You Cannot Afford to Miss • 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) • What Is an ETF? • 5 Recession-Proof Stocks • How to Beat the Market Matthew DiLalloowns shares of Phillips 66. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy.
Is There An Opportunity With Guangzhou Automobile Group Co., Ltd.'s (HKG:2238) 39% Undervaluation? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! How far off is Guangzhou Automobile Group Co., Ltd. (HKG:2238) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to their present value. I will be using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple! Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model. View our latest analysis for Guangzhou Automobile Group 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. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, 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\u00a5-2.03k", "2020": "CN\u00a55.60k", "2021": "CN\u00a55.87k", "2022": "CN\u00a56.10k", "2023": "CN\u00a56.30k", "2024": "CN\u00a56.49k", "2025": "CN\u00a56.66k", "2026": "CN\u00a56.82k", "2027": "CN\u00a56.98k", "2028": "CN\u00a57.14k"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x1", "2020": "Analyst x1", "2021": "Analyst x2", "2022": "Est @ 3.88%", "2023": "Est @ 3.32%", "2024": "Est @ 2.92%", "2025": "Est @ 2.65%", "2026": "Est @ 2.45%", "2027": "Est @ 2.32%", "2028": "Est @ 2.22%"}, {"": "Present Value (CN\u00a5, Millions) Discounted @ 6.77%", "2019": "CN\u00a5-1.90k", "2020": "CN\u00a54.92k", "2021": "CN\u00a54.83k", "2022": "CN\u00a54.69k", "2023": "CN\u00a54.54k", "2024": "CN\u00a54.38k", "2025": "CN\u00a54.21k", "2026": "CN\u00a54.04k", "2027": "CN\u00a53.87k", "2028": "CN\u00a53.71k"}] Present Value of 10-year Cash Flow (PVCF)= CN¥37.28b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (2%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 6.8%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = CN¥7.1b × (1 + 2%) ÷ (6.8% – 2%) = CN¥153b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= CN¥CN¥153b ÷ ( 1 + 6.8%)10= CN¥79.30b 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 CN¥116.58b. 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¥11.39. However, 2238’s primary listing is in China, and 1 share of 2238 in CNY represents 1.137 ( CNY/ HKD) share of SEHK:2238,so the intrinsic value per share in HKD is HK$12.95.Compared to the current share price of HK$7.89, the company appears quite good value at a 39% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Guangzhou Automobile Group 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 6.8%, 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. Although the valuation of a company is important, it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Guangzhou Automobile Group, There are three fundamental factors you should look at: 1. Financial Health: Does 2238 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 2238'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 2238? 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.
What Kind Of Shareholder Owns Most Shanghai Jiaoda Withub Information Industrial Company Limited (HKG:8205) Stock? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Every investor in Shanghai Jiaoda Withub Information Industrial Company Limited (HKG:8205) should be aware of the most powerful shareholder groups. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. 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. Shanghai Jiaoda Withub Information Industrial is a smaller company with a market capitalization of HK$110m, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutions are not on the share registry. Let's take a closer look to see what the different types of shareholder can tell us about 8205. View our latest analysis for Shanghai Jiaoda Withub Information Industrial Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them. 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. Alternatively, there might be something about the company that has kept institutional investors away. Shanghai Jiaoda Withub Information Industrial might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely. Hedge funds don't have many shares in Shanghai Jiaoda Withub Information Industrial. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known. The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. I can report that insiders do own shares in Shanghai Jiaoda Withub Information Industrial Company Limited. As individuals, the insiders collectively own HK$5.6m worth of the HK$110m company. It is good to see some investment by insiders, but I usually like to see higher insider holdings. It might be worth checkingif those insiders have been buying. With a 35% ownership, the general public have some degree of sway over 8205. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. With an ownership of 12%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. 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. It seems that Private Companies own 36%, of the 8205 stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company. We can see that public companies hold 13%, of the 8205 shares on issue. We can't be certain, but this is quite possible this is a strategic stake. The businesses may be similar, or work together. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. 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 course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
How Do Analysts See Sa Sa International Holdings Limited (HKG:178) Performing In The Years Ahead? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Sa Sa International Holdings Limited's (HKG:178) latest earnings update in June 2019 revealed that the business experienced a small tailwind, leading to a single-digit earnings growth of 1.5%. Below is my commentary, albeit very simple and high-level, on how market analysts predict Sa Sa International Holdings's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. Check out our latest analysis for Sa Sa International Holdings Market analysts' prospects for the coming year seems pessimistic, with earnings reducing by -3.4%. But in the following year, there is a complete contrast in performance, with arriving at double digit 12% compared to today’s level and continues to increase to HK$572m in 2022. Although it’s helpful to understand the growth rate year by year relative to today’s value, it may be more valuable analyzing the rate at which the company is growing every year, on average. The advantage of this method is that we can get a better picture of the direction of Sa Sa International Holdings's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I've appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 6.8%. This means that, we can presume Sa Sa International Holdings will grow its earnings by 6.8% every year for the next couple of years. For Sa Sa International Holdings, I've compiled three relevant aspects you should further examine: 1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Valuation: What is 178 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 178 is currently mispriced by the market. 3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 178? 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.
Here’s What Fu Yu Corporation Limited’s (SGX:F13) Return On Capital Can Tell Us Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we'll evaluate Fu Yu Corporation Limited (SGX:F13) to determine whether it could have potential as an investment idea. Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. First of all, we'll work out how to calculate ROCE. Then we'll compare its ROCE to similar companies. And finally, we'll look at how its current liabilities are impacting its ROCE. ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business. All else being equal, a better business will have a higher ROCE. Overall, it is a valuable metric that has its flaws. Renowned investment researcher Michael Mauboussinhas suggestedthat a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'. The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Fu Yu: 0.08 = S$14m ÷ (S$225m - S$52m) (Based on the trailing twelve months to March 2019.) Therefore,Fu Yu has an ROCE of 8.0%. See our latest analysis for Fu Yu ROCE is commonly used for comparing the performance of similar businesses. We can see Fu Yu's ROCE is around the 8.0% average reported by the Machinery industry. Separate from how Fu Yu stacks up against its industry, its ROCE in absolute terms is mediocre; relative to the returns on government bonds. Investors may wish to consider higher-performing investments. When considering ROCE, bear in mind that it reflects the past and does not necessarily predict the future. Companies in cyclical industries can be difficult to understand using ROCE, as returns typically look high during boom times, and low during busts. ROCE is, after all, simply a snap shot of a single year. What happens in the future is pretty important for investors, so we have prepared afreereport on analyst forecasts for Fu Yu. Current liabilities are short term bills and invoices that need to be paid in 12 months or less. The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. To counter this, investors can check if a company has high current liabilities relative to total assets. Fu Yu has total liabilities of S$52m and total assets of S$225m. As a result, its current liabilities are equal to approximately 23% of its total assets. This very reasonable level of current liabilities would not boost the ROCE by much. That said, Fu Yu's ROCE is mediocre, there may be more attractive investments around. You might be able to find a better investment than Fu Yu. If you want a selection of possible winners, check out thisfreelist of interesting companies that trade on a P/E below 20 (but have proven they can grow earnings). If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them). 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.
Device to trap plastic waste in Pacific Ocean relaunches SAN FRANCISCO (AP) — A floating device designed to catch plastic waste has been redeployed in second attempt to clean up a huge island of trash swirling in the Pacific Ocean between California and Hawaii. Boyan Slat, creator of The Ocean Cleanup project, announced on Twitter that a 2,000-foot (600-meter) long floating boom that broke apart late last year was sent back to the Great Pacific Garbage Patch this week after four months of repair. A ship towed the U-shaped barrier from San Francisco to the patch in September to trap the plastic. But during the four months at sea, the boom broke apart under constant waves and wind and the boom wasn't retaining the plastic it caught. "Hopefully nature doesn't have too many surprises in store for us this time," Slat tweeted. "Either way, we're set to learn a lot from this campaign." Fitted with solar-powered lights, cameras, sensors and satellite antennas, the device intends to communicate its position at all times, allowing a support vessel to fish out the collected plastic every few months and transport it to dry land. The plastic barrier with a tapered 10-foot-deep (3-meter-deep) screen is intended to act like a coastline, trapping some of the 1.8 trillion pieces of plastic that scientists estimate are swirling in the patch while allowing marine life to safely swim beneath it. During its first run, the organization said marine biologists on board the support vessel did not observe any environmental impact. Slat has said he hopes one day to deploy 60 of the devices to skim plastic debris off the surface of the ocean.
Is Fu Yu Corporation Limited’s (SGX:F13) 8.0% Return On Capital Employed Good News? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we are going to look at Fu Yu Corporation Limited (SGX:F13) to see whether it might be an attractive investment prospect. To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. First, we'll go over how we calculate ROCE. Second, we'll look at its ROCE compared to similar companies. And finally, we'll look at how its current liabilities are impacting its ROCE. ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Generally speaking a higher ROCE is better. Overall, it is a valuable metric that has its flaws. Author Edwin Whitingsaysto be careful when comparing the ROCE of different businesses, since 'No two businesses are exactly alike.' Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Fu Yu: 0.08 = S$14m ÷ (S$225m - S$52m) (Based on the trailing twelve months to March 2019.) So,Fu Yu has an ROCE of 8.0%. View our latest analysis for Fu Yu ROCE can be useful when making comparisons, such as between similar companies. We can see Fu Yu's ROCE is around the 8.0% average reported by the Machinery industry. Setting aside the industry comparison for now, Fu Yu's ROCE is mediocre in absolute terms, considering the risk of investing in stocks versus the safety of a bank account. Readers may find more attractive investment prospects elsewhere. When considering ROCE, bear in mind that it reflects the past and does not necessarily predict the future. ROCE can be deceptive for cyclical businesses, as returns can look incredible in boom times, and terribly low in downturns. This is because ROCE only looks at one year, instead of considering returns across a whole cycle. Since the future is so important for investors, you should check out ourfreereport on analyst forecasts for Fu Yu. Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE. To counter this, investors can check if a company has high current liabilities relative to total assets. Fu Yu has total liabilities of S$52m and total assets of S$225m. Therefore its current liabilities are equivalent to approximately 23% of its total assets. This is a modest level of current liabilities, which would only have a small effect on ROCE. That said, Fu Yu's ROCE is mediocre, there may be more attractive investments around. You might be able to find a better investment than Fu Yu. If you want a selection of possible winners, check out thisfreelist of interesting companies that trade on a P/E below 20 (but have proven they can grow earnings). If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Is China Resources Gas Group Limited (HKG:1193) A Financially Strong Company? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! China Resources Gas Group Limited (HKG:1193), a large-cap worth HK$85b, comes to mind for investors seeking a strong and reliable stock investment. Most investors favour these big stocks due to their strong balance sheet and high market liquidity, meaning there are an abundance of stock in the public market available for trading. These companies are resilient in times of low liquidity and are not as strongly impacted by interest rate hikes as companies with lots of debt. Using the most recent data for 1193, I will determine its financial status based on its solvency and liquidity, and assess whether the stock is a safe investment. Check out our latest analysis for China Resources Gas Group 1193 has built up its total debt levels in the last twelve months, from HK$12b to HK$13b , which accounts for long term debt. With this growth in debt, the current cash and short-term investment levels stands at HK$12b , ready to be used for running the business. Moreover, 1193 has generated cash from operations of HK$8.3b over the same time period, leading to an operating cash to total debt ratio of 66%, indicating that 1193’s current level of operating cash is high enough to cover debt. Looking at 1193’s HK$34b in current liabilities, the company may not be able to easily meet these obligations given the level of current assets of HK$25b, with a current ratio of 0.73x. The current ratio is calculated by dividing current assets by current liabilities. With a debt-to-equity ratio of 40%, 1193's debt level may be seen as prudent. This range is considered safe as 1193 is not taking on too much debt obligation, which can be restrictive and risky for equity-holders. We can check to see whether 1193 is able to meet its debt obligations by looking at the net interest coverage ratio. Net interest should be covered by earnings before interest and tax (EBIT) by at least three times to be safe. For 1193, the ratio of 53.05x suggests that interest is amply covered. Large-cap investments like 1193 are often believed to be a safe investment due to their ability to pump out ample earnings multiple times its interest payments. 1193’s high cash coverage and appropriate debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow. Though its lack of liquidity raises questions over current asset management practices for the large-cap. I admit this is a fairly basic analysis for 1193's financial health. Other important fundamentals need to be considered alongside. I suggest you continue to research China Resources Gas Group to get a more holistic view of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for 1193’s future growth? Take a look at ourfree research report of analyst consensusfor 1193’s outlook. 2. Valuation: What is 1193 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 1193 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.
What You Must Know About China Resources Gas Group Limited's (HKG:1193) Financial Health Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! China Resources Gas Group Limited (HKG:1193), a large-cap worth HK$85b, comes to mind for investors seeking a strong and reliable stock investment. Most investors favour these big stocks due to their strong balance sheet and high market liquidity, meaning there are an abundance of stock in the public market available for trading. These firms won’t be left high and dry if liquidity dries up, and they will be relatively unaffected by rises in interest rates. Today I will analyse the latest financial data for 1193 to determine is solvency and liquidity and whether the stock is a sound investment. See our latest analysis for China Resources Gas Group Over the past year, 1193 has ramped up its debt from HK$12b to HK$13b , which accounts for long term debt. With this growth in debt, the current cash and short-term investment levels stands at HK$12b to keep the business going. Moreover, 1193 has produced cash from operations of HK$8.3b over the same time period, leading to an operating cash to total debt ratio of 66%, meaning that 1193’s debt is appropriately covered by operating cash. With current liabilities at HK$34b, the company may not have an easy time meeting these commitments with a current assets level of HK$25b, leading to a current ratio of 0.73x. The current ratio is calculated by dividing current assets by current liabilities. With debt at 40% of equity, 1193 may be thought of as appropriately levered. This range is considered safe as 1193 is not taking on too much debt obligation, which may be constraining for future growth. We can check to see whether 1193 is able to meet its debt obligations by looking at the net interest coverage ratio. Ideally, earnings before interest and tax (EBIT) should cover net interest by at least three times. For 1193, the ratio of 53.05x suggests that interest is amply covered. High interest coverage is seen as a responsible and safe practice, which highlights why most investors believe large-caps such as 1193 is a safe investment. 1193’s debt level is appropriate for a company its size. Furthermore, it is able to generate sufficient cash flow coverage, meaning it is able to put its debt in good use. But, its lack of liquidity raises questions over current asset management practices for the large-cap. This is only a rough assessment of financial health, and I'm sure 1193 has company-specific issues impacting its capital structure decisions. I recommend you continue to research China Resources Gas Group to get a better picture of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for 1193’s future growth? Take a look at ourfree research report of analyst consensusfor 1193’s outlook. 2. Valuation: What is 1193 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 1193 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.
If You Like EPS Growth Then Check Out BBMG (HKG:2009) Before It's Too Late Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! 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 the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. So if you're like me, you might be more interested in profitable, growing companies, likeBBMG(HKG:2009). 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. View our latest analysis for BBMG 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). That means EPS growth is considered a real positive by most successful long-term investors. As a tree reaches steadily for the sky, BBMG's EPS has grown 20% each year, compound, over three years. If the company can sustain that sort of growth, we'd expect shareholders to come away winners. Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. The good news is that BBMG is growing revenues, and EBIT margins improved by 4 percentage points to 12%, over the last year. That's great to see, on both counts. 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. You don't drive with your eyes on the rear-view mirror, so you might be more interested in thisfreereport showing analyst forecasts for BBMG'sfutureprofits. Like the kids in the streets standing up for their beliefs, insider share purchases give me reason to believe in a brighter future. That's because insider buying often indicates that those closest to the company have confidence that the share price will perform well. However, small purchases are not always indicative of conviction, and insiders don't always get it right. One shining light for BBMG is the serious outlay one insider has made to buy shares, in the last year. Specifically, in one large transaction Jieliang Ouyang paid HK$75m, for stock at HK$3.08 per share. Big insider buys like that are almost as rare as an ocean free of single use plastic waste. On top of the insider buying, it's good to see that BBMG insiders have a valuable investment in the business. Indeed, they have a glittering mountain of wealth invested in it, currently valued at CN¥835m. I would find that kind of skin in the game quite encouraging, if I owned shares, since it would ensure that the leaders of the company would also experience my success, or failure, with the stock. For growth investors like me, BBMG's raw rate of earnings growth is a beacon in the night. Better still, insiders own a large chunk of the company and one has even been buying more shares. So it's fair to say I think this stock may well deserve a spot on your watchlist. Of course, just because BBMG 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. As a growth investor I do like to see insider buying. But BBMG isn't the only one. You can see aa 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.
Should You Be Adding BBMG (HKG:2009) To Your Watchlist Today? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! 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 the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. So if you're like me, you might be more interested in profitable, growing companies, likeBBMG(HKG:2009). 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. Conversely, a loss-making company is yet to prove itself with profit, and eventually the sweet milk of external capital may run sour. See our latest analysis for BBMG 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. That makes EPS growth an attractive quality for any company. It certainly is nice to see that BBMG has managed to grow EPS by 20% per year over three years. If the company can sustain that sort of growth, we'd expect shareholders to come away winners. I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. The good news is that BBMG is growing revenues, and EBIT margins improved by 4 percentage points to 12%, 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. Click on the chart to see the exact numbers. In investing, as in life, the future matters more than the past. So why not check out thisfreeinteractive visualization of BBMG'sforecastprofits? Like the kids in the streets standing up for their beliefs, insider share purchases give me reason to believe in a brighter future. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. Of course, we can never be sure what insiders are thinking, we can only judge their actions. One shining light for BBMG is the serious outlay one insider has made to buy shares, in the last year. In one fell swoop, Jieliang Ouyang, spent HK$75m, at a price of HK$3.08 per share. It doesn't get much better than that, in terms of large investments from insiders. Along with the insider buying, another encouraging sign for BBMG is that insiders, as a group, have a considerable shareholding. Indeed, they have a glittering mountain of wealth invested in it, currently valued at CN¥835m. This suggests to me that leadership will be very mindful of shareholders' interests when making decisions! For growth investors like me, BBMG's raw rate of earnings growth is a beacon in the night. The cranberry sauce on the turkey is that insiders own a bunch of shares, and one has been buying more. So I do think this is one stock worth watching. Of course, just because BBMG 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. There are plenty of other companies that have insiders buying up shares. So if you like the sound of BBMG, you'll probably love thisfreelist of growing companies that insiders are buying. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
These Hedge Funds Dumped Perspecta Inc. (PRSP) At the Wrong Time At Insider Monkey we track the activity of some of the best-performing hedge funds like Appaloosa Management, Baupost, and Tiger Global because we determined that some of the stocks that they are collectively bullish on can help us generate returns above the broader indices. Out of thousands of stocks that hedge funds invest in, small-caps can provide the best returns over the long term due to the fact that these companies are less efficiently priced and are usually under the radars of mass-media, analysts and dumb money. This is why we follow the smart money moves in the small-cap space. Perspecta Inc. (NYSE:PRSP)shareholders have witnessed a decrease in activity from the world's largest hedge funds in recent months.PRSPwas in 34 hedge funds' portfolios at the end of the first quarter of 2019. There were 37 hedge funds in our database with PRSP holdings at the end of the previous quarter. Our calculations also showed that PRSP isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. We're going to take a look at the recent hedge fund action regarding Perspecta Inc. (NYSE:PRSP). Heading into the second quarter of 2019, a total of 34 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -8% from the fourth quarter of 2018. On the other hand, there were a total of 0 hedge funds with a bullish position in PRSP a year ago. So, let's review which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Maverick Capitalwas the largest shareholder of Perspecta Inc. (NYSE:PRSP), with a stake worth $159.8 million reported as of the end of March. Trailing Maverick Capital was Dorsal Capital Management, which amassed a stake valued at $77.8 million. Freshford Capital Management, Sunriver Management, and York Capital Management were also very fond of the stock, giving the stock large weights in their portfolios. Judging by the fact that Perspecta Inc. (NYSE:PRSP) has witnessed a decline in interest from the smart money, it's easy to see that there were a few hedgies who sold off their positions entirely heading into Q3. At the top of the heap, Phill Gross and Robert Atchinson'sAdage Capital Managementsold off the biggest position of all the hedgies monitored by Insider Monkey, valued at about $10.8 million in stock. Paul Singer's fund,Elliott Management, also said goodbye to its stock, about $8.8 million worth. These moves are interesting, as aggregate hedge fund interest was cut by 3 funds heading into Q3. Let's go over hedge fund activity in other stocks similar to Perspecta Inc. (NYSE:PRSP). These stocks are Ryder System, Inc. (NYSE:R), Qutoutiao Inc. (NASDAQ:QTT), Omnicell, Inc. (NASDAQ:OMCL), and Azul S.A. (NYSE:AZUL). All of these stocks' market caps are closest to PRSP's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position R,19,380483,0 QTT,5,6780,4 OMCL,15,78492,2 AZUL,12,151033,1 Average,12.75,154197,1.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 12.75 hedge funds with bullish positions and the average amount invested in these stocks was $154 million. That figure was $646 million in PRSP's case. Ryder System, Inc. (NYSE:R) is the most popular stock in this table. On the other hand Qutoutiao Inc. (NASDAQ:QTT) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Perspecta Inc. (NYSE:PRSP) is more popular among hedge funds even though some hedge funds sold out of the stock by the end of the first quarter. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Hedge funds were also right about betting on PRSP as the stock returned 16.5% during the same period and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Were Hedge Funds Right About Turning Bullish On Mohawk Industries, Inc. (MHK)? "Since 2006, value stocks (IVE vs IVW) have underperformed 11 of the 13 calendar years and when they beat growth, it wasn't by much. Cumulatively, through this week, it has been a 122% differential (up 52% for value vs up 174% for growth). This appears to be the longest and most severe drought for value investors since data collection began. It will go our way eventually as there are too many people paying far too much for today's darlings, both public and private. Further, the ten-year yield of 2.5% (pre-tax) isn't attractive nor is real estate. We believe the value part of the global equity market is the only place to earn solid risk adjusted returns and we believe those returns will be higher than normal," said Vilas Fund in itsQ1 investor letter. We aren't sure whether value stocks outperform growth, but we follow hedge fund investor letters to understand where the markets and stocks might be going. That's why we believe it would be worthwhile to take a look at the hedge fund sentiment on Mohawk Industries, Inc. (NYSE:MHK) in order to identify whether reputable and successful top money managers continue to believe in its potential. IsMohawk Industries, Inc. (NYSE:MHK)ready to rally soon? Investors who are in the know are taking a bullish view. The number of long hedge fund positions advanced by 2 recently. Our calculations also showed that MHK isn't among the30 most popular stocks among hedge funds.MHKwas in 34 hedge funds' portfolios at the end of the first quarter of 2019. There were 32 hedge funds in our database with MHK positions at the end of the previous quarter. To most stock holders, hedge funds are viewed as underperforming, outdated financial tools of years past. While there are over 8000 funds with their doors open at the moment, Our experts choose to focus on the leaders of this group, around 750 funds. It is estimated that this group of investors manage bulk of the smart money's total capital, and by monitoring their top equity investments, Insider Monkey has figured out many investment strategies that have historically beaten Mr. Market. Insider Monkey's flagship hedge fund strategy defeated the S&P 500 index by around 5 percentage points per year since its inception in May 2014 through June 18th. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 28.2% since February 2017 (through June 18th) even though the market was up nearly 30% during the same period. We just shared a list of 5 short targets in ourlatest quarterly updateand they are already down an average of 8.2% in a month whereas our long picks outperformed the market by 2.5 percentage points in this volatile 5 week period (our long picks also beat the market by 15 percentage points so far this year). We're going to check out the new hedge fund action encompassing Mohawk Industries, Inc. (NYSE:MHK). At Q1's end, a total of 34 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 6% from the previous quarter. By comparison, 37 hedge funds held shares or bullish call options in MHK a year ago. With hedgies' positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were adding to their stakes meaningfully (or already accumulated large positions). More specifically,Eagle Capital Managementwas the largest shareholder of Mohawk Industries, Inc. (NYSE:MHK), with a stake worth $579.2 million reported as of the end of March. Trailing Eagle Capital Management was First Pacific Advisors LLC, which amassed a stake valued at $206.8 million. Pzena Investment Management, D E Shaw, and Two Sigma Advisors were also very fond of the stock, giving the stock large weights in their portfolios. As aggregate interest increased, key hedge funds have been driving this bullishness.Pzena Investment Management, managed by Richard S. Pzena, assembled the most valuable position in Mohawk Industries, Inc. (NYSE:MHK). Pzena Investment Management had $172.2 million invested in the company at the end of the quarter. Ken Griffin'sCitadel Investment Groupalso initiated a $27.5 million position during the quarter. The other funds with brand new MHK positions are Martin D. Sass'sMD Sass, Ray Dalio'sBridgewater Associates, and C. Jonathan Gattman'sCloverdale Capital Management. Let's now review hedge fund activity in other stocks - not necessarily in the same industry as Mohawk Industries, Inc. (NYSE:MHK) but similarly valued. These stocks are CF Industries Holdings, Inc. (NYSE:CF), Henry Schein, Inc. (NASDAQ:HSIC), Huaneng Power International Inc (NYSE:HNP), and Levi Strauss & Co. (NYSE:LEVI). This group of stocks' market caps are closest to MHK's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CF,32,763506,-10 HSIC,22,1272395,-5 HNP,3,3019,0 LEVI,25,152159,25 Average,20.5,547770,2.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 20.5 hedge funds with bullish positions and the average amount invested in these stocks was $548 million. That figure was $1887 million in MHK's case. CF Industries Holdings, Inc. (NYSE:CF) is the most popular stock in this table. On the other hand Huaneng Power International Inc (NYSE:HNP) is the least popular one with only 3 bullish hedge fund positions. Compared to these stocks Mohawk Industries, Inc. (NYSE:MHK) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Hedge funds were also right about betting on MHK as the stock returned 18.2% during the same period and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Bitcoin Climbs Above 10,728.7 Level, Up 0.65% Investing.com - Bitcoin rose above the $10,728.7 threshold on Sunday. Bitcoin was trading at 10,728.7 by 00:59 (04:59 GMT) on the Investing.com Index, up 0.65% on the day. It was the largest one-day percentage gain since June 22. The move upwards pushed Bitcoin's market cap up to $190.7B, or 58.38% of the total cryptocurrency market cap. At its highest, Bitcoin's market cap was $241.2B. Bitcoin had traded in a range of $10,680.1 to $10,947.1 in the previous twenty-four hours. Over the past seven days, Bitcoin has seen a rise in value, as it gained 18.57%. The volume of Bitcoin traded in the twenty-four hours to time of writing was $26.1B or 29.46% of the total volume of all cryptocurrencies. It has traded in a range of $8,959.8076 to $11,160.4580 in the past 7 days. At its current price, Bitcoin is still down 46.01% from its all-time high of $19,870.62 set on December 17, 2017. Ethereum was last at $314.82 on the Investing.com Index, up 3.23% on the day. XRP was trading at $0.48030 on the Investing.com Index, a gain of 5.88%. Ethereum's market cap was last at $33.4B or 10.22% of the total cryptocurrency market cap, while XRP's market cap totaled $20.4B or 6.24% of the total cryptocurrency market value. Related Articles Ethereum Climbs Above 318.04 Level, Up 6% Will PwC’s New Software Solve the Cryptocurrency Auditing Problem? Price Analysis 22/06: BTC, ETH, XRP, LTC, BCH, EOS, BNB, BSV, XLM, ADA
The State of Working Dads ByStacy Pollack While85%of fathers wish they could be more involved in the lives of their newborns during the early months, less than50%of fathers take as much time as their country’s policy allows. This is often caused by social norms, financial pressures, and lack of support from their organizations. While we hear a lot aboutwomen in the workplace, the rights and struggles of working fathers are far less discussed and advocated for. To celebrate this Father’s Day, I interviewed working fathers across North America to talk more about what being a working father in 2019 has been like for them. Here’s what they had to say! Image source: Getty Images. When it comes to work-life balance, almost all working fathers emphasize the importance of time management. Parenthood has required them to make a mental shift toward being present with their families when they are not at work. Marcus Yco, head of North America, Waze Local says, “My perspective on work-life balance has become clearer as a working parent. Needing to reprioritize and be thoughtful about this balance has helped me to become a better leader.” Micheal Goldstein, chief revenue officer atTucows, says, “Before kids, I was less disciplined and would procrastinate. Parenthood is a lesson in time management that everyone can benefit from. If you say you’re going to stop working at 6:00 pm, you’ll find a way to do it if you work with intention. I’ve had to learn to be unapologetic about my schedule and boundaries. My goal is to only do one job at the time so I can give my kids my full attention. ” Dan Capoferri, senior manager at Tucows, recalls that,"Yearsago, whenI saw the parents at work leaving earlier to pick their children up from daycare, I thought it was unfair. After having kids of my own, I completely understand and empathize with them. Now, I strive to produce as much as I can within my allocated working hours, but disconnect from work completely when I’m home. I can still progress my career during my normal working hours without having to work constantly on evenings or weekends." Yco says that “Many things will change when you become a new father! Before I had children, I routinely worked evenings and weekends. Even after our first was born, I would leave for work before she woke up and come home well after she had gone to sleep. I realized I was missing out on my daughter’s life entirely and needed to reprioritize around my new family. Now I own mornings with my kids. I make sure that I come home before they go to bed so that I can say goodnight and spend a few hours with my wife.” Capoferri says that having kids has also helped him realize his potential for getting things done within working hours. He says, “I know that when I go home my phone is locked away in my bedroom and I’m spending time with my family. I need to accomplish all of my work before leaving the office. This has led me to become more productive, and has been an excellent upgrade." While these fathers seemed to have found a healthy balance,63%of fathers feel they spend too little time with their children, compared to35%of mothers who felt the same. Women often feel guilt around falling short in the many roles they take on. This is no unique feeling, as men express similar concerns. Goldstein says that he too has experienced times when he felt like he was doing everything inadequately. He says,“Comparing yourself as a parental unit to other parents is hard, especially when you’re both working and other parents are not. You feel like others are doing it better and are way ahead. As parents, there is implicit judgment from all ends.” There is still social stigma for men wanting to take a more active role in parenting their children. “When men take a more active role in their kid’s life, they are made to be seen as less ambitious or irresponsible as professionals. The ideas of what the gender roles should look like can shake people when you don’t fit as prescribed,” says Goldstein. Saad Bellafquih,founder and manager of a management consulting firm,says that while he sees improvements in societal expectations and standards, he doesn’t feel like there is full equality yet, especially with “the perception of a man taking time off to take care of their family.” Alan Zel, president and CEO of Zel Human Capital, says, “We have redefined what it means to have it all. Men can suffer from feeling like they have missed out on raising their children because they had to work.” Bellafquih explains that whether you are the mother, or the father, you have the same 24 hours in a day, and whatever area you put focus on will force you to sacrifice elsewhere. He says, "What’s important is to acknowledge that the path we choose is our own.” In regard to taking time off for paternity leave, Capoferri says, “I felt as though people were looking at me "sideways," wondering why I deserved to take time off…even going as far as to comment '…if working dads can take time off for paternity leave, what about those who choose not to have children?' People would make me feel that this time away with my family was undeserved.” While today’s fathersaspire to be more involved with their families than ever before,men who interrupt their employment for family reasonsearn significantly lessafter returning to work.Whiletoday’s fathers spendthree timesas much time with their children andtwice as much time on housework than previous generations,the stigma still exists. When it comes to supporting their spouses, Zel says to “listen, observe, and don’t make assumptions about what your partner needs. Ask questions and try to really understand and hear what their experience is like!” Yco says, “I am incredibly lucky to have a partner that I can talk through my career with. My wife is an equal in decision-making when it comes to my career and how it may impact our family. Tactically, taking on more at home in spurts allows us each enough coverage when career responsibilities spill into the home/family routine.” Goldstein says, “Constant communication, and taking as much pride and being invested in their career as you are your own is important. When you can help your spouse’s career, that should feel like a win in your career, because you’re a team.” Capoferri says, “Give them breaks when they need them. Giving your spouse time to themselves to unwind and focus on something other than children is one of the greatest gifts you can provide.” What they all agreed on was that parenting is a team effort, in which both parents must share the responsibilities. With Father's Day upon us, make sure you give thanks to your working fathers for all their support and sacrifices! [In part two of this article, we’ll discuss what it was like for fathers to take their paternity leaves, and what organizations can do to help make things easier for working parents.] This articleoriginally appearedon Glassdoor.com. More From The Motley Fool • 10 Best Stocks to Buy Today • The $16,728 Social Security Bonus You Cannot Afford to Miss • 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) • What Is an ETF? • 5 Recession-Proof Stocks • How to Beat the Market Glassdoorhas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tucows. The Motley Fool has adisclosure policy.
Is There An Opportunity With China BlueChemical Ltd.'s (HKG:3983) 49% Undervaluation? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Does the June share price for China BlueChemical Ltd. (HKG:3983) 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. I will be using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward. 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 China BlueChemical 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. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: [{"": "Levered FCF (CN\u00a5, Millions)", "2019": "CN\u00a51.12k", "2020": "CN\u00a51.12k", "2021": "CN\u00a51.28k", "2022": "CN\u00a51.21k", "2023": "CN\u00a51.17k", "2024": "CN\u00a51.15k", "2025": "CN\u00a51.14k", "2026": "CN\u00a51.14k", "2027": "CN\u00a51.15k", "2028": "CN\u00a51.16k"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x1", "2020": "Analyst x1", "2021": "Analyst x1", "2022": "Est @ -5.59%", "2023": "Est @ -3.31%", "2024": "Est @ -1.72%", "2025": "Est @ -0.6%", "2026": "Est @ 0.18%", "2027": "Est @ 0.73%", "2028": "Est @ 1.11%"}, {"": "Present Value (CN\u00a5, Millions) Discounted @ 8.12%", "2019": "CN\u00a51.03k", "2020": "CN\u00a5960.70", "2021": "CN\u00a51.01k", "2022": "CN\u00a5883.71", "2023": "CN\u00a5790.30", "2024": "CN\u00a5718.41", "2025": "CN\u00a5660.48", "2026": "CN\u00a5612.00", "2027": "CN\u00a5570.16", "2028": "CN\u00a5533.21"}] Present Value of 10-year Cash Flow (PVCF)= CN¥7.77b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 2%. We discount the terminal cash flows to today's value at a cost of equity of 8.1%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = CN¥1.2b × (1 + 2%) ÷ (8.1% – 2%) = CN¥19b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= CN¥CN¥19b ÷ ( 1 + 8.1%)10= CN¥8.90b 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 CN¥16.67b. 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¥3.62. However, 3983’s primary listing is in China, and 1 share of 3983 in CNY represents 1.137 ( CNY/ HKD) share of SEHK:3983,so the intrinsic value per share in HKD is HK$4.11.Relative to the current share price of HK$2.11, the company appears quite undervalued at a 49% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at China BlueChemical as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.1%, which is based on a levered beta of 1.026. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Whilst important, DCF calculation shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For China BlueChemical, I've compiled three further factors you should look at: 1. Financial Health: Does 3983 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 3983'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 3983? 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.
Hedge Funds Soured On Qurate Retail, Inc. (QRTEA) At The Right Time With the first-quarter round of 13F filings behind us it is time to take a look at the stocks in which some of the best money managers in the world preferred to invest or sell heading into the second quarter. One of these stocks was Qurate Retail, Inc. (NASDAQ:QRTEA). Qurate Retail, Inc. (NASDAQ:QRTEA)investors should be aware of a decrease in activity from the world's largest hedge funds of late. Our calculations also showed that QRTEA isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. We're going to take a peek at the recent hedge fund action surrounding Qurate Retail, Inc. (NASDAQ:QRTEA). At Q1's end, a total of 33 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -6% from the fourth quarter of 2018. On the other hand, there were a total of 34 hedge funds with a bullish position in QRTEA a year ago. With hedgies' sentiment swirling, there exists an "upper tier" of notable hedge fund managers who were increasing their stakes meaningfully (or already accumulated large positions). According to Insider Monkey's hedge fund database, Bob Peck and Andy Raab'sFPR Partnershas the most valuable position in Qurate Retail, Inc. (NASDAQ:QRTEA), worth close to $218.8 million, amounting to 5.3% of its total 13F portfolio. The second largest stake is held by Thomas Bancroft ofMakaira Partners, with a $112 million position; the fund has 13.1% of its 13F portfolio invested in the stock. Remaining members of the smart money that are bullish include Cliff Asness'sAQR Capital Management, Peter Rathjens, Bruce Clarke and John Campbell'sArrowstreet Capitaland Charles de Vaulx'sInternational Value Advisers. Seeing as Qurate Retail, Inc. (NASDAQ:QRTEA) has witnessed a decline in interest from the entirety of the hedge funds we track, logic holds that there is a sect of hedge funds who sold off their positions entirely in the third quarter. At the top of the heap, Dmitry Balyasny'sBalyasny Asset Managementsaid goodbye to the largest investment of the "upper crust" of funds tracked by Insider Monkey, valued at about $29.2 million in stock, and Zachary Miller's Parian Global Management was right behind this move, as the fund dropped about $13.4 million worth. These transactions are important to note, as total hedge fund interest was cut by 2 funds in the third quarter. Let's also examine hedge fund activity in other stocks similar to Qurate Retail, Inc. (NASDAQ:QRTEA). These stocks are Five Below Inc (NASDAQ:FIVE), Teradyne, Inc. (NASDAQ:TER), Alaska Air Group, Inc. (NYSE:ALK), and Capri Holdings Limited (NYSE:CPRI). This group of stocks' market caps match QRTEA's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position FIVE,38,487778,6 TER,24,564379,-1 ALK,20,466021,-12 CPRI,37,1222168,4 Average,29.75,685087,-0.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 29.75 hedge funds with bullish positions and the average amount invested in these stocks was $685 million. That figure was $726 million in QRTEA's case. Five Below Inc (NASDAQ:FIVE) is the most popular stock in this table. On the other hand Alaska Air Group, Inc. (NYSE:ALK) is the least popular one with only 20 bullish hedge fund positions. Qurate Retail, Inc. (NASDAQ:QRTEA) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately QRTEA wasn't nearly as popular as these 20 stocks and hedge funds that were betting on QRTEA were disappointed as the stock returned -20% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
UPDATE 1-North Korea's Kim says will consider letter received from Trump (Adds White House not responding with comment) June 22 (Reuters) - North Korean leader Kim Jong Un received a personal letter from U.S. President Donald Trump and will put serious thought into its content, North Korea's state-run news agency KCNA said. In a report published early on Sunday in Asia, KCNA did not give details on the letter, but said Kim described it as "of excellent content." "Kim Jong Un said that he would seriously contemplate the interesting content," the report said. White House officials did not immediately respond to a request for comment. U.S.-North Korea talks have been stalled since a failed summit in February between Trump and the North Korean leader in Hanoi, Vietnam. A U.S. official said on Wednesday the United States had no pre-conditions for new talks, but that progress would require meaningful and verifiable North Korean steps to abandon its nuclear weapons program. Trump is due to visit South Korea next week for meetings with South Korean President Moon Jae-in after taking part in the G20 meetings in Japan. (Reporting by Jason Lange in Washington; editing by Daniel Wallis and G Crosse)
Why We’re Not Keen On Regal Hotels International Holdings Limited’s (HKG:78) 2.2% Return On Capital Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we are going to look at Regal Hotels International Holdings Limited (HKG:78) to see whether it might be an attractive investment prospect. To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. First of all, we'll work out how to calculate ROCE. Second, we'll look at its ROCE compared to similar companies. And finally, we'll look at how its current liabilities are impacting its ROCE. ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business. In general, businesses with a higher ROCE are usually better quality. Overall, it is a valuable metric that has its flaws. Renowned investment researcher Michael Mauboussinhas suggestedthat a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'. Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Regal Hotels International Holdings: 0.022 = HK$673m ÷ (HK$32b - HK$1.7b) (Based on the trailing twelve months to December 2018.) Therefore,Regal Hotels International Holdings has an ROCE of 2.2%. See our latest analysis for Regal Hotels International Holdings ROCE can be useful when making comparisons, such as between similar companies. We can see Regal Hotels International Holdings's ROCE is meaningfully below the Hospitality industry average of 5.7%. This performance could be negative if sustained, as it suggests the business may underperform its industry. Independently of how Regal Hotels International Holdings compares to its industry, its ROCE in absolute terms is low; especially compared to the ~2.0% available in government bonds. There are potentially more appealing investments elsewhere. In our analysis, Regal Hotels International Holdings's ROCE appears to be 2.2%, compared to 3 years ago, when its ROCE was 1.5%. This makes us think about whether the company has been reinvesting shrewdly. When considering ROCE, bear in mind that it reflects the past and does not necessarily predict the future. ROCE can be deceptive for cyclical businesses, as returns can look incredible in boom times, and terribly low in downturns. ROCE is only a point-in-time measure. How cyclical is Regal Hotels International Holdings? You can see for yourself by looking at thisfreegraph of past earnings, revenue and cash flow. Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE. To check the impact of this, we calculate if a company has high current liabilities relative to its total assets. Regal Hotels International Holdings has total liabilities of HK$1.7b and total assets of HK$32b. Therefore its current liabilities are equivalent to approximately 5.3% of its total assets. Regal Hotels International Holdings has very few current liabilities, which have a minimal effect on its already low ROCE. Nevertheless, there are potentially more attractive companies to invest in. You might be able to find a better investment than Regal Hotels International Holdings. If you want a selection of possible winners, check out thisfreelist of interesting companies that trade on a P/E below 20 (but have proven they can grow earnings). If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them). 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 Ocean One Holding Ltd. (HKG:8476) 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! Attractive stocks have exceptional fundamentals. In the case of Ocean One Holding Ltd. ( HKG:8476 ), there's 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. If you're interested in understanding beyond my broad commentary, take a look at the report on Ocean One Holding here . Excellent balance sheet and good value 8476's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that 8476 manages its cash and cost levels well, which is a key determinant of the company’s health. 8476's has produced operating cash levels of 1.17x total debt over the past year, which implies that 8476's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. 8476 is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. Investors have the opportunity to buy into the stock to reap capital gains, if 8476's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, 8476's share price is trading below the group's average. This supports the theory that 8476 is potentially underpriced. SEHK:8476 Price Estimation Relative to Market, June 23rd 2019 Next Steps: For Ocean One Holding, I've put together three key factors you should further examine: Future Outlook : What are well-informed industry analysts predicting for 8476’s future growth? Take a look at our free research report of analyst consensus for 8476’s outlook. Historical Performance : What has 8476'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 8476? 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.
Hedge Funds Piled On This Stock Right Before Its 30% Surge The first quarter was a breeze as Powell pivoted, and China seemed eager to reach a deal with Trump. Both the S&P 500 and Russell 2000 delivered very strong gains as a result, with the Russell 2000, which is composed of smaller companies, outperforming the large-cap stocks slightly during the first quarter. Unfortunately sentiment shifted in May as this time China pivoted and Trump put more pressure on China by increasing tariffs. Hedge funds' top 20 stock picks performed spectacularly in this volatile environment. These stocks delivered a total gain of 18.7% through May 30th, vs. a gain of 12.1% for the S&P 500 ETF. In this article we will look at how this market volatility affected the sentiment of hedge funds towards Zillow Group Inc (NASDAQ:Z), and what that likely means for the prospects of the company and its stock. IsZillow Group Inc (NASDAQ:Z)going to take off soon? The smart money is buying. The number of bullish hedge fund positions advanced by 10 lately. Valiant Capital's Chris Hansen pitched Zillow as a long investment in early May 2019 at this year'sSohn Conference. It is very likely that we will see another round of increases in the number of hedge funds with Zillow positions heading into Q3. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Let's check out the new hedge fund action surrounding Zillow Group Inc (NASDAQ:Z). Heading into the second quarter of 2019, a total of 33 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 43% from the fourth quarter of 2018. By comparison, 25 hedge funds held shares or bullish call options in Z a year ago. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves. The largest stake in Zillow Group Inc (NASDAQ:Z) was held bySRS Investment Management, which reported holding $153 million worth of stock at the end of March. It was followed by Valiant Capital with a $121.6 million position. Other investors bullish on the company included Valiant Capital, Ancient Art (Teton Capital), and Slate Path Capital. As aggregate interest increased, specific money managers have been driving this bullishness.Slate Path Capital, managed by David Greenspan, assembled the biggest position in Zillow Group Inc (NASDAQ:Z). Slate Path Capital had $34.7 million invested in the company at the end of the quarter. Steve Cohen'sPoint72 Asset Managementalso made a $22.8 million investment in the stock during the quarter. The following funds were also among the new Z investors: Howard Marks'sOaktree Capital Management, Howard Marks'sOaktree Capital Management, and Steve Cohen'sPoint72 Asset Management. Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as Zillow Group Inc (NASDAQ:Z) but similarly valued. These stocks are Tripadvisor Inc (NASDAQ:TRIP), Columbia Sportswear Company (NASDAQ:COLM), Roku, Inc. (NASDAQ:ROKU), and Cimarex Energy Co (NYSE:XEC). This group of stocks' market caps are similar to Z's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position TRIP,27,1354971,-2 COLM,32,359364,8 ROKU,33,505452,7 XEC,30,1100137,2 Average,30.5,829981,3.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 30.5 hedge funds with bullish positions and the average amount invested in these stocks was $830 million. That figure was $623 million in Z's case. Roku, Inc. (NASDAQ:ROKU) is the most popular stock in this table. On the other hand Tripadvisor Inc (NASDAQ:TRIP) is the least popular one with only 27 bullish hedge fund positions. Zillow Group Inc (NASDAQ:Z) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Hedge funds were also right about betting on Z as the stock returned 30.7% during the same period and outperformed the market by an even larger margin. Hedge funds were rewarded for their relative bullishness (Interestingly, hedge funds' favorite stock in this group, Roku,performed even betterthan Zillow since the end of Q1). Disclosure: None. This article was originally published atInsider Monkey. 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Here is What Hedge Funds Really Think About Tempur Sealy International (TPX) At Insider Monkey we follow nearly 750 of the best-performing investors and even though many of them lost money in the last couple of months of 2018 (some actually delivered very strong returns), the history teaches us that over the long-run they still manage to beat the market, which is why it can be profitable for us to imitate their activity. Of course, even the best money managers can sometimes get it wrong, but following some of their picks gives us a better chance to outperform the crowd than picking a random stock and this is where our research comes in. Tempur Sealy International Inc. (NYSE:TPX)was in 29 hedge funds' portfolios at the end of the first quarter of 2019. TPX has seen a decrease in support from the world's most elite money managers recently. There were 31 hedge funds in our database with TPX holdings at the end of the previous quarter. Our calculations also showed that TPX isn't among the30 most popular stocks among hedge funds. However, we need to compare these numbers to other similarly valued stocks' statistics to understand what hedge funds really think about TPX> Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. We're going to take a look at the recent hedge fund action surrounding Tempur Sealy International Inc. (NYSE:TPX). At the end of the first quarter, a total of 29 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -6% from the fourth quarter of 2018. The graph below displays the number of hedge funds with bullish position in TPX over the last 15 quarters. With hedge funds' positions undergoing their usual ebb and flow, there exists an "upper tier" of noteworthy hedge fund managers who were adding to their holdings considerably (or already accumulated large positions). The largest stake in Tempur Sealy International Inc. (NYSE:TPX) was held byH Partners Management, which reported holding $461.4 million worth of stock at the end of March. It was followed by Route One Investment Company with a $246.5 million position. Other investors bullish on the company included Centerbridge Partners, Manor Road Capital Partners, and Scopus Asset Management. Because Tempur Sealy International Inc. (NYSE:TPX) has experienced a decline in interest from the aggregate hedge fund industry, it's easy to see that there lies a certain "tier" of fund managers that slashed their full holdings by the end of the third quarter. At the top of the heap, Steven Boyd'sArmistice Capitalsold off the biggest stake of the 700 funds tracked by Insider Monkey, comprising an estimated $34.1 million in stock, and Derek C. Schrier's Indaba Capital Management was right behind this move, as the fund said goodbye to about $25.8 million worth. These moves are intriguing to say the least, as total hedge fund interest was cut by 2 funds by the end of the third quarter. Let's go over hedge fund activity in other stocks - not necessarily in the same industry as Tempur Sealy International Inc. (NYSE:TPX) but similarly valued. We will take a look at Envestnet Inc (NYSE:ENV), UMB Financial Corporation (NASDAQ:UMBF), Energizer Holdings, Inc. (NYSE:ENR), and Urban Outfitters, Inc. (NASDAQ:URBN). This group of stocks' market caps resemble TPX's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ENV,17,104260,5 UMBF,9,49060,-2 ENR,24,254116,3 URBN,25,415387,-3 Average,18.75,205706,0.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 18.75 hedge funds with bullish positions and the average amount invested in these stocks was $206 million. That figure was $1176 million in TPX's case. Urban Outfitters, Inc. (NASDAQ:URBN) is the most popular stock in this table. On the other hand UMB Financial Corporation (NASDAQ:UMBF) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Tempur Sealy International Inc. (NYSE:TPX) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Hedge funds were also right about betting on TPX as the stock returned 24.9% during the same period and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations. Disclosure: None. This article was originally published atInsider Monkey. 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Why Ocean One Holding Ltd. (HKG:8476) Is An Attractive Investment To Consider Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Ocean One Holding Ltd. (HKG:8476), it is a company that has been able to sustain great financial health, trading at an attractive share price. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, take a look at thereport on Ocean One Holding here. 8476's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. 8476 appears to have made good use of debt, producing operating cash levels of 1.17x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. 8476's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of 8476's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, 8476's share price is trading below the group's average. This supports the theory that 8476 is potentially underpriced. For Ocean One Holding, I've compiled three key aspects you should look at: 1. Future Outlook: What are well-informed industry analysts predicting for 8476’s future growth? Take a look at ourfree research report of analyst consensusfor 8476’s outlook. 2. Historical Performance: What has 8476's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of 8476? 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.
Hedge Funds Are Betting On Scientific Games Corp (SGMS) Many investors, including Paul Tudor Jones or Stan Druckenmiller, have beensayingbefore the Q4 market crash that the stock market is overvalued due to a low interest rate environment that leads to companies swapping their equity for debt and focusing mostly on short-term performance such as beating the quarterly earnings estimates. In the first quarter, most investors recovered all of their Q4 losses as sentiment shifted and optimism dominated the US China trade negotiations. Nevertheless, many of the stocks that delivered strong returns in the first quarter still sport strong fundamentals and their gains were more related to the general market sentiment rather than their individual performance and hedge funds kept their bullish stance. In this article we will find out how hedge fund sentiment to Scientific Games Corp (NASDAQ:SGMS) changed recently. IsScientific Games Corp (NASDAQ:SGMS)the right investment to pursue these days? Hedge funds are getting more optimistic. The number of bullish hedge fund bets advanced by 2 in recent months. Our calculations also showed that SGMS isn't among the30 most popular stocks among hedge funds. To most market participants, hedge funds are seen as slow, old investment tools of yesteryear. While there are over 8000 funds with their doors open at the moment, We choose to focus on the top tier of this group, around 750 funds. These hedge fund managers handle bulk of all hedge funds' total asset base, and by following their top equity investments, Insider Monkey has brought to light a number of investment strategies that have historically exceeded the market. Insider Monkey's flagship hedge fund strategy outpaced the S&P 500 index by around 5 percentage points per year since its inception in May 2014 through June 18th. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 28.2% since February 2017 (through June 18th) even though the market was up nearly 30% during the same period. We just shared a list of 5 short targets in ourlatest quarterly updateand they are already down an average of 8.2% in a month whereas our long picks outperformed the market by 2.5 percentage points in this volatile 5 week period (our long picks also beat the market by 15 percentage points so far this year). We're going to take a peek at the new hedge fund action regarding Scientific Games Corp (NASDAQ:SGMS). At the end of the first quarter, a total of 28 of the hedge funds tracked by Insider Monkey were long this stock, a change of 8% from the fourth quarter of 2018. The graph below displays the number of hedge funds with bullish position in SGMS over the last 15 quarters. With the smart money's positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were upping their stakes considerably (or already accumulated large positions). Among these funds,Fine Capital Partnersheld the most valuable stake in Scientific Games Corp (NASDAQ:SGMS), which was worth $179.4 million at the end of the first quarter. On the second spot was Sylebra Capital Management which amassed $176 million worth of shares. Moreover, Nantahala Capital Management, Whale Rock Capital Management, and Jericho Capital Asset Management were also bullish on Scientific Games Corp (NASDAQ:SGMS), allocating a large percentage of their portfolios to this stock. As industrywide interest jumped, specific money managers were leading the bulls' herd.Jericho Capital Asset Management, managed by Josh Resnick, created the largest position in Scientific Games Corp (NASDAQ:SGMS). Jericho Capital Asset Management had $42.2 million invested in the company at the end of the quarter. Israel Englander'sMillennium Managementalso initiated a $10.5 million position during the quarter. The following funds were also among the new SGMS investors: Peter Rathjens, Bruce Clarke and John Campbell'sArrowstreet Capital, Chuck Royce'sRoyce & Associates, and Matthew Tewksbury'sStevens Capital Management. Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as Scientific Games Corp (NASDAQ:SGMS) but similarly valued. These stocks are Anixter International Inc. (NYSE:AXE), Seaspan Corporation (NYSE:SSW), Bloomin' Brands Inc (NASDAQ:BLMN), and Trinseo S.A. (NYSE:TSE). This group of stocks' market caps are closest to SGMS's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position AXE,23,258461,9 SSW,9,683349,-3 BLMN,24,299227,2 TSE,19,98278,3 Average,18.75,334829,2.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 18.75 hedge funds with bullish positions and the average amount invested in these stocks was $335 million. That figure was $605 million in SGMS's case. Bloomin' Brands Inc (NASDAQ:BLMN) is the most popular stock in this table. On the other hand Seaspan Corporation (NYSE:SSW) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Scientific Games Corp (NASDAQ:SGMS) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately SGMS wasn't nearly as popular as these 20 stocks and hedge funds that were betting on SGMS were disappointed as the stock returned -0.5% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Why Straco Corporation Limited (SGX:S85) Could Be Your Next Investment Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Attractive stocks have exceptional fundamentals. In the case of Straco Corporation Limited (SGX:S85), 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. For those interested in understanding where the figures come from and want to see the analysis, read the fullreport on Straco here. S85 delivered a bottom-line expansion of 10% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did S85 outperformed its past performance, its growth also surpassed the Hospitality industry expansion, which generated a -11% earnings growth. This paints a buoyant picture for the company. S85'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 suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. S85 appears to have made good use of debt, producing operating cash levels of 0.84x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. For Straco, there are three fundamental factors you should look at: 1. Future Outlook: What are well-informed industry analysts predicting for S85’s future growth? Take a look at ourfree research report of analyst consensusfor S85’s outlook. 2. Valuation: What is S85 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 S85 is currently mispriced by the market. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of S85? 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.
Jeopardy star James Holzhauer to play World Series of Poker James Holzhauer is suddenly $2,464,216 richer after the “Jeopardy!” win streak that captivated the nation . Now, the 34-year-old is going for even more money at home in Las Vegas. From ‘Jeopardy!’ to the World Series of Poker Holzhauer is set to participate in two events at the World Series of Poker on Monday, according to the Las Vegas Review-Journal . First, he’ll compete in the $1,500 buy-in No-Limit Hold’em Super Turbo Bounty on Monday morning. Hours later, he’ll enter the $1,000 buy-in Tag Team No-Limit Hold’em event. Despite his “Jeopardy!” riches, Holzhauer apparently won’t even be paying his own buy-ins thanks to his tag team partner, Poker Hall of Famer Mike Sexton: “I decided to enter because Mike Sexton contacted me and offered to sponsor my buy-ins. I don’t have any plans to enter another WSOP event beyond those two,” Holzhauer told the Review-Journal in an email. “I played online poker semi-professionally in the early 2000s, but I don’t intend to make a career of it now, as I’m sure I wouldn’t be good enough at it to justify forgoing other opportunities.” Holzhauer reportedly plans to donate 50 percent of any winnings to charity, one of which may be a pancreatic cancer cause given his past donations in support of "Jeopardy!" host Alex Trebek . James Holzhauer is no poker novice. (Bruce Bennett/Getty Images) Even though Holzhauer is known for excelling in “Jeopardy!” to a historic degree and previously paid his bills as a professional sports gambler, the Illinois native is no novice when it comes to poker. He once joked that he “majored in online poker” at the University of Illinois, though Holzhauer told the Review-Journal that he hasn’t played big-stakes poker since the federal government cracked down on illegal internet poker sites in 2011: “I stopped playing online poker due to a combination of the UIGEA legislation and realizing that I could make more money with less effort by betting sports,” he said. “Honestly, my poker skills are so rusty that my main goal is to get lucky.” Story continues We’re going to go ahead and guess Holzhauer’s definition of “lucky” is similar to what he used to find those Daily Doubles. With him, there’s always some math involved. More from Yahoo Sports: Yankees can win without Judge, but they do need depth Phillies’ Harper fails to make list of All-Star finalists Curry: Stakes of next presidential election are ‘extremely high’ USWNT has tough lineup questions as knockout stage begins
Hedge Funds Have Never Been This Bullish On Uniqure NV (QURE) "Since 2006, value stocks (IVE vs IVW) have underperformed 11 of the 13 calendar years and when they beat growth, it wasn't by much. Cumulatively, through this week, it has been a 122% differential (up 52% for value vs up 174% for growth). This appears to be the longest and most severe drought for value investors since data collection began. It will go our way eventually as there are too many people paying far too much for today's darlings, both public and private. Further, the ten-year yield of 2.5% (pre-tax) isn't attractive nor is real estate. We believe the value part of the global equity market is the only place to earn solid risk adjusted returns and we believe those returns will be higher than normal," said Vilas Fund in itsQ1 investor letter. We aren't sure whether value stocks outperform growth, but we follow hedge fund investor letters to understand where the markets and stocks might be going. That's why we believe it would be worthwhile to take a look at the hedge fund sentiment on Uniqure NV (NASDAQ:QURE) in order to identify whether reputable and successful top money managers continue to believe in its potential. Uniqure NV (NASDAQ:QURE)investors should pay attention to a huge increase in hedge fund interest in recent months. Overall hedge fund sentiment towards QURE is now at its all time high. This is usually a bullish signal. We observed this in other stocks likeRoku,DisneyandWorldpay. Roku returned 45%, Disney outperformed the market by 20 percentage points whereas Worldpay beat it by 6 points. Today there are dozens of gauges shareholders can use to assess their stock investments. A couple of the less known gauges are hedge fund and insider trading interest. Our researchers have shown that, historically, those who follow the top picks of the best hedge fund managers can beat the broader indices by a healthy margin (see the details here). We're going to analyze the latest hedge fund action surrounding Uniqure NV (NASDAQ:QURE). At the end of the first quarter, a total of 28 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 65% from one quarter earlier. On the other hand, there were a total of 16 hedge funds with a bullish position in QURE a year ago. With the smart money's positions undergoing their usual ebb and flow, there exists an "upper tier" of noteworthy hedge fund managers who were increasing their holdings substantially (or already accumulated large positions). Among these funds,Consonance Capital Managementheld the most valuable stake in Uniqure NV (NASDAQ:QURE), which was worth $118.4 million at the end of the first quarter. On the second spot was Nantahala Capital Management which amassed $90.6 million worth of shares. Moreover, Redmile Group, Nantahala Capital Management, and 683 Capital Partners were also bullish on Uniqure NV (NASDAQ:QURE), allocating a large percentage of their portfolios to this stock. As one would reasonably expect, key hedge funds have been driving this bullishness.Partner Fund Management, managed by Christopher James, initiated the most valuable position in Uniqure NV (NASDAQ:QURE). Partner Fund Management had $24.9 million invested in the company at the end of the quarter. James A. Silverman'sOpaleye Managementalso initiated a $12.2 million position during the quarter. The other funds with new positions in the stock are Albert Cha and Frank Kung'sVivo Capital, Jim Simons'sRenaissance Technologies, and Richard Mashaal'sRima Senvest Management. Let's now review hedge fund activity in other stocks - not necessarily in the same industry as Uniqure NV (NASDAQ:QURE) but similarly valued. We will take a look at Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB), Yext, Inc. (NYSE:YEXT), Jagged Peak Energy Inc. (NYSE:JAG), and Wingstop Inc (NASDAQ:WING). This group of stocks' market valuations are closest to QURE's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position OMAB,6,55473,1 YEXT,23,203477,10 JAG,12,133102,2 WING,24,246752,3 Average,16.25,159701,4 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 16.25 hedge funds with bullish positions and the average amount invested in these stocks was $160 million. That figure was $530 million in QURE's case. Wingstop Inc (NASDAQ:WING) is the most popular stock in this table. On the other hand Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Uniqure NV (NASDAQ:QURE) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Hedge funds were also right about betting on QURE as the stock returned 29.8% during the same period and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here is What Hedge Funds Really Think About Sinclair Broadcast Group (SBGI) Legendary investors such as Jeffrey Talpins and Seth Klarman earn enormous amounts of money for themselves and their investors by doing in-depth research on small-cap stocks that big brokerage houses don't publish. Small cap stocks -especially when they are screened well- can generate substantial outperformance versus a boring index fund. That's why we analyze the activity of those elite funds in these small-cap stocks. In the following paragraphs, we analyze Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) from the perspective of those elite funds. IsSinclair Broadcast Group, Inc. (NASDAQ:SBGI)a healthy stock for your portfolio? Investors who are in the know are taking a bearish view. The number of bullish hedge fund positions went down by 5 in recent months. Our calculations also showed that SBGI isn't among the30 most popular stocks among hedge funds.SBGIwas in 28 hedge funds' portfolios at the end of the first quarter of 2019. There were 33 hedge funds in our database with SBGI holdings at the end of the previous quarter. At the moment there are many methods stock traders have at their disposal to evaluate publicly traded companies. A pair of the most useful methods are hedge fund and insider trading signals. Our researchers have shown that, historically, those who follow the top picks of the top money managers can outclass the S&P 500 by a superb margin (see the details here). We're going to take a look at the recent hedge fund action regarding Sinclair Broadcast Group, Inc. (NASDAQ:SBGI). At the end of the first quarter, a total of 28 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -15% from the fourth quarter of 2018. On the other hand, there were a total of 36 hedge funds with a bullish position in SBGI a year ago. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves. Of the funds tracked by Insider Monkey, Jim Simons'sRenaissance Technologieshas the most valuable position in Sinclair Broadcast Group, Inc. (NASDAQ:SBGI), worth close to $123.9 million, comprising 0.1% of its total 13F portfolio. On Renaissance Technologies's heels isBaupost Group, led by Seth Klarman, holding a $111.9 million position; 0.9% of its 13F portfolio is allocated to the company. Remaining peers with similar optimism encompass William C. Martin'sRaging Capital Management, Edward Goodnow'sGoodnow Investment Groupand Ken Griffin'sCitadel Investment Group. Due to the fact that Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) has faced falling interest from the entirety of the hedge funds we track, logic holds that there was a specific group of hedge funds who were dropping their positions entirely heading into Q3. Interestingly, William C. Martin'sRaging Capital Managementsold off the biggest position of the "upper crust" of funds watched by Insider Monkey, valued at about $21.1 million in stock. Vasan Kesavan, Srikumar Kesavan and Sandeep Ramesh's fund,Meghalaya Partners, also cut its stock, about $10.8 million worth. These transactions are important to note, as total hedge fund interest dropped by 5 funds heading into Q3. Let's now take a look at hedge fund activity in other stocks similar to Sinclair Broadcast Group, Inc. (NASDAQ:SBGI). These stocks are Associated Banc Corp (NYSE:ASB), Hancock Whitney Corporation (NASDAQ:HWC), First Hawaiian, Inc. (NASDAQ:FHB), and Allogene Therapeutics, Inc. (NASDAQ:ALLO). This group of stocks' market values are similar to SBGI's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ASB,16,216472,-2 HWC,15,112402,0 FHB,23,384375,2 ALLO,8,120844,-2 Average,15.5,208523,-0.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 15.5 hedge funds with bullish positions and the average amount invested in these stocks was $209 million. That figure was $497 million in SBGI's case. First Hawaiian, Inc. (NASDAQ:FHB) is the most popular stock in this table. On the other hand Allogene Therapeutics, Inc. (NASDAQ:ALLO) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Hedge funds were also right about betting on SBGI as the stock returned 37.9% during the same period and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Shanghai Industrial Holdings Limited (HKG:363): What Does The Future Look Like? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Looking at Shanghai Industrial Holdings Limited's (HKG:363) earnings update in December 2018, analysts seem fairly confident, as a 5.4% increase in profits is expected in the upcoming year, relative to the past 5-year average growth rate of 4.0%. With trailing-twelve-month net income at current levels of HK$3.3b, we should see this rise to HK$3.5b in 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Shanghai Industrial Holdings in the longer term. Readers that are interested in understanding the company beyond these figures shouldresearch its fundamentals here. Check out our latest analysis for Shanghai Industrial Holdings Longer term expectations from the 3 analysts covering 363’s stock is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. 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 HK$3.3b and the final forecast of HK$4.0b by 2022, the annual rate of growth for 363’s earnings is 6.5%. EPS reaches HK$3.8 in the final year of forecast compared to the current HK$3.07 EPS today. In 2022, 363's profit margin will have expanded from 11% to 16%. Future outlook is only one aspect when you're building an investment case for a stock. For Shanghai Industrial Holdings, I've compiled three fundamental factors you should further examine: 1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Future Earnings: How does Shanghai Industrial Holdings'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 Shanghai Industrial Holdings? 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.
Hedge Funds Have Never Been This Bullish On Avalara, Inc. (AVLR) Out of thousands of stocks that are currently traded on the market, it is difficult to identify those that will really generate strong returns. Hedge funds and institutional investors spend millions of dollars on analysts with MBAs and PhDs, who are industry experts and well connected to other industry and media insiders on top of that. Individual investors can piggyback the hedge funds employing these talents and can benefit from their vast resources and knowledge in that way. We analyze quarterly 13F filings of nearly 750 hedge funds and, by looking at the smart money sentiment that surrounds a stock, we can determine whether it has the potential to beat the market over the long-term. Therefore, let’s take a closer look at what smart money thinks about Avalara, Inc. (NYSE:AVLR). Avalara, Inc. (NYSE:AVLR)was in 27 hedge funds' portfolios at the end of March. AVLR investors should pay attention to an increase in hedge fund interest lately. There were 14 hedge funds in our database with AVLR holdings at the end of the previous quarter. Overall hedge fund sentiment towards AVLR is now at its all time high. This is usually a bullish signal. We observed this in other stocks like Roku,Uniqure, andDisney.Roku returnedreturned 45%, Uniqure delivered a 30% gain and Disney outperformed the market by 23 percentage points in Q2. Why do we pay any attention at all to hedge fund sentiment? Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. We're going to take a glance at the latest hedge fund action regarding Avalara, Inc. (NYSE:AVLR). At Q1's end, a total of 27 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 93% from one quarter earlier. On the other hand, there were a total of 0 hedge funds with a bullish position in AVLR a year ago. So, let's review which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Sageview Capitalwas the largest shareholder of Avalara, Inc. (NYSE:AVLR), with a stake worth $572.8 million reported as of the end of March. Trailing Sageview Capital was Alkeon Capital Management, which amassed a stake valued at $97.2 million. Tensile Capital, Tremblant Capital, and Shannon River Fund Management were also very fond of the stock, giving the stock large weights in their portfolios. With a general bullishness amongst the heavyweights, key hedge funds have jumped into Avalara, Inc. (NYSE:AVLR) headfirst.Alkeon Capital Management, managed by Panayotis Takis Sparaggis, established the biggest position in Avalara, Inc. (NYSE:AVLR). Alkeon Capital Management had $97.2 million invested in the company at the end of the quarter. Brett Barakett'sTremblant Capitalalso made a $42.8 million investment in the stock during the quarter. The other funds with new positions in the stock are Peter Rathjens, Bruce Clarke and John Campbell'sArrowstreet Capital, Jeffrey Talpins'sElement Capital Management, and John Overdeck and David Siegel'sTwo Sigma Advisors. Let's now review hedge fund activity in other stocks - not necessarily in the same industry as Avalara, Inc. (NYSE:AVLR) but similarly valued. We will take a look at Blackbaud, Inc. (NASDAQ:BLKB), Eagle Materials, Inc. (NYSE:EXP), ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD), and Cushman & Wakefield plc (NYSE:CWK). All of these stocks' market caps resemble AVLR's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position BLKB,11,72252,-2 EXP,29,724390,4 ACAD,20,1311418,0 CWK,26,308713,13 Average,21.5,604193,3.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 21.5 hedge funds with bullish positions and the average amount invested in these stocks was $604 million. That figure was $890 million in AVLR's case. Eagle Materials, Inc. (NYSE:EXP) is the most popular stock in this table. On the other hand Blackbaud, Inc. (NASDAQ:BLKB) is the least popular one with only 11 bullish hedge fund positions. Avalara, Inc. (NYSE:AVLR) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Hedge funds were also right about betting on AVLR as the stock returned 30.3% during the same period and outperformed the market by an even larger margin. Hedge funds were rewarded for their relative bullishness. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Hedge Funds Are Warming Up To Groupon Inc (GRPN) Again While the market driven by short-term sentiment influenced by the accomodative interest rate environment in the US, increasing oil prices and optimism towards the resolution of the trade war with China, many smart money investors kept their cautious approach regarding the current bull run in the first quarter and hedging or reducing many of their long positions. However, as we know, big investors usually buy stocks with strong fundamentals, which is why we believe we can profit from imitating them. In this article, we are going to take a look at the smart money sentiment surrounding Groupon Inc (NASDAQ:GRPN). IsGroupon Inc (NASDAQ:GRPN)a superb investment today? The smart money is getting more optimistic. The number of bullish hedge fund bets rose by 2 lately. Our calculations also showed that GRPN isn't among the30 most popular stocks among hedge funds. In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to. Let's take a look at the latest hedge fund action regarding Groupon Inc (NASDAQ:GRPN). Heading into the second quarter of 2019, a total of 26 of the hedge funds tracked by Insider Monkey were long this stock, a change of 8% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards GRPN over the last 15 quarters. With hedge funds' capital changing hands, there exists a few notable hedge fund managers who were upping their holdings substantially (or already accumulated large positions). More specifically,PAR Capital Managementwas the largest shareholder of Groupon Inc (NASDAQ:GRPN), with a stake worth $194 million reported as of the end of March. Trailing PAR Capital Management was P2 Capital Partners, which amassed a stake valued at $65.9 million. Maverick Capital, Ulysses Management, and D E Shaw were also very fond of the stock, giving the stock large weights in their portfolios. As industrywide interest jumped, some big names were breaking ground themselves.Maverick Capital, managed by Lee Ainslie, established the most valuable position in Groupon Inc (NASDAQ:GRPN). Maverick Capital had $24.5 million invested in the company at the end of the quarter. Joshua Nash'sUlysses Managementalso made a $22.2 million investment in the stock during the quarter. The other funds with new positions in the stock are Matthew Hulsizer'sPEAK6 Capital Management, Israel Englander'sMillennium Management, and Michael Platt and William Reeves'sBlueCrest Capital Mgmt.. Let's go over hedge fund activity in other stocks similar to Groupon Inc (NASDAQ:GRPN). These stocks are Avanos Medical, Inc. (NYSE:AVNS), BEST Inc. (NYSE:BEST), Four Corners Property Trust, Inc. (NYSE:FCPT), and Power Integrations Inc (NASDAQ:POWI). This group of stocks' market values are closest to GRPN's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position AVNS,11,40801,-3 BEST,16,62721,7 FCPT,13,92837,0 POWI,6,79088,2 Average,11.5,68862,1.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 11.5 hedge funds with bullish positions and the average amount invested in these stocks was $69 million. That figure was $406 million in GRPN's case. BEST Inc. (NYSE:BEST) is the most popular stock in this table. On the other hand Power Integrations Inc (NASDAQ:POWI) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Groupon Inc (NASDAQ:GRPN) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately GRPN wasn't nearly as popular as these 20 stocks and hedge funds that were betting on GRPN were disappointed as the stock returned -1.4% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
What Should We Expect From Shanghai Industrial Holdings Limited's (HKG:363) Earnings In The Year Ahead? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Since Shanghai Industrial Holdings Limited (HKG:363) released its earnings in December 2018, analysts seem fairly confident, with profits predicted to increase by 5.4% next year compared with the past 5-year average growth rate of 4.0%. Currently with trailing-twelve-month earnings of HK$3.3b, we can expect this to reach HK$3.5b by 2020. Below is a brief commentary on the longer term outlook the market has for Shanghai Industrial Holdings. Readers that are interested in understanding the company beyond these figures shouldresearch its fundamentals here. See our latest analysis for Shanghai Industrial Holdings The longer term view from the 3 analysts covering 363 is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To get an idea of the overall earnings growth trend for 363, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line. From the current net income level of HK$3.3b and the final forecast of HK$4.0b by 2022, the annual rate of growth for 363’s earnings is 6.5%. EPS reaches HK$3.8 in the final year of forecast compared to the current HK$3.07 EPS today. With a current profit margin of 11%, this movement will result in a margin of 16% by 2022. Future outlook is only one aspect when you're building an investment case for a stock. For Shanghai Industrial Holdings, I've put together three pertinent aspects you should further research: 1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Future Earnings: How does Shanghai Industrial Holdings'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 Shanghai Industrial Holdings? 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.
Syneos Health, Inc. (SYNH): Are Hedge Funds Right About This Stock? World-class money managers like Ken Griffin and Barry Rosenstein only invest their wealthy clients' money after undertaking a rigorous examination of any potential stock. They are particularly successful in this regard when it comes to small-cap stocks, which their peerless research gives them a big information advantage on when it comes to judging their worth. It's not surprising then that they generate their biggest returns from these stocks and invest more of their money in these stocks on average than other investors. It's also not surprising then that we pay close attention to these picks ourselves and have built a market-beating investment strategy around them. IsSyneos Health, Inc. (NASDAQ:SYNH)a buy here? The smart money is taking a bullish view. The number of long hedge fund bets advanced by 2 recently. Our calculations also showed that SYNH isn't among the30 most popular stocks among hedge funds. Why do we pay any attention at all to hedge fund sentiment? Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. Let's view the fresh hedge fund action surrounding Syneos Health, Inc. (NASDAQ:SYNH). Heading into the second quarter of 2019, a total of 26 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 8% from the fourth quarter of 2018. The graph below displays the number of hedge funds with bullish position in SYNH over the last 15 quarters. With hedge funds' sentiment swirling, there exists a select group of notable hedge fund managers who were upping their holdings considerably (or already accumulated large positions). The largest stake in Syneos Health, Inc. (NASDAQ:SYNH) was held byViking Global, which reported holding $114.9 million worth of stock at the end of March. It was followed by Millennium Management with a $48.9 million position. Other investors bullish on the company included Cardinal Capital, Rubric Capital Management, and Hawk Ridge Management. Now, key hedge funds have jumped into Syneos Health, Inc. (NASDAQ:SYNH) headfirst.Rubric Capital Management, managed by David Rosen, assembled the biggest position in Syneos Health, Inc. (NASDAQ:SYNH). Rubric Capital Management had $23.1 million invested in the company at the end of the quarter. David Brown'sHawk Ridge Managementalso made a $19.7 million investment in the stock during the quarter. The other funds with new positions in the stock are Brandon Haley'sHolocene Advisors, Sander Gerber'sHudson Bay Capital Management, and Michael Castor'sSio Capital. Let's go over hedge fund activity in other stocks similar to Syneos Health, Inc. (NASDAQ:SYNH). These stocks are Ollie's Bargain Outlet Holdings Inc (NASDAQ:OLLI), Morningstar, Inc. (NASDAQ:MORN), Gentex Corporation (NASDAQ:GNTX), and New York Community Bancorp, Inc. (NYSE:NYCB-U). This group of stocks' market caps match SYNH's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position OLLI,22,155022,-2 MORN,21,225704,1 GNTX,23,308447,0 NYCB-U,3,26107,1 Average,17.25,178820,0 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 17.25 hedge funds with bullish positions and the average amount invested in these stocks was $179 million. That figure was $333 million in SYNH's case. Gentex Corporation (NASDAQ:GNTX) is the most popular stock in this table. On the other hand New York Community Bancorp, Inc. (NYSE:NYCB-U) is the least popular one with only 3 bullish hedge fund positions. Compared to these stocks Syneos Health, Inc. (NASDAQ:SYNH) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately SYNH wasn't nearly as popular as these 20 stocks and hedge funds that were betting on SYNH were disappointed as the stock returned -5.9% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
LaVar Ball doubles down on comment to ESPN's Molly Qerim Don't expect an apology from LaVar Ball any time soon. (Cassy Athena/Getty Images) If you were expecting an apology from LaVar Ball following his inappropriate comment to “First Take” host Molly Qerim, don’t. The Ball family patriarch is standing his ground saying that his “switching gears” comment was made with no ill will. Speaking to fans at the Drew League, Ball downplayed his comment and instead shifted the blame to Qerim whose “mind was in the gutter.” When asked about ESPN’s decision to distance themselves from him, Ball said, “I’m [going] to be banned and I don’t work for them. I’m gonna be banned from ESPN? I got my own show.” He was then asked about the intent behind his comment to Qerim when he said, “You can switch gears with me anytime.” LaVar shooting his shot at Molly Qerim during First Take interview? Jalen Rose gonna bust him up lol pic.twitter.com/HeIB9CFIxH — gifdsports (@gifdsports) June 17, 2019 “I don’t even have to respond to that on the fact that I made no sexual intent or nothing,” Ball said. “Switch gears means change topics to me. Her mind [was] in the gutter if she thinking [of] something else.” Ball didn’t stop there. Instead, he continued on his tirade saying that he wouldn’t hit on Qerim in the figurative sense, but in the literal sense. Yes, physically and on one condition. “Only time I hit on her is if she’s breaking [into] my house and I mistake her for the boogeyman.” Check out his comments in full: LaVar says the only he’ll hit on Molly is if she ever breaks in his house 😂😂😂 #lavarball #lonzoball #mollyqerim pic.twitter.com/ogHHb1zFKQ — SLEEPERSALLDAY (@sleepersallday) June 22, 2019 The comments are as tasteless as you can imagine. Instead of deflecting questions, Ball doubles down on what he said and points the finger at Qerim for misinterpreting his words. Words that were seen by many for what they were: Inappropriate and tasteless. Story continues Perhaps what’s more damning is that his comment about hitting Qerim if she were to break into his house drew a laugh from the crowd. Someone is openly promoting violence against women and it draws a laugh. Sure, LaVar’s comments are in jest, but the fact of the matter is that such comments should not be tolerated. ESPN has taken the first step in announcing they have “no plans moving forward” involving Ball and more outlets should follow, including fans. Ball doesn’t need a platform anymore. Nor does he deserve one. We can all be better in ensuring he doesn’t get one. More from Yahoo Sports: Yankees can win without Judge, but they do need depth Phillies’ Harper fails to make list of All-Star finalists Curry: Stakes of next presidential election are ‘extremely high’ USWNT has tough lineup questions as knockout stage begins
Hedge Funds Have Never Been More Bullish On OMNOVA Solutions Inc. (OMN) There are several ways to beat the market, and investing in small cap stocks has historically been one of them. We like to improve the odds of beating the market further by examining what famous hedge fund operators such as Jeff Ubben, George Soros and Carl Icahn think. Those hedge fund operators make billions of dollars each year by hiring the best and the brightest to do research on stocks, including small cap stocks that big brokerage houses simply don't cover. Because of Carl Icahn and other elite funds' exemplary historical records, we pay attention to their small cap picks. In this article, we use hedge fund filing data to analyze OMNOVA Solutions Inc. (NYSE:OMN). OMNOVA Solutions Inc. (NYSE:OMN)shareholders have witnessed an increase in activity from the world's largest hedge funds of late. Our calculations also showed that OMN isn't among the30 most popular stocks among hedge funds. Why do we pay any attention at all to hedge fund sentiment? Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. Let's take a look at the recent hedge fund action encompassing OMNOVA Solutions Inc. (NYSE:OMN). At Q1's end, a total of 17 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 6% from the previous quarter. By comparison, 16 hedge funds held shares or bullish call options in OMN a year ago. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. The largest stake in OMNOVA Solutions Inc. (NYSE:OMN) was held byRenaissance Technologies, which reported holding $13.9 million worth of stock at the end of March. It was followed by GAMCO Investors with a $7.9 million position. Other investors bullish on the company included Barington Capital Group, Scopus Asset Management, and D E Shaw. Now, some big names have jumped into OMNOVA Solutions Inc. (NYSE:OMN) headfirst.Scopus Asset Management, managed by Alexander Mitchell, assembled the most valuable position in OMNOVA Solutions Inc. (NYSE:OMN). Scopus Asset Management had $6.7 million invested in the company at the end of the quarter. Keith M. Rosenbloom'sCruiser Capital Advisorsalso initiated a $1 million position during the quarter. The other funds with new positions in the stock are David Harding'sWinton Capital Managementand Frederick DiSanto'sAncora Advisors. Let's now review hedge fund activity in other stocks similar to OMNOVA Solutions Inc. (NYSE:OMN). These stocks are Home Bancorp, Inc. (NASDAQ:HBCP), Xinyuan Real Estate Co., Ltd. (NYSE:XIN), Avid Technology, Inc. (NASDAQ:AVID), and Cellular Biomedicine Group, Inc. (NASDAQ:CBMG). All of these stocks' market caps resemble OMN's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position HBCP,3,7928,1 XIN,7,5256,-1 AVID,15,68733,3 CBMG,2,12174,2 Average,6.75,23523,1.25 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 6.75 hedge funds with bullish positions and the average amount invested in these stocks was $24 million. That figure was $52 million in OMN's case. Avid Technology, Inc. (NASDAQ:AVID) is the most popular stock in this table. On the other hand Cellular Biomedicine Group, Inc. (NASDAQ:CBMG) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks OMNOVA Solutions Inc. (NYSE:OMN) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately OMN wasn't nearly as popular as these 20 stocks and hedge funds that were betting on OMN were disappointed as the stock returned -18.9% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Can Aoyuan Healthy Life Group Company Limited's (HKG:3662) ROE Continue To Surpass The Industry Average? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). We'll use ROE to examine Aoyuan Healthy Life Group Company Limited (HKG:3662), by way of a worked example. Aoyuan Healthy Life Group has a ROE of 62%, based on the last twelve months. Another way to think of that is that for every HK$1 worth of equity in the company, it was able to earn HK$0.62. See our latest analysis for Aoyuan Healthy Life Group Theformula for ROEis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Aoyuan Healthy Life Group: 62% = CN¥78m ÷ CN¥126m (Based on the trailing twelve months to December 2018.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is all earnings retained by the company, plus any capital paid in by shareholders. Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company. ROE measures a company's profitability against the profit it retains, and any outside investments. The 'return' is the amount earned after tax over the last twelve months. A higher profit will lead to a higher ROE. So, all else equal,investors should like a high ROE. That means it can be interesting to compare the ROE of different companies. Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. As you can see in the graphic below, Aoyuan Healthy Life Group has a higher ROE than the average (9.1%) in the Real Estate industry. That is a good sign. We think a high ROE, alone, is usually enough to justify further research into a company. For exampleyou might checkif insiders are buying shares. Virtually all companies need money to invest in the business, to grow profits. That cash can come from issuing shares, retained earnings, or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the use of debt will improve the returns, but will not change the equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same. Aoyuan Healthy Life Group has a debt to equity ratio of just 0.014, which is very low. The combination of modest debt and a very impressive ROE does suggest that the business is high quality. Careful use of debt to boost returns is often very good for shareholders. However, it could reduce the company's ability to take advantage of future opportunities. Return on equity is useful for comparing the quality of different businesses. 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 when a business is high quality, the market often bids it up to a price that reflects this. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to take a peek at thisdata-rich interactive graph of forecasts for the company. If you would prefer 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. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Hedge Funds Have Never Been This Bullish On The Brink’s Company (BCO) Russell 2000 ETF (IWM) lagged the larger S&P 500 ETF (SPY) by nearly 9 percentage points since the end of the third quarter of 2018 as investors worried over the possible ramifications of rising interest rates and escalation of the trade war with China. The hedge funds and institutional investors we track typically invest more in smaller-cap stocks than an average investor (i.e. only 298 S&P 500 constituents were among the 500 most popular stocks among hedge funds), and we have seen data that shows those funds paring back their overall exposure. Those funds cutting positions in small-caps is one reason why volatility has increased. In the following paragraphs, we take a closer look at what hedge funds and prominent investors think of The Brink's Company (NYSE:BCO) and see how the stock is affected by the recent hedge fund activity. The Brink's Company (NYSE:BCO)investors should be aware of an increase in hedge fund interest lately. Overall hedge fund sentiment towards BCO is now at its all time high. This is usually a bullish indicator. We observed this in other stocks like Roku, Uniqure,Avalara, andDisney.Roku returnedreturned 45%,Uniqure and Avalara delivereda 30% gain each, andDisney outperformedthe market by 23 percentage points in Q2. So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio. We're going to take a peek at the fresh hedge fund action surrounding The Brink's Company (NYSE:BCO). At Q1's end, a total of 25 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 14% from one quarter earlier. By comparison, 20 hedge funds held shares or bullish call options in BCO a year ago. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves. The largest stake in The Brink's Company (NYSE:BCO) was held byP2 Capital Partners, which reported holding $150.2 million worth of stock at the end of March. It was followed by Deccan Value Advisors with a $128.2 million position. Other investors bullish on the company included Brahman Capital, Park West Asset Management, and Ariel Investments. Now, key money managers have jumped into The Brink's Company (NYSE:BCO) headfirst.Kerrisdale Capital, managed by Sahm Adrangi, created the most outsized position in The Brink's Company (NYSE:BCO). Kerrisdale Capital had $14.2 million invested in the company at the end of the quarter. Richard Driehaus'sDriehaus Capitalalso initiated a $2.9 million position during the quarter. The other funds with brand new BCO positions are Joel Greenblatt'sGotham Asset Management, Matthew Tewksbury's Stevens Capital Management, and Ray Dalio's Bridgewater Associates. Let's now review hedge fund activity in other stocks similar to The Brink's Company (NYSE:BCO). We will take a look at Selective Insurance Group, Inc. (NASDAQ:SIGI), LiveRamp Holdings, Inc. (NYSE:RAMP), Bank OZK (NASDAQ:OZK), and Enstar Group Ltd. (NASDAQ:ESGR). This group of stocks' market valuations resemble BCO's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position SIGI,12,28810,-2 RAMP,23,323059,5 OZK,20,256803,2 ESGR,11,348751,2 Average,16.5,239356,1.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 16.5 hedge funds with bullish positions and the average amount invested in these stocks was $239 million. That figure was $491 million in BCO's case. LiveRamp Holdings, Inc. (NYSE:RAMP) is the most popular stock in this table. On the other hand Enstar Group Ltd. (NASDAQ:ESGR) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks The Brink's Company (NYSE:BCO) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Hedge funds were also right about betting on BCO as the stock returned 9.8% during the same period and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Were Hedge Funds Right About Planet Fitness Inc (PLNT)? Although the masses and most of the financial media blame hedge funds for their exorbitant fee structure and disappointing performance, these investors have proved to have great stock picking abilities over the years (that's why their assets under management continue to swell). We believe hedge fund sentiment should serve as a crucial tool of an individual investor’s stock selection process, as it may offer great insights of how the brightest minds of the finance industry feel about specific stocks. After all, these people have access to smartest analysts and expensive data/information sources that individual investors can't match. So should one consider investing in Planet Fitness Inc (NYSE:PLNT)? The smart money sentiment can provide an answer to this question. IsPlanet Fitness Inc (NYSE:PLNT)a healthy stock for your portfolio? The best stock pickers are in a pessimistic mood. The number of long hedge fund bets were trimmed by 5 in recent months. Our calculations also showed that PLNT isn't among the30 most popular stocks among hedge funds. Why do we pay any attention at all to hedge fund sentiment? Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. We're going to view the fresh hedge fund action regarding Planet Fitness Inc (NYSE:PLNT). Heading into the second quarter of 2019, a total of 25 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -17% from the previous quarter. On the other hand, there were a total of 25 hedge funds with a bullish position in PLNT a year ago. With hedge funds' positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their holdings considerably (or already accumulated large positions). Among these funds,Two Sigma Advisorsheld the most valuable stake in Planet Fitness Inc (NYSE:PLNT), which was worth $73.1 million at the end of the first quarter. On the second spot was Renaissance Technologies which amassed $55.5 million worth of shares. Moreover, Waratah Capital Advisors, Pelham Capital, and Daruma Asset Management were also bullish on Planet Fitness Inc (NYSE:PLNT), allocating a large percentage of their portfolios to this stock. Seeing as Planet Fitness Inc (NYSE:PLNT) has experienced a decline in interest from the entirety of the hedge funds we track, logic holds that there exists a select few hedge funds that elected to cut their positions entirely by the end of the third quarter. At the top of the heap, Gabriel Plotkin'sMelvin Capital Managementdropped the largest investment of the 700 funds followed by Insider Monkey, totaling close to $28.2 million in stock, and Alexander Mitchell's Scopus Asset Management was right behind this move, as the fund dumped about $23.5 million worth. These bearish behaviors are important to note, as total hedge fund interest fell by 5 funds by the end of the third quarter. Let's also examine hedge fund activity in other stocks - not necessarily in the same industry as Planet Fitness Inc (NYSE:PLNT) but similarly valued. These stocks are Donaldson Company, Inc. (NYSE:DCI), Kirkland Lake Gold Ltd. (NYSE:KL), ServiceMaster Global Holdings Inc (NYSE:SERV), and Tilray, Inc. (NASDAQ:TLRY). This group of stocks' market caps are closest to PLNT's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position DCI,16,121565,-3 KL,25,323351,2 SERV,24,522396,-3 TLRY,10,22079,2 Average,18.75,247348,-0.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 18.75 hedge funds with bullish positions and the average amount invested in these stocks was $247 million. That figure was $499 million in PLNT's case. Kirkland Lake Gold Ltd. (NYSE:KL) is the most popular stock in this table. On the other hand Tilray, Inc. (NASDAQ:TLRY) is the least popular one with only 10 bullish hedge fund positions. Planet Fitness Inc (NYSE:PLNT) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Hedge funds were also right about betting on PLNT as the stock returned 16.9% during the same period and outperformed the market by an even larger margin. Hedge funds were rewarded for their relative bullishness. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Should You Be Holding JTEKT India Limited (NSE:JTEKTINDIA)? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! JTEKT India Limited (NSE:JTEKTINDIA) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of JTEKTINDIA, it is a company with great financial health as well as a an impressive track record of performance. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, take a look at thereport on JTEKT India here. In the previous year, JTEKTINDIA has ramped up its bottom line by 51%, with its latest earnings level surpassing its average level over the last five years. Not only did JTEKTINDIA outperformed its past performance, its growth also exceeded the Auto Components industry expansion, which generated a 5.5% earnings growth. This is an optimistic signal for the future. JTEKTINDIA's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that JTEKTINDIA has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. JTEKTINDIA's has produced operating cash levels of 0.68x total debt over the past year, which implies that JTEKTINDIA's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. For JTEKT India, there are three key factors you should look at: 1. Future Outlook: What are well-informed industry analysts predicting for JTEKTINDIA’s future growth? Take a look at ourfree research report of analyst consensusfor JTEKTINDIA’s outlook. 2. Valuation: What is JTEKTINDIA 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 JTEKTINDIA is currently mispriced by the market. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of JTEKTINDIA? 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.
USMNT 6, Trinidad and Tobago 0: Breakdown of Gold Cup rout Gyasi Zardes celebrates his first of two goals in the USMNT's 6-0 rout of Trinidad and Tobago. (Getty) CLEVELAND — This was not about October 10, 2017 . Not about revenge. Not about atonement or ghosts or Couva . What has passed is past. This – the U.S. men’s national team’s 6-0 rout of Trinidad and Tobago on Saturday – was about the future. It was the best evidence yet that the USMNT is turning a page. Away from that World Cup qualifying disaster . Toward, in the immediate term, the 2019 Gold Cup knockout stages. But toward, more importantly, a new era unburdened by that infamous night 20 months ago. The Yanks not only spanked Trinidad. They provided glimpses of what Gregg Berhalter’s USMNT could look like. What it should look like. What it must look like to fully detach itself from the failures of the recent past. The U.S. tugged Trinidad this way and that The glimpses initially appeared in the first half. But they were fleeting. The U.S. exerted control. Its tempo was good. Its end product – whether a run or a pass or a finish – wasn’t. Trinidad defended with man-to-man principles. Fullbacks and center backs often followed forwards into midfield if they checked to the ball. Midfielders tracked their opposite numbers. Sharp movements and one-touch passing, therefore, allowed the U.S. to pull opponents out of position and unlock space. That space, though, was often left unexploited. (Original video: Fox Sports 1 \| Illustration: Henry Bushnell/Yahoo Sports) First runs were found. Perhaps a second run played off the first. But there was no coordinated, anticipatory third run. If there was, it was either ignored or a step slow. (Original video: Fox Sports 1) The U.S. did, however, come equipped with mechanisms to flummox Trinidad – especially down the attacking left. Pulisic, Arriola, and interchangeability Much has been made of Berhalter’s decision to play Pulisic centrally – nominally as a No. 10. But Pulisic’s position, in reality, is somewhere in between “central attacking midfielder” and “winger.” It’s neither/nor, but also either/or. Pulisic and left winger Paul Arriola have the freedom to interchange in possession. It’s all part of what Berhalter calls “getting Christian in positions where he can change the game.” It is less preplanned movement, more so reacting to triggers and cues and situations. “We have to read when is the right time to do it,” Pulisic said postgame. Story continues “I always tell Christian, it’s whatever he sees,” Arriola explained. “As soon as he goes wide, my job is to come inside. If he stays inside, I’m going out wide. It’s very interchangeable.” The two – perhaps with the coaching staff’s help – realized this interaction could toy with Trinidad’s man-oriented scheme. “There were a few plays in the first half, I remember specifically, where we got some openings where he came inside and I spread out,” Pulisic recalled postgame. The action opened up alarmingly simple lanes into the final third. (Original video: Fox Sports 1) A more advanced version of it nearly got Pulisic in on goal as well. (Original video: Fox Sports 1 \| Illustration: Henry Bushnell/Yahoo Sports) Michael Bradley’s pass was a bit too heavy on that occasion. The connection didn’t quite materialize. But the U.S. kept coming, and coming, and coming ... largely because it was outstanding in defensive transition. The U.S. pressed Trinidad into submission The U.S. was so domineering, so constantly on the ball in midfield, because it rarely let Trinidad relax or build attacks. The hosts were particularly good immediately after losing possession. Their counterpressing forced hurried clearances. Their defending from the front – their ability to cut down on the time Trinidad had to morph from a defensive shape into an attacking shape – isolated opposing forwards. Aaron Long, Walker Zimmerman and others almost invariably won those individual battles when Trinidad launched long. The U.S. won back possession, recycled it, and went back on the attack. “We asked the guys to be aggressive pressing when we lost the ball,” Berhalter said postgame. “And I think they did that. It’s nice when you have guys at the back that can play 1-vs.-1, and you’re not so worried about it.” Long confirmed that the press was a point of emphasis in training leading up to the game. And while Trinidad had two counterattacks of note – one in the first half when Tim Ream got too tight to his man, the other in the second half off a corner – “we were pretty comfortable,” Long said. “The way we play, how we spread out the field, it’s gonna come with some defensive transition moments,” he added. But the vast majority of them resulted in more American control, high up the field: (Original video: Fox Sports 1) It wasn’t just the counterpressing, either. Berhalter’s USMNT has often been content to sit in a mid-block without the ball. On Saturday, they chased the ball higher. They cleaned up well behind that first line of confrontation. The third and fourth goals were both fruits of their labor. (Original video: Fox Sports 1) The constant pressure also wore on Trinidad. “The first half set up the second half pretty nicely,” Berhalter said. “We wanted to have a high tempo, we wanted to keep them moving. We thought our fitness could have an effect on them.” And it did. Mental gaffes and switches flipped off were as significant as any other reasons for the fourth-quarter goal rush. But credit the U.S. as well for being ruthless. Berhalter’s halftime tweak The U.S. also made a slight tactical adjustment at halftime. Throughout the first 45 minutes, both “dual 10s,” Pulisic and Weston McKennie, pushed high. So did the wingers. So, on occasion, did right back Nick Lima. (Screenshot: Fox Sports 1) But that wasn’t conducive to chiseling out space against the man-to-man. It was actually making Trinidad more compact, and constricting meaningful space. So Berhalter instructed McKennie to drop closer to Bradley, and advised right winger Tyler Boyd to operate in the space McKennie vacated. (Lima still provided both width and verticality up the right.) They pulled opponents with them, and therefore stretched Trinidad’s lines. (Original video: Yahoo Sports) The tweak didn’t lead directly to any goals. But it further affirmed the USMNT’s dominance. The second goal deflated Trinidad. The third and the fourth buried the Soca Warriors. And the U.S. had no interest in being merciful. Other notes and quotes Gyasi Zardes’ first goal – the USMNT’s second – looked an awful lot like an effortless tap-in. And sure, in the end, it was. Sure, Lima’s run and Bradley’s MLS assist were primarily responsible for it. But Zardes’ movement was superb. Watch him start his dart toward the six right when Bradley’s foot clips the ball – before Zardes even knows Lima will be on the end of it, and of course well before he knows Lima will nod it across the face of goal: GYASI ZARDES MAKES IT 2! 🇺🇸 What a pass by Michael Bradley to set it up 🔥🔥🔥 #GoldCup2019 pic.twitter.com/nEMiLdgVLE — FOX Soccer (@FOXSoccer) June 23, 2019 Here’s Michael Bradley, speaking truth on the U.S. mentality as it rebounded from losses to Jamaica and Venezuela : “We weren’t ready to kill ourselves after the results in the two friendlies, and we’re not ready to anoint ourselves champions of the world just yet either. We understand that there’s still – it’s all relative. This is still a work in progress. We feel good about the work going into it. We feel like we’re on the right path. We feel like we’re building something that can continue to get better and better. But we understand that these are all steps along the way. There’s gonna be good moments. There’s gonna be difficult moments. You take them all in stride, and you continue to grow.” Zack Steffen was Saturday’s captain. (Bradley wore the armband against Guyana on Tuesday.) But Bradley was and is still very much the team’s leader. McKennie didn’t instigate, but did escalate, a second-half scuffle involving multiple players from both teams. He and Daneil Cyrus, who’d provoked a few American players, received yellow cards for it. The USMNT scoring spree began eight minutes later. Here’s Pulisic, when asked about McKennie’s unceasing enthusiasm and zeal: “Except at 8 in the morning, every other time of the day, he has more energy than anyone I’ve ever known. In the morning, don’t talk to him. But after that ...” Pulisic was on corner and free kick duties after Boyd handled most of them on Tuesday. After the opening goal, Long shouted to Pulisic: “That’s you baby! That’s you! F*** yeah!” USA TAKE THE LEAD! 🇺🇸 Pulisic sets up Aaron Long who heads it home and puts the USMNT on 🔝 #GoldCup2019 pic.twitter.com/m9qINBZvxl — FOX Soccer (@FOXSoccer) June 23, 2019 Long confirmed postgame that he’d never scored with his chest before – at least not as a pro. Pulisic did his best Tobin Heath impression late in the game: In the words of @stuholden : FILTH of the highest order from @cpulisic_10 🔥🔥🔥 pic.twitter.com/m557PUBAZR — FOX Soccer (@FOXSoccer) June 23, 2019 Berhalter greeted and enjoyed catching up with a few Columbus-based journalists who’d covered him during his six years with the Crew. The attendance at FirstEnergy Stadium in Cleveland was 23,921 – a little over one-third of the capacity. USMNT lineup Back to front, right to left, 4-3-3, with subs in parentheses: Zack Steffen; Nick Lima (Reggie Cannon), Walker Zimmerman, Aaron Long, Tim Ream; Michael Bradley, Weston McKennie, Christian Pulisic; Tyler Boyd (Jordan Morris), Gyasi Zardes (Jozy Altidore), Paul Arriola. With Altidore still working his way back up to full fitness, the U.S. was unchanged from a 4-0 tournament-opening win over Guyana . Up next The U.S. heads to Kansas City to take on Panama on Wednesday. Both teams are on six points, and already through. Both teams will head to Philadelphia after that game for quarterfinals on Sunday, June 30. The U.S., thanks to its plus-10 goal difference, can win Group D with a draw or a victory. And if Jamaica wins Group C – its tied in pole position on four points – first place would be preferable for the Yanks. (The U.S. will know the final Group C standings when it kicks off on Wednesday.) But Berhalter hasn’t yet decided how he’ll handle squad rotation. “To be honest, I don’t have experience in that,” he admitted postgame. “This is the first time we’re going through it. So we’re gonna have to figure it out.” – – – – – – – Henry Bushnell is a features writer for Yahoo Sports . Have a tip? Question? Comment? Email him at henrydbushnell@gmail.com, or follow him on Twitter @HenryBushnell , and on Facebook . More from Yahoo Sports: Yankees can win without Judge, but they do need depth Phillies’ Harper fails to make list of All-Star finalists Curry: Stakes of next presidential election are ‘extremely high’ USWNT has tough lineup questions as knockout stage begins
Is JTEKT India Limited's (NSE:JTEKTINDIA) 13% ROE Strong Compared To Its Industry? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. To keep the lesson grounded in practicality, we'll use ROE to better understand JTEKT India Limited (NSE:JTEKTINDIA). Our data showsJTEKT India has a return on equity of 13%for the last year. Another way to think of that is that for every ₹1 worth of equity in the company, it was able to earn ₹0.13. Check out our latest analysis for JTEKT India Theformula for return on equityis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for JTEKT India: 13% = ₹727m ÷ ₹6.2b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. It is all 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 measures a company's profitability against the profit it retains, and any outside investments. The 'return' is the yearly profit. 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. One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. You can see in the graphic below that JTEKT India has an ROE that is fairly close to the average for the Auto Components industry (13%). That's not overly surprising. ROE doesn't tell us if the share price is low, but it can inform us to the nature of the business. For those looking for a bargain, other factors may be more important. If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying. Virtually all companies need money to invest in the business, to grow profits. That cash can come from issuing shares, retained earnings, or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. Although JTEKT India does use debt, its debt to equity ratio of 0.22 is still low. Its ROE isn't particularly impressive, but the debt levels are quite modest, so the business probably has some real potential. Conservative use of debt to boost returns is usually a good move for shareholders, though it does leave the company more exposed to interest rate rises. Return on equity is one way we can compare the business quality of different companies. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE. But when a business is high quality, the market often bids it up to a price that reflects this. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. Check the past profit growth by JTEKT India by looking at thisvisualization of past earnings, revenue and cash flow. Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Is CBD Bad for Your Liver? The Shocking Findings of 1 New Study There's arguably no buzzier investment on Wall Street at the moment than marijuana. And within the cannabis industry, no trend is hotter than therise of cannabidiol(CBD). Cannabidiol is the nonpsychoactive cannabinoid best known for its perceived medical benefits. It can be extracted from the cannabis plant or from hemp, the latter of which is almost always a more cost-effective source to obtain large quantities of CBD extracts. Given that CBD-infused derivatives, such as oils, capsules, edibles, infused beverages, and topicals, don't get a user high, they're believed to be the perfect means to market to users who've never used, or considered using, a marijuana or hemp-oil product before. For Wall Street, CBD is nothing more than a gigantic dollar sign hovering over the industry. The Brightfield Group foresees U.S. CBD-based sales rocketing from $591 million in 2018 to$22 billion by 2022. That's good enough for a compound annual growth rate of 147%. The passage of the farm bill in December, which legalized industrial hemp production and hemp-derived CBD extracts, only adds fuel to CBD's sizzling growth prospects. And for prospective consumers, it's a means to possible therapeutic benefits. In June 2018,GW Pharmaceuticals(NASDAQ: GWPH) saw its lead drug Epidiolex, a CBD-based oral solution, getapproved to treat two rare forms of childhood-onset epilepsy. This was the first time the U.S. Food and Drug Administration (FDA) had approved a cannabis-derived drug. We've also witnessed plenty of university-level studies that have shown positive correlations between CBD consumption and improvements in chronic pain, glaucoma, epilepsy, and a host of other ailments for patients. In many respects, CBD is being hailed as an inexpensive cure-all for a number of conditions. But this faith in CBD and its medical benefits may be misplaced, at least according to one new study. The study, titled "Hepatotoxicity of a Cannabidiol-Rich Cannabis Extract in the Mouse Model," was published in the journalMoleculesin late April, although it was a recentForbesarticlethat brought this study to my attention. As the title suggests, researchers at the University of Arkansas for Medical Sciences used a mouse model to examine CBD toxicity in the liver based on varying dosages of the substance. What's particularly interesting about this study is that the researchers used "allometrically scaled mouse model equivalent doses of the maximum recommended human maintenance dose of CBD in Epidiolex (20 mg/kg)." In other words, the high-dose parameters of GW Pharmaceuticals' lead drug, and the only approved CBD-based therapeutic in the U.S., was the basis for the dosing in this study. In the sub-acute (presumed nontoxic) phase of the study, 8-week-old mice were gavaged dosages of 0 mg/kg, 61.5 mg/kg, 184.5 mg/kg, and 615 mg/kg for 10 days. Again, this was the sub-acute toxicity portion of the trial (the acute portion saw dosages as high as 2,460 mg/kg). Of those mice in the sub-acute study receiving the highest dose of 615 mg/kg, 75% either died or were near death by day three or four. These mice showed many of the telltale signs of liver damage (i.e., elevated liver enzyme levels, and significant increases in the liver-to-body weight ratio) that were seen in the highest doses of the acute study. Now, here's the aha moment: The 615 mg/kg dose that caused the death or near-death of three-quarters of mice in the sub-acute group is the allometric equivalent to the highest dose of GW Pharmaceuticals' Epidiolex in humans. It's also worth noting that on Epidiolex's warning label, "hepatocellular injury" is the first warning listed. As noted by the FDA-accessible label: In controlled studies for LGS [Lennox-Gastaut syndrome] and DS [Dravet syndrome], the incidence of ALT elevations above 3 times the upper limit of normal (ULN) was 13% in Epidiolex-treated patients compared with 1% in patients on placebo. Less than 1% of Epidiolex-treated patients had ALT or AST levels greater than 20 times the ULN. There were cases of transaminase elevations associated with hospitalization in patients taking Epidiolex. Does this prove CBD is unsafe? Well, no, it doesn't. However, it does raise some warning signs that we don't know a lot about what CBD is capable of treating, and what it's long-term or regular-use side effects might be on the body. That led researchers at the University of Arkansas to conclude that additional studies should be conducted on the matter. Additionally, given that the FDA is the regulatory body to have thoroughly reviewed GW Pharmaceuticals' CBD-based drug, and understanding the impact of CBD maintenance therapy on liver function, this could help explain why the FDAhas been reluctant to allow CBD additivesin food, beverages, and dietary supplements. Even though hemp-derived CBD is legal nationwide, the FDA has been reluctant to budge on its premise that an insufficient safety profile exists for CBD as an additive. More than likely, this mouse model study will have little to no impact on the near-term sales of CBD products in the United States. Withzero marijuana overdose-related deaths on record, the public is likely to assume that CBD-rich products are equally as safe to consume as cannabis. But the FDA is not as easy to win over, even with popular opinion likely pushing the regulatory agency for a green light on adding CBD to foods and beverages. My suspicion is this isn't the last time we'll see the safety of CBD called into question, and that's something consumers and investors will want to keep in the back of their minds. More From The Motley Fool • 10 Best Stocks to Buy Today • The $16,728 Social Security Bonus You Cannot Afford to Miss • 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) • What Is an ETF? • 5 Recession-Proof Stocks • How to Beat the Market Sean Williamshas no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy.
What Should We Expect From Zensar Technologies Limited's (NSE:ZENSARTECH) Earnings Over The Next Few Years? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! In April 2019, Zensar Technologies Limited (NSE:ZENSARTECH) announced its most recent earnings update, which indicated that the company benefited from a robust tailwind, eventuating to a double-digit earnings growth of 30%. Below, I've presented key growth figures on how market analysts perceive Zensar Technologies's earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. Check out our latest analysis for Zensar Technologies Market analysts' prospects for this coming year seems optimistic, with earnings climbing by a robust 19%. This growth seems to continue into the following year with rates reaching double digit 42% compared to today’s earnings, and finally hitting ₹5.1b by 2022. Although it is useful to understand the growth year by year relative to today’s figure, it may be more valuable evaluating the rate at which the earnings are moving on average every year. The advantage of this technique is that it removes the impact of near term flucuations and accounts for the overarching direction of Zensar Technologies's earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I've inserted a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 16%. This means, we can expect Zensar Technologies will grow its earnings by 16% every year for the next couple of years. For Zensar Technologies, there are three relevant factors you should further examine: 1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Valuation: What is ZENSARTECH 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 ZENSARTECH is currently mispriced by the market. 3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of ZENSARTECH? 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.
Is Worth Peripherals Limited (NSE:WORTH) A High Quality Stock To Own? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! 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 Worth Peripherals Limited (NSE:WORTH). Worth Peripherals has a ROE of 17%, based on the last twelve months. One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.17 in profit. See our latest analysis for Worth Peripherals Theformula for return on equityis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Worth Peripherals: 17% = ₹131m ÷ ₹786m (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. It is 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. ROE measures a company's profitability against the profit it retains, and any outside investments. The 'return' is the amount earned after tax over the last twelve months. That means that the higher the ROE, the more profitable the company is. So, as a general rule,a high ROE is a good thing. Clearly, then, one can use ROE to compare different companies. One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. Pleasingly, Worth Peripherals has a superior ROE than the average (11%) company in the Packaging industry. That's what I like to see. I usually take a closer look when a company has a better ROE than industry peers. For exampleyou might checkif insiders are buying shares. Most companies need money -- from somewhere -- to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the use of debt will improve the returns, but will not change the equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same. While Worth Peripherals does have a tiny amount of debt, with debt to equity of just 0.09, we think the use of debt is very modest. Its very respectable ROE, combined with only modest debt, suggests the business is in good shape. Conservative use of debt to boost returns is usually a good move for shareholders, though it does leave the company more exposed to interest rate rises. Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. In my book the highest quality companies have high return on equity, despite low debt. If two companies have the same ROE, then I would generally prefer the one with less debt. Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. 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. Check the past profit growth by Worth Peripherals by looking at thisvisualization of past earnings, revenue and cash flow. If you would prefer 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. 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.
I Ran A Stock Scan For Earnings Growth And Aurangabad Distillery (NSE:AURDIS) Passed With Ease Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. So if you're like me, you might be more interested in profitable, growing companies, likeAurangabad Distillery(NSE:AURDIS). Even if the shares are fully valued today, most capitalists would recognize its profits as the demonstration of steady value generation. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed. View our latest analysis for Aurangabad Distillery 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. That means EPS growth is considered a real positive by most successful long-term investors. Aurangabad Distillery managed to grow EPS by 15% per year, over three years. That's a pretty good rate, if the company can sustain it. 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 Aurangabad Distillery is growing revenues, and EBIT margins improved by 6.5 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. Click on the chart to see the exact numbers. Since Aurangabad Distillery is no giant, with a market capitalization of ₹246m, so you shoulddefinitely check its cash and debtbeforegetting too excited about its prospects. Like standing at the lookout, surveying the horizon at sunrise, insider buying, for some investors, sparks joy. Because oftentimes, the purchase of stock is a sign that the buyer views it as undervalued. Of course, we can never be sure what insiders are thinking, we can only judge their actions. We note that Aurangabad Distillery insiders spent ₹3.6m on stock, over the last year; in contrast, we didn't see any selling. That's nice to see, because it suggests insiders are optimistic. We also note that it was the Chairman, Amardeepsingh Sethi, who made the biggest single acquisition, paying ₹1.3m for shares at about ₹35.28 each. On top of the insider buying, we can also see that Aurangabad Distillery insiders own a large chunk of the company. In fact, they own 86% of the company, so they will share in the same delights and challenges experienced by the ordinary shareholders. This makes me think they will be incentivised to plan for the long term - something I like to see. Of course, Aurangabad Distillery is a very small company, with a market cap of only ₹246m. That means insiders only have ₹211m worth of shares, despite the large proportional holding. That's not a huge stake in absolute terms, but it should help keep insiders aligned with other shareholders. As I already mentioned, Aurangabad Distillery is a growing business, which is what I like to see. Better yet, insiders are significant shareholders, and have been buying more shares. That makes the company a prime candidate for my watchlist - and arguably a research priority. One of Buffett's considerations when discussing businesses is if they are capital light or capital intensive. Generally, a company with a high return on equity is capital light, and can thus fund growth more easily. So you might want to checkthis graph comparing Aurangabad Distillery's ROE with industry peers (and the market at large). As a growth investor I do like to see insider buying. But Aurangabad Distillery isn't the only one. You can see aa 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.
Why Apollo Sindoori Hotels Limited (NSE:APOLSINHOT) Looks Like A Quality Company Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). We'll use ROE to examine Apollo Sindoori Hotels Limited ( NSE:APOLSINHOT ), by way of a worked example. Our data shows Apollo Sindoori Hotels has a return on equity of 30% for the last year. That means that for every ₹1 worth of shareholders' equity, it generated ₹0.30 in profit. See our latest analysis for Apollo Sindoori Hotels How Do You Calculate Return On Equity? The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Apollo Sindoori Hotels: 30% = ₹206m ÷ ₹675m (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. It is the capital paid in by shareholders, plus any retained earnings. Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company. What Does ROE Mean? ROE looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the profit over the last twelve months. The higher the ROE, the more profit the company is making. So, all else equal, investors should like a high ROE . Clearly, then, one can use ROE to compare different companies. Does Apollo Sindoori Hotels Have A Good Return On Equity? Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. As you can see in the graphic below, Apollo Sindoori Hotels has a higher ROE than the average (7.1%) in the Commercial Services industry. Story continues NSEI:APOLSINHOT Past Revenue and Net Income, June 23rd 2019 That's what I like to see. We think a high ROE, alone, is usually enough to justify further research into a company. One data point to check is if insiders have bought shares recently . The Importance Of Debt To Return On Equity 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 two cases, the ROE will capture this use of capital to grow. In the latter case, the use of debt will improve the returns, but will not change the equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. Apollo Sindoori Hotels's Debt And Its 30% ROE While Apollo Sindoori Hotels does have a tiny amount of debt, with debt to equity of just 0.0013, we think the use of debt is very modest. When I see a high ROE, fuelled by only modest debt, I suspect the business is high quality. Careful use of debt to boost returns is often very good for shareholders. However, it could reduce the company's ability to take advantage of future opportunities. But It's Just One Metric Return on equity is one way we can compare the business quality of different companies. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE. But when a business is high quality, the market often bids it up to a price that reflects this. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So I think it may be worth checking this free this detailed graph of past earnings, revenue and cash flow . If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list 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 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.
Skydiving plane in Hawaii crash had scary 2016 mishap HONOLULU (AP) — A skydiving plane that crashed in Hawaii, killing 11 people, was involved in a terrifying midair incident three years ago in Northern California that prompted the 14 skydivers aboard to jump earlier than planned to safety, according to government investigative records. The Beechcraft King Air plane crashed and burned on Oahu island's north shore Friday evening after witnesses said it appeared to turn back shortly after takeoff. In the July 23, 2016, incident near Byron, California, the twin-engine plane stalled three times and spun repeatedly before the pilot at that time managed to land it safely, the National Transportation Safety Board said in its investigative report. The agency blamed pilot error. No one aboard survived the Hawaii crash, which left a small pile of smoky wreckage near the chain link fence surrounding Dillingham Airfield, a one-runway seaside airfield. Steven Tickemyer saw the plane take flight, get 75 to 100 feet (22 to 30 meters) off the ground and turn away from the mountain range nearby. He said the plane started to nosedive, then flipped over belly forward so that it was upside down. The aircraft then flipped over again, and hit the ground nose first. He said there was an explosion when it hit the ground. Tickemyer told The Associated Press this all happened in about 20 to 30 seconds. He and his friends were watching from a beach across the street. They hopped in his truck, called authorities and drove to the crash site. They screamed to see if anyone would call for help, but no one responded, he said. The crash appeared to be the worst U.S. civil aviation accident since a 2011 accident at the Reno Air Show in Nevada that killed the pilot and 10 spectators. Officials in Hawaii initially reported that nine people had died and that three of them were customers of the skydiving company operating the plane and that six were employees. But the Hawaii Department of Transportation tweeted Saturday that officials later "confirmed there were 11 people on board the plane" and no survivors. They were not identified. Story continues The flight was operated by the Oahu Parachute Center skydiving company. The ratio of employees to customers aboard suggested that tandem jumps may have been planned in which the customers would have jumped while attached to experienced skydivers, Tim Sakahara, a spokesman for the Hawaii Department of Transportation, told reporters. Some family members of those aboard were at the airport when the plane went down at about 6:30 p.m., Honolulu Police Chief Manuel Neves said. Witness Wylie Schoonover saw the plane flying over trees while driving from a nearby YMCA camp after picking up a friend. Then she saw smoke billowing from the airfield and drove over. There was an "insane amount of fire," she said. "It didn't even look like a plane. A bunch of people were asking 'what is this?' It was completely gone," Schoonover said. Natacha Mendenhall said her cousin Casey Williamson, who worked at Oahu Parachute Center, was on board the plane. She said her family has not been officially notified of his death. But they provided Honolulu police with Williamson's name and date of birth, and the police confirmed he was on the flight, she said. The 29-year-old Yukon, Oklahoma native started skydiving about two-and-a-half years ago. He moved to Hawaii a year and a half ago to focus on sky-diving full time. He was an adventurer, she said, who lived in Vail, Colorado, to snowboard and Moab, Utah, to skydive. Williamson was his mother Carla Ajaga's only child, Mendenhall said. "We're all very upset," said Mendenhall, speaking from her home in Fort Worth, Texas. "She cannot really talk right now. What she wants everyone to know is how full of life her son was, how loving he was." The family has created a GoFundMe page to raise money for his funeral expenses. Two Federal Aviation Administration inspectors went to the crash site Friday, and National Transportation Safety Board investigators were expected to arrive Saturday evening, safety board spokesman Eric Weiss said. The plane with two turboprop engines was manufactured in 1967, FAA records said. The NTSB report on the 2016 incident in Northern California said the plane rotated nine times during one of the three spins it experienced. Investigators found that the plane had lost a piece of horizontal stabilizer and that the plane's elevator had broken off. The plane was also too heavily weighted toward the back, which was also blamed on the pilot. No one answered the phone at Oahu Parachute Center, which advertises its services on a web site saying its jumps offer people "a magical experience." Tandem jumps are featured at prices ranging from $170 to $250. Videos from the company's Facebook page show jumps from the plane that crashed, with customers strapped to employee skydivers jumping out the side door of the aircraft from 10,000 feet (3,000 meters) or higher, with the Pacific Ocean and the Oahu's green mountains far below. Dillingham Airfield is used mostly for skydiving and glider flights. Hawaii shares the airfield with the Army, which uses it for helicopter night-vision training. ___ This story corrects the spelling of witness Steven Tickemyer's last name. ___ Selsky reported from Bend, Oregon. Associated Press writers David Koenig in Dallas and Caleb Jones in Honolulu contributed to this report.
Is SML Isuzu Limited (NSE:SMLISUZU) A Great Dividend Stock? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Could SML Isuzu Limited (NSE:SMLISUZU) 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. With a 0.4% yield and a nine-year payment history, investors probably think SML Isuzu looks like a reliable dividend stock. A low yield is generally a turn-off, but if the prospects for earnings growth were strong, investors might be pleasantly surprised by the long-term results. Some simple analysis can reduce the risk of holding SML Isuzu for its dividend, and we'll focus on the most important aspects below. Explore this interactive chart for our latest analysis on SML Isuzu! Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. 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 22% of SML Isuzu's profits were paid out as dividends in the last 12 months. We like this low payout ratio, because it implies the dividend is well covered and leaves ample opportunity for reinvestment. As SML Isuzu has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA 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 2.89 times its EBITDA, SML Isuzu's debt burden is within a normal range for most listed companies. 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 SML Isuzu, and be aware that lenders may place additional restrictions on the company as well. We update our data on SML Isuzu 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. The first recorded dividend for SML Isuzu, in the last decade, was nine years ago. Although it has been paying a dividend for several years now, the dividend has been cut at least once by more than 20%, and we're cautious about the consistency of its dividend across a full economic cycle. During the past nine-year period, the first annual payment was ₹4.00 in 2010, compared to ₹3.00 last year. The dividend has shrunk at around 3.1% a year during that period. SML Isuzu's dividend hasn't shrunk linearly at 3.1% per annum, but the CAGR is a useful estimate of the historical rate of change. We struggle to make a case for buying SML Isuzu for its dividend, given that payments have shrunk over the past nine years. 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. Earnings have grown at around 2.4% a year for the past five years, which is better than seeing them shrink! As we saw above, earnings per share growth has not been strong. On the plus side, the dividend payout ratio is low and dividends could grow faster than earnings, if the company decides to increase its payout ratio. 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. Firstly, we like that SML Isuzu has low and conservative payout ratios. Unfortunately, earnings growth has also been mediocre, and the company has cut its dividend at least once in the past. SML Isuzu 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. You can also discover whether shareholders are aligned with insider interests bychecking our visualisation of insider shareholdings and trades in SML Isuzu 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.
Does OCL Iron and Steel Limited (NSE:OISL) Have A Volatile Share Price? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! If you're interested in OCL Iron and Steel Limited (NSE:OISL), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. First, we have company specific volatility, which is the price gyrations of an individual stock. Holding at least 8 stocks can reduce this kind of risk across a portfolio. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. Some stocks 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. 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. Check out our latest analysis for OCL Iron and Steel Looking at the last five years, OCL Iron and Steel has a beta of 0.83. The fact that this is well below 1 indicates that its share price movements haven't historically been very sensitive to overall market volatility. If history is a good guide, owning the stock should help ensure that your portfolio is not overly sensitive to market volatility. Beta is worth considering, but it's also important to consider whether OCL Iron and Steel is growing earnings and revenue. You can take a look for yourself, below. OCL Iron and Steel is a rather small company. It has a market capitalisation of ₹1.0b, which means it is probably under the radar of most investors. Companies with market capitalisations around this size often show poor correlation with the broader market because market volatility is overshadowed by company specific events, or other factors. It's worth checking to see how often shares are traded, because very small companies with very low beta values are often only thinly traded. One potential advantage of owning low beta stocks like OCL Iron and Steel is that your overall portfolio won't be too sensitive to overall market movements. However, this can be a blessing or a curse, depending on what's happening in the broader market. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as OCL Iron and Steel’s financial health and performance track record. I highly recommend you dive deeper by considering the following: 1. Financial Health: Are OISL’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 OISL 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 OISL'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 OCL Iron and Steel Limited (NSE:OISL) Impact The Volatility Of Your Portfolio? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! If you own shares in OCL Iron and Steel Limited (NSE:OISL) 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 second type is the broader market volatility, which you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks on the market. Some stocks are more sensitive to general market forces than others. 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. Check out our latest analysis for OCL Iron and Steel Given that it has a beta of 0.83, we can surmise that the OCL Iron and Steel 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). Beta is worth considering, but it's also important to consider whether OCL Iron and Steel is growing earnings and revenue. You can take a look for yourself, below. With a market capitalisation of ₹1.0b, OCL Iron and Steel is a very small company by global standards. It is quite likely to be unknown to most investors. Very small companies often have a low beta value because their share prices are not well correlated with market volatility. This could be because the price is reacting to company specific events. Alternatively, the shares may not be actively traded. Since OCL Iron and Steel 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 OISL is a good investment for you, we also need to consider important company-specific fundamentals such as OCL Iron and Steel’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 OISL’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 OISL 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 OISL'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.
PayPal COO to leave company at end of 2019 PayPal Chief Operating Officer Bill Ready is set to leave the digital payments giant at the end of 2019, the firmannouncedon Thursday. Ready joined PayPal in 2013 when the firm acquired Braintree, a mobile payments system, he led as CEO. Ready rose up the ranks at PayPal, becoming the firm's COO in 2016. After leaving PayPal, Ready will "pursue entrepreneurial interests," the firm's statement notes. “Since joining PayPal six years ago, I have had the privilege of working alongside many incredibly talented people, and I am proud of what we as a leadership team have accomplished together,” said Bill Ready. “The transformative work we are doing has positioned PayPal for success well into the future. I am excited for PayPal’s future and committed to using the coming months to ensure a smooth transition, and support the great team we have at PayPal.” “Bill will always be an important part of the PayPal story,” said Dan Schulman, President and CEO.
Interested In Indo National Limited (NSE:NIPPOBATRY)? Here's How It Performed Recently Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Measuring Indo National Limited's (NSE:NIPPOBATRY) track record of past performance is a useful exercise for investors. It enables us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess NIPPOBATRY's recent performance announced on 31 March 2019 and weigh these figures against its long-term trend and industry movements. Check out our latest analysis for Indo National NIPPOBATRY's trailing twelve-month earnings (from 31 March 2019) of ₹184m has declined by -18% compared to the previous year. Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of -1.0%, indicating the rate at which NIPPOBATRY is growing has slowed down. Why could this be happening? Let's examine what's occurring with margins and whether the rest of the industry is feeling the heat. In terms of returns from investment, Indo National has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. Furthermore, its return on assets (ROA) of 6.4% is below the IN Electrical industry of 7.1%, indicating Indo National's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Indo National’s debt level, has increased over the past 3 years from 7.6% to 10%. Indo National's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that are profitable, but have unpredictable earnings, can have many factors impacting its business. You should continue to research Indo National to get a more holistic view of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for NIPPOBATRY’s future growth? Take a look at ourfree research report of analyst consensusfor NIPPOBATRY’s outlook. 2. Financial Health: Are NIPPOBATRY’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.
Should You Be Worried About Precision Camshafts Limited's (NSE:PRECAM) 2.7% Return On Equity? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. We'll use ROE to examine Precision Camshafts Limited (NSE:PRECAM), by way of a worked example. Precision Camshafts has a ROE of 2.7%, based on the last twelve months. That means that for every ₹1 worth of shareholders' equity, it generated ₹0.027 in profit. View our latest analysis for Precision Camshafts Theformula for return on equityis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Precision Camshafts: 2.7% = ₹161m ÷ ₹6.0b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. It is the capital paid in by shareholders, plus any retained earnings. The easiest way to calculate shareholders' equity is to subtract the company's total liabilities from the total assets. ROE measures a company's profitability against the profit it retains, and any outside investments. The 'return' is the profit over the last twelve months. That means that the higher the ROE, the more profitable the company is. So, as a general rule,a high ROE is a good thing. Clearly, then, one can use ROE to compare different companies. Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. If you look at the image below, you can see Precision Camshafts has a lower ROE than the average (13%) in the Auto Components industry classification. That certainly isn't ideal. We prefer it when the ROE of a company is above the industry average, but it's not the be-all and end-all if it is lower. Nonetheless, it could be useful todouble-check if insiders have sold shares recently. Virtually all companies need money to invest in the business, to grow profits. 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. Precision Camshafts has a debt to equity ratio of 0.31, which is far from excessive. Its ROE is certainly on the low side, and since it already uses debt, we're not too excited about the company. Conservative use of debt to boost returns is usually a good move for shareholders, though it does leave the company more exposed to interest rate rises. Return on equity is one way we can compare the business quality of different companies. In my book the highest quality companies have high return on equity, despite low debt. If two companies have the same ROE, then I would generally prefer the one with less debt. But when a business is high quality, the market often bids it up to a price that reflects this. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. Check the past profit growth by Precision Camshafts by looking at thisvisualization of past earnings, revenue and cash flow. Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Does The Data Make NCL Industries Limited (NSE:NCLIND) An Attractive Investment? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Attractive stocks have exceptional fundamentals. In the case of NCL Industries Limited (NSE:NCLIND), there's is a financially-robust company with a a excellent growth outlook, not yet reflected in the share price. Below, I've touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at thereport on NCL Industries here. NCLIND's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of NCLIND's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, NCLIND's share price is trading below the group's average. This further reaffirms that NCLIND is potentially undervalued. NCLIND is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that NCLIND manages its cash and cost levels well, which is a crucial insight into the health of the company. NCLIND seems to have put its debt to good use, generating operating cash levels of 0.59x 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 NCL Industries, I've put together three essential factors you should further research: 1. Historical Performance: What has NCLIND's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity. 2. Dividend Income vs Capital Gains: Does NCLIND return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Ourhistorical dividend yield visualizationquickly tells you what your can expect from NCLIND as an investment. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of NCLIND? 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.
NCL Industries Limited (NSE:NCLIND) Has Attractive Fundamentals Want to participate in ashort 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 NCL Industries Limited (NSE:NCLIND) due to its excellent fundamentals in more than one area. NCLIND is a financially-robust company with a a excellent future outlook, not yet reflected in the 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 thereport on NCL Industries here. NCLIND is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of NCLIND's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, NCLIND's share price is trading below the group's average. This supports the theory that NCLIND is potentially underpriced. NCLIND'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 NCLIND has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. NCLIND appears to have made good use of debt, producing operating cash levels of 0.59x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. For NCL Industries, there are three fundamental factors you should look at: 1. Historical Performance: What has NCLIND's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity. 2. Dividend Income vs Capital Gains: Does NCLIND return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Ourhistorical dividend yield visualizationquickly tells you what your can expect from NCLIND as an investment. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of NCLIND? 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 Rane Brake Lining Limited's (NSE:RBL) 17% ROE Better Than Average? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. We'll use ROE to examine Rane Brake Lining Limited (NSE:RBL), by way of a worked example. Over the last twelve monthsRane Brake Lining has recorded a ROE of 17%. That means that for every ₹1 worth of shareholders' equity, it generated ₹0.17 in profit. Check out our latest analysis for Rane Brake Lining Theformula for return on equityis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Rane Brake Lining: 17% = ₹365m ÷ ₹2.1b (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 all the money paid into the company from shareholders, plus any earnings retained. The easiest way to calculate shareholders' equity is to subtract the company's total liabilities from the total assets. ROE looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the profit over the last twelve months. A higher profit will lead to a higher ROE. So, as a general rule,a high ROE is a good thing. That means ROE can be used to compare two businesses. By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As is clear from the image below, Rane Brake Lining has a better ROE than the average (13%) in the Auto Components industry. That's clearly a positive. I usually take a closer look when a company has a better ROE than industry peers. For example,I often check if insiders have been 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 two cases, the ROE will capture this use of capital to grow. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. Rane Brake Lining has a debt to equity ratio of just 0.00032, which is very low. The fact that it achieved a fairly good ROE with only modest debt suggests the business might be worth putting on your watchlist. Careful use of debt to boost returns is often very good for shareholders. However, it could reduce the company's ability to take advantage of future opportunities. Return on equity is one way we can compare the business quality of different companies. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have the same ROE, then I would generally prefer the one with less debt. Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So I think it may be worth checking thisfreethisdetailed graphof past earnings, revenue and cash flow. If you would prefer 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. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Can Rane Brake Lining Limited (NSE:RBL) Maintain Its Strong Returns? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! 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 Rane Brake Lining Limited (NSE:RBL), by way of a worked example. Over the last twelve monthsRane Brake Lining has recorded a ROE of 17%. That means that for every ₹1 worth of shareholders' equity, it generated ₹0.17 in profit. See our latest analysis for Rane Brake Lining Theformula for ROEis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Rane Brake Lining: 17% = ₹365m ÷ ₹2.1b (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 all the money paid into the company from shareholders, plus any earnings retained. The easiest way to calculate shareholders' equity is to subtract the company's total liabilities from the total assets. ROE looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the amount earned after tax over the last twelve months. A higher profit will lead to a higher ROE. So, all else equal,investors should like a high ROE. Clearly, then, one can use ROE to compare different companies. By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. Pleasingly, Rane Brake Lining has a superior ROE than the average (13%) company in the Auto Components industry. That's clearly a positive. In my book, a high ROE almost always warrants a closer look. For example,I often check if insiders have been buying shares. 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 used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. While Rane Brake Lining does have a tiny amount of debt, with debt to equity of just 0.00032, we think the use of debt is very modest. Its very respectable ROE, combined with only modest debt, suggests the business is in good shape. 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. In my book the highest quality companies have high return on equity, despite low debt. 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 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 I think it may be worth checking thisfreethisdetailed graphof past earnings, revenue and cash flow. If you would prefer 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. 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's President Xi to attend G20 summit from June 27-29 -Xinhua BEIJING (Reuters) - China's President Xi Jinping will attend the G20 summit in Japan next week, state-run Xinhua news agency said on Sunday, giving the first official confirmation of his attendance at a gathering where he is expected to meet U.S. President Donald Trump. The G20 summit will be held in the city of Osaka on June 27-29. Xinhua did not give further details. Xi's meeting with Trump could be pivotal to getting negotiations back on track to de-escalate the U.S.-China trade war. (Reporting by Tina Qiao and Kevin Yao; Editing by Simon Cameron-Moore)
A Close Look At Cadsys (India) Limited’s (NSE:CADSYS) 21% ROCE Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Today we'll look at Cadsys (India) Limited ( NSE:CADSYS ) and reflect on its potential as an investment. In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. Firstly, we'll go over how we calculate ROCE. Next, we'll compare it to others in its industry. And finally, we'll look at how its current liabilities are impacting its ROCE. What is Return On Capital Employed (ROCE)? ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business. In general, businesses with a higher ROCE are usually better quality. Ultimately, it is a useful but imperfect metric. Renowned investment researcher Michael Mauboussin has suggested that a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'. So, How Do We Calculate ROCE? Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Cadsys (India): 0.21 = ₹144m ÷ (₹748m - ₹72m) (Based on the trailing twelve months to March 2019.) Therefore, Cadsys (India) has an ROCE of 21%. Check out our latest analysis for Cadsys (India) Does Cadsys (India) Have A Good ROCE? ROCE can be useful when making comparisons, such as between similar companies. Cadsys (India)'s ROCE appears to be substantially greater than the 14% average in the IT industry. We consider this a positive sign, because it suggests it uses capital more efficiently than similar companies. Separate from Cadsys (India)'s performance relative to its industry, its ROCE in absolute terms looks satisfactory, and it may be worth researching in more depth. Cadsys (India)'s current ROCE of 21% is lower than 3 years ago, when the company reported a 37% ROCE. This makes us wonder if the business is facing new challenges. Story continues NSEI:CADSYS Past Revenue and Net Income, June 23rd 2019 When considering ROCE, bear in mind that it reflects the past and does not necessarily predict the future. ROCE can be misleading for companies in cyclical industries, with returns looking impressive during the boom times, but very weak during the busts. ROCE is only a point-in-time measure. How cyclical is Cadsys (India)? You can see for yourself by looking at this free graph of past earnings, revenue and cash flow . Do Cadsys (India)'s Current Liabilities Skew Its ROCE? Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that need to be paid within 12 months. Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual. To counter this, investors can check if a company has high current liabilities relative to total assets. Cadsys (India) has total assets of ₹748m and current liabilities of ₹72m. As a result, its current liabilities are equal to approximately 9.6% of its total assets. Low current liabilities have only a minimal impact on Cadsys (India)'s ROCE, making its decent returns more credible. The Bottom Line On Cadsys (India)'s ROCE If it is able to keep this up, Cadsys (India) could be attractive. Cadsys (India) shapes up well under this analysis, but it is far from the only business delivering excellent numbers . You might also want to check this free collection of companies delivering excellent earnings growth. If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them). 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.
Hinduja Global Solutions Limited’s (NSE:HGS) Investment Returns Are Lagging Its Industry Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we are going to look at Hinduja Global Solutions Limited (NSE:HGS) to see whether it might be an attractive investment prospect. In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. First up, we'll look at what ROCE is and how we calculate it. Second, we'll look at its ROCE compared to similar companies. Last but not least, we'll look at what impact its current liabilities have on its ROCE. ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business. In general, businesses with a higher ROCE are usually better quality. Ultimately, it is a useful but imperfect metric. Author Edwin Whitingsaysto be careful when comparing the ROCE of different businesses, since 'No two businesses are exactly alike.' The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Hinduja Global Solutions: 0.099 = ₹2.1b ÷ (₹30b - ₹8.1b) (Based on the trailing twelve months to March 2019.) Therefore,Hinduja Global Solutions has an ROCE of 9.9%. View our latest analysis for Hinduja Global Solutions ROCE can be useful when making comparisons, such as between similar companies. In this analysis, Hinduja Global Solutions's ROCE appears meaningfully below the 14% average reported by the IT industry. This performance is not ideal, as it suggests the company may not be deploying its capital as effectively as some competitors. Independently of how Hinduja Global Solutions compares to its industry, its ROCE in absolute terms is low; especially compared to the ~7.6% available in government bonds. It is likely that there are more attractive prospects out there. When considering this metric, keep in mind that it is backwards looking, and not necessarily predictive. ROCE can be deceptive for cyclical businesses, as returns can look incredible in boom times, and terribly low in downturns. ROCE is, after all, simply a snap shot of a single year. Future performance is what matters, and you can see analyst predictions in ourfreereport on analyst forecasts for the company. Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE. To counter this, investors can check if a company has high current liabilities relative to total assets. Hinduja Global Solutions has total assets of ₹30b and current liabilities of ₹8.1b. Therefore its current liabilities are equivalent to approximately 27% of its total assets. This is not a high level of current liabilities, which would not boost the ROCE by much. While that is good to see, Hinduja Global Solutions has a low ROCE and does not look attractive in this analysis. Of course,you might also be able to find a better stock than Hinduja Global Solutions. So you may wish to see thisfreecollection of other companies that have grown earnings strongly. If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Estimating The Intrinsic Value Of IZMO Limited (NSE:IZMO) Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! How far off is IZMO Limited (NSE:IZMO) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by estimating the company's future cash flows and discounting them to their present value. I will use 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 IZMO We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. 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. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: [{"": "Levered FCF (\u20b9, Millions)", "2019": "\u20b986.91", "2020": "\u20b997.41", "2021": "\u20b9107.86", "2022": "\u20b9118.40", "2023": "\u20b9129.19", "2024": "\u20b9140.35", "2025": "\u20b9152.01", "2026": "\u20b9164.30", "2027": "\u20b9177.32", "2028": "\u20b9191.17"}, {"": "Growth Rate Estimate Source", "2019": "Est @ 14.03%", "2020": "Est @ 12.09%", "2021": "Est @ 10.73%", "2022": "Est @ 9.77%", "2023": "Est @ 9.11%", "2024": "Est @ 8.64%", "2025": "Est @ 8.31%", "2026": "Est @ 8.08%", "2027": "Est @ 7.92%", "2028": "Est @ 7.81%"}, {"": "Present Value (\u20b9, Millions) Discounted @ 20.88%", "2019": "\u20b971.90", "2020": "\u20b966.67", "2021": "\u20b961.07", "2022": "\u20b955.46", "2023": "\u20b950.06", "2024": "\u20b944.99", "2025": "\u20b940.32", "2026": "\u20b936.05", "2027": "\u20b932.19", "2028": "\u20b928.71"}] Present Value of 10-year Cash Flow (PVCF)= ₹487.41m "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 7.6%. We discount the terminal cash flows to today's value at a cost of equity of 20.9%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = ₹191m × (1 + 7.6%) ÷ (20.9% – 7.6%) = ₹1.5b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= ₹₹1.5b ÷ ( 1 + 20.9%)10= ₹231.67m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is ₹719.08m. 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 ₹54.97. Relative to the current share price of ₹45.85, the company appears about fair value at a 17% 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 IZMO 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 20.9%, which is based on a levered beta of 1.55. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Although the valuation of a company is important, it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For IZMO, There are three further factors you should further research: 1. Financial Health: Does IZMO 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 IZMO? 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 NSE 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.
A Look At The Intrinsic Value Of IZMO Limited (NSE:IZMO) Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we'll do a simple run through of a valuation method used to estimate the attractiveness of IZMO Limited (NSE:IZMO) as an investment opportunity by projecting its future cash flows and then discounting them to today's value. I will be 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. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model. See our latest analysis for IZMO We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To start off with, we need to estimate 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": "\u20b986.91", "2020": "\u20b997.41", "2021": "\u20b9107.86", "2022": "\u20b9118.40", "2023": "\u20b9129.19", "2024": "\u20b9140.35", "2025": "\u20b9152.01", "2026": "\u20b9164.30", "2027": "\u20b9177.32", "2028": "\u20b9191.17"}, {"": "Growth Rate Estimate Source", "2019": "Est @ 14.03%", "2020": "Est @ 12.09%", "2021": "Est @ 10.73%", "2022": "Est @ 9.77%", "2023": "Est @ 9.11%", "2024": "Est @ 8.64%", "2025": "Est @ 8.31%", "2026": "Est @ 8.08%", "2027": "Est @ 7.92%", "2028": "Est @ 7.81%"}, {"": "Present Value (\u20b9, Millions) Discounted @ 20.88%", "2019": "\u20b971.90", "2020": "\u20b966.67", "2021": "\u20b961.07", "2022": "\u20b955.46", "2023": "\u20b950.06", "2024": "\u20b944.99", "2025": "\u20b940.32", "2026": "\u20b936.05", "2027": "\u20b932.19", "2028": "\u20b928.71"}] Present Value of 10-year Cash Flow (PVCF)= ₹487.41m "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 7.6%. We discount the terminal cash flows to today's value at a cost of equity of 20.9%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = ₹191m × (1 + 7.6%) ÷ (20.9% – 7.6%) = ₹1.5b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= ₹₹1.5b ÷ ( 1 + 20.9%)10= ₹231.67m 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 ₹719.08m. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of ₹54.97. Compared to the current share price of ₹45.85, the company appears about fair value at a 17% 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. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at IZMO 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 20.9%, which is based on a levered beta of 1.55. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Whilst important, DCF calculation shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For IZMO, I've put together three important factors you should look at: 1. Financial Health: Does IZMO 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 IZMO? 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.
Kushner's economic plan for Mideast peace faces broad Arab rejection By Stephen Kalin, Suleiman Al-Khalidi and Mohamed Abdellah RIYADH/AMMAN/CAIRO (Reuters) - Arab politicians and commentators greeted U.S. President Donald Trump's $50 billion Middle East economic vision with a mixture of derision and exasperation, although some in the Gulf called for it to be given a chance. In Israel, Tzachi Hanegbi, a Cabinet member close to Prime Minister Benjamin Netanyahu, described Palestinians' rejection of the "peace to prosperity" plan as tragic. Set to be presented by Trump's son-in-law, Jared Kushner, at a conference in Bahrain on Tuesday and Wednesday, the blueprint envisions a global investment fund to lift the Palestinian and neighbouring Arab economies and is part of broader efforts to revive the Israeli-Palestininan peace process. "We don't need the Bahrain meeting to build our country, we need peace, and the sequence of (the plan) - economic revival followed by peace is unrealistic and an illusion," Palestinian Finance Minister Shukri Bishara said on Sunday. The lack of a political solution, which Washington has said would be unveiled later, prompted rejection not only from Palestinians but in Arab countries with which Israel would seek normal relations. From Sudan to Kuwait, commentators and citizens denounced Kushner's proposals in strikingly similar terms: "colossal waste of time," "non-starter," "dead on arrival." Egyptian liberal and leftist parties slammed the conference as an attempt to "consecrate and legitimise" occupation of Arab land and said in a joint statement that any Arab participation would be "beyond the limits of normalisation" with Israel. While the precise outline of the political plan has been shrouded in secrecy, officials briefed on it say Kushner has jettisoned the two-state solution - the long-standing worldwide formula that envisages an independent Palestinian state alongside Israel in the West Bank, East Jerusalem and Gaza. 'ANOTHER TRAGEDY' The Palestinian Authority is boycotting the Bahrain meeting, saying only a political solution will solve the problem. It said Kushner's "abstract promises" were an attempt to bribe Palestinians into accepting Israeli occupation. The White House has not invited the Israeli government to Bahrain. On Israel Radio, Hanegbi said Washington had tried to create "a little more trust and positivity" by presenting an economic vision but had touched a raw nerve for Palestinians. "They are still convinced that the whole matter of an economic peace is a conspiracy, aimed only at plying them with funds for projects and other goodies only so they will forget their nationalist aspirations. This is of course just paranoia, but it's another tragedy for the Palestinians," he said. U.S.-allied Gulf states, including Saudi Arabia and the United Arab Emirates, will take part in the Bahrain gathering along with officials from Egypt, Jordan and Morocco. Saudi Arabia's minister of state for foreign affairs, Adel Jubeir, said anything that improves the Palestinians' situation should be welcomed but that addressing the political process in resolving the conflict with Israel was "extremely important". "The Palestinians are the ones who have the ultimate decision in this, because it's their issue and so whatever the Palestinians accept, I believe everybody else will accept," he said on Sunday in an interview with broadcaster France 24. Lebanon and Iraq will not attend the conference. "Those who think that waving billions of dollars can lure Lebanon, which is under the weight of a suffocating economic crisis, into succumbing or bartering over its principles are mistaken," the parliament speaker, Nabih Berri, said. Lebanon's Iranian-backed Shi'ite group Hezbollah, which wields significant influence over the government, previously called the plan "a historic crime" that must be stopped. Thousands of people marched through the Moroccan capital, Rabat, on Sunday to express their solidarity with the Palestinians and their opposition to Kushner's plan. "We came here to speak in one voice as Moroccans and express our rejection of all conspiracies that target the Palestinian cause," Slimane Amrani, vice secretary general of the kingdom's co-ruling Islamist PJD party, told Reuters. Arab analysts believe Kushner's economic plan is an attempt to buy off opposition to Israel's occupation of Palestinian land with a multibillion-dollar bribe to pay off the neighbouring hosts of millions of Palestinian refugees to integrate them. After Israel’s creation in 1948, Jordan, Syria and Lebanon absorbed the most Palestinian refugees, with some estimates that they now account for around 5 million. 'NO HARM IN LISTENING' In recent years, Iran's bitter rivalry with a bloc led by Sunni Muslim Saudi Arabia has increasingly pushed the Arab-Israeli struggle into the background. While Riyadh and its allies have welcomed Trump's harder line against Tehran, which has cast itself as the guardian of Palestinian rights, critics accuse Saudi Arabia, the custodian of Islam's holiest places, of abandoning the Palestinians. Muslim scholars in the region, who would have in the past rallied popular opinion in support of the Palestinians, were largely silent hours after the plan was released, in a sign of a crackdown on dissent in several Arab countries. Saudi Arabia has detained several prominent clerics in an apparent move to silence potential opponents of the kingdom's absolute rulers. Egypt's top Sunni Muslim authority, al-Azhar, has yet to issue a statement. Ali Shihabi, who heads the Arabia Foundation, which supports Saudi policies, said the Palestinian Authority was wrong to reject the plan out of hand. "It should accept it and work on delivering the benefits to its people and then move forward aggressively with non-violent work ... to seek political rights," he tweeted. Emirati businessman Khalaf Ahmad al-Habtoor also criticised the Palestinians' refusal to go to Bahrain. "There is no harm in listening to what will be placed on the table," he wrote last month. Yet even in the Gulf, backing for Kushner's plan is limited. "The deal of the century is a ... one-sided concession, the Arab side, while the occupier wins everything: land, peace and Gulf money," said Kuwaiti parliamentarian Osama Al-Shaheen. (Reporting by Stephen Kalin in Riyadh; Mohammed Abdellah, Amina Ismail, Nadine Awadalla and Mahmoud Mourad in Cairo, Suleiman al-Khalidi in Amman; Samia Nakhoul, Tom Perry and Ellen Francis in Beirut, Ghaida Ghantous, Alexander Cornwell, Hadeel Al Sayegh, Sylvia Westall and Aziz El Yaakoubi in Dubai, Eric Knecht in Doha, Michael Georgy in Khartoum, Ahmed Hagagy in Kuwait and Jeffrey Heller in Jerusalem; Writing by Stephen Kalin; Editing by Samia Nakhoul, Keith Weir, Gareth Jones and Peter Cooney)
AP sources: US struck Iranian military computers this week WASHINGTON (AP) — U.S. military cyber forces launched a strike against Iranian military computer systems on Thursday as President Donald Trump backed away from plans for a more conventional military strike in response to Iran's downing of a U.S. surveillance drone, U.S. officials said Saturday. Two officials told The Associated Press that the strikes were conducted with approval from Trump. A third official confirmed the broad outlines of the strike. All spoke on condition of anonymity because they were not authorized to speak publicly about the operation. The cyberattacks — a contingency plan developed over weeks amid escalating tensions — disabled Iranian computer systems that controlled its rocket and missile launchers, the officials said. Two of the officials said the attacks, which specifically targeted Iran's Islamic Revolutionary Guard Corps computer system, were provided as options after Iranian forces blew up two oil tankers earlier this month. The IRGC, which was designated a foreign terrorist group by the Trump administration earlier this year, is a branch of the Iranian military. The action by U.S. Cyber Command was a demonstration of the U.S.'s increasingly mature cyber military capabilities and its more aggressive cyber strategy under the Trump administration. Over the last year U.S. officials have focused on persistently engaging with adversaries in cyberspace and undertaking more offensive operations. There was no immediate reaction Sunday morning in Iran to the U.S. claims. Iran has hardened and disconnected much of its infrastructure from the internet after the Stuxnet computer virus, widely believed to be a joint U.S.-Israeli creation, disrupted thousands of Iranian centrifuges in the late 2000s. Tensions have escalated between the two countries ever since the U.S. withdrew last year from the 2015 nuclear deal with Iran and began a policy of "maximum pressure." Iran has since been hit by multiple rounds of sanctions. Tensions spiked this past week after Iran shot down an unmanned U.S. drone — an incident that nearly led to a U.S. military strike against Iran on Thursday evening. Story continues The cyberattacks are the latest chapter in the U.S. and Iran's ongoing cyber operations targeting the other. Yahoo News first reported the cyber strike. In recent weeks, hackers believed to be working for the Iranian government have targeted U.S. government agencies, as well as sectors of the economy, including finance, oil and gas, sending waves of spear-phishing emails, according to representatives of cybersecurity companies CrowdStrike and FireEye, which regularly track such activity. This new campaign appears to have started shortly after the Trump administration imposed sanctions on the Iranian petrochemical sector this month. It was not known if any of the hackers managed to gain access to the targeted networks with the emails, which typically mimic legitimate emails but contain malicious software. Tensions have run high between the two countries since the U.S. withdrew from the 2015 nuclear deal with Iran last year and began a policy of "maximum pressure." Iran has since been hit by multiple rounds of sanctions. Then Iran shot down an unmanned U.S. drone this week. "Both sides are desperate to know what the other side is thinking," said John Hultquist, director of intelligence analysis at FireEye. "You can absolutely expect the regime to be leveraging every tool they have available to reduce the uncertainty about what's going to happen next, about what the U.S.'s next move will be." CrowdStrike shared images of the spear-phishing emails with the AP. One such email that was confirmed by FireEye appeared to come from the Executive Office of the President and seemed to be trying to recruit people for an economic adviser position. Another email was more generic and appeared to include details on updating Microsoft Outlook's global address book. The Iranian actor involved in the cyberattack, dubbed "Refined Kitten" by CrowdStrike, has for years targeted the U.S. energy and defense sectors, as well as allies such as Saudi Arabia and the United Arab Emirates, said Adam Meyers, vice president of intelligence at CrowdStrike. The Department of Homeland Security said in a statement released Saturday that its agency tasked with infrastructure security has been aware of a recent rise in malicious cyber activities directed at U.S. government agencies by Iranian regime actors and proxies. Cybersecurity and Infrastructure Security Agency Director Christopher C. Krebs said the agency has been working with the intelligence community and cybersecurity partners to monitor Iranian cyber activity and ensure the U.S. and its allies are safe. "What might start as an account compromise, where you think you might just lose data, can quickly become a situation where you've lost your whole network," Krebs said. The National Security Agency would not discuss Iranian cyber actions specifically, but said in a statement to the AP on Friday that "there have been serious issues with malicious Iranian cyber actions in the past." "In these times of heightened tensions, it is appropriate for everyone to be alert to signs of Iranian aggression in cyberspace and ensure appropriate defenses are in place," the NSA said. Iran has long targeted the U.S. oil and gas sectors and other critical infrastructure, but those efforts dropped significantly after the nuclear agreement was signed. After Trump withdrew the U.S. from the deal in May 2018, cyber experts said they have seen an increase in Iranian hacking efforts. "This is not a remote war (anymore)," said Sergio Caltagirone, vice president of threat intelligence at Dragos Inc. "This is one where Iranians could quote unquote bring the war home to the United States." Caltagirone said as nations increase their abilities to engage offensively in cyberspace, the ability of the United States to pick a fight internationally and have that fight stay out of the United States physically is increasingly reduced. The U.S. has had a contentious cyber history with Iran. In 2010, the so-called Stuxnet virus disrupted the operation of thousands of centrifuges at a uranium enrichment facility in Iran. Iran accused the U.S. and Israel of trying to undermine its nuclear program through covert operations. Iran has also shown a willingness to conduct destructive campaigns. Iranian hackers in 2012 launched an attack against state-owned oil company Saudi Aramco, releasing a virus that erased data on 30,000 computers and left an image of a burning American flag on screens. In 2016, the U.S. indicted Iranian hackers for a series of punishing cyberattacks on U.S. banks and a small dam outside of New York City. The Defense Department refused to comment on the latest Iranian activity. "As a matter of policy and for operational security, we do not discuss cyberspace operations, intelligence or planning," Pentagon spokeswoman Heather Babb said in a statement. The White House did not respond to a request for comment. Despite the apparent cyber campaign, experts say the Iranians would not necessarily immediately exploit any access they gain into computer systems and may seek to maintain future capabilities should their relationship with the U.S. further deteriorate. "It's important to remember that cyber is not some magic offensive nuke you can fly over and drop one day," said Oren Falkowitz, a former National Security Agency analyst. It takes years of planning, he said, but as tensions increase, "cyber impact is going to be one of the tools they use and one of the hardest things to defend against." ___ Associated Press writer Lolita C. Baldor in Washington and Jon Gambrell in Dubai contributed to this report. Follow Tami Abdollah on Twitter at https://twitter.com/latams
How Do Fourth Dimension Solutions Limited’s (NSE:FOURTHDIM) Returns Compare To Its Industry? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we are going to look at Fourth Dimension Solutions Limited (NSE:FOURTHDIM) to see whether it might be an attractive investment prospect. Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. First up, we'll look at what ROCE is and how we calculate it. Next, we'll compare it to others in its industry. Last but not least, we'll look at what impact its current liabilities have on its ROCE. ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business. In general, businesses with a higher ROCE are usually better quality. In brief, it is a useful tool, but it is not without drawbacks. Author Edwin Whitingsaysto be careful when comparing the ROCE of different businesses, since 'No two businesses are exactly alike.' Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Fourth Dimension Solutions: 0.10 = ₹107m ÷ (₹3.2b - ₹2.2b) (Based on the trailing twelve months to March 2019.) Therefore,Fourth Dimension Solutions has an ROCE of 10%. See our latest analysis for Fourth Dimension Solutions When making comparisons between similar businesses, investors may find ROCE useful. In this analysis, Fourth Dimension Solutions's ROCE appears meaningfully below the 14% average reported by the IT industry. This could be seen as a negative, as it suggests some competitors may be employing their capital more efficiently. Regardless of how Fourth Dimension Solutions stacks up against its industry, its ROCE in absolute terms is quite low (especially compared to a bank account). Readers may wish to look for more rewarding investments. Fourth Dimension Solutions's current ROCE of 10% is lower than 3 years ago, when the company reported a 61% ROCE. Therefore we wonder if the company is facing new headwinds. When considering this metric, keep in mind that it is backwards looking, and not necessarily predictive. Companies in cyclical industries can be difficult to understand using ROCE, as returns typically look high during boom times, and low during busts. ROCE is, after all, simply a snap shot of a single year. You can check if Fourth Dimension Solutions has cyclical profits by looking at thisfreegraph of past earnings, revenue and cash flow. Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that need to be paid within 12 months. The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. To check the impact of this, we calculate if a company has high current liabilities relative to its total assets. Fourth Dimension Solutions has total liabilities of ₹2.2b and total assets of ₹3.2b. Therefore its current liabilities are equivalent to approximately 68% of its total assets. This is a fairly high level of current liabilities, boosting Fourth Dimension Solutions's ROCE. Fourth Dimension Solutions's ROCE is also pretty low (in absolute terms), making the stock look unattractive on this analysis. But note:make sure you look for a great company, not just the first idea you come across.So take a peek at thisfreelist of interesting companies with strong recent earnings growth (and a P/E ratio below 20). If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Don't Sell Navneet Education Limited (NSE:NAVNETEDUL) Before You Read This Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). We'll apply a basic P/E ratio analysis to Navneet Education Limited's (NSE:NAVNETEDUL), to help you decide if the stock is worth further research. Based on the last twelve months,Navneet Education's P/E ratio is 15.96. That corresponds to an earnings yield of approximately 6.3%. Check out our latest analysis for Navneet Education Theformula for P/Eis: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Navneet Education: P/E of 15.96 = ₹105.35 ÷ ₹6.6 (Based on the year to March 2019.) A higher P/E ratio implies that investors paya higher pricefor the earning power of the business. 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. P/E ratios primarily reflect market expectations around earnings growth rates. Earnings growth means that in the future the 'E' will be higher. Therefore, even if you pay a high multiple of earnings now, that multiple will become lower in the future. And as that P/E ratio drops, the company will look cheap, unless its share price increases. It's great to see that Navneet Education grew EPS by 21% in the last year. And earnings per share have improved by 6.4% annually, over the last five years. So one might expect an above average P/E ratio. The P/E ratio essentially measures market expectations of a company. You can see in the image below that the average P/E (15.2) for companies in the media industry is roughly the same as Navneet Education's P/E. Its P/E ratio suggests that Navneet Education shareholders think that in the future it will perform about the same as other companies in its industry classification. The company could surprise by performing better than average, in the future. I inform my view byby checking management tenure and remuneration, among other things. It's important to note that the P/E ratio considers the market capitalization, not the enterprise value. So it won't reflect the advantage of cash, or disadvantage of debt. Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings. 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. Navneet Education has net debt worth 13% of its market capitalization. That's enough debt to impact the P/E ratio a little; so keep it in mind if you're comparing it to companies without debt. Navneet Education trades on a P/E ratio of 16, which is fairly close to the IN market average of 15.5. When you consider the impressive EPS growth last year (along with some debt), it seems the market has questions about whether rapid EPS growth will be sustained. Since analysts are predicting growth will continue, one might expect to see a higher P/E soit may be worth looking closer. Investors should be looking to buy stocks that the market is wrong about. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' So thisfreevisual report on analyst forecastscould hold the key to an excellent investment decision. You might be able to find a better buy than Navneet Education. If you want a selection of possible winners, check out thisfreelist of interesting companies that trade on a P/E below 20 (but have proven they can grow earnings). We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Why FedEx and Amazon Are Breaking Up As Amazon.com (NASDAQ: AMZN) brings more and more of its logistics in-house, the companies that provide it with logistic services get squeezed. Apparently, FedEx (NYSE: FDX) has had enough. In this week's Industry Focus: Energy , host Nick Sciple and Motley Fool contributor Dan Kline explore why these two companies are splitting up, what it means for their futures, and what it says about FedEx's main competitor, UPS (NYSE: UPS) . Find out what other avenues FedEx is expanding into, why UPS has such a bleak outlook, what Amazon's logistics picture looks like today, why the logistics industry can't get as many pilots as it needs, where the U.S. Postal Service fits into all this, and more. To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center . A full transcript follows the video. More From The Motley Fool 10 Best Stocks to Buy Today The $16,728 Social Security Bonus You Cannot Afford to Miss 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) What Is an ETF? 5 Recession-Proof Stocks How to Beat the Market This video was recorded on June 20, 2019. Nick Sciple: Welcome to Industry Focus , the podcast that dives into a different sector of the stock market every day. Today is Thursday, June 20, and we're discussing FedEx and Amazon. I'm your host Nick Sciple, and today I'm joined by Motley Fool contributor Dan Kline via Skype. How are you doing, Dan? Dan Kline: Oh, I'm good! How are you, Nick? Sciple: I'm doing great! Dan, you're all over the place this week. You're on the Tuesday show with Shannon Jones. Kline: I was. Sciple: How are you such a diverse and just well-rounded guest on all these podcasts? What do I have to do to be like Dan Kline? Kline: Well, you have to be here for six years. I've covered a lot of things. And honestly, I am one of the few people that bounces between the different shows, but it's really because things like what we're going to talk about today, Amazon and FedEx, that could easily be a different angle and be a Consumer Goods show. It isn't that I cover so many diverse things. It's that some of the companies I cover -- Amazon could probably be a Healthcare show, though they've never had me on the Healthcare show. Story continues Sciple: I sense a little a little bit of pangs there, Dan. There's that one last one. You haven't completed the Infinity Gauntlet of the Industry Focus shows. Kline: Yeah, I've only got four of the rings. I need the fifth one. I think next week I'll be doing MarketFoolery when I'm in the office. I'm all over the place! Sciple: Yeah, there you go. Well, as you teased there, we're talking about FedEx and Amazon. On June 7, FedEx announced a strategic decision to not renew its FedEx Express U.S. domestic contract with Amazon. FedEx says that they intend to focus on the broader e-commerce market. They believe there's significant demand and opportunity for growth in e-commerce. They intend to serve those retailers outside of Amazon. When you saw this news, Dan, what was your first reaction to hearing that FedEx is breaking up with Amazon? Kline: Do you have any couple of friends that, when you go out to dinner with them, you can tell they're going to get divorced at some point or break up, and maybe they don't know it? This is one of those relationships. Amazon was never that big of a FedEx customer. It's about 1.3% of FedEx's revenue. It was always like, "Yeah, we'll work together, but we'll use the Post Office or UPS first." And for FedEx, this is one of those, if you're not going to have a major chunk of your business come from Amazon, you're better off going to Walmart and Target and all the other big retailers out there and saying: "Look, we don't deal with Amazon. They don't know any of our secret sauce. They don't have any special pricing. We want to work with you." So, this makes them more palatable. Sciple: Yeah. I was talking about before the show, for our listeners who listen every week to Industry Focus , a couple of weeks ago, I talked with Tim Beyers, we talked about Redfin , which is an online real estate brokerage service. This is a company that announced a new offering that led to RE/MAX , which is another big nationwide brokerage firm, to end its partnership with Redfin. And we said then that this is one of those things, the path that Redfin was taking, sooner or later, it was going to be antagonistic to these other brokers that we were going to have this breakup take place. That's what took place for Redfin. I think that's what it took place for Amazon as they pushed into e-commerce and became more vertically integrated in logistics and showed that was a clear intent of the path of business going forward. Sooner or later, they were going to become antagonistic to FedEx or maybe UPS eventually that this breakup had to happen. We've seen some analysts say the same thing. Ravi Shanker from Morgan Stanley said, "We believe FedEx's strategic break up with Amazon is a watershed moment for the parcel industry that signals Amazon's emergence as a significant player in the industry and brings a new level of risk to numbers at both UPS and FedEx." Dan, when you see this shift in the industry, are you concerned for UPS and FedEx going forward? Kline: I'm not worried about FedEx. This is FedEx saying, "You weren't that important to us anyway. We'll give up this 1.3% of our business in order to be able to work with many other people." They expect the size of this business to double from 50 million to 100 million packages a day by 2026. If you're FedEx, you're basically saying, "We're not going to let any one company become too important to us." Now, UPS, I'm absolutely worried for UPS. Roughly 26% of their business is from Amazon. If Amazon keeps ramping up its shipping business, which is something they've been doing and are going to continue to do, and they say to UPS, "Hey, we don't need you quite as much. We can do a lot of this on our own," that is a material irreplaceable part of their business. UPS is in so far, I don't know that they can even get out of it. And yeah, eventually, Amazon is either going to crush them or buy them. Sciple: Yeah, you can look at a chart -- you sent this over to me, Dan. Wolfe Research had this chart out. In 2013, UPS was 49% of Amazon's shipping business. Today, in 2018, their numbers have UPS being 22%, with much of that market share being taken away by Amazon, which now represents 26% of the logistics that are run through that website. Obviously, in the near term, this is going to be a benefit to UPS. Only UPS and FedEx have these express networks, which is the business that FedEx pulled. But as you say, Amazon is pushing more into logistics. They want to put more logistics in-house because it's less expensive to them than fulfilling orders through UPS and FedEx. And they have called out specifically in their filings that the transportation and logistics services are an area in which they compete. Amazon has been making some recent investments in these areas to build out their presence. Can you talk about that a little bit, Dan, and what that means for the company? Kline: Amazon has been investing everywhere from last mile -- we've talked about their van network, where they're literally getting entrepreneurs to lease vans, helping them do that, and doing last mile delivery. Then, they're massively building out their plane fleet. That's where they're encroaching on what these other companies are doing. In addition to that, of course, they have their trucking fleet. They're actually selling space against UPS and FedEx. Amazon isn't just delivering its own stuff, it's become a full-fledged shipping company. It wants to control as much of its own process as it can. That includes testing things like building new, smaller warehouses, shipping out of Whole Foods stores, maybe shipping out of some Kohl's locations where it has a partnership. This is something that you're outsourcing it, you see that you're spending more money, and they are building as fast as they can possibly build, but they are hitting some brick walls in that. We've done shows about the trucking shortage. It's hard to hire truck drivers. It's also incredibly difficult to hire pilots. Sciple: Right. That's been one issue with Amazon scaling up. You have to have enough pilots to fly all these planes. Particularly when you're shoving in, becoming a third player in this logistics market, you need to hire some pilots away. Amazon has struggled to build up its cargo airline. You sent me some stats, Amazon can only run 6.6 revenue air hours per day compared to around 18 for UPS and 14.5 for FedEx. That's due to crew efficiencies. Can you talk a little bit about what about bringing new pilots into this market is really causing a bottleneck in the amount of human capital you have to scale up? Kline: There's a disconnect in how you become a pilot. In order to become a pilot, you have to go to pilot training school. Then you have to put in a certain amount of flight hours working for smaller airlines before you can fly the bigger routes, the bigger planes. While you're going through that period, not only are you spending $100,000 or more on pilot school, your first few years of working, you're making a very low salary. Even though being an airline pilot for Southwest or Delta is a very good job, you make a lot of money, it takes a lot of investment to get there. The other problem we have is that in most cases, companies want pilots -- I don't know if Amazon requires this or not -- to also have four-year degrees. So, in addition to having to go to pilot school, they also have to go to college. This is causing a huge shortage of pilots, which is going to be exacerbated by the fact that there's a mandatory retirement age for pilots at 65. Now, honestly, the best way to solve this in the short term is make the mandatory retirement age 70 and have increased testing and licensing procedures in the five years in between there. But if you're Amazon, you're competing against maybe cushier jobs, maybe higher paying jobs, and hitting the wall of, no matter what you pay, there's simply not enough people who know how to do this. Sciple: Yeah. Something to follow. As we see clear demand for more fulfillment services from companies like Amazon and others, to make that happen, we're going to need humans to fly these planes, at least in the near term. Maybe at some point in time, we'll have a robot that can take off and land. But at least in the near term, we're going to need to have people. Kline: I think we could automate plane flight. I think there's such public sentiment against it. It's like the automated driving. Let's say, for every hundred accidents that would happen with human drivers, there's only one with automated drivers. It doesn't work, it has to be zero. Even if using automated planes dramatically cuts down on crashes, until they can guarantee zero, the publicity simply isn't going to work. Amazon, the first thing they have to do, is get more efficient. You talked about how many fewer working hours they get. That's a practice of time. The more time they do it, the more they're going to refine their process. The bigger they are, the easier it's going to be for them hire experienced people who can smooth those things out. If you look at where they are now, and where the top of the industry is, they can basically get three times more efficient. Amazon has shown with shipping that it will eventually get there. Sciple: Yeah. Clearly, this is something that Amazon's interested in getting more and more involved with. We're going to continue to follow the story. This is the third or fourth time we've had you on the show to talk about this, Dan. We'll continue to bring this to ground. OK, Dan, now let's talk a little bit about what opportunities there might be for FedEx as they expand to offering services to other e-commerce sellers and retailers. They've expanded some of their offerings this year. They introduced their extra hours program to help retailers fulfill online late night orders. And as you mentioned, there are some bigger growth opportunities arguably outside of Amazon in e-commerce than there are within Amazon. Can you talk about what those opportunities are and how FedEx is moving to serve those businesses? Kline: Basically, FedEx has positioned itself as the un-Amazon. That's a smart place to be. As big as Amazon is, it isn't all of retail. Let's look at the major competitors, which in terms of most stuff would be Walmart and Target. If you're Walmart and Target, you don't want to use Amazon, certainly, even though you technically could. You also don't want to use any company that's cozied up to Amazon, partly because you'd be less of a priority in most cases, and you just don't know how that data is being shared, what's being used, what's being implicitly shared, and what's being accidentally shared. This is a way for FedEx to say, "Hey, we're not working with your competition. We're on your side. We're going to come in and help you do this the best way you can." For example, they're adding Sunday delivery. One of Amazon's Prime advantages is that they do two-day, and now one-day delivery, and Sundays are included. Well, Walmart doesn't have that. Target doesn't have that. They have it on a same-day basis, in some cases, in some markets. But now, through FedEx, they can roll out that service. They can add. If you look at the sizes, Amazon is growing I think 13.5%, and it's like 30%, so about triple that, for Walmart and Target. There's more growth potential outside of Amazon than there is inside of Amazon because every retailer that isn't Amazon is probably going to look at FedEx as a first solution now. Sciple: Yeah, that's a huge opportunity when you realize that outside of Amazon, there's faster growth for a company like FedEx to add services to them. As you mentioned, Walmart has been competing really back and forth with Amazon when it comes to this one-day shipping offering. Before that, they were competing for who could get to two-day shipping without a fee. FedEx has really expanded their relationship with Walmart. Last year, they announced they opened 500 offices inside of Walmart stores. They're also moving with other retailers as well. They announced a deal this week with Dollar General where they're going to install facilities in Dollar General stores to offer drop-off and pick-up services for FedEx packages. They plan to roll that out to 1,500 Dollar General stores in the late summer 2019. By the end of 2020, they plan to have that in 8,000 stores. Obviously, a huge opportunity there. When you look at the areas where Dollar General is located, these are markets that tend to be underserved. When you look at that opportunity, how significant do you think that could be for FedEx? Kline: I think it's huge. You're an individual, do you have a favorite package delivery company? Sciple: Whoever's the easiest and cheapest for me to get to. Kline: Exactly. I feel the same way. I had to mail my brother his mail. I was his forwarding address for a few months while he was in between jobs. I went to a UPS Store. Is it because I have any loyalty to UPS? No, it's because the parking at the UPS store is easier than the parking at the FedEx location near me. If I could go to Dollar General, we have a Dollar General near our other home in the Orlando area, which is about a mile walking, if I could go there and drop off for FedEx, am I going to haunt down a UPS location because they might be a little cheaper or find a Post Office? No, I'm going to go to whatever the easiest place is. So, putting yourself at up to 8,000 Dollar Generals -- and I think that number's low because Dollar General opens 1,000 stores every year, so it seems very logical that any new store they open will have this -- it's a huge opportunity to collect business. And what are you adding? All you're adding is pickups on existing routes. This is almost no cost for FedEx, and it's probably a significant amount of incremental business, especially during the holiday season. Sciple: Yeah. FedEx did not break up with Amazon without any other plans for what they might be able to move into. Clear opportunity there with the Dollar General stores. And, as well this week, and we don't know if there's a clear relationship here with FedEx, but we've seen Shopify -- you talk about Dollar General, Walmart, Target, they seem like these lazy, older businesses. Well, Shopify is moving into physical distribution and fulfillment, announcing yesterday at their investor day that they're going to offer customers access to a network of dedicated U.S. fulfillment centers to store and ship consumer goods for online orders. They're going to use machine learning to forecast demand and allocate inventory to route orders to the closest fulfillment centers. And they're going to be working with logistics providers to make that happen. Obviously, as you see Shopify, which is a company that aggregates a lot of small sellers together to offer logistic services, that's another opportunity for FedEx. Do you think that's going to be a bigger trend over time? Do you see all these small sellers uniting together through Shopify and other offerings to maybe bring down the cost of their logistics operations? Kline: I do see this as an opportunity for FedEx. But if you're on the Shopify platform, you have the ability to make shipping a service. And what Shopify does is, it matches what you're shipping with the best provider. Now, could FedEx go in and make a deal so it's the best provider more often? Could it have staffing at these warehouse distribution center locations? There's a huge opportunity here. Basically, any platform -- we saw this with Stamps.com at Shop Talk earlier this year -- any platform that businesses are using has to integrate shipping and logistics because you're competing with what was a two-day standard, that's becoming a one-day standard. If you and I have a regional company, let's say we sell, I don't know, model trains that we make ourselves. The standard for the consumer is going to be, "I get it in two days." They're not going to wait for two weeks because I could save $1.50 by shipping it in two weeks. Everything is going to have to get Amazon-level efficient, down to some pretty small companies, and a Shopify can do that. FedEx can certainly come in and help make that happen. Sciple: Taking all this together more broadly, in the near term, this is probably going to hurt FedEx somewhat, because you've had this existing business from Amazon that's going to fall off. Some analysts have estimated that it could lower FedEx's earnings by as many as $0.40 a share. However, when you look at the opportunity moving forward, growth rates in e-commerce away from Amazon are actually growing faster. There are some opportunities to forge some relationships today that can be really significant going forward. Any last thoughts on FedEx? Kline: To tie this up with a dating analogy, this is FedEx breaking up with his girlfriend, but it spent the last few years flirting all around. It knows that a lot of people are interested. Instead of having this monogamous relationship, FedEx is going to be dating a different supermodel every daypart. So, yeah, it'll hurt in the short term, simply because you can't build these massive relationships quickly. It takes time. But I see this as a quarter or two, and then FedEx is going to be in a much better position. And chances are, you're going to see Walmart, Target, Lowe's, Home Depot , all those other non-Amazon's, you're going to see that business ramp up very quickly. Sciple: Yeah, Dan. For me, when I look, I think e-commerce is going to be a really significant trend going forward. Everybody believes that. But you see so many players getting into the selling part of that market. When you look at the logistics part of the industry, it appears it's consolidating into an oligopoly -- FedEx, UPS, maybe Amazon is pushing in there. With the growth in all those other parts of e-commerce outside of Amazon, this looks like it could be an interesting place to sniff around for an opportunity to play a trend in a market that may be less competitive going forward. We'll see. Obviously, it's hard to say things are less competitive when Amazon is lurking around. Interesting way to play the e-commerce trend. Kline: Don't forget the U.S. Postal Service. The reality is, they're a big piece of the Amazon business. In fact, they're Amazon's biggest partner. You have Amazon-UPS-USPS on one side, FedEx on the other. It wouldn't shock me if you saw FedEx build out other services, like what Amazon is doing with last mile delivery. You're obviously going to see FedEx move into automation. We saw some tests with robots and other things. You might see drones. This is basically FedEx vs. the world, and I sort of like where that's going. Sciple: We'll be here to continue watching it as it develops, Dan. Always love having you on! We'll have you on again soon! Kline: I'll see you in the office next week! Sciple: Yes, sir! As always, people on the program may own companies discussed on the show, and The Motley Fool may have formal recommendations for or against the stocks discussed, so don't buy or sell anything based solely on what you hear. Thanks to Dan Boyd for his work behind the glass! For Dan Kline, I'm Nick Sciple. Thanks for listening and Fool on! John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Daniel B. Kline has no position in any of the stocks mentioned. Nick Sciple owns shares of Redfin and Shopify. The Motley Fool owns shares of and recommends Amazon, Delta Air Lines, FedEx, Shopify, Southwest Airlines, and Stamps.com. The Motley Fool recommends Home Depot, Lowe's, and Redfin. The Motley Fool has a disclosure policy .
Do Royal Orchid Hotels's (NSE:ROHLTD) Earnings Warrant Your Attention? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! 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 contrast to all that, I prefer to spend time on companies likeRoyal Orchid Hotels(NSE:ROHLTD), which has not only revenues, but also profits. 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. Conversely, a loss-making company is yet to prove itself with profit, and eventually the sweet milk of external capital may run sour. See our latest analysis for Royal Orchid Hotels In business, though not in life, profits are a key measure of success; and share prices tend to reflect earnings per share (EPS). So like a ray of sunshine through a gap in the clouds, improving EPS is considered a good sign. You can imagine, then, that it almost knocked my socks off when I realized that Royal Orchid Hotels grew its EPS from ₹1.23 to ₹4.83, in one short year. Even though that growth rate is unlikely to be repeated, that looks like a breakout improvement. 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). While we note Royal Orchid Hotels's EBIT margins were flat over the last year, revenue grew by a solid 7.4% to ₹2.0b. That's progress. In the chart below, you can see how the company has grown earnings, and revenue, over time. To see the actual numbers, click on the chart. Since Royal Orchid Hotels is no giant, with a market capitalization of ₹2.9b, so you shoulddefinitely check its cash and debtbeforegetting too excited about its prospects. Many consider high insider ownership to be a strong sign of alignment between the leaders of a company and the ordinary shareholders. So we're pleased to report that Royal Orchid Hotels insiders own a meaningful share of the business. In fact, they own 50% of the shares, making insiders a very influential shareholder group. I'm reassured by this kind of alignment, as it suggests the business will be run for the benefit of shareholders. With that sort of holding, insiders have about ₹1.5b riding on the stock, at current prices. That should be more than enough to keep them focussed on creating shareholder value! Royal Orchid Hotels's earnings have taken off like any random crypto-currency did, back in 2017. 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 Royal Orchid Hotels is worth putting on your watchlist; after all, shareholders do well when the market underestimates fast growing companies. Of course, just because Royal Orchid Hotels 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.
How Many The Shipping Corporation of India Limited (NSE:SCI) Shares Do Institutions Own? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! The big shareholder groups in The Shipping Corporation of India Limited (NSE:SCI) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Companies that have been privatized tend to have low insider ownership. Shipping of India is a smaller company with a market capitalization of ₹13b, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about SCI. Check out our latest analysis for Shipping of India Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. We can see that Shipping of India does have institutional investors; and they hold 18% of the stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Shipping of India's earnings history, below. Of course, the future is what really matters. Shipping of India is not owned by hedge funds. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar. The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Our data suggests that insiders own under 1% of The Shipping Corporation of India Limited in their own names. It appears that the board holds about ₹41m worth of stock. This compares to a market capitalization of ₹13b. I generally like to see a board more invested. However it might be worth checkingif those insiders have been buying. The general public, with a 18% stake in the company, will not easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. 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 course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
What Kind Of Shareholder Appears On The The Shipping Corporation of India Limited's (NSE:SCI) Shareholder Register? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! If you want to know who really controls The Shipping Corporation of India Limited (NSE:SCI), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that have been privatized tend to have low insider ownership. Shipping of India is a smaller company with a market capitalization of ₹13b, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about SCI. View our latest analysis for Shipping of India Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. Shipping of India already has institutions on the share registry. Indeed, they own 18% of the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Shipping of India's earnings history, below. Of course, the future is what really matters. We note that hedge funds don't have a meaningful investment in Shipping of India. 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 data suggests that insiders own under 1% of The Shipping Corporation of India Limited in their own names. It seems the board members have no more than ₹41m worth of shares in the ₹13b company. Many investors in smaller companies prefer to see the board more heavily invested. You canclick here to see if those insiders have been buying or selling. The general public, with a 18% stake in the company, will not easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. While it is well worth considering the different groups that own a company, there are other factors that are even more important. I always like to check for ahistory of revenue growth. You can too, by accessing this free chart ofhistoric revenue and earnings in thisdetailed graph. Of coursethis may not be the best stock to buy. Therefore, you may wish to see ourfreecollection of interesting prospects boasting favorable financials. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Is Texmaco Rail & Engineering Limited's (NSE:TEXRAIL) ROE Of 6.6% Concerning? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). We'll use ROE to examine Texmaco Rail & Engineering Limited (NSE:TEXRAIL), by way of a worked example. Over the last twelve monthsTexmaco Rail & Engineering has recorded a ROE of 6.6%. Another way to think of that is that for every ₹1 worth of equity in the company, it was able to earn ₹0.066. View our latest analysis for Texmaco Rail & Engineering Theformula for return on equityis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Texmaco Rail & Engineering: 6.6% = ₹754m ÷ ₹11b (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is all the money paid into the company from shareholders, plus any earnings retained. 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 amount earned after tax over the last twelve months. A higher profit will lead to a higher ROE. 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. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. As shown in the graphic below, Texmaco Rail & Engineering has a lower ROE than the average (11%) in the Machinery industry classification. That's not what we like to see. It is better when the ROE is above industry average, but a low one doesn't necessarily mean the business is overpriced. Nonetheless, it could be useful todouble-check if insiders have sold shares recently. Virtually all companies need money to invest in the business, to grow profits. That cash can come from issuing shares, retained earnings, or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the 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. Although Texmaco Rail & Engineering does use debt, its debt to equity ratio of 0.50 is still low. Its ROE is certainly on the low side, and since it already uses debt, we're not too excited about the company. 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. In my book the highest quality companies have high return on equity, despite low debt. All else being equal, a higher ROE is better. But when a business is high quality, the market often bids it up to a price that reflects this. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to check this FREEvisualization of analyst forecasts for the company. Of courseTexmaco Rail & Engineering 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.
With A 6.6% Return On Equity, Is Texmaco Rail & Engineering Limited (NSE:TEXRAIL) A Quality Stock? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). We'll use ROE to examine Texmaco Rail & Engineering Limited (NSE:TEXRAIL), by way of a worked example. Texmaco Rail & Engineering has a ROE of 6.6%, based on the last twelve months. Another way to think of that is that for every ₹1 worth of equity in the company, it was able to earn ₹0.066. View our latest analysis for Texmaco Rail & Engineering Theformula for return on equityis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Texmaco Rail & Engineering: 6.6% = ₹754m ÷ ₹11b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. It is all the money paid into the company from shareholders, plus any earnings retained. Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company. 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 equal,investors should like a high ROE. That means ROE can be used to compare two businesses. Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. As shown in the graphic below, Texmaco Rail & Engineering has a lower ROE than the average (11%) in the Machinery industry classification. That certainly isn't ideal. We'd prefer see an ROE above the industry average, but it might not matter if the company is undervalued. Still,shareholders might want to check if insiders have been selling. Virtually all companies need money to invest in the business, to grow 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 use of debt will improve the returns, but will not change the equity. That will make the ROE look better than if no debt was used. Texmaco Rail & Engineering has a debt to equity ratio of 0.50, which is far from excessive. Its ROE is quite low, and the company already has some debt, so surely shareholders are hoping for an improvement. Careful use of debt to boost returns is often very good for shareholders. However, it could reduce the company's ability to take advantage of future opportunities. Return on equity is one way we can compare the business quality of different companies. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE. But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So I think it may be worth checking thisfreereport on analyst forecasts for the company. If you would prefer 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. 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 – 23/06/19 Bitcoin Cash ABC surged by 9.93% on Saturday. Following on from a 5.13% rally on Friday, Bitcoin Cash ABC ended the day at $480. A choppy start to the day saw Bitcoin Cash ABC rise from a morning low $436.65 to an early afternoon high $465.0. Bitcoin Cash ABC broke through the first major resistance level at $448.64 and second major resistance level at $460.68. An early afternoon slide to an intraday low $431.61 saw Bitcoin Cash ABC steer clear of the first major support level at $431.61 before rallying to an intraday high and new swing hi $515.70. The rally saw Bitcoin Cash ABC break through the major resistance levels before easing back through the third major resistance level at $489.40. At the time of writing, Bitcoin Cash ABC was up by 0.99% to $484.74. A bullish start to the day saw Bitcoin Cash ABC rise from a morning low $475.05 to a morning high $498.0 before easing back. Bitcoin Cash ABC left the major support and resistance levels untested early on. For the day ahead, a move back through the morning high $498 would support a run at the first major resistance level at $519.93. A broad-based crypto rally would bring $520 levels into play. Bitcoin Cash ABC would need support from the broader market, however, to break out from $500 levels. Failure to move back through the morning high could see Bitcoin Cash ABC hit reverse. A fall through the morning low to $468 levels would bring $450 levels into play before any recovery. Barring a broad-based crypto sell-off, Bitcoin Cash ABC should steer clear of the first major support level at $443.02. Litecoin gained 1.6% on Saturday. Following on from a 2.36% rise from Friday, Litecoin ended the day at $141.46. A relatively choppy day saw Litecoin rise to an early morning high $143.55 before sliding back to sub-$140 levels. The early moves saw Litecoin break through the first major resistance level at $141.93. An early afternoon rally saw Litecoin strike an intraday high and new swing hi $146.0 before sliding to an intraday low $137.35. Litecoin broke through the first major resistance level at $141.93 and second major resistance level at $144.82, while steering clear of the major support levels. At the time of writing, Litecoin was down by 0.13% to $141.27. Litecoin rose to a morning high $142.2 before falling back to a low $140.27. The relatively range-bound start to the day saw Litecoin steer clear of the major support and resistance levels. For the day ahead, a hold onto $141 levels would support another run at the first major resistance level at $145.79. Litecoin would need support from the broader market to take a run at the second major resistance level at $150.11. Failure to hold onto $141 levels could see Litecoin fall through to $138 levels before any recovery. Barring a broad-based crypto sell-off, Litecoin would likely leave the first major resistance level at $137.35 untested. Ripple’s XRP rallied by 7.15% on Saturday. Following on from a 3.28% rise on Friday, Ripple’s XRP ended the day at $0.4780. A bullish morning saw Ripple’s XRP rally from an intraday low $0.44322 to an early afternoon intraday high $0.51. Ripple’s XRP broke through the major resistance levels before easing back to $0.46 levels. Finding support late in the day, Ripple’s XRP managed to hold above the second major resistance level at $0.4628 At the time of writing, Ripple’s XRP was up by 0.67% to $0.48120. A relatively range-bound start to the day saw Ripple’s XRP rise to a morning high $0.49328 before easing to a low $048259. Ripple’s XRP left the support and resistance levels untested early on. For the day ahead, a move back through to $0.49 levels would support a run at the first major resistance level at $0.5109. Ripple’s XRP would need support from the broader market, however, to break through to $0.50 levels. Barring a broad-based crypto rally, Saturday’s high $0.5100 and the first major resistance level at $0.5109 would likely limit any upside on the day. Failure to move back through to $0.49 levels could see Ripple’s XRP slide through to $0.45 levels before any recovery. Barring a broad-based crypto sell-off, Ripple’s XRP would likely steer clear of the first major support level at $0.4441. Please let us know what you think in the comments below Thanks, Bob Thisarticlewas originally posted on FX Empire • E-mini S&P 500 Index (ES) Futures Technical Analysis – June 24, 2019 Forecast • Natural Gas Price Forecast – Natural Gas markets rally to kick off week • E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – June 24, 2019 Forecast • Is Soybean Ready for Significant Gains? Coffee Gives Signals of Life • EUR/USD Price Forecast – Euro continues to grind higher • Forex Daily Recap – Fiber Gained, Shrugging over Dovish ECB Stances
Brexit three years on: UK firms still paralysed by uncertainty Leave and remain protesters outside the Houses of Parliament, London, ahead of the latest round of debates in the House of Commons concerning Brexit issues. British firms are still suffering from politicians failure to resolve the Brexit crisis three years to the day since the EU referendum, a leading business group has warned. Allie Renison, head of EU & trade policy at the Institute of Directors (IoD), told Yahoo Finance UK both the Brexit process and its endpoint remained mired in uncertainty. She called for Tory leadership rivals Boris Johnson and Jeremy Hunt to take responsibility for preparing firms to cope if they lead Britain out of the EU without a deal. The IoD is calling for government-funded vouchers to cover the costs of Brexit contingeny planning, amid widespread evidence many firms are under-prepared. READ MORE: NHS could face critical shortages of medicines under no-deal Brexit Experts have warned a no-deal Brexit could be catastrophic for the UK economy, causing widespread disruption, delays and even shortages. Sunday marks three years to the day since Britain went to the polls in the EU referendum on a rainy day on 23 June, 2016. The UK voted to leave the EU by a 52:48 margin as the campaign led by Nigel Farage, Boris Johnson and others won the day, in a seismic decision with far-reaching consequences for decades to come. Nigel Farage on 23 June 2016. REUTERS/Dylan Martinez TPX IMAGES OF THE DAY The past three years has seen Britain plunged into what has been called the biggest political, economic and constitutional crisis since the second world war. Renison said: Three years on from the referendum, both the Brexit process and its endpoint remain mired in uncertainty. Firms have had one hand tied behind their backs trying to plan in advance, and the IoD has repeatedly called for financial assistance to help them access the specialist help they need to properly prepare. Despite this being provided in other EU countries, the Government has made little such offering. Given their willingness to countenance no-deal, we would strongly urge both leadership candidates to consider introducing a Brexit planning voucher system. Even if no deal were averted, such a scheme would still be highly beneficial throughout the transition period, helping firms get to grips with the challenge of trading with the EU under a new set of circumstances. Story continues READ MORE: Most exporting firms still lack right paperwork for no-deal Brexit Any candidate who is poised to take over the UK's premiership on the basis of being fine with no-deal on Oct 31st should it come to that better be prepared to own the detail when it comes to managing impact/fall-out afterwards. Cannot just be entrusted to lower-down's to sort out Allie Renison (@AllieRenison) June 21, 2019 The IoDs interim director also sounded the alarm over new figures showing just 40% of firms that export to the EU had completed the necessary paperwork from government. Around 150,000 firms could be left unable to keep trading with European partners on Brexit day if they fail to register before Britains departure. Boris Johnson and Jeremy Hunt, the two remaining candidates in the Tory leadership race, have both talked up their willingness to lead Britain out of the EU without an agreement if necessary. READ MORE: EU says next UK leader cant re-open Brexit withdrawal talks The IoD urged firms to step up planning for a no-deal Brexit earleir this week, saying they could no longer trust politicians to solve the crisis. A recent survey of almost 1,000 members of the IoD showed fewer than one in four had activated their Brexit contingency plans in April. More than half had not engaged in any contingency preparations at all. Almost one in three firms said they were still waiting for the shape of Britains future relationship with the EU to become clear before drawing up contingency plans. READ MORE: Bank of England governor slams Boris Johnsons Brexit plans
Istanbul voters turn out for mayoral election rerun as Erdogan bids to reverse defeat in Turkey's largest city Ekrem Imamoglu of the opposition CHP hopes to win again after being forced out just 18 days into his term as mayor - AP Voters in Istanbul return to the polls for the second time in three months on Sunday after the ruling party forced a redo of the mayoral election, hoping to reverse a stinging defeat and recapture Turkeys largest city. The constant campaigning has exhausted some voters, especially those who back the opposition and are unconvinced Recep Tayyip Erdogan, Turkeys formidable president, will concede should his party lose again. Im tired of endless elections, and Im afraid we will keep having them until the governing party wins, said Dilber, 33, a security guard who declined to give her surname. It is difficult to defend my faith in the ballot box. Nearly one out of 10 Istanbul voters said they were undecided or didnt plan to show up, according to pollsters at Konda Research this week. Sundays election is the eighth vote in five years. Though his name isnt on the ballot, Mr Erdogan has injected himself into the race to help his partys trailing candidate, accusing the oppositions Ekrem Imamoglu this week of treachery and suggesting he could block his path if he wins again. Mr Erdogan held the powerful job of Istanbul mayor himself before becoming prime minister in 2003 and president in 2014. He is Turkeys most popular politician but his critics blame him for an erosion of democracy by jailing tens of thousands of his enemies, silencing a once-garrulous press and exerting control over the judiciary and other institutions. As for Mr Imamoglu, 49, few were familiar with the former mayor of an outlying suburb for the secular Republican Peoples Party (CHP) before his upset victory on March 31. He beat the conservative Justice and Development Partys (AKP) Binali Yildirim, 63, by fewer than 14,000 votes in a city with 10 million voters. The loss of Istanbul would be a major blow for Mr Erdogan at a time when he faces a number of challenges to his rule Credit: Anadolu Agency This time, most opinion polls show Mr Imamoglu ahead by about two percentage points, and he credits the rise to a sense of grievance over his ouster after just 18 days in office, when electoral officials decided that irregular appointment of some polling station officials may have skewed the result. Story continues Mr Imamoglu has energised the CHP, banished from power since the 1970s, and attracted non-traditional voters hurt by an economic downturn. He has also appealed to many with a promise to bridge the countrys divides after the tumult of recent years, including renewed violence with Kurdish militants, a failed military coup against Mr Erdogan in 2016 and the crackdown that is still ongoing - 151 people including senior military officers were given life sentences over the uprising this week. The main Kurdish party is campaigning for Mr Imamoglu, and its former chairman, Selahattin Demirtas, this week urged his estimated 1 million supporters to back the CHP candidate in a tweet from his prison cell, where he has been held since 2016 on terror charges stemming from his political speeches. Pro-government media then released a statement from another jailed Kurdish leader, Abdullah Ocalan, in which he purportedly said his party should remain neutral. Mr Ocalan, whom many Kurds regard as a hero but most Turks brand a terrorist, is 20 years into a life sentence for leading an armed insurgency against the state. Mr Erdogans intervention in the race comes at a time when he must steady the economy and confront foreign policy challenges, including a looming showdown with the United States over the purchase of Russian arms that Washington says will jeopardise NATO security. But his focus on a municipal election instead reveals how critical Istanbul, accounting for a third of Turkeys economy, is to his political movement, which has controlled the city - and its lucrative contracts - for a quarter century. Mr Imamoglu has appealed to non-traditional voters with his promises to tackle corruption and heal divisions after years of tumult Credit: Getty Images/Chris McGrath During his brief stint at city hall, Mr Imamoglu said he discovered the AKP-run municipality had squandered public money on cars, consultants and charities run by members of Mr Erdogans inner circle, striking a nerve among voters grappling with 20 percent inflation and unemployment of 14 percent. Our country, our city and our peoples time are being wasted because a handful of people have disregarded democracy. I believe this injustice and the profligacy that has deprived 16 million [residents] of service will come to end with the election, Mr Imamoglu told reporters this month. For his part, Mr Erdogan points to a tripling in the size of the Turkish economy - despite the current recession - that has improved millions of lives under his rule. In recent days, he has said Mr Imamoglu sided with an outlawed Muslim sect blamed for the abortive coup and may face prosecution for allegedly insulting a provincial official. I wont cede Istanbul to liars like this, Mr Erdogan said. Though Mr Erdogan remains firmly in control of the central government and doesnt face re-election until 2023, losing Turkeys commercial and cultural centre would dim the presidents aura of invincibility. But observers said that blocking Mr Imamoglu, should he now win by a wide margin, would undermine the AKPs own electoral mandate. The AK Partys legitimacy derives from the ballot box, [making it difficult] to simply argue that Imamoglu cant have the post, said Emre Erdogan, a political scientist at Istanbuls Bilgi University. Denying him the office if he is the clear winner would mean the AKP has crossed a line. And it may not crush the challenge that Mr Imamoglu has come to represent, his supporters said. If they cancel this election, Imamoglu will only come back stronger, said Mehmetcan Cicek, a 21-year-old street vendor. The spark has been lit, and even Erdogan cant extinguish it.
'Death by a thousand cuts': Trump raid delay prolongs migrants' agony Photograph: Charles Reed/AFP/Getty Images On Saturday, communities around California braced for mass raids on migrant families that have received deportation orders, an operation Donald Trump announced earlier in the week. Related: Trump announces delay in planned Ice raids on migrant families On Friday, the Washington Post reported that raids on Sunday would target up to 2,000 families in as many as 10 cities. Among the cities reportedly to be targeted Los Angeles and San Francisco. Activists sprang into action, making sure families knew their rights and understood that they did not have to open the door to officers from US Immigration and Customs Enforcement, or Ice. Families kept children close, sought other places to stay and prayed for the best. Local officials, especially in sanctuary cities that have vowed never to assist immigration officials, condemned the planned raids and voiced their support for migrant communities. “It is unconscionable that the federal administration is targeting innocent immigrant families with secret raids that are designed to inflict as much fear and pain as possible,” San Francisco mayor London Breed said in a statement. In his own statement, Los Angeles mayor Eric Garcetti said: “No Angeleno should ever have to fear being snatched from their home or separated from their loved ones – we are doing everything we can to provide immigrant families with info and support ahead of the announced Ice deportation sweeps.” San Jose mayor Sam Liccardo said that his city rejected “this administration’s politics of fear and exclusion, which is tearing our families apart. It’s important for all members of our San Jose community – regardless of immigration status – to know they have rights and that our San Jose police department will not participate in any Ice investigation or enforcement activity.” And then, with just a tweet, Trump announced the raids would be delayed for two weeks. At the request of Democrats, I have delayed the Illegal Immigration Removal Process (Deportation) for two weeks to see if the Democrats and Republicans can get together and work out a solution to the Asylum and Loophole problems at the Southern Border. If not, Deportations start! — Donald J. Trump (@realDonaldTrump) June 22, 2019 Activists and community leaders said that put them back in an all too familiar position. Story continues “He’s done this before,” Father Richard Smith, a San Francisco clergy leader and immigration activist, told the Guardian. “Part of his strategy clearly is to incite fear among a vulnerable community that is already in fear. It’s death by a thousand cuts.” Smith is part of an action network that supports migrant families, including by getting witnesses to areas where Ice agents have been spotted to provide support to anyone being detained and to intervene when possible. The past few years have been particularly hard on young children in immigrant families, Smith said. He recalled a situation in which a four-year-old girl was walking down the street with her mother and spotted a San Francisco police officer. The child started to scream: “Mami, run!” “That’s exactly the sort of fear and trauma that Trump likes to stir up,” Smith said. “All we can do is keep our eyes and hearts open and respond as best we can at the time. It’s hard to predict because he keeps changing it.”

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